Committee forwards EIFD to finance infrastructure for 3333 and 3700 California Street developments

The Budget & Finance Committee on Jan. 14 voted to forward to the full Board a resolution approving an infrastructure financing plan (IFP) and formation documents for an Enhanced Infrastructure Financing District (EIFD) covering the 3333 and 3700 California Street projects.

Leigh Lutenski of the Office of Economic and Workforce Development told the committee the EIFD is intended to reimburse developers for site infrastructure (streets, utilities, parks) and to unlock delivery of more than 1,200 housing units across the two projects, including on-site and off-site affordable housing and community benefits. The IFP proposes allocating approximately 50% of net new incremental property tax revenues to the EIFD; staff said a net fiscal benefit analysis indicates the general fund will still benefit overall.

Public commenters included nearby residents urging more housing, housing advocates and construction-trades representatives who supported the district as a tool to accelerate housing production and job creation. The committee recorded a 3-0 vote to refer the resolution to the full Board.

Staff noted the EIFD formation is followed by a public financing authority vote and that reimbursements only occur after developers expend and validate eligible costs.

The EIFD authorizes a 40-year tax-increment period and includes a "use it or lose it" requirement to encourage timely Certificates of Occupancy within 10 years, per city EIFD policy.