Committee recommends annexing 75 Howard St. into Transbay community facilities district

The Government Audit & Oversight Committee on March 1 recommended that the Board of Supervisors confirm annexation of 75 Howard Street into Transbay Community Facilities District (CFD 2014‑1).

Bridget Katz, development finance specialist in the Office of Public Finance, told the committee the CFD was formed in 2014 to allow new large developments in the district to help finance the Transbay Transit Center and related public infrastructure. "As part of the district's formation, the board approved the issuance of bonds in an amount not to exceed $1,400,000,000, of which approximately $514,000,000 has been issued to date," Katz said.

Katz said special taxes levied on taxable buildings in the district secure those bonds; under the joint community facilities agreement with the Transbay Joint Powers Authority, about 82.6% of special‑tax proceeds are directed to help finance the transit center and roughly 17.4% toward other capital improvements such as streetscape, transportation enhancements and open space.

Supervisor Connie Chan asked how properties are selected for annexation and Katz explained that properties receiving a zoning bonus to exceed a floor‑area ratio of 9 to 1 are required to annex and participate in funding authorized facilities. She said the annexation process requires an executed unanimous approval by the property owner, a clerk's notice of special‑tax lien and assessor‑recorder recordation.

With no members of the public requesting to speak on the item, Chair Dean Preston moved the resolution to the full Board with a committee recommendation. A roll call recorded three ayes and the motion passed.

The Board of Supervisors will consider the resolution on its upcoming agenda; the committee's recommendation will appear with the Board materials.