122-1308-001 Agenda Item No. 4 ( f )
Meeting of August 5, 2008
MEMORANDUM
TO: Agency Commissioners
FROM: Fred Blackwell, Executive Director
SUBJECT: Workshop on the development program for Block 8 in Zone One of the Transbay Redevelopment Project Area; Transbay Redevelopment Project Area
EXECUTIVE SUMMARY
The purpose of this memorandum and workshop is to provide the Commission with a summary of the development program for Block 8 in Zone One of the Transbay Redevelopment Project Area (the “Project Area”). Agency staff expects to issue a Request for Proposals (“RFP”) for Block 8 in September 2008, which will be provided to the Commission as an informational memorandum before it is issued. The development program for Block 8 conforms precisely to the controls and guidelines adopted by the Agency in the Redevelopment Plan for the Transbay Redevelopment Project Area (the “Redevelopment Plan”), the Development Controls and Design Guidelines for the Transbay Redevelopment Project (the “Development Controls”), and the Transbay Redevelopment Project Area Streetscape and Open Space Concept Plan (the “Streetscape Plan”). However, the development program for Block 8 is extremely complex in that it will include both market-rate and affordable housing in multiple buildings on a single master developed block, a shared underground parking garage, shared open space, streetscape improvements, a child care facility, and air rights parcels on which the stand-alone affordable housing projects will be constructed. This memorandum and workshop seeks to provide the Commission with a discussion of these complex elements in advance of receiving the RFP in September 2008.
BACKGROUND
The Redevelopment Plan was adopted in May 2006 and the Project Area is divided into two land use zones, as shown on the map in Attachment 1: 1) Zone One, which was rezoned with the adoption of the Redevelopment Plan and is under the primary jurisdiction of the Agency, and 2) Zone Two, which is under the primary jurisdiction of the San Francisco Planning Department (the “Planning Department”). Zone One was rezoned through the Redevelopment Plan for high-density, mixed-use residential development, with a small amount of commercial development. A total of more than 2,600 new residential units, as well as more than 800,000 square feet of new commercial space, is projected to be built in Zone One over the next 15 to 20 years, as shown on the table in Attachment 2. Zone Two is part of a separate rezoning process being led by the Planning Department, with participation and review by Agency staff.
Zone One consists mostly of parcels that are currently owned by the State of California (the “State-owned parcels”) and were formerly occupied by a portion of the Embarcadero Freeway, which was demolished after the 1989 Loma Prieta Earthquake. In 2007, the State of California’s Department of Transportation (“Caltrans”) gave final approval to a Cooperative Agreement, which will facilitate the transfer of the State-owned parcels in Zone One to the Agency for disposition and development. There are also several large State-owned parcels in Zone Two, which will be used either for the new Transbay Transit Center and its ramps or for commercial developments under the jurisdiction of the Planning Department. Zone Two is currently in the process of being rezoned for higher density and heights under the Planning Department’s Transit Center District Plan.
Caltrans agreed to transfer the State-owned parcels in Zone One to the Agency because their development will help to support the construction of the new Transbay Transit Center by the Transbay Joint Powers Authority (“TJPA”) on the site of the existing Transbay Terminal. The Cooperative Agreement requires that all of the revenue generated from the sale of the State-owned parcels and all of the net tax increment revenue (after statutory passthroughs and the 20 percent affordable housing set-aside) generated by their development be used to help pay the cost of constructing the new Transbay Transit Center. As a result, through the Redevelopment Plan and supporting agreements approved by the Agency, all of the sales proceeds and net tax increment generated by the State-owned parcels has been pledged to the TJPA.
In connection with the transfer of the State-owned parcels, California State law was amended prior to the adoption of the Redevelopment Plan to require that for any redevelopment plan adopted to finance the demolition of the Transbay Terminal and the construction of a new terminal, 35 percent of all the residential units constructed in the Project Area must be affordable to very low-, low-, and moderate-income households. Note that this requirement applies to the Project Area as a whole, not to individual blocks or parcels within the Project Area. Thus some individual blocks and parcels may have less than 35 percent affordable housing while others may have more than 35 percent affordable housing.
The program for the development of the State-owned parcels in Zone One was designed in order to achieve the twin goals of maximizing revenue from the parcels in order to help facilitate the construction of the new Transbay Transit Center and achieving a 35 percent affordable housing level for the entire Project Area. The result is a program that combines high-density, market-rate residential and commercial towers with low-rise (podium) stand-alone, 100 percent affordable housing projects. By concentrating most of the market-rate development in the towers, the revenue from the sale and development of the parcels is maximized. As shown on the table in Attachment 2, the residential towers can be market-rate, with 15 percent inclusionary affordable housing, and the Project Area is still able to achieve an overall 35 percent affordable housing level.
As shown on the map in Attachment 1, there are twelve development blocks in Zone One of the Project Area. Agency staff intends to issue separate RFPs for each of these blocks over the next 10 to 15 years. The first two RFPs will be for Block 8, which is described in detail below, and Block 11, which is a smaller parcel that has been programmed for a stand-alone, 100 percent affordable supportive housing development. The RFP for Block 11 will also be issued in September 2008, and will be provided to the Commission along with an informational memorandum. Agency staff intends to issue RFPs for Blocks 5 and 9 in 2009, with the program for each block shown on the table in Attachment 2.
BLOCK 8 DEVELOPMENT PROGRAM
As shown on the table in Attachment 2, Block 8 will be developed as approximately 600 residential units, including 150 affordable units, and ground-floor retail. Agency staff is currently preparing an RFP for Block 8, which will be provided to the Commission along with an informational memorandum in September 2008. Due to the complexity of the development program, this memorandum and workshop are intended to provide a summary of complex elements of Block 8 in advance of the Commission receiving the RFP.
Building Envelope and Urban Design Concept
As with the other major development blocks in Zone One, Block 8 consists of a combination of market-rate and affordable housing and a variety of building types. Figure 1 below, which is from the approved Development Controls, shows the different building types programmed for all of the major development blocks in Zone One, including Block 8.
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Figure 1: Transbay Master Block Building Types |
As shown on the map in Attachment 3, each major development block consists of a high-rise tower ranging from 300 to 550 feet in height (depending on the location of the block), a low-rise townhouse development of up to 50 feet in height, and two podium developments of up to 65 or 85 feet in height. Along most of the frontages on public rights-of-way, projects must provide residential units or retail spaces with frequent entrances oriented toward the sidewalk. A shared open space area must be created in the middle of each development block with visual connections to the street. Multiple developments within the same block must share one underground parking facility.
Affordable Housing
In addition to creating a unique and pedestrian-friendly urban design for the Transbay neighborhood, the mix of building types serves the twin goals of maximizing the revenue generation from the parcels while at the same time achieving the overall 35 percent affordable housing level in the Project Area. The tower and townhouse developments on each major development block, including Block 8, will be market-rate projects, with 15 percent inclusionary affordable housing, as shown on the table in Attachment 2. The podium developments on each major development block, including Block 8, will be stand-alone, 100 percent affordable housing.
The stand-alone, 100 percent affordable housing on Block 8 will be family rental housing with a mix of one-, two-, and three-bedroom apartments affordable to families whose incomes do not exceed 50% of the unadjusted Area Median Income for HUD metro fair market rent area that contains San Francisco as established by the Mayor’s Office of Housing. The total unit mix in the stand-alone, 100 percent affordable housing on Block 8 will be roughly 25 percent 1-bedroom units, 50 percent 2-bedroom units, and 25 percent 3-bedroom units. The stand-alone, 100 percent affordable housing on other major development blocks will be either senior or family rental housing.
On Block 8, which has a 550-foot tower, this creates a development with an overall 25 percent affordable housing level, as shown on the table in Attachment 2. This is balanced by the major development blocks with smaller towers, such as Block 6, which have close to 35 percent affordable housing, and the blocks with no towers, such as Block 11, which are 100 percent affordable housing, as shown on the table in Attachment 2. The result is that even though Block 8 will have less than 35 percent affordable housing, when combined with the other developments in Zone One, the overall affordable level for the Project Area will meet or exceed 35 percent. Agency staff does not anticipate a significant amount of residential development in Zone Two, but to the extent that this occurs, the Agency will need to find additional sites in Zone Two for the development of stand-alone, 100 percent affordable housing.
Developer Selection and Disposition Process
It is anticipated that developers responding to the Block 8 RFP will form teams which include both a market-rate developer (the lead developer) to develop the tower and townhouse developments and a non-profit affordable housing developer to develop the stand-alone, 100 percent affordable residential project in the podium buildings. Each developer will also have specific responsibilities for the development of the shared facilities on the block. The market-rate developer will be responsible for developing the shared underground parking garage and the streetscape improvements, including the Folsom Off-Ramp reconfiguration, as described below. The non-profit affordable housing developer will be responsible for developing the shared open space parcel, which will be built on top of the shared underground parking garage, and providing a shell for a child care facility in one of the podium developments, as described below. All of the developments on the block will share the cost of ongoing operations and maintenance of the shared facilities, in proportion to their use of the facilities.
The selection process for the RFP will be divided into two phases. In Phase One, development teams will submit basic qualifications and an initial financial proposal, including a purchase offer for the market-rate tower and townhouse developments and a requested subsidy for the stand-alone, 100 percent affordable project. The three development teams that receive the highest scores in Phase One, based on the criteria in the RFP, will be recommended to the Commission for a short-list to be invited to participate in Phase Two. In Phase Two, the three short-listed teams will submit a detailed schematic design, including perspective sketches, and a final financial proposal based on the more detailed design. Phase Two will also include a presentation and interview with the selection panel. The team with the highest score in Phase Two, based on the criteria in the RFP, will be recommended to the Commission for exclusive negotiations.
The disposition process for the parcel will involve the sale of the entire site to the market-rate developer in order to facilitate the construction of the shared underground parking garage. The market-rate developer will give the air rights parcels (above the shared underground parking garage) associated with the stand-alone affordable housing, including the shared open space parcel, to the Agency. The Agency will then in turn enter into a long term “Air Rights Lease” with the non-profit affordable housing developer.
Shared Underground Parking Structure
There is no minimum off-street parking requirement for any use within Zone One. For residential uses, the maximum number of parking spaces is one per residential unit. For the stand-alone affordable family rental housing, the parking ratio will be .5 spaces per unit. To maximize efficiency and minimize curb cuts, all of the development on Block 8 will share one parking facility, which must be located entirely below street grade. As discussed above, the RFP for Block 8 will specify that the shared underground parking garage, including parking for the stand-alone affordable family rental housing, must be developed by the market-rate developer. The market-rate tower will benefit greatly by having the flexibility to spread its parking beneath the entire block, rather than building it entirely beneath the tower and townhouse parcels. The stand-alone affordable family rental housing residents will pay an affordable monthly rent for the use of the parking garage, to be determined by the Agency.
Child Care Facility
In order to address San Francisco’s chronic shortage of child care facilities, the stand-alone affordable housing project must include a child care facility at the base of the podium parcel along Fremont Street with an enclosed outdoor play space of approximately 1,700 square feet that is directly connected to the center. The child care facility will have exclusive use of the outdoor play space on weekdays; at other times it will be shared with the residents of Block 8. The entire shared open space parcel, which is the responsibility of the non-profit affordable housing developer as described above, will be approximately 3,400 square feet in size. The child care facility will serve a mixed-income population and a mix of children from the Block 8 development and from the city. The child care center will be approximately 4,500 square feet, with an estimated capacity of up to 45 children, ranging in ages from infants to preschoolers.
Folsom Street Off-Ramp Reconfiguration
The development of Block 8 will include the reconfiguration of the existing Folsom Street Off-Ramp, consistent with the approved Streetscape Plan, according to the plan shown in Attachment 4. The existing off-ramp transverses the block diagonally, while the reconfigured off-ramp will run along the north edge of the site, creating more space for development. The precise specifications for the reconfiguration of the Folsom Off-Ramp were developed by a consultant team hired by the Agency through a letter agreement with the San Francisco County Transportation Authority (“SFCTA”).
SFCTA staff, Agency staff and the consultant team are currently working with Caltrans on the reconfiguration. By November 2008, the Agency expects to have an agreement in place with Caltrans detailing the timing and specifics of the work on the Folsom Street Off-Ramp, and constituting approval of the new design, which is the standard Caltrans process for such highway design projects. As described above, the reconfiguration of the Folsom Street Off-Ramp will be the responsibility of the market-rate developer. The consultant team estimates that the cost of the reconfiguration of the Folsom Street Off-Ramp will be approximately $2,300,000.
NEXT STEPS
As discussed above, Agency staff expects to issue an RFP for Block 8 in September 2008, which will be provided to the Commission as an informational memorandum before it is issued. Agency staff has been working closely with the Transbay Citizens Advisory Committee, which has already reviewed a draft of the RFP for Block 8 and provided comments. Consistent with various interagency agreements, Agency staff has also provided drafts of the RFP to the TJPA and Caltrans for their review. Agency staff will incorporate all of the comments received from these agencies into the final RFP that is provided to the Commission in September 2008.
(Originated by Michael J. Grisso, Project Manager)
Fred Blackwell
Executive Director
Attachments:
- Transbay Redevelopment Project Area Land Use Zones
- Transbay Zone One Development Program
- Transbay Zone One Height Ranges
- Folsom Street Off-Ramp Reconfiguration
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Attachment 1: Transbay Redevelopment Project Area Land Use Zones |
|
Description |
Residential (# of units) |
Commercial (sq. ft.) |
|||||
|
Block/ Parcel |
Building Type |
Height Limit (ft.) |
Market-Rate |
Affordable |
Affordable Type* |
Office |
Retail |
|
Block 1 |
Tower |
300 |
207 |
37 |
Inclusionary |
|
5,000 |
|
Townhouse |
50 |
11 |
2 |
Inclusionary |
|
|
|
|
Podium 1 |
65 |
|
26 |
Stand-Alone |
|
4,000 |
|
|
Podium 2 |
85 |
|
45 |
Stand-Alone |
|
3,000 |
|
|
Totals |
|
218 |
110 |
|
|
12,000 |
|
|
Block 2 |
Townhouse |
50 |
15 |
3 |
Inclusionary |
|
2,000 |
|
Podium 2-A |
85 |
|
63 |
Stand-Alone |
|
5,000 |
|
|
Podium 2-B |
85 |
12 |
3 |
Inclusionary |
|
|
|
|
Mid-Rise |
165 |
75 |
14 |
Inclusionary |
|
5,000 |
|
|
Total |
|
110 |
84 |
|
|
12,000 |
|
|
Block 3 |
--Park-- |
||||||
|
Block 4 |
Tower |
450 |
334 |
59 |
Inclusionary |
|
5,000 |
|
Townhouse |
50 |
13 |
3 |
Inclusionary |
|
|
|
|
Podium 1 |
65 |
|
37 |
Stand-Alone |
|
3,000 |
|
|
Podium 2 |
85 |
|
35 |
Stand-Alone |
|
4,000 |
|
|
Total |
|
347 |
134 |
|
|
12,000 |
|
|
Block 5 |
Tower |
550 |
|
|
|
604,000 |
5,000 |
|
Podium |
85 |
|
|
|
133,000 |
7,000 |
|
|
Total |
|
|
|
|
737,000 |
12,000 |
|
|
Block 6 |
Tower |
300 |
207 |
37 |
Inclusionary |
|
5,000 |
|
Townhouse |
50 |
11 |
2 |
Inclusionary |
|
|
|
|
Podium 1 |
65 |
|
26 |
Stand-Alone |
|
4,000 |
|
|
Podium 2 |
85 |
|
45 |
Stand-Alone |
|
3,000 |
|
|
Total |
|
218 |
110 |
|
|
12,000 |
|
|
Block 7 |
Townhouse |
50 |
13 |
3 |
Inclusionary |
|
|
|
Podium 2 |
85 |
|
106 |
Stand-Alone |
|
|
|
|
Total |
|
13 |
109 |
|
|
|
|
|
Block 8 |
Tower |
550 |
436 |
78 |
Inclusionary |
|
5,000 |
|
Townhouse |
50 |
11 |
2 |
Inclusionary |
|
|
|
|
Podium 1 |
65 |
|
25 |
Stand-Alone |
|
4,000 |
|
|
Podium 2 |
85 |
|
45 |
Stand-Alone |
|
3,000 |
|
|
Total |
|
447 |
150 |
|
|
12,000 |
|
|
Block 9 |
Tower |
400 |
291 |
52 |
Inclusionary |
|
4,000 |
|
Podium 2 |
50 |
|
54 |
Stand-Alone |
|
3,000 |
|
|
Total |
|
291 |
106 |
|
|
7,000 |
|
|
Block 10 |
--Park/Existing Building-- |
||||||
|
Block 11 |
Townhouse |
50 |
13 |
3 |
Inclusionary |
|
|
|
Podium 2 |
85 |
|
104 |
Stand-Alone |
|
3,000 |
|
|
Total |
|
13 |
107 |
|
|
3,000 |
|
|
Block 12 |
Podium 1 |
|
|
11 |
Stand-Alone |
|
|
|
Podium 2 |
|
|
69 |
Stand-Alone |
|
|
|
|
Total |
|
|
80 |
|
|
|
|
|
Zone One Total |
|
1,649 |
989 |
|
737,000 |
82,000 |
|
|
Attachment 2: Transbay Zone One Development Program |
|
Attachment 3: Transbay Zone One Height Ranges |