Nearly $1 million in S.F. bond money vanishes

Nearly $1 million in S.F. bond money vanishes

SF Gate | J.K. Dineen | posted: 1/27/2015

The developer of a Rincon Hill luxury high-rise complex near the entrance to the Bay Bridge may have ended up with nearly $1 million in bond money that the city planned to spend on park and pedestrian improvements South of Market, according to public officials.

But exactly where the money ended up is something of a mystery, because a lawyer for the developer said it never received the money.

In a mystery that shines the spotlight on San Francisco’s complex world of impact fees — where builders agree to pay money to offset a development’s effect on everything from schools to traffic to housing costs — city staff members are baffled as to how $925,666 vanished from the South of Market Community Stabilization Fund.

The city and the Association of Bay Area Governments, which oversaw disbursement of the money, say it ended up in the pockets of the One Rincon Hill developer.

Complete article here.