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Mayor Lee Announces More Than $250 Million Estimated Development Impact Fee Revenue For City Over Next Five Years

Funds from Fiscal Year 2017-2021 Will Invest in Transit, Complete Streets, Open Space, Childcare Facilities & Other Improvements in Growing Neighborhoods

Mayor Edwin M. Lee today announced over the next five years, more than $250 million of development impact fee revenue is expected to be invested in several neighborhoods, including Rincon Hill, Market Octavia, Eastern Neighborhoods (comprised of East SoMa, Western SoMa, the Mission District, Showplace Square/Potrero, and Central Waterfront), Transit Center District, Balboa Park and Visitacion Valley, including the Schlage Lock Master Development.

“The success of our new and growing neighborhoods depends on serious investments in infrastructure, like streets, transportation, open space and other long lasting improvements,” said Mayor Lee. “These development impact fees are necessary to build stronger communities and result in strengthening the City as a whole.”

The announcement comes after an informational presentation of the 2016 Interagency Plan Implementation Committee (IPIC) Report at today’s Planning Commission hearing. IPIC is comprised of staff members from various City agencies who oversee the implementation of Community Improvement Programs for six Area Plans. Area Plans are part of the City’s General Plan that addresses urban design, land use, and infrastructure. These Plans include Community Improvements Programs that identify specific transportation, open space, recreational, and public realm improvements through a community-based planning process. The IPIC Report provides annual status updates on these implementations and detailed descriptions of each infrastructure plan as they relate to projected development impact fees. Along with the IPIC, Citizen Advisory Committees for the Eastern Neighborhoods and Market Octavia Plans advise on how to spend revenue for the respective areas.

As San Francisco continues to experience a significant surge in development, largely as a result of the ongoing demand for housing and office space, fee revenue is larger than what had been projected in past years due to a combination of higher than anticipated development applications and projects moving through the pipeline faster than in previous years. Development impact fees are imposed upon development projects to mitigate the impacts caused by new development on infrastructure and community facilities.

Projects funded by this revenue stream range from small community based projects through the Eastern Neighborhoods and Market Octavia Community Challenge Grant Program to providing significant portions of major transit and streetscape projects.

“As our neighborhoods grow with new residents and jobs, so does the need for improved public infrastructure,” said San Francisco Planning Director John Rahaim. “This latest forecast guarantees that critical capital improvements, including transportation, complete streets, open space, and other services to accommodate existing and future growth will no longer be a plan, but reality.”

The following are some of the Projects described in the IPIC Report:

22nd Street Green Connections

San Francisco Planning completed Green Connections project in 2013, a multi-year effort to identify routes throughout the City that can connect residents and workers to open spaces, while providing opportunities for rethink street design in a more ecological way. As part of this effort, Planning staff, in partnership with the local community, proposed conceptual street designs through the Dogpatch neighborhood that would connect Warm Water Cove, located at the terminus of 24th Street at the Bay to the foot of Potrero Hill. Along this route are American Can, the 22nd Street neighborhood commercial district, and the 22nd Street Caltrain Station. For this 22nd Street project, improvements will be focused on the blocks between Illinois Street and Pennsylvania Avenue.

Use of Eastern Neighborhood Infrastructure Funds

IPIC has allocated $3.1M for this project from FY15 through FY17. Funds are available design, project management, other soft costs, along with construction. For FY17, an additional $1M has been allocated in addition to the $2.1M that had been allocated in previous years.

17th Street and Folsom Street Park

The 17th Street and Folsom Park project was conceived to help meet the recreational needs in the Mission District and the Eastern Neighborhoods. Both San Francisco Planning and the Recreation and Park Department had analyzed the Eastern Neighborhoods needs for new park and open space and found the 17th Street and Folsom Street an ideal location. The City received a grant for acquisition, design and construction of a new park in 2010. After community engagement, the City developed a conceptual design. The concept design includes a children’s play area, demonstration garden, outdoor amphitheater and seating, among other amenities. Construction is scheduled to begin in 2016.

Use of Eastern Neighborhoods Infrastructure Funds

So far, impact fee funds have contributed a total of $2,420,000 to the 17th Street and Folsom Street Park of the total $5.7M project costs. It is anticipated that the Recreation and Park Department will seek an additional $700,000 in Eastern Neighborhoods impact fees in the current fiscal year to shore up additional costs for this project.

Rincon Hill - Harrison Street Improvements

While Rincon Hill has a Master Streetscape Master Plan for all streets and intersections in the Plan Area; staff and the community have indicated that Harrison Street is the priority as the first project. Harrison Street currently has wide traffic lanes and 8’ sidewalks. Its association with the Bay Bridge traffic also creates an auto-dominated environment and adversely affects the public realm. Streetscape improvements for Harrison Street would run along both side of Harrison Street from First Street to Embarcadero Street. Improvements may include lane reduction and narrowing, sidewalk widening to 12’, bulb-outs on the south side (except on south west corner of Fremont Street), pedestrian lighting and new trees.

Use of Rincon Hill Infrastructure Funds

Harrison Street improvements are identified as the first priority in Streetscape improvements within the Rincon Hill Area Plan. Public Works will start design and engineering of this Street in FY15 with construction to follow on the heels of the Folsom Street project in spring of 2017.

Market Octavia

The Market Octavia Plan envisions a neighborhood that supports multiple transportation modes, and places particular emphasis on creating streets that are comfortable for pedestrians and cyclists. Several capital projects, such as the various improvements to Market Street intersections, seek to both make streets safer for pedestrians and create places for public life and activity.

Light Rail Service Enhancement

SFMTA has prioritized the use of impact fee funds for the purchase of one light rail expansion vehicle to increase service on the Muni Metro lines serving the Market & Octavia Area, which include Church Street and Van Ness stations. Use of Impact Fees The total cost of the light rail expansion vehicle is estimated at $5,250,000. This cost will be fully funded by impact fee revenue through an allocation of $3,265,910 in FY18 and of $1,984,090 in FY19.

Use of Impact Fees

The total cost of the light rail expansion vehicle is estimated at $5,250,000. This cost will be fully funded by impact fee revenue through an allocation of $3,265,910 in FY18 and of $1,984,090 in FY19.

Streetscape Enhancement Fund

The Market and Octavia Plan calls for pedestrian, bicycle, and streetscape improvements on key streets throughout the Plan Area. The Streetscape Enhancement Fund sets aside funding to enhance ongoing infrastructure projects that may not otherwise include pedestrian, bicycle, or greening improvements. The fund enables funds to be nimbly allocated when opportunities or particular needs arise, taking advantage of the efficiencies that come with conducting these improvements alongside repaving or larger construction projects. SFMTA will rely on the SEF in beginning in FY17 to pursue the following scope of work: Market Octavia Safety Improvements – Design and Construction Oak-Octavia-Laguna Safety Improvements – Construction » Octavia Boulevard Enhancement Project – Design, Environmental Review, Construction

Use of Impact Fees

IPIC proposes a revised and accelerated allocation of impact fee revenues to the SEF to fund the above scope of work, as per guidance from SFMTA. The FY17 allocation is increased to $1,350,000, with, $1,500,000 in FY18, and a final allocation of $2,250,000 in FY19.

Upper Market Pedestrian Improvements

Pedestrian Improvements on Upper Market will contribute to the SFMTA’s Upper Market Street Safety Project and be partially funded by impact fee revenue for work along Market Street extending from Octavia Boulevard to Noe Street. Improvements will include painted pedestrian safety zones, signal timing improvements, sidewalk improvements, and bicycle improvements including enhanced lanes and a separated cycle track in the outbound direction from Octavia Boulevard to Duboce Avenue.

For more information on the 2016 Interagency Plan Implementation Committee Report, go to: