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FILE NO. 231164 ORDINANCE NO. 39-24 [Planning Code - Downtown Rail Extension Fee Waiver] Ordinance amending the Planning Code to conditionally waive certain fees for projects along the corridor of the Downtown Rail Extension; 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 itfJlics Times New RomBnfemF. Board amendment additions are in dou · Arial font. Board amendment deletions are in . 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. 231164 and is incorporated herein by reference. The Board affirms this determination. (b) On December 14, 2023, the Planning Commission, in Resolution No. 21470, 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 Supervisors Dorsey; Mandelman 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. 231164, 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. 21470, 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. 231164. Section 2. Background and Findings Regarding the Downtown Rail Extension. (a) The San Francisco Downtown Rail Extension project, which is now referred to as the Portal, has been a regional priority since 1988 and will extend Caltrain's regional rail system by approximately 1.6 miles, from the current station at Fourth and Townsend Streets to the Salesforce Transit Center at First and Freemont streets, bringing Caltrain and California High Speed Rail into downtown San Francisco. The Portal will provide significantly improved access for Peninsula riders to San Francisco, and vice versa, as well as service travelers on the State's future high-speed rail system. (b) The Portal is the second phase of the Transbay Program, which was developed to reshape an area of San Francisco's downtown and financial core by (1) improving public access to bus and rail services, (2) modernizing the Transbay Terminal and improving service, (3) reducing non-transit vehicle usage, and (4) alleviating blight and revitalizing the Transbay Terminal area of downtown San Francisco. (c) The Transbay Joint Powers Authority ("T JPA") is responsible for the construction of the Portal. Construction of the Portal is expected to commence in 2025 with the Portal ready for service by 2031 . Supervisors Dorsey; Mandelman BOARD OF SUPERVISORS Page 2 (d) The Portal's route will be primarily below grade and utilize a constructed subsurface rail tunnel ("Tunnel") that runs, in part, underneath Townsend Street between Third Street and Sixth Street. The Tunnel structure is proposed to sit at an approximate depth of 14 feet to 64 feet below grade underneath Townsend, and be approximately 50 feet in height. (e) The Transportation Sustainability Fee (Planning Code Sections 411A et seq.) supports the implementation of infrastructure to meet the increased demand on City and regional transit systems generated by new development. The Eastern Neighborhoods Infrastructure Impact Fee (Planning Code Sections 423 et seq.) supports the improvement of community infrastructure, including transit and transportation, to offset the demand generated by new development in the Eastern Neighborhoods Area Plan. (f) For new projects where the foundation and shoring systems would otherwise encroach into the path of the Portal, it is reasonable and in the public interest to offset a portion of these fees if those projects implement an enhanced foundation that meets the demands and needs of the Portal, and avoids the need for additional structural measures within the Portal project. Section 3. Article 4 of the Planning Code is hereby amended by revising Section 406, to add subsection (i) following subsection (h), to read as follows: SEC. 406. WAIVER, REDUCTION, OR ADJUSTMENT OF DEVELOPMENT PROJECT REQUIREMENTS. * * * * (i) Conditional Waiver or Reduction o(Fees for Central SoMa Plan Area Proiects Impacted by the Downtown Rail Extension. A development proiect that enters into an agreement with the Transbay Joint Powers Authority to construct foundation and shoring systems that will reduce the Supervisors Dorsey; Mandelman BOARD OF SUPERVISORS Page 3 lateral force from the proiect onto the tunnel and not encroach on the tunnel alignment required for the Downtown Rail Extension, which agreement is to the satisfaction of the Department ofBuilding Inspection, and submits a building or site permit application that includes the agreed-upon foundation and shoring systems, may be eligible for a conditional waiver of the Transportation Sustainability Fee (Sections 41 JA et seq.) and the Eastern Neighborhoods Infrastructure Impact Fee (Sections 423 et seq.), as set forth in this subsection (i). As part of the approval process for such a proiect, the Planning Commission may conditionally approve waiver of all or a portion oft he Transportation Sustainability Fee and of the Eastern Neighborhoods Infrastructure Impact Fee, provided that such waiver is conditioned on the satisfaction of the actions in the preceding sentence. If the final approved building permit or site permit foundation addendum includes the agreed-upon foundation and shoring systems, the proiect shall receive a waiver of those fees in an amount commensurate with the net increase in cost o[the agreed-upon foundation and shoring system as compared to a baseline foundation system, as calculated by the Planning Department. If the final approved building permit or site permit foundation addendum does not include the agreed upon foundation and shoring systems, the City shall withhold issuance of the first certificate o[occupancy until the conditionally waived fees are paid. 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. APPROVED AS TO FORM: DAVID CHIU, City Attorney By: Isl Austin Yang AUSTIN M. YANG Deputy City Attorney n:lleganalas202312400132101713792.docx Supervisors Dorsey; Mandelman BOARD OF SUPERVISORS Page 4 City and County of San Francisco Tails Ordinance City Hall l Dr. Carlton B. Goodlett Place San Francisco, CA 94 l 02-4689 File Number: 231164 Date Passed: February 27, 2024 Ordinance amending the Planning Code to conditionally waive certain fees for projects along the corridor of the Downtown Rail Extension; 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 05, 2024 Land Use and Transportation Committee - RECOMMENDED February 13, 2024 Board of Supervisors - PASSED ON FIRST READING Ayes: 11 - Chan, Dorsey, Engardio, Mandelman, Melgar, Peskin, Preston, Ronen, Safai, Stefani and Walton February 27, 2024 Board of Supervisors - Fl NALLY PASSED Ayes: 11 - Chan, Dorsey, Engardio, Mandelman, Melgar, Peskin, Preston, Ronen, Safai, Stefani and Walton File No. 231164 London N. Breed Mayor City and County of San Francisco Page 1 I hereby certify that the foregoing Ordinance was Fl NALLY PASSED on 2/27/2024 by the Board of Supervisors of the City and County of San Francisco . .... Date Approved Printed at 9:31 am on 2/28/24