CITIZENS ADVISORY COMMITTEE
OF THE SURPLUS CITY PROPERTY PROGRAM
CITY AND COUNTY OF SAN FRANCISCO
___________________________________________________________
Meeting Minutes
for
Monday, July 18, 2005 at 4:00 PM
city hall
1 dr. carlton b. goodlett place, room 408
Present: Chair richard lee, Vice Chair James Reilly, Mr. Bruce Engle, Ms. Jill Fox, Ms. lori bammerger (sitting in for Mr. Matthew O. Franklin), Sister bernie galvin, Ms. Ana B. Gutierrez
Absent: Ms. Jamie Armstrong, Mr. Jay bradshaw, Mr. Scott clark, Mr. tomas lee, Mr. leroy moore, Jr. and Mr. Ben Rosenfield
Staff: Mr. Joel Lipski, Ms. Joan McNamara and Ms. Lynn Hua
Chair Lee called the meeting to order at 4:10 PM. Roll call was conducted and a quorum was recognized, with six members absent.
2. Approval of Minutes of Last Meeting
A motion to approve the May 16, 2005 meeting minutes was made by Vice-chair Reilly and seconded by Mr. Engle. The committee unanimously approved the motion.
3. Director’s Report
Mr. Lipski reported that the Department of Real Estate has entered into a contract with an appraisal firm for the 150 Otis Street site. If the appraisal is completed within the next 30 days, staff will report on the result at the next meeting.
4. Consideration of Main Menu:
(a) Corbett/Market (Block 2659/Lot 059)
Ms. Joan McNamara, Program Manager, presented information pertaining to the development potential of the site for priority uses under the Surplus City Property Ordinance. The site is approximately 12,700 sq. ft. and irregular in shape with 5 sides. The Mayor’s Office of Housing hired an architectural firm, Asian Neighborhood Design (AND), to draw up conceptual plans for the site. The total estimated development cost would be approximately $4.0 million or $448 per sq. ft., based on a 17-unit senior housing development. Ms. McNamara explained that the estimated development cost is extremely high compare to other city projects. The average development cost for projects in the Mayor’s Office of Housing pipeline is $402 per sq. ft. Ms. McNamara pointed out that the city would need to contribute $2.3 million in gap financing to the development, which would be approximately 58% of the total development cost. Normally, the city’s contribution to a project is no higher than 50%. The construction cost of $298 per sq. ft. is expensive compare to other pipeline projects. Based upon the high development cost and the large percentage of local subsidy required for the project, staff recommended that the site be sold for at least the appraised value and the revenue generated from the sale be used to fund existing pipeline projects that meet the priorities of the Surplus Property Ordinance.
Henry Wong, Principal Architect for Asian Neighborhood Design, explained the overall design concept for the site. Since the site is zoned P (public use), it would need to be rezoned to RH-2 to permit 2 dwelling units per lot as of right or one dwelling per 1,500 sq. ft. A conditional use permit would need to be obtained to reduce the required rear yard setback of 45% to 25%. The studio units are approximately 350 sq. ft. each.
Mr. Jerry Romani, of the Department of Real Estate, reported that an appraisal was done on the property; of which, an estimated appraised value of $2.2 million was obtained.
Vice-chair Reilly inquired as to why the investor equity is limited to $1.6 million. Ms. McNamara responded that the investor equity limits are set by HUD annually.
Mr. Engle inquired if there are other available funding sources for the pipeline projects beside the proceeds from the sale of the site. Mr. Lipski responded that the city usually receive $12 to 14 million in capital funds for development each year from the federal government and approximately $5 million from local hotel tax funds. These funds would be used for the pipeline projects if there were no other available financing.
Ms. Gutierrez inquired as to how the funds from the sale proceeds be managed. Ms. Susan Cleveland-Knowles, Deputy City Attorney, responded that generally the advisory committee would make recommendations to the Board of Supervisors on how the proceeds from the sale of the surplus properties be used, but it would have to go through the annual budgeting process and be approved by the Board of Supervisors.
Public Comment
Mr. Rick Galbreath commented that the community members are committed to preserving the space as a neighborhood garden. He discussed the possibility of using Prop C funds from the Department of Recreation and Park for the site. Mr. Galbreath added that the existing utilities easement on the site would increase the development cost and decrease the value of the site.
Mr. Gary Weiss, President of the Corbett Heights Neighbors, informed that a survey was conducted in the neighborhood and there was unanimous support for the site to remain open space. All the vegetations on the site were maintained by the residents in the neighborhood until the site was fenced in and access denial. Mr. Weiss commented that the site is the only remaining green space within a third of a mile and developing it would dramatically change the neighborhood.
Mr. John Koelsch commented that the population density in the neighborhood is quite high and any further development would seriously worsen the situation.
Ms. Janice Low commented that traffic is a large issue on Corbett Street and support leaving the site as open space.
Ms. Joy Berry reiterated the traffic problem on Corbett Street and commented that the problem has gotten worse over the years.
Ms. Paula Macchella commented that developing the site would greatly impact the quality of life in the neighborhood and would like to see the area remain as open space.
Ms. Miranda Coffey commented that there used to be a beautiful hillside across the street from the site before the construction of 5 new units began. She did not want to see the same thing happen to the Corbett site.
Mr. Mark Ryser expressed that he would like to see the site be used as a community park. He felt that the site is inadequate for senior and disabled housing since there are no nearby services.
Mr. Richard Magary, from the Buena Vista Neighborhood Association, wanted to clarify that the neighborhood is not in opposition to affordable housing development; but instead, is concerned of the quality of life in the city. He urged the committee to move the agenda and to get more sites into the program that are appropriate for housing development. He asked the committee to reach out and work with the neighborhoods.
Public Comment Closed
Chair Lee inquired whether the city is obligated to sell the property if the bids were less than the appraised value of $2.2 million. Mr. Jerry Romani responded that the Administrative Code of the City and County of San Francisco required the properties to be sold at 100% fair market value. If the bids for the property were less than the appraised value, then the city could not sell it and would most likely obtain another appraisal.
Sister Galvin commented that she is not ready to make a decision and would like to continue the item to a future meeting for further discussion.
Ms. Fox commented that she is concerned of the livability of the entire city. She strongly opposed the idea of building 17 units on the site because it would be out of scale for the neighborhood and not financial feasible.
Vice-chair Reilly made a motion to approve staff’s recommendation of selling the Corbett and Market site for the appraised value of $2.2 million or greater and to use the proceeds from the sale for the development of housing for homeless. The motion was seconded by Mr. Engle and passed by the following votes: 5 Ayes and 2 Nays.
5. Committee Members’ Questions and Matters
None
6. Public Comment
Mr. John Melone commented that in a Housing Justice Summit, the Senior Housing Action Collaborative came up with the following needs:
- Seniors need 3,500 units of housing at 10% AMI
- Maintain and greatly improve the Hotel Tax funding for seniors and disabled
- Lower the inclusionary zoning affordability requirements to 10% of AMI for all low-income and/or fixed income for people earning less than $10,000 annually
- Turn 150 Otis St. into senior temporary shelter beds, transitional and permanent housing.
Mr. Mel Beetle commented that there is a great need for seniors housing and would like to have transitional and permanent housing at 150 Otis Street.
Public Comment Closed
7. The meeting was adjourned at 5:55 PM.