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DGS tells committee Hillcrest DMV isn’t an active project; Fell Street DMV would require options, leasing costs
Summary
The Department of General Services told the subcommittee that the Hillcrest DMV site in San Diego is not a current capital project; DGS described logistical challenges with an integrated DMV‑plus‑housing approach at San Francisco’s Fell Street site and said a smaller leased footprint with a modest one‑time request could be an interim solution.
The Department of General Services told the Assembly Budget Subcommittee 5 that the Hillcrest DMV site in San Diego is not currently an active capital project and that earlier efforts to co‑locate a DMV office with affordable housing (Fell Street, San Francisco) ran into logistical and financing hurdles.
“Hillcrest is not currently technically a project,” Jason Kenny, chief deputy director at DGS, said, and he explained that the DMV’s needs and the motor vehicle fund’s diminished capacity complicated an on‑site integrated solution.
Why it matters: Lawmakers pressed DGS on whether state property could be used more effectively for housing in high‑transit, high‑need urban locations. Several members argued Hillcrest and other state parcels are major opportunities for co‑location of housing and services; DGS said it continues to explore options while balancing DMV operational needs and financing constraints.
Fell Street lessons: Kenny summarized a prior San Francisco proposal in which a developer planned either integrated or standalone DMV space. DGS concluded an integrated podium design required a large garage and made the DMV portion far more expensive than anticipated. As an alternative, DGS said the administration is pursuing a budget change proposal (BCP) to lease reduced DMV space: “It’s a pretty modest ask of $4,600,000 in one‑time cost, $1,700,000 in ongoing costs,” he said.
Members pushed on demolition and abatement: Committee members noted ongoing demolition/abatement work, rising remediation costs, and expressed urgency given adjacent development and parks opening near Hillcrest. DGS reported some bid savings on demolition and said it is seeking a definitive number to inform funding discussions.
Adaptive reuse and constraints: DGS director Anna Lasso warned adaptive reuse is feasible for some buildings but not all; she cited floor‑plate depth, façade and light penetration as important constraints for converting state buildings to housing. Both officials said DGS will continue coordinating with local partners, developers and the DMV to find workable solutions.
What’s next: DGS expects to continue refining cost estimates and to return with more concrete recommendations as BCP decisions and developer negotiations proceed.
