March 02, 2000

 By Chauncey Bailey
 STAFF WRITER

 OAKLAND -- A San Francisco-based specialty baker may build its new facility in East Oakland,
 and a city official expects a signed deal by the end of the week.

 "There are no signed documents ... but that's our intent," Elliot Hoffman, CEO of Just Desserts, said
 Wednesday. "It's premature (to discuss an agreement)."

 He declined further comment.

 But City Councilmember Larry Reid (East Oakland-Elmhurst) confirmed the company is interested
 in a 70,000-square-foot parcel at Edes and 85th avenues. City officials are offering Just Desserts
 tax breaks because the property is in an urban enterprise zone -- set aside to encourage employers
 to bring jobs to economically disadvantaged com-munities.

 Reid said he expects a deal by Friday.

 "There are several points still being discussed but this doesn't appear to be a deal breaker," said
 Reid. "I'm excited. We're talking about maybe 125 new jobs to East Oakland and they have said
 they want to hire local people."

 If a deal is reached and goes to escrow, work could begin as early as April and construction could
 be complete in October. The move-in would be in November, Reid said.

 Hoffman has met with Mayor Jerry Brown and city development officials about the site, Reid said.

 The land is owned by Catellus Development Group, which has built or is constructing a number of
 projects at its Enterprise Airport Center site, including the Federal Express plant and a U.S. Postal
 facility. The proposed Just Desserts site is located along 85th Avenue behind the postal center site.

 Company and city development officials were unwilling to discuss details of any pending move from
 the company's San Francisco Bayview Hunters Point location, where a 31,000-square-foot baking
 facility would shut down.

 The East Oakland move would come in the wake of a decision by the local potato chip and snack
 maker Granny Goose to shift manufacturing jobs to Utah.

 Last year, Just Desserts company executives said they were looking at three sites in Alameda
 County but declined to list all of them. One option was the Kellogg's plant in San Leandro, but there
 were too many negatives there, officials said.

 Hoffman said last year "we are basically inviting our entire work force to join us, and hopefully the
 majority will. (Otherwise) we will hire from the local community."

 The company had a 200-person payroll with $16 million in revenues last year and projects that will
 reach $30 million in 2001.

 Hoffman said East Bay land is much more affordable than land in San Francisco. Oakland
 development officials have been pitching the site to developers -- noting the city's image is
 improving, crime is down, public transit systems are excellent, and there's a trained workforce.

 Just Desserts closed its Tassajara bread manufacturing division, trimming $1.5 million from company
 sales.

 However, the company still experienced a jump in wholesale business from $11.5 million to $16
 million, Hoffman said.

 The company has ties with Webvan, Starbucks, Costco and Andronico's to boost wholesale
 operations, and Just Desserts products are already in more than 600 Bay Area stores. 

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