Project Agreement - PRG-Potrero Properties LLC - Potrero Yard Modernization Project - 2500 Mariposa Street - $1,396,433,595 - Approving Bond Issuance - $900,000,000
Summary
Resolution approving Contract No. 1334, Infrastructure Facility Project Agreement (“Project Agreement”), with PRG - Potrero Properties LLC, for the design, construction, and financing of a bus storage and maintenance facility for the Potrero Yard Modernization Project, which Project Agreement provides for 1) a 30-year term commencing after substantial completion, scheduled for 2030, and expected to end in 2060, 2) two milestone payments of $65,000,000 at or around financial close and $250,000,000 during construction, 3) a $5,000,000 development fee payable after substantial completion, 4) annual availability payments commencing approximately one year after anticipated substantial completion and continuing through the end of the term, projected to start at approximately $33,000,000 with an estimated cumulative total of approximately $980,000,000 5) potential delay event or termination compensation, all as provided in the Project Agreement and for a not to exceed amount of $1,396,433,595 expressed in nominal dollars; affirming the Planning Department’s determination under the California Environmental Quality Act; and approving, for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, the issuance by the California Municipal Finance Authority of tax-exempt obligations in an aggregate principal amount not to exceed $900,000,000 to finance the costs of the Project, and making related findings and determinations related thereto.
Motion
- Moved by
- Connie Chan
- Seconded by
- Myrna Melgar
- Motion text
- Supervisor Chan, seconded by Supervisor Melgar, moved that this Resolution be AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE, on Page 4, Lines 5-10, by adding ‘WHEREAS, In March 2024, the Planning Commission and Board of Supervisors each unanimously approved entitlement legislation, on File with the Clerk of the Board of Supervisors in File No. 240136, which is hereby declared to be a part of this resolution as if set forth fully herein, for the Potrero Yard Modernization Project, that allowed for the 465-unit affordable housing component, with each body citing the widespread and strong public community support for the innovative joint-development project; and’; and on Page 14, Lines 3-10, by adding ‘FURTHER RESOLVED, That given the significant reduction of affordable housing units in the Potrero Yard Modernization Project after the multi-year engagement process with the community, the Board of Supervisors urges MOHCD to identify funding sources to construct the infrastructure needed to enable future housing development opportunities as part of the Potrero Yard Modernization Project; and, be it FURTHER RESOLVED, That the Board of Supervisors urges SFMTA to identify additional sites and collaborate with MOHCD to deliver 465 units of affordable housing to the community as provided in the entitlement legislation in 2024.’ The motion carried by the following vote: