Imperium

San Francisco County

Meeting on Academy of Art Settlement, Affordable Housing Projects, and Pier 70 Tax Districts

The San Francisco Board of Supervisors convened on January 14, 2020, addressing a wide array of issues including housing, finance, and city planning. A major highlight was the approval of a settlement with the Academy of Art University involving significant payments for affordable housing. The board approved resolutions for numerous affordable housing projects, including bond issuances and loan agreements for developments on Webster Street, Turk Street, and Avenue of the Palms. They also considered and ultimately continued legislation related to the formation of special tax districts for the Pier 70 development. The Board of Supervisors also formally adopted a settlement with the Academy of Art University for millions due to code violations. The mayor addressed homelessness and discussed potential solutions, and legislation was introduced regarding municipal building electrification and regulations for intermediate length residential occupancies. Finally, public hearings were scheduled regarding law enforcement staffing numbers and potential impacts of Uber Eats, Postmates, DoorDash, and Grubhub.

Search for Specific Moments

Committee of the Whole

Approval of November 2019 Meeting Minutes

The Board approved the Special Board Meeting Minutes from November 21, 2019, and the Special Meeting Minutes from the Budget and Finance Committee Meeting on the same date. Supervisor Mandelman, seconded by Supervisor Preston, moved for approval. The motion carried with all 11 supervisors present voting in favor, following general public comment.

Remarks

Mayor's Address on Homelessness Issues

Mayor London Breed addressed the Board of Supervisors concerning homelessness. She discussed navigation centers, services offered, options for those refusing services, the critical need for housing, obstructive policies, and addressing the issue during a budget deficit. No questions were submitted by Supervisors representing Districts 9, 10, and 11. The matter was filed after public comment, with no further action taken.

Unfinished Business

Settlement of Lawsuit with Academy of Art University

The Board finally passed Ordinance No. 004-20, authorizing the settlement of a lawsuit against the Stephens Institute, dba Academy of Art University. The settlement involves the Academy paying approximately $58 million, including $37.6 million for affordable housing public benefits and $8.2 million to the City's Small Sites Fund. The Academy also agreed to comply with city codes, relocate existing uses where necessary, and cooperate with the City in planning for future growth.

Unfinished Business

Approval of Development Agreement with Academy of Art University

The Board finally passed Ordinance No. 005-20, approving a Development Agreement between the City and the Stephens Institute (Academy of Art University). The agreement provides for public benefits, including an "affordable housing payment" of $37.6 million and $8.2 million to the City's Small Sites Fund. The ordinance also amends the Planning Code for Large Noncontiguous Post-Secondary Educational Institutions and waives conflicting provisions in the Planning and Administrative Codes.

Unfinished Business

Amendment to Sidewalk Width Along Pierce Street

The Board finally passed Ordinance No. 006-20, amending Ordinance No. 1061 to reduce the sidewalk width on the westerly side of Pierce Street between O'Farrell and Ellis Streets, in front of the Maxine Hall Health Center at 1301 Pierce Street. The Planning Department's determination under CEQA was adopted, along with findings of consistency with the General Plan.

New Business

Electrification of Municipal Facilities

Supervisors Stefani, Mandelman, Peskin, Haney, Ronen, Safai, Fewer, and Mar sponsored an ordinance amending the Environment Code to require new construction and major renovations of municipal buildings to exclude natural gas and use exclusively all-electric energy sources. Supervisors Preston and Mar requested to be added as co-sponsors. It was passed on first reading.

New Business

Approval of Lease Agreement for Teatro ZinZanni

The Board adopted Resolution No. 005-20, approving a 50-year lease with TZK Broadway, LLC for the mixed-use hotel, entertainment venue (Teatro ZinZanni), and public open space development at Seawall Lots 323 and 324. The annual minimum base rent is set at $1,000,000, commencing after Board approval. Findings of consistency with the General Plan were adopted, and the Port Executive Director was authorized to execute necessary documents.

New Business

Contract with CDM Smith, Inc. for Ozonation Facility

The Board adopted Resolution No. 013-20, authorizing the General Manager of the San Francisco Public Utilities Commission to execute a contract with CDM Smith, Inc. for planning, design, and engineering support during construction of a proposed Sunol Valley Water Treatment Plant Ozonation project, for an amount not to exceed $15,000,000 over six years (March 2020 through March 2026).

New Business

Multifamily Housing Revenue Bonds for Webster Street Project

The Board adopted Resolution No. 006-20, declaring the intent to reimburse certain expenditures from proceeds of future bonded indebtedness and authorizing the Director of the Mayor's Office of Housing and Community Development to apply to the California Debt Limit Allocation Committee (CDLAC) for residential mortgage revenue bonds not exceeding $24,000,000 for the 1223 Webster Street project (Fillmore Marketplace).

New Business

Multifamily Housing Revenue Note for Turk Street Project

The Board adopted Resolution No. 016-20, authorizing the execution and delivery of a multifamily housing revenue note not exceeding $53,000,000 for financing the construction of a 108-unit multifamily rental housing project at 555 Larkin/500-520 Turk. Approvals were granted for the form of funding loan agreement, project loan agreement, regulatory agreement, and declaration of restrictive covenants.

New Business

Acquisition of Real Property for Turk Street Affordable Housing

The Board adopted Resolution No. 007-20, approving the acquisition of real property at 500-520 Turk Street/555 Larkin Street from Turk 500 Associates, L.P. for $0 in exchange for a $12,250,000 credit. The property will be used for constructing 100% affordable housing. An Amended and Restated Loan Agreement not exceeding $32,400,000 was approved, along with a Ground Lease back to the Developer.

New Business

Multifamily Housing Revenue Bonds for Avenue of the Palms Project

The Board adopted Resolution No. 028-20, authorizing the issuance and delivery of multifamily housing revenue bonds not exceeding $44,615,500 for financing the acquisition, development, construction, and equipping of a 105-unit affordable multifamily rental housing project at 401 Avenue of the Palms (Maceo May Apartments) on Treasure Island.

New Business

Loan Agreement for Avenue of the Palms Affordable Housing

The Board adopted Resolution No. 029-20, approving a Loan Agreement with Maceo May Apts, L.P. not exceeding $24,255,000 for financing the construction of a 100% affordable, 105-unit multifamily rental housing development at 401 Avenue of the Palms for low and moderate income veteran households.

New Business

Grant Applications for Sunnydale and Potrero HOPE SF Projects

The Board adopted Resolutions No. 017-20 through No. 023-20, authorizing the Mayor's Office of Housing and Community Development to execute grant applications under the Department of Housing and Community Development Affordable Housing and Sustainable Communities (AHSC) Program and the Infill Infrastructure (IIG) Program as a joint applicant with Sunnydale Block 3A Housing Partners, L.P., Sunnydale Block 3B Housing Partners, L.P., and Potrero Housing Associates II, L.P., for various affordable housing projects within the Sunnydale and Potrero HOPE SF Development Agreements. The city will assume any joint and several liability for the projects required by the terms of any grant awarded under AHSC program, and adopt findings under CEQA, the CEQA guidelines, and Administrative Code, Chapter 31.

New Business

Grant Applications for Affordable Housing Projects

The board adopted Resolutions No. 024-20 and 025-20, authorizing the Mayor's Office of Housing and Community Development, on behalf of the City and County of San Francisco, to execute a grant application under the Department of Housing and Community Development Affordable Housing and Sustainable Communities (“AHSC”) Program as a joint applicant with the Balboa Park Housing Partners, L.P. for the 100% affordable housing project at 2340 San Jose Avenue, and authorizing the City to assume any joint and several liability for completion of the projects required by the terms of any grant awarded under the AHSC Program, along with adopting findings under the California Environmental Quality Act ("CEQA"), the CEQA Guidelines, and Administrative Code, Chapter 31, as well as execute a grant application under the Department of Housing and Community Development Infill Infrastructure (“IIG”) Program as a joint applicant with Balboa Park Housing Partners, L.P., a California limited partnership, for the 100% affordable housing project at 2340 San Jose Avenue; authorizing the City to assume any joint and several liability for completion of the projects required by the terms of any grant awarded under the IIG Program; and adopting findings under the California Environmental Quality Act ("CEQA"), the CEQA Guidelines, and Administrative Code, Chapter 31.

New Business

Application for CalHome Program Grant

The Board adopted Resolution No. 026-20, authorizing the Mayor's Office of Housing and Community Development to submit a grant application to the California State Department of Housing and Community Development for $5,000,000 under the CalHome Program.

New Business

Application for Treasure Island Infrastructure Grant

The Board adopted Resolution No. 027-20, authorizing the Treasure Island Development Authority to execute a grant application under the Department of Housing and Community Development Infill Infrastructure Program for qualifying infrastructure projects within Treasure Island Major Subphase 1. The City may assume joint and several liability for completion of the projects.

New Business

Application to Amend Priority Designations

The Board adopted Resolution No. 008-20, authorizing the Planning Department to apply to confirm existing and create new and revised designations of Priority Development Areas, Priority Conservation Areas, and Priority Production Areas by the Association of Bay Area Governments and the Metropolitan Transportation Commission, as part of the Plan Bay Area 2050 update.

Remarks

Recognition of Commendations

The Board suspended its rules to grant privilege of the floor for commendations. Supervisor Peskin presented a Certificate of Honor to Vic Lee, a veteran Bay Area journalist, on his retirement. Supervisor Mandelman presented a Certificate of Honor to Tom DeCaigny, Director of Cultural Affairs for his accomplishments. Supervisor Ronen gave a Certificate of Honor to Buck Bagot, co-founder of the Bernal Heights Neighborhood Center. Supervisor Preston commended Club Waziema.

Committee of the Whole

Hearing on Special Tax District No. 2019-1 (Pier 70 Condominiums)

The Board sat as a Committee of the Whole to hold a public hearing regarding legislation to form Special Tax District No. 2019-1 (Pier 70 Condominiums). Wyatt Donnelly-Landolt (Port of San Francisco) provided an overview. Francisco Da Costa spoke on concerns. The Committee adjourned, and the Board reconvened. Resolution No. 009-20, the resolution of formation, was ADOPTED. Resolution No. 010-20, determining necessity to incur bonded indebtedness, was ADOPTED. Resolution No. 014-20, calling a special election, was ADOPTED. Resolution No. 191164 and No. 191165 and Ordinance No. 191166 were CONTINUED to the January 28, 2020 meeting.

Committee of the Whole

Hearing on Special Tax District No. 2019-2 (Pier 70 Leased Properties)

The Board convened as a Committee of the Whole to discuss the formation of Special Tax District No. 2019-2 (Pier 70 Leased Properties). Wyatt Donnelly-Landolt from the Port of San Francisco provided an overview and addressed questions, and Francisco Da Costa shared concerns. Resolution No. 011-20 (formation of the district), Resolution No. 012-20 (necessity to incur bonded indebtedness), and Resolution No. 015-20 (calling a special election) were ADOPTED. Resolution No. 191170 and No. 191171 and Ordinance No. 191172 were CONTINUED to the January 28, 2020 meeting.

Recommendations

Establishment of Named Neighborhood Commercial Districts

Supervisor Ronen was excused from voting due to a conflict of interest. The Board PASSED ON FIRST READING an ordinance to establish twelve new named Neighborhood Commercial Districts, and amending the zoning map to include the new districts.

Recommendations

Resolution of Intent to Vacate Streets for Teatro ZinZanni Project

The Board ADOPTED Resolution No. 001-20, declaring the intention to vacate portions of Vallejo Street and Davis Street for the Teatro ZinZanni project, setting a public hearing for February 11, 2020.

Public Testimony

Public Comment on Various Issues

Members of the public commented on various issues, including neighborhood commercial districts, Department of Public Health staffing, religious and political views, Muni bus safety, public participation, homeless services, affordable housing, and development projects.

Remarks

Closed Session Regarding Litigation with PG&E

The Board recessed to closed session to discuss litigation with Pacific Gas and Electric Company. No action was taken during the closed session, and the hearing was filed. The Board elected not to disclose its closed session deliberations. Supervisor Ronen was absent.

Consent Agenda

Issuance of Revenue Bonds for Acquisition of PG&E Assets

Resolution No. 030-20, conditionally authorizing the Public Utilities Commission to issue Power Enterprise Revenue Bonds not exceeding $3,065,395,000 to finance the acquisition of PG&E electric distribution and transmission assets, was ADOPTED.

Consent Agenda

Resolution Urging Congress to Limit Military Actions in Iran

Resolution No. 031-20, urging the United States Congress to vote on a War Powers Resolution limiting President Donald J. Trump's military actions in Iran, was ADOPTED.

Consent Agenda

Hearing on law enforcement staffing recommendations scheduled

Motion No. M20-004 was approved directing the Clerk of the Board of Supervisors to schedule a Committee of the Whole hearing on February 25, 2020, at 3:00 p.m., to review recommendations regarding the number of law enforcement officers needed.

Legislation Introduced

Ordinance Appropriating Refunding General Obligation Bond Proceeds

An ordinance was introduced to appropriate up to $255,000,000 from the issuance of Refunding General Obligation Bonds for FY2019-2020, assigned to the Budget and Finance Committee.

Legislation Introduced

Ordinance on Potrero Power Station Special Use District

An ordinance was introduced to establish the Potrero Power Station Special Use District, and was assigned to the Land Use and Transportation Committee.

Legislation Introduced

Ordinance Approving Potrero Power Station Development Agreement

An ordinance was introduced approving a Development Agreement with California Barrel Company LLC for the Potrero Power Station Mixed-Use Project, assigned to the Land Use and Transportation Committee.

Legislation Introduced

Ordinance Amending Planning Code on Residential Occupancy

An ordinance was introduced amending the Planning Code to create the Intermediate Length Occupancy residential use characteristic, substituted and assigned to the Land Use and Transportation Committee.

Legislation Introduced

Ordinance Regarding Affordable Housing and Educator Housing Streamlining

An ordinance was introduced amending the Planning Code regarding 100% Affordable Housing and Educator Housing Streamlining, substituted and assigned to the Land Use and Transportation Committee.

Legislation Introduced

Resolution Regarding Multifamily Housing Revenue Bonds for Mason Street

A resolution was introduced regarding multifamily housing revenue bonds for 55 Mason Street, received and assigned to the Budget and Finance Committee.

Legislation Introduced

Resolution Regarding Acquisition of Property on Market Street

A resolution was introduced regarding the acquisition of property on Market Street, received and assigned to the Budget and Finance Committee.

Legislation Introduced

Resolution Regarding Lease of Property on Post Street

A resolution was introduced regarding the lease of property on Post Street, received and assigned to the Budget and Finance Committee.

Legislation Introduced

Resolution Regarding Lease of Property on Gough Street

A resolution was introduced regarding the lease of property on Gough Street, received and assigned to the Budget and Finance Committee.

Legislation Introduced

Resolution Regarding Ground Lease Amendment on Eddy and Turk Streets

A resolution was introduced regarding a ground lease amendment on Eddy and Turk Streets, received and assigned to the Budget and Finance Committee.

Legislation Introduced

Resolution Regarding Grant Acceptance for Market Street Project

A resolution was introduced regarding a grant acceptance for the Better Market Street Phase 1 project, received and assigned to the Budget and Finance Committee.

Legislation Introduced

Resolution Supporting California Ballot Measure

A resolution was introduced supporting the Schools and Local Communities Funding Act of 2020, referred for adoption without committee reference.

Legislation Introduced

Request for Hearing on School District's Plan for New Locations

A request for a hearing was introduced regarding the San Francisco Unified School District's plan for new locations, received and assigned to the Joint City, School District, and City College Select Committee.

Legislation Introduced

Request for Hearing on Economic Costs of Alcohol Abuse

A request for a hearing was introduced regarding the economic and administrative costs related to alcohol abuse, received and assigned to the Public Safety and Neighborhood Services Committee.

Legislation Introduced

Request for Hearing on Effects of On-Demand Delivery

A request for a hearing was introduced to discuss the effects of on-demand delivery companies on small businesses, received and assigned to the Public Safety and Neighborhood Services Committee.

Legislation Introduced

Request for Hearing on Street Vacation for Teatro ZinZanni Project

A hearing was scheduled for the Board of Supervisors, sitting as a Committee of the Whole, on February 11, 2020, to consider the proposed ordinance ordering the vacation of streets for the Teatro ZinZanni project, received and assigned to Board of Supervisors.

Legislation Introduced

Request for Hearing on Board of Supervisors Budget

A hearing was requested to consider the annual review and adoption of the Proposed Draft Budgets for FYs 2020-2021 and 2021-2022 for the Board of Supervisors/Office of the Clerk of the Board; and requesting the Office of the Clerk of the Board to report, received and assigned to Budget and Finance Committee.