Resolution approving the Infrastructure Financing Plan for the San Francisco Enhanced Infrastructure Financing (EIFD) District No. 3 (3333/3700 California Street), including the division of taxes set forth therein, an EIFD Acquisition and Financing Agreement, and documents and actions related thereto, as defined herein; and authorizing the filing of a judicial validation action.

This resolution approves the Infrastructure Financing Plan (IFP) for the San Francisco Enhanced Infrastructure Financing District (EIFD) No. 3, covering major mixed-use developments at 3333 California Street and 3700 California Street. The EIFD is established to finance public capital facilities and other projects of community-wide significance, including affordable housing, over a 45-year term for each project area. Financing is solely from the City's property tax revenues, with 58.25% as "Allocated Tax Revenue" (irrevocable) and 41.75% as "Conditional Tax Revenue" (for debt service coverage, repayable with interest if used). Total projected Allocated Tax Revenue is ~$477.3 million, and Conditional Tax Revenue is ~$342.1 million over the term, with maximum limits of $955 million and $684 million respectively. The 3333 California Street Project (total $1 billion) will see **$253 million** in EIFD financing for demolition, public acquisition facilities, publicly accessible private open spaces, and the on-site Walnut Affordable Housing Building ($105 million for 185 units). The 3700 California Street Project (total ~$800 million) will receive **$98 million** in EIFD financing for demolition, public acquisition facilities, and off-site affordable housing via in-lieu fees. This project includes 456 new dwelling units, 74 institutional units, and a 4,812 sq ft restaurant. A fiscal impact analysis projects an ongoing annual net fiscal benefit of approximately $1.7 million to the City's General Fund and MTA Fund at buildout, even after diverting ~58% of incremental property tax to the EIFD. The projects involve Planned Unit Development (PUD) modifications for various zoning requirements and mandate significant streetscape improvements and a Transportation Demand Management (TDM) plan.

This plan facilitates two large-scale developments that will bring over 1,200 new housing units (including affordable senior housing) and significant public amenities like parks, open spaces, and childcare facilities to the city. Residents will benefit from enhanced public spaces, improved streetscapes, and increased housing options, while the city's General Fund is projected to see a net annual fiscal benefit of $1.7 million.

high