San Francisco Planning Commission Regular Hearing - May 15, 2025

The San Francisco Planning Commission held a regular hearing on May 15, 2025, at approximately 12:00 PM. The meeting covered a consent calendar, commission matters, a discretionary review hearing for a major mixed-use project on Mission Street, and several regular calendar items including a sign ordinance and a major downtown redevelopment proposal. The commission also acknowledged the departure of Planning Director Rich Hillis, who will step down in mid-July 2025 after 20 years with the city.

Consent Calendar

• Item 1 – 555 Grant Avenue: Unanimously approved (7-0) a conditional use authorization to add beer/wine sales and consumption on the premises (ABC Type-42) to an existing wine retail store and art gallery.
• Item 3 – Draft Minutes for May 1, 2025: Unanimously adopted (7-0).

Commission Matters

• Director Hillis Departure: Commissioners expressed gratitude for Director Rich Hillis's 20 years of service to the city, including 12 years with the commission (7 as commissioner, 5 as director). He highlighted accomplishments including the housing element adoption, process reforms for housing and small business, and the community equity division. Hillis will remain through mid-July 2025 and plans to drive cross-country after his departure.
• Commission Comments: Commissioner Sue Diamond wished everyone a happy "Bike to Work Day" and praised the city's improving bicycle infrastructure. Commissioner Braun also thanked Director Hillis for his service.

General Public Comment

• Georgia Shutish: Spoke about the need to adjust demolition calculations under Planning Code Section 317 to protect existing affordable housing in priority equity geographies. She cited a median home price of $1.6 million in San Francisco, requiring an income of $418,000 to buy, and argued that new housing replacing existing sound housing is rarely more affordable.

Discretionary Review Calendar

• Items 7A and 7B – 2588 Mission Street: The commission heard three requests for discretionary review (DR) of a proposed 10-story, 100-foot-tall mixed-use building with 181 dwelling units, 4,000 square feet of retail, 1,500 square feet of community space, and 19 affordable units (17% of base density) under state density bonus law. The project required waivers for rear yard, dwelling unit exposure, loading, height, and bulk, plus concessions for ceiling height, open space, and affordability tiers.

  Public Comment: Approximately 30 speakers opposed the project, citing the 2015 fire that destroyed 26 small businesses, displaced 60 residents, and caused the death of 38-year-old Mauricio Ariano. Speakers accused the owner, Hawk Liu, of gross negligence and argued that the project would accelerate gentrification and displacement of the Latino community in the Mission District (a priority equity geography). Several speakers cited the city's housing element, AB 686 (affirmatively furthering fair housing), and the commission's 2022 resolution apologizing for past discriminatory planning. One speaker, Alan R., supported the project, noting it would provide 17 very low-income units.

  Project Sponsor Position: Attorney Patrick Miller argued that under the Housing Accountability Act and state density bonus law, the commission must approve the project unless it finds a specific adverse impact on public health or safety, a very high bar that he said was not met. He stated that the project complies with all objective planning standards and that the owner had attempted to sell to affordable housing developers but found no takers.

  Commission Deliberation: The vote was preceded by a 2-month continuance (motioned by Commissioner Imperial) to explore acquisition for 100% affordable housing. Staff confirmed that the city (Mayor's Office, OEWD, MOHCD) met with the owner and two private affordable developers, but no acquisition was possible.

  Commissioner Imperial: Voted against approval, citing the tragic history, ongoing displacement of the Mission District (12,000 Latino residents lost since 2000), and insufficient city effort to secure funding for 100% affordable housing. He stated the city did not do enough due diligence.

  Commissioner Williams: Voted against approval, reading a detailed timeline of the fires and violations. He argued the project contradicts the housing element's equity provisions (Policy 1 - eliminate displacement; Policy 15 - expand affordable housing; Policy 21 - protect vulnerable populations) and the commission's own racial and social equity commitment. He said the state density bonus law is wrong and should be amended to protect low-income communities.

  Commissioner Moore: Voted against approval, stating the housing element obligates the commission to prioritize equity and prevent displacement. She called the project "unsettling" and said the DR is "exceptional and extraordinary."

  Commissioner Braun, Campbell, McGarry, and President So: Voted to approve. Commissioners Braun and McGarry acknowledged the terrible history but stated they lacked a legal basis to deny a code-compliant project under state law. President So said he reluctantly supported approval, noting the site is currently empty and unsafe, and that the new building will include community facilities. He stated that while the commission cannot change state law, he remains committed to fostering dialogue between new residents and longtime neighbors.

  Outcome: Motion to not take discretionary review and approve the project passed 4-3 (Campbell, McGarry, Braun, President So in favor; Williams, Imperial, Moore against). The commission also adopted the density bonus findings.

Regular Calendar

• Item 8 – Projecting Signs in NC and RC Districts: The commission unanimously (4-0, with absentees noted) recommended approval of an ordinance sponsored by Supervisor Stephanie to allow all corner businesses in Neighborhood Commercial and Residential-Commercial districts to have two projecting signs. The legislation originated from a commission recommendation on a prior special sign district at 2301 Chestnut Street.

• Items 9A and 9B – 530 Sansome/447 Battery Street Project: The commission held an informational presentation on a major mixed-use redevelopment of a full city block at the northern edge of the Financial District, adjacent to Jackson Square. The project includes:

  • A new standalone 4-story Fire Station 13 (replacing the 1972 non-seismically sound station)
  • A 41-story, 544-foot-tall tower with approximately 345,000-390,000 square feet of Class A office space, 100-200 hotel rooms, 7,400 square feet of retail/restaurant, and 27,000 square feet of office/amenity uses
  • Significant public realm improvements along Merchant Street (extending the Mark Twain Place visual language)
  • Funding for 100% affordable housing in District 3 (Chinatown) and community benefits to be finalized in a development agreement

  The project requires rescission of Article 10 landmark status for the 447 Battery Street building, which will be demolished for the new fire station.

  Project Sponsor: Matt Witte (Related California) and Mark Schwettman (SOM) presented. They highlighted that the new fire station meets all department needs and that the office market data shows a 7% vacancy rate for "super premium" upper-floor view spaces in the top buildings north of Market, with strong tenant demand. They expect to start construction in 2027 and deliver in early 2030.

  Commission Support: All commissioners expressed strong support, praising the public benefits, the design sensitivity (especially regarding shadow and wind impacts), the economic stimulus for downtown, and the collaborative public-private partnership. Several noted that office and hotel uses are well-suited to this location.

  Outcome: The commission unanimously (7-0) voted to initiate General Plan Amendments (Urban Design Element, Downtown Area Plan, Land Use Index) and schedule a public hearing on or after July 17, 2025. The legislative package will return for a joint hearing with the Recreation and Parks Commission in mid-July.

• Item 11 – 1634 Oakdale Avenue: The commission unanimously (7-0) approved a conditional use authorization to remove an unauthorized dwelling unit (UDU) on the second floor (created by splitting a flat) and restore the floor to a legal three-bedroom flat. The decision aligns with the commission's 2017 flats policy; the UDU lacked living areas and kitchen facilities.

Key Outcomes

• Item 7A/B – 2588 Mission Street: DR request denied; project approved (4-3). The commission adopted density bonus findings and will proceed with entitlements.
• Item 8 – Projecting Signs: Recommended approval (4-0); will go to the Board of Supervisors.
• Item 9 – 530 Sansome/447 Battery: Initiated General Plan Amendments (7-0); public hearing scheduled for July 17, 2025 or later.
• Item 11 – 1634 Oakdale Avenue: Approved CU (7-0) with conditions.
• Director Hillis Departure: Will remain through mid-July 2025; commission expressed appreciation for his service.