Wednesday, May 25, 2011

Controller's Office Economic Impact Report: ParkMerced Redevelopment & BOMA San Francisco's Support Letter


BOMA San Francisco Members:

Please take a moment to review BOMA San Francisco's support letter for the ParkMerced Redevelopment by clicking here.  We applaud the Board of Supervisors for approving the plans on the first reading for the redevelopment yesterday.  The final vote should take place in two weeks.

The Controller's Office economic impact report on the proposed ParkMerced Redevelopment can be reviewed by clicking here.

Main Conclusions

The ParkMerced Development Agreement and associated rezoning will permit the construction of approximately 5,700 new housing units in a redesigned ParkMerced neighborhood.

The anticipated redevelopment will have a positive citywide economic impact, because of:

1. Greater economic activity from construction and demolition.

2. Downward pressure on citywide housing prices resulting from expanded housing supply in the neighborhood.

3. Downward pressure on citywide commercial rents, by expanded retail and office space.

The combined impact of the construction activity, reduced housing prices, and reduced commercial rent will be to increase employment in San Francisco by nearly 2,000 jobs by 2032, and to increase the size of the City’s economy by $400 million. Most of this growth will not occur in the ParkMerced area.

In the early years of the project, the bulk of the jobs benefit will be created by the construction itself. Over time, however, the expansion of housing supply will be the most important impact to the city’s economy. The impact of the non-residential construction is comparatively small, in the context of the city as a whole.

The redevelopment of the neighborhood, and its economic impacts, will also expand the property, payroll, and sales tax revenues of the city over the long term.

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