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SUBSTITUTE FILE NO. 240932 10/01/2024 ORDINANCE NO. 21-25 [Planning Code - Third Street Alcohol Restricted Use District] Ordinance amending the Planning Code to create an exception for certain distilleries, wineries, and breweries to establish on-sale liquor establishments in the Bayview Neighborhood Commercial District, subject to a conditional use authorization; affirming the Planning Department's determination under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of public necessity, convenience, and welfare pursuant to Planning Code, Section 302. NOTE: Unchanged Code text and uncodified text are in plain Arial font. Additions to Codes are in single-underline italics Times New Roman font. Deletions to Codes are in strikethrough italics Times Ne,v Roman font. Board amendment additions are in double-underlined Arial font. Board amendment deletions are in strikethrough Arial font. Asterisks (* * * *) indicate the omission of unchanged Code subsections or parts of tables. Be it ordained by the People of the City and County of San Francisco: Section 1. Environmental and Land Use Findings. (a) The Planning Department has determined that the actions contemplated in this ordinance comply with the California Environmental Quality Act (California Public Resources Code Sections 21000 et seq.). Said determination is on file with the Clerk of the Board of Supervisors in File No. 240932 and is incorporated herein by reference. The Board affirms this determination. (b) On December 5, 2024, the Planning Commission, in Resolution No. 21656, adopted findings that the actions contemplated in this ordinance are consistent, on balance, with the City's General Plan and eight priority policies of Planning Code Section 101.1. The Supervisor Walton BOARD OF SUPERVISORS Page 1 Board adopts these findings as its own. A copy of said Resolution is on file with the Clerk of the Board of Supervisors in File No. 240932, and is incorporated herein by reference. (c) Pursuant to Planning Code Section 302, the Board finds that this Planning Code amendment will serve the public necessity, convenience, and welfare for the reasons set forth in Planning Commission Resolution No. 21656, and the Board incorporates such reasons herein by reference. A copy of said resolution is on file with the Clerk of the Board of Supervisors in File No. 240932. Section 2. General Findings. (a) Over the years, a number of craft breweries, wineries, and distilleries have operated within the Bayview neighborhood. These businesses are part of a broader tradition of local manufacturing. They are also an important part of the local food and beverage ecosystem, producing products for sale on their premises, as well as in restaurants, bars, retail markets, and other establishments. (b) The Third Street Alcohol Restricted Use District currently prohibits the establishment of new beer and wine bars. (c) Bars serving beer and wine can add to the variety of nightlife offerings in a neighborhood commercial district, filling vacant storefronts and providing additional vibrancy to benefit a corridor. (d) Enabling manufacturers within the neighborhood to launch new beer and wine bars will create new opportunities for small businesses along Third Street, and could attract additional alcohol manufacturers. Section 3. Article 2 of the Planning Code is hereby amended by revising Section 249.62, to read as follows: Supervisor Walton BOARD OF SUPERVISORS Page 2 SEC. 249.62. THIRD STREET ALCOHOL RESTRICTED USE DISTRICT. * * * * (a) In order to preserve the residential character and the neighborhood-serving commercial uses of the area, the Third Street Alcohol Restricted Use District (~Third Street Alcohol RUD_'._'.) is hereby established for the property in the area generally bounded by lslais Creek to the !!North, Quint Street, Phelps Street, Tampa Street, Bridgeview Drive, Newhall Street, Venus Street and Egbert Avenue to the wWest, US Highway 101 to the ~South, and Mendell Street, La Salle Avenue, Keith Street, Palau Street, Jennings Street, and Ingalls Street to the ~East, as designated on Sectional Map Nnumbers 8 and 10. The Third Street Alcohol RUD is designated on Section },fap 1Vumbers 8SUand J0SU (1) No new on-sale or off-sale L_liquor ~establishment shall be permitted in the Third Street Alcohol RUD. (2) The prohibition on Liquor Establishments in subsection (a)(]) shall not be interpreted to prohibit the following: (A) Temporary uses, as described in Planning Code Section~ 205.1 or 205.3; (B) Establishment of a Liquor Establishment if application for such Liquor Establishment is on file with the California Department of Alcoholic Beverage Control ("ABC") prior to the effective date of legislation Ordinance No. 67-03 establishing the Third Street Alcohol RUD (May 19, 2003); (C) Sales of wine and brandy pursuant to an Alcohol Beverage Control {ABC)- License Type 2; & (D) Sales and manufacturing of beer pursuant to an Alcohol Beverage Control (ABC)- License Type 23 • or Supervisor Walton BOARD OF SUPERVISORS Page 3 (E) Establishment of an on-sale Liquor Establishment with an ABC License Type 42 within the Bayview Neighborhood Commercial District, pursuant to a conditional use authorization as provided in Section 303. SEC. 737. BAYVIEW NEIGHBORHOOD COMMERCIAL DISTRICT. * * * * Table 737. BAYVIEW NEIGHBORHOOD COMMERCIAL DISTRICT ZONING CONTROL TABLE Bayview NCO Zoning Category § References Controls * * * * NON-RESIDENTIAL STANDARDS AND USES * * * * Commercial Use Characteristics Drive-up Facility I§ 102 INPQJ_ * * * * Controls by Story 1st 2nd 3rd+ * * * * Sales and Service Use Category Retail Sales and § § 102, p p p Service Uses* 202.2(a), 202.3 * * * * Supervisor Walton BOARD OF SUPERVISORS Page4 Bar §§ 102, NP(ij(ll NP(ij(ll NP 202.2(a},. 249.62 * * * * * Not listed below * * * * (2) THIRD STREET SPECL4L USE DlSTRI£T Bound€lries: AppliC€lbte only to the portion of the Third Street SUD €IS shmvn on Section€ll },t/ap 10 SU zoned i"IC 3. Controls: Offs€lle ref€lil liquor s€lles €Ire NP; dDrive-up facilities for Restaurants and Limited- Restaurants are C. * * * * (7) THIRD STREET ALCOHOL RESTRICTED USE DISTRICT (Section 249.62). C for Bars with ABC License Type 42. Section 4. Effective Date. This ordinance shall become effective 30 days after enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the ordinance unsigned or does not sign the ordinance within ten days of receiving it, or the Board of Supervisors overrides the Mayor's veto of the ordinance. Section 5. Scope of Ordinance. In enacting this ordinance, the Board of Supervisors intends to amend only those words, phrases, paragraphs, subsections, sections, articles, numbers, punctuation marks, charts, diagrams, or any other constituent parts of the Municipal Code that are explicitly shown in this ordinance as additions, deletions, Board amendment Supervisor Walton BOARD OF SUPERVISORS Page 5 additions, and Board amendment deletions in accordance with the "Note" that appears under the official title of the ordinance. APPROVED AS TO FORM: DAVID CHIU, City Attorney By: /s/ AUSTIN M. YANG Deputy City Attorney n:\legana\as2024\2400482\01790502.docx Supervisor Walton BOARD OF SUPERVISORS Page 6 City and County of San Francisco Tails Ordinance City Hall 1 Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 240932 Date Passed: March 04, 2025 Ordinance amending the Planning Code to create an exception for certain distilleries, wineries, and breweries to establish on-sale liquor establishments in the Bayview Neighborhood Commercial District, subject to a conditional use authorization; affirming the Planning Department's determination under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of public necessity, convenience, and welfare pursuant to Planning Code, Section 302. February 24, 2025 Land Use and Transportation Committee - RECOMMENDED AS COMMITTEE REPORT February 25, 2025 Board of Supervisors - PASSED ON FIRST READING Ayes: 11 - Chan, Chen, Dorsey, Engardio, Fielder, Mahmood, Mandelman, Melgar, Sauter, Sherrill and Walton March 04, 2025 Board of Supervisors - Fl NALLY PASSED Ayes: 10 - Chan, Chen, Dorsey, Engardio, Mahmood, Mandelman, Melgar, Sauter, Sherrill and Walton Excused: 1 - Fielder File No. 240932 fr-A Daniel Lurie Mayor City and County of San Francisco Page I I hereby certify that the foregoing Ordinance was Fl NALLY PASSED on 3/4/2025 by the Board of Supervisors of the City and County of San Francisco. Date Approved Pri11ted at 10:51 am 0113/5/25