Committee forwards ordinance to create 706 Mission Fund after developer pledges overdue fees

The San Francisco Board of Supervisors Rules Committee on Monday voted to forward to the full Board an ordinance to establish a 706 Mission Fund to receive funds tied to the 2013 purchase-and-sale agreement for 706 Mission Street and to require Recreation and Park and the Mayor’s Office of Housing and Community Development to use recommendations from the SoMa Community Stabilization Fund Community Advisory Committee.

Chair Peskin, introducing the item, said the matter dates back about a decade and grew out of community concern that funds promised in the original agreement had not been fully accounted for. “We discovered that the developer, as a result of that agreement, had yet to pay, over $3,000,000 in desperately needed affordable housing fees,” he said, and added that OCII had received a letter from the developer committing to pay outstanding fees in full by March: “So that $3,500,000 is on the way.”

The ordinance would amend the Administrative Code to (1) create the 706 Mission Fund to hold monies from the purchase-and-sale agreement for 706 Mission Street, (2) require Rec and Park and MOHCD to expand allowable uses only after receiving recommendations from the SoMa Community Stabilization Fund Community Advisory Committee, and (3) require departmental reporting on expenditures from the fund. Proponents said the change is intended to restore promised community review and transparency.

Former Rec and Park Commissioner Alan Lowe testified in support, calling the measure necessary “to establish accounting and transparency,” and outlining three funding streams he described as associated with the project: an annual payment to SoMa open-space and gardens of about $500,000 that escalates with CPI; a one-time payment of roughly $1.8 million; and an ongoing transfer fee. “This ordinance establishes that accountability that’s necessary for the collection of these funds,” Lowe said.

Several community advocates said the funds should remain tied to open space and recreation and be directed to local programming for youth and seniors. “We’re super excited for these capital funds to renovate Dean’s Friend so we can have a nice shiny new facility,” said Nisha Olivas of United Players, urging continued linkage to open-space uses.

Chair Peskin moved to send the item to the full Board with a positive recommendation. A roll call recorded ayes and the motion passed without objection. The item will next be scheduled for a full Board hearing.