OCII approves loans for Alice Griffith phases, awards Hunters Point public-art contract and museum grant

The Commission on Community Investment and Infrastructure (OCII) approved a package of financing and awards at its July 15 meeting that advance the city’s long-running redevelopment projects in Bayview-Hunters Point and downtown.

Most consequential, commissioners authorized two permanent loans to Double Rock Ventures LLC that fund the first two phases of the Alice Griffith HOPE SF redevelopment. Elizabeth Colomello, OCII development specialist, said the Phase 1 loan totals $21,972,930 for 93 units and Phase 2 totals $21,893,251 for 91 units. She described the loans as 55-year permanent loans repaid by residual receipts from project operations, and said the financing relies on a mix of CNI grant funds, low-income housing tax credit equity, master-developer subsidy from CP Development (Lennar) and OCII subsidy. Colomello said CNI deadlines require portions of phases 1–3 to be completed by September 2016 and September 2017 and that staff is working to meet those milestones.

"This is the complete rebuild of the Alice Griffith public housing development," Colomello told commissioners, framing the loans as necessary to meet statutory CNI delivery dates.

Both loan resolutions passed with recorded tallies of three ayes and one recusal; Chair Christine Johnson recused from Alice Griffith items because of a disclosed conflict related to the San Francisco Housing Development Corporation partnership.

On the Hunters Point Shipyard public-art program, OCII awarded contract HPS114 to Azul Works, a Bayview-based SBE, as the lowest responsive and responsible bidder. Kevin Masuda, senior civil engineer, said Azul Works submitted the low bid of $263,000; staff recommended programming a 10 percent construction contingency ($26,000) and delegated authority to extend the work to May 31, 2015 to coordinate with Lennar’s park-build schedule. Sandra Hernandez, owner of Azul Works, thanked the commission when recognized by staff. The contract award passed unanimously.

The commission also approved a third grant disbursement to The Mexican Museum in an amount not to exceed $1,030,881 for predevelopment planning and fundraising work at 706 Mission Street. Christine Maher, OCII senior development specialist, summarized milestones the museum has reached — including completed conceptual design, board development and digitization of the collection — and noted that two lawsuits remain pending that raise zoning issues even after a recent June ruling dismissed the CEQA challenges. Victor Marquez, general counsel for the museum, told commissioners the museum is a party to the joint defense; staff and the museum said they remain confident the project can proceed. The grant measure passed by roll call vote.

Other approved actions included a memorandum-of-understanding with the city controller’s office for financial-system and audit support not to exceed $175,000 for FY 2014–15 (approved), and the consent agenda approval of a conditional two-year permit with the City and County of San Francisco, SFMTA and Alta Bicycle Share for a bike-share station in the Yerba Buena area (approved with one recusal by Vice Chair Rosales).

One item was continued: a proposed MOU with the City Administrator’s Office for $1,317,000 was held to a future meeting while the city attorney’s office completes its review.

Votes at a glance

- Consent agenda (minutes; Alta Bicycle Share permit at Yerba Buena): approved; tally recorded as 3 ayes, 1 recusal (Vice Chair Rosales recused on advice of counsel). - Resolution 52 (commendation): approved, 4–0. - Resolution 53 (Wells Lawson commendation): approved, 4–0. - Resolution 54 (Christine Johnson commendation): approved, 3 ayes with Chair Johnson abstaining on her own commendation. - Loans for Alice Griffith Phase 1 ($21,972,930) and Phase 2 ($21,893,251): each approved, 3 ayes, 1 recusal (Chair Johnson recused). - Contract HPS114 to Azul Works (up to $263,000 + $26,000 contingency; extendable to 05/31/2015): approved, 4–0. - Mexican Museum third disbursement (up to $1,030,881): approved, 4–0. Staff noted CEQA challenges were dismissed in June but zoning litigation continues with an October trial date. - MOU with City Administrator (up to $1,317,000): continued for further city-attorney review (no vote). - MOU with City Comptroller for financial/audit services (up to $175,000): approved, 4–0.

What’s next

Staff said they will return with a master development agreement to govern land transfers at Alice Griffith and with future loan requests for later phases. The Mexican Museum and its development partners said they aim for a 2015 start and an approximately 40‑month construction schedule, subject to resolution of outstanding litigation and fundraising.

Sources: OCII staff presentations and roll-call votes at the Commission on Community Investment and Infrastructure meeting, July 15, 2014. Direct quotes in this article come from OCII presenters who spoke during the meeting (Elizabeth Colomello and Kevin Masuda).