Oakland Ghost Ship warehouse torn down, nonprofit wants to build affordable housing

The Oakland Ghost Ship warehouse where 36 people tragically died in a fire was recently demolished and purchased by a community development nonprofit with plans to build affordable housing.

The Unity Council, based in the Fruitvale District bought the Ghost Ship lot, an adjoining lot and commercial building next door earlier this month for more than $2.5 million, as first reported by the East Bay Times.

"It was a decision we didn’t take lightly," CEO Chris Iglesias told KTVU Tuesday. "We thought long and hard about it. We will be able to give that site the care and attention that it needs and really deserves."

Iglesias said the plan is to develop it into 40 to 85 affordable housing units.

For years, the burned-out property has sat since the December 2016 fire during an electronic music party that killed 36 people and led to lawsuits, a criminal conviction and the former owners filing for bankruptcy.

Without warning, the warehouse was torn down just weeks ago. Only a large concrete slab remains surrounded by a new black iron fence.

"I’m glad it’s gone. I think it took too long," said Colleen Dolan whose daughter died in the fire. "I wish I could have watched it come down and just said, ‘good riddance.’"

The property was finally sold by the former owners in order to help pay a settlement following a lawsuit filed by the fire victims’ families.

Attorney Mary Alexander represented the families in that lawsuit and said most of them are supportive knowing the site could one day become a safe space.

"It’s really a fantastic use of the property for low income, affordable housing," she said. "It’s what the community should be doing to protect young people."

The families have long debated what should happen to the warehouse property from a park, to a music hall, or nothing at all.

But they do mostly agree some kind of permanent memorial or tribute should be part of the redevelopment.

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DUBLIN, Calif. -- Derick Almena gets it. He gets why he’s behind bars at Santa Rita Jail, effectively in solitary confinement, on 36 charges of involuntary manslaughter, one count for each of the lives lost in the Ghost Ship fire nearly one year ago. And he gets why people are mad at him, for the mess inside the warehouse and for making initial blunders on social media after...

"We want to have their names recognized not just as the 36 victims of the Ghost Ship fire, but each one of them deserves recognition," Dolan said. "Now and forever."

The Unity Council has reached out to the families to listen to their suggestions and ideas.

Oakland Councilmember Noel Gallo, who represents the Fruitvale District said the Ghost Ship has long stood as a painful reminder of the tragedy in the community.

He supports building housing on the site, calling it a priority amid a growing citywide homelessness crisis.

"You’ve got schools across the street, business down the street transportation all around here," Gallo said. "It’s the right thing to do for the neighborhood."

Iglesias said once building plans are approved, construction could begin as soon as 2025.

"It has weighed heavily on the community and I think that this is an opportunity to continue to heal," he said. "But make something very, very positive for the community out of that."

Brooks Jarosz is a reporter for KTVU. Email him at  brooks.jarosz@fox.com and follow him on Facebook and Twitter @BrooksKTVU.