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Mayor Lee Announces First Major Transfer of Treasure Island/Yerba Buena Island From U.S. Navy to City

Transfer of Land Marks Official Start to Redevelopment of Treasure Island/Yerba Buena Island to Build New Homes & Transform Neighborhood

San Francisco, CA—Mayor Edwin M. Lee today announced that the City has accepted the transfer of nearly 300 acres of Treasure Island/Yerba Buena Island from the U.S. Navy in anticipation of the redevelopment that will create 8,000 homes, 25 percent of them affordable, and jobs and parks and open space. The transformation of the former naval base is one of the most important development projects in the City’s history.

“The U.S. Navy’s transfer of land to the City marks a major milestone in the redevelopment and revitalization of Treasure Island,” said Mayor Lee. “It’s taken almost two decades to get to this point, and we’re eager to transform this former naval base into a vibrant community with more housing, jobs and economic opportunities for our residents. I thank leaders such as Senator Dianne Feinstein, Democratic Leader Nancy Pelosi, Navy Secretary Ray Mabus, and Lieutenant Governor Gavin Newsom for providing the necessary leadership to undertake this transformative process for our City.”

“Creating new housing, especially affordable housing, as part of what will be a sustainable, transit-oriented development will revitalize Treasure Island and strengthen the economic and cultural vitality of the San Francisco community,” said House Democratic Leader Nancy Pelosi. “That is why I was proud to help resolve years of stalemate and be part of crafting a fair agreement in 2010 between the Navy and our City that led to today's transfer. I will continue to lead in the Congress along with our local and federal partners in the effort to secure the necessary funding to continue cleaning up and transferring parcels on Treasure Island, as well as ensure long-term monitoring to ensure the health and safety of its residents.”

“With the transfer of Treasure Island to San Francisco, the promise of 8,000 new homes—2,000 of which will be affordable—and 300 acres of open space is one step closer to reality,” said Senator Dianne Feinstein. “I’m grateful to Nancy Pelosi, the Navy and the City and County of San Francisco for working collaboratively to move this critical project forward.”

The U.S. Navy officially conveyed 290 acres that encompass half of Yerba Buena Island and half of Treasure Island to the City’s Treasure Island Development Authority, which oversees the islands. All parcels being accepted have been fully remediated by the Navy. The Navy also turned over 518 acres of submerged land surrounding the man-made island that was home to Naval Station Treasure Island until its closure in 1997. Additional, smaller transfers will be made over the next seven years.

In exchange for the land, the City and its development partner, Treasure Island Community Development, will pay the U.S. Navy $55 million over the next 10 years. The Navy could receive additional compensation based on the cash flow generated by the project.

In the years that the City has been preparing for redevelopment, Treasure Island and the adjoining Yerba Buena Island have become home to approximately 160 commercial tenants and support 660 households in former Navy housing. The U.S. Coast Guard and Job Corps operate programs on the two islands on property to be retained by the Federal government.

Plans for the redevelopment of Treasure Island and Yerba Buena Island include the construction of new infrastructure and public facilities, including roads, utilities and the creation of 300 acres of parks and open space. The mixed-use, high-density project will include up to 8,000 homes, 500,000 square feet of commercial, retail and office space, and up to 500 hotel rooms. A new ferry terminal supporting ferry service between Treasure Island to San Francisco will be the cornerstone of the islands’ transportation program.

Development on Treasure Island will be concentrated along the western edge of the island looking out towards the City and along the southeastern edge of the island adjoining an expanded Clipper Cove Marina with views of the new eastern span of the Bay Bridge and the East Bay hills. The entire community will be walkable, bikeable and built in accordance with the most current sustainability guidelines.

“This is a huge milestone for the program and clears the way for the redevelopment of the island to begin,’’ said Treasure Island Development Authority Director Robert Beck. “A great number of individuals have put in a tremendous amount of work over many years to make this possible.’’

Development of Treasure Island was approved unanimously by the San Francisco Board of Supervisors in 2011 and will be led by the City’s development partner Treasure Island Community Development, a partnership between Lennar Urban (a division of Lennar Corporation) and KSWM (members of KWSM include Kenwood Investments, Stockbridge Capital Group and Wilson Meany). Collectively, the development team has been responsible for many of California’s most innovative urban infill developments including new residential construction, large master planned communities, and historic renovations.

The City expects to begin transferring land to the development team later this year, at which time infrastructure work will begin.