OCII authorizes roughly $2.51 million disbursement and extends Mexican Museum grant

The Commission on Community Investment and Infrastructure on March 15 authorized a fifth disbursement agreement for the Mexican Museum at 706 Mission Street and conditionally approved a second amendment to the museum's 2010 grant agreement to extend its term to June 14, 2024.

Interim real estate manager Aaron Foxworthy told commissioners the 2010 grant originally committed up to $10,560,000 toward construction of a permanent museum space inside the 706 Mission development. Foxworthy said the museum has used about $2.8 million for predevelopment and $1 million for an exterior art screen, leaving roughly $6.78 million in grant funds available (the transcript contains both $6,780,000 and $6,785,000 as remaining figures). Staff presented a proposed fifth disbursement agreement for up to approximately $2,509,125 to fund further predevelopment work including contracting the design-build team, creating design drawings, fundraising and collection administration.

"If authorized today by the Commission, we would seek to execute the fifth disbursement agreement as swiftly as possible to allow funds to start flowing to the Museum," Foxworthy said.

Victor Marquez, general counsel for the Mexican Museum, asked the Commission to approve both items to enable the museum to spend the remaining grant funds. Mexican Museum chair Andy Kluger, speaking by phone, thanked OCII and said the museum has "complete level of confidence" in the building committee and project team.

Commissioners moved both items and voted separately. Commissioner Frank Scott moved approval of item 5C and Vice Chair Carmen Rosales seconded; the secretary recorded three ayes and one absent for item 5C. Item 5D passed in a subsequent roll call with the same three yes votes and one absence. Foxworthy said the Oversight Board hearing was tentatively scheduled for March 28 and that the Department of Finance would have about 45 days for review; the extension requires Oversight Board and DOF approvals before it takes effect.

Commission discussion was supportive. Commissioner Scott praised the project's representation of San Francisco's diversity, and Vice Chair Rosales confirmed that, once the fifth disbursement agreement is executed, OCII could reimburse the museum immediately without waiting for Oversight Board or DOF approvals on the extension.

The actions recorded were a motion to approve the fifth disbursement agreement (moved by Commissioner Scott, seconded by Vice Chair Rosales) and a motion to authorize the grant amendment (moved and seconded as recorded); both motions carried (3 ayes, 1 absent).

Next steps for the project, as described by staff, include executing the disbursement agreement, seeking Oversight Board approval (hearing tentatively planned for March 28) and subsequent DOF review. Construction of the museum tenant improvements was described as potentially beginning as soon as April 2023 with possible completion by February 2024 under the museum's current schedule.

Notes: the transcript lists two slightly different figures for remaining grant funds ($6,780,000 and $6,785,000); both figures are reported here as provided by staff during the presentation.