OCII approves Transbay site acquisition; consent items pass unanimously

The Commission on Community Investment and Infrastructure on Aug. 18 voted unanimously to authorize the executive director to acquire the Transbay temporary terminal site and to adopt related California Environmental Quality Act findings. The commission also approved routine consent items earlier in the meeting.

Paige Peltzer, a development specialist with OCII’s real estate and development services team, told commissioners the site encompasses Transbay Redevelopment Blocks 2, 3 and 4 — an entire city block bounded by Howard, Beale, Folsom and Main streets — totaling about 151,000 square feet. OCII is acquiring the site from the Transbay Joint Powers Authority (TJPA) for $0 under a 2008 option agreement; proceeds from later sales of state‑owned parcels will go to TJPA to help fund Transbay Transit Center costs, Peltzer said.

The acquisition package approved by the commission includes: exercising the option to acquire former state parcels, executing a purchase and sale agreement with TJPA for privately owned parcels on the site, taking necessary steps to complete the transaction and manage the newly acquired property, and adopting environmental findings under the California Environmental Quality Act. Peltzer said OCII has executed declarations of site restrictions so Caltrans will relinquish a retained power of termination; those restrictions limit uses on Block 2 to affordable housing and ancillary ground‑floor commercial uses and restrict Block 3 to public park uses.

Commissioners asked staff about interim uses, public‑safety and property management. Peltzer said TJPA previously entered a license agreement giving the city the exclusive option to use the site as a safe‑sleeping site during COVID‑19 emergency declarations, but the city did not use the site and TJPA voted to terminate that license; OCII staff said they will seek authority to enter a personal‑services contract for interim property management to provide baseline security, cleaning and protection of the site until development begins.

Under the purchase and sale agreement staff described, OCII must close on the acquisition within 180 days of TJPA board approval of the PSA; staff anticipated acquisition by late 2020 and presented a preliminary development schedule that estimates Block 4 activity in spring 2022, Block 3 in fall 2022 and Block 2 in spring 2023, subject to change.

Commissioner Scott moved to authorize the executive director to proceed; Commissioner Brackett seconded. The secretary called the roll and recorded four ayes (Brackett, Scott, Vice Chair Mara Rosales, Chair Miguel Bustos), and the motion carried.

Earlier in the meeting the commission approved consent agenda items, including minutes and an amendment to extend the term of a legal services contract with Schutte Mahali & Weinberger LLP that provides for termination upon expenditure of a total contract amount of $1,500,000 to continue specialized legal services related to land‑transfer agreements in Hunters Point Shipyard and Candlestick Point project areas.