249.35

SEC. 249.35. FRINGE FINANCIAL SERVICE RESTRICTED USE DISTRICT. (a) Findings. There are an unusually large number of establishments providing fringe financial services, including check cashing and payday lending, in the neighborhoods included in the Mission Alcoholic Beverage Special Use District, the North of Market Residential Special Use District, the Divisadero Street Alcohol Restricted Use District, the Third Street Alcohol Restricted Use District, and the Haight Street Alcohol Restricted Use Subdistrict. The unchecked proliferation of these businesses has the potential to displace other financial service providers, including charter banks, which offer a much broader range of financial services, as well as other desired commercial development in the City, which provides a broad range of neighborhood commercial goods and services. (b) Establishment of the Fringe Financial Service Restricted Use District. In order to preserve the residential character and the neighborhood-serving commercial uses of the following defined areas, a noncontiguous Fringe Financial Service Restricted Use District (Fringe Financial Service RUD) is hereby established for the following properties: (1) Properties in NC-1 and NCT-3 Districts, in the Broadway (Sec. 714), Castro Street (Sec. 715), Inner Clement Street (Sec. 716), Outer Clement Street (Sec. 717), Cole Valley (Sec. 742), Excelsior Outer Mission Street (Sec. 720), Fillmore Street (Sec. 747), Upper Fillmore Street (Sec. 718), Haight Street (Sec. 719), Lakeside Village (Sec. 727), North Beach (Sec. 722), Pacific Avenue (Sec. 726), Polk Street (Sec. 723), Sacramento Street (Sec. 724), Inner Sunset (Sec. 730), 24th Street – Noe Valley (Sec. 728), Union Street (Sec. 725), and West Portal Avenue (Sec. 729) Neighborhood Commercial Districts, and in the Divisadero Street (Sec. 759), Hayes-Gough (Sec. 761), Mission Street (Sec. 754), 24th Street – Mission (Sec. 763), Upper Market Street (Sec. 764), and Valencia Street (Sec. 762) Neighborhood Commercial Transit Districts; (2) Properties in the Mission Alcoholic Beverage Special Use District, as described in Section 249.60 of this Code and as designated on Sectional Maps SU07 and SU08 of the Zoning Map of the City and County of San Francisco; (3) Properties in the North of Market Residential Special Use District, as described in Section 249.5 of this Code and as designated on Sectional Maps SU01 and SU02 of the Zoning Map of the City and County of San Francisco; (4) Properties in the Haight Street (Section 781.9) and Third Street (Section 782) Alcohol Restricted Use Districts; and (5) Properties in the Chinatown Community Business (CCB) (Section 810), South Park (SPD) (Section 814), and Rincon Hill (RH-DTR) (Section 827) Districts. (c) Restrictions. (1) No new fringe financial services shall be permitted as a principal or accessory use in the Fringe Financial Service RUD. (2) The controls of this Section 249.35 shall also apply within a ¼ mile of the Fringe Financial Service RUD.

(3) Outside of the Fringe Financial Service RUD and its ¼ mile buffer, fringe financial services shall be subject to the zoning controls set forth elsewhere in this Code, provided that, in addition, no new fringe financial service shall be permitted as a principal or accessory use within ¼ mile of an existing fringe financial service. (d) Exemptions. The restrictions set forth in subsection (c) above shall not be interpreted to prohibit the following: (1) A nonprofit fringe financial service; or (2) Any other financial service use that is not a fringe financial service. Accordingly, any applicant for a financial service use shall provide the Planning Department with a true copy of the license issued to it by the State of California, demonstrating that such financial service operates under a license of a type distinct from that issued to a "check casher" as defined in California Civil Code section 1789.31, as amended from time to time; or to a "licensee" as defined in California Financial Code section 23001(d), as amended from time to time. (e) Continuation of Existing Prohibited Fringe Financial Service Uses. Any fringe financial service subject to the restrictions set forth in this Section 249.35 may continue in accordance with Planning Code Section 180 through 186.2, subject to the following provisions: (1) A fringe financial service lawfully existing as licensed by the State of California prior to the effective date of this legislation, or subsequent legislation prohibiting that type of fringe financial service, so long as otherwise lawful, may continue to operate only under the following conditions: (A) Except as provided in Subsection 249.35(e)(2) below, the premises shall retain the same type of fringe financial service license within a license classification; and (B) Except as provided in Subsection 249.35(e)(2) below, the fringe financial service shall be operated continuously, without substantial changes in mode or character of operation. (2) A break in continuous operation shall not be interpreted to include the following, provided that, except as indicated below, the location of the establishment does not change, the square footage used does not increase, and the type of state license does not change: (A) A change in ownership of a fringe financial service provider or a lawful transfer of a state license; (B) Temporary closure for restoration or repair of an existing fringe financial service on the same lot after total or partial destruction or damage due to fire, riot, insurrection, toxic accident, or act of God; or (C) Temporary closure of an existing fringe financial service provider for reasons other than total or partial destruction or damage due to fire, riot, insurrection, toxic accident, or act of God for not more than thirty (30) days for repair, renovation, or remodeling. (f) Definitions. The following definitions shall apply to this Section 249.35. (1) "Fringe Financial Service" as defined in Section 102 of this Code. (2) A "nonprofit fringe financial service" shall mean a Fringe Financial Service that is exempted from payment of income tax under Section 23701(d) of the California Revenue and Taxation Code and Section 501(c)(3) of the Internal Revenue Code of the United States. Any such nonprofit Fringe Financial Service shall provide the Planning Department with a true copy(ies) of its income tax documentation demonstrating its exemption from payment of income tax under State and Federal Law. (g) The Planning Department shall maintain information regarding the location of existing Fringe Financial Services located outside the Fringe Financial Service Restricted Use District, which information shall be presumed accurate. An applicant for a new Fringe Financial Service use may submit information to the Department to demonstrate that an existing fringe financial service use has closed or is otherwise not located within a one-quarter mile of the location of the proposed new Fringe Financial Service use. (Added by Ord. 269-07, File No. 070671, App. 11/26/2007; amended by Ord. 75-08, File No. 071531, App. 5/9/2008 ; Ord. 261-13 , File No. 130084, App. 11/27/2013, Eff. 12/27/2013; Ord. 227-14 , File No. 120796, App. 11/13/2014, Eff. 12/13/2014; Ord. 228-14 , File No. 120814, App. 11/13/2014, Eff. 12/13/2014; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020) AMENDMENT HISTORY Divisions (a) and (b)(3) amended; former division (b)(6) deleted; Ord. 261-13 , Eff. 12/27/2013. Divisions (b)(1) through (5) amended; Ord. 227-14 , Eff. 12/13/2014. Divisions (b)(1) through (5) amended; Ord. 228-14 , Eff. 12/13/2014. New division (b)(1) added and former divisions (b)(1)-(3) redesignated as (b)(2)-(4); current division (b)(4) amended; former divisions (b)(4) and (b)(5) deleted; division (f)(1) amended; Ord. 22-15, Eff. 3/22/2015. Divisions (b)(1) and (b)(4) amended; division (b)(5) added; Ord. 63-20, Eff. 5/25/2020. SEC. 249.35A. FULTON STREET GROCERY STORE SPECIAL USE DISTRICT. (a) Purpose. In order to provide for the consideration of a neighborhood-serving grocery store of moderate size in a location accessible to the Hayes Valley and Western Addition neighborhoods, there shall be a Fulton Street Grocery Store Special Use District, consisting of Lots 001 and 058 through 198, inclusive of Assessor’s Block 0794, between Laguna and Octavia Streets, as designated on Sectional Map 2SU of the Zoning Map. This Special Use District would enable the consideration of a project containing a grocery store in a district that does not permit such uses. This Special Use District would conditionally permit a grocery store that is a formula retail use, in order to allow consideration of a grocery store that is affordable to the neighborhood. This one-time lift of the ban on formula retail is intended to support an affordable grocery store that is committed to serving and hiring from the neighborhood. According to the U.S. Census Bureau’s 2017 American Community Survey, the median household income in the surrounding neighborhood is $24,041, and over one-third of residents in the neighborhood live below the poverty line. (b) Definition. “Grocery Store” shall mean a retail use that provides fresh produce and other unprepared perishable food products (such as dairy, fish, grains), in addition to other general groceries, personal items, household goods, and similar goods. The term “Grocery Store” includes General Grocery and Specialty Grocery uses. (c) Application. This Special Use District shall apply only to projects that meet all of the following standards: (1) The project is mixed-use, with both commercial and residential uses; (2) Commercial uses include a Grocery Store larger than 15,000 square feet of gross occupied floor area; and (3) Residential uses achieve a density of not less than 1 unit per 600 square feet of lot area. (d) Controls. The following controls apply to projects meeting the criteria of subsection (c) and to any subsequent alterations or changes of use in a building approved under this Section 249.35A. (1) The controls of the Hayes-Gough NCT apply in their entirety, except as specified in this Section. (2) All formula retail uses are prohibited, except for a Grocery Store, which may be permitted as a formula retail use, as defined in Section 303.1, through Conditional Use Authorization pursuant to Section 303.1. Pursuant to the Planning Code, any such formula retail Grocery Store shall be subject to all provisions of Section 303.1, including but not limited to subsection (j) of Section 303.1. (3) Accessory off-street parking shall not be permitted for any commercial use except the Grocery Store. (4) All subsequent changes of use shall require Conditional Use authorization from the Planning Commission. The only Non-Residential Uses that may be permitted in the space initially approved for a Grocery tore1 shall include Trade Shop and Institutional Uses, excluding Medical Cannabis Dispensaries, and Hospitals, except that General Retail Sales and Services, Pharmacy, or General or Specialty Grocery uses may be permitted. (5) In addition to the standard criteria for Conditional Use authorization, as set forth in Sections 303 and, if applicable, 303.1, a project sponsor proposing a Grocery Store shall also present information about the affordability of food for the Commission’s consideration. The Commission shall consider such information, as well as whether the project sponsor can demonstrate that the proposed Grocery Store will accept payment assistance, as set forth below. (A) Acceptance of Payment Assistance. The project sponsor shall describe the proposed Grocery Store’s commitment to accept payment from individuals through assistance programs including but not limited to the United States Department of Agriculture’s (USDA) Supplemental Nutritional Assistance Program (SNAP), the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and other similar public assistance programs. (B) Food Affordability Projection. The project sponsor shall prepare a projection of food affordability at the proposed location and submit it for review by the Planning Commission. The projection shall consist of current retail pricing for a sampling of everyday grocery items that represent all categories within the market basket of foods maintained by the USDA’s Center for Nutrition Policy and Promotion for their Official USDA Food Plans. (6) Signs shall be subject to the requirements of Article 6 of this Code, except that allowable business signs for the Grocery Store shall be limited to the following:

(A) Window Signs. The total area of all window signs, as set forth in Section 602.1(b), shall not exceed 10% of the area of the window on or in which the signs are located. Such signs may be non-illuminated. (B) Wall Signs. The total area of all wall signs shall not exceed 40 square feet on the Fulton Street frontage occupied by the use, and 40 square feet on the Laguna Street frontage occupied by the use. The height of any wall sign shall not exceed 24 feet, or the height of the wall to which it is attached, or the height of the lowest of any residential windowsill on the wall to which the sign is attached, whichever is lower. Such signs may be non-illuminated or indirectly illuminated. (C) Projecting Signs. The number of projecting signs shall not exceed one per business. The area of such sign, as set forth in Section 602.1(a), shall not exceed 24 square feet. The height of such sign shall not exceed 24 feet, or the height of the wall to which it is attached, or the height of the lowest of any residential windowsill on the wall to which the sign is attached, whichever is lower. No part of the sign shall project more than 75% of the horizontal distance from the street property line to the curbline, or six feet six inches, whichever is less. Such signs may be non-illuminated or indirectly illuminated. (D) Signs on Awnings and Marquees. Sign copy may be located on permitted awnings or marquees in lieu of wall signs. The area of such sign copy as set forth in Section 602.1(c) shall not exceed 40 square feet on the Fulton Street frontage occupied by the use, and 40 square feet on the Laguna Street frontage occupied by the use. Such sign copy may be non- illuminated or indirectly illuminated. (E) Freestanding Signs and Sign Towers. Freestanding signs or sign towers per lot shall not be permitted. (e) Effectiveness of Controls in this Special Use District. The controls of this Section 249.35A shall apply only to a Grocery Store that the Planning Commission approves pursuant to the requirements of this Section 249.35A within 5 years of the effective date of the ordinance in Board File No. 190839 amending this Section. (Added by Ord. 72-08, File No. 071157, App. 4/3/2008; amended by Ord. 4-14 , File No. 131085, App. 2/4/2014, Eff. 3/6/2014; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 129-17, File No. 170203, App. 6/30/2017, Eff. 7/30/2017; Ord. 254-19, File No. 190839, App. 11/15/2019, Eff. 12/16/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 136-21, File No. 210674, App. 8/4/2021, Eff. 9/4/2021) AMENDMENT HISTORY Divisions (b) and (d)(4) amended; new division (d)(5) added; division (e) amended; Ord. 4-14 , Eff. 3/6/2014. Divisions (a), (b), and (c)(2) amended; Ord. 22-15, Eff. 3/22/2015. Division (d)(4) amended; Ord. 129-17, Eff. 7/30/2017. Divisions (a)-(d), (d)(2)-(d)(4), and (e) amended; new divisions (d)(5)-(d)(5)(B) added; former divisions (d)(5)-(d)(5)(E) redesignated as (d)(6)-(d)(6)(E); Ord. 254-19, Eff. 12/16/2019. Division (d)(4) amended; Ord. 63-20, Eff. 5/25/2020. Division (e) amended; Ord. 136-21, Eff. 9/4/2021. CODIFICATION NOTE 1. So in Ord. 254-19. Editor's Note: This section originally was designated 249.34 when enacted by Ord. 72-08. The section was redesignated by the editor in order to avoid conflicting with previously existing material. This section subsequently has been amended multiple times under its current number, as documented in the history note above. SEC. 249.35B. DESIGN AND DEVELOPMENT SPECIAL USE DISTRICT. In recognition of existing large parcels where a limitation on office square footage per lot would be proportionally inappropriate, to accommodate office space for activities that require space outside of downtown, to provide affordable office space to small firms and organizations which may be engaged in incubator businesses and microenterprises, and to accommodate office space in relation to the agglomeration of internal, telecommunications and related utility uses in the immediate area, there shall be a Design and Development Special Use District applied to certain portions of the South Basin area west of Third Street, and to parcels on Third Street near the intersections of Cargo Way, Custer Avenue, Davidson Avenue, Evans Avenue, and Egbert Avenue, as shown on Sectional Map 10 SU of the Zoning Map. The following provisions shall apply within such special use district: (a) Except as described below, the specific use definitions and controls for PDR-1 and PDR-2 Districts, as detailed in the District's Zoning Control Table, shall apply to lots within this Design and Development SUD, including the accessory use provisions contained in Section 204.3 of this Code. (b) Any Office use is permitted, limited to a floor area ratio of 0.25 of gross floor area to 1 square foot of lot area notwithstanding the office use size limitations of the PDR-2 District. In no case shall office use be limited to less than the size allowed in a PDR-2 District as detailed in the District's Zoning Control Table; nor shall it exceed a total of 50,000 square feet of gross floor area per lot. (c) An Office use above the amount permitted in Section 249.35B(b) of this Code is permitted provided that it shall be limited to the following activities: (1) design activities, including but not limited to architectural, graphic, interior, product, and industrial design; (2) Business Service as defined in Section 102 of this Code; (3) ancillary office activities related to internet, telecommunications, electronic networking or data storage service and maintenance; (4) digital media and arts. (d) For all Office use square footage greater than the amount permitted under 249.35B(b), a Notice of Special Restriction shall be executed by the Zoning Administrator and recorded in the Office of the County Recorder, specifying that the office activities are limited to the uses permitted under Planning Code Section 249.35B(c). (e) For all Office use square footage greater than the amount permitted under 249.35B(b) of this Code, each individual business shall be limited to 5,000 square feet of gross floor area. (f) Off-street parking spaces shall be provided in the minimum amounts as follows: (1) for Office uses permitted under Section 249.35B(b), according to Table 151.1 of this Code; (2) for office uses permitted under Section 249.35B(c), 1 space for every 2,500 square feet of occupied floor area. (Added by Ord. 99-08, File No. 080339, App. 6/11/2008 ; amended by Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 245-25, File No. 250701, App. 12/12/2025, Eff. 1/12/2026, Oper. 1/12/2026) AMENDMENT HISTORY Divisions (a), (b), and (c)(2) amended; Ord. 22-15, Eff. 3/22/2015. Division (f)(1) amended; Ord. 245-25, Eff. 1/12/2026. Editor's Note: This section originally was designated 249.34 when enacted by Ord. 72-08 and was redesignated by the editor in order to avoid conflicting with previously existing material. This section subsequently has been amended under its current number, as documented in the history note above. SEC. 249.36. [REPEALED.] (Added by Ord. 298-08, File No. 081153, App. 12/19/2008; amended by Ord. 196-11 , File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; repealed by Ord. 202-21, File No. 210497, App. 11/12/2021, Eff. 12/13/2021) SEC. 249.37. INNOVATIVE INDUSTRIES SPECIAL USE DISTRICT. (a) Purpose. The purpose of the Innovative Industries Special Use District is to provide affordable office space to small firms and organizations which are engaged in innovative activities, including incubator businesses and microenterprises. (b) Geography. The boundaries of the Innovative Industries Special Use District are shown on Sectional Map No. 8SU of the Zoning Map.