The mixed-use development seeking to transform the corner of Market and Jones with 304 new residences is officially moving forward—again.
This week, the Board of Supervisors voted unanimously to approve legislation allowing Shorenstein Residential, the developer of 1066 Market St., to provide the city with a land grant, in lieu of satisfying the typical affordable housing requirements.
Originally, Shorenstein Residential proposed making 12 percent (36) of the building's on-site units affordable, the city-required minimum. Though a public hearing drew crowds of Tenderloin residents and nonprofit service providers who objected to the market-rate development joining the primarily low-income neighborhood, the Planning Department approved Shorenstein's plan.
As expected, an appeal was filed. But rather than taking this argument to the Board of Supervisors, District 6 Supervisor Jane Kim struck a new deal with the developer: Instead of sticking to the existing affordable housing requirements, Shorenstein Residential would buy and gift the land at 101 Hyde St., which is home to a soon-to-be-demolished former post office, to the Mayor's Office of Housing. The city can then use the land to build 85 units of 100 percent affordable housing in the heart of the Tenderloin.
In addition to the $12.5 million land dedication, Shorenstein Residential has agreed to provide $6.5 million to a nonprofit developer, to cover activation of the property until it's demolished and pre-construction work.
Despite the uncertainty around the city's timeline for raising the additional funds needed to break ground on 101 Hyde, Tenderloin residents and service providers returned to the Planning Commission chambers earlier this month to offer full support for the revised affordable housing package. That cleared the way for the Board of Supervisors' approval this week, and the redevelopment of 1066 Market St. will now move forward.
Per the project website, construction at 1666 Market was originally slated to begin within the fourth quarter of 2016 and wrap up be the end of 2018. But with months of delays in gaining the final approval, that timeline will likely be pushed.