Fiona Varley, 47, bought a new 2,600-square-foot home in 2006. “Why did I move out here? I’d seen something on the TV about it and I thought, ‘That looks interesting,’”she said. “Both my parents were in the Navy, so coming on to an ex-naval base was very comforting. . . .. This is, in the long term, a very good investment, but like everybody, in the short term we’re all having a heart attack.”

Lennar saw the glass as half full. “We have now more than 230 homeowners on the island after years of nobody living on the island,” spokesman Jason Keadjian said in May. Work has continued on other aspects of the reuse plan: cleanup, demolition, and infrastructure improvements. On June 8, Lennar Mare Island LLC declared bankruptcy.

Converting a military base to new civilian uses is a contentious and time-consuming process, and Mare Island is no exception. The City’s original master plan has been revised several times in response to comments from citizens, residents, the developer, and various groups and organizations. Most recently it was amended to protect certain buildings after historic preservation organizations threatened to sue the City and Lennar to keep them from being demolished.

Certainly part of the problem is that Mare Island is not easily accessible. There are two ways to get here: either by taking Highway 80 and then Route 29, or via Highway 37 from Marin County, across miles of wetlands at the top of San Pablo Bay.

Off 37 there’s a sneaky little exit--easy to miss, even if you’re paying attention--that takes you to the northern gate of the shipyard. From here you enter a wasteland of railroad tracks and industrial buildings that look like they haven’t been used in decades. Signs of the $120-million cleanup are everywhere. Tarp-covered mounds of contaminated dirt loom along the main roads--not exactly an invitation to move in. Ditches with contaminated water are cordoned off by orange tape, and the former hazardous waste landfill is covered with black plastic and surrounded by a deep moat and tracts of dirt.

Many of the most important historic buildings stand within an area that has been designated the “Historic Core.” It includes Captains’ Row; the oldest Navy arsenal; Drydock Number 1, beautifully sculpted of granite from the Sierra foothills; and St. Peter’s Chapel, built in 1901, with 29 stained glass windows designed by Louis Comfort Tiffany, 16 of them signed. Following the destruction of the chapel at Annapolis by fire, this is now the oldest naval chapel in the nation. These buildings pose a challenge, as there are stringent rules for converting them to other uses.

At the southern tip of the island is a beautiful hilltop slated to become a 215-acre regional park. It is to include a 150-year-old cemetery--the oldest naval cemetery on the West Coast--and offers sweeping views that take in Mt. Diablo, Mt. Tamalpais, and the Carquinez Bridge. A vast expanse of green and brown wetlands stretches out west and north. Currently, these proposed parklands are only open by guided tour and for special events; the Navy has not yet assured the City that it’s free of unexploded munitions.