Genentech expansion gets the OK in South San Francisco

Nodding to a lucrative package of community benefits offered by the company as an incentive for approving the expansion, Mayor Rich Garbarino said he hoped the Genentech model would be replicated by others looking to expand in South City.

“I really think now the residents of South San Francisco fully understand Genentech’s involvement and their commitment to South San Francisco,” he said. “I applaud everything you’ve done.”

Councilman Mark Nagales agreed, saying he believed Genentech set an example of others to follow.

Under the decision, the company is cleared to expand its corporate headquarters from the roughly 5 million square feet of existing building to 9 million square feet in the next 15 years. Genentech will not expand the boundaries of its 207-acre site, but will intensify construction on its property east of Highway 101.

Company representatives claim they are undecided on whether they will develop to the full extent allowed under the new vision, but felt the master plan update was necessary to accommodate potential growth expectations.

To facilitate the deal, the company offered South San Francisco $31 million in affordable housing incentives — with $1 million set aside to facilitate construction of accessory dwelling units. Additionally, Genentech will pay $15 million to address transportation issues near its campus, while also supporting a community facilities district proposed throughout the Bayshore region.

Furthermore, Genentech committed to continued partnerships with local schools, plus offered financing for improving open space access as well as public art sponsorships across South San Francisco.

Additionally, the company backed plans for building housing east of Highway 101 — which a Genentech representative noted marks an evolved position for both the company and city officials who previously sought to preserve the area solely for commercial growth.

“I think we all collectively are coming to the realization that the pressure our region is facing,” said Sophie Martin, Genentech’s real estate strategy and urban planning manager. “And just the reality of the Bay Area and the economy and the circumstances really demand that we look for additional housing opportunities on the east side. And Genentech is prepared to support those, provided that housing is transit oriented in nature and supported by other services.”

Putting a finer point on her perspective, Martin said she believed the support for housing as well as the extensive community benefits package showcases the company’s commitment to preserving its legacy in South San Francisco.

“We really do see the city as a great partner and we are proud to continue making it our home,” she said.

While the terms of the development agreement seemingly impressed most officials, not all were entirely enamored. For his part, Vice Mayor Mark Addiego questioned whether the $30 million investment in housing would make a significant difference in the city’s quest to make the community more affordable.

To illustrate concerns, Addiego said South San Francisco invested roughly $14 million in redevelopment funds several years ago in an affordable housing project which only yielded about 120 units. Observing the cost of construction has escalated significantly over recent years, Addiego raised concerns regarding the number of units the $30 million offered by Genentech could finance.

Yet despite saying he was a little disappointed in the company’s housing commitment, Addiego’s colleagues did not join his press for additional contributions, and he ultimately expressed his support for the plan.

Alternatively, Garbarino said he believed the company’s support for housing development should be lauded.

“Your willingness to provide affordable housing speaks volumes and I just hope others in your industry will follow suit,” he said.

austin@smdailyjournal.com