This is interesting, and may spell doom for the project that many a Mission activist would love to see doomed: The developer behind that massive, 330-unit building proposed for 16th and Mission is now suing the land owner claiming that they're violating a purchase agreement made in 2013 by offering the property to another developer. As the Business Times reports, the building that's been dubbed by opponents the 'Monster in the Mission' could end up becoming another building altogether (though likely not much smaller) if it turns out that the Jang family succeeds in selling the property to a "national development company based on the East Coast" who's allegedly agreed to pay $55 million for it $13 million more than Maximus Real Estate Partners has agreed to pay.
And if another developer has agreed to pay that much, it only means the units they want to build will be less affordable.
The property encompasses the land that the Burger King sits on on the northeastern block of Mission and 16th, as well as the bar next door, Hwai Lei Market, and Mission Hunan restaurant. Earlier this year, after much local outcry about the size of the development, Maximus agreed to build 24 percent affordable units, including 41 "middle income" units on-site.
As those familiar with the development process in San Francisco should know, it is often a lengthy and frustrating one, and Maximus is probably justifiably angry that the Jangs might be threatening the deal. Maximus has reportedly spent $8 million already on the entitlement process itself, including arranging over 100 community outreach meetings, in getting it approved.
Also there's an allegation in the lawsuit of shady dealings by the Jangs to “slow down” the entitlements process by hiring “certain personnel with ties to the city."
The Jangs had allegedly "gone silent" during negotiations in recent months, despite setting a closing date of August 11, which came and went.
Maximus is now hoping to halt any sale to this other developer, and/or to get the Jangs to pay $12 million in damages.
Opponents tell the Business Times they still want a 100-percent affordable project, which is unlikely to happen unless the city were to cough up $55 million for the Jangs. Technically, since the site is already approved for 331 units, this project should not be stymied by a November ballot measure halting market-rate development in the Mission.
Previously: 16th And Mission Developer Doubles Number Of Affordable Units