OCII approves option agreement with F4 Transbay Partners for Block 4, citing 45% affordable housing pledge

The Commission on Community Investment and Infrastructure approved an option agreement with F4 Transbay Partners on April 19 to allow the developer to purchase Block 4 in the Transbay Redevelopment Project Area, staff said at the meeting.

Deputy Director Sally Orth told commissioners the option sets “the terms for a specific price, $45,000,000 subject to other terms and conditions,” and includes a $500,000 deposit from the developer and an additional $100,000 available to the agency. Orth added the agreement allows a $3,000,000 discount to the purchase price if the parcel transfer is delayed past June 2018 due to site availability.

Orth said the developer has agreed to “subsidize up to 45% affordable housing in this project,” which staff characterized as the highest percentage of on‑site affordability among Transbay blocks. She said the high affordability level is significant because it would not rely on an OCII affordable housing loan and would therefore conserve tax‑increment subsidy for other projects.

Staff and the development team explained the transaction ties to the Transbay Joint Powers Authority (TJPA) Parcel F sale. Orth noted the TJPA approved a Parcel F purchase and sale agreement for $160,000,000 and that the Parcel F transaction includes an option to purchase Block 4 that requires OCII approval because Block 4 is under OCII jurisdiction.

Representatives of the development team — Chris Collins of Urban Pacific and Cameron Faulkner of Hines — described prior local experience and said the team will partner with a local affordable housing developer and pursue local hiring and SBE goals. Collins said the team expects to “meet or exceed the goals” for local hiring and small‑business participation.

Commissioners questioned the team about prior San Francisco work and clarified schedule and design steps. Staff outlined the approval pathway: the Board of Supervisors must make a fair‑market‑value determination (expected in May), TJPA and the developer would close on Parcel F if the Board concurs (expected in June), and OCII would return for schematic design selection and DDA negotiation in 2017. Orth said construction would be anticipated in 2018 once the temporary transit terminal is relocated.

Commissioner Singh moved to approve the option agreement and Vice Chair Mondejar seconded. The roll call recorded Commissioners Pimentel, Bustos, Singh, Vice Chair Mondejar and Chair Rosales voting yes; the Chair announced the motion passed with five ayes.

The resolution approved was identified in the staff packet as Resolution No. 18‑2016. The Commission’s approval is contingent on any adjustments to the purchase price being returned to OCII and the Board of Supervisors for further determinations, as described in the staff presentation.

Next steps identified at the meeting include the Board of Supervisors’ fair‑market determination and follow‑up OCII actions to select an affordable housing partner and to negotiate the disposition and development agreement that will formalize community benefits, certificate‑of‑preference protections and workforce and small‑business contracting commitments.