The Warriors are proposing to build a hotel and condominium complex next to the Chase Center. (Courtesy rendering)

Warriors hotel and condo proposal faces key vote

Complex would have 129 hotel rooms, 20,000-square feet of retail and 21 condominiums on top floors

Despite the economic uncertainty in the coronavirus era, the Golden State Warriors are shooting to break ground next year on a new hotel, condo and retail complex next door to its Chase Center arena in Mission Bay.

The project is up for a key vote Tuesday.

The Warriors are asking city agencies to approve a 129 room hotel complex with about 20,000-square feet of retail and 21 condominiums on the top floors with views of the Bay. All but four of the condos would be over 2,000 square feet. One of the two penthouses would be 5,100 square feet.

The Commission on Community Investment and Infrastructure, which oversees the area, is scheduled to vote on the proposal Tuesday, which includes a decision whether to reopen a Mission Bay redevelopment plan to change the land use requirements.

The Board of Supervisors will ultimately have to approve the development.

“Nobody knows exactly what the world will look like next week, next month or next quarter, but the Warriors intend to be an important part of this economic recovery,” PJ Johnston, a spokesperson for the Warriors, told the San Francisco Examiner Monday.

The Warriors plan to begin construction in the first half of 2021 and complete the project in 2023.

Johnston said that the project will “provide funding for affordable housing, good union construction jobs on the front end and good Local 2 hospitality jobs on the back end.”

The Warriors would raze an existing three-story retail building to construct the proposed 13-story, 160-foot-tall, largely glass complex on what are known as Mission Bay South Blocks 29 and 30, adjacent to the Chase Center. The parcel is located at Terry Francois Boulevard and Warriors Way, formerly known as South Street.

The proposed tiered structure has hotel rooms on the eight lower levels and condos on the upper five floors. Residents would have access to the rooftop. Meeting rooms, a 3,500-square-foot ballroom, a fitness center, spa, ground floor restaurant and an upper level restaurant with an outdoor terrace are also included in the proposal.

The Warriors have partnered with hotel operator SH Hotels and Resorts, an affiliate of the private investment firm Starwood Capital Group, on the project, which was designed by architect Gensler and landscape by Bionic Landscape.

According to the Warriors’ proposal, the complex is “designed to complement the Chase Center” and “create an unparalleled, internationally known and visited location for events and a new urban destination for San Francisco.”

The Warriors completed their 18,000-seat Chase Center in August 2019. The project included two office buildings.

In approving the project, the commission would have to amend several planning documents, including the Mission Bay South Plan Area redevelopment plan, to allow for a second hotel and more retail space.

The commission would also have to approve changes to the Design for Development for the Mission Bay South Project Area to allow for increased height and bulk, including raising the allowable height from 90 feet to 160 feet on Block 30.

“Because the site is limited physically in width, it is necessary to increase the height and length of the proposed building to allow for an adequate number of hotel rooms and residential units within a building that is viable from a constructability standpoint,” said a memo from Nadia Sesay, executive director of the Office of Community Investment and Infrastructure. “While the proposed height increase is located in close proximity to the waterfront, the building’s terraced design and descending stepdown in height on the Bayfront side significantly lessens any impact on views or urban character.”

The OCII staff recommends approval of the proposal.

Supervisor Matt Haney, whose district includes the site, said that “there’s a need for a hotel over there” and that the Warriors “have seemed like good neighbors so far.”

But Haney questioned why the project couldn’t include some on-site affordable housing units.

“I certainly want to know whether it’s possible and if OCII believes it’s not, then I want to know why not,” Haney said.

The Warriors would pay The City an estimated $12.3 million in one-time development impact fees.

The fees include $4.1 million in inclusionary affordable housing fees, resulting from paying the fee on 30 percent of the total residential gross floor area of 65,200, according to the project’s fiscal analysis conducted by Seifel Consulting. The Warriors agreed to paying more than the required 20 percent. The City uses these fees to fund below market rate housing development.

Other fees include $3.7 million in transit impact fees, $2.7 million for a jobs-housing linkage fee, $1.3 million for art and $413,800 for childcare, according to the analysis.

Ongoing tax revenues are estimated at $5.5 million, which includes $2.7 million from the 14 percent hotel tax, according to the analysis.

Of the hotel tax revenue, about $1.2 million would go to the city’s general fund and $1.6 into Arts and Cultural Districts, under the 2019 Hotel Tax for the Arts ballot measure approved by voters.

The analysis estimates the project would create 166 hotel jobs and 57 retail jobs.

The proposed amendments would also allow for a different project of up to 230 hotel rooms without the residences, but if the Warriors elect to change its current proposal it would require an approval by the commission.

To date, the entire Mission Bay redevelopment project has resulted in 5,908 housing units, including 1,310 affordable units, out of the planned 6,514 housing units. Also, 3.1 million square feet of the planned 3.5 million square feet of the planned office and laboratory space is complete along with 539,000 square feet of the 560,000 planned leasable square feet of retail space.

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