Historic agreement and renewed partnership between KRC and wholesale flower vendors will guarantee a new wholesale flower market is built in San Francisco
SAN FRANCISCO (July 15, 2019) – Kilroy Realty Corporation (NYSE: KRC) and San Francisco’s wholesale flower vendors today reaffirmed their conceptual agreement to guarantee that a new Wholesale Flower Market will be built in San Francisco, either as part of KRC’s proposed San Francisco Flower Mart office and retail project at Sixth and Brannan, or at another location in San Francisco, to be determined by the San Francisco Flower Mart Tenants Association, which represents the wholesale vendors. This updated agreement between KRC and the vendors comes as the San Francisco Planning Commission gets ready to consider approval of KRC’s San Francisco Flower Mart Central SoMa project on July 18th.
“This partnership represents five years of negotiations and guarantees that the Wholesale Flower Market will always have a permanent home in San Francisco, which has been our goal from day one. The vendors wanted the option to choose the permanent location, so that is what we are giving them. We’re excited both for their future and the future of Central SoMa that the Flower Mart Project represents,” said Mike Grisso, Senior Vice President at KRC.
“Given the major changes planned for our current South of Market neighborhood, we have asked for an agreement with Kilroy Realty that gives us the option to move to a new location in San Francisco, if we elect not to return to Sixth and Brannan,” said Vance Yoshida, President of the San Francisco Flower Mart. “We are very grateful for Kilroy Realty’s responsiveness to guarantee we have the new permanent home we need in San Francisco.”
“After five years, and countless meetings with Kilroy Realty, members of the Board of Supervisors, the Mayor’s office and the community, we are close to an agreement that will provide a state-of-the-art wholesale floral goods market in San Francisco, which will maintain the visibility of our members’ businesses, the jobs of their employees, and the convenience for their customers,” said Louie Figone, President of the San Francisco Flower Mart Tenants Association. “We strongly support the Flower Mart Project because it will allow us to turn our vision for a new permanent home in San Francisco into reality.”
The Flower Mart Project is the largest of the proposed office and retail projects planned for the Central SoMa neighborhood. In addition to funding the construction of a new, 115,000-square-foot wholesale flower market, the project will include most of the new neighborhood-serving retail in Central SoMa, dedicate a site to the City for 100% affordable housing, create thousands of good construction and other jobs, and deliver unprecedented community and economic benefits to the City, including hundreds of millions of dollars in development impact fees and new tax revenues.
The revised project is the product of more than five years of negotiations and partnership between Kilroy Realty, the wholesale flower vendor community, and the City. Key elected leaders have provided consistent guidance and support throughout the project development, especially Supervisor Aaron Peskin, Supervisor Matt Haney, Mayor London Breed, former Supervisor Jane Kim, former Mayor Art Agnos, and the late Mayor Ed Lee.
The Flower Mart Project’s extensive community and economic public benefits are projected to include:
- $39.2 million in direct annual tax revenue for the City/County of San Francisco
- $175.2 million in direct, one-time construction-related revenue for the City
- $166 million in fees, including $54 million for affordable housing and $49 million for transportation
- $9.2 million in gross receipts and sales tax revenue
- $20 million construction of new wholesale flower market
- 8,050 annual construction-related jobs, with economic output totaling $1.5 billion during the construction period (2020-2023)
- $5 million to support the Sunnydale public housing transformation under HOPE-SF
- 115,000 square feet of affordable Production, Distribution, Repair (PDR) space
- 100,000 square feet of neighborhood-serving retail and market hall
- 14,000+ square-foot, off-site land dedication to Mayor’s Office of Housing for 100% affordable housing (up to 100+ units)
- 22,000 square-foot child care center (or in-lieu fee)
- 36,000 square feet of on-site privately-owned public open space
- 5,000 square feet off-site public open space
- 1,000 square-foot community room for use by neighborhood organizations
- LEED Platinum certification
- $4 million in public art
The full Planning Commission package for the San Francisco Flower Mart project is available at http://commissions.sfplanning.org/cpcpackets/2017-000663ENXOFAPCADVA.pdf.About Kilroy Realty Corporation
Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast’s premier landlords. The company has over 70 years of experience developing, acquiring and managing office and mixed-use real estate assets. The company provides physical work environments that foster creativity and productivity and serves a broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.
At March 31, 2019, the company’s stabilized portfolio totaled approximately 13.2 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. The stabilized portfolio was 92.5% occupied and 96.2% leased. In addition, KRC had under construction five projects totaling approximately 2.1 million square feet of office space that was 26% leased and 801 residential units. KRC also had three projects in the tenant improvement phase totaling approximately 1.2 million square feet of office, PDR and retail space of which the office components of the projects are fully leased to Adobe and Dropbox.
The company’s commitment and leadership position in sustainability has been recognized by various industry groups across the world. In September 2018, the company was recognized by GRESB both as North American leader across all asset classes and a global leader among all publicly traded real estate companies. Other sustainability accolades include NAREIT’s Leader in the Light award for the past five years, the EPA’s highest honor of Sustained Excellence and winner of ENERGY STAR Partner of the Year for the past six years. The company is listed in the Dow Jones Sustainability World Index. At the end of the first quarter, the company’s stabilized portfolio was 63% LEED certified and 76% of eligible properties were ENERGY STAR certified. More information is available at http://www.kilroyrealty.com.