Committee forwards Potrero Power Station EIFD and related development agreement amendment to full Board

The Budget and Finance Committee on March 13 voted to forward to the full Board a resolution and ordinance to form an Enhanced Infrastructure Financing District (EIFD) for the Potrero Power Station and to amend the project’s development agreement.

Grant Carson of the controller’s Office of Public Finance described the EIFD as the next step in the project’s financing: the Potrero site is roughly 32 acres and the project is expected to include thousands of residential units and significant commercial space. Carson said the estimated total infrastructure cost is “roughly $548,000,000 in today’s dollars,” and explained the district’s base assessed value ($138,900,000), the city’s share of the 1% property tax (about 64.6%) and the portion of the city’s share that can be allocated to the EIFD (58.3% per the IFP description).

Supervisor Shamann Walton said the site could be the future home of up to 2,600 residential units, with 30% designated affordable; Walton noted the first building will include 105 affordable workforce units.

The Budget and Legislative Analyst urged caution: the BLA described the proposal as a ‘‘significant change’’ from the original development agreement because it diverts tax increment that otherwise would have gone to the city general fund and argued the committee should treat approval as a policy decision. The BLA said it could not fully validate OEWD’s developer-feasibility analysis with the materials provided.

An OEWD representative responded that city staff performed economic reviews before the resolution of intention, that the EIFD will reimburse the developer only when incremental taxes are generated, and that city policy directs dedicating 50% of local incremental property tax to such districts (with the other 50% to the general fund) as a conservative measure.

Two public speakers — a neighborhood open-space advocate and a labor official — spoke in support, citing 7 acres of planned open space, waterfront access, long-term park maintenance commitments by the developer, and job and apprenticeship opportunities for construction trades.

The committee voted to forward the resolution and ordinance with a positive recommendation. County-level public financing authority steps remain (Carson noted a final PFA hearing scheduled for March 28).