Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Mission Rock Bonds topic
No spam. Unsubscribe anytime.
Committee backs up to $64.9M additional Mission Rock CFD bonds, staff flags market and concentration risks
Summary
The committee voted to forward two resolutions authorizing up to $64.9 million in additional CFD special-tax bond capacity and related pledge documents for Mission Rock phase 1 financing; port staff cited an appraisal increase and described risk mitigations but supervisors pressed on office market demand and foreclosure contingencies.
The Budget & Finance Committee on May 5 recommended that the full Board approve two related resolutions authorizing issuance of up to $64.9 million in additional Community Facilities District (CFD) special-tax bonds for Mission Rock and approving related pledge/IFD documents. Port project manager Raven Anderson and Office of Public Finance director Anna Vandegna presented the request, explained the financing plan, and said a Feb. 1, 2021 appraisal valued the CFD leasehold at $324.9 million, enabling a larger bond capacity subject to city policy limits.
Staff described Phase 1 at Mission Rock as including roughly 537 homes (199 below-market-rate units in early vertical work), about 550,000 square feet of office, 65,000 square feet of retail and 5.5 acres of parks. The presentation said the CFD and IFD financing replace an 18% developer return with lower-cost bonded debt and that the additional $64.9 million would improve project economics and preserve port land values.
Budget Analyst Office staff and port representatives acknowledged concentration and development risks: the bonds are limited obligations secured by special taxes and the CFD’s appraised value (city policy targets a 3:1 value-to-lien ratio), and issuance will be restricted to qualified institutional buyers. Supervisor Safaie asked detailed questions about worst-case scenarios if the developer failed to pay and about current office-market rent projections. Port staff said the tax is based on square footage and remains due even if rents fall, and that one Phase 1 building is already preleased to a credit tenant (the presentation cited an executed lease with Visa for one parcel).
There was no public comment. The committee recorded unanimous roll-call votes and moved both items to the full Board with positive recommendations.
