OCII presents FY2015-16 administration and asset-management budgets; commissioners press on Fillmore garage and community funds

OCII staff presented the agency's second workshop on the fiscal year 2015-16 budget at the April 21 meeting, reviewing administration, debt service and asset-management plans and answering commissioners' questions about operating risks in non-major project areas.

In the presentation OCII's finance staff reported an administration budget of approximately $11.7 million, funded in part by property tax increment and other sources. Leo Levinson, Deputy Director of Finance and Administration, said the salary and benefit total was reduced compared with the prior year largely because several staff performing city work had moved to city departments, but OCII proposes 5 new FTEs to support an accelerated work plan. OCII also reflected a change in CalPERS billing (lower percentage with a lump-sum payment), and a $537,000 lump-sum pension payment was included in the materials.

Asset-management issues and community concerns

Real Estate and Development Services Manager Christine Maher reviewed remaining assets outside major project areas, including Yerba Buena Gardens (operations and a $12.2M YBG budget), Fillmore Heritage Center (commercial tenant defaults and a management deficit in the associated garage) and Shoreview Park (capital reserve funded from annual CDBG program income). Maher said transfers of some assets (Mexican Museum site and Jesse Square Garage) are anticipated this fiscal year pending state and city approvals and completion of transactional steps.

Commissioners and members of the public focused on a few immediate community‑facing issues:

- Fillmore garage: Staff acknowledged recent revenue declines tied to the closure of an anchor tenant. OCII currently operates the garage, covering monthly deficits; the budget includes a contingency to manage short‑term deficits and capital reserves. Staff said sale of the garage is part of a longer-term disposition plan under OCII's PMP, but short-term options will be required to stabilize operations.

- Shoreview Park: OCII holds approximately $1.3M in prior-year authority and budgets roughly $300,000 annually in CDBG program income from a Foods Co. parcel to accumulate roughly $1.5M for capital improvements; staff intends to transfer assets and funds to the City once the PMP is approved.

- Disposition costs: The budget includes $200,000 for anticipated legal and appraisal costs tied to asset dispositions if the PMP is approved.

Public testimony and requests

Community members from the Western Addition and Fillmore urged OCII to hold community meetings, to restore access to community spaces and to provide transparency about developers and obligations. Speakers requested a local meeting with named developers and sought clarity about obligations and community-benefit agreements that affect the Fillmore and Bayview areas.

Next steps

OCII staff said the full budget will return to the Commission for adoption on May 5 and then be submitted to the Mayor's office and Board of Supervisors for review; the agency will also continue monitoring asset transfers that may occur if state and city clearances are obtained. Commissioners requested follow-up briefings on the Fillmore garage (including closed-session legal briefings if litigation exists), community benefit inventories and outreach strategy for certificate-of-preference holders.

Sources: OCII staff presentations and public comment at the April 21 meeting.