[peanut gallery]

This continues to progress. As foretold last Fall, the Navy has transferred ownership to the city. From the SF Business Times:

The slow transformation of Treasure Island from a Navy base to San Francisco’s largest housing project turned a tricky corner on Friday when 290 acres traded hands from the U.S. Navy to the city.

The exchange allows for developers Lennar Urban and Wilson Meany to start building infrastructure and streets by next year and construction on the first phase of 500 housing units around Clipper Cove by 2017. Treasure Island and adjoining Yerba Buena Island will eventually have 8,000 housing units (one-quarter to be priced as affordable), retail and 300 acres of parkland.
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The Navy base closed in 1997, and the island now has about 2,000 residents and 160 commercial tenants. Land will continue to transfer from the Navy over the next seven years. The Navy will get $55 million over the next 10 years from the city and Treasure Island Community Development.

If all goes right for Lennar and Wilson Meany, over the next couple of decades (even during economic downturns, they say) the former base will be transformed. The development includes plans for houses, a hotel, shared streets and walkways, a market hall and a new ferry building. The developers must get each subphase of development approved before moving forward.