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Committee forwards UCSF Mission Bay block transfer and payment package after analysis of tax impacts
Summary
The committee advanced a consent resolution allowing transfer of Mission Bay Blocks 33–34 to UCSF with a one‑time payment package ($32.1M) that OCII and the analyst say, when combined with projected tax shifts from UCSF vacating downtown leases, offsets prior revenue estimates; the package includes funds for affordable housing and infrastructure.
OCII, OEWD and UCSF presented a memorandum of understanding and payment package for transfer of Mission Bay Blocks 33 and 34 to the University of California San Francisco. The proposed arrangement would require UCSF to make a one‑time payment of $32.1 million: $10.2 million committed to affordable housing acceleration and $21.9 million to infrastructure via the Mission Bay master developer. OCII and an independent economics consultant (ALH Economics) reviewed the fiscal impacts and reported that consolidation of scattered UCSF leaseholds into Mission Bay is likely to free up taxable, privately leased space elsewhere in the city; the analysis estimated a net present value property‑tax gain to taxing entities (city and others) in the range of several million dollars (ALH estimate ~ $16.2M NPV for taxing entities; OCII presented a $6.2M NPV figure tied to vacated leases), which OCII and the Analyst said offsets earlier shortfalls identified in the payment schedule.
UCSF representatives described workforce consolidation incentives, voluntary local‑hire goals to mirror city programs (UCSF staff described a local‑hire target consistent with City programs and confirmed use of community hiring and training programs) and commitments to transportation demand management and local construction hiring goals. Several supervisors cautioned that the financing relies on assumptions (UCSF vacating other leased space and replacement uses elsewhere in the city) and emphasized that the payment package should not substitute for other citywide development fees like transit impact development fees; the committee discussed transit fee history and the Mission Bay exemption window that shaped earlier agreements.
The Budget Analyst and Controller reviewed updated ALH Economics modeling and recommended approval based on the newly produced NPV analysis; the committee voted to forward the item to the full Board with the analyst’s recommendation. Several supervisors asked for further safeguards and clarity on local‑hire and transit impacts as the item moves to full Board consideration.
