OCII previews $527.3 million FY2021 budget, flags COVID-era adjustments and equity review

The Commission on Community Investment and Infrastructure held a remote workshop on June 2, 2020, to review OCII’s proposed fiscal year 2021 budget of $527.3 million and to hear project-level plans for Mission Bay, Transbay and Hunters Point/Candlestick Point.

Mina Yu, Financial Reporting and Management Analyst for OCII, told commissioners the total FY2021 budget is "$527,300,000," with the majority funded by prior-period authority, followed by property tax and fund balance. She said programmatic expenditures total about $362.2 million, with the remainder going to operations, debt and funds remitted to the Transbay Joint Powers Authority (TJPA).

The presentation broke the budget into major areas. OCII’s infrastructure and non-housing work totals roughly $237.5 million, much of it earmarked for development infrastructure reimbursements that cover work developers complete on the ground and then submit for payment, Yu said. In Mission Bay, project manager Mark Slutskin said OCII plans to complete the final streets and construct three parks (P3, P19 and P27), continue work on Bayfront Park (P22) and begin construction of a final stormwater pump station. Slutskin said the $178.3 million figure for Mission Bay includes reimbursement for prior-year work as well as funds for upcoming work and listed line items such as $2.3 million for plan and permit review and $900,000 for consultant review.

Sally Orth, deputy director for projects, presented the Transbay budget at about $51 million. Orth said roughly $27 million is identified for infrastructure projects including the Folsom streetscape and park/open-space work, about $21 million is pledged tax increment to the TJPA for transit center costs, and the remainder covers staffing and professional services. Orth said design work and community outreach will continue for the Block 3 park (Transbay Park conceptual design).

Lila Hussain, senior project manager for Hunters Point Shipyard and Candlestick Point, described a $36.1 million work plan largely in predevelopment and infrastructure phases, funded by developer reimbursement, community benefits grants and federal or state grants. She noted planned grants for Building 101 rehabilitation and continued use of Community Facilities District (CFD) funds to operate parks once assets transfer to OCII.

On housing, Jeff White, housing program manager, said the FY2021 housing budget is $124.5 million, including six new housing loans (two construction loans — Mission Bay South Block 9 and Hunters Point Blocks 52/54 — and four predevelopment loans) and seven existing loans totaling $24.9 million. White said a Mission Bay South 152-unit project is expected to be completed and occupied by mid‑next fiscal year.

Raymond Lee, Contract Compliance Supervisor, told the commission OCII has awarded "over $5,500,000,000 in contracts with over $1,600,000,000 to small businesses" since OCII’s establishment in 2012 and said current work includes administering community benefits through OEWD. On the effects of the COVID-19 stay-at-home orders, Lee said, "The construction activities did not halt for, what were considered essential projects, so housing projects continue," while some non-affordable housing construction paused and subcontractors were impacted.

Hilde Maillong, real estate and development services manager, described the long-range property management plan directing transfers of completed affordable housing assets to city partners (MOHCD and others), and listed anticipated transfers and properties the Board of Supervisors authorized to transfer during 2020–2021, including the South of Market Health Care Center and other identified parcels.

Mina Yu returned to outline debt and operations: OCII’s bond portfolio includes roughly $998.5 million outstanding (about $860 million in tax allocation bonds), $118.6 million planned for the 2021 debt program, and an operating budget of $20.6 million supporting 55 FTEs. OCII administers seven CFDs to maintain parks and infrastructure, and staff said outstanding principal on three issued infrastructure bonds is approximately $176.2 million.

Commissioners asked several questions. Commissioner Sandra Scott asked whether the proposed budget will be sufficient amid pandemic uncertainty; Deputy Director Bree Mahorter said staff delayed the budget cycle, adjusted assumptions and "within our limited mandate we are funded to do the best that we can to support the community," while noting OCII’s role is limited to enforceable obligations approved by the Department of Finance. Commissioner Brackett asked about impacts to small-business contractors and whether work halted; Raymond Lee answered that essential housing construction continued but non-affordable housing projects were paused and subcontractors were affected.

Vice Chair Mara Rosales asked the executive director to convene a small working group to review OCII programs and policies to support small businesses and workforce recovery; Director Sasse agreed to assemble a team, including contract compliance staff and project managers, and noted a pending capacity study could inform recommendations.

The workshop was informational; staff said the commission will consider an action item at its June 16 meeting, with OCII submitting the budget to the mayor’s office on July 1 and the Board of Supervisors on August 1. The meeting adjourned at 1:51 PM after a motion to adjourn moved by Commissioner Sandra Scott and seconded by Commissioner Brackett; no roll-call vote on adjournment was recorded in the transcript.

Votes at a glance: - Motion to adjourn at 1:51 PM: moved by Commissioner Sandra Scott; seconded by Commissioner Brackett. Outcome: motion moved and meeting adjourned; no roll call recorded.

(Reporting notes: All quotes and attributions are drawn from the meeting transcript. The presentation was an informational workshop; no budget approval vote took place on June 2.)