By Tim Redmond : 48hills – excerpt
It was first described as a mixed-use development, then as housing for families …. and now it’s furnished studios for ‘students and visiting professors.’
Just before the Board of Supes voted to approve a new 101-unit project on Geary and Masonic, we learned a critical piece of information:
The developer isn’t planning just to build housing for “working people and families” It’s going to be at least in part furnished rentals, which often becomes corporate rentals.
Sup. Dean Preston said that the developer told him the project only “pencils out” if a significant amount of it is furnished rentals – which bring in higher prices.
“All of their projections are based on furnished rentals,” Preston said. He said the developer needed 19 percent return, that 17 percent wasn’t enough.
The project, the supervisors were told, will be financed by a union pension fund…
So the project – whatever it actually is going to turn out to be – was approved 10-1. But the question still remains: Why is the city going along with a developer’s demand that the rules be relaxed for financial reasons – when nobody but a few supervisors have been able to see the data?… (more)