Committee Backs Acquisition of 1101 Connecticut Street to Launch Potrero HOPE SF Phase

The Budget and Finance Committee on Feb. 10 recommended that the Board of Supervisors approve the city's acquisition of 1101 Connecticut Street from the San Francisco Unified School District for $1.8 million to support the Potrero HOPE SF redevelopment.

Faith Kirkpatrick, project manager at the Mayor's Office of Housing and Community Development, said the 25,000-square-foot vacant parcel is included in the Potrero HOPE SF master plan and combined EIR/EIS and will be combined with an adjacent 5,000-square-foot basketball court to create a 30,000-square-foot site known as Block X for the first phase of family housing. "Acquisition of 1101 Connecticut is a critical first step in the implementation of Potrero HOPE SF," she said, adding the parcel will allow construction without relocating existing onsite tenants because the parcel is vacant.

Kirkpatrick told supervisors an option to purchase for $1.8 million expires in March 2016. Budget Analyst Harvey Rose clarified for the record that the $1.8 million purchase price includes a prior $450,000 payment the city made under a separate option agreement, and noted the board had previously appropriated $1.8 million in MOHCD's FY2015-16 budget for the purchase.

Supervisors asked about appraisals and valuation. MOHCD said the $1.8 million figure represents a midpoint between two appraisals (approximately $1.6 million in 2009 and $2.1 million in 2013) and reflected the agencies' approach to highest-and-best-use valuation at the appraisal dates. Staff said environmental review and entitlements will be pursued to increase the site's development value and that construction was expected to begin following required planning approvals in the summer.

The committee voted to forward the acquisition authorization with a positive recommendation to the full board.

Next step: The resolution will be placed on the Board's Feb. 24 agenda for final action.