Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transbay Block 8 topic
No spam. Unsubscribe anytime.
Related, TNDC continue search for Block 8 grocer as commission approves air‑rights lease for 80 affordable units
Summary
Presenters told the commission Related has set aside ~12,500 sq ft for an on‑site grocer and market research ranks Trader Joe’s and health/organic formats as strong prospects; the commission also authorized a 75‑year air‑rights lease for an 80‑unit affordable project on Block 8, reserving 20 parking spaces and imposing outreach and SBE contracting requirements.
Related California and project partners briefed the commission on March 15 about efforts to secure a grocery tenant for Transbay Block 8 and OCII simultaneously approved an air‑rights lease to enable an 80‑unit affordable housing project on the same block.
Grocery update: Colliers’ leasing representative summarized market analysis showing a trade area that could support a grocery anchor and identified three retail categories — Trader Joe’s‑style, health/organic and upscale independent markets — as target prospects. The developer has allocated roughly 12,500 square feet to a grocery (about 2,825 sq ft on the ground floor plus a larger basement merchandising area) and presenters said leasing, tours, internal approvals and permitting can be lengthy; a grocer build‑out typically takes about 150 days. "Trader Joe's was voted the one to succeed" in the consultant’s sales‑volume model, presenters said, but staff acknowledged competing nearby stores and said they will continue outreach and report back on price‑point data.
Air‑rights lease: OCII staff presented the affordable component for Block 8 — an 80‑unit project comprised of one‑, two‑ and three‑bedroom units, townhomes and two mid‑rise podium buildings — and requested authorization for a 75‑year air‑rights lease (with a 24‑year option) to T.E. Housing Partners LP (the developer entity for Related/TNDC). The affordable project will reserve 20 spaces in the shared underground garage (a 1:4 parking ratio) and staff said those spaces will be valet‑operated and guaranteed to the OCII‑sponsored affordable component; Related said it will work with staff to define assignment protocols. OCII staff also highlighted SBE performance on consultant contracts to date and repeated marketing and early outreach obligations, including the requirement that the developer provide a report on COP outreach prior to tenant selection.
Commission action and next steps: The commission authorized the air‑rights lease by roll call (4 ayes, 1 absent). Staff said the next steps include Board of Supervisors approvals for the air rights disposition and bond issuances; Related and TNDC plan to begin construction in June and expect resident move‑ins in fall 2018 for the affordable component.
