Budget & Finance committee advances plan to issue up to $29M in COPs to acquire Music Concourse Garage

The San Francisco Budget & Finance Committee on July 31 voted to forward amended legislation authorizing the issuance of up to $29 million in certificates of participation to finance the city’s acquisition of the Music Concourse Garage, an 800‑space underground facility in Golden Gate Park.

Recreation and Park Department Director Antonio Guerra told supervisors the acquisition follows voter approval in 2022 (Proposition N) that allowed the city to purchase and operate the garage. Grant Carson of the Controller’s Office said the proposed sale would repay the outstanding construction loan with First Republic Bank — about $21.6 million in principal plus accrued interest — and repay subordinate debt owed to the de Young Museum and the California Academy of Sciences. Carson described total sources of $30.1 million, including a $1.1 million prior reserve and a $3.26 million market‑uncertainty cushion.

"These COPs would be issued to repay the existing construction debt owed to First Republic Bank," Carson said, and he outlined municipal‑advisor assumptions that show a final maturity of April 1, 2049, a true interest cost near 4.67 percent and estimated total debt service of roughly $42.4 million over the life of the transaction.

The Budget Legislative Analyst’s office projected that net parking revenues, based on a five‑year SFMTA model, could be at least $3.2 million per year — higher than the estimated average annual debt service of about $1.74 million. Dan Goncher of the BLA recommended amending the ordinance to state the city’s intention to use up to $500,000 in COP proceeds to repay a portion of the partnership’s loans to the museums; the committee approved that amendment.

Supervisors raised equity and program questions. Chair Connie Chan asked whether low‑income residents would have reduced or free access; Guerra said revenue would be placed into a garage reserve and that rate and program decisions would be addressed after the city takes over operations. Sarah Madeline, Rec & Park’s director of policy and public affairs, said Parks is coordinating with SFMTA on rate‑setting and that the department has discussed extending the "Museums for All" partnership to parking when the city manages the lot.

The motion to amend and forward the ordinance to the full Board passed on a 3–0 roll call. Committee members said they expect the full Board to consider final approvals in mid‑September and — if approved — to complete the COP sale and transfer of the garage by December.