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Board approves transfer of Mission Bay blocks to UCSF with upfront payments for affordable housing and infrastructure
Summary
Supervisors approved agreements allowing UCSF to acquire Blocks 33 and 34 in Mission Bay South with lump‑sum payments totaling $32.1 million to cover affordable housing and infrastructure obligations; supporters said the funds accelerate housing construction, opponents argued the city received a discounted amount.
The San Francisco Board of Supervisors voted to consent to the transfer of Mission Bay South Blocks 33 and 34 to the Regents of the University of California and to approve related payments that will fund affordable housing and infrastructure in the redevelopment area.
UCSF will provide an upfront payment of $32,100,000 in lieu of annual payments that a taxable developer would have paid over time under the redevelopment pilot agreement. OCII (the Office of Community Investment and Infrastructure) will receive about $10,200,000 of that sum for affordable housing; a further $21,900,000 is designated for public infrastructure reimbursements to the master developer under existing enforceable obligations.
Christine Maher, a development specialist at OCII, told the board that although UCSF's upfront payment is less than the full net present value that would have been owed under the pilot (about $39.8 million), it nonetheless provides two benefits: the lump sum is available now to accelerate affordable housing production in Mission Bay South, and OCII's estimated receipt is roughly $2 million more than it would have received from a taxable developer under dissolution calculations. "The affordable housing payment will allow for two affordable housing projects to be built in the next five years rather than two in the next 10 years," Maher said.
Ken Rich of the Mayor's Office of Economic and Workforce Development said the transfer could also free other UCSF‑leased properties around the city to be returned to the tax rolls in coming years, producing additional general‑fund revenue. OCII and outside consultant analyses estimated the net present value of such future returns could be about $16.2 million, with about $6.6 million to the city's general fund, though officials said those figures were contingent on future development and lease expirations.
Supervisor London Breed voiced concern that the city was getting a discounted payment rather than the full pilot amount and said she could not support the transfer for that reason. "I think they should pay the full amount," Breed said, arguing for either full upfront payment or full annual payments over time. Supervisor Wiener expressed similar concerns about the lack of transit impact development fees but said he was persuaded by staff that UCSF was stepping into Salesforce's position and that the negotiated payment was the practical outcome of that contractual situation.
After discussion, the board took separate roll‑call votes. The resolution acting in the successor‑agency capacity to accept the OCII affordable‑housing payment (item 21 in the board docket) passed unanimously (11–0). The resolution consenting to the transfer of Blocks 33 and 34 to UCSF as a tax‑exempt entity (item 22) passed 9–2; Supervisors Breed and Cohen voted no on item 22.
Why it matters: OCII said the upfront money will accelerate construction of about 236 affordable units still required under the Mission Bay South obligations, including projects targeted for formerly homeless families and supportive housing. Opponents argued the city accepted a discounted present value and lost potential long‑term tax receipts.
What’s next: OCII plans to apply the affordable housing payment to two named projects (Block 6 East and Block 3 East) and to coordinate infrastructure work funded by the infrastructure payment; staff and consultants will return with implementation details and timing.
