Services of the San Francisco Pubiic Utilities Commission
Date:
July 24, 2012
To:
Commissioner Anson Moran, President
Commissioner Art Torres, Vice-President
Commissioner Ann Moller Caen
Commissioner Vince Courtney
Commissioner Francesca Vietor
Through:
Ed Harrington, General Manager
Michael Carlin, Deputy General Manage
From:
Rosanna Russell, Real Estate Director
Subject:
Fair Market Value of SFPUC Potential Surplus Properties
The SFPUC is a substantial land owner both in and outside of the City and Cotmty of
San Francisco. The SFPUC purchased property over time to accommodate its various
functions, including the storage, treatment, transmission and distribution of utilities in
the City and various counties. This property includes approximately 63,000 acres of
watershed and sites for treatment plants, pump stations, reservoirs, transmission lines
right of way, office space and corporation yards, among other things. This report
provides an estimate of fair market value regarding SFPUC property that the SFPUC
could declare surplus at the Commission's discretion. Fair market value is generally
defined as the probable price at which a property should sell in an open and
competitive market, with the buyer and seller each acting knowledgably and prudently,
without the price affected by undue stimulus.
In this memorandum, we estimate fair market value assuming SFPUC were to sell the
property "as-is". The fair market value would presumably be higher if the SFPUC
obtained the development entitlements for the property prior to placing the property on
the open market. Such a process entails certain risk and investment on the SFPUC's
part which is a judgment call of the Commission. Finally, any final Commission
decision to sell will require a formal appraisal for each property to determine the
precise fair market value. Where we have such an appraisal, we have included those
values in this memorandum.
This report is for informational purposes only, and we will periodically update it as the
Commission directs staff to begin the process for disposing of surplus property.
1. Balboa Reservoir, Ocean and Phelan Avenues, San Francisco. $36
million value based upon the recently concluded land swap with City
College. In May, the commercial property developers' professional
association, NAIOP, featured the Balboa Reservoir as the subject of its
"Golden Shovel" competition. The "Golden Shovel" competition pits
two graduate school business teams (Cal and Stanford) against one
another in a real world experience in real estate development. This
year's objective was to act as a consultant to the SFPUC to create a
development and disposition strategy for the approximate 25 acre
reservoir site.
The San Francisco Planning Commission developed a multi-page
General Plan for the area called the "Balboa Park Station"', ^
^
The^Ger^^
units on and adjacent to the reservoir.
2. Fremont Miles Reservoir, Fremont. The S F P U C awarded an
Exclusive Negotiating Agreement to Greenbriar Homes to purchase
this approximately 7.5 acre site in 2004. Greenbriar Homes did not
exercise its purchase option due to the faltering economy. We are
discussing with the Alameda County Water District ( A C W D ) ,
owner of an adjacent parcel that it has designated as surplus,
whether the A C W D desires to prepare a single solicitation for both
parcels. The property value is unknown at this time.
3. 450 Whisman at Tyrella, Mountain View. On June 12, 2012, the
Commission approved a resolution to sell this property to K M J and its
partner for $8.1 million.
4. Sunnyvale Manzano Way, Sunnyvale. The SFPUC sold two lots at public
auction for $690,000. The sale collapsed in 2009 due to market
conditions. The SFPUC's tentative map was automatically extended
until February 26, 2014. We are monitoring market conditions to
determine the timing for a potential sale. The precise property value is
unknown but is estimated as less than $1 million.
th
5. Laguna Honda Tract, 7 and Lawton Street, San Francisco. This
property is licensed for use as a community garden. The precise
property value is unknown but is estimated as less than $1 million.
6. Laguna Honda Reservoir, Laguna Honda and Clarendon Streets, San
Francisco. Community garden use, trails, and public access. This site
has limited uses beyond open space due to its terrain and natural habitat.
The property value is unknown, and because of the unique terrain, it is
difficult to provide an estimate of value.
7. Francisco Reservoir, San Francisco. The SFPUC is considering various
options and recently obtained a formal appraisal showing a $9,500,000
fair market value, based upon the assumption that the reservoir will be
removed and the Francisco Street right of way will be vacated, at
SFPUC cost.
8. Old Muni Right of Way remnant in Burlingame. The City of
Burlingame uses a portion of this area for California Drive. The property
value presumably has little value since it is being used as a street. The
SFPUC should consider trading this property for an easement from the
City of Burlingame for our WSIP pipeline right of way.
9. Putnam and Crescent Lots, San Francisco. The SFPUC is working with
the CCSF Department of Real Estate (RED) to enter into a
Memorandum of Understanding with the San Francisco Department of
Agriculture for the Farmers' Market parking lot. RED currently
proposes that the RED will maintain and repair the lots and assume all
liability in exchange for the SFPUC allowing the Farmer's Market
attendees to park on the lot two days a week. RED will provide the
SFPUC with an estimate of value.
10. Helen Drive, Millbrae. This is a nine-lot site with difficult terrain and
access issues. Two lots are zoned for residential use. A subdivision
map is recommended for the other seven lots if presented for future sale.
The precise property value is unknown but is estimated as less than $1
million.
11. Silva Tract, Millbrae. As part of a settlement agreement, the
Commission executed an exclusive negotiating agreement with Skyline
Stables to locate a horse stable on the site. Skyline Stables recently and
formally ceased its efforts to locate a horse stable. We will explore the
potential for development of this property for housing. The precise
property value is unknown but is estimated as less than $2 million.
12. O 'Shaughnessy Boulevard Parcels I (Portola & Marietta Drives), San
Francisco. The approximately 12.25 acre property is limited to open
space because of its remote, heavily forested, steep terrain and plant and
animal habitat. The property value is unknown, and because of the
unique terrain, it is difficult to provide an estimate of value.