San Francisco Budget and Finance Committee Regular Meeting – September 13, 2023
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San Francisco Budget and Finance Committee Regular Meeting – September 13, 2023
The Budget and Finance Committee of the San Francisco Board of Supervisors met on September 13, 2023, at 10:15 AM, chaired by Supervisor Connie Chan, with Vice Chair Rafael Mandelman and Supervisor Asha Safai. The committee reviewed four agenda items: a lease amendment for the San Francisco Wholesale Produce Market, a release of reserved funds for a small sites acquisition, spending authority for the SoMa Community Stabilization Fund, and a declaration of surplus land for affordable housing. No public comments were offered on any item.
Discussion Items
Item 1: Lease Amendment – San Francisco Wholesale Produce Market (File 230879)
John Lau of the Office of Economic and Workforce Development (OEWD) presented the first amendment to the lease with San Francisco Market Corporation. The amendment formalizes the disbursement of $3 million in previously allocated city funds for the market’s reinvestment plan, including $1.81 million for marshalling yard improvements and $1.19 million for pre-development of the 1900 Kirkwood Avenue warehouse. The Budget and Legislative Analyst (BLA) recommended approval. The committee voted to forward the resolution to the full Board with a positive recommendation (3-0).
Items 2, 3, and 4: Housing and Community Development Items (Files 230958, 230812, 230813)
Sheila Nicolaopolis of the Mayor’s Office of Housing and Community Development (MOHCD) presented three related items.
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Item 2: Release of Reserved Funds – 566 Natoma Street (File 230958): Requested release of $2.9 million from the Budget and Finance Committee Reserve (SoMa Community Stabilization Fund) to provide a small sites program loan to Mission Economic Development Agency (MEDA) for the acquisition and rehabilitation of a five-unit building at 566 Natoma Street. The BLA report noted that the per-unit subsidy of $580,000 exceeds the program’s updated guidelines, but is permissible with director approval. The project will permanently restrict rents for at least 99 years. The committee voted to file the hearing and release the funds (3-0).
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Item 3: Authorizing SoMa Community Stabilization Fund Expenditures (File 230812): Originally proposed to authorize up to $3,014,800 for capacity building grants and the small sites loan. Following the release of reserves for Item 2, MOHCD requested an amendment to reduce the spending authority to $114,800 to fund only two grants: $74,800 for Cultivate Labs and $40,000 for United Players. The amendment was approved (3-0), and the resolution as amended was forwarded to the full Board.
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Item 4: Declaration of Surplus Land – 1939 Market Street and 1515 South Van Ness Avenue (File 230813): MOHCD requested that the city declare these properties as exempt surplus land under state law to qualify for additional points in state affordable housing funding applications. The properties will be used for 100% affordable housing with ancillary commercial space. The committee forwarded the resolution to the full Board with a positive recommendation (3-0).
Public Comments & Testimony
No members of the public offered comments on any agenda item.
Key Outcomes
- Item 1: Approved and forwarded to the full Board (3-0).
- Item 2: Hearing filed and $2.9 million in reserve funds released to MOHCD for the 566 Natoma Street small sites loan (3-0).
- Item 3: Amended to reduce spending authority to $114,800, then forwarded to the full Board (3-0).
- Item 4: Forwarded to the full Board (3-0).
All items are expected to appear on the Board of Supervisors agenda on September 19, 2023.
Meeting Transcript
You are unmuted. The meeting will come to order. Welcome to the September 13, 2023 meeting of the budget and finance committee. I'm Supervisor Connie Chan, Chair of the Committee, and I'm joined by Vice Chair Rafael Mendelman, and shortly by Supervisor Asha Safai. Our clerk, it's Brent Halipa. I would like to thank uh Kalina Mendoza from SFGov TV for broadcasting this meeting. Mr. Clark, do you have any announcement? Yes, Madam Chair. Uh just a friendly reminder for those in attendance uh to please make sure to silence all cell phones and electronic devices as to not interrupt our proceedings here in the chamber. The Board of Supervisors and its committees are convening hybrid meetings that allow in-person attendance and public comment while still providing remote access and public comment via telephone. Uh public comment will be taken on each item on this agenda. Those attending in person will be allowed to speak first, and then we will take those who are waiting on the telephone line for those watching remotely and streaming through sfgovtv.org. The public comment call in number is streaming across the screen. And uh when connected, you will hear the meeting discussions, but you'll be muted and in listening mode only. When your item of interest comes up in public comment is called, those joining us in person should line up to speak, and those on the telephone should dial star three to be added to the speaker line. Uh, if you're on your telephone, please remember to turn down your TV and all listening devices you may be using, and each speaker will be allowed up to two minutes to speak unless otherwise stated. Uh we did oh, sorry, alternatively, you may submit uh public comment in writing in either of the following ways. Email them to myself, the budget and finance committee clerk uh at B-R-E-N-T dot J A L I P A at SFGov uh or SFGO V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. Uh, you may also send your written comments via U.S. Postal Service uh to our office in City Hall. That's one, Dr. Carlton B. Go to place, room 244, San Francisco, California, 94102. And finally, items acted upon today are expected to appear on the Board of Supervisors agenda of September 19th, unless otherwise stated. Uh Madam Chair. Thank you, Mr. Clerk. And uh before we call item number one, we'd like to remind everyone that we will have B out budget and legislative analyst reports for items one, two, and three on today's agenda. And so with that, uh let's go to item number one. Uh yes, item number one is a resolution approving and authorizing the director of property to enter into a first amendment uh to the current lease for the San Francisco wholesale produce market located near 2095 Gerald Avenue and uh with the San Francisco Market Corporation to distribute city funds to support the development of certain elements of the produce market reinvestment plan, uh firming the planning department's determination under the California Environmental Quality Act, adopting findings of consistency with the general plan and the planning code, authorizing the director of property to execute um a first amendment to the lease, make certain modifications and take certain actions in furtherance of this resolution and the lease and authorizing the director of property to enter into any additions, amendments or other modifications to the lease that do not materially increase the obligations or liabilities of the city to effectuate the purposes of the first amendment or this resolution. Members of the public have joined us remotely for the comment. Uh press star three to enter the speaker line. Hey Prompt will indicate that you have raised your hand, and when the system indicates you have been unmuted, that will be your signal to begin your comments. Madam Chair. Thank you, Mr. Clerk, and today we have Mr. John Lau, project manager from Office of Economic and Workforce Development here. Thank you. Good to see you. And members of the committee, good morning. Uh John Lau with the Landerson Real Estate Team within the Office of Economic and Workforce Development. I'm here today with Director of Property, Enrico Penick. Um the we're both available for questions as well. Um the reason why we're both here is is OEWD leads the city's partnership with the produce market entity, which is a partnership that has many facets to it, and of course the market itself uh operates on 23 acres of city owned property under the jurisdiction of RED. So Andrico and his team were intimately involved in lease agreement or or uh any engagements uh there too with the produce market. So with that if uh as have govern I'd like to go to the presentation. And uh I will be brief, but uh I think it's important to provide just a few slides of context. Um committee members may be well aware of the produce market, but many members of the public still are not, and it's a vital importance to the local economy, and and we think it's important in these uh public uh venues to uh spend a minute or two on just education about the produce market.
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