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City consultants recommend certifying and selling public TDR in large assemblies to fund preservation
Summary
A market study of San Francisco's Transferable Development Rights program recommended certifying TDR from city‑owned buildings prioritized in the capital plan, authorizing the Department of Real Estate to transfer them, setting a minimum price (recommended $25/sf) and reviewing the program every five years.
A Planning Department‑commissioned market analysis of San Francisco’s Transferable Development Rights (TDR) program presented to the Historic Preservation Commission urged the city to consider certifying and selling TDRs from publicly owned properties to meet private sector demand and raise revenue for preservation projects.
Marie Munson of Seifull/Bridal Consulting told commissioners, "The number of TDR that has been certified is 5,300,000," and that about 2,700,000 square feet of that total have been used on 34 development projects. The consultants estimated roughly 2,340,000 certified TDR remain unused and recommended the city prioritize certifying TDR from capital‑priority public buildings (for example Civic Center properties) and allow the Department of Real Estate to transfer them in marketable assemblies.
Their recommendations included establishing a city minimum price (the consultants suggested $25 per square foot, to be reviewed annually), creating mechanisms to market larger blocks (so developers could acquire sizable assemblies from a single source), publishing annual TDR usage and pricing reports, and reviewing the program every five years to assess market effects. The presentation noted that assembling private TDR often requires multiple transactions, and that public TDR could help meet demand for larger blocks.
Public commenters from the real‑estate and preservation sectors expressed conditional support: Edward Saharski (Fortress Property Group) urged the city to sell larger assemblies (above ~75,000 sf) and discussed pricing strategies to maximize revenue for projects such as the Veterans Building; others urged that proceeds be tied to on‑site preservation work and that issues such as FAR definitions for port properties be fleshed out through legislation.
No formal decision was made at the meeting; the presentation was informational, and commissioners asked questions about pricing, potential use of proceeds, program governance and conflict‑of‑interest safeguards for port property FAR determinations.
What happens next: staff and consultants recommended additional reporting, potential ordinance changes to enable certification and sale of city‑owned TDR, and follow‑up policy discussions on pricing, use of proceeds and administrative authority to sell certified public TDR.
