Annie Gaus

San Francisco’s technology startups have mostly powered through the pandemic, raising money at a record rate and hiring aggressively, but the rise of remote work “creates a major risk for the city’s economy,” Ted Egan, the city’s chief economist, told the Board of Supervisors on Tuesday.

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San Francisco’s technology startups have mostly powered through the pandemic, raising money at a record rate and hiring aggressively, but the rise of remote work “creates a major risk for the city’s economy,” Ted Egan, the city’s chief economist, told the Board of Supervisors on Tuesday.

“We know this is an issue that&#8217;s currently being negotiated by the affected business and their employees, and we don’t quite know where it’s going to land,” Egan said at a hearing focused on tech startups.

“We know this is an issue that's currently being negotiated by the affected business and their employees, and we don’t quite know where it’s going to land,” Egan said at a hearing focused on tech startups.

“We know this is an issue that&#8217;s currently being negotiated by the affected business and their employees, and we don’t quite know where it’s going to land,” Egan said at a hearing focused on tech startups.

Investors poured $8 billion into local firms in August alone, according to Crunchbase, a research firm. That marked a record monthly high, and pushed the year-to-date total of dollars invested in San Francisco startups to more than $40 billion.

Investors poured $8 billion into local firms in August alone, according to Crunchbase, a research firm. That marked a record monthly high, and pushed the year-to-date total of dollars invested in San Francisco startups to more than $40 billion.

Those investments would normally <a href="https://sfstandard.com/s-f-downtown-is-still-dead-but-job-listings-venture-capital-point-to-a-possible-rebound/">foreshadow a surge in hiring</a> and commercial leasing, noted Egan. But this time could be different: Around 17% of San Francisco-based job listings are specifically designated as remote, and many companies are employing lax work-from-home policies to keep workers happy, said Egan.&nbsp;

Those investments would normally <a href="https://sfstandard.com/s-f-downtown-is-still-dead-but-job-listings-venture-capital-point-to-a-possible-rebound/">foreshadow a surge in hiring</a> and commercial leasing, noted Egan. But this time could be different: Around 17% of San Francisco-based job listings are specifically designated as remote, and many companies are employing lax work-from-home policies to keep workers happy, said Egan.&nbsp;

“Companies are leery of angering their workforce to stop them from being poached,” he said.&nbsp;

“Companies are leery of angering their workforce to stop them from being poached,” he said.&nbsp;

That spells trouble for San Francisco’s tax base. Business taxes, which generated close to $1 billion per year in revenue prior to the pandemic, are levied based in part on the number of employees physically working in San Francisco. Fewer commuters also means fewer customers at the downtown restaurants, bars and retail shops that generate an outsized portion of the city’s sales taxes.&nbsp;

That spells trouble for San Francisco’s tax base. Business taxes, which generated close to $1 billion per year in revenue prior to the pandemic, are levied based in part on the number of employees physically working in San Francisco. Fewer commuters also means fewer customers at the downtown restaurants, bars and retail shops that generate an outsized portion of the city’s sales taxes.&nbsp;

Indeed, employers are shedding downtown office space fast to adjust for remote work. Vacancy rates at San Francisco offices rose to 15.4% in the second quarter, according to brokerage firm Avison Young, while base rents have slipped 4.3% since the beginning of this year.&nbsp;

Indeed, employers are shedding downtown office space fast to adjust for remote work. Vacancy rates at San Francisco offices rose to 15.4% in the second quarter, according to brokerage firm Avison Young, while base rents have slipped 4.3% since the beginning of this year.&nbsp;

The silver lining, city officials say, is that falling real estate prices could be helpful for a different class of startups.

The silver lining, city officials say, is that falling real estate prices could be helpful for a different class of startups.

“What I would call the opportunity of this pandemic&#8230;is to seize this moment to help startups that haven’t been as well capitalized as others, and to take advantage of softer real estate prices right now,” said Kate Sofis, director of the Office of Economic and Workforce Development (OEWD), on Wednesday.

“What I would call the opportunity of this pandemic...is to seize this moment to help startups that haven’t been as well capitalized as others, and to take advantage of softer real estate prices right now,” said Kate Sofis, director of the Office of Economic and Workforce Development (OEWD), on Wednesday.

“What I would call the opportunity of this pandemic&#8230;is to seize this moment to help startups that haven’t been as well capitalized as others, and to take advantage of softer real estate prices right now,” said Kate Sofis, director of the Office of Economic and Workforce Development (OEWD), on Wednesday.

OEWD currently runs a few loan programs for entrepreneurs, focusing on women-led businesses, “emerging” businesses with the potential to generate economic growth, and other specific categories. The city also offers a limited number of tax credits, such as a payroll expense carve-out for biotech companies. A controversial tax exclusion for companies in the mid-Market and Tenderloin districts, dubbed the “Twitter tax break,” expired in 2019.&nbsp;

OEWD currently runs a few loan programs for entrepreneurs, focusing on women-led businesses, “emerging” businesses with the potential to generate economic growth, and other specific categories. The city also offers a limited number of tax credits, such as a payroll expense carve-out for biotech companies. A controversial tax exclusion for companies in the mid-Market and Tenderloin districts, dubbed the “Twitter tax break,” expired in 2019.&nbsp;

Sofis said that the city isn’t considering any “significant” new tax credits at this point. But she said there could be other ways of incentivizing tech companies&#8211;or those in adjacent sectors like advanced manufacturing&#8211;to set up shop in San Francisco.&nbsp;

Sofis said that the city isn’t considering any “significant” new tax credits at this point. But she said there could be other ways of incentivizing tech companies--or those in adjacent sectors like advanced manufacturing--to set up shop in San Francisco.&nbsp;

Sofis said that the city isn’t considering any “significant” new tax credits at this point. But she said there could be other ways of incentivizing tech companies&#8211;or those in adjacent sectors like advanced manufacturing&#8211;to set up shop in San Francisco.&nbsp;

That could mean tweaking tax structures over time, as well as zoning rules that apply to biotech or manufacturing startups to encourage companies with a brick-and-mortar footprint to expand. Depending on what a company produces, it may not be clear under San Francisco’s current zoning rules whether they could expand in parts of the city zoned for production, distribution and repair (PDR) as opposed to traditional office or industrial zones. Clarifying those rules could help incentivize the growth of firms with some production element, said Sofis.&nbsp;

That could mean tweaking tax structures over time, as well as zoning rules that apply to biotech or manufacturing startups to encourage companies with a brick-and-mortar footprint to expand. Depending on what a company produces, it may not be clear under San Francisco’s current zoning rules whether they could expand in parts of the city zoned for production, distribution and repair (PDR) as opposed to traditional office or industrial zones. Clarifying those rules could help incentivize the growth of firms with some production element, said Sofis.&nbsp;

Sofis also pointed to partnerships between the city and tech employers to encourage local hiring, such as a Microsoft-sponsored program called Technology Education and Literacy in Schools (TEALS) that matches tech employees with students at nine San Francisco public schools to teach computer science skills and build a long-term, local hiring pipeline.&nbsp;

Sofis also pointed to partnerships between the city and tech employers to encourage local hiring, such as a Microsoft-sponsored program called Technology Education and Literacy in Schools (TEALS) that matches tech employees with students at nine San Francisco public schools to teach computer science skills and build a long-term, local hiring pipeline.&nbsp;

“We have to continue to find a way to talk about tech not as something that is a problem,” said Sofis. “It’s essential to have companies at the table, whether it’s Facebook, LinkedIn or an advanced manufacturing company.”&nbsp;

“We have to continue to find a way to talk about tech not as something that is a problem,” said Sofis. “It’s essential to have companies at the table, whether it’s Facebook, LinkedIn or an advanced manufacturing company.”&nbsp;

San Francisco startups rake in funding even as employees stay home

Kevin Truong

Around 10% of San Francisco’s more than 400,000 housing units are vacant, including a quickly growing segment that includes owners purchasing properties as investments or cash havens, according to <a href="https://sfgov.legistar.com/View.ashx?M=F&amp;ID=10441217&amp;GUID=3331928E-0574-4AEA-90DB-35D04F638EDB">a report </a>from the Budget and Legislative analyst.&nbsp;&nbsp;

Around 10% of San Francisco’s more than 400,000 housing units are vacant, including a quickly growing segment that includes owners purchasing properties as investments or cash havens, according to <a href="https://sfgov.legistar.com/View.ashx?M=F&amp;ID=10441217&amp;GUID=3331928E-0574-4AEA-90DB-35D04F638EDB">a report </a>from the Budget and Legislative analyst.&nbsp;&nbsp;

The data, which was presented at a Board of Supervisors Land Use and Transportation Committee meeting Monday, provides ammunition for a new voter-approved tax measure targeting these vacant properties. Similar measures have been adopted by several progressive municipal governments, including in Oakland, Washington, D.C. and Vancouver.&nbsp;

The data, which was presented at a Board of Supervisors Land Use and Transportation Committee meeting Monday, provides ammunition for a new voter-approved tax measure targeting these vacant properties. Similar measures have been adopted by several progressive municipal governments, including in Oakland, Washington, D.C. and Vancouver.&nbsp;

District 5 Supervisor Dean Preston, who commissioned the report, characterized the issue of residential vacancies the “elephant in the housing policy room.”

District 5 Supervisor Dean Preston, who commissioned the report, characterized the issue of residential vacancies the “elephant in the housing policy room.”

“So much of the conversation around housing in this city has been dominated by a focus on production,” Preston said at the committee meeting. “But what’s missing from a lot of these discussions has been the consideration on how we use the housing that exists or the housing that gets built.”

“So much of the conversation around housing in this city has been dominated by a focus on production,” Preston said at the committee meeting. “But what’s missing from a lot of these discussions has been the consideration on how we use the housing that exists or the housing that gets built.”

The report found that 40,458 housing units in the city are vacant for a variety of reasons ranging from units currently available to rent or buy, those that are used seasonally and units currently being offered for sale. The number of vacant units have grown from a nadir of 26.4k in 2013 to 40.5k units in 2019, the last year for which census data is available. Vacant units were primarily concentrated in SoMa, Downtown and the Mission District, which is largely where new housing construction has been concentrated.

The report found that 40,458 housing units in the city are vacant for a variety of reasons ranging from units currently available to rent or buy, those that are used seasonally and units currently being offered for sale. The number of vacant units have grown from a nadir of 26.4k in 2013 to 40.5k units in 2019, the last year for which census data is available. Vacant units were primarily concentrated in SoMa, Downtown and the Mission District, which is largely where new housing construction has been concentrated.

Preston zeroed in on the more than 8,000 vacant units that are “sold and not occupied,” which has been the fastest-growing segment over the past five years. The report says that this can be due to owners buying units while still under construction or owners purchasing housing as a place to park cash without any intention to rent or sell the property.

Preston zeroed in on the more than 8,000 vacant units that are “sold and not occupied,” which has been the fastest-growing segment over the past five years. The report says that this can be due to owners buying units while still under construction or owners purchasing housing as a place to park cash without any intention to rent or sell the property.

&#8220;Everyone has some level of awareness there’s an issue of vacant units. You only need to walk by a big new construction building and see no lights on day after day,&#8221; Preston said in an interview. &#8220;This is not an issue that&#8217;s going away, it&#8217;s one that&#8217;s getting more significant.&#8221;

"Everyone has some level of awareness there’s an issue of vacant units. You only need to walk by a big new construction building and see no lights on day after day," Preston said in an interview. "This is not an issue that's going away, it's one that's getting more significant."

&#8220;Everyone has some level of awareness there’s an issue of vacant units. You only need to walk by a big new construction building and see no lights on day after day,&#8221; Preston said in an interview. &#8220;This is not an issue that&#8217;s going away, it&#8217;s one that&#8217;s getting more significant.&#8221;

Whereas the share of units for sale or rent that are vacant in San Francisco is lower than in many other cities, the share of total numbers of vacant units is higher than comparable areas, according to the report.&nbsp;

Whereas the share of units for sale or rent that are vacant in San Francisco is lower than in many other cities, the share of total numbers of vacant units is higher than comparable areas, according to the report.&nbsp;

That dichotomy has long been pointed to by activists as a factor in the city’s housing crisis and a rationale for its sky-high housing costs, however there has been limited research prior to the report examining the issue locally.&nbsp;

That dichotomy has long been pointed to by activists as a factor in the city’s housing crisis and a rationale for its sky-high housing costs, however there has been limited research prior to the report examining the issue locally.&nbsp;

The report also includes a handful of potential policy measures (mainly new targeted taxes) that could be put in place to reduce the number of residential vacancies and potentially raise revenue for affordable housing initiatives.

The report also includes a handful of potential policy measures (mainly new targeted taxes) that could be put in place to reduce the number of residential vacancies and potentially raise revenue for affordable housing initiatives.

These range from a fixed flat fee for vacant units like the $3,000-$6,000 charge <a href="https://www.oaklandca.gov/topics/vacantpropertytax">levied by the</a> City of Oakland to the approach taken by Vancouver, which <a href="https://vancouver.ca/home-property-development/empty-homes-tax.aspx">charges a fee</a> tied to the assessed property value to owners. Various definitions of vacancy and exemptions to the tax have been put in place by municipalities.&nbsp;

These range from a fixed flat fee for vacant units like the $3,000-$6,000 charge <a href="https://www.oaklandca.gov/topics/vacantpropertytax">levied by the</a> City of Oakland to the approach taken by Vancouver, which <a href="https://vancouver.ca/home-property-development/empty-homes-tax.aspx">charges a fee</a> tied to the assessed property value to owners. Various definitions of vacancy and exemptions to the tax have been put in place by municipalities.&nbsp;

Results from Vancouver, which Preston said had the “most developed” policy, have been promising. The city reported a 21.2% reduction in vacant units in the first year that the levy was introduced.&nbsp;

Results from Vancouver, which Preston said had the “most developed” policy, have been promising. The city reported a 21.2% reduction in vacant units in the first year that the levy was introduced.&nbsp;

While municipalities in California are largely prohibited from instituting a similar policy to Vancouver due to Prop. 13, the budget analyst found a tax of comparable scale could have the effect of activating 4,560 units within two years. That is equivalent to around 90% of the average number of new housing units added in the city over the past five years.

While municipalities in California are largely prohibited from instituting a similar policy to Vancouver due to Prop. 13, the budget analyst found a tax of comparable scale could have the effect of activating 4,560 units within two years. That is equivalent to around 90% of the average number of new housing units added in the city over the past five years.

Fred Brousseau, the director of policy analysis for the Budget and Legislative Analyst&#8217;s Office, said at the meeting the types of vacancies that would be most likely to be subject to the tax were a portion of the “sold, but not occupied” units, as well as those used for seasonal or occasional use, those which are being kept vacant in anticipation of a sale or those waiting for repairs or rehabilitation.&nbsp;

Fred Brousseau, the director of policy analysis for the Budget and Legislative Analyst's Office, said at the meeting the types of vacancies that would be most likely to be subject to the tax were a portion of the “sold, but not occupied” units, as well as those used for seasonal or occasional use, those which are being kept vacant in anticipation of a sale or those waiting for repairs or rehabilitation.&nbsp;

Fred Brousseau, the director of policy analysis for the Budget and Legislative Analyst&#8217;s Office, said at the meeting the types of vacancies that would be most likely to be subject to the tax were a portion of the “sold, but not occupied” units, as well as those used for seasonal or occasional use, those which are being kept vacant in anticipation of a sale or those waiting for repairs or rehabilitation.&nbsp;

Brousseau added that tax proposals could be paired with homeowner assistance for those who may not have the funds to get their properties in a place to rent or sell.

Brousseau added that tax proposals could be paired with homeowner assistance for those who may not have the funds to get their properties in a place to rent or sell.

Preston said while he expects pushback from the real estate industry, he said he expects broad public support of a residential vacancy tax measure, as evidenced by San Francisco voters&#8217; passage of a <a href="https://sfstandard.com/business/new-san-francisco-tax-on-vacant-properties-may-miss-its-intended-target/">commercial vacancy tax</a> in 2020.

Preston said while he expects pushback from the real estate industry, he said he expects broad public support of a residential vacancy tax measure, as evidenced by San Francisco voters' passage of a <a href="https://sfstandard.com/business/new-san-francisco-tax-on-vacant-properties-may-miss-its-intended-target/">commercial vacancy tax</a> in 2020.

Preston said while he expects pushback from the real estate industry, he said he expects broad public support of a residential vacancy tax measure, as evidenced by San Francisco voters&#8217; passage of a <a href="https://sfstandard.com/business/new-san-francisco-tax-on-vacant-properties-may-miss-its-intended-target/">commercial vacancy tax</a> in 2020.

&#8220;Vacancies are rising, this is not a problem that the market has solved. If anything the market has allowed this to persist,&#8221; Preston said. &#8220;I&#8217;ve talked with a lot of people over the years and my sense is that there’s pretty broad support for the idea of intervention of this type from folks across the spectrum who have very different ideas on how to solve the affordability crisis.&#8221;

"Vacancies are rising, this is not a problem that the market has solved. If anything the market has allowed this to persist," Preston said. "I've talked with a lot of people over the years and my sense is that there’s pretty broad support for the idea of intervention of this type from folks across the spectrum who have very different ideas on how to solve the affordability crisis."

&#8220;Vacancies are rising, this is not a problem that the market has solved. If anything the market has allowed this to persist,&#8221; Preston said. &#8220;I&#8217;ve talked with a lot of people over the years and my sense is that there’s pretty broad support for the idea of intervention of this type from folks across the spectrum who have very different ideas on how to solve the affordability crisis.&#8221;

About 40K SF dwellings are unoccupied. A residential vacancy tax could change that

Mike Ege

Tuesday’s Board of Supervisors’ meeting made up for past weeks’ light agendas with the welcoming of a new member, pointed questioning on affordable housing, significant new legislation and a marathon public comment session over the recent and heated redistricting process.&nbsp;

Tuesday’s Board of Supervisors’ meeting made up for past weeks’ light agendas with the welcoming of a new member, pointed questioning on affordable housing, significant new legislation and a marathon public comment session over the recent and heated redistricting process.&nbsp;

Mayor’s Appearance: Preston’s PROXY Battle &amp; Affordable Housing

<h2 class="has-medium-font-size wp-block-heading" id="h-mayor-s-appearance-preston-s-proxy-battle-affordable-housing">Mayor’s Appearance: Preston’s PROXY Battle &amp; Affordable Housing</h2>

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<h2 class="has-medium-font-size" id="h-mayor-s-appearance-preston-s-proxy-battle-affordable-housing">Mayor’s Appearance: Preston’s PROXY Battle &amp; Affordable Housing</h2>

Unlike <a href="https://sfstandard.com/politics/board-of-supervisors-in-4-minutes-no-call-no-show-and-having-a-cow-over-jfk/">last month</a>, when Board President Shamann Walton apparently “forgot” about her waiting to appear before the Board, Mayor London Breed was able to offer a warm welcome to new District 6 Supervisor Matt Dorsey. She then got an earful from District 5 Supervisor Dean Preston on affordable housing.&nbsp;

Unlike <a href="https://sfstandard.com/politics/board-of-supervisors-in-4-minutes-no-call-no-show-and-having-a-cow-over-jfk/">last month</a>, when Board President Shamann Walton apparently “forgot” about her waiting to appear before the Board, Mayor London Breed was able to offer a warm welcome to new District 6 Supervisor Matt Dorsey. She then got an earful from District 5 Supervisor Dean Preston on affordable housing.&nbsp;

<ul class="wp-block-list"><li>Following the new supervisor’s suggestion, Dorsey’s swearing-in ceremony was held at Delancey Street, the Mission Bay-based substance abuse treatment nonprofit. Breed related Dorsey’s <a href="https://sfstandard.com/politics/mayor-breed-taps-matt-dorsey-a-police-spokesperson-and-longtime-civil-servant-to-lead-district-6/">past struggles with addiction</a> and his stated determination to tackle the drug overdose crisis currently wreaking havoc in SoMa and the Tenderloin.&nbsp;</li></ul>

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<ul><li>Following the new supervisor’s suggestion, Dorsey’s swearing-in ceremony was held at Delancey Street, the Mission Bay-based substance abuse treatment nonprofit. Breed related Dorsey’s <a href="https://sfstandard.com/politics/mayor-breed-taps-matt-dorsey-a-police-spokesperson-and-longtime-civil-servant-to-lead-district-6/">past struggles with addiction</a> and his stated determination to tackle the drug overdose crisis currently wreaking havoc in SoMa and the Tenderloin.&nbsp;</li></ul>

<ul class="wp-block-list"><li>She also stressed their shared perspective on the concerns of District 6 residents, which they’ve both heard repeatedly: Conditions on the streets, and “public safety, public safety, and public safety.”&nbsp;</li></ul>

<ul><li>She also stressed their shared perspective on the concerns of District 6 residents, which they’ve both heard repeatedly: Conditions on the streets, and “public safety, public safety, and public safety.”&nbsp;</li></ul>

Preston then proceeded to grill the mayor on—what else?—housing.&nbsp;

Preston then proceeded to grill the mayor on—what else?—housing.&nbsp;

<ul class="wp-block-list"><li>The District 5 Supervisor has pressed Breed’s office on a number of housing issues, including development of supportive housing for<a href="https://sfstandard.com/housing-development/preston-questions-housing-officials-on-730-stanyan-but-finds-limited-answers/"> homeless teens and young adults</a>, and disposition of revenue from Proposition I, a property transfer tax approved by voters in 2020. Preston and supporters sought for those revenues to be earmarked for new “social housing” programs.</li></ul>

<ul><li>The District 5 Supervisor has pressed Breed’s office on a number of housing issues, including development of supportive housing for<a href="https://sfstandard.com/housing-development/preston-questions-housing-officials-on-730-stanyan-but-finds-limited-answers/"> homeless teens and young adults</a>, and disposition of revenue from Proposition I, a property transfer tax approved by voters in 2020. Preston and supporters sought for those revenues to be earmarked for new “social housing” programs.</li></ul>

<ul class="wp-block-list"><li>During this session however, he asked the mayor whether she would commit to breaking ground on an affordable housing project at Hayes Valley’s Parcel K, currently home of the PROXY art space, within three years. Preston said that he had been making inquiries to the Mayor’s Office of Housing for months on the matter, but had received no response. Mayor Breed responded that she was not familiar enough with the situation to provide an answer but would follow up, reiterating her commitment to affordable housing and noting several projects as “moving forward.”</li></ul>

<ul><li>During this session however, he asked the mayor whether she would commit to breaking ground on an affordable housing project at Hayes Valley’s Parcel K, currently home of the PROXY art space, within three years. Preston said that he had been making inquiries to the Mayor’s Office of Housing for months on the matter, but had received no response. Mayor Breed responded that she was not familiar enough with the situation to provide an answer but would follow up, reiterating her commitment to affordable housing and noting several projects as “moving forward.”</li></ul>

<ul class="wp-block-list"><li>Preston continued to press, calling the site “an important opportunity” that “lacks only the political will to go forward.” He then asked Mayor Breed if she would commit to at least issuing a Request for Proposals for the site within six months.&nbsp;</li></ul>

<ul><li>Preston continued to press, calling the site “an important opportunity” that “lacks only the political will to go forward.” He then asked Mayor Breed if she would commit to at least issuing a Request for Proposals for the site within six months.&nbsp;</li></ul>

<ul class="wp-block-list"><li>Meanwhile, PROXY continues to operate on the site on a month-to-month basis, and<a href="https://www.sfexaminer.com/news/why-parcel-k-in-hayes-valley-supports-an-outdoor-film-festival-instead-of-affordable-housing/"> remains popular</a> with adjacent residents and merchants. When she was District 5 Supervisor, Breed worked to extend their use of the space.&nbsp;</li></ul>

<ul><li>Meanwhile, PROXY continues to operate on the site on a month-to-month basis, and<a href="https://www.sfexaminer.com/news/why-parcel-k-in-hayes-valley-supports-an-outdoor-film-festival-instead-of-affordable-housing/"> remains popular</a> with adjacent residents and merchants. When she was District 5 Supervisor, Breed worked to extend their use of the space.&nbsp;</li></ul>

New Business: More Housing &amp; Treasure Island Appointments

<h2 class="has-medium-font-size wp-block-heading" id="h-new-business-more-housing-treasure-island-appointments">New Business: More Housing &amp; Treasure Island Appointments</h2>

<h2 class="has-medium-font-size" id="h-new-business-more-housing-treasure-island-appointments">New Business: More Housing &amp; Treasure Island Appointments</h2>

Speaking of affordable housing, supervisors approved the ground lease and financing for an affordable housing project at 180 Jones St. in the Tenderloin.

Speaking of affordable housing, supervisors approved the ground lease and financing for an affordable housing project at 180 Jones St. in the Tenderloin.

<ul class="wp-block-list"><li>The 70-unit Below Market Rate rental housing project will be managed by Tenderloin Neighborhood Development Corporation, with a lease term of 75 years and a 24-year option to extend. The financing is not to exceed $13.95 million.&nbsp;</li></ul>

<ul><li>The 70-unit Below Market Rate rental housing project will be managed by Tenderloin Neighborhood Development Corporation, with a lease term of 75 years and a 24-year option to extend. The financing is not to exceed $13.95 million.&nbsp;</li></ul>

<ul class="wp-block-list"><li>Preston, as the <a href="https://sfstandard.com/video/take-three-minutes-to-finally-understand-redistricting/">Tenderloin’s new Supervisor</a>, declared he was “thrilled to support projects like this.”&nbsp;</li></ul>

<ul><li>Preston, as the <a href="https://sfstandard.com/video/take-three-minutes-to-finally-understand-redistricting/">Tenderloin’s new Supervisor</a>, declared he was “thrilled to support projects like this.”&nbsp;</li></ul>

One growing venue for affordable housing is Treasure Island—which is in Supervisor Dorsey’s district. He and his colleagues approved reappointments of three directors to the board of the Treasure Island Development Authority, a hybrid nonprofit organization and agency that oversees development and infrastructure on the island. The reappointments are:

One growing venue for affordable housing is Treasure Island—which is in Supervisor Dorsey’s district. He and his colleagues approved reappointments of three directors to the board of the Treasure Island Development Authority, a hybrid nonprofit organization and agency that oversees development and infrastructure on the island. The reappointments are:

<ul class="wp-block-list"><li>V. Fei Tsen, a developer and former Director of Real Estate for the Port of San Francisco;</li></ul>

<ul><li>V. Fei Tsen, a developer and former Director of Real Estate for the Port of San Francisco;</li></ul>

<ul class="wp-block-list"><li>LaShawndra Price-Breston, longtime resident activist on the island;</li></ul>

<ul><li>LaShawndra Price-Breston, longtime resident activist on the island;</li></ul>

<ul class="wp-block-list"><li>Linda Richardson, environmental justice advocate and former Human Rights Commissioner.</li></ul>

<ul><li>Linda Richardson, environmental justice advocate and former Human Rights Commissioner.</li></ul>

<h2 class="has-medium-font-size wp-block-heading" id="h-roll-call-dorsey-checks-in">Roll Call: Dorsey Checks In</h2>

<h2 class="has-medium-font-size" id="h-roll-call-dorsey-checks-in">Roll Call: Dorsey Checks In</h2>

New District 6 Supervisor Matt Dorsey made initial remarks during Roll Call, telling his new colleagues how “grateful” he was to join the board and noting his shared history with many of the supervisors. For example, Dorsey worked with Board President and District 10 Supervisor Shamann Walton in the 2019 campaign to save the city’s ban on e-cigarettes.

New District 6 Supervisor Matt Dorsey made initial remarks during Roll Call, telling his new colleagues how “grateful” he was to join the board and noting his shared history with many of the supervisors. For example, Dorsey worked with Board President and District 10 Supervisor Shamann Walton in the 2019 campaign to save the city’s ban on e-cigarettes.

Acknowledging the contentious nature of his job, he also stressed that he will approach it from a position of mutual respect. “We all have a history together,” Dorsey said. “I’m honored to be here, I can’t wait to get to work.”

Acknowledging the contentious nature of his job, he also stressed that he will approach it from a position of mutual respect. “We all have a history together,” Dorsey said. “I’m honored to be here, I can’t wait to get to work.”

<ul class="wp-block-list"><li>Dorsey also introduced two items—a hearing request on barriers to city services for persons struggling with addiction, and a resolution asking Sacramento for more tax increment funding for affordable housing in Mission Bay.&nbsp;</li></ul>

<ul><li>Dorsey also introduced two items—a hearing request on barriers to city services for persons struggling with addiction, and a resolution asking Sacramento for more tax increment funding for affordable housing in Mission Bay.&nbsp;</li></ul>

<ul class="wp-block-list"><li>Later on in Roll Call, District 2 Supervisor Catherine Stefani gave Dorsey an enthusiastic welcome, declaring herself “absolutely ready to work with you on all things recovery.”</li></ul>

<ul><li>Later on in Roll Call, District 2 Supervisor Catherine Stefani gave Dorsey an enthusiastic welcome, declaring herself “absolutely ready to work with you on all things recovery.”</li></ul>

Also at Roll Call:&nbsp;

Also at Roll Call:&nbsp;

<ul class="wp-block-list"><li>District 8 Supervisor Rafael Mandelman introduced a number of items, including a resolution urging continued support for legacy providers of HIV support services, noting they face possible cuts; another resolution urging modification to the landmark status for the Castro Theater to reflect current restoration work under review by the city; and a measure for the November ballot to renew the transportation sales tax.&nbsp;</li></ul>

<ul><li>District 8 Supervisor Rafael Mandelman introduced a number of items, including a resolution urging continued support for legacy providers of HIV support services, noting they face possible cuts; another resolution urging modification to the landmark status for the Castro Theater to reflect current restoration work under review by the city; and a measure for the November ballot to renew the transportation sales tax.&nbsp;</li></ul>

<ul class="wp-block-list"><li>District 4 Supervisor Gordon Mar introduced items including a resolution and companion budget proposal for increased language access for services supporting victims of hate crimes, and a hearing on the impact of program and class cuts at City College of San Francisco, which were the subject of<a href="https://sfstandard.com/education/city-college-faculty-stage-sleep-in-ahead-of-layoff-vote/"> a “sleep-in”</a> last week by faculty and supporters, which ended in arrests.&nbsp;</li></ul>

<ul><li>District 4 Supervisor Gordon Mar introduced items including a resolution and companion budget proposal for increased language access for services supporting victims of hate crimes, and a hearing on the impact of program and class cuts at City College of San Francisco, which were the subject of<a href="https://sfstandard.com/education/city-college-faculty-stage-sleep-in-ahead-of-layoff-vote/"> a “sleep-in”</a> last week by faculty and supporters, which ended in arrests.&nbsp;</li></ul>

<ul class="wp-block-list"><li>District 7 Supervisor Myrna Melgar introduced legislation to create a pilot program for graffiti abatement in commercial corridors, which would allow property owners and businesses to opt in to proactive removal of graffiti by the Department of Public Works to avoid fines.&nbsp;</li></ul>

<ul><li>District 7 Supervisor Myrna Melgar introduced legislation to create a pilot program for graffiti abatement in commercial corridors, which would allow property owners and businesses to opt in to proactive removal of graffiti by the Department of Public Works to avoid fines.&nbsp;</li></ul>

<ul class="wp-block-list"><li>District 11 Supervisor Ahsha Safai introduced an ordinance amending the Planning Code to allow for the standing up of Vehicle Triage Centers in public parking lots citywide, noting the continued increased persons sheltering in vehicles around the city.&nbsp;</li></ul>

<ul><li>District 11 Supervisor Ahsha Safai introduced an ordinance amending the Planning Code to allow for the standing up of Vehicle Triage Centers in public parking lots citywide, noting the continued increased persons sheltering in vehicles around the city.&nbsp;</li></ul>

Public Comment: Redistricting is Bad, Part II: Electric Boogaloo

<h2 class="has-medium-font-size wp-block-heading" id="h-public-comment-redistricting-is-bad-part-ii-electric-boogaloo">Public Comment: Redistricting is Bad, Part II: Electric Boogaloo</h2>

<h2 class="has-medium-font-size" id="h-public-comment-redistricting-is-bad-part-ii-electric-boogaloo">Public Comment: Redistricting is Bad, Part II: Electric Boogaloo</h2>

While supervisors breezed quickly through Tuesday’s agenda, an early recess was not to be, as public comment extended over two and a half hours.&nbsp;

While supervisors breezed quickly through Tuesday’s agenda, an early recess was not to be, as public comment extended over two and a half hours.&nbsp;

<ul class="wp-block-list"><li>Most public commenters expressed their opposition to the recent<a href="https://sfstandard.com/politics/despite-political-drama-redistricting-may-yield-few-changes-in-november-election/"> redistricting process</a>, which<a href="https://sfstandard.com/politics/city-hall/finally-a-map-redistricting-saga-over-for-now-after-divisive-vote/"> resulted in significant changes</a> to the city’s Supervisorial districts. Speakers ranged from George Wooding, a former president of the Coalition on San Francisco Neighborhoods, to former District 11 Supervisor John Avalos.&nbsp;</li></ul>

<ul><li>Most public commenters expressed their opposition to the recent<a href="https://sfstandard.com/politics/despite-political-drama-redistricting-may-yield-few-changes-in-november-election/"> redistricting process</a>, which<a href="https://sfstandard.com/politics/city-hall/finally-a-map-redistricting-saga-over-for-now-after-divisive-vote/"> resulted in significant changes</a> to the city’s Supervisorial districts. Speakers ranged from George Wooding, a former president of the Coalition on San Francisco Neighborhoods, to former District 11 Supervisor John Avalos.&nbsp;</li></ul>

<ul class="wp-block-list"><li>Many of these speakers supported placing the “Community Unity Map,” a redistricting map proposed by the progressive group San Francisco Rising and aggressively lobbied for during the process, on the November ballot.&nbsp;</li></ul>

<ul><li>Many of these speakers supported placing the “Community Unity Map,” a redistricting map proposed by the progressive group San Francisco Rising and aggressively lobbied for during the process, on the November ballot.&nbsp;</li></ul>

<ul class="wp-block-list"><li>Others spoke in support of the recent redistricting process.&nbsp;</li></ul>

<ul><li>Others spoke in support of the recent redistricting process.&nbsp;</li></ul>

Tuesday’s meeting adjourned after a 90 minute closed session to confer with labor negotiators to discuss city employee raises, as part of budget and salary ordinances currently being submitted. If you want to see the recently submitted budgets for selected departments, <a href="https://sfgov.legistar.com/View.ashx?M=F&amp;ID=10862828&amp;GUID=43043182-5769-4270-B985-75A673161D24">click here</a>. The second budget and salary ordinance for remaining departments will be submitted in June.&nbsp;&nbsp;

Tuesday’s meeting adjourned after a 90 minute closed session to confer with labor negotiators to discuss city employee raises, as part of budget and salary ordinances currently being submitted. If you want to see the recently submitted budgets for selected departments, <a href="https://sfgov.legistar.com/View.ashx?M=F&amp;ID=10862828&amp;GUID=43043182-5769-4270-B985-75A673161D24">click here</a>. The second budget and salary ordinance for remaining departments will be submitted in June.&nbsp;&nbsp;

Board of Supes in 4 mins: Mr. Dorsey goes to City Hall, Preston pesters Breed on housing

Nick Veronin

From a second-story fire escape in Building 101, Marti McKee trains her eyes on the massive pile of dirt and debris looming over the gaping hole in the ground. The mound, which is surrounded by a chain-link fence and adjacent to a puddle of stagnant water, is both a familiar and unwelcome sight. McKee and the rest of the 173 tenants in Building 101—who together comprise the bulk of the <a href="https://www.shipyardartists.com/">Hunters Point Shipyard Artists</a> creative community—have been confronted by the eyesore for nearly four years.

From a second-story fire escape in Building 101, Marti McKee trains her eyes on the massive pile of dirt and debris looming over the gaping hole in the ground. The mound, which is surrounded by a chain-link fence and adjacent to a puddle of stagnant water, is both a familiar and unwelcome sight. McKee and the rest of the 173 tenants in Building 101—who together comprise the bulk of the <a href="https://www.shipyardartists.com/">Hunters Point Shipyard Artists</a> creative community—have been confronted by the eyesore for nearly four years.

Since first moving into a cluster of buildings on this site in the early 1980s, the Shipyard Artists have gotten used to a certain amount of neglect; rundown warehouses and drafty lofts are de rigueur for working creatives, after all. Still, McKee and her peers say the weed-choked berm and pool of “green slime” are daily reminders of a promise that has gone unfulfilled for 13 years.

Since first moving into a cluster of buildings on this site in the early 1980s, the Shipyard Artists have gotten used to a certain amount of neglect; rundown warehouses and drafty lofts are de rigueur for working creatives, after all. Still, McKee and her peers say the weed-choked berm and pool of “green slime” are daily reminders of a promise that has gone unfulfilled for 13 years.

The artists thought they had carried the day back in 2010, when a <a href="https://drive.google.com/file/d/15B3RLkgvS7kzXSXNCVcnhdmd0nfw2YJI/view?ts=61c118a7">community benefit agreement</a> between the San Francisco Office of Community Investment and Infrastructure (OCII) and developer Five Point Holdings LLC was finalized. The deal was part of a massive plan to turn the decommissioned Naval Shipyard and some surrounding land into thousands of homes and commercial space.

The artists thought they had carried the day back in 2010, when a <a href="https://drive.google.com/file/d/15B3RLkgvS7kzXSXNCVcnhdmd0nfw2YJI/view?ts=61c118a7">community benefit agreement</a> between the San Francisco Office of Community Investment and Infrastructure (OCII) and developer Five Point Holdings LLC was finalized. The deal was part of a massive plan to turn the decommissioned Naval Shipyard and some surrounding land into thousands of homes and commercial space.

FivePoint promised a brand new building of art studios, a lot for the construction of an art center where the Shipyard Artists might host exhibitions and performances, and various other upgrades to the artists’ facilities.

FivePoint promised a brand new building of art studios, a lot for the construction of an art center where the Shipyard Artists might host exhibitions and performances, and various other upgrades to the artists’ facilities.

“It seemed like a huge victory,” Barbara Ockel, who joined the Shipyard Artists community in 1984, said. “That cemented the artists’ existence out here, which up to that point had been in question.”

“It seemed like a huge victory,” Barbara Ockel, who joined the Shipyard Artists community in 1984, said. “That cemented the artists’ existence out here, which up to that point had been in question.”

But as the years dragged on and the first cluster of 88 condos on the hill overlooking Building 101 were <a href="https://www.bizjournals.com/sanfrancisco/feature/structures/2014/lennar-urban-selling-at-san-francisco-shipyard.html">completed and sold in 2014</a>, the artists didn’t see much movement on their promised slice of the development. Now, with the entire project mostly stalled due to a botched clean-up of radioactive waste, they are still waiting.

But as the years dragged on and the first cluster of 88 condos on the hill overlooking Building 101 were <a href="https://www.bizjournals.com/sanfrancisco/feature/structures/2014/lennar-urban-selling-at-san-francisco-shipyard.html">completed and sold in 2014</a>, the artists didn’t see much movement on their promised slice of the development. Now, with the entire project mostly stalled due to a botched clean-up of radioactive waste, they are still waiting.

“I think that we’ve been very patient,” said McKee.

“I think that we’ve been very patient,” said McKee.

A lake filled with glowing green substance and water, falling fences, and large mounds of dirt are among the complaints of artists who work in the Hunter’s Point shipyard studios. | Camille Cohen

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/01/ShupyardStudios-10.jpg" alt="" class="wp-image-29045"/><figcaption>A stagnant pool filled with &#8216;green slime,&#8217; crooked fences obstructing access to Building 101 and a large mound of dirt are among the complaints of artists who work in the Hunters Point shipyard studios. | Photo by Camille Cohen</figcaption></figure>

core/image

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/01/ShupyardStudios-10.jpg" alt="" class="wp-image-29045"/><figcaption>A stagnant pool filled with 'green slime,' crooked fences obstructing access to Building 101 and a large mound of dirt are among the complaints of artists who work in the Hunters Point shipyard studios. | Photo by Camille Cohen</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/01/ShupyardStudios-10.jpg" alt="" class="wp-image-29045"/><figcaption>A stagnant pool filled with &#8216;green slime,&#8217; crooked fences obstructing access to Building 101 and a large mound of dirt are among the complaints of artists who work in the Hunters Point shipyard studios. | Photo by Camille Cohen</figcaption></figure>

Some of the promised upgrades have been made and others are underway, but the most crucial part of the project—the new studios building—is on hold indefinitely as the developer and government agencies wrangle with lawsuits and the challenge of ensuring the site is clean. No one—from FivePoint, to OCII, to the Navy—seems to be able to tell the artists when work might resume.

Some of the promised upgrades have been made and others are underway, but the most crucial part of the project—the new studios building—is on hold indefinitely as the developer and government agencies wrangle with lawsuits and the challenge of ensuring the site is clean. No one—from FivePoint, to OCII, to the Navy—seems to be able to tell the artists when work might resume.

The pile and the fence have made Building 101 cumbersome to access for both the artists and their would-be customers. Musicians with heavy gear and painters with massive canvases often have no easy path when moving things from their studios to their vehicles.

The pile and the fence have made Building 101 cumbersome to access for both the artists and their would-be customers. Musicians with heavy gear and painters with massive canvases often have no easy path when moving things from their studios to their vehicles.

And then there’s the dust. “When the wind blows, dirt and dust blow right into artists’ studios,” Ockel said. “Artists cannot open their windows for fresh air or ventilation.”

And then there’s the dust. “When the wind blows, dirt and dust blow right into artists’ studios,” Ockel said. “Artists cannot open their windows for fresh air or ventilation.”

Ockel, who currently serves as board president for Shipyard Trust for the Arts—or STAR, which advocates for Hunters Point Shipyard Artists and supports other community causes—has been working to get the pile of debris moved since 2019.&nbsp;She says she’s been shrugged off by city officials and that her letters to FivePoint have garnered little more than <a href="https://www.shipyardartists.com/wp-content/uploads/2021/07/Five-Point-Response-Letter-marked-by-STAR.pdf">buck-passing</a> responses. FivePoint declined to comment on this story.

Ockel, who currently serves as board president for Shipyard Trust for the Arts—or STAR, which advocates for Hunters Point Shipyard Artists and supports other community causes—has been working to get the pile of debris moved since 2019.&nbsp;She says she’s been shrugged off by city officials and that her letters to FivePoint have garnered little more than <a href="https://www.shipyardartists.com/wp-content/uploads/2021/07/Five-Point-Response-Letter-marked-by-STAR.pdf">buck-passing</a> responses. FivePoint declined to comment on this story.

Sally Oerth, interim executive director of the Office of Community Investment and Infrastructure—the successor agency to the former San Francisco Redevelopment Agency—said she understands Ockel and McKee’s vexation.

Sally Oerth, interim executive director of the Office of Community Investment and Infrastructure—the successor agency to the former San Francisco Redevelopment Agency—said she understands Ockel and McKee’s vexation.

“All parties are frustrated,” Oerth said, before placing the blame for all the delays squarely on the <a href="https://www.sfchronicle.com/bayarea/article/Report-Navy-altered-Hunters-Point-cleanup-to-14302320.php">Navy and Tetra Tech EC</a>—the contractor hired by the Navy to clean up the Hunters Point Shipyard. In 2017, a whistleblower report revealed that Tetra Tech EC employees had falsified reports and doctored dirt samples. “All development is going to be paused until the Navy testing can be completed,” she said.

“All parties are frustrated,” Oerth said, before placing the blame for all the delays squarely on the <a href="https://www.sfchronicle.com/bayarea/article/Report-Navy-altered-Hunters-Point-cleanup-to-14302320.php">Navy and Tetra Tech EC</a>—the contractor hired by the Navy to clean up the Hunters Point Shipyard. In 2017, a whistleblower report revealed that Tetra Tech EC employees had falsified reports and doctored dirt samples. “All development is going to be paused until the Navy testing can be completed,” she said.

Derek Robinson, the Navy&#8217;s environmental coordinator for Hunters Point, said in a statement that the land underneath Building 101 and the dirt pile are clean.

Derek Robinson, the Navy's environmental coordinator for Hunters Point, said in a statement that the land underneath Building 101 and the dirt pile are clean.

Derek Robinson, the Navy&#8217;s environmental coordinator for Hunters Point, said in a statement that the land underneath Building 101 and the dirt pile are clean.

A Creative Community Disrupted

<h5 class="wp-block-heading">A Creative Community Disrupted</h5>

<h5>A Creative Community Disrupted</h5>

For the Hunters Point Shipyard Artists, the site has been a communal hub, home office and storefront for going on 40 years.

For the Hunters Point Shipyard Artists, the site has been a communal hub, home office and storefront for going on 40 years.

Originally built by the Hunters family in 1870, the shipyard was acquired by the Navy in 1941 and served as an active base until Congress ordered it decommissioned in 1974. The Navy then leased the property to a commercial ship repair company, which in turn subleased a warehouse space to an artist named Jacques Terzian. In the early ’80s, the late Terzian began subleasing his own space to other artists, and the site has remained an affordable haven for creatives ever since. According to the Shipyard Artists’ website, the community has around 300 members and is the largest of its kind in the country.

Originally built by the Hunters family in 1870, the shipyard was acquired by the Navy in 1941 and served as an active base until Congress ordered it decommissioned in 1974. The Navy then leased the property to a commercial ship repair company, which in turn subleased a warehouse space to an artist named Jacques Terzian. In the early ’80s, the late Terzian began subleasing his own space to other artists, and the site has remained an affordable haven for creatives ever since. According to the Shipyard Artists’ website, the community has around 300 members and is the largest of its kind in the country.

But the shipyard, and nearby Candlestick Point, also represent a final frontier of sorts for San Francisco real estate. It is one of the few places in the city with enough open land for a massive development, and San Francisco politicians, urbanists and developers have been eyeing the area since the ’90s.

But the shipyard, and nearby Candlestick Point, also represent a final frontier of sorts for San Francisco real estate. It is one of the few places in the city with enough open land for a massive development, and San Francisco politicians, urbanists and developers have been eyeing the area since the ’90s.

The first phase of the development—helmed by FivePoint sibling company the Lennar Corporation—<a href="https://www.bizjournals.com/sanfrancisco/stories/2005/06/27/focus7.html">kicked off in 2005</a>. FivePoint has been in charge of the second phase of the project, which began in earnest around 2010. Upon completion, the two phases promise to bring thousands of new homes and hundreds of thousands of square feet of commercial space to the south-eastern corner of San Francisco.

The first phase of the development—helmed by FivePoint sibling company the Lennar Corporation—<a href="https://www.bizjournals.com/sanfrancisco/stories/2005/06/27/focus7.html">kicked off in 2005</a>. FivePoint has been in charge of the second phase of the project, which began in earnest around 2010. Upon completion, the two phases promise to bring thousands of new homes and hundreds of thousands of square feet of commercial space to the south-eastern corner of San Francisco.

Though they’ve grown increasingly upset with the way they’ve been treated during the planning and development, Ockel and McKee said they do not see the Hunters Point development as incompatible with their community.&nbsp;

Though they’ve grown increasingly upset with the way they’ve been treated during the planning and development, Ockel and McKee said they do not see the Hunters Point development as incompatible with their community.&nbsp;

Not all the artists agree. Jack Hain, a lawyer now living in Santa Cruz and a member of the Shipyard Artists from about 2008 to 2014, said he never believed FivePoint had the best interests of the artists in mind. By way of example, Hain recalled, the cluster of buildings where he worked had no heat or running water for the entirety of his tenure at the shipyard. According to Ockel and McKee, those buildings are still without both basic amenities.

Not all the artists agree. Jack Hain, a lawyer now living in Santa Cruz and a member of the Shipyard Artists from about 2008 to 2014, said he never believed FivePoint had the best interests of the artists in mind. By way of example, Hain recalled, the cluster of buildings where he worked had no heat or running water for the entirety of his tenure at the shipyard. According to Ockel and McKee, those buildings are still without both basic amenities.

<h5 class="wp-block-heading" id="h-no-accountability">No Accountability</h5>

<h5 id="h-no-accountability">No Accountability</h5>

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Hunters Point Shipyard artists were promised a new building. They got a pile of dirt instead

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