While originally expected to cost the city around $10 million, an agreement for the City of San Francisco to purchase the beleaguered McDonald’s at the corner of Stayan and Haight Streets for $15.5 million has been drafted, a purchase agreement which includes the entirety of the restaurant’s parking lot which stretches to Waller Street.
According to an internal analysis by the Mayor’s Office of Housing and Community Development (MOHCD), the MOHCD is expecting to be able to develop up to 186 units of affordable housing upon the restaurant’s 38,000-square-foot parcel, a parcel which is principally zoned for development up to 50 feet in height but could be exceeded by way of a density bonus and a unit count which is twice the number originally reported in the papers.
In terms of timing, the purchase agreement calls for a closing of the sale and transfer of the 700-730 Stanyan Street property between March 29 and April 9 of 2018. That being said, keep in mind that prior to the existing McDonald’s opening in 1978 the site had been home to a dry cleaner and gas station. And as such, there is the potential issue of having to remove and remediate Underground Storage Tanks, the extent of which will impact the timing and cost of the parcel’s redevelopment.