Supervisors advance Treasure Island amendments that accelerate infrastructure financing with COP guardrails

The committee on April 17 forwarded to the full Board a legislative package of technical and fiscal amendments intended to keep Treasure Island and Yerba Buena Island’s next stage of development on schedule. Supervisor Shamann Walton and Supervisor Ahsha Safaie's successor (sponsor Supervisor Dorsey) described the changes as necessary to preserve momentum for affordable housing, parks and essential infrastructure.

City and Treasure Island Development Authority (TIDA) staff said construction costs and permitting delays have outpaced the original financing plan. Jamie Kurubin (TIDA finance manager) described a proposal to advance up to $115 million in Certificates of Participation (COPs) in no fewer than three tranches, with no more than one tranche issued per fiscal year. The package includes guardrails intended to protect the general fund: any residual local tax increment would be redirected to the general fund while the COPs are outstanding, developer proceeds from land sales would be reinvested in the project until stage‑2 completion, and COP proceeds would be limited to stage‑2 infrastructure.

Controller Greg Wagner and OEWD staff described required process steps: the Board would consider COP issuances only after the city’s 10‑year capital plan is updated and shows capacity for the financing; COP tranches and timing would come back to the Board for subsequent approvals. The committee adopted technical revisions specifying the three‑tranche structure, a one‑per‑fiscal‑year limit, and that issuance occur only after the capital plan is revised to reflect capacity.

Supporters including local building trades, affordable housing advocates and TIDA noted that stage‑2 infrastructure is needed to permit two affordable housing projects and a behavioral health facility already in predevelopment; opponents in public comment urged the Board to consider long‑term debt capacity risks and climate/fiscal tail risks. The committee voted 3–0 to forward the amended items to the full Board. Next steps: Board consideration of the amended ordinance and resolution and, if approved, future separate Board actions authorizing each COP tranche after required capital‑plan and controller review.