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Committee advances city purchase of McDonald’s parcel for 100% affordable housing
Summary
The committee forwarded to the full Board a proposal to buy the McDonald’s property at 700–730 Stanyon/Stanion Street for $15.5 million to develop 100% affordable housing; staff said remediation risks are manageable and federal relocation requirements apply to the current occupant.
The Budget Committee advanced a proposal for the city to acquire the commercial parcel currently occupied by a McDonald’s at 700–730 Stanyon/Stanion Street for $15,500,000, with staff and the mayor’s office describing the acquisition as an opportunity to site 100 percent affordable housing in the Upper Haight.
Andrea Bress, representing Mayor London Breed’s office, framed the acquisition as a community-driven opportunity. John Uptight, the city’s real-estate director, told the committee the city conducted due diligence including geotechnical review and remediation analysis and did not identify "showstoppers" in initial reports. Uptight said the property includes prior dry-cleaning and gas-station uses, which are being addressed in remediation planning, and noted escrow and demolition milestones should conclude in the spring and summer (relocation notice and demolition are contract conditions).
Budget Legislative Analyst materials before the committee show a planning budget of $16,100,000 that includes the purchase price plus closing costs, potential soil remediation, relocation benefits under federal law and demolition. BLA staff told the committee funding sources presented by MOHCD included $12 million in CDBG funds and $4 million from the inclusionary housing fund and that additional closing costs could be covered by inclusionary housing funds if needed.
Why it matters: The acquisition would give the city a roughly three-quarter acre site for a 100 percent affordable housing development adjacent to neighborhood assets and transit, with relocation benefits triggered because federal funds are part of the purchase. Committee members asked why the price was below appraised ranges; staff said the timing and seller’s willingness to dispose of the asset produced a favorable purchase price.
Next steps: The committee forwarded the purchase to the full Board with a positive recommendation; if approved, staff said they will complete escrow instructions, issue the 90-day relocation notice to the current operator and proceed with demolition per the purchase conditions.
