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Committee approves disposition of Transbay Block 1 land to Tishman Speyer affiliate with BMR protections
Summary
The committee approved forwarding a disposition agreement transferring OCII-owned Block 1 land to a Tishman Speyer affiliate for a 391-unit mixed-income ownership project with 40% affordable units (156 units) and negotiated protections including a $225,000 homeowner-association dues assistance fund for BMR owners.
The Land Use and Transportation Committee voted to forward to the full Board a resolution approving the disposition of OCII land in the southern third of the block bounded by Howard, Spear, Folsom and Main Streets (Assessor Block 3740, Lot 027) to Block 1 Property Holder LP, an affiliate of developer Tishman Speyer, for construction of a mixed‑income homeownership project.
Project staff said the approved development program calls for 391 units, with 40 percent (156 units) designated as affordable. The transcript stated 80 of the affordable units are in the tower and townhomes funded by the developer, and 76 are in the podium. OCII will provide a subsidy of $19,180,000 for the podium units. An appraisal analysis referenced in the presentation concluded OCII's parcel value at about $19,200,000 and that OCII would receive an additional $31,000,000 in consideration under the negotiated deal terms.
Project materials shown to the committee place the affordable units within the first 26 floors and the podium and commit to dispersing BMR units rather than concentrating them. To mitigate the risk that construction‑defect litigation could leave below‑market‑rate (BMR) owners exposed to disproportionate homeowner‑association costs, Supervisor Aaron Peskin proposed an amendment: the developer agreed to include a $225,000 homeowner association dues assistance fund that BMR owners may access for construction‑defect litigation costs; the project’s covenants, conditions and restrictions (CC&Rs) were amended to require the market‑rate HOA to pay construction‑defect litigation costs without differentiating between market‑rate and BMR units in settlements. The developer reviewed and agreed to these changes.
Labor and community speakers spoke in support of the disposition, citing the project’s potential to provide middle‑income homeownership, union jobs, neighborhood benefits and opportunities to keep families in their districts. Speakers included representatives from the Operating Engineers, Sheet Metal Workers Local 104, Carpenters Local 22, Firefighters, Electrical Workers Local 6 and community groups that work with youth and families.
The committee accepted the Peskin amendment without objection and voted to send the item as a committee report with recommendation for a full Board hearing on July 26. The committee record notes the OCII commission previously approved the owner participation and disposition agreement and schematic designs; this Board action is the final step in the City’s review process before the hearing.
Key financial elements, unit counts, subsidy amounts and the homeowner‑protection fund were stated in the presentation and accepted by the developer during committee discussion.
