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Successor Agency OKs exclusive negotiations with Related and TNDC for Transbay Block 8
Summary
The commission authorized the executive director to enter an exclusive negotiation agreement with Related California Urban Housing and Tenderloin Neighborhood Development Corporation to advance a mixed‑income residential project on Transbay Block 8. Staff cited a $72 million purchase price offer, a 27% affordable requirement, a $500,000 ENA deposit and a potential $2 million purchase price adjustment to accelerate the closing.
The commission authorized the executive director on June 24 to enter an Exclusive Negotiation Agreement (ENA) with Related California Urban Housing and Tenderloin Neighborhood Development Corporation (TNDC) to negotiate a disposition and development agreement for Transbay Block 8 on Folsom Street between First and Fremont.
Courtney Pash, assistant project manager for the Transbay project area, told the commission that the Block 8 RFP required 27 percent of units to be affordable (10 percent subsidized by the developer and 17 percent subsidized by OCII). Three teams responded; the Related/TNDC team received the highest score from the selection panel and the Citizens Advisory Committee recommended selection.
Staff disclosed that Related/TNDC’s proposal included a purchase price of $72,000,000 and proposed a program of 653 units across podium, tower and townhome components, including a 100 percent affordable podium/townhome component and an 80/20 mixed‑income portion at the tower base with market‑rate condos above. The ENA terms include a $500,000 deposit to cover staff and legal costs. To meet TJPA financing timing, staff negotiated a requested earlier closing (Oct. 2015) in exchange for a reduction in the purchase price to offset the developer’s financing cost up to a maximum of $2,000,000; staff said this change left Related/TNDC equal to the next highest bidder when accounting for the change and the scores.
Related and TNDC representatives described design elements — a paseo through the block, ground‑floor retail, and a potential below‑grade grocery — and TNDC affirmed it would be the long‑term owner/manager of the affordable units (177 units by TNDC). Commissioners and members of the Citizens Advisory Committee pressed on grocery tenant interest, whether the paseo would be a city street or privately owned with public access (staff said it would be a privately owned street with public access), and closing timing. A CAC member and a resident offered public comment in support; another resident asked for local tenant preferences for relocated SoMa residents (which staff said could be addressed as part of subsequent DDA marketing and preference discussions).
After questions and discussion, the commission moved and seconded authorization of the ENA. The roll call vote was unanimous: Commissioner Ellington Yes; Commissioner Mondahar Yes; Commissioner Singh Yes; Vice Chair Rosales Yes; Madam Chair Johnson Aye. Staff said it will return in March for approval of a disposition and development agreement and schematic designs, and that the DDA would include the $2,000,000 deposit to be credited against the land price at close of escrow.
The ENA moves the project into exclusive negotiations; the DDA and schematic design approvals (and any land sale) will return to the commission for formal action.
