Committee presses city on $2.5M sale of Parcel F to Boys & Girls Club; budget analyst raises valuation concerns

The committee examined a proposed sale of Parcel F (the northeast corner of Fulton and Gough) to the Boys and Girls Clubs of San Francisco for $2.5 million, a transaction the Real Estate Division presented as a below‑market sale justified by community benefits.

John Updike (Acting Director, Real Estate) and OEWD staff described the planned clubhouse: a new facility with a gym, pool, learning and teen space expected to serve 200–250 youth per day in summer and roughly 3,000 annually. The administrative package included a proposed city share of future residential proceeds (50% of net sale or lease proceeds if residential units are developed) and three sponsor amendments: extend the use restriction from 30 to 40 years; include a buyback/right‑of‑reverter after 10 years at Boys & Girls Club acquisition cost if the organization defaults; and provide a 40% city participation in sale proceeds after the 40‑year restriction expires.

Budget Analyst Mr. Rose said the Real Estate Division provided no quantification of community benefit and did not conduct a competitive solicitation; he reported the sale price is roughly 70.3% below his estimate of market value ($8,415,000) and therefore could not recommend approval as presented. Committee members asked for written calculations and for the departments to sharpen the city's financial protections. The committee continued the item to Jan. 4 to allow the department and the budget analyst to reconcile valuation, revenue‑share mechanics and performance benchmarks.