Board approves Treasure Island amendments, adds financing language limiting COP tranches

Supervisor Dorsey, joined by Mayor Breed as sponsor, asked the Board of Supervisors on April 23 to approve a package of amendments intended to keep the Treasure Island/Yerba Buena Island project moving into its next development stage.

The amendments and related ordinances approved by the board affect the Treasure Island Community Development/Yerba Buena Island project and its financing plan, and are intended to advance affordable housing, a behavioral health building, parks, and other infrastructure for the island community. "When complete, Treasure Island will be 27% affordable with a high quality public realm that offers parks and open spaces, waterfront access, and amenities," Supervisor Dorsey said.

Treasure Island matters locally because the site is home to roughly 2,000 residents, many of whom are low-income and members of BIPOC and reentry communities. Dorsey said the changes would "finally make good on promises long made to current residents" and described the package as a way to maintain project momentum while delivering more housing and supportive facilities.

The key fiscal change accepted by the board adds language to the financing plan and resolution (item 14) to limit the planned issuance of certificates of participation (COPs). President Peskin moved, and Supervisor Chan seconded, an amendment that requires COP financing for Treasure Island Stage 2 to be structured in no fewer than three tranches with no more than one tranche issued per fiscal year, and conditions subsequent tranches on the 10-year city capital plan demonstrating sufficient capacity. Peskin explained the intent in committee: "we will only subsequently vote to issue certificates of participation if and only if there is sufficient COP capacity that does not compromise the rest of our capital."

Board members described the change as guidance to ensure COP sales do not compromise other capital needs. Supervisor Chan said the financing-plan amendment had already been reviewed in budget committee and that placing the same language into the resolution itself would avoid later confusion.

The package combined several items affecting Treasure Island: an amendment to a development agreement, an amended and restated disposition and development agreement, planning-code changes to the Treasure Island/Yerba Buena Island Special Use District, and a resolution endorsing an aspirational statement by the public, nonprofit, and private partners (items 13' 16). After receiving no objections to the amendment on the floor, the board took the items together and adopted them "same house, same call."

Discussion vs. decision: The board's remarks were framed as both policy context and direction. The substantive, formal action was the approval of the amendments and the financing language (the resolution and ordinances were passed by the board); the motion to add COP tranche limits was made and accepted on the floor.

Implementation details and next steps: supporters said the amendments clear the way for the next development stage and for additional actions the city will take to deliver affordable units, a behavioral health building, parks, and other elements. Supervisors and staff referenced TIDA (Treasure Island Development Authority), the Office of Economic and Workforce Development (OEWD), and 1 Treasure Island as implementation partners; Dorsey cited specific staff and external partners by name during remarks. No new dollar appropriation or COP issuance was executed at this hearing; rather, the board changed the financing plan language and authorized related agreements and code amendments.

Ending: Supporters urged the board to approve the amendments so construction and affordable housing delivery can proceed. The package passed after the amendment to item 14 was accepted; the board then took items 13 through 16 together and adopted them.