SFPUC eyes Millbrae OSH property

Its Millbrae operations center already hosts almost 500 division employees, Ritchie said, but seismic concerns at the existing SFPUC Burlingame facility means around 100 more employees and assorted equipment will need to move to the Millbrae location.

That makes an upgrade of the Millbrae operations facility necessary, Ritchie said, with plans to ultimately remove Outdoor Supply Hardware — which is currently located at 900 El Camino Real on SFPUC-owned land — to create a new industrial workshop in the space.

“Our primary goal here is to make sure we have a safe and secure facility, that can be one that can be responding to any kind of emergencies and operational needs that we have,” he said.

But his presentation on the project, which would allow OSH to extend its lease to October 2027 and begin construction November 2027, with construction completion estimated for 2031, received pushback from councilmembers.

“Part of the challenge of what I’m hearing is there isn't much thought or consideration to the community that operates around outside you,” Vice Mayor Steve Rainaldi said.

He challenged the rate hikes that ratepayers may face as a result of the Millbrae facility upgrade, which is estimated to cost $250 million in construction alone, as well as the loss of the hardware store, which generates sales tax revenue for the city. Rainaldi asked that SFPUC return to the City Council to present alternative options for the project.

“This is not San Francisco down here. You’re operating in Millbrae," he said. “There needs to be careful consideration for alternatives.”

Millbrae building code designates that the land is zoned for commercial use, not the industrial use that SFPUC is proposing, Councilmember Anders Fung said. However, because the land is owned by SFPUC, as long as the entity is using the parcel for water-related use, it ostensibly retains jurisdiction over site design and doesn’t require city approval, Mayor Reuben Holober said.

Removing OSH, as well as the adjacent Kentucky Fried Chicken and A&W, would be a loss for the city, resident Ray Louie said.

“OSH serves cities from San Mateo County to San Francisco County. Citizens that frequent OSH love to browse and shop at OSH,” he said. “I think it is shameful to close KFC, A&W and OSH, that serves our community so well.”

Millbrae is uniquely impacted by San Francisco entities owning a great deal of land in the city, said Ann Schneider, former Millbrae mayor and the city’s representative for the Bay Area Water Supply and Conservation Agency.

“I think we need to take some legislative action, because Millbrae is uniquely impacted by the city and county of San Francisco, whether it’s SFO or SFPUC,” she said.

Millbrae is waiting on official confirmation that SFPUC will honor the request to come back to the City Council to present alternative proposals for the project, Rainaldi said, although he was unclear where SFPUC is in its own internal processes to move the project forward.