Budget committee advances sale of War Memorial transferable development rights

The Budget and Finance Committee on Sept. 18 advanced legislation authorizing the city’s director of real estate to sell the second 550,000‑square‑foot tranche of transferable development rights (TDRs) from the War Memorial Complex and forward the measure to the full Board of Supervisors with a positive recommendation.

Andrico Penek, director of the Department of Real Estate, told the committee the Board originally authorized the sale of 1,100,000 square feet of TDRs in 2014, divided into two tranches. He said the first tranche has largely closed and reported gross proceeds of about $13,700,000 from earlier sales. Penek described a disciplined pricing schedule that starts at a $25 per‑square‑foot floor and would increase over time to incentivize early purchases and provide pricing certainty for developers.

Budget Analyst Sevin Campbell recommended an amendment to set a minimum sales price of $25 per square foot and asked for an annual written report back on TDR sales. Campbell also noted a current estimated market price near $30 per square foot and projected gross proceeds of roughly $16.5 million if the full 550,000 square feet were sold at that rate.

Under the resolution, net proceeds (gross sales less taxes, escrow, commissions and transaction costs) would be used exclusively for rehabilitation and restoration of the War Memorial Complex and to pay related debt service. The committee adopted the BLA recommendation and voted to forward the item to the full board “with a positive recommendation,” taking the motion without recorded objection.

The committee did not take final action on sale terms or timing beyond authorizing the director to proceed under the conditions set by the resolution and the BLA amendment. The measure will next be considered by the full Board of Supervisors.