Development Update: June 2026
Introduction: Horizontal and Vertical Development
Development on Treasure Island happens in stages. Following overall plans and development agreements, Treasure Island Community Development (TICD) proposes subphrases which are then reviewed by the Treasure Island Development Authority (TIDA). Those are available here under “Major Phase and Subphase Applications”.
Once that is done and other approvals are in place, horizontal development can begin. This includes things like geotechnical improvements, grading, streets, sidewalks, pathways and utilities.
After horizontal development is complete, vertical development in that area can begin. Broadly speaking, some lots are set aside for subsidized affordable housing while others are to be developed as primarily market rate projects.
Horizontal Development
Stage 2 horizontal development described in this report and presentation from the April 2025 TIDA meeting is progressing, with significant activity visible. The soil stockpile has been moved into this area, furthering geotechnical work.
When complete, Trade Winds Ave and Clipper Cove Ave will extend two more blocks eastward, enhancing access to Building 2 and Building 3. New bicycle and pedestrian pathways will also open along with some park space. Finally, several parcels will become available for vertical development.
Public Facilities / Vertical Development
Temporary Park (Hotel Parcel)
The lot along the western edge of Avenue of the Palms north of Bruton St has long been planned as a hotel, however market conditions don’t seem ready to support its construction any time soon. While I believe the parcel remains in private ownership, the developer has turned it into a quick-build open space that will be open to the public soon.
A hotel could still be built on the site eventually, but I’ve also heard talk of keeping this parcel a permanent park and accommodating the hotel elsewhere.
Temporary Parking Lot
Located at Seven Seas Ave and Johnson St, the temporary lot will provide about 100 spaces for residents. These spaces will be available at $75/month for affordable housing residents, and $250/month for market-rate residents per this June 6 TIDA presentation.
Space on TI is limited, and primarily dedicated to housing people with great parks and amenities rather than parking for cars. The development plans reflect this, but it’s also true that the first phases of development proceeded without most of the transportation plan being implemented, and with a lack of on-street parking management.
I hope this temporary lot will reduce parking pressure and give the city time to implement and communicate the transportation plan, even if it would have been best to see that happen before new residents moved in.
Chapel Grove Park
Anchored by the historic Navy chapel, Chapel Grove Park is making good progress with concrete pathways, grading, and some plantings in place. The chapel itself will also be renovated, and I’m looking forward to a park that will provide a place to gather as well as a more seamless connection from residential blocks to Building 1 and the Ferry Terminal.
Per this June 2025 TIDA presentation, it is expected to open in 2026.
Clipper Cove Park
We have a beach on Treasure Island! Or is it on Yerba Buena Island? Either way, Clipper Cove is a hidden gem. The beach is currently accessible via the ramp from the eastern sidewalk along the Treasure Island Road causeway, but there is also a small park space further up the hill.
That park space is currently being renovated into Clipper Cove Park, which will provide restrooms, a lawn/picnic space, a small parking lot, and potential amenities such as a cafe. Like Chapel Grove Park, it is expected to open this year.
Ferry Terminal Restrooms and Bus Shelters
Public restrooms and bus shelters are being added to the Treasure Island Ferry Terminal. Led by the Treasure Island Mobility Management Agency (TIMMA), the project is making good progress. Renderings available online also show a larger covered waiting area for the ferry terminal, which is not under construction now but will presumably be added in a future phase.
These facilities will greatly benefit transit riders, ensuring a more comfortable and dignified experience at the bus and ferry gateway to TI. The bus shelters are also anticipated to have real-time signage to keep riders informed. Restrooms and shelters should open this year.
Bay FC Practice Facility
After breaking ground last year, this project is also making good progress. Per Bay FC’s website, the project will provide community sports space and enrichment opportunities in addition to supporting the team with “one of a few purpose-built training facilities for women’s sports in the United States”.
New Wastewater Facility
On the northeast side of Treasure Island, the new Treasure Island Resource Recovery Facility appears mostly complete. When operational, it will replace an aging Navy-era facility. The new facility will meet current standards and anticipated development demands while also providing recycled water to TI and Yerba Buena Island.
When Will More Housing Be Built?
Some smaller-scale housing development may be progressing on Yerba Buena Island, but there is currently no housing construction occurring on Treasure Island. There are several buildable market rate parcels on TI that have yet to start construction.
Completed subsidized affordable and market-rate housing on Treasure Island is now largely full (Hawkins, Isle House, Maceo May, Star View Court).
One question mark is 490 Avenue of the Palms, which was planned and built as a condo building. It’s seemed substantially complete for several months, but sales have not begun and it remains empty. I’ve heard talk of opening the building as rental housing instead, which based on previous examples may require some sort of planning approval.
There are multiple subsidized affordable housing projects in the pipeline for when Stage 2 horizontal development is complete, including buildings dedicated to senior housing and behavioral health. The latest discussion of those buildings seems to have been at the March 11, 2026 TIDA board meeting, timestamp 1:02. The first ones are planned to be completed in 2028.
Market rate starts are less predictable. TICD and TIDA are in the early stages of work on a unit increase proposal that is intended to respond to market conditions and maintain momentum. The board report implies that these additional market rate units would be rentals in order to sidestep a weak condo market. Inclusionary and affordable housing percentages would be maintained, increasing the total number of subsidized affordable homes.