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SAN FRANCISCO-Developer Lennar Corp. and city officials have reached an accord on a draft financing plan for the $1.4-billion Candlestick/Bayview-Hunters Point development that will include $500 million for affordable housing, $100 million for a new football stadium for the San Francisco 49ers and a list of other key development points. The plan that the city and Lennar have drafted was approved last week by the joint Community Area Committee, a coalition of citizen groups, and will now go to the San Francisco Redevelopment Agency and the Board of Supervisors for their approvals.

The plan, which calls for the redevelopment of Candlestick Point and Hunters Point Shipyard, will provide 7,500 permanent jobs, 10,000 new homes and 300 acres of parks and a site for the 49ers new football stadium. City officials have described it as the largest San Francisco redevelopment project since World War II. To satisfy a requirement by the City of San Francisco for economic diversification of the development, Lennar has joined with Hillwood Development and Scala Real Estate Partners to fund the project.

Kofi Bonner, president of Lennar Urban’s Bay Area division, said in a statement that Lennar will contribute more than $500 million for the creation of 3,345 housing units, nearly 32% of the residences planned for construction during the multi-year development. Lennar will offer to pay $100 million to the 49ers to help finance the cost of building a new stadium at Hunters Point Shipyard. The environmental clean-up of the stadium site is scheduled to be performed in 2009, which would allow the 49ers to complete construction of a new stadium by 2013 if they accept the city’s offer. Lennar will also develop the stadium site’s utility and transportation infrastructure and specialized grass parking lots, which will be used as athletic fields on non-game days.

Additional key features of the development include $29 million for home purchase assistance, nearly $9 million for work force development, 600,000 sf of regional retail space at Candlestick Point, 100,000 sf of retail space to serve new neighborhoods at Hunters Point Shipyard, and more than 2.1 million sf of office space to serve green business, science, technology, research and development and industrial uses.

An environmental impact report is scheduled to be completed in April 2009 and public hearings will be held next year on a formal development agreement for the project. The project will allow the City of San Francisco to fulfill several priorities at once: improving Bayview-Hunters Point, keeping the 49ers playing in the city and generating more park space and affordable housing, Bonner said.

When city voters approved the project in June, they also voted “no” on a separate measure that would have increased the affordable housing component to 50% from 32%. According to the developer, the 50% requirement would have made the project economically infeasible. Lennar initially planned to have only 25% of the housing units be affordable, but upped the percentage to 32% to help ensure voters approval.

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