City Hall
1 Dr. Carlton B. Goodlett
Place
San Francisco, CA 94102-
4689
City and County of San Francisco
Legislation Details
File #:
Version:
1
230063
Name:
Ground Lease and Loan Agreement - The Kelsey
Civic Center, L.P. - 100% Affordable Housing - 240
Van Ness Avenue - Ground Lease with Base Rent of
$15,000 - Loan Not to Exceed $24,684,459
Status:
Type:
Resolution
Passed
File created:
In control:
1/24/2023
Clerk of the Board
On agenda:
Final action:
2/24/2023
Enactment date:
2/24/2023
060-23
Enactment #:
Title:
Resolution 1) approving and authorizing the Director of Property and the Mayor’s Office of Housing
and Community Development (“MOHCD”) to enter into a Ground Lease for real property owned by the
City located at 240 Van Ness Avenue (“Property”) with The Kelsey Civic Center, L.P. for a lease term
of 75 years and one 24-year option to extend and an annual base rent of $15,000 (“Ground Lease”) in
order to construct a 100% affordable, 112-unit multifamily rental housing development affordable to
low-income households, including 28 units for people with disabilities who are eligible to receive home
and community-based services, and two resident manager units (the “Project”); 2) approving and
authorizing a Loan Agreement in an amount not to exceed $24,684,459 for a minimum loan term of 57
years (“Loan Agreement”) to finance the development and construction of the Project; 3) adopting
findings declaring that the Property is “exempt surplus land” pursuant to the California Surplus Lands
Act; 4) determining that the less than market rent payable under the Ground Lease will serve a public
purpose by providing affordable housing for low-income households in need, in accordance with
Administrative Code, Section 23.3; 5) adopting findings that the Project and proposed transactions are
consistent with the General Plan, and the eight priority policies of Planning Code, Section 101.1; 6)
authorizing the Director of Property to execute the Ground Lease and the Director of MOHCD to
execute the Loan Agreement, and make certain modifications to such agreements, as defined herein,
and take certain actions in furtherance of this Resolution, as defined herein; and 7) to authorize the
Director of Property and/or Director of MOHCD to enter into any additions, amendments, or other
modifications to the Ground Lease and the Loan Agreement respectively, that do not materially
increase the obligations or liabilities to the City and are necessary to effectuate the purposes of the
Ground Lease and the Loan Agreement or this Resolution.
Sponsors:
Mayor, Dean Preston, Ahsha Safai, Rafael Mandelman
Attachments:
1. Leg Ver1, 2. DRAFT Ground Lease, 3. DRAFT Amended & Restated Loan Agrmt, 4. DRAFT
Leasehold Deed of Trust, 5. DRAFT Dec of Restrictions & Affordable Housing Covenants, 6. DRAFT
Amended & Restated Secured Promissory Note, 7. Executed Exclusive Negotiating Rights Agrmt
113019, 8. BOS Reso No. 95-21 and Exchange and Conveyance Agrmt, 9. PLN Ntc Final Approval
SB 35 Proj 060321, 10. PLN GPR 012521, 11. Form 126 - Ground Lease, 12. Form 126 Loan Agrmt,
13. MOHCD Presentation 020823, 14. BLA Rpt 020823, 15. Cmte Pkt 020823, 16. Board Pkt 021423,
17. Form 126 final - Ground Lease, 18. Form 126 Final Loan Agrmt, 19. Leg Final
Action By
Date
Action
Result
Ver.
RECEIVED AND ASSIGNED
President
1/24/2023
1
RECOMMENDED
Budget and Finance Committee
2/8/2023
1
Pass
ADOPTED
Board of Supervisors
2/14/2023
1
Pass
RETURNED UNSIGNED
Mayor
2/24/2023
1