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Board approves ground lease for 77 units of supportive housing at 6600 Third Street
Summary
Supervisors approved a ground lease to enable redevelopment of the former Franciscan Hotel site into 77 supportive housing units for formerly homeless individuals and families. The redevelopment will use a nominal $1‑per‑year ground lease and operating subsidy from the Human Services Agency.
The Board of Supervisors approved a ground lease and associated resolution to enable an affordable supportive housing project at 6600 Third Street, the former Franciscan Hotel site. Redevelopment and agency staff described the transaction as a public land trust structure in which the Development Team — Mercy Housing and Providence (or Providence Foundation) — will construct improvements and lease the land from the City for the purposes of 77 supportive housing units.
Redevelopment staff said the ground lease will be set at $1 per year and that the Human Services Agency will provide operating subsidy to cover services and ongoing costs; charging a higher ground lease would have reduced the operating subsidies available to support the vulnerable population the project will serve. Supervisor Cohen described the project as “77 units of supportive housing” and said the site had been plagued by drug dealing and prostitution in earlier years; he praised the sponsors for turning the property to supportive use.
Public comment included both thanks and testimony supporting the project. After public comment the board adopted Item 45 without recorded objection. Ending: Redevelopment agency staff said implementation will proceed under the ground lease and that ongoing subsidy and services will be coordinated with the Human Services Agency.
