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SFPUC gets exclusive negotiating right for 4–6 acre Treasure Island parcel; PUC to plan treatment and recycled-water facilities

San Francisco Public Utilities Commission · February 9, 2010
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Summary

Commission approved an exclusive negotiating agreement with the Treasure Island Development Authority giving SFPUC rights to negotiate for a 4–6 acre parcel for PUC uses. Staff described a proposed cost allocation: developer constructs collection grid and stormwater systems; SFPUC would fund/construct treatment and recycled-water facilities (planning-level SFPUC cost ~ $87.6M).

The Commission voted Feb. 9 to authorize an exclusive negotiating agreement (ENA) between the San Francisco Public Utilities Commission and the Treasure Island Development Authority (TIDA) giving the PUC the exclusive right to negotiate for a 4–6 acre parcel on Treasure Island for PUC uses.

Jack Sylvan (Mayor's Office of Economic Development) and Mike Martin (SFPUC project manager) briefed commissioners on the Treasure Island redevelopment plan, which envisages 6,000–8,000 housing units, open space and a transit hub. Sylvan said roughly $1.1 billion of the project cost is associated with infrastructure and that about $200 million of that is utilities that will be owned by SFPUC. He described financing through developer private debt, tax-increment mechanisms and a community facilities district.

Under the ENA staff proposed an allocation of responsibilities: the developer would finance and construct the replacement wastewater collection system, separate stormwater management systems, recycled-water distribution and constructed wetlands/stormwater treatment components; SFPUC would finance and construct a replacement wastewater treatment facility and recycled-water treatment/distribution facilities. Martin said the SFPUC planning-level estimate for the wastewater treatment and recycled-water facilities is approximately $87.6 million and that the PUC has included a $105.5 million Treasure Island allowance in its 10-year capital plan to cover the SFPUC portion of island infrastructure.

Both staff and the developer emphasized that final agreements are contingent on environmental review and Board approvals. The ENA is a planning-stage commitment that gives PUC staff the ability to negotiate terms, refine design criteria and support the EIR before any final transfer or construction commitments are made. Commissioners asked that sea-level-rise adaptation and facility protection be integrated into design criteria; staff said those issues are central to negotiations and early design work.