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FILE NO. 180187 ORDINANCE NO. 145-18 [Planning Code - Reauthorizing Section 210.3C Concerning New Production, Distribution, and Repair Space] Ordinance amending the Planning Code to reauthorize provisions that support the development of new Production, Distribution, and Repair (PDR) space in specified PDR Zoning Districts; 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 findings of public necessity, convenience, and welfare under 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 strikethroitgh italics Times New 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. 180187 and is incorporated herein by reference. The Board affirms this determination. (b) On May 3, 2018, the Planning Commission, in Resolution No. 20175, 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 Board I I I Supervisor Cohen BOARD OF SUPERVISORS Page 1 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. 180187, and is incorporated herein by reference. (c) On May 3, 2018, the Planning Commission, in Resolution No. 20175, adopted findings under Planning Code Section 302 that the amendments to the Planning Code contemplated in this ordinance will serve the public necessity, convenience, and general welfare. 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. 180187, and is incorporated herein by reference. 1 O Section 2. The Planning Code is hereby amended by revising Section 210.3C, to read as follows: SEC. 210.3C. ALLOWANCE FOR USES TO SUPPORT THE DEVELOPMENT OF NEW PDR SPACE IN THE PDR-1-D AND PDR-1-G DISTRICTS. * * * * * * (c) Controls. The Planning Commission may permit, per the procedures described below in S~ubsection (d), non-PDR uses on the subject lot pursuant to the following provisions: ( 1) At least 1 /3 of the total Gross Floor Area developed on the parcel shall contain PDR Uses, as defined in Section 102. (2) For purposes of this S~ubsectionifl, every square foot of Small Enterprise Workspace, as defined in Section 102, shall count as 0.5 square feet of PDR space and 0.5 square feet of non-PDR space as specified in S~ubsection (3) below. (3) The non-PDR space may contain one or a combination of the following uses: Supervisor Cohen BOARD OF SUPERVISORS Page 2 (A) Office Uses, as defined in Section 102; (B) Institutional Uses, as defined in Section 102, except for Hospitals; and/or (C) Gym Use, as defined in Section 102. (4) Uses other than those listed in &~ubsections (2) and (3) above, such as retail, are subject to the controls of the underlying district. (5) No residential uses are permitted, even as part of Institutions as defined under Section 890.50, except as allowed pursuant to Section 204.4. (6) The PDR space in any building must be served by: 1 O (A) Sufficient off-street loading, and (B) One or more freight elevators, in accordance with Planning Code Section 155U). (7) The project shall meet the Transportation Management Program requirements of Section 163(c) of the Planning Code. (8) Accessory parking for uses listed in subsection (2) above may be permitted up to one space per each 1,500 square feet of occupied floor area, and all such parking shall be subject to the pricing requirements of Section 155(g) ofthe Planning Code. (9) The project sponsor must develop a "PDR Business Plan." The purpose of this PDR Business Plan is to maximize the potential for the project to produce new PDR space that is viable and affordable. The features of the PDR Business Plan should include, but are not limited to: (A) Overall strategy to incorporate PDR businesses, including specifying which kinds of PDR businesses are the target for the development; Supervisor Cohen BOARD OF SUPERVISORS Page 3 (B) A description of the kinds of non-PDR businesses intended for the site and a plan for how they will co-exist with the PDR businesses and any strategies required to achieve this balance; (C) A description of how the site's marketing and outreach plan will effectively target these same PDR businesses; (D) A description of how the development's design is suited to PDR businesses; (E) A description of the rent/purchase price proposed by the developer for the PDR spaces and the approach to keep these rents accessible affordable to PDR tenants 1 O over time; (F) A detailed overview of the workforce and hiring strategy for the PDR businesses on the site, as well as for the non-PDR businesses, including how the project sponsor will abide by City programs such as the First Source Hiring Program; how the project sponsor might utilize other local, State, and federal subsidized hiring programs such as work opportunity tax credits, Jobs Now!, Hire SF, and the California new-employment tax credit set forth in Chapter 93 of the California 2013-2014 legislative session; and how the project sponsor will inform its tenants about other relevant public programs; and, (G) A detailed community outreach plan, including a plan for engaging any specific community partners in the development, tenanting of the project, and ongoing management of the PDR portions of the property. (10) The first Certificate of Occupancy for the PDR portion of the development must be issued by the Department of Building Inspection before or concurrently with the first Certificate of Occupancy for the non-PDR portion of the development unless the PDR and non-PDR portions are part of a single site or building permit. * * * * * * Supervisor Cohen BOARD OF SUPERVISORS Page 4 (e) Approvals. (1) All projects seeking entitlement pursuant to this Section 210.3C shall be required to receive a Conditional Use authorization, per Section 303 of the Planning Code. In evaluating a proposed authorization under this Section, the Planning Commission shall consider: (A) The likely viability of the new PDR space created by the development, as influenced by such factors as the content of the project sponsor's PDR Business Plan, and whether the project sponsor has the commitments of established PDR tenants and/or a demonstrated relationship with organizations established in the PDR 1 O community. (B) Whether the project is an appropriate location and intensity for the proposed non-PDR use, including but not limited to whether the location of non-PDR uses would be compatible with or disruptive to PDR uses on the site and in the vicinity, recognizing that PDR uses may generate noise, vibrations, odors, trucking activity, or other PDR-related operational characteristics. (2) A Notice of Special Restriction ("NSR") shall be recorded on the title of any property receiving approval under this Section -2--1--9--c-J.210.3C. Such NSR shall: (A) Designate the PDR portion of parcel, building, and/or development; (B) State that the proportion of gross floor area on the site dedicated to PDR uses shall never be less than 1/3 of the total gross floor area on the parcel, including any future building or use alterations or expansions; (C) Require the property owner to submit an annual report to the Planning Department and OEWD, on or before January 31 of each year, starting in the vear . after the Department of Building Inspection issues the first Certificate of Occupancv that applies to the FDR portion ofthe development, describing the status of the implementation of its PDR Business Supervisor Cohen BOARD OF SUPERVISORS Page 5 Plan, identifying PDR tenants on the property during the prior year, describing the rents for the PDR portions of the property and any lease terms, and providing information on their respective square footages, number of employees, contact information for each tenant, a description of the business or industry characteristics of each business, and the PDR space vacancy on the parcel as of the date of each report; end, (D) Provide the Planning Department with the ability to enforce the provisions of this Section:-" and, (E) Restrict the ability of the non-PDR portion of the development from limiting the PDR portion from undertaking activities necessary to maintain PDR business 1 O operations in such matters as trucking and noise generation. (f) Reporting and Sunset Clause. (1) The Planning Department shall receive all applications.for environmental revicr1· for projects eligible under this Section on or before June 1, 2017. (2) Prior to the sunset date of this Section, the Planning Department shall submit a report to the Planning Commission and the Board a:fSupervisors that provides information the Planning Department determines to be relevant in determining whether to continue, expand or limit the allowaHces for Hew construction of PDR addressed il'I this Section. (3) On December 31, 2017, this Scctiol'I shall sunset unless the Board a/Supervisors acts to coHtinue, extend, or modtjj; it by ordinance. fgf Uses Established Under This Section. Notwithstanding any contrary provision of this Code, Office Uses established pursuant to this Section 210.3C shall be deemed Code- conforming uses after the expiration of this Section and such uses shall not constitute nonconforming uses under the provisions of Article 1.7. Supervisor Cohen BOARD OF SUPERVISORS Page 6 Section 3. 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 4. 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 1 O additions, and Board amendment deletions in accordance with the "Note" that appears under the official title of the ordinance. APPROVED AS TO FORM: DENNIS J. HERRERA, City Attorney By: / JOHT'J D. MALAMU7 ( Dep~ty City Attorney '', n:\legi!'na\as2018\1800427\01255690.docx '°'"'~--'/.[ Supervisor Cohen BOARD OF SUPERVISORS Page 7 City and County of San Francisco Tails Ordinance City Hall I Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 180187 Date Passed: June 19, 2018 Ordinance amending the Planning Code to reauthorize provisions that support the development of new Production, Distribution, and Repair (PDR) space in specified PDR Zoning Districts; 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 findings of public necessity, convenience, and welfare under Planning Code, Section 302. June 04, 2018 Land Use and Transportation Committee - RECOMMENDED June 12, 2018 Board of Supervisors - PASSED ON FIRST READING Ayes: 11 - Breed, Cohen, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Stefani, Tang and Yee June 19, 2018 Board of Supervisors - Fl NALLY PASSED Ayes: 11 - Breed, Cohen, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Stefani, Tang and Yee File No. 180187 Mark E. Farrell Mayor City a11d Co1111ty of Sau Francisco Pages I hereby certify that the foregoing Ordinance was Fl NALLY PASSED on 6/19/2018 by the Board of Supervisors of the City and County of San Francisco. Date Apprbved Printed at 2:46 pm 011 6120118