The Public Works Commission on Jan. 9 unanimously approved a resolution authorizing the department to award $20 million in federal RAISE grant funds directly to CP Development Co., LLC (a subsidiary of 5Point) to construct the Bayview Connections project Phase 1, including extensions of Harney Way and Aurelius Walker Drive with dedicated bus rapid transit lanes, separated cycle tracks and widened sidewalks.

The award authorizes Public Works to act as the grant administrator and to pass federal funds to the developer for work that the developer is already required to construct under its disposition and development agreement with the Office of Community Investment and Infrastructure (OCII). Project manager Shauna Gates told the commission the RAISE award was made by the U.S. Department of Transportation in June 2023 and that obligating the funds now will allow the developer to proceed with detailed design and permitting with construction anticipated for early 2026.

Why it matters: The RAISE grant supplies roughly 43 percent of the Phase 1 budget, Gates said, with the developer providing the remainder as local match. Commission staff and OCII representatives described the investment as enabling the long-dormant Candlestick Point redevelopment to restart by funding backbone transportation improvements intended to connect southeast San Francisco neighborhoods into the regional transit network.

The developer and OCII representatives described the first phase as supporting six housing blocks and commercial frontage that will allow vertical construction of housing once the infrastructure is in place. Katarina Kidd, director of planning for 5Point, said the Harney Way and Aurelius Walker improvements “will support four blocks on Harney Way of housing” and additional blocks across from Gilman Playground. Lila (Luzhan) Hussain of OCII said the first phase includes about 675 units with 41 percent designated as affordable in that phase.

Commissioners asked for clarity on procurement and project timing. Gates said Public Works did not run a separate competitive procurement because the grant scope is expressly part of the developer’s obligations under the existing development agreement and the developer owns or controls the land where the work will be built. Gates said Public Works is seeking expedited approval to obligate funds sooner than the original schedule because of entitlement changes and to secure the award under the current federal administration.

Commissioners pressed developer and OCII representatives about overall construction timing and whether the project could be accelerated. OCII noted the project faces large upfront infrastructure costs and market conditions that historically make buildout occur over many years; as context, OCII staff cited Mission Bay’s multi‑decade buildout. Kidd said the team is working to accelerate phases where possible and move Candlestick to the forefront of city priorities.

The commission resolution approving the sole-source grant award notes that further approvals by the Board of Supervisors are required before the grant funds are obligated. The motion passed unanimously; the commission directed staff to post the resolution to the commission website.

Provenance: The commission heard the item as agenda Item 6 and discussed it across the meeting; presentation began at the Item 6 introduction and concluded with the unanimous vote recorded by the chair and the subsequent posting instruction.

Ending: With the funding authorized, Public Works staff said they will work with the developer in 2025 to complete detailed design, secure permits and prepare for construction in early 2026 while returning to the Board of Supervisors for final approval before obligating the RAISE funds.