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OCII approves settlement in Yerba Buena lawsuit, city to fund pedestrian improvements
Summary
The commission approved a settlement resolving litigation over the July conveyance of parcels for the proposed Mexican Museum, with the city agreeing to fund pedestrian safety measures around the project and the developer donating $200,000; the settlement releases claims against the successor agency and imposes no financial liability on it.
The Commission on Community Investment and Infrastructure on May 20 approved a settlement resolving a lawsuit challenging the agency’s July conveyance of parcels to Millennium for the Mexican Museum and an associated residential tower.
Jim Morales, deputy director and interim general counsel, told commissioners that the agreement would dismiss the lawsuit and release all claims against the successor agency while imposing no financial liability on the agency. Under the settlement, the city — not the successor agency — will install signs prohibiting bicycle and skateboard riding around the project, widen the northwest corner at Fourth and Mission to increase sidewalk space, and evaluate the construction of a mid‑block crosswalk on Folsom between Third and Fourth that lines up with Mabini Street. Morales said Millennium will donate $200,000 to support implementation.
“Significantly the settlement agreement does not impose any financial liability on the successor agency,” Morales said, and recommended approval because the measure resolves outstanding litigation and “will provide benefits to the community” in the immediate project area.
Francisco de Costa, director of environmental justice advocacy, spoke during public comment in support of a Mexican Museum but criticized commissioners’ familiarity with the process and urged clearer procedures for community involvement. Commissioners asked staff for a full budget estimate for implementing the settlement’s measures and for more details about the sidewalk‑management work group named in the agreement. Staff said department budgets and other city funding sources will be evaluated and that more information would be provided to the commission and the Board of Supervisors as part of the city’s review.
A motion to approve the settlement passed by roll call vote, recorded in the meeting as 5 ayes and 0 no votes.
Next steps: staff said the settlement will proceed to the Board of Supervisors as part of the normal approvals and that department budgets and any additional funding needs will be reviewed as the city carries out the pedestrian improvements.
