Treasure Island Development Program Item 8: Option to Lease Between - - PowerPoint PPT Presentation

Treasure Island Development Authority

Treasure Island Development Program

Item 8: Option to Lease Between TIDA and Swords to Plowshares - Parcel C3.2 March 14, 2018

Treasure Island Development Authority

Background

• Naval Station Treasure Island selected for closure and

disposition in 1993

• San Francisco negotiated Base Closure Homeless

Assistance Agreement and Option to Lease Real Property with Treasure Island Homeless Development Initiative – now One Treasure Island – a consortium of nonprofits whose members include:

• Community Housing Partnership
• Catholic Charities
• HealthRight360
• Swords to Plowshares

Treasure Island Development Authority

Other Project Documents

• Development Agreement
• Interagency Cooperation

Agreement

• Area Plan & Special Use District
• TIHDI Agreement
• Design for Development
• Design Review and Document

Approval Procedure

• Navy Conveyance Agreement
• Trust Exchange Agreement
• CEQA Findings

2011 Program Entitlement and Transaction Documents

Open Space Plan Jobs & Equal Opportunity Plan Community Facilities Plan Housing & Transition Plan Financing Plan Transportation Implementation Plan Sustainability Plan Infrastructure Plan Land Use Plan Disposition & Development Agreement

Treasure Island Development Authority

Housing Plan Requirements

• Housing Plan provides framework for the delivery of

Affordable Housing, including:

• 5% of units constructed by Treasure Island Community

Development to Inclusionary Affordable Units (~307 units)

• Identifies 20 parcels on which TIDA is to deliver the balance of

the affordable units (~1,866) including transition units for qualifying residents

• A minimum of 435 Affordable Units to be constructed by

One Treasure Island including transition units for existing residents of member agencies

Treasure Island Development Authority

First Development Opportunity

• First Parcel – C3.2 – proposed to be developed by

Swords to Plowshares

• Availability of Veterans Housing and Homelessness

Prevention (“VHHP”) Program funding to support the construction of affordable housing for veterans

• Recognizes Island’s history as military base
• Swords to Plowshares partnering on development with

Chinatown Community Development Center (CCDC)

• Secured a pre-development loan from the

Mayor’s Office of Housing and Community Development (“MOHCD”)

Treasure Island Development Authority

Veterans Housing and Homeless Prevention Program

• Notice of Funding Availability anticipated this spring
• Applicants must demonstrate site control through a

ground lease or option to lease

Treasure Island Development Authority

Key Terms

• Option Term: Through June 30, 2021 with 6 month extension option
• Ground Lease: Substantially in the form used by the MOHCD

for affordable housing projects

• Ground Lease Term: 99 years from construction completion
• Taxes/Assessments: All property taxes and assessments shall be

the responsibility of the tenant

• Property Use: Only for affordable housing. Notwithstanding any

units provided for Pre-DDA market rate households

• Rent: Annual Base Rent Fifteen thousand Dollars ($15,000.00),

subject to residual value analysis test

Treasure Island Development Authority

Key Terms

• Construction and Operation: Tenant to be responsible for all costs of

construction, maintenance and operation

• Fee Title: The Authority will retain fee title to the land and the

Optionee will hold fee title to all improvements – during the term

• f the lease
• End of Lease: Fee title to all the improvements shall vest with the

Authority, without any obligation by to compensate the tenant and without the necessity of a deed from the tenant to the Authority

Treasure Island Development Authority

Discussion