Meeting Intelligence Preview
Meeting Summary
The Budget and Finance Committee approved a $535 million earthquake safety and emergency response bond for the June 2026 ballot, funding seismic upgrades to fire stations, police stations, the emergency firefighting water system expansion to 47th Avenue and Cabrillo, and the Potrero Yard bus facility. The committee also approved infrastructure financing districts (EIFDs) for the 3333/3700 California Street projects (1,274 housing units) and the Stonestown development (3,500 housing units), enabling tax increment financing for infrastructure improvements.
Key Decisions (7)
$535M Earthquake Safety and Emergency Response Bond
Approved placing a $535 million general obligation bond on the June 2026 ballot for seismic retrofitting of emergency firefighting water system ($130M), fire stations ($100M), police stations ($72M), critical public safety repairs ($33M), and Potrero Yard bus facility ($200M). The bond will not increase property tax rates.
Capital Expenditure Plan Reporting Amendment
Changed the reporting requirement for capital expenditure plans from odd years to even years, with next report due March 1, 2028, to align with the change in mayoral elections from odd to even years.
EIFD for 3333/3700 California Street
Approved infrastructure financing plan for Enhanced Infrastructure Financing District Number 3 covering 3333 California Street (744 units, 125 affordable) and 3700 California Street (530 units including senior living). Developer Prado Group will receive approximately 50% of incremental property taxes over 40 years to fund $351 million in infrastructure improvements.
EIFD for Stonestown Development
Approved infrastructure financing plan for Enhanced Infrastructure Financing District Number 2 for Stonestown project by Brookfield Properties. The 27-acre development includes 3,500 housing units (20% affordable, at least 300 on-site), six acres of open space, childcare facility, and senior center. City will provide approximately $1.56 billion over 70 years to reimburse $438 million in infrastructure costs.
Film Rebate Program Modernization
Updated the Scene in San Francisco film incentive program to offer 10% rebate on first $1 million of qualified local spending, 20% on spending above $1 million, and 100% rebate on city fees. Cap raised from $600,000 to $1 million. Productions must spend minimum $500,000 ($250,000 for low budget) and shoot at least 5 days of principal photography in San Francisco.
SFO $9 Billion Bond Appropriation
Appropriated approximately $9 billion of proceeds from airport revenue bonds for capital improvement projects including Terminal 3 renovations, cargo and hangar improvements, parking improvements, and infrastructure projects. Debt service paid from airport revenues, not general fund.
Koshland Park Improvements Gift
Authorized Recreation and Park Department to accept $1.625 million in cash and in-kind grants from Trust for Public Land and the Jabal family for design and construction of improvements to Koshland Park community garden and park facilities in the Western Addition.
Development Activity (5)
3333 California Street
744 total units including 125 affordable units, new neighborhood childcare space, plazas, and connectivity upgrades
3700 California Street
530 total units including continuum of care senior living component
Stonestown Development
3,500 housing units (20% affordable, minimum 300 on-site), six acres of open space, childcare facility, senior center replacing YMCA senior center, new street network with protected bikeways. Development timeline through 2051.
Potrero Yard Modernization
Retrofit or replacement of seismically unsafe 110-year-old bus storage and maintenance facility serving 95,000 daily Muni riders. $200 million allocated from ESER bond.
Emergency Firefighting Water System Expansion
Expansion of emergency firefighting water system to underserved West Side areas, including new fireboat manifold at Fort Mason. $130 million allocated. Initial 1.7 miles from Lake Merced to Sloat going to bid later this year.
Market Signals (5)
Housing Demand
Over 20,000 entitled housing units in large development agreement projects are waiting to be built, indicating strong pipeline but execution challenges.
Infrastructure
Emergency firefighting water system construction costs have increased from $15 million per mile to $42 million per mile since 2019 bond.
Sentiment
Chair Chan expressed frustration that post-entitlement permitting delays are slowing approved projects like Stonestown, warning developers may not wait indefinitely.
Commercial Demand
Film production in San Francisco has declined significantly, with no TV series filmed since 2016-2017, prompting modernization of incentive program to compete with 120 global incentive programs.
Housing Demand
Koshland Park community garden has a waitlist of over 400 people, with some waiting as long as seven years, indicating strong demand for community amenities.