424.7.1

SEC. 424.7.1. FINDINGS. (a) General. New development in the Transit Center District Plan area will create substantial new burdens on existing streets and transportation systems and require the need for new and enhanced transportation services and improvements to rights-of-way for all modes of transportation. The downtown is a very dense urban environment with limited roadway capacity and is already substantially congested and impacted by existing patterns of movement. To accommodate the substantial growth anticipated in the Transit Center District Plan Area, public transit investments must be made, circulation patterns adjusted, and limited right-of-way space reallocated such that trips to and through the area are primarily made by public transit, walking, bicycling, and carpooling and such that these modes are enabled to maintain or improve efficiency and attractiveness in the face of increasing traffic congestion. The Transit Center District Plan identified necessary investments and improvements to achieve these modal objectives and ensure that growth in trips resulting from new development and population increase in the Plan area does not degrade existing services. The San Francisco Citywide Nexus Analysis (“Nexus Analysis”), on file with the Clerk of the Board in File No. 230764, calculated the proportional share of the cost of these improvements attributable to new growth based on accepted professional standards. The investments and improvements identified in the Transit Center District Plan and allocated in the nexus study are distinct and in addition to improvements and services related to the Transit Impact Development Fee (TIDF) imposed by Section 411 et seq. Whereas the TIDF funds improvements to SFMTA Municipal Railway public transit services and facilities to provide sufficient capacity required to serve new development, the Transit Center District Transportation and Street Improvement Fee covers impacts of new development in the District on regional transit services and facilities that are distinct from and in addition to the need for SFMTA public transit services, and that will not funded by the TIDF, including necessary improvements to area streets to facilitate increases in all modes of transportation due to development, including walking, bicycling, and carpooling, and to regional transit facilities, including the Downtown Rail Extension and downtown BART stations. The Board finds that there is no duplication in these two fees. To provide the City and County of San Francisco and regional transit agencies with the financial resources to provide transportation facilities and street improvements necessary to serve the burgeoning population of downtown San Francisco, a Transit Center District Transportation and Street Improvement Fund shall be established as set forth herein. The Board of Supervisors adopts the findings of the Nexus Analysis, in accordance with the California Mitigation Fee Act, Government Code Section 66001(a). (b) Transit Center District Transportation and Street Improvement Impact Fee. Development impact fees are an effective approach to mitigate impacts associated with growth in population. The proposed Transit Center District Transportation and Street Improvement Impact Fee shall be dedicated to public transportation and public street improvements in the Transit Center District Plan Area and adjacent downtown areas that will provide direct benefits to the property developed by those who pay into the fund, by providing necessary transportation and street improvements needed to serve new development. The fee rate has been calculated by the Planning Department based on accepted professional methods for the calculation of such fees, and described fully in the Nexus Analysis, on file

with the Clerk of the Board in File No. 230764. The proposed fee established in Sections 424.7 et seq., is less than the maximum justified fee amount as calculated by the Nexus Analysis necessary to provide transportation and street improvements to increasing population in the area. While no project sponsor would be required to pay more than the maximum amount justified for that project as calculated in the Nexus Study, the Transit Center District Transportation and Street Improvement Fee is tiered such that denser projects are assessed higher fees because it is economically feasible for such projects to pay a higher proportion of the maximum justified amount. The proposed fee covers only the demand for transportation and street improvements created by new development and is not intended to remedy existing deficiencies. The cost to remedy existing deficiencies will be paid for by public, community, and other private sources as described in the Nexus Analysis and the Transit Center District Plan Implementation Document. Impact fees are only one of many revenue sources necessary to provide transportation and street improvements in the Plan Area. (Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY Section amended; Ord. 193-23, Eff. 10/16/2023. SEC. 424.7.2. APPLICATION OF TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT IMPACT FEE. (a) Application. Sections 424.7 et seq. shall apply to any development project located in the C-3-O(SD) District and meeting the requirements of subsection (b) below. (b) Projects subject to the Transit Center District Transportation and Street Improvement Impact Fee. The Transit Center District Transportation and Street Improvement Impact Fee is applicable to any development project in the C-3-O(SD) District which results in: (1) At least one net new residential unit, (2) Addition of space to an existing residential unit of more than 800 gross square feet, (3) At least one net new group housing facility or residential care facility, (4) Addition of space to an existing group housing or residential care facility of more than 800 gross square feet, (5) New construction of a non-residential use, or (6) Addition of non-residential space in excess of 800 gross square feet to an existing structure. (7) Conversion of existing space to a different use where the project's total fee as calculated according to subsection (c) below would exceed the total fee for the uses being replaced. (c) Fee Calculation for the Transit Center District Transportation and Street Improvement Impact Fee. For development projects for which the Transit Center District Transportation and Street Improvement Impact Fee is applicable the corresponding fee for net addition of gross square feet is listed in Table 424.7A. Where a development project includes more than one land use, the overall proportion of each use relative to other uses on the lot shall be used to calculate the applicable fees regardless of the physical distribution or location of each use on the lot. If necessary, the Director shall issue a Guidance Statement clarifying the methodology of calculating fees. (1) Transit Delay Mitigation Fee. The fee listed in Column A shall be assessed on all applicable gross square footage for the entire development project. (2) Base Fee. The fee listed in Column B shall be assessed on all applicable gross square footage for the entire development project. (3) Projects Exceeding FAR of 9:1. For development projects that result in the Floor Area Ratio on the lot exceeding 9:1, the fee listed in Column C shall be assessed on all applicable gross square footage on the lot above an FAR of 9:1. (4) Projects Exceeding FAR of 18:1. For development projects that result in the Floor Area Ratio on the lot exceeding 18:1, the fee listed in Column D shall be assessed on all applicable gross square footage on the lot above an FAR of 18:1.

TABLE 424.7A FEE SCHEDULE FOR NET ADDITIONS OF GROSS SQUARE FEET IN THE TRANSIT CENTER DISTRICT AREA Use Column A (Transit Delay Mitigation Fee) Column B (Base Fee) Column C (GSF Above 9:1) Column D (GSF Above 18:1) Residential $0.06/gsf $3.94/gsf $6.00/gsf $3.00/gsf Office $0.20/gsf $3.80/gsf $19.50/gsf $10.00/gsf Retail $1.95/gsf $2.05/gsf $19.50/gsf $10.00/gsf Hotel $0.10/gsf $3.90/gsf $8.00/gsf $3.00/gsf Institutional/ Cultural/ Medical $0.30/gsf $3.70/gsf $19.50/gsf $10.00/gsf Industrial N/A $4.00/gsf N/A N/A

(d) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Transit Center District Transportation and Street Improvement Impact Fee from the Planning Commission, subject to the following rules and requirements: (1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Transit Center District Plan Implementation Document and where they substitute for improvements that could be provided by the Transit Center District Transportation and Street Improvement Fund (as described in Section 424.7.4). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Transit Center District Plan, by the Interagency Plan Implementation Committee (see Chapter 36 of the Administrative Code), or other prioritization processes related to Transit Center District improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement. (A) For a development project on Assessor's Block 3720 Lot 009, an in-kind agreement may be approved that credits the project for street and transportation improvements constructed by either the sponsor of the development project or by the Transbay Joint Powers Authority. (B) The Planning Commission may not grant an in-kind agreement to waive or provide improvements in-lieu of paying the Transit Delay Mitigation Fee required by subsection (c) (1) above. (2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. A detailed site-specific cost estimate for a planned improvement prepared by the City or the Transbay Joint Powers Authority may satisfy the requirement for cost estimates provided that the estimate is indexed to current cost of construction. (3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items: (A) A description of the type and timeline of the proposed in-kind improvements. (B) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above. (C) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.