07. Economic + Neighborhood Development
|HOPE SF – Potrero Terrace and Annex||The Potrero Terrace and Annex project is a phased, master-planned new construction development consisting of the demolition of the existing 619 public housing units on the property and the construction of up to 1,700 new units, including one-for-one replacement of the existing public housing units, additional affordable rental units, and market-rate rental and for-sale units. The project will also feature up to 15,000 square feet of neighborhood-serving retail space, approximately 30,000 square feet of community space, approximately 3.5 acres of new open spaces, and a reconfigured street network. The multi-phase redevelopment plan will be completed over the next 10-12 years.
The Phase II infrastructure scope consists of rough grading, major utility extensions, and installation of new public streets and sidewalks. The new housing parcels are planned as one affordable housing building with approximately 115 units and one market rate building with up to 160 units. Existing streets segments of Wisconsin Street, 25th Street, and 26th Street will be reconstructed and regraded; a new segment of Arkansas Street will feature head-in parking on the eastern side and parallel parking spaces on the west, and streetscape will be designed with new sidewalks, curb ramps, and bulb-outs.
|HOPE SF – Sunnydale and Velasco||The Sunnydale and Velasco project is a phased, master-planned new construction development that will demolish the existing 775 public housing units on the property and the construction of up to 1,700 new units, including one-for-one replacement of the existing public housing units, affordable rental units, and market-rate and affordable for-sale units. The project will also provide up to 16,200 square feet of retail space, up to 46,300 square feet of community service, and educational facilities. Approximately 11 acres of new parks and recreation spaces and approximately 12 acres of a new and reconfigured street network will be built as part of the project. The multi-phase redevelopment plan will be completed over the next 12-15 years.
Infrastructure improvements include construction of three new streets, relocation of existing electrical power poles and overhead lines, new underground utilities including a combined sewer system and new electrical switchgear, lighting and bio-retention curb bulb extensions, a new pedestrian mews, and demolition and abatement of 120 existing units in 16 buildings.
|OCII Mission Bay – Parks and Open Space||The construction of 10 additional parks in Mission Bay is anticipated over the next eight years, of which five are planned for delivery over the next four years. Parks planned to be finished by FY2024 include the remaining segments of the Mission Creek park loop, a major bayfront park, a small pocket park fronting the Bay, and a small segment of Mariposa parks.
The cost of OCII Mission Bay Parks and Open Space is approximately $73 million through FY2031.
|OCII Mission Bay – Streetscape and Underground Utilities||Additional roadways, underground utilities and pedestrian and bicycle improvements are needed to serve the new residential neighborhood and research district in the southern portion of Mission Bay. The majority of these improvements will be constructed over the next three years.
The cost of OCII Mission Bay Streetscape and Underground Utilities is approximately $10 million through FY2031.
|OCII Mission Bay – Storm Water Treatment||The remaining required storm water treatment improvements in Mission Bay are all located south of Mission Creek. This southern portion of Mission Bay will have a storm water treatment system separate from the combined sewer/storm water system found in the rest of the city to avoid additional burdens on the Southeast Treatment Facility. Construction of a final storm water pump station is expected within the next three years.
The cost of OCII Mission Bay Storm Water Treatment is approximately $17 million through FY2031.
|OCII Transbay – New Parks||Two new Transbay parks are in development, one under the bus ramp and off-ramp from I-80, and one on the middle one-third of the existing Temporary Bus Terminal, referred to as the Block 3 park. The “under-ramp park” (URP) will include plazas, walking and bicycle paths, landscaping, sport courts, concessions, and a large dog park. The Block 3 will include landscaping, play areas. and gathering spaces. The URP will be on property owned by Caltrans and the TJPA, while Block 3 will be a Recreation and Parks Department owned park. Construction of both is estimated to begin around 2023, with completion of the improvements expected within a two-year timeframe.
Current estimates of park design and construction costs are up to $68 million with sources likely to include tax increment bonds and downtown parks fees.
|OCII Shipyard/Candlestick – New Parks and Open Space||The development will build out several new parks which include: Hillpoint Park, Hilltop Pocket Parks, Coleman Promenade and Galvez Overlook, and some portion of the Hillside Open Spaces.|
|OCII Shipyard/Candlestick – Streetscape Projects||The Shipyard/Candlestick Point Project will enhance the walkability of several streets, providing new amenities to pedestrians in the area by delivering streetscape projects on Gilman Street and Harney Way.|
|OCII Shipyard/Candlestick – Transportation Improvements||The Shipyard/Candlestick Point project includes an extensive program of on-site and off-site transportation improvements to facilitate automobile, transit, bicycle, and pedestrian mobility in and around the project area.|
|Port – National Park Service Alcatraz Embarkation Site||In June 2018, the Port Commission approved the new Alcatraz Ferry Embarkation Project located at Piers 31-33 on The Embarcadero at Bay Street. The Alcatraz Project will activate the Pier 31 bulkhead with a plaza, café, and improved public restrooms, and transform the Pier 33 bulkhead into a visitor-contact station. Improvements to the site will be made through leases with the new ferry concessioner, Alcatraz Cruises, LLC (selected by the National Park Service through its competitive-bid process) and the Golden Gate National Parks Conservancy. The Alcatraz Embarkation Project improvements are projected to be complete by 2025. In August 2019, the Port completed a $7.5 million repair to the facility’s substructure to prepare the site for the new tenants.
The Port anticipates that the project will ultimately result in $41.2 million of investment in Piers 31-33.
|Port – Pier 70 Waterfront Site||Brookfield is the Port’s development partner for the Waterfront Site at Pier 70. Project construction started in 2018, with full build-out estimated in 10-15 years. The project includes nine acres of waterfront parks, playgrounds and recreation opportunities; new housing units (including 30% below market-rate homes); restoration and reuse of currently deteriorating historic structures; new and renovated space for arts, cultural, small-scale manufacturing, local retail, and neighborhood services; up to 2 million square feet of new commercial and office space; and parking facilities and other transportation infrastructure.
The capital cost estimate for this public-private partnership project is $340 million. A combination of land contributions, tax increment from an Infrastructure Financing District, and special taxes from a Community Facilities District will reimburse the developer for infrastructure costs.
|Port – Seawall Lots 323 and 324||In 2015, the Port Commission approved an exclusive negotiation agreement with Teatro ZinZanni and its financial partner, operating together as TZK Broadway, LLC, for the lease and development of Seawall Lots 323 and 324. The proposed development will include: a single, four-story building with a 180-200 room hotel, restaurant/bar, an approximate 280-seat theater featuring Teatro’s historic “Spiegeltent”, and an approximate 14,000-square-foot privately-financed public park.. The project is anticipated to be constructed and operational by 2024.
The Port estimates the project will cost $140 million to be constructed with private funds.
|Port – Mission Rock (Seawall Lot 337 and Pier 48)||Led by Seawall Lot 337 Associates, LLC (an affiliate of the San Francisco Giants), this project is a flexible development that balances residential, office, retail, exhibition, and parking uses. The Port anticipates that the leases from this development will generate new revenues to support ongoing operations for the Port.
The development requires construction of entirely new horizontal infrastructure including streets, sidewalks, and utilities. The cost of these infrastructure enhancements will be initially paid for by the developer and repaid by the Port from revenues generated by an Infrastructure Finance District to be established for this project. The development is expected to begin construction in 2020.
The developer will construct $244 million in horizontal infrastructure enhancements including streets, sidewalks, and utilities through 2029. A combination of Port land contributions, tax increment from an Infrastructure Financing District, and special taxes from a Community Facilities District will reimburse the Developer for infrastructure costs.
|Port Seawall Lot 322-1 Development for Affordable Housing||In 2014, the Port Commission approved a memorandum of understanding between the Port and the Mayor’s Office of Housing and Community Development (MOHCD) regarding a joint effort to pursue the feasibility of improving Seawall Lot 322-1 with an affordable housing development. MOHCD selected Bridge Housing and the John Stewart Company as its private partners to develop the site with 125 family housing rental units, a childcare center, and restaurant space at a projected cost of $100 million. The project commenced construction in June 2019 and is scheduled to complete construction in Spring 2021.|
|TIDA – Bridge Access Improvements||The redevelopment of Treasure Island and Yerba Buena Island required improved access to the island from the I-80 Bay Bridge and to seismically retrofit or replace the viaduct structures on the west side of Yerba Buena Island. Under the Disposition and Development Agreement (DDA), Infrastructure Plan, and related agreements, these improvements are City obligations and the San Francisco County Transportation Authority (SFCTA) was to deliver these projects leveraging initial funding commitments from the Federal Highway Bridge Program and State of California Proposition 1B proceeds.
The first of these projects, the new westbound on- and off-ramps was completed in October 2016. The second project, an interchange between eastbound on- and off-ramps and access roads on Yerba Buena Island began construction in June 2020. The third project to replace the seismically deficient viaduct structures (Westside Bridges Project) is expected to commence in Spring 2021.
|TIDA – Horizontal Infrastructure||As a manmade island, significant work is required to improve the soil conditions on Treasure Island prior to development. Additional soil import is necessary to prepare for anticipated sea level rise. Roadways and utility infrastructure throughout Treasure Island and Yerba Buena Island will need to be replaced to meet City standards and serve the new development. These improvements are, with limited exceptions, the responsibility of Treasure Island Community Development (TICD).|
|TIDA – Public Open Spaces||The project includes more than 290 acres of new public open spaces including parks, public access trails, shoreline and other waterfront improvements to enhance public use and enjoyment of the San Francisco Bay. The initial development of these facilities is a developer responsibility, but the ownership of these facilities and their future operation, renewal, and improvement will be the responsibility of TIDA. The Community Facilities District formed over the islands in 2017 will provide a stable stream of revenues to support parks operations.|
|TIDA – Transportation Improvements||Public transportation improvements will include a new ferry terminal, acquisition or leasing of new ferry boats, the acquisition of new buses for AC Transit and MUNI, and the cost to purchase or lease shuttle buses for the new on-island free shuttle service. The DDA and Transportation Plan detail the City and developer responsibilities for these improvements and acquisitions. In addition to the developer’s obligation towards these improvements and acquisitions, TICD is also obligated to provide a transportation operating subsidy to supplement funding for the Island’s transit services and transportation demand management programs over the course of development.
In effort to promote a “transit first” community vision, in 2008 state Legislation as part of AB 981 created the Treasure Island Mobility Management Agency (TIMMA). The San Francisco County Transportation Authority (SFCTA) was designated as the Treasure Island Mobility Management Agency (TIMMA) in 2014. The approved legislation authorizes TIMMA, to implement the transit services for the island and among other duties, to establish parking fines, parking fees, congestion pricing fees and to collect all parking and congestion pricing revenues generated on-island to support the development's transit and transportation demand management programs to mitigate additional trips to and from the island using the San Francisco-Oakland Bay Bridge.
In anticipation of the first residential occupancy by summer 2021, the mobility program is being delivered in parallel with the goal to achieve at least 50 percent of trips to and from the island are made using sustainable modes. Tolling and paid parking strategies are in development to provide disincentives to those who choose to own and use their private cars on a daily basis. The TIMMA intends to adopt tolling policies in Q4 of 2020.
In the DDA, TITIP, and Infrastructure Plan, the development of tolling systems and infrastructure was a City responsibility, but no specific strategy was identified to fund implementation. To date work has been funded through TIDA leasing revenues and grants secured by the TIMMA. To fully deploy congestion management system including the tolling infrastructure, TIMMA has identified additional capital funding needs to implement services on schedule with island development and the arrival of new residents. TIMMA is working on strategies for addressing these needs.
The arrival of new residents also triggers the expansion of new transit services, beginning with transit service from the island to Oakland. Eventually, these expanded services – including ferry service from the Treasure Island to the San Francisco Ferry Terminal – are to be supported by the congestion pricing tolling revenues, parking fees, and related revenues. During the initial years of operation, however, transit operation subsidies will be required. The developer, TICD, is required per the DDA to provide a fixed subsidy amount during these initial years. However, depending upon the tolling policies and affordability programs adopted by the TIMMA Commission, the pace of development and island population growth, and other factors, additional operation subsidies may be required.
|TIDA – Utility Infrastructure||TIDA continues to operate existing utility systems on Treasure Island and Yerba Buena Island with the support of the San Francisco Public Utilities Commission (SFPUC). Although these systems are to be replaced during the course of development and new infrastructure accepted by the SFPUC or private utilities, portions of the existing systems will remain in use for 10 to 15 years or more as development progresses. In consultation with the SFPUC, TIDA has been making targeted investments in the existing utilities, in particular the wastewater collection system and treatment plant. Improvements are intended to ensure permit compliance and service reliability during the interim period before new infrastructure is constructed, dedicated to and accepted by the City. TIDA has been funding this work out of its annual operating budget, but previously authorized Certificates of Participation are an eligible source of funds which TIDA anticipates accessing in FY2021.
New water storage reservoirs are under construction by TICD and are scheduled to be commissioned before the end of 2021. TICD is also geotechnically improving the site of the new electrical switchyard and wastewater treatment facilities. The SFPUC will install new electrical switchgear in Q1 2021 and will advertise the contract to construct the new wastewater treatment plant, which is expected to be operational in late 2024.