MEDIA RELEASE

SAN FRANCISCO – On July 22, 2014, the Board of Supervisors approved the Schlage Lock Development project legislation introduced by Mayor Edwin M. Lee and Supervisor Malia Cohen on April 28, 2014. The legislation includes an amended Special Use District, Design for Development document, a new Open Space and Streetscape Master Plan and a development agreement for the Schlage Lock Development project with Universal Paragon Corporation (UPC). Mayor Edwin M. Lee signed the legislation today, which will become effective in 30-days and allow the project to move forward to its implementation phase.

Since its closure in 1999, the 20-acre former Schlage lock factory site has been a focal point of community advocacy and City efforts toward revitalizing Visitacion Valley. In 2009, the Planning Department, the San Francisco Redevelopment Agency and community members produced a Redevelopment Plan, only to have it rendered financially infeasible when the State of California eliminated redevelopment agencies in 2012. After two additional years of community process Mayor Lee, Supervisor Cohen, the Planning Department in collaboration with Office of Economic and Workforce Development and various City agencies, Universal Paragon Corporation (UPC), and the Visitacion Valley community finalized a revised Visitacion Valley/Schlage Lock project in order to transform the blighted site into a thriving, transit-oriented community that maximizes public amenities while ensuring the development will be financially feasible.

The plans and agreement will bring up to 1,679 housing units to the City, 15% of which will be permanently deeded as affordable and the rest within reach of middle income households based on the prevailing market affordability of the neighborhood, up to 46,700 square feet of retail including a full-service grocery store, at least two new well-designed parks, a fully restored historic building with space for community uses, transit accessibility, infrastructure and sustainability features. The site plan also includes the extension of the Visitacion Valley street grid into the Schlage Lock site and integrates the commercial backbone of the community, Leland Avenue, into the site. New buildings on the site will range from 57 feet to 86 feet in height.

Key provisions of the Development Agreement (DA) include:

• Vested right to develop for the 15-year term of the DA
• Requirement to commence Phase 1 within a specified time period and to include a full-service grocery store
• Requirement to provide a set of key community benefits and the following fees:
  • The Visitacion Valley Community Facilities and Infrastructure Fee
  • A “Transportation Fee Obligation” on all uses (notably residential) not currently subject to the Transportation Development Impact Fee (TIDF).
• In recognition of the loss of almost $50 million in tax increment subsidy to the project with the demise of Redevelopment, the provision of the following forms of public subsidy:
  • $2.9 million in-kind credit on Visitacion Valley Community Facilities and Infrastructure Fee for providing open space and restoring the historic Office Building
  • $5.3 million in-kind credit against the Transportation Fee Obligation for providing a variety of major improvements to the street and pedestrian network
  • Acquisition of two of the project’s open spaces by the Recreation and Parks Department
  • $1.5 million in Transportation support funding subsidy from MTA
  • $2 million in Proposition K funds from the Transportation Authority

The final project was unanimously endorsed by the Planning Commission on June 5, 2014 and by all other Boards and Commissions (SFMTA Board, RPD Commission, PUC Commission, and SFCTA Board) at subsequent public hearings. Construction could begin in 2015.

For more information on the Schlage Lock Development Project please visit: http://visvalley.sfplanning.org

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