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Port Commission approves MOU to pursue affordable housing on Seawall Lot 322

San Francisco Port Commission · March 11, 2014
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Summary

The San Francisco Port Commission approved a three-year memorandum of understanding with the Mayor's Office of Housing to pursue affordable housing on Seawall Lot 322; the MOU is a process agreement, not project approval. Staff said the site now produces about $600,000 a year in parking revenue and that any lease would depend on job-housing linkage credits and subsequent public review.

The San Francisco Port Commission on voice vote approved a memorandum of understanding with the Mayor's Office of Housing and Community Development to pursue an affordable housing project on Seawall Lot 322 at Broadway and Front Street. The MOU, which commissioners described as a process document rather than final project approval, establishes a three-year framework (with a possible 12-month extension) for the housing office to issue an RFP, select a nonprofit developer and pursue entitlement and CEQA review.

Ricky Tejani, project development manager in the Port’s planning division, told commissioners the site is currently a surface parking lot generating about $600,000 annually and is zoned C2 (community business). Staff estimated the scheme could yield roughly 170–200 senior units or 80–115 family units, with 2,000–5,000 square feet of ground-floor retail and potential public parking. Tejani said the MOU anticipates a long-term lease structure (up to 75 years) contingent on receiving job-housing linkage credits that would help fund rehabilitation needs elsewhere on the waterfront, notably Pier 70.

The housing office reiterated the commitment to community engagement. Theresa Yonge, director of housing development at the Mayor’s Office of Housing and Community Development, said staff will return to the community to refine RFP goals and incorporate local priorities before issuing the RFP and that the selected nonprofit developer would be required to conduct community outreach during design and entitlement.

Public comment at the meeting split between neighborhood groups seeking more process detail and advocates urging approval. Bob Harrah of the Barbary Coast Neighborhood Association and representatives of nearby neighborhood groups urged delaying or tabling the MOU to allow more community review; other speakers including Corinne Woods (Central Waterfront Advisory Group) and Peter Cohen (Council of Community Housing Organizations) supported the MOU, noting the difficulty of assembling affordable housing financing and the value of the site for meeting city housing goals.

Commissioners focused questions on revenue impacts to the Port Harbor Fund, parking design (at-grade versus underground), the composition of affordable units (low-, moderate- or senior-focused), and the schedule. Staff said the housing office aims to issue an RFP within about a year and that, depending on funding and the entitlement process, selection and design could take roughly two years. The staff report estimated the jobs-housing credit value in support of Pier 70 at about $7–8 million; staff said continued public parking in a structure could preserve a portion of current revenue but the specifics will be studied during project feasibility work.

The commission approved the MOU by voice vote; the meeting record contains a unanimous “aye” with no roll-call tallies recorded. The MOU itself does not grant project approvals; any development will return for public review, environmental clearance and a subsequent port action.

Next steps: if the commission’s approval stands, the Port will execute the MOU and the Mayor’s Office of Housing will begin RFP development with community input. The housing office and port staff committed to periodic updates to the commission during the MOU period.