Board Approves Authorization to Sell TDRs with Reauthorization Trigger and Historic-preservation Talks Underway

The Budget and Finance Committee approved a resolution authorizing the director of property to sell up to 1,100,000 gross square feet of city-owned Transferable Development Rights (TDR), and agreed to amendments and follow-up steps to address historic-preservation concerns and oversight.

John Updike, Director of Real Estate, said staff met with San Francisco Heritage and Planning Department representatives to discuss three requests from the advocacy group: clearer description of the Planning Department’s regulatory role, improved coordination and reporting, and historic-preservation protections tied to TDR proceeds. Updike said planning’s regulatory role is described in code and that the Capital Planning Committee — which includes the director of planning as a voting member — will help coordinate review.

At the committee’s direction and per the budget analyst’s recommendation, the resolution was amended to require that the director submit enabling legislation to reauthorize TDR sales immediately upon reaching sales of 550,000 gross square feet; that reauthorization step will trigger Board review of policy issues and allow review of minimum pricing. San Francisco Heritage and its representative, Mike Bueller, urged that proceeds from TDR sales be used for on-site historic-resource improvements and for Historic Preservation Commission review under the Secretary of the Interior’s standards. Deputy City Attorney John Givner said a citywide ordinance would be the appropriate vehicle to set future, citywide criteria; the committee agreed to work with SF Heritage and staff on draft language for future consideration.

Updike and other staff noted the War Memorial/Veterans Building project remains the immediate intended use for revenues, that a first tranche of 550,000 sq ft would address a significant part of a reported funding gap and that any excess proceeds could reduce debt-service needs in a future certificate of participation. The committee approved the resolution as amended and advanced it to the Board with the new reauthorization milestone included.

The committee’s action pairs oversight (reporting and a 550,000-sq-ft reauthorization trigger) with a commitment to continue working with historic-preservation stakeholders to craft further safeguards or ordinance language.