City staff presented three build‑out options for redeveloping the long‑vacant Byron Carlyle site in North Beach and recommended option 2, which includes a larger (350-seat) theater, a dedicated cinema, classrooms, rehearsal studios, exhibition/event space and a warming kitchen. The Finance and Economic Resiliency Committee voted to direct staff to model operations and financing using option 2 and to return to the full commission with RFP terms and recommended housing parameters.

Staff said AMS consulting prepared building programs and initial cost estimates: option 1 (smaller program) was estimated at about $39 million, option 2 at roughly $46 million and option 3 — the “future‑proofed” full program — at roughly $74 million. Staff and AMS told the committee option 2 represents a realistic middle ground between cost and long‑term utility for anchor arts organizations; the committee asked staff to use option 2 for the pro‑forma operating model due in February.

The committee also discussed an integrated workforce housing component. Staff noted the North Beach CRA had supported workforce housing for the site, and that the city had some funds set aside for workforce units. Commissioners requested stronger minimum unit-size and anti‑short‑term‑rental protections in the RFP (for example, no short‑term rentals and no micro‑units). Committee members asked staff to return quickly — within a month — with specific unit‑size floor proposals, affordability bands and how workforce units would be structured (workforce vs. deeper affordable), so those terms can be incorporated before the RFP issues.

Staff said financing options under consideration include state and federal grants, philanthropic fundraising (with Friends of the Byron performing outreach), developer negotiation on value and leveraging up to $4 million set aside for workforce housing. The committee asked staff to pursue an RFP draft informed by option 2 and for PFM and AMS to complete financial analysis to narrow the funding gap.

Ending: The committee voted to advance option 2 for modeling and to continue the item for a targeted discussion of housing size and affordability requirements before issuing the RFP.