San Francisco Planning Commission Hearing - July 13, 2023

The San Francisco Planning Commission met on Thursday, July 13, 2023, at 1:15 PM UTC. The meeting covered a wide range of items including a consent calendar, commission matters, department announcements, general public comment, regular calendar items on adaptive reuse, inclusionary housing and fee reductions, development impact fee reforms, and two discretionary review items. The commission voted on all items, with most passing unanimously except for two items that passed 5-1.

Consent Calendar

• Item 1 (1240 Stanyan Street): Continued to October 5, 2023, unanimously (6-0).
• Items 2-8 (Consent Calendar): Approved unanimously (6-0). Items included modifications to conditions of approval, conditional use authorizations for ILO units, vertical addition, automotive service use, formula retail, and a community recycling center.

Public Comments & Testimony

• Mauricio Chavez (Carpenters Local 22): Introduced himself and emphasized the importance of labor standards such as apprenticeship, health care, retirement, and living wages.
• Georgia Shutish: Commented on a John King article about a Sunset District design contest and raised concerns about a specific project at 1647 Sanchez.
• Anastasia Yobinopoulos (SF Tenant Union): Criticized the inclusionary housing formula as inadequate and urged the commission to balance developer incentives with affordable housing production.
• Jake Price (Housing Action Coalition): Supported the commercial-to-residential adaptive reuse legislation, noting office-to-housing conversions as part of the solution.
• Natalie Natoli (SF YIMBY): Expressed support for the adaptive reuse legislation.
• Mark Babson (Emerald Fund): Supported the inclusionary housing fee reduction and urged inclusion of small projects (10-24 units).
• John Avalos (CCHO): Acknowledged the need for changes but stressed the importance of parallel investment in affordable housing and equity considerations.
• Lorraine Petty: Urged the commission to continue the fee reduction package indefinitely, arguing it would harm affordable housing production.
• Several speakers (IATSE Local 16, Global Gourmet Catering, Knob Hill Association, neighbors): Spoke in support or opposition to the Masonic Center's request for additional events.
• Discretionary Review Speakers: For 50 28th Street (DR requesters argued light loss; project sponsor supported by staff) and 900 Chenery Street (DR requester raised privacy concerns; project sponsor and staff supported the project).

Discussion Items

• Item 9 (Land Acknowledgement): Commissioner Ruiz delivered the acknowledgement.
• Item 10 (Minutes): Approved unanimously.
• Item 11 (Commission Comments): Commissioner Diamond raised concerns about property maintenance during extension periods; Director Hillis agreed to consider standard conditions.
• Item 12 (Director's Announcements): Recognized planning interns and Claudia Flores for her 17 years of service on racial equity.
• Item 13 (Review of Past Events): Dan Sider reported on Board of Supervisors actions including waterfront plan updates, 98 Franklin tower, Polk Street health services, and Supervisor Melgar's family housing opportunity SUD.
• Item 14 (Commercial to Residential Adaptive Reuse): Staff presented four amendments; approved unanimously with modifications.
• Item 15 (Inclusionary Housing and Fee Reduction): Extensive presentations from Ted Conrad, President Peskin, Ted Egan, and Kate Connor. The ordinance reduces inclusionary rates and impact fees for pipeline and interim projects. Staff made nine recommendations including extending reductions to small projects, standardizing deadlines, and simplifying the program. Commissioners debated feasibility, equity, and AMI concerns. Approved 5-1 (Commissioner Imperial opposed).
• Item 16 (Development Impact Fee Indexing, Deferral, and Waivers): Dan Sider presented changes including annual indexing cap at 2%, fee lock-in at approval, fee deferral program, and exemptions for hospitality and industrial uses. Katie Tang proposed additional amendments to eliminate change-of-use impact fees. Approved 5-1 (Commissioner Imperial opposed).
• Item 17 (4199 Mission Street – HOME-SF Authorization): Project to demolish gas station and build 40 residential units (12 affordable). Staff and project sponsor presented; approved unanimously.
• Item 18 (1111 California Street – Masonic Center): Request to increase large live events from 79 to 91 (non-music). Strong public support and opposition from neighbors. The project sponsor committed to address concerns about trash, traffic, and noise. Approved unanimously.
• Item 19 (50 28th Street – Discretionary Review): DR requesters argued loss of light; staff found no extraordinary circumstances. Commission denied DR and approved the project unanimously.
• Item 20 (900 Chenery Street – Discretionary Review): DR requester cited privacy concerns; staff noted windows were designed to minimize impact. Commission denied DR and approved the project unanimously.

Key Outcomes

• Item 1: Continued to October 5, 2023 (6-0).
• Consent Calendar: Approved (6-0).
• Item 14: Approved with staff modifications (6-0).
• Item 15: Approved with staff recommendations and delegation of authority (5-1; Imperial opposed).
• Item 16: Approved with substitute amendments and small business changes (5-1; Imperial opposed).
• Item 17: Approved with conditions (6-0).
• Item 18: Approved with conditions (6-0).
• Item 19: DR not taken; project approved (6-0).
• Item 20: DR not taken; project approved (6-0).

Next Steps

• The commission will reconvene in August with noon start times.
• The TAC will reconvene by January 2026 to reassess inclusionary rates.
• The Board of Supervisors will consider the recommended legislation from items 14, 15, and 16.
• The building inspection commission will vote on fee deferral code changes.