Committee sets public‑hearing date for special tax district tied to Potrero Power Station project

The Budget and Finance Committee on Jan. 12 approved two resolutions of intention to form a special tax district (a Community Facilities District) and to incur bonded indebtedness in support of the Potrero Power Station redevelopment. The committee also amended the resolution to set the public hearing for 3 p.m. on March 8 and forwarded both items to the full Board with a positive recommendation.

City staff from OEWD and the Office of Public Finance described the project area on the Central Waterfront (roughly 29 acres), which the environmental review and entitlements envision as a mixed‑use neighborhood with approximately 2,600 residential units and public open space. Presenters said the financing structure described in the development agreement includes two potential tax components for the district: a facilities tax expected to underwrite future bond issuances (initially projected to generate roughly $5 million in FY22 during the developer phase) and a contingent services tax intended to fund maintenance of improvements on Port property should an HOA or master association default.

Office of Public Finance staff said the district’s not‑to‑exceed indebtedness is $800 million (plus an additional amount in the event of annexation), and that initial modeling anticipates lower ongoing tax revenues after the developer financing phase (an estimated $3.3 million in a conversion year). Officials said eligible uses include shoreline improvements to address sea‑level rise, maintenance of port‑side improvements and bond‑related administrative costs.

Chair Haney moved the resolutions to the full Board with a positive recommendation after the committee adopted an amendment to set the hearing date; the committee voted 3–0. Staff said a second legislative packet will follow later in the month with materials to form the district, hold the special election and levy taxes if approved.