The Budget and Finance Committee on Oct. 30 voted to send to the full Board of Supervisors a resolution of intention to form an enhanced infrastructure financing district (EIFD) covering the 3333 and 3700 California Street sites, and an ordinance amending the 3333 California Street development agreement to extend its term and revise project obligations.

Lorenzo Rosas, speaking on behalf of Supervisor Catherine Stefani, said the two projects “represent a unique opportunity to bring approximately 1,300 homes to the Laurel Heights neighborhood, alongside investments in public infrastructure, a child care facility, streetscape improvements, and more.” Lee Lutensky of the Office of Economic and Workforce Development (OEWD) said the EIFD would use incremental property-tax revenue to pay for required public facilities and make the developments more competitive for subsidies.

The OEWD presentation described the 3333 California Street conversion and new residential buildings totaling about 744 units, including a senior affordable housing building that would be reduced from 185 units to 125 units, and the 3700 California Street site as a rezoned pipeline project that would deliver about 567 units. OEWD said the EIFD would receive 50% of incremental property taxes generated by the projects, with the other 50% returning to the general fund.

Nick Menard of the Budget and Legislative Analyst’s office flagged policy and due-diligence issues, telling supervisors that including 3700 California in the EIFD “does not strictly comply with the board-approved financial policy” because that project does not have a development agreement or area plan, and that some financial analysis relied on a consultant for the developer rather than an independent review. OEWD staff responded that the two sites were intentionally paired and that proposed financing terms in the amended development agreement would tie the projects together.

Multiple community organizations and project partners spoke in support during the public comment period, including Mercy Housing, the San Francisco Chamber of Commerce, the Jewish Community Center and several neighborhood groups and trades representatives who emphasized job creation, open space and senior housing. Mercy Housing said the revised 125-unit senior building would be financially feasible and more competitive for state programs.

Chair Supervisor Connie Chan moved to amend the OEWD clerical correction read into the record and forward both items to the full Board with a positive recommendation. The roll call recorded three ayes; the motion passed.

The OEWD presentation estimated preliminary infrastructure costs for the district and said staff intend to return to the Board with a detailed EIFD formation package and technical analysis, with an estimated timeline that could bring a finalized formation to the Board in summer 2025.