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SFPUC authorizes surplus property transfer to Mayor's Office for housing and park in Mission area
Summary
The commission voted to declare a parcel on 17th Street between Folsom and Shotwell surplus and approved a memorandum of understanding to transfer the property to the Mayor's Office of Housing and Rec & Parks for $6,271,850, with the PUC retaining a small pump‑control parcel and accepting responsibility for known soil remediation obligations.
The San Francisco Public Utilities Commission voted to declare a 60,925‑square‑foot parcel on 17th Street between Folsom and Shotwell surplus to utility needs and authorized a memorandum of understanding to transfer the property to the Mayor's Office of Housing and the Recreation and Parks Department for fair market value (listed in the action as $6,271,850).
Why it matters: staff told the commission the transaction advances three objectives — creates housing, secures neighborhood open space in an underserved area and protects ratepayer interest by receiving market value for property no longer needed for utility operations. Deputy General Manager Michael Carlin said the PUC will retain a small portion of the parcel (about 16 by 16 feet) that contains a pump‑control station associated with an underground pump on Shotwell Street.
Contamination and remediation: Carlin noted known contaminated soils on the site. The resolution authorizes limited credits of up to $600,000 to cover remediation work if required and records that PUC accepted liability for site remediation at the time it took ownership of the property. "When we took ownership of the property, we took all the liability with it," Carlin said.
Public comment and community support: Several neighborhood and community groups, including People Organizing to Demand Environmental and Economic Rights, spoke in favor of the project as a community‑led plan that would increase affordable housing and create open space in a neighborhood with historical environmental burdens. City and community speakers emphasized the project's potential to benefit immigrant and low‑income families in the Northeast Mission area.
Vote and correction: Commissioners approved the transfer and an amendment correcting the parcel size in the resolution; the motion passed with a recorded aye vote and no recorded opposition.
Implementation: Staff will execute the MOU with MOH and Rec & Park and request a jurisdictional transfer through the Mayor and the Board of Supervisors consistent with applicable city law and CEQA findings. The PUC will receive payments per the MOU and will administer remediation credits as necessary.
The commission action transfers the site toward housing and park development while retaining utility access to the pump control facility and documenting the PUC's remediation responsibilities.
