o0073-25

FILE NO. 241198 AMENDED IN COMMITTEE 4/28/2025 ORDINANCE NO. 73-25 [Planning Code, Zoning Map - Alexandria Theater Special Use District] Ordinance amending the Planning Code and Zoning Map to establish the Alexandria Theater Special Use District (SUD), at the northwest corner of Geary Boulevard and 18th Avenue, allowing a density bonus and modifications to existing zoning controls for a residential project in the SUD, subject to specified conditions; 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 it€llics Times 1"hfew 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. 241198 and is incorporated herein by reference. The Board affirms this determination. (b) On April 3, 2025, the Planning Commission, in Resolution No. 21719, adopted findings that the actions contemplated in this ordinance are consistent, on balance, with the Supervisor Chan BOARD OF SUPERVISORS Page 1 City's General Plan and eight priority policies of Planning Code Section 101.1. The 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. 241198, and is incorporated herein by reference. (c) Pursuant to Planning Code Section 302, this Board finds that these Planning Code amendments will serve the public necessity, convenience, and welfare for the reasons set forth in Planning Commission Resolution No. 21719, 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. 241198. Section 2. General Findings. (a) California faces a severe crisis of housing affordability and availability, prompting the Legislature to declare, in Section 65589.5 of the Government Code, that the state is experiencing "a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of a chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state's environmental and climate objectives." (b) According to the Planning Department's 2020 Housing Inventory, the cost of housing in San Francisco has increased dramatically since the Great Recession of 2008- 2009, with the median sale price for a two-bedroom house more than tripling from $493,000 in 2011 to $1,580,000 in 2021, including a 9% increase from 2019 to 2020 alone, even in the face of the COVID-19 pandemic. The median rental price for a two-bedroom apartment saw similar although slightly smaller increases, nearly doubling from $2,570 to $4,500 per month, from 2011 to 2019, before declining in 2020 due to the pandemic. Supervisor Chan BOARD OF SUPERVISORS Page 2 (c) These housing cost trends follow decades of underproduction of housing in the Bay Area, according to the Planning Department's 2019 Housing Affordability Strategies Report. The City's Chief Economist has estimated that approximately 5,000 new market-rate housing units per year would be required to keep housing prices in San Francisco aligned with the general rate of inflation. (d) San Francisco's Regional Housing Needs Allocation ("RHNA") in the current 2023- 2031 Housing Element cycle is 82,069 units over those eight years (46,598 of which must be affordable to extremely low-, very low-, low-, and moderate-income households), which is more than 2.5 times the allocation of the previous eight-year cycle. (e) On January 31, 2023, the City adopted the 2022 Update of the Housing Element of the General Plan ("2022 Housing Element"), as required by state law. The 2022 Housing Element is San Francisco's first housing plan that is centered on racial and social equity. It articulates San Francisco's commitment to recognizing housing as a right, increasing housing affordability for low-income households and communities of color, opening small and mid-rise multifamily buildings across all neighborhoods, and connecting housing to neighborhood services like transportation, education, and economic opportunity. (f) The 2022 Housing Element includes goals, objectives, policies, and implementing programs that seek to guide development patterns and the allocation of resources to San Francisco neighborhoods. Generally, it intends to shift an increased share of San Francisco's projected future housing growth to transit corridors and low-density residential districts within "Well-Resourced Neighborhoods" (areas identified by the state as neighborhoods that provide strong economic, health, and educational outcomes for its residents), while aiming to prevent the potential displacement and adverse racial and social equity impacts of zoning changes, planning processes, or public and private investments on populations and in areas that may be vulnerable to displacement, such as "Priority Equity Geographies" (identified in the Supervisor Chan BOARD OF SUPERVISORS Page 3 Department of Public Health's Community Health Needs Assessment as Areas of Vulnerability). (g) Despite the need for additional housing, construction of new housing has slowed dramatically in San Francisco in recent years due to increased construction costs and decreased availability of financing. To incent housing development, the City has been exploring modifications to existing zoning controls for projects seeking to convert existing underutilized commercial spaces to residential uses. (h) The Alexandria Theater opened in 1923, on the northwest corner of Geary Boulevard and 18th Avenue. The theater was designed by the Reid brothers, who also designed the Cliff House and the Spreckels Temple of Music in Golden Gate Park. When it opened, it was hailed as a monument to Egyptian design. The historic and architectural features of the theater have been recognized by various publications. Over the years, the theater underwent several changes in ownership, and some physical renovations, but continuously operated as a movie palace until it finally shut down in 2004. Since then, the Alexandria Theater has remained vacant. (i) It is reasonable and in the public interest to increase the development potential of the property where the Alexandria Theater is located by providing modifications to the existing 40-foot height limit, the applicable dwelling unit density limit of one unit per 600 square feet of lot area, and similar requirements. It is also reasonable and appropriate for both the Historic Preservation and Planning Commissions to hold informational hearings for the development proposal to solicit public comments and recommendations. (i) Planning Department review of an application seeking the density bonus provided by this SUD will include two public hearings, one before the Planning Commission and one before the Historic Preservation Commission, which will facilitate review by interested members of the public and organizations with relevant expertise, such as SF Heritage. Supervisor Chan BOARD OF SUPERVISORS Page 4 Gk) Large development projects in San Francisco often incorporate certain public benefits, such as committing to local hiring, engaging a skilled and trained workforce, or paying prevailing wage. These features of such projects can result in local jobs and economic benefits to the community. The City and the project sponsor are evaluating the scope of public benefits to be provided in connection with a project developed pursuant to this ordinance, which public benefits may be memorialized in a separate agreement. Section 3. Article 2 of the Planning Code is hereby amended by adding Section 249.4, to read as follows: SEC. 249.4. ALEXANDRIA THEATER SPECIAL USE DISTRICT. (a) Purpose. The Alexandria Theater Special Use District is intended to promote the development of much needed housing in the City, by allowing a housing development proiect with additional density and height than otherwise allowed under existing zoning that also preserves the key historic architectural features of the Alexandria Theater, a 1923 movie palace. (b) Location. The Alexandria Theater Special Use District consists o{Assessor 's Parcel Block No. 1450. Lot No. 048. Its boundaries are shown on Special Use District Map SU03 of the Zoning Map, and generally it consists o(the parcel at the northwest corner o[the intersection o(18th Avenue and Geary Boulevard. (c) Controls. Applicable provisions o[the Planning Code shall apply to the Alexandria Theater Special Use District except as otherwise provided in this Section 249.4. In the event o(a conflict between other provisions of the Planning Code and this Section. this Section shall control. (d) Densitv Bonus. A residential development proiect that meets the eligibility criteria set forth in subsection (e) shall be entitled to the density bonus and zoning modifications described in this subsection (d). Supervisor Chan BOARD OF SUPERVISORS Page 5 (I) Form-Based Density. Notwithstanding any zoning designation to the contrary, the density of the proiect shall not be limited by lot area but rather by the applicable requirements and limitations set forth in this Code, as modified by this Section 249.4. Such requirements and limitations include, but are not limited to, height, setbacks, exposure, and unit mix, as well as applicable design guidelines, elements. and area plans ofthe General Plan and design review. (2) Height. The maximum building height shall be 85 feet. (3) Rear Yard. The minimum rear yard shall be 15 feet. (4) Dwelling Unit Exposure. The minimum exposure for dwelling units facing the reduced rear yard shall require qualifying windows to face an unobstructed open area that is no less than 15 feet in every horizontal dimension. (5) Process Modification. Conditional Use authorization pursuant to Section 202. 4 shall not be required. (e) Applicability. To be eligible for the density bonus and other zoning modifications provided by subsection (d), a residential development proiect shall meet the criteria set forth in this subsection (I) Affordability. The number of Affordable Units constructed on-site shall be at least 12% of all units constructed on the proiect site in accordance with this subsection (e)(J ). The capitalized terms in this subsection (e) (I) have the meanings set forth in the definitions of Sections 401 and 415.2. (A) For any Ownership Housing Proiect, a minimum of] 0% of the units shall be affordable to low-income households and 2% of the units shall be affordable to moderate-income households. Owned Units for low-income households shall have an affordable purchase price set at 80% of Area Median Income or less, with households earning up to I 00% of Area Median Income eligible to qualify for low-income units. Owned Units for moderate-income households shall have an Supervisor Chan BOARD OF SUPERVISORS Page 6 affprdable purchase price set at I 05% of Area Median Income or less, with households earning from 95% to 120% ofArea Median Income eligible to quafrfy for moderate-income units. (B) For any Rental Housing Project, a minimum of] 0% of the units shall be affordable to low-income households and 2% o(the units shall be affordable to moderate-income households. Rental Units for low-income households shall have an affordable rent set at 55% of Area Median Income or less, with households earning up to 65% ofArea Median Income eligible to qualify _for low-income units. Rental Units for moderate-income households shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to qualify for moderate-income units. (2) Dwelling Unit Mix. The project shall provide the following dwelling unit mix: (A) No less than 60% of the total number ofproposed dwelling units shall contain at least two bedrooms, provided that any fraction resulting from this calculation shall be rounded up to the next whole number of Dwelling Units,· and (B) No less than 20% ofthe total number ofproposed dwelling units shall contain at least three bedrooms, provided that any fraction resulting from this calculation shall be rounded up to the next whole number of Dwelling Units. (3) Historic Preservation. The historic character-defining features of the existing theater listed in this subsection (e)(3) shall be preserved as follows: (A) The exterior blade sign shall be preserved, reconstructed, and reinstalled on the exterior of the residential development project; (B) The exterior marquee shall be preserved and incorporated into the exterior of the residential development project,· (C) The interior sunburst chandelier shall be preserved and incorporated into a common area in the interior o[the residential development project,· Supervisor Chan BOARD OF SUPERVISORS Page 7 (D) The interior Art Deco murals and bas-reliefpanels shall be preserved and incorporated into a common area in the interior of the residential development proiect. Provided, however, that the extent ofpreservation required by this subsection (e)(3)(D) may be reduced in accordance with a preservation strategy and plan established by the Planning Department's Preservation Staff in consultation with a qualified conservator,· and (E) For the purposes ofthis subsection (e)(3), the term "preserved" means kept and repaired or replaced in kind to match the feature's material, dimensions, finish, profile, and details. (0 Hearings. (I) Hearings. The Historic Preservation and Planning Commissions each shall hold an informational public hearing for all proiects proposed pursuant to subsections (d) and (e). At the hearings, the Planning Director shall review key issues related to the proiect, any proposed zoning modifications pursuant to subsection (d), and the proiect 's compliance with the requirements and standards of subsections (d) and (e). (2) Notice o{Hearing. Notice of such hearings shall be provided as required by Section 333 o{this Code. (3) No Discretionary Review. No requests for discretionary review shall be accepted by the Planning Department or heard by the Planning Commission for proiects subiect to this Section 249.4. (g) Relationship to State or Local Density Bonus Programs. Any residential project developed pursuant to subsection (d) shall not be eligible for additional density or concessions, waivers, or other modifications to development standards pursuant to any state or local law, including but not limited to the State Density Bonus Law (California Government Code Section 65915 et seq.), the Affordable Housing Bonus Program (Planning Code Section 206 et seq.), and Planning Code Section 207. Supervisor Chan BOARD OF SUPERVISORS Page 8 (h) Implementation Timeline. The sponsor of any residential development pro;ect approved pursuant to subsection (d) shall obtain a building permit or, in the case of a site permit, an addendum that authorizes construction o[the development, within three years of the effective date of the ordinance in Board File No. 241198, enacting this Section 249. 4. If the sponsor does not obtain said permit or addendum within three years, this Section 249.4 shall expire by operation of/aw. In the event o[its expiration, the City Attorney is authorized to cause this Section to be removed from this Code. Section 4. Article 2.5 of the Planning Code is hereby amended by adding Section 263.14, to read as follows: SEC. 263.14. SPECIAL HEIGHT EXCEPTIONS: PERMITTED BUILDING HEIGHT IN THE ALEXANDRIA THEATER SPECIAL USE DISTRICT. In the 40-X Height and Bulk District, as designated on Section Map HT03 ofthe Zoning Map, located within the boundaries of the Alexandria Theater Special Use District, height above the maximum height limit may be approved for a residential proiect in accordance with the procedures and criteria set forth in Section 249.4. Section 5. Zoning Map. The Planning Code is hereby amended by revising Special Use District Map SU03 of the Zoning Map of the City and County of San Francisco, as follows: Description of Property Special Use District Hereby Approved Assessor's Parcel Block No. 1450, Lot No. 048 Alexandria Theater Section 6. Expiration Date. Planning Code Sections 249.4 and 263.14 in Sections 3 and 4 of this ordinance, respectively, and the Zoning Map amendment in Section 5, shall expire by operation of law Supervisor Chan BOARD OF SUPERVISORS Page 9 three years from the effective date of the ordinance in Board File No. 241198 establishing Sections 249.4 and 263.14, unless, (a) a project approved under Section 249.4 has received a building permit or, in the case of a site permit, an addendum that authorizes construction of the project, or (b) the City extends or re-enacts this ordinance before its expiration date. Upon expiration of Sections 249.4 and 263.14, the City Attorney is authorized to cause those Sections to be removed from the Planning Code and the Alexandria Theater Special Use District to be removed from the Zoning Map. Section 7. 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: /s/ HEATHER GOODMAN HEATHER GOODMAN Deputy City Attorney n:\legana\as2025\2400111 \01837700.docx Supervisor Chan BOARD OF SUPERVISORS Page 10 City and County of San Francisco Tails Ordinance City Hall l Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 241198 Date Passed: May 13, 2025 Ordinance amending the Planning Code and Zoning Map to establish the Alexandria Theater Special Use District (SUD), at the northwest corner of Geary Boulevard and 18th Avenue, allowing a density bonus and modifications to existing zoning controls for a residential project in the SUD, subject to specified conditions; 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. April 28, 2025 Land Use and Transportation Committee - AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE April 28, 2025 Land Use and Transportation Committee - RECOMMENDED AS AMENDED May 06, 2025 Board of Supervisors - PASSED, ON FIRST READING May 13, 2025 Board of Supervisors - Fl NALLY PASSED Ayes: 10 - Chan, Chen, Dorsey, Engardio, Fielder, Mahmood, Melgar, Sauter, Sherrill and Walton Excused: 1 - Mandelman File No. 241198 I hereby certify that the foregoing City and County of Sm, Francisco Daniel Lurie Mayor Page I Ordinance was FINALLY PASSED on 5/13/2025 by the Board of Supervisors of the City and County of San Francisco. Angela Calvillo Clerk of the Board Date Approved Printed at I 1:55 am on 5/14125