This resolution approves a change to an agreement with Potrero Neighborhood Collective LLC, allowing for a potential termination payment increase of about $5.6 million, bringing the total possible payment to just over $15.5 million. It also includes environmental findings in compliance with California law.
Resolution retroactively approving a Second Amendment to the Predevelopment Agreement between Potrero Neighborhood Collective LLC and the City and County of San Francisco, acting by and through the San Francisco Municipal Transportation Agency, dated for reference purposes as of October 1, 2024, and retroactively effective as of October 17, 2024, to increase the potential termination payment by $5,556,566 for a total potential termination payment that will not exceed $15,546,566; and making environmental findings under the California Environmental Quality Act.
How it got here
The legislation originated from the need to amend the Predevelopment Agreement for the Potrero Yard Modernization Project to accommodate increased costs and extend timelines for project completion.
The SFMTA Board approved a resolution authorizing the use of a joint development procurement method for the Potrero Yard Modernization Project.
The Board adopted an ordinance to approve a joint development delivery method and exempted various project agreements from certain administrative code requirements.
The SFMTA Board authorized the execution of a Predevelopment Agreement with Potrero Neighborhood Collective LLC for the project.
The Planning Commission certified the Environmental Impact Report for the project, fulfilling CEQA requirements.
The SFMTA executed the First Amendment to extend the term of the Predevelopment Agreement to October 18, 2024.
The SFMTA Board approved a resolution authorizing the Director of Transportation to seek approval of the Second Amendment from the Board of Supervisors.
The Board adopted the resolution retroactively approving the Second Amendment to the Predevelopment Agreement, increasing the termination payment and extending the term.
Reconstructed from attached documents & the official record
This resolution endorses a financial agreement for the modernization of the Potrero Yard by the San Francisco Municipal Transportation Agency, outlining specific milestone payments and terms for the project. It includes provisions for payments totaling up to $75 million initially, with additional payments and adjustments over a 30-year maintenance term, pending final approval by the Board of Supervisors.
