FILE NO. 180806
AMENDED IN BOARD
11/13/2018
ORDINANCE NO. 285-18
[Planning Code- Temporary Pop-Up Retail, Flexible Retail, and Arts Activities Uses]
Ordinance amending the Planning Code to create new Use allowing flexible, multi-use
retail; permitting Temporary Pop-Up Retail uses in commercial spaces; permitting
Flexible Retail in certain Neighborhood Commercial Districts; permitting Arts Activities
in certain Neighborhood Commercial 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 making findings of public necessity, convenience, and welfare
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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 italics Times 1'le1v Roman font.
Board amendment additions are in double-underlined Arial font.
Board amendment deletions are in strikethrough /\rial 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. Findings.
(a)
In February 2018, the Office of Economic and Workforce Development
published a report entitled "State of the Retail Sector: Challenges and Opportunities for San
Francisco's Neighborhood Commercial Districts" ("Report"). Prepared by Strategic
Economics, the Report analyzed the national restructuring of the retail, restaurant, and
personal services industries; identified factors required to support successful San Francisco
retail districts; catalogued opportunities, costs, and challenges for retail, restaurant, and
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personal services businesses in San Francisco; and documented adaptations that businesses
are making in response to changing conditions.
(b)
The Report's key findings include:
•
Between the first and third quarters of 2017, chain retailers nationwide
announced 3,044 store openings, and 6,752 store closings. While overall retail
sales were in decline, retail sales growth was concentrated in several
categories, including: food and beverage stores; e-commerce; building materials
and home furnishings; and health and personal care stores. Food services
sales also experienced growth.
•
Consistent with national trends, after many years of growth, San Francisco's
retail sector appears to be slowing. Growth in retail employment and sales tax
revenues slowed between 2015 and 2016, and vacancy rates in some
neighborhood commercial districts are increasing. Retail business owners also
reported seeing increased competition with online sales for a rapidly expanding
range of products.
•
While retail demand is slowing, there is a national trend towards increased
consumer spending on dining, services, and other ways to engage retail
customers. There is a corresponding increased demand in storefront space for
restaurant, entertainment, and personal services in San Francisco
neighborhoods. Restaurants and personal services are a key component of the
experience provided by neighborhood shopping districts, drawing foot traffic to
other businesses and providing spaces to linger and gather as a community.
Continued growth in these activities could mitigate some of the effects on
vacancy rates caused by local contraction in the retail industry.
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(c)
•
Based on increased consumer demand for experiences and increased
competition from online sales, many retailers are developing new strategies to
attract customers, including: expanding opportunities for customers to interact
with products before making a purchase; integrating eating, drinking, and
wellness into traditional retail stores; and offering community-building activities
such as classes, workshops, readings, lectures, or concerts. Incorporating
multiple uses or creatively co-locating other uses may help retail businesses
diversify their revenue streams.
•
Land use and permitting requirements can present challenges to new
businesses in San Francisco. New businesses must often invest significant time
and money into completing the permitting and construction processes. These
costs frequently place business owners in substantial debt, jeopardizing the
viability of their enterprises before they are even able to open their doors and
can dissuade aspiring entrepreneurs from opening their own businesses.
•
Existing land use and permitting requirements may make it challenging for
businesses to incorporate food, drink, events, and other elements that create
attractive experiences for customers. Existing land use and permitting
requirements also limit a business' ability to incorporate multiple uses, or co-
locate multiple businesses, within a single storefront.
More flexibility within land use controls would support small businesses by
enabling them to creatively experiment with integrating food, beverage, retail and professional
services uses within the same space. The creation of flexible, multi-use space could enable
small-scale entrepreneurs to launch brick-and-mortar operations, on a temporary or
permanent basis, within larger storefronts.
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(d)
The purpose of this ordinance is to reduce storefront vacancies, support a
diverse mix of businesses, enable retail businesses to engage in creative strategies to attract
customers and diversify revenues, and otherwise support healthy and vibrant commercial
corridors in San Francisco.
Section 2. 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
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Supervisors in File No. 180806 and is incorporated herein by reference. The Board affirms
this determination.
(b) On October 18, 2018, the Planning Commission, in Resolution No. 20318, 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 1 01.1. 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. 180806, 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. 20318, and the Board incorporates such reasons
herein by reference.
Section 3. The Planning Code is hereby amended by revising Section 102 to read as
follows, with the definition of "Flexible Retail" placed after the definition of "Family" and before
the definition of "Floor Area, Gross":
SEC. 102. DEFINITIONS.
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* * * *
Arts Activities. A Retail Entertainment, Arts and Recreation Use that includes performance,
exhibition (except exhibition of films), rehearsal, production, post-production,_ and some
schools of any of the following: Ddance,,:_ music,,:_ dramatic art,,:_ film,,:_ video,,:_ graphic art,,:_
painting,,:_ drawing,,:_ sculpture,,:_ small-scale glassworks,,:_ ceramics,,:_ textiles,,:_ woodworking,,:_
photography,,:_ custom-made jewelry or apparel,,:_ and other visual, performance,_ and sound
arts and craft. It shall exclude accredited Schools and Post=Secondary Educational
Institutions. It shall include commercial arts and art-related business service uses including,
but not limited to,,:. recording and editing services,,:_ small-scale film and video developing and
printing; titling; video and film libraries; special effects production; fashion and photo stylists;
production, sale,_ and rental of theatrical wardrobes; and studio property production and rental
companies. Arts spaces shall include studios, workshops, archives,_ and theaters, and other
similar spaces customarily used principally for arts activities, exclusive of a Movie Theater,
General Entertainment Amusement Enterprise, Adult Business Entertainment, and any other
establishment where liquor is customarily served during performances.
* * * *
Flexible Retail. A Retail Sales and Service Use in Neighborhood Commercial Districts, subject to the
requirements o[Sections 179.2 and 202.9, that combines a minimum o[two o[the following distinct
Uses within a space that may be operated by one or more business operators:
(1)
Arts Activities;
(2)
Restaurant, Limited,·
{3)
Retail Sales and Services, General;
(4)
Service, Personal;
(5)
Service, Retail Professional; and
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(6)
Trade Shop.
* * * *
Restaurant, Limited. A Retail Sales and Service Use that serves ready-to-eat foods and/or
drinks to customers for consumption on or off the premises, that may or may not have seating.
It may include wholesaling, manufacturing, or processing of foods, goods, or commodities on
the premises as an Accessory Use as set forth in Sections 204.3 or 703.2 depending on the
zoning district in which it is located. It includes, but is not limited to, foods provided by
sandwich shops, coffee houses, pizzerias, ice cream shops, bakeries, delicatessens, and
confectioneries meeting the above characteristics, but is distinct from a Specialty Grocery,
Restaurant, and Bar. Within the North Beach SUD, it is also distinct from Specialty Food
Manufacturing, as defined in Section 780.3(b). It shall not provide on-site beer and/or wine
sales for consumption on the premises, but may sellprovide offsite beer and/or wine S£f1es for
consumption off the premises with a California Alcoholic Beverage Control Board License type
20 (off-sale beer and wine), i[all areas devoted to the display and sale o[alcoholic beverages
occupy less than 15% of the Occupied Floor Area of the establishment (including all areas
devoted to the display and sale ofalcoholic beverages). Such businesses shall operate with the
specified conditions in Section 202.2(a)(1 ).
* * * *
Retail Sales and Service, General. A Retail Sales and Service Use that provides goods
and/or services to the general public and that is not listed as a separate Retail Sales and
Service Use in this Section ofthe Codel02. This use includes, but is not limited to the sale or
provision of the following goods and services:
(a)
Personal items such as tobacco and magazines;
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(b)
Self-service laundromats and dry cleaning, where no portion of a building
occupied by such use shall have any opening other than fixed windows and exits required by
law within 50 feet of any R District;
(c)
Household goods and service (including paint, fixtures,_ and hardware, but
excluding other building materials);
(d)
(e)
(f)
(g)
(h)
(i)
Variety merchandise, pet supply stores,_ and pet grooming services;
Florists and plant stores;
Apparel and accessories;
Antiques, art galleries, art supplies,_ and framing service;
Home furnishings, furniture,_ and appliances,:
Books, stationery, greeting cards, office supplies, copying service, music,_ and
sporting goods; and
Toys, gifts, and photographic goods and services.
* * * *
Service, Personal. A Retail Sales and Services Use that provides grooming services to the
individual, including salons, cosmetic services, tattoo parlors, and health spas, bathhouses,
and steam rooms. Personal Service does not include Massage Establishments or Gym, which
are defined separately in this Section 102.
* * * *
Service, Retail Professional. A Retail Sales and Service Use that provides to the general
public, general business, or professional services including, but not limited to, management,
clerical, accounting, legal, consulting, insurance, real estate brokerage, and travel services. It
may provide services to the business community, provided that it also provides services to the
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general public. Otherwise, it shall be considered a Non-Retail Professional Service Use as
defined in this Section o.fthe Planning Codel02.
This use does not include research service of an industrial or scientific nature in a
commercial or medical laboratory, other than routine medical testing and analysis by a health-
care professional or hospital.
* * * *
Trade Shop. A Retail Sales and Service Use that provides custom-crafted goods and/or
services for sale directly to the consumer, reserving some storefront space for display and
retail service, subject to the conditions in Section 202.2. A trade shop includes, but is not
limited to:
(a)
Repair of personal apparel, accessories, household goods, appliances,
and similar items, but excluding repair of motor vehicles and structures;
(b)
(c)
(d)
Upholstery services;
Carpentry;
Printing of a minor processing nature, including multi-copy and blueprinting
services and printing of pamphlets, brochures, resumes, and small reports, but excluding
printing of books, magazines, or newspapers;
(e)
(f)
Tailoring; and
Other artisan craft uses, including fine arts uses. Arts Activities and Light
Manufacturing shall be considered distinct from Trade Shops.
* * * *
Section 4. The Planning Code is hereby amended by adding Section 179.2, and
Section 202.9 to read as follows:
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SEC. 179.2. FLEXIBLE RETAIL USES.
(a)
Applicability. This Section shall applv to Flexible Retail Uses as defined in Section 102.
Abandonment. A Flexible Retail Use must operate with at least two uses at any given
time. A Flexible Retail Use that operates only one Use for a period o[90 days or more shall be deemed
abandoned, and no new Flexible Retail Use shall be restored without the issuance of a new building
permit. However, based on a good faith showing that the operator has diligently attempted to locate
and establish a second permitted Use within the Flexible Retail Use, the Zoning Administrator may
grant a 90 days extension. Ifsuch extension passes without a second permitted Use established within
the Flexible Retail Use, then the Flexible Retail Use shall be deemed abandoned.
SEC. 202.9. FLEXIBLE RETAIL USES.
(a)
Applicability. This Section shall apply to Flexible Retail Uses as defined in Section 102.
Flexible Retail shall be permitted in neighborhood commercial districts in the following Flexible Retail
Zones:
{J)
Zone 1: shall comprise all oft hat portion oft he City and County commencing at
the point o[the intersection o[the shoreline o[the Pacific Ocean and the eastern boundary o[Lincoln
Park, and proceeding southerly along the eastern boundary of Lincoln Park to California Street, and
proceeding easterly along California Street to 26th Avenue, and proceeding northerly along 26th
Avenue to Lake Street, and proceeding easterly along Lake Street to Arguello Boulevard, and
proceeding southerly along Arguello Boulevard to Euclid Avenue, and proceeding easterly along
Euclid Avenue to Bush Street, and proceeding easterly along Bush Street to Gough Street, and
proceeding southerly along Gough Street to Geary Boulevard, and proceeding easterly along Geary
Boulevard to Van Ness Avenue, and proceeding southerly along Van Ness Avenue to Oak Street, and
proceeding westerly along Oak Street to Buchanan Street, and proceeding southerly along Buchanan
Street to Hermann Street, and proceeding westerly along Hermann Street to Steiner Street, and
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proceeding northerly along Steiner Street to Waller Street, and proceeding ·westerly along Waller
Street to Buena Vista Avenue East, and proceeding westerly along Buena Vista Avenue East to Haight
Street, and proceeding westerly along Haight Street to Buena Vista Avenue West, and proceeding
southerly along Buena Vista Avenue West to Frederick Street, and proceeding westerly along Frederick
Street to Ashbury Street, and proceeding southerly along Ash bury Street to Clayton Street, and
proceeding southerly along Clayton Street to Twin Peaks Boulevard, and proceeding southerly along
Twin Peaks Boulevard to Clarendon Avenue, and proceeding westerly along Clarendon Avenue to
Stanyan Street, and proceeding northerly along Stanyan Street to Belgrave Avenue, and proceeding
westerly along Belgrave Avenue to a westerly extension of Belgrave Avenue, and proceeding southerly
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and westerly to the intersection o[said line and Johnstone Drive, and proceeding westerly along
Johnstone Drive to Medical Center Way, and proceeding northerly along Medical Center Way to
Parnassus Avenue, and proceeding westerly along Parnassus Avenue to 4th Avenue, and proceeding
southerly along the southern extension of 4th Avenue to Kirkham Street, and proceeding westerly along
Kirkham Street to 9th Avenue, and proceeding northerly along 9th Avenue to Judah Street, and
proceeding westerly along the southern edge o[Judah Street to 19th Avenue, and proceeding southerly
along 19th Avenue to Sloat Boulevard, and proceeding westerly along the northern edge o[Sloat
Boulevard, and following a straight-line extension o[Sloat Boulevard to the shoreline o[the Pacific
Ocean proceeding northerly along said shoreline to the point of commencement.
(2)
Zone 2: shall comprise all o[that portion o[the City and County commencing at
the point o[the intersection o[Junipero Serra Boulevard and Brotherhood Way, and proceeding
northerly along the eastern edge o[Junipero Serra Boulevard to Garfield Street, and proceeding
easterly along Garfield Street to Grafton Avenue, and continuing easterly along Grafton Avenue to
Mount Vernon Avenue, and proceeding easterly along Mount Vernon Avenue to Howth Street, and
proceeding northerly along Howth Street to Geneva Avenue, and proceeding easterly along Geneva
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Tingley Street, and proceeding southerly along said line to Tingley Street, and proceeding southerly
along Tingley Street to Alemany Boulevard, and proceeding easterly along Ale many Boulevard to
Congdon Street, and proceeding southerly along Congdon Street to Silver Avenue, and proceeding
easterly along Silver Avenue to Madison Street, and proceeding southerly along Madison Street to
Burrows Street, and proceeding westerly along Burrows Street to Prague Street, and proceeding
southerly along Prague Street to Persia Avenue, and proceeding easterly along Persia Avenue to
Mansell Street, and continuing easterly along Mansell Street to San Bruno Avenue, and proceeding
northerly and easterly along San Bruno Avenue along San Bruno Avenue to Ware Street, and
proceeding easterly along Ware Street to Bayshore Boulevard, and proceeding northerly along
Bayshore Boulevard to a straight line extension tram Bayshore Boulevard to San Bruno Avenue, and
proceeding northerly along San Bruno Avenue to 23rd Street, and proceeding easterly along 23rd
Street to Vermont Street, and proceeding northerly along Vermont Street to 16th Street, and proceeding
easterly along 16th Street to a straight-line extension tram 16th Street, and proceeding easterly along
said extension to the shoreline to the San Francisco Bay, and proceeding southerly along shoreline to
the San Francisco/San Mateo county border, and proceeding westerly along the San Francisco/San
Mateo county border to Saint Charles Avenue, and proceeding northerly along Saint Charles Avenue to
Interstate 280, and proceeding northeasterly along Interstate 280 to a northerly straight-line extension
to Orizaba Avenue, and proceeding northerly along said line to Alemany Boulevard, and proceeding
westerly along Ale many Boulevard to Brotherhood Way, and proceeding westerly along Brotherhood
Way to the point o[commencement.
(b)
Requirements.
(1)
Underlying Uses incorporated into Flexible Retail. Flexible Retail, as defined
in Section I 02, incorporates two or more specific uses. Each such use must be Principally Permitted in
the underlying zoning district. If a use requires a Conditional Use Authorization in the underlying
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zoning district, then a Conditional Use Authorization must be obtained before such use may be
permitted as part o[a Flexible Retail Use.
{2)
Minimum o(two Uses. A Flexible Retail Use must operate with at least two
Uses at any given time.
Section 5. Article 2 of the Planning Code is hereby amended by revising Section 205.1
to read as follows:
SEC. 205.1. TEMPORARY USES: SIXTY-DAY LIMIT.
A temporary use may be authorized for a period not to exceed 60 days for any of the
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following uses:
(a) Neighborhood carnival, exhibition, celebration or festival sponsored by an
organized group of residents in the vicinity or, in Neighborhood Commercial, Mixed Use, PDR,
C, or M Districts, sponsored by property owners or businesses in the vicinity;
(b) Booth for charitable, patriotic or welfare purposes;
(c) Open air sale of agriculturally produced seasonal decorations, including, but not
necessarily limited to, Christmas trees and Halloween pumpkins:-,:_
(d) Pop-Up Retail, which is a temporary Retail Use permitted within a space occupied by a
legally established Commercial Use. 