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.
Resolution generally endorsing the form of an Infrastructure Facility Design-Build-Finance-Operate-Maintain Agreement (Form Project Agreement) for the San Francisco Municipal Transportation Agency (SFMTA) Potrero Yard Modernization Project, and the following pricing: 1) an initial milestone payment of up to $75,000,000 at financial close, 2) a relocation payment of up to $500,000 within 60 days of completing temporary relocation of Potrero Yard operations, 3) a milestone payment of up to $200,000,000 by no later than 2033, and 4) an initial maximum annual availability payment of up to $42,200,000 (in Fiscal Year 2030 dollars) over a maintenance term not to exceed 30 years after the scheduled substantial completion date, anticipated in 2029, subject to interest rate and credit spread fluctuations between commercial close and financial close and annual Consumer Price Index adjustments, with the part of the payment covering capital costs increasing 1% per year and sculpted to align with the SFMTA’s existing debt service obligations; and providing that the final terms of the agreement, including final pricing and inclusion of a Small Business Enterprise/Disadvantaged Business Enterprise Plan, shall be subject to approval of the Board of Supervisors.
How it got here
The Potrero Yard Modernization Project originated from the need to replace an outdated transit facility and integrate affordable housing, driven by city policies promoting joint development.
The SFMTA Board authorized the use of a joint development procurement method for the Potrero Yard Modernization Project.
The Board approved a joint development delivery method and exempted various project agreements from certain administrative code requirements.
The SFMTA Board authorized the Director of Transportation to execute a Predevelopment Agreement with Potrero Neighborhood Collective LLC, the selected developer.
The Predevelopment Agreement was fully executed, marking the start of predevelopment activities for the project.
The Planning Commission certified the Final Environmental Impact Report for the project, completing the environmental review process.
The SFMTA Board approved the terms of the Infrastructure Facility Design-Build-Finance-Operate-Maintain Agreement, subject to final pricing.
The Board of Supervisors adopted the resolution endorsing the Project Agreement for the Potrero Yard Modernization Project.
Reconstructed from attached documents & the official record
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.
This ordinance creates a special zoning district for the Potrero Yard area and adjusts height and bulk limits for a specific development project at 2500 Mariposa Street. It also includes environmental findings and confirms alignment with the city's General Plan and planning policies.
