City rules may force San Francisco to buy the park from itself for $2.42 million, unless the state changes its mind.
The park planned here is a city priority and the thing is going to get built, period. However, because the SF Public Utilities Commission owns the land, the Recreation and Parks Department probably has to purchase it from the PUC for fair market value, according to some city rule.
The park itself is being funded through a state grant, but the state grant won’t pay to purchase the land.
The worst case scenario is – if money can’t be found elsewhere and the park can’t be leased from the PUC and the state doesn’t budge on its grant - money saved from development fees will go to the PUC to buy this park.
However, the city’s still pressuring the state and looking for other park money under rocks in San Francisco. Upshot is, for the public, we might, or might not, lose $2.42 million to another department, money that would have otherwise been spent on other parks in the Eastern Neighborhoods, including Mission.