OCII advances Transbay Block 4: commission approves environmental findings, plan amendments, DDA and conditional schematic design with 45% affordability target

The San Francisco Commission on Community Investment and Infrastructure on June 21 advanced a major Transbay Block 4 mixed‑use housing project by approving a package of staff recommendations: environmental review findings, transmittal of a redevelopment‑plan amendment to the Board of Supervisors, amendments to development controls and design guidelines, authorization of a Disposition and Development Agreement (DDA) with F4 Transbay Partners, and conditional approval of schematic design.

Staff and development team presentation: OCII development specialist Kim Obstfeld outlined the proposed program for Block 4, which the staff described as 681 residential units with approximately 45% of units restricted for affordability. The program includes about 8,400 square feet of ground‑floor retail (targeted for community‑serving uses), an elevated publicly accessible courtyard, streetscape improvements, and an underground valet parking strategy. The mid‑rise building is planned to be 100% affordable (202 units), to be owned and operated by Mercy Housing, while the tower contains a mix of condominiums and rental units.

Financial and timing details: Staff cited a two‑party appraisal that establishes a land sale price of $6,000,000; developer Dan Esdorn (Heinz/Urban Pacific) described high‑level cost estimates “generally in the $900,000,000 range” and suggested loan‑to‑value targets of roughly 50–65 percent. Kim Obstfeld and counsel explained the DDA’s performance schedule: good‑faith deposit within 10 days of the effective date, $100,000 for an SBE study within 30 days, execution of a CityBuild agreement and staged financing, with close of escrow no later than 18 months after the DDA’s effective date.

Affordability assurances and enforcement: Commissioners pressed developers on the feasibility and enforceability of the 45% affordability target after prior negotiations dating back to 2016. The development team said independent appraisals and negotiations produced the current terms; OCII staff and counsel described enforcement mechanisms in the DDA that include cure rights, notice and an agency right of reverter prior to close of construction financing, and remedies including specific performance after financing closes. Commissioners sought and received commitments on enhanced outreach to Certificate of Preference (COP) holders and marketing/lease‑up coordination with Mercy Housing.

Public reaction: Several callers and representatives (Eastcut CBD, Housing Action Coalition and nearby owners) voiced support for the project’s housing yield and public‑realm improvements. Some public commenters and Commissioner Brackett expressed concern that market or financing changes could erode the 45% affordability target and sought clarity on remedies if the developer could not perform.

Votes: OCII took separate roll‑call votes on the bundled items (resolutions 18–23, 2022). Most items passed on 3–1–1 votes (three yes, Commissioner Brackett recorded the lone no on several items, one absent for Chair Bustos). The commission approved environmental findings, transmittal to the Board of Supervisors, plan and DCDG amendments, authorization of the DDA, and conditional schematic approval, advancing the project to the Planning Commission and Board of Supervisors for subsequent approvals.

Why it matters: Block 4 is one of the largest remaining parcels in the Transbay Zone 1 redevelopment area and the package contains the highest level of city‑secured affordability for Transbay to date. The DDA embeds performance milestones and proceeds (including a 0.5% condo resale fee to fund Transbay Park maintenance) and triggers further city approvals and financing steps before construction can begin.

Next steps: With OCII approvals, the developer will pursue Planning Commission and Board of Supervisors actions, and OCII will return to the commission to seek an affordable‑housing loan for the mid‑rise in 2023. Staff estimated construction start in late 2023 with completion in 2027, subject to financing and permit milestones.