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Committee reviews sale strategy for 30 Van Ness and Goodwill site plan; supervisors press for Prop K consistency
Summary
Real‑estate staff described plans to market 30 Van Ness (a 180,000 sq ft office building) and lease back city operations temporarily while pursuing a consolidated permit center at the Goodwill site; supervisors and housing advocates urged using the surplus property ordinance and Proposition K goals to maximize affordable housing outcomes.
John Updike, director of the Department of Real Estate, briefed the Land Use and Transportation Committee on the city's disposition strategy for 30 Van Ness Avenue, a roughly 180,000‑square‑foot office building on the northeast corner of Market and Van Ness. Updike said the building is currently occupied by city departments and is being marketed with an intent to negotiate a sale and lease‑back that would give the city time to identify a destination site for relocated offices while realizing proceeds to pay down outstanding debt on the property.
Updike identified financial and programmatic goals: retire the building’s existing certificate of participation debt (approximately $30 million), secure an interim leaseback at below‑market rent for a minimum term, and use sale proceeds to leverage a long‑term consolidated office and permitting strategy (including a proposed 'one‑stop' permit center at the Goodwill (1500 Mission) site). He said the market is strong and that the city hopes to use competitive interest to secure robust affordability in redevelopment.
Committee members and public commenters pressed for clarity on compliance with the surplus property ordinance and Proposition K (a November 2014 ballot measure setting a 33% affordability target for certain projects). Housing advocates and community organizations urged the board to apply surplus‑property priorities (first use for very‑low‑income housing and homeless services) and asked the administration to bring the Citizens Advisory Committee (CAC) and a suppler audit into the process. Deputy City Attorney John Gibner said the property's status and any surplus determination are ultimately matters for the board and that certain dispositions may be treated differently for policy reasons.
Mr. Updike said solicitations were underway and that a best‑and‑final proposer process is expected to return proposals for board consideration in late July; he noted remaining CEQA and entitlement steps for the Goodwill project and said staff will return with concrete options for balancing revenue and affordability. Supervisor David Campos asked that the committee continue scrutiny of surplus‑property implementation. Following discussion Supervisor Kim moved to file the item; the committee filed the hearing record and adjourned.
