San Francisco approves $64.9M bond issuance for Mission Rock development project

San Francisco County officials are moving forward with a significant financial initiative aimed at bolstering the Mission Rock development project. During a recent government meeting, the committee approved a resolution authorizing the issuance and sale of development special tax bonds, not to exceed $64.9 million, to support the Mission Rock Community Facilities District.

Raven Anderson, a project manager with the Port of San Francisco, presented the request, highlighting the project's ambitious scope. At full build-out, Mission Rock is set to include approximately 1,200 homes—40% of which will be affordable—along with 1 million square feet of office space, retail areas, and parks. The project is currently underway, with horizontal construction about 30% complete and vertical work on two residential buildings already in progress.

The financing structure for Mission Rock relies on a combination of developer equity and public financing through special tax districts. The goal is to replace a high developer return of 18% with lower-interest public financing, which will help preserve land values and revenues for future phases of the project.

The approval of these bonds is crucial, as it will allow the project to leverage increased appraised values resulting from recent developments and investments at the site. The latest appraisal valued the Mission Rock leasehold at nearly $325 million, significantly higher than previous estimates, enabling the city to issue additional bonds to fund the project effectively.

This financial maneuver is expected to enhance the project's economic viability and ensure that the Mission Rock development continues to progress, ultimately benefiting the community with new housing and public spaces.