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Supervisors forward purchase option to hold Bayview site for new fire training facility
Summary
The Budget & Finance Committee approved a 12-month purchase option on 4.9 acres at 1236 Carroll Avenue to assemble with Port property for a new 7.5-acre Bayview fire training facility, endorsing a lower-risk $15,000-per-month option (up to $180,000) while negotiations continue over a ~$38.5M purchase price and Port terms.
The Budget & Finance Committee on May 19 approved a purchase-option agreement that would let the city hold 4.9 acres at 1236 Carroll Avenue off the market while it seeks to assemble adjacent Port property for a new fire training facility in the Bayview.
Director Draco Penick of the Department of Real Estate told the committee the option locks a purchase price of $38,500,000 for up to 12 months and requires monthly option payments of $15,000 that are not credited toward the purchase; the option payment cap is $180,000. The site would be combined with approximately 2.6 acres owned by the Port of San Francisco to create a roughly 7.5-acre parcel for a consolidated fire training campus.
Penick said the relocation is driven by planned development on Treasure Island and a five-year deadline to move training functions by 2026. He described the Prologis portion of the assemblage as fully negotiated and the Prologis purchase-and-sale agreement signed; the port parcel remains under negotiation and requires state approvals and an MOU. Escrow closing for the Prologis purchase was identified as anticipated in February 2022, assuming required approvals.
Supervisor Asha Safaei pressed staff on where acquisition funds would come from and whether the initial $1,500,000 referenced in staff materials is secured. Penick and Fire Department representatives said funding sources have not been finalized but that the mayor's office is sponsoring the underlying legislation and staff expect budget funding to be identified before the Board would be asked to approve a purchase. Fire officials said they would work with the Mayor's Budget Office to avoid using the Fire Department's operational budget for acquisition costs.
Penick and BLA staff told the committee the option preserves the city's ability to secure the Prologis parcel without exposing the city to a multi-million-dollar downside should the port or state approvals not be obtained. The Budget Analyst summarized the proposal as a $15,000-per-month option up to $180,000 and confirmed the $38,500,000 appraisal-supported purchase price; the BLA recommended approval.
The committee accepted a staff amendment reducing the option authorization in the resolution from $195,000 to $180,000 and voted unanimously to forward the amended item to the full Board with a positive recommendation.
Next steps: staff expect to return to the Board with the underlying purchase-and-sale agreement and additional details on port negotiations, funding sources and final terms for Board consideration.
