OCII board authorizes nonbinding term sheet for Transbay Under‑Ramp Park

The Commission on Community Investment and Infrastructure on Jan. 18 authorized the executive director to acknowledge a nonbinding operations term sheet between the Transbay Joint Powers Authority (TJPA), the East Cut Community Benefit District (CBD) and OCII for the development and operation of the Under‑Ramp Park in the Transbay redevelopment area.

OCII Transbay project manager Ben Brandon said the park would “approximately be about 2 and a half acres in size,” with features the presentation listed as a dog area, children’s play spaces, walking and biking routes, sports areas, a two‑story pavilion with food kiosks and an adjacent beer garden or concessions building. Brandon said TJPA and Caltrans will retain ownership of the land, TJPA will own park improvements at completion, OCII will fund and manage predevelopment and construction, San Francisco Public Works will manage construction, and the East Cut CBD would operate and maintain the park under a future agreement.

Staff warned the commission that estimated operating revenues from the beer garden, pavilion kiosks and CBD assessments would not fully cover the park’s early operating costs. Brandon told commissioners the TJPA established that at least $3,000,000 is needed to cover projected operating costs for the first five years after opening; the term sheet sets two fundraising milestones to address that shortfall. The first milestone requires the CBD to raise $1,200,000, half of which must be cash in hand and half may be donor commitments, to allow OCII to advance design to construction documents. For the second milestone staff said the CBD must raise an additional $1,800,000 (staff slides also referenced a $3,300,000 figure in one instance) that must be cash in hand before TJPA will allow construction to begin. Staff said the CBD will also refine the operations budget, establish a capital reserve and solicit donations from employers, businesses and residents to close the anticipated gap.

Commissioners questioned revenue assumptions and long‑term maintenance risks. John Updike of the TJPA said the CBD’s revised operations plan should include a capital reserve “so that as warranties for certain items begin to expire, they are ready and capable of addressing capital renewals and replacements.” Andrew Robinson, executive director of the East Cut CBD, said the CBD has learned from earlier park management experience and expects renewal of its assessment in 2030 to allow assessments to better match operations needs.

Commissioner Scott moved to authorize the executive director to acknowledge the nonbinding term sheet; Commissioner Brackett seconded. A roll call vote recorded four ayes and the motion carried.

The schedule presented by staff calls for immediate CBD fundraising, schematic design to return to the commission later in 2022, bond issuance in the next fiscal year to fund construction, construction targeted to begin in 2024 and a hoped‑for public opening in 2026.

Action taken: Commission authorized acknowledgement of a nonbinding operations term sheet for the Under‑Ramp Park (motion passed 4–0).