Stimulus Funds Jump-Starts Martin Building Co.’s Mixed-Use Waterfront Project in SF

Though housing development across San Francisco has slowed to a crawl during the recession, a plan to build a 196-unit mixed-use complex on the central waterfront recently got off the ground thanks to $1.7 million in federal stimulus funds.

The ARRA funds will cover the first phase of the Potrero Launch project, which involves brownfield cleanup on a 1.25-acre site between 3rd and Illinois streets and 19th and 20th streets near Pier 70.

The federal Environmental Protection Agency and other state officials were on hand at the site last week for an official groundbreaking.

The site is in an M-2 (heavy industrial) district and the city’s Planning Department will rezone the site to create a temporary Draft Central Waterfront Plan Demonstration District, which would allow market-rate and below-market-rate rental apartments.

Martin Building Co. of San Francisco received the stimulus money via the state Department of Toxic Substance Control, which is overseen by CAL/EPA. The funding for the project is being distributed through a low-interest loan.

Chip Beverett, director of construction at Martin Building, says environmental testing of the soil on the site is being completed.

Stewart Black, acting deputy director of the DTSC in Sacramento, says the site has lead contamination and that cleanup would involve removal of about 11,000 tons of soil.

“Actually, I’m awaiting test results now,” says Beverett. “Depending on the level of contamination, we’ll have a better idea of how long this phase will take to complete. Then we also need to determine where to send the contaminated soil.”

Beverett says local subcontractor Granite Excavation and Demolition is doing this phase. Granite will not need to hire additional workers for this job, he says.

Onsite are two elderly warehouses, which were both seismically upgraded in 1999-2000, Beverett says. One is vacant and the other houses an electric motorcycle shop, which he says they would encourage staying during and after the construction of the mixed-use complex.

Potrero Launch at 2235 Third Street will incorporate the two warehouse buildings and new construction will include a six-story structure on Illinois Street. Apartments will feature terraces and balconies. The complex will include a restaurant, a grocery store, retail stores, underground parking for 153 vehicles and a day-care center. Martin Building is eyeing a LEED gold certification for the project.

Of the rental housing units, 39 will be affordable, 157 market rate and 40% will be two-bedroom.

Dallas-based HKS is the project architect. Martin McNerney Properties LLC of San Francisco is the owner.

Construction cost, according to Beverett, is $40 million. Martin Building is serving as construction manager and a general contractor will be selected in November.

Beverett says the project will create about 200 new construction jobs for two years and 90 new permanent jobs once completed.

Additionally, the project will include 10,940 sq ft of usable open space in the form of a large internal landscaped courtyard, a shared roof-top, private terraces and balconies and several new “pocket plazas” along the 3rd Street frontage.

Martin Building Co. says it was instrumental in launching the GreenTrust, San Francisco’s first non-profit, neighborhood-based open space trust fund. Its purpose is to promote the maintenance and expansion of green spaces in the Central Waterfront beginning with the development of a strategic “Greenprint” plan that will provide a detailed baseline conditions analysis, open space/green projects analysis and financial tools for funding neighborhood greening efforts within the context of the Draft Central Waterfront Plan.

Managed by a board of directors comprised of neighborhood residents and business owners, nonprofit organizations with an interest in urban greening and a handful of local developers who have contributed to the fund, the GreenTrust operates with financial transparency and an emphasis on cost-effective solutions.

Martin Building was also lent $1.25 million for another brownfield cleanup project at 178 Townsend, which will create about 100 new construction jobs for two years.

Planned for the site is the restoration and upgrading of a 121-year-old building that will feature 94 apartments, 46 parking spaces, a ground-floor restaurant and a day-care center. Money for the site cleanup comes from the DTSC’s Revolving Loan Fund.

For a look at other stimulus projects underway nationwide, visit
Engineering News-Record online.