Committee approves referral of sale of 5,500‑square‑foot vacant lot in Bayview to adjacent owner for $375,000

The Budget and Finance Committee on May 7 voted 3‑0 to forward to the full Board of Supervisors a resolution to sell an approximately 5,500 square-foot vacant city parcel to the adjacent property owner, Bayview McKinnon LLC, for $375,000.

Rico Penick, director of real estate, told the committee the narrow, 17-foot-wide former railroad spur sits between McKinnon and Newcomb streets in the Bayview industrial area and was conveyed to the city in 1942. Penick said the parcel cannot be developed independently and that only an adjacent owner could reasonably incorporate it into a usable site, meeting criteria in the State Surplus Lands Act and San Francisco Administrative Code §23.3 that can exempt small parcels from competitive sale procedures.

Penick said the sale price reflects a fair‑market appraisal and that the disposition would be subject to requirements of the State Surplus Lands Act. Supervisor Chan and other committee members asked whether the adjacent owner intends to continue industrial operations; Penick said the buyer plans to remove a fence and expand its operations into the strip and remains in operation as a metal works business. Penick said that the city previously issued an RFP to lease the parcel, with only one responsive respondent — McKinnon — who then offered to buy rather than lease.

Supervisor Chan asked whether District Supervisor Walton had been briefed; Penick said Walton had not been briefed on this specific sale, and Chan requested staff notify the district supervisor ahead of full board consideration. No members of the public addressed the committee on the item. The committee voted to forward the resolution to the full board with a positive recommendation.

The resolution includes the required findings for the exempt surplus-land disposition and authorizes the director of property to make non‑material amendments necessary to effectuate the sale.