San Francisco s Yerba Buena Center Public Private Partnerships for Cultural Development

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1 San Francisco s Yerba Buena Center Public Private Partnerships for Cultural Development Amy Neches San Francisco Redevelopment Agency IAAPA November 16, 2009

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4 Yerba Buena Center Redevelopment 87 acre area south of Market Street YBC Redevelopment Plan adopted 1966 Slum clearance urban renewal movement of 1950 s 1970 s Massive acquisition and relocation Implementation of early plans held up by lawsuits

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6 Post lawsuit plans focused on visitor and cultural facilities, PLUS new and replacement housing 1976 Select Committee intensive community planning process 1981 master development agreement with Olympia & York (which went bankrupt), canceled in 1992 Projects then based on direct Agency development and on site by site development agreements

7 Yerba Buena Center Today Moscone Convention Center 2,500 hotel rooms Four Seasons, St Regis, W, Marriot, Westin Westfield Shopping Center 2,500 residential units Four Season and St Regis condominiums Paramount high end apartments 1,400 senior affordable units Cultural and recreational facilities

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9 Yerba Buena Arts & Cultural Development Plans for recreational, cultural and arts development based on planning process in late 1970 s, early 1980 s. Public investment in central facilities and public private institutional partnerships for museum development Public investments funded through YBC tax increment financing, land sales, developer payments, hotel tax bonds

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12 Yerba Buena Gardens Constructed on top of Moscone Convention Center 6 acre Esplanade completed in 1993 by Redevelopment Agency $40 MM funded through tax increment bonds and developer funds 10 acre Rooftop completed in 1998 by Redevelopment Agency $58 MM funded through tax increment bonds and land sales

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14 Agency Supported Museum Development Existing museums with new homes in YBC Museum of Modern Art Contemporary Jewish Museum Mexican Museum (still in planning.) New museums formed for Yerba Buena Yerba Buena Center for the Arts Zeum Museum of the African Diaspora

15 Yerba Buena Center for the Arts 2 buildings (755 seat theater, 55K sq. ft. gallery building), opened in 1993 Planned with O&Y, then developed by Agency Anchor arts center for YBC, with no resident company provides space for hundreds of events Owned and developed by Redevelopment Agency ($40 MM), operated by independent 501(c)(3) Agency provides $3.555 MM of $8+/ MM operating budget

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17 Museum of Modern Art Discussions started in 1987 Opened in 1995 Agency provided land ($20 MM) Museum paid for development $32MM+/ operating budget No Agency funds Major catalyst for YBC

18 Zeum Children s arts & technology museum, opened in 1998 Developed and owned by Agency, $13 MM Agency provides $600K of $2.2+/ operating budget Difficult first few years, required additional Agency support

19 Contemporary Jewish Museum Opened in 2005 Agency provided $14 MM in land and construction CJM raised $45MM+ for development $5 MM +/ operating budget; No Agency funds

20 Museum of the African Diaspora Developed as part of mixed use St Regis hotel and condominium project, opened in 2005 Agency required developer to provide 20,000 sq. ft. museum shell at no rent ($8.3 MM) Agency formed new 501(c)(3), funded organizational development, predevelopment, design, and tenant improvements ($10 MM) Agency provides $500K of $1.5 MM budget Difficult path to stability repositioning and additional funds needed

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22 Operational Fundingthe Separate Account Agency collects revenue from major leases and from ongoing development exactions Agency operates Yerba Buena Gardens through a management agreement with MJM Management Agency provides annual support to three museums Agency staff oversee operating agreements

23 Separate Account Math Annual operating income of $8+/ MM Marriott Hotel $5,000,000 (and falling) Metreon 833,000 (+ % rent someday) Other leases 1,300,000 (Moscone lease ending) GMOS 1,200,000 Annual operating costs of $8+ MM Gardens operations $2,300,000 Center for the Arts 3,555,000 Zeum 600,000 MoAD 500,000 Gardens and bldgs capital repairs/replacement costs vary, typically $800K to $1.2 MM, from annual capital set aside, tax increment infusions Funding challenges for operations, capital

24 Summing Up Agency has invested $200 million to build and support the anchors of Yerba Buena Center Outcomes include: Thriving cultural area, including over 40 additional organizations/galleries Billions of dollars of private investment in YBC projects An area visited and enjoyed by millions each year, with positive results for San Francisco as a whole

25 Challenges and Lessons Learned It takes a lot of capital to build all this New museums are hard to establish Ongoing operational funding and good management are key You never have enough money for everybody Vision, persistence, financial capacity, unflagging focus

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