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Supervisors OK Drew School refinancing with added clause that bond proceeds won't fund demolition
Summary
The committee reviewed a resolution to approve tax-exempt bonds for the Drew School to refinance debt; a public commenter alleged proceeds could fund demolition of residential units, and the committee added a whereas clause clarifying proceeds will not finance demolition.
The committee considered a resolution authorizing up to $11 million in tax-exempt bonds through the California Statewide Communities Development Authority to refinance existing Drew School debt. Anthony Ababan from the Mayor’s Office of Public Finance said refinancing at a lower interest rate is expected to yield about $1.2 million in net present value savings.
During public comment, tenant and community activist Doug Loringer said he learned the school planned to demolish an 1891 building at 1831–1835 Broderick Street and asked whether bond proceeds might finance demolition that would remove rental units from the market. Linda Riff, the Drew School’s finance director, responded: “No, that's not true. This is a completely separate issue. It is a straight refinance of existing debt. No funds from this refinance will be used for any future capital project.” She said the savings would primarily support financial aid and a reserve for emergencies.
To address the concern, the committee unanimously added a whereas clause to the resolution stating that none of the bond proceeds will finance demolition of residential units in San Francisco, and moved the amended item forward with the committee’s recommendation.
