The entitlement process for the planned redevelopment of two aging piers and a nearby parking lot at the San Francisco waterfront into housing and a floating swimming pool in the bay is expected to kick off with a public hearing next month, following nearly three years of behind-the-scenes efforts to advance the plan amid growing economic turmoil. 

In January, development partners Strada Investment Group and Trammell Crow Co. are slated to seek the Port Commission’s approval of a term sheet, or a nonbinding agreement that lays out the basic terms and conditions and provides the framework for a future disposition and development agreement for the project, according to a memo issued by the commission’s staff this week.

And while the execution of this first transaction document represents a milestone in terms of advancing the project — which calls for transforming Piers 30-32 and Seawall Lot 330 into a swimming pool in the bay surrounded by office and retail space and hundreds of new homes — its developers are still facing a roughly $125 million financing gap, per the port’s memo. 

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The gap is a result of swelling project costs: The cost of the project’s infrastructure work alone has increased by over $90 million over the past three years. 

When the developers last appeared in front of the commission in early 2021 and were granted exclusive rights to negotiate their project with the Port of San Francisco, which owns the properties, infrastructure and required “resilience improvements” were expected to cost $369 million. 

The Port says that price tag has grown to about $460 million, which does not include vertical development. It is now working with the project’s developers to create special tax districts in the project area as one means to pay for construction. 

A rendering of the planned redevelopment of Piers 30-32 in San Francisco. The project is moving forward despite a significant funding gap.

Strada/TCC

The port selected Strada and Trammell Crow in 2020 through a competitive bid process to redevelop Pier 30-32 and Seawall Lot 330 — the latter is currently home to a navigation center for homeless people. A stipulation of the project was that the teams must fund sea level rise and seismic work at the piers and seawall and restore a deep water berth, located at the project site, for maritime uses. 

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The project’s design has been heavily modified in recent years in order to achieve compliance with state regulations, which may also have caused the financing gap to widen. The original plan called for an 850-unit residential complex on Seawall Lot 330 and the demolition of Piers 30-32. The developers wanted to rebuild the piers as two smaller finger piers at roughly half the size, with about 375,000 square feet of office space and 30,000 square feet of retail space. 

The project’s residential portion is envisioned to help subsidize the costs of the other components. Taken together, the infrastructure and resiliency work plus vertical construction has been estimated to cost about $1.2 billion. But, pushback from neighbors of the proposed residential complex resulted in the developers shaving 137 units off of its design, which earlier this year was reconfigured as a single, 713-unit tower that would rise 230 feet.

But even that design is not yet certain: Questions remain regarding whether the developers will be able to use the state density bonus law, which allows certain developments to exceed local height and bulk limits in exchange for an increase in the percentage of affordable housing, to achieve the building’s planned height, which exceeds local height limits. 

According to the port’s memo, the development team has “also designed a building with a maximum height of 105 feet, which would decrease the number of units and potentially negatively impact the funding gap and project affordability.” 

San Francisco’s Pier 30, as seen in 2020 when it was used as a COVID-19 testing site.

Noah Berger/Special to The Chronicle

Moreover, questions by state regulators over whether the proposed office space was consistent with the public trust doctrine — which governs the use of California’s sovereign waterfront properties and requires that they benefit the public and encourage maritime use — forced a redesign of the original plan for the piers as well.

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The issue sparked new legislation proposed by Sen. Scott Wiener, SB273, which essentially determined that the balance of the trust benefits that would be generated by the project justify the authorization to provide some general office space on the piers to help pay for those benefits.

In other words, the office space is designed to fund sea level rise and seismic work at the piers.

The legislation was signed into law in October, but even before then, the team scratched the idea of rebuilding both piers as office structures and now intends to rebuild one as a smaller pier with a single bay swimming pool equipped with a kayak launch and storage. The project would still include 375,000 square feet of office space, as well as a 70,000-square-foot retail market. A standalone aquatic recreation facility would serve as a gateway between the Embarcadero and the swimming pool.

Strada did not immediately respond to a request for comment Monday on its proposed term sheet for the project.

The term sheet is the next “performance benchmark” for the developers, and if the commission approves it next month, it would be followed by a “fiscal feasibility analysis,” the port said in its memo. The Board of Supervisors would be required to approve both documents, after which environmental review of the project may begin.

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Per the draft document, the project will be constructed in three phases and involve a ground lease between the port and developer, lasting 66 years for the piers and 99 years for Seawall Lot 330.The project’s performance schedule will also be laid out in the term sheet, but is currently still being negotiated.

On the financing front, the project will rely on a combination of public and private sources for the demolition and reconstruction of the piers and the required seawall improvements.

More specifically, the term sheet proposes forming both an Infrastructure Financing District around the project area to capture future tax increment and a Community Facilities District to levy special taxes on the buildings.

“Changes in market factors could substantially improve the financial feasibility of the Project, potentially fully eliminating this funding gap,” the port said in its memo, regarding the $125 million in needed financing. “If market factors do not improve, the Developer and Port staff will work to identify and secure sources to obtain at least this amount of funds to ensure the financial success of all phases of the Project.

“While the developer and staff have not identified the exact mix of funds to close the $125 million infrastructure feasibility gap at this time, the team feels confident it can secure these funds well ahead of the start of the Project,” the memo said.

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Other projects proposed along the waterfront in recent years, like Pacific Waterfront Partners’ redevelopment of nearby Piers 38-40 and the large-scale Pier 70 redevelopment project by Brookfield Properties, are also facing financial challenges due to high interest rates, significant demand for office and residential real estate in San Francisco, and rising construction costs.

Reach Laura Waxmann: laura.waxmann@sfchronicle.com

The post The plan for a large floating pool on S.F. piers is transferring ahead, regardless of large funding hole appeared first on DAILY SAN FRANCISCO BAY NEWS.

A floating pool has been proposed for the city of San Francisco, which will be the first public pool of its kind in the city and will bring a new type of aquatic experience to the Bay Area. Located on San Francisco Bay, the Olympic-size heated pool would float on Piers 30-32, currently used as parking lots and being remodeled as part of the project.

The proposed floating pool would be surrounded by retail space, offices and apartments, including a 725-unit residential tower, 25% of which would be affordable housing. San Francisco State Senator Scott Wiener proposed legislation in 2021 authorizing construction of the pool on the state-owned piers. The plan proposes a unique recreation and relaxation space while protecting the city’s waterfront from climate change and sea level rise.

The concept has faced challenges as previous attempts to revitalize the piers have been unsuccessful. Previous plans to convert the area into a stadium, museum and cruise terminal have failed. However, Wiener is optimistic that this project will succeed. He believes the previous plans failed because attempts were made to rehabilitate the piers while this project is building them from scratch. The success of the project is dependent on city, state and various other government approvals.

The floating pool would be built on one of the two piers while the other pier would be converted into 375,000 square feet of offices and 45,000 square feet of retail space. The swimming pool would provide space for swimming laps, playing water polo and lounging in a Jacuzzi. A section of the bay surrounding the pool will be dedicated to open water swimming, kayaking and paddleboarding.

The project, similar to the Plus Pool proposed for the East River in New York City, aims to create an attractive and sustainable space that enhances the waterfront and offers opportunities for new homes and public spaces shared by all can become.

The new plan for the project is a change from previous versions that emphasized commercial space on the piers and gave the impression of a large office park with a small waterfront recreation. The latest version of the project emphasizes swimming, with a focus on public access to the bay and views of the Bay Bridge. The plan now envisages the rebuilding of a single pier, with the remaining pier being converted into an Olympic-size swimming pool, a shallow pool for swimmers, a jacuzzi and shower facilities. Along the Embarcadero there would be an indoor market with food kiosks and craft stalls for manufacturers to sell their wares.

The project’s developers, Strada Investment Group and Trammell Crow, hope to attract bay swimmers with a cordoned-off area similar to the aqua park near Crissy Field. They plan to heat the pools, most likely using fresh water rather than the cold water pumped from the bay. The developers have also released new renderings of the piers, which are more public than previous plans.

The piers’ redevelopment plan aims to revitalize the Embarcadero and make it a more pleasant public experience. The project’s success depends on making the Embarcadero feel less like walking past a few office building lobbies and more like an appealing waterfront destination. The concept has undergone several changes based on feedback from state agencies, particularly those who regulate the waterfront. The changes reflect a desire to create a space that is more in tune with the natural surroundings, with a greater emphasis on public spaces and waterfront recreation.

The project faced several challenges, including the fact that the site where the project is to be built is owned by the state, meaning that special statutory approval would be required before a developer could build there. The project must also be approved by the city, state, and several other agencies.

Developers hope the floating pool will offer a unique aquatic experience in San Francisco, drawing locals and tourists alike to the Bay Area. The concept had strong support from San Francisco Mayor London Breed, who said the project would help the city invest in critical infrastructure that protects the coast from climate change and sea-level rise, while also opening up opportunities for new homes and would create new spaces for the public to enjoy along the city’s beautiful waterfront.

Photo credit: Strada Investment Group

The post Floating Swimming Pool Proposed For San Francisco Bay Space appeared first on DAILY SAN FRANCISCO BAY NEWS.

English

A massive new tower complete with “floating cube” could soon adorn San Francisco’s skyline.

The 62-story tower will feature 826 rental homes, with 135 listed as affordable. It will include 472 two-bedroom apartments, 118 three-bedroom units, 118 studios and 118 one-bedroom apartments.

Described as a “subtle glowing lantern” above SoMa by Arquitectonica, the Florida-based architect behind the project at 620 Folsom Street.

The site is between Hawthorne and 2nd streets on Folsom, is close to the Moscone Center and a short walk from the Montgomery Street BART Station.

The project description states: “The building’s scale supports the SoMa district’s ongoing transformation to a vibrant mixed-use neighborhood near transit services and employment opportunities.”

Renderings of 620 Folsom Street, the building would create over 800 homes for San Francisco. | Courtesy of Arquitectonica

The 54th floor, below where the “floating cube” section begins, will be a community space complete with a fitness center and workspaces. Within the cube itself will be residential floors.

The ground floor is set to include a cafe and bicycle parking, with a further 133 car parking spaces and over 300 bicycle spaces planned for underneath the tower.

Earthquake risk at the site is said to be “very low” according to a geotechnical investigation of the site by Rollo & Ridley.

So see

SF Planning published the plans on Wednesday, with an estimated build time of 36 months after demolition of the existing three-story office building at the site. The build is expected to cost at least $250 million.

The joint property owners are listed as McLaughlin Family Associates, LP, and 620 Folsom Development Partners LLC.

The plans were submitted by Align Real Estate and are yet to be approved by the Planning Commission. If approved, permits would have to be obtained before construction could go ahead.

English

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