New Stadium for 49ers, $500 million for Affordable Housing are secured
LENNAR $2 BILLION DEAL WITH SAN FRANCISCO ON CANDLESTICK BAYVIEW-HUNTERS POINT
http://www.sanfranciscosentinel.com/?p=17041
Nation, State suffer depression,
San Francisco has new hope for jobs, economic boom
A $2 billion agreement between the City of San Francisco and Lennar Corporation will finance the redevelopment of Candlestick Point and Hunters Point Shipyard and provide 7,500 permanent jobs, 10,000 new homes and 300 acres of parks and a site for the 49ers new football stadium.
“After many years of public input, we are excited to be advancing this project and progress in Bayview-Hunters Point,” said Kofi Bonner, President of Lennar Urban’s Bay Area division.
“In June, San Franciscans voted overwhelmingly in favor of this development. Today, this financing plan is proof of our commitment – in spite of these challenging economic conditions — to the vision of a new community in southeast San Francisco.”
The plan was approved this week by the joint Community Area Committee and Project Area Committee which is made up of representatives of the Bayview, Hunters and Candlestick Point communities.
The plan will now be presented to the San Francisco Redevelopment Agency and the Board of Supervisors in the coming weeks.
Lennar will contribute more than $500 million for the creation of 3,345 housing units – or nearly 32 percent of the residences planned for construction during the multi-year development, according to Bonner.
Lennar will offer to pay $100 million to the 49ers to help finance the cost of building a new stadium at Hunters Point Shipyard.
The environmental clean-up of the stadium site is scheduled to be performed in 2009, which would allow the 49ers to complete construction of a new stadium by 2013 if they accept Lennar’s offer.
Right now, the 49ers have no deal in Santa Clara to build a new stadium, but hope to have something on the ballot by late 2009. The 49ers do not have a deal with the Santa Clara City Council, nor have they announced any land, developer or financing plan for their alleged stadium plan in Santa Clara.
The National Football League is rumored to strongly favor San Francisco over Santa Clara and United States Senator Dianne Feinstein has publicly noted her support for the team staying in San Francisco.
Therefore, in summary, there is a real plan and financing for a stadium in San Francisco, and, conversely, absolutely no plan or money for a stadium in Santa Clara.
Most people would call this choice a ‘no brainer’ and accept the Lennar, San Francisco deal. As the old saying goes: “A stadium in hand in San Francisco is worth more than two stadiums in the bush-leagues.”
Lennar has pledged to also develop the 49ers new stadium site’s utility and transportation infrastructure and specialized grass parking lots, which will be used as athletic fields on non-game days.
This is a good plan for both the 49ers and the local community: instead of the stadium parking lots being blacktop and unused all year round, except on game days, the lots would become useable for soccer, baseball, basketball and other recreational activities for the community when not in use on Sundays by the team.
Additional key features of the Lennar development include:
– $29 million for home purchase assistance, nearly $9 million for workforce development, $3.5 million for scholarships and continuing education and a community directed Legacy Fund totaling $26 million over the life of the project.
– 600,000 square feet of regional retail space at Candlestick Point and 100,000 square feet of retail space to serve new neighborhoods at Hunters Point Shipyard.
– 2,150,000 square feet of office space to serve “green” business, science, technology, research and development and industrial uses.
– Rebuilding the Alice Griffith/Double Rock Housing Development.
– Creation of 7,500 permanent jobs.
– New permanent space for the Hunters Point Shipyard artist community and the International African Marketplace.
An environmental impact report is scheduled to be completed in April 2009 and public hearings will be held early next year on a formal development agreement for the project.
“This project allows the City of San Francisco to fulfill several priorities at once – improve Bayview-Hunters Point, keep the 49ers playing in the City and generate more park space and affordable housing at an unprecedented scale in city history,” Bonner said. “Working with the community and the City we look forward to turning this plan into a reality.”
To satisfy a requirement by San Francisco for economic diversification of the development, Lennar has joined with Hillwood Development and Scala Real Estate Partners to fund the project. This new partnership increases the overall financial strength of the development and shows it to be a fiscally sound investment, as determined by a third party auditor.
Hillwood and Scala have committed to long-term financing of the project. Their investment highlights the continued strength of San Francisco’s real estate market, where home values are holding despite a national downturn.
This good news from Lennar and Mayor’s office of the City of San Francisco could not come at a better time for San Franciscans. As the nation and state head into the worse economic period in past 70 years, this plan provides a “New Deal” for San Francisco that will provide much needed jobs, affordable housing, economic assistance and
The Lennar deal is important to every San Franciscan at this time in history. In San Francisco, we need the jobs and economic boost that this significant and historic community development will bring to our residents and our communities.
The deal is also important to the 49ers. As the team flails on the football field, in the front office, in Youngstown, Ohio, and elsewhere, accepting this offer from Lennar would be the best thing the team could do to help it restore some confidence in its fan base that the team is committed to the San Francisco Bay Area and will not leave when its ill-conceived Santa Clara plan falls apart for lack of funding, land and a development deal.
Let’s hope the 49ers say yes to this deal and to its loyal fan base in San Francisco. Right now, the team could use any positive publicity it can get. This would be a good start.