OCII approves termination of Mission Bay ground lease and a joint community facilities agreement to shift park maintenance to City
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Summary
The commission approved termination of an agency ground lease and a joint community facilities agreement to transfer maintenance responsibility for Mission Bay open spaces to the city's Recreation and Park Department and the Port; OCII will remain CFD5 administrator and continue annual budget approvals for maintenance funding.
The commission voted Nov. 7 to approve termination of an OCII agency ground lease and to transfer the agency's interest in Mission Bay open-space parcels to the City and County of San Francisco, accompanied by a joint community facilities agreement that sets the framework for maintenance funding and standards.
Deputy Director Mark Slutskin summarized the long-running plan: Community Facilities District No. 5 was established to fund maintenance and operations (with annual assessments that increase by the lesser of CPI or 5.5%). CFD5 funds are limited to Mission Bay; OCII told commissioners the fund balance covers projected shortfalls through 2029, after which Rec Park and the Port will be responsible for future shortfalls. Slutskin said maintenance responsibilities began shifting earlier this year under memoranda of agreement; the ground lease termination formalizes that transfer.
Slutskin and staff described the joint community facilities agreement as preserving OCII's role as the administrator of CFD5 (including annual budget submittals to the commission), while Rec Park and the Port will manage day-to-day operations and park reservations going forward. Staff also noted the master developer provided consent for early lease termination and that the Board of Supervisors approval will be sought to complete the city transfer.
Commissioners asked about capital upgrades (irrigation), implications for assessments, and potential revenue from future development (e.g., hotel contributions). The motion to approve the lease termination and agreement passed 3–0 with one absence.
Why it matters: The action finalizes a years-long transition of park maintenance from OCII to city agencies and clarifies long-term funding and operational responsibilities for Mission Bay open space.
Next steps: Staff will work with the Board of Supervisors for approval by year-end and complete administrative steps in 2024 (street vacations and city transfer coordination).
