SAN FRANCISCO | Hunters Point - Page 2

Chicago2020 · #21 Posted **Aug 23, 2007, 1:33 AM**

Now that is what I call prime real estate

BTinSF · #22 Posted **Aug 23, 2007, 3:17 AM**

^^^Not so prime. Since WW II it has been a Navy shipyard and is burdoned by all the toxics that suggests. Even demolishing the existing structures is nightmarish given the asbestos and so on that they contain but the soil is also heavily contaminated.

tech12 · #23 Posted **Aug 23, 2007, 4:28 AM**

Even if redeveloped, there's still gonna be that giant mass of housing projects right in the middle of everything. Are there any plans for rebuilding them? Most are in horrrrrrrrrible condition. Something along the lines of Valencia Gardens, or Army and Harrison would be nice...

Although in the past it seems they've just torn them out, and left it at that. You can still see the outlines on the bare hillside on the south-easternmost side of the hill, where a bunch of them used to stand.

Also, I always wondered what the City's plan was, having a state-of-the-art stadium and new neighborhood, right next to the most concentrated pocket of poverty in SF...and the geography means that you would pretty much have to go right by the projects to get in or out. Can you imagine the potential robbery-fest this would present to certain unsavory individuals? You spend your life living in the most neglected and violent neighborhood in SF, and suddenly everyone is coming right to your doorstep. If you're one of those residents who makes a living off crime, you're going to have a good time. What was SF's plan, if an Olympic Village were to be built here? The world would get a glimpse at the ugly truth of SF's poor population......how was the city planning to hide all this?

Even with gentrification, the projects will still be there. It'll become more like the western addition I guess... Projects surrounded by relative wealth, instead of industrial wasteland...

And I can just see the tension rising. You live in HP, long neglected, and all of a sudden everyone wants to move into your backyard? All of a sudden, you're an outcast in your own neighborhood, even though 5 years before, no one would set foot within a mile of where you lived.

It always seemed a little wierd to me, unless there's something I'm missing...

roadwarrior · #24 Posted **Aug 24, 2007, 9:31 PM**

Quote:

Originally Posted by tech12

Even if redeveloped, there's still gonna be that giant mass of housing projects right in the middle of everything. Are there any plans for rebuilding them? Most are in horrrrrrrrrible condition. Something along the lines of Valencia Gardens, or Army and Harrison would be nice...

Although in the past it seems they've just torn them out, and left it at that. You can still see the outlines on the bare hillside on the south-easternmost side of the hill, where a bunch of them used to stand.

Also, I always wondered what the City's plan was, having a state-of-the-art stadium and new neighborhood, right next to the most concentrated pocket of poverty in SF...and the geography means that you would pretty much have to go right by the projects to get in or out. Can you imagine the potential robbery-fest this would present to certain unsavory individuals? You spend your life living in the most neglected and violent neighborhood in SF, and suddenly everyone is coming right to your doorstep. If you're one of those residents who makes a living off crime, you're going to have a good time. What was SF's plan, if an Olympic Village were to be built here? The world would get a glimpse at the ugly truth of SF's poor population......how was the city planning to hide all this?

Even with gentrification, the projects will still be there. It'll become more like the western addition I guess... Projects surrounded by relative wealth, instead of industrial wasteland...

And I can just see the tension rising. You live in HP, long neglected, and all of a sudden everyone wants to move into your backyard? All of a sudden, you're an outcast in your own neighborhood, even though 5 years before, no one would set foot within a mile of where you lived.

It always seemed a little wierd to me, unless there's something I'm missing...

I actually think that the developments will minimize the problems of this neighborhood, not amplify it. You can see it happening already with the construction of the 3rd Street Light Rail. People are slowly getting pushed out while this neighborhood begins to gentrify. Now, its not going to be perfect, and I'm not sure if I'd want to live there, but increased wealth will mean things such as new stores/restaurants overtaking abandoned lots, additional police in the area and more scrutiny in general.

BTinSF · #25 Posted **Nov 30, 2007, 6:28 PM**

Quote:

Lennar gets to the Point
Bruised developer pushes ahead on shipyard housing
San Francisco Business Times - by J.K. Dineen

Lennar Corp. is poised to break ground next spring on the first wave of housing in the former Hunters Point Shipyard, despite being among the homebuilders slammed hardest by the national mortgage crisis.

The Florida-based home-builder will open a sales office and start construction in 2008 on the project's first 82 units, a tiny fraction of the 1,600 units planned for the first phase, according to Kofi Bonner, president of Lennar's urban land division.

While modest, the first vertical construction will be a "seminal moment" for a corner of the city that has seen little investment since the Navy shipyard was shut down in 1974, said Bonner.

"It's going to be a happy event to see those houses going up and the hill taking shape," said Bonner.

Happy events have been few and far between in recent months for Lennar. In 2007, Lennar has seen its stock price wither from highs of $56 on Feb. 2 to recent lows of $14. The company has laid off 25 percent to 35 percent of employees in most markets, including San Francisco, where about 10 project managers were let go in November. Companywide, Lennar's housing starts in 2007 are down 62 percent from last year, according to an SEC filing. The builder recently postponed construction on 1,500 units in Irvine.

Lennar declined to comment on the layoffs out of respect for its current and former employees, but said the company "remains committed to its San Francisco-area projects."

In a statement, the company said: "Lennar, like other developers, continually assesses its operations and makes adjustments to meet changing market dynamics."

Spreading risk

With some 20,000 housing units in the development pipeline at Hunters Point, Treasure Island and Candlestick Point, Lennar will arguably be San Francisco's biggest and most important housing builder over the next 10 years. The developer has taken gamble on some of the city's most challenging sites, agreeing to invest billions of dollars to create new neighborhoods in a sectors of the city plagued by crime and pollution.

In addition to 1,600 housing units at Hunters Point, the first phase includes 20 acres of new parkland, 20,000 square feet of retail. Some 30 percent of the housing will be for sale below typical market prices; even the market-rate units will be relatively affordable for San Francisco, averaging between $485,000 to $700,000. The first homeowner would move by the end of 2009.

Lennar is investing $90 million in infrastructure, environmental remediation and grading for the 63-acre phase one.

"That is $90 million before we get $1 million back," said Bonner.

Despite the layoffs and troubles with the subprime mortgage crisis in Florida and California's Central Valley, Lennar has shown a commitment to the San Francisco projects, according to Michael Cohen, head of real estate development and military base re-use for Mayor Gavin Newsom.

"The bottom line is you put your money where your mouth is, and Lennar is investing heavily every day in San Francisco," said Cohen.

And San Francisco is also hedging its bets, Cohen said. The city's exclusive negotiating agreement with Lennar requires the developer to take on development and equity partners for nearly every aspect of the project. Lennar has signed on Kimco Properties, one of the nation's largest retail developers. Engineering giant Mactec is also a partner on the project.

Bonner said Lennar is close to signing a deal with a housing developer for a chunk of phase one, but that the deal has not been consummated.

"It is our preferred business model to joint venture on everything we do," said Bonner.

Rentals rising

The weakening condo market has prompted Lennar to reconsider a type of housing it had initially rejected: rental apartments. Bonner said Lennar is talking to city officials about shifting some of the 10,000 housing planned units from condos to rentals. The move is likely to please some Bayview-Hunters Point residents, Bonner said.

"We were criticized two years ago when we felt the highest value would be obtained by building just condos," Bonner said. "It just so happens that the condo market is not strong, it's soft. And the apartment market is stronger. We would be silly not to take a look at that."

Lennar only builds for-sale housing, so rental housing specialists would be brought on to develop the apartments, Bonner said.

Cohen said the city has always pushed Lennar to build a diversity of housing types, with market-rate, affordable, rentals, condos, high-rise and townhouses. He said having both rentals and condos would create a livelier and more financially sound community.

"It tends to be the case that when one is ebbing the other is flowing," he said.

Bonner said once the first block of housing is started, the hope is to start another chunk of housing "every two or three months" depending on the market. Lennar hopes to complete about 300 condos a year and will proceed cautiously.

"You're better off not having homes out there sitting empty," said Bonner. "In a market like this, you have to be much smarter about how you build. You have to be very clear how you are putting your dollars out."

Voters weigh in

Meanwhile the city and Lennar are going to the voters in June with a ballot initiative that would gauge voters' support for phase two of the Hunters Point shipyard as well as Candlestick Point. The combined project would include 9,000 homes, a shoreline trail, 350 acres of parkland, 700,000 square feet of retail, a cleantech research and development campus and an artists' village to maintain and expand the artist community currently at Hunters Point.

It could also include a San Francisco 49ers stadium, a possibility very much up in the air as the football team is negotiating to build a stadium in Santa Clara.

The measure would replace and update a proposition city voters passed in 1997.

"The good news is we have an unbelievably compelling story to tell about open space and jobs and affordable housing," said Cohen.

John Stewart, chairman of the John Stewart Co., which is hoping to build 700 units of public housing and condos next to the Lennar project, said the builder would survive the downturn.

"Everybody is getting hammered on the subprime. Do I think Lennar will weather it? Sure," said Stewart.

He said the first housing to appear on the side of the hill would make it easier for both his company and Lennar to attract other investors.

"It shows people there is change," he said. "Bankers look at it and see old broken-down public housing or an old base that was a Super Fund site, but isn't any more. It's hard for people to envision change, particularly positive change. They can see things going bad but not well."

jkdineen@bizjournals.com / (415) 288-4971

Source: http://www.bizjournals.com/sanfranci...ml?t=printable

San Frangelino · #26 Posted **May 18, 2008, 2:57 AM**

From http://sf.curbed.com/archives/2008/0...using.php#more

Quote:

CurbedWire Late Edition: Lennar Corp. Agreement Allows for More Affordable Housing
Friday, May 16, 2008, by Sarah Hromack

HUNTERS POINT—Paging Chris Daly: Developer Lennar Corp. is playing for keeps on the affordable housing front. From the press release issued by the SF Labor Council:

The San Francisco Labor Council, along with its community and interfaith partners, ACORN (Association for Community Organizations for Reform Now) and SFOP (San Francisco Organizing Project) have reached a groundbreaking agreement with Lennar Urban that provides the largest creation of affordable housing of any new development in the city’s history.

Under the agreement, a total of approximately 3,500 new homes that are affordable to very low-income and working families will be constructed in the Hunters Point Shipyard – Candlestick Point and throughout District 10. The vast majority will be constructed as part of the mixed-use development project; in addition, Lennar has committed $27.3 million to provide hundreds more affordable homes throughout District 10. Lennar has also agreed to provide $8.5 million for workforce training.

San Francisco Labor Council & Allies to Sign Historic Community Benefit Agreement with Lennar Corporation

Agreement will create 3,500 units of New Housing Affordable to very low-income and Working Families

What: The San Francisco Labor Council, along with its community and interfaith partners, ACORN (Association for Community Organizations for Reform Now) and SFOP (San Francisco Organizing Project) have reached a groundbreaking agreement with Lennar Urban that provides the largest creation of affordable housing of any new development in the city’s history.

Under the agreement, a total of approximately 3,500 new homes that are affordable to very low-income and working families will be constructed in the Hunters Point Shipyard – Candlestick Point and throughout District 10. The vast majority will be constructed as part of the mixed-use development project; in addition, Lennar has committed $27.3 million to provide hundreds more affordable homes throughout District 10. Lennar has also agreed to provide $8.5 million for workforce training. Labor, ACORN and SFOP have endorsed Proposition G on the June 3rd ballot and are recommending a no vote on a rival measure, Proposition F.

“We looked at Proposition G carefully and did our homework,” said Tim Paulson, Executive of the San Francisco Labor Council. “This is the best deal for working families, for the Bayview community and for the city of San Francisco. Proposition G offers real jobs, real hope and a true vision for Bayview-Hunters Point. At the end of the day, Proposition F represents a dead end that would subvert a decade of community planning. It is meant to repel progress, not encourage it, and would set a bad precedent for San Francisco.”

“We look forward to working with Lennar, the Citizens Advisory Committee, and the Project Area Committee in a progressive partnership to ensure that the needs of the Bayview community are addressed,” added Paulson.

Additional details regarding the historic agreement will be provided to the public and news media at this event.

When: Tuesday, May 20, at 1:30 pm, San Francisco Labor Council, 1188 Franklin Street, 2nd Floor

Who: Attendees will include Mayor Gavin Newsom, Tim Paulson, Executive Director of the San Francisco Labor Council and representatives from the Association for Community Reform Now (ACORN), the San Francisco Organizing Project (SFOP), tenant leaders from Alice Griffith public housing project, Carpenters Union Local 22, Plumbers Union Local 38, among others. Leaders from the Bayview-Hunters Point community are also scheduled to appear including representatives from the Citizens Advisory Committee and Project Area Committee.

San Frangelino · #27 Posted **May 18, 2008, 3:07 AM**

I got these shots from http://www.sfgov.org/site/sfra_page.asp?id=5588.

It would be worthwhile downloading and looking through the whole document.

POLA · #28 Posted **May 18, 2008, 6:23 PM**

3500 affordable units seperated from the city. sounds like a great way to make a permanent slum.

Reminiscence · #29 Posted **May 19, 2008, 4:53 AM**

Sounds like a good idea in my opinion. However, the sheer size and magnitude of this proposal has me scared of the consequenses should it prove to be a failure.

Gordo · #30 Posted **May 19, 2008, 3:26 PM**

Quote:

Originally Posted by POLA

3500 affordable units seperated from the city. sounds like a great way to make a permanent slum.

I dunno, it's 3500 of a total of 9000 units, and "affordable" of today does not equal the "projects" of the past. I haven't seen mention of the exact breakdown of these affordable units, but I'm sure most are 80-120% of AMI, which is pretty damn middle class.

northbay · #31 Posted **May 19, 2008, 4:21 PM**

Quote:

Originally Posted by POLA

3500 affordable units seperated from the city. sounds like a great way to make a permanent slum.

is it really that separated from the city? the new third street line is not that far is it? im sure a bus/shuttle combo could work to serve the area, or perhaps a streetcar loop could extend from one of the stations to serve the stadium as well

but im dreaming (transit aside, the plan doesnt look too bad, just maybe bland)

POLA · #32 Posted **May 19, 2008, 5:50 PM**

Quote:

Originally Posted by Reminiscence

Sounds like a good idea in my opinion. However, the sheer size and magnitude of this proposal has me scared of the consequenses should it prove to be a failure.

That's what I'm scared of too. But I will hope for the best.

BTinSF · #33 Posted **May 19, 2008, 5:56 PM**

It's no more separated from the city than any suburb you care to name and it does have the T-Third not far so that almost makes is a "streetcar suburb" of the sort about which we like to think positive thoughts. I mean Redwood City is "separated from the city" too--by a lot more.

And I see nothing to be scared of. This land is now and has long been wasteland--really nasty brownfields. As long as it is developed in private hands and there's a substantial component of for-sale housing, I don't see how it could be a failure compared to what's there now. The worst I can think of is Park Merced II and even PM I now seems to have a future.

Finally, if there's anyplace in SF you can do "affordable" housing--meaning stuff our cops and nurses and even (gasp!) teachers can afford, this is the place to do it because the value of the land cost is relatively low.

peanut gallery · #34 Posted **May 23, 2008, 6:29 AM**

There was a big article on Hunter's Point in today's Chronicle. I won't post the whole thing because it's pretty long and there wasn't anything really new in it -- just a recap of the situation and the competing propositions related to it.

My only comment is that it's utterly preposterous that Chris Daley wants to scuttle a real proposal from a real developer who will include 32% affordable housing and rebuild a housing project, just so he can push for 50% affordable housing. 50%!!! That's so beyond unheard-of that you can't even see unheard-of from where Chris must be standing. Since there is no real proposal to redevelop this land under that requirement and never will be, we can be assured that Hunter's Point will remain as is forever if his proposition passes. What a great monument to Chris Daley that will be.

BTinSF · #35 Posted **May 27, 2008, 11:39 PM**

Quote:

Lennar Plans Are Tough Sell in San Francisco
Builder Envisions New Homes, Shops, But Voters Have Say
By MICHAEL CORKERY
May 27, 2008; Page B1

Lennar Corp., one of the country's largest home builders, has been suffering for months from slow sales, plummeting prices and other pains from the worst housing crisis in decades. But none of this quite compares to the trials of San Francisco's land-use approval process.

Lennar Corp.'s redevelopment plans for Hunters Point have drawn protests in San Francisco (below).

Miami-based Lennar, which for more than 50 years has built mostly in U.S. suburbs, jumped headfirst into these rocky and politically charged waters in 1999, when it began negotiations with the city to develop 770 acres, the largest undeveloped site San Francisco. One of its biggest tests will come next week when city voters decide whether to approve what Mayor Gavin Newsom called "one of the most significant development projects in our history."

Lennar's development plan for the southeastern San Francisco neighborhood includes homes, retail shops, parks, biotech offices, a theater, a football stadium and a possible ferry terminal.

The company has agreed to pay the city a nominal amount for the site that includes the former Hunters Point Navy shipyard and Candlestick Point. In exchange, the city requires that Lennar allocate 400 acres for park and open space, a site for the San Francisco 49ers' new football stadium, if the team stays in town, and thousands of homes for low- and moderate-income residents. Lennar estimates that such stipulations will cost about $1.2 billion over the 10-year project.

But Lennar and its massive mixed-use plan for 10,000 homes has still become a magnet for criticism in a city infamous in real-estate circles for the power that activists have wielded against developers. The site abuts one of the city's historically African-American neighborhoods, where some residents -- who have seen many failed proposals since the shipyard closed in 1974 -- fear the project will force out low-income families. African Americans are a decreasing share of the city's population.

"When you develop in the suburbs you are developing in someone's backyard," says Emile Haddad, Lennar's chief investment officer. "When you develop in the urban core, you are developing in someone's living room. This is space that people feel like they own."

Lennar is looking to the project on San Francisco's Hunters Point Shipyard and other mothballed military properties in California as a way to expand its business beyond the suburban housing market. The builder is emerging as a player in the arena of megaprojects, where developers, such as Related Cos., are redeveloping land in Los Angeles and New York City into hotels, condos, shops and stadiums.

But Lennar's success at Hunters Point is far from certain, and may depend largely on its political acumen. In next week's vote, a deal-breaker could be the amount of housing that will be set aside for low- and moderate-income residents. Lennar has agreed that 32% of the rental and for-sale housing will be "affordable" and that it will donate $27.3 million for lower-income buyers to purchase homes. The affordable for-sale homes will be available for residents making between 80% and 160% of the area's median income, which is about $82,000 for a family of four in San Francisco, according to Lennar.

But a competing measure on the June 3 ballot demands that 50% of the units be designated affordable. Lennar calls that demand a "poison pill" and says it is prepared to walk from much of the proposed development if the measure is approved. The company has spent $3 million campaigning so far, including running local television and radio advertisements.

On May 20, the company announced it had cut a deal with many of the city's influential labor unions, which pledged to support the project after Lennar agreed to increase the affordable housing set-aside provision to 32% from 25% of the planned units and provide the additional $27.3 million.

The Hunters Point project could be a bright spot in Lennar's land portfolio. The San Francisco housing market remains one of the most robust in the country.

City Supervisor Sophie Maxwell, who represents the Bayview-Hunters Point neighborhood, says "the majority of people are for the project," which promises to improve shopping and transit to the area. "People feel this is our best chance for change."

But Lennar hit a rocky patch with some residents last summer after coming under fire from the Nation of Islam, which said that the dust kicked up from construction contained asbestos and was sickening children at its nearby school. One of Lennar's subcontractors had failed to properly monitor the air quality at the construction site for a time.

"Lennar nullified its trust with the community," says Christopher Muhammad, who heads the religious and community organization in San Francisco. "We are not against the development, we are against the rogue developer." Federal, city and state tests indicated that air quality wasn't dangerous.

"The very allegation that Lennar is a rogue developer is baseless," says Lennar spokesman Lance Ignon. "You have test results that utterly shut down his allegations.''

Even if the voters approve Lennar's measure, it could take another year before final approvals are completed. Lennar is lining up other equity investors and doesn't expect to start raising financing for the next phase until 2010. By then, Mr. Haddad says he expects credit markets may have improved.

Many city officials also have a lot riding on Lennar's plans, which they say will bring economic development to one of the city's poorest neighborhoods and help stem the exodus of working-class residents leaving because of high home prices. "It's everything that matters to me in what I want to achieve as mayor," Mr. Newsom says of the project.

Write to Michael Corkery at michael.corkery@wsj.com1

Source: http://online.wsj.com/article/SB121184575914021309.html

BTinSF · #36 Posted **Jun 4, 2008, 9:07 AM**

Well, it appears Prop G won handily and Prop F, Sup. Daley's measure that would have stopped it, was defeated: http://www.sfgate.com/cgi-bin/articl...07QK.DTL&tsp=1

Quote:

Voters' approval of Proposition G, which promises the largest San Francisco redevelopment project since World War II, means work is likely to get under way on plans to remake the Bayview-Hunters Point neighborhoods. Here's what comes next:
-- The proposed development is undergoing an environmental review that will analyze its impact on the surrounding neighborhood. The results will help determine the necessary infrastructure, transportation and other improvements needed in the area.
-- Over the next 15 months the city will negotiate a legally binding development agreement with developer Lennar Corp.
-- The plan will be reviewed by the San Francisco Planning Commission and the Board of Supervisors before any building can begin.

San Frangelino · #37 Posted **Jun 4, 2008, 6:04 PM**

Wow, I feel so suprised thatG won and F lost. So there is now a chance SF can become a "mega project city" in the next decade. Treasure Island, Transbay Terminal, Mission Bay/Seawall, Hunters Point/Candlestick, and lets not forget the Park Merced redevelopment plan. Maybe we'll "Dubia" the ring of the Bay (hmmm).

krudmonk · #38 Posted **Jun 4, 2008, 6:25 PM**

The city just handed most of the neighborhood to a single developer. Is that wise?

brian_b · #39 Posted **Jun 4, 2008, 6:27 PM**

Looks good for SF, but I'm really surprised that Lennar is part of it. I hope the binding negotiations listed above include a provision for someone else to take over when Lennar goes under.

BTinSF · #40 Posted **Jun 4, 2008, 6:55 PM**

Is it wise? It's not like there are builders clamoring to do lowrise developments like this in an inner city area and give the city what it's demanding in the way of affordable housing etc.

Lennar isn't going anywhere. As a matter of fact, the large national builders like Lennar may well emerge from this real estate "crisis" stronger than ever since many of the smaller independent builders they compete with will have gone under and they will have been able to acquire assets cheap. Lennar has $2.57 billion of debt and $1.09 billion of cash on their books. They also have $1.79 billion of operating cash flow which means their losses are write-downs of land and other assets, not cash losses. They are solvent and ready to take advantage of the situation, including the plum San Francisco is giving them.

Quote:

June 4, 2008, 12:33 pm
Home Builder Lennar’s San Francisco Treat
Michael Corkery reports:

Home builders Hovnanian Enterprises and Toll Brothers Inc. have had a tough week, reporting quarterly losses amid the suburban housing slump. But home builder Lennar Corp. was granted a gift from San Francisco voters on Tuesday night.

City voters soundly supported a measure that will allow the Miami-based builder to develop a sprawling, 770-acre property into housing, retail shops, offices and possibly a new stadium for the San Francisco 49ers (rendering at left). About 61% of the voters approved the Lennar project, (See local coverage on SFGATE.com) which will give the builder a massive foothold in the still robust San Francisco housing market.

What’s sweet for Lennar is that the builder is getting the land, which includes the former Hunters Point Navy shipyard (pictured at right), from the city for a nominal fee. (See “Lennar Plans are a Tough Sell in San Francisco.”) That means the company can tie up the property at a relatively low cost until it’s ready to start building houses. In exchange, the builder has agreed to provide thousands of affordable rental and for-sale homes as well as develop parks on the property, infrastructure and a site for the football stadium. The builder estimates such requirements will cost it about $1.2 billion over the 10-year project.

Lennar took some lumps from opponents to the project and spent more than $3 million campaigning to win over San Francisco voters. Voters shot down a competing measure on the ballot which would have required that 50% of the housing would be affordable. Lennar called that measure a “poison pill,” but has agreed to set aside 32% of the units for low and moderate income residents.

But a more difficult task may lay ahead for Lennar, as it raises financing for a project, which is described as one of the largest ever proposed for San Francisco. A Lennar official says when the builder is ready to start financing a big phase of the project in 2010, the credit markets will likely have improved.

H.P. today

Source: http://blogs.wsj.com/developments/20...ancisco-treat/