Potrero Yard Modernization Project - Developer Procurement Process
There is a multi-step process to bring a developer partner under contract with the city for the Potrero Yard Modernization Project, which is the City of San Francisco's first Public Private Partnership.
1. Begin the Search: Issue Request for Qualifications (RFQ)
The RFQ began our search process to obtain a developer partner to design and build the project. The RFQ process evaluated the qualifications of proposed project teams and determined three top responders based on an evaluation of relevant experience and qualifications.
Announcement of the List of Top Qualified Developer Teams
2. Set the Rules: Project-specific legislation
The City’s codes were written for typical public delivery of capital projects. Typically the City designates funds in its annual budget to pay for a project and contracts with a developer to build it. Because the Potrero Yard project needs a long-term agreement with a developer team to design, build, finance, operate, and maintain the new yard, special legislation is needed to set rules around this type of agreement which is a Public Private Partnership (P3). The legislation also obligates the project to prevailing wages, a Local Business Enterprise (LBE) program, the City’s local hire policy and first source hiring ordinance. The ordinance also allows payment of a design stipend to up to two unsuccessful respondent teams.
Project-specific Legislation Passed, Mar 16, 2021
3. Invitation to Top Responders: Request for Proposals (RFP)
The top responders were invited to submit a full proposal through a subsequent Request for Proposals (RFP) process that was issued in early 2021. The city strongly encouraged all potential respondents to elevate the participation and contribution of Black, Indigenous, and People of Color (BIPOC) and underrepresented voices as teams are formed. Respondent teams reflected the racial and ethnic diversity of San Francisco and participation of underrepresented communities.
Announcement of Proposals Received from Developer Teams
4. Awarding the Agreement: Selecting a Development Team
On November 21, 2022, the SFMTA Board of Directors approved the recommendation to award the Potrero Yard Modernization Project’s predevelopment agreement (PDA) to Potrero Neighborhood Collective, LLC (PNC) as lead developer. This milestone serves as a starting point for Potrero Neighborhood Collective to work together with the City and project stakeholders to further develop the current concept design and start the process that will produce the final project and housing agreements.
Announcement of Awarding Predevelopment Agreement to Lead Developer