Planning Code - Priority Processing for Certain Commercial Uses
Ord. No. 0114-25
in effectFILE NO. 250538
AMENDED IN COMMITTE
6/30/2025
ORDINANCE NO. 114-25
[Planning Code - Priority Processing for Certain Commercial Uses]
Ordinance amending the Planning Code to update eligibility requirements for the
priority processing program for certain commercial uses, including enabling eligible
uses in the North Beach Neighborhood Commercial District, the North Beach Special
Use District, the Calle 24 Special Use District, and Formula Retail uses with fewer
than 20 establishments to participate in the program, and updating scheduling and
extension requirements for the priority processing program; reaffirming 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 italics Times 1Ve,F 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. 250538 and is incorporated herein by reference. The Board affirms
this determination.
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 1
(b) On June 26, 2025, the Planning Commission, in Resolution No. 21762, 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
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. 250538, 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. 21762, 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. 250538.
Section 2. Background and General Findings.
(a) Fast, predictable, and transparent permitting processes will create new jobs,
businesses, and homes, as well as facilitate the City's economic recovery from the COVID-19
pandemic. Commonly referred to as "PermitSF," the City's effort to reform permitting consists
of improving the customer experience by streamlining approval processes; promoting
government accountability to provide certainty about the delivery of government services; and
centralizing technology to create a single point of permitting access.
(b) This ordinance enhances the customer experience and promotes government
accountability by increasing the certainty and transparency of the regulatory process for small
businesses. Streamlining the conditional use authorization process will create a clearer
pathway to open new businesses and will help drive the city's economic recovery.
Section 3. Article 3 of the Planning Code is hereby amended by revising Section
303.2, to read as follows:
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 2
SEC. 303.2. PRIORITY PROCESSING FOR CERTAIN USES IN COMMERCIAL
SPACE: EXPEDITED CONDITIONAL USE REVIEW AND APPROVAL PROCESS AND
REDUCED APPLICATION FEE.
(a) Findings.
(1) In April 2013, the Planning Commission adopted the Small Business Priority
Processing Pilot Program. The stated goal of the pilot program was to accelerate the review of
certain small business applications without compromising the review times of other
applications.
(2) Building on the success of the pilot program, Planning Department staff in
consultation with staff from the Office of Small Business proposed expanding the program to
additional types of applications. The expanded program was adopted by the Planning
Commission in February 2015 and renamed the Community Business Priority Processing
Program. As expressed in the Commission's adoption Q[_Resolution No. 19323, the intent
was to support the business community - especially small and mid-sized businesses - and to
increase efficiencies in the way the Commission and Department handle related applications.
(3) By enacting this Section 303.2, the Board of Supervisors underscores the
importance of small and mid-sized businesses to the economic vitality of San Francisco's
neighborhoods and to the City as a whole, its residents, and visitors. The intent of this Section
303.2 is to expedite the review and hearing process for these vital small and mid-sized
businesses without compromising public notice and input or the review times of other
applications, and to build upon the success of the Community Business Priority Process
Program by expanding the scope of eligible projects and ensuring that all eligible projects are
considered accordingly, while preserving critical opportunities for community input and
accountability to the legislative branch of government.
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 3
(4) Due to the Calle 24 Special Use District's unique history and special
identity, the projects within its boundaries require special consideration in order to retain,
enhance, and support its character. It is, therefore, exempted from the priority processing
provisions of this Section 303.2.
The City first recognized the area's unique history and special character in 2014,
when in Board of Supervisors Resolution No. 168-14 it established the Calle 24
C"Veinticuatro") Latino Cultural District. The Resolution memorialized "a place whose richness
of culture, history and entrepreneurship is unrivaled in San Francisco." A 2014 report by San
Francisco Architectural Heritage found that many of the long-standing community-serving
businesses within the area were at risk of displacement due to San Francisco's volatile
economic climate despite continued value and a record of success.
The special character of the area was further recognized in 2017 when
Ordinance No. 85-17 was enacted to establish the Calle 24 Special Use District. In enacting
that ordinance, the Board of Supervisors specifically found, among other things, that "[t]he mix
of businesses and uses, including Legacy Businesses, murals, festivals and architectural
neighborhood design and character in the Calle 24 Special Use District contribute to a strong
sense of neighborhood and a unifying identity." This area continues to require special
consideration in order to retain, enhance, and support its unique history and character,
including providing economic and workforce opportunities for local residents, supporting the
production and offering of local or Latino artwork, and making sure that the area offers a
range of goods and services available and accessible to residents, including immigrant and
low-income and moderate-income households.
{4§2 On June 26, 2025 the Planning Commission adopted Resolution No. 21761 to
consolidate the Community Business Priority Processing Program with the priority processing
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 4
program under this Section 303.2. As many o(the features o(these two programs overlap,
consolidating the two programs will promote efficiency and reduce confitsion.
(4) The Calle 2 ,1 Special Use District is still in its infancy., and due to its 1,mique history
and special identity the projects ,1,•ithin its boundaries require special consideration in order to retain,
enhance, and support its charactf!r. !: is, therefore, exonptedfrom thepriorityprocessingprm·isions o-f
this Section 303. 2.
The Cityfir~t recognized the area 's unique history and special character in 201 4, when in
Resohttion l'·f.o. 168 1 4 it established the Calle 2 </ (" Veintirnatro ") Latino Cultural District. The
Resolution memorialized "a place H1hose richness &/culture, history a11d e11treprenettrship is unrivaled
in San Francisco. " A 2014 report by San Francisco Architectural Heritage found that many &jthe
long standing comrmmity serving bblsinesses within the area were at risk &/displacement due to San
Francisco's volatile economic climate despite contim,ted value and a record of success.
The special character o-fthe area wasfarther recognized in 2017 when Ordinance No. 85 17
was enacted to establish the Calle 2 4 Special Use District. In enacting that ordinance, the Board
spectficallyfound, among other things, that "{t}he :·'11ix of businesses and uses, including Legacy
Businesses, murals, festh;als and architectural neighborhood design and character in the Calle 24
Special Use District contribute to a strong sense of neighborhood and a unifj,·i,"lg identijj,·. " This area
contim,tes to require special consideration in order to retain, enhance, and su-pport its uniqtw history
and character, including prmiding economic and ',Forkforce opportunities for local residents,
stt-pporting the production and o-ffering of local or Latino artwork, and making sure that the area offers
a range ofgoods a11d services avaiiEtble Etnd accessible to residents, including immigrant and low
income and moderate income households.
(b) Priority Processing for Certain Uses. Applications for Conditional Use
authorization that comply with the requirements of subsection (c) are eligible for priority
processing and a prorated application fee. Eligibility for priority processing shall not require
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 5
any application separate from a completed application for Conditional Use authorization.
Unless modified by this Section 303.2-, the provisions of Section 303 shall apply.
(c) Eligibility for Priority Processing. An application for a Conditional Use
authorization qualifies for priority processing ("eligible application") pursuant to this Section
303.2 if it is seeking to establish, alter, enlarge, or intensify a commercial use on the first story
or below, or on the second story where the commercial use would operate on both the first
and second stories, in the subject building and if it complies with all of the following
requirements:
(1) It pertains exclusively to Non--Residential Uses;
(2) It is limited to changes of use, tenant improvements, or other interior or
storefront work and does not involve any new construction or building expansion;
(3) It does not involve the removal of any Dwelling Units or Unauthorized Units;
(4) It does not involve a Formula Retail use, unless the Formula Retail use in
question has fewer than 20 other establishments;
(5) It does not propose or require the consolidation of multiple storefronts;
(6) It does not seek to provide off-street parking in a quantity beyond that
allowed as of right; a-RG
(7) It does not seek to establish or expand any of the following uses:
(A) Adult Entertainment,.;_
(B) Drive-up Facility,.;_
(C) Fringe Financial Service,.;_
(D) },{edical Cannabis Dispensary Retai/;-;,
(E) Tobacco Paraphernalia Establishment,.· or
(F) Wireless Communication Facility:-;'--tfflti~
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 6
(8) Is not ·within the Calle 2 'I Special Use District, as described and set forth in Section
249. 59 &/this Code.
(8) It is not within the Calle 24 Special Use District (Planning Code Section
249.59); and
(9) It is not within the 1\Torth Beach Neighborhood Conunercial District, €lS described
and set forth in Section 722, or the North Beach Special Use District, as described and set forth in
Section 780. 3.
(9) It is not within the North Beach Neighborhood Commercial District,
(Planning Code Section 722), or the North Beach Special Use District (Planning Code Section
780.3).
If the application qualifies for priority processing, the Department shall notify the applicant &f
the date oftwceptance ofthe compkte application andofthe applicant's eligibilityforpriority
processing. The application fee shall be prorated pursuant to subsection (I).
(d) Expedited Commission Hearing. An eligible application shall be scheduled for a
public hearing on the Planning Commission's co1qsent calendar within 90 days from the date
that the application has been deemed complete, unless the hearing date is extended pursuant
to subsection (e). An application is deemed complete when the application and filing fee have
been accepted by the Department. The Planning Commission shall develap rules and regulations to
ensure that eligible applications are heard and determined within 90 days without compromising the
review times of other applications.
(e) Extension of Commission Hearing Date. The Planning Commission may at any
time adopt a one-time extension of not more than 60 days of the hearing date for an eligible
application beyond 90 days if+
(I) the Pltmning Director or the Director's designee requests in writing that the item be
removedfrom the Commission's consent calendar,· or
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 7
(2) any member ofthe Planning Commission requests that the item be removedfrom the
Commission's consent calendar; or
(-J)- any neighborhood organization maintained on a list by the Planning Department
pursuant to subsection 311 (d)(4) submits within 60 days ofthe submission ofa complete
Conditional Use authorization application, or at anypointprior t-0 tJw Pl-anning Co,"lunission 's
schedblled hearing, a letter of opposition or written request for a continuanccthat the item be
removedfrom the Commission's consent calendar at least one day before the hearing.
(g) Repov't to the Board ofSuper,;isors. Orw yearfrom the effective date of this Sectio;1 303.2
and for three years thereafter on an annual basis, the Planning Department shall sblbmit to the Board
ofSupervisors a report shmFing t1w number and percentage r:>f eligible applications that are considered
within 90 days of the date the Department has deemed the application complete and the reaso11 or
reasons ~why eligible applications were not heard within 90 days, ifa,1y.
Section 4. 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 5. 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
Mayor Lurie; Supervisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 8
additions, and Board amendment deletions in accordance with the "Note" that appears under
the official title of the ordinance.
APPROVED AS TO FORM:
DAVID CHIU, City Attorney
By:
/s/ Giulia Gualco-Nelson
GIULIA GUALCO-NELSON
Deputy City Attorney
n:\legana\as2025\2500314\01851502.docx
Mayor Lurie; SupeNisors Melgar, Sauter
BOARD OF SUPERVISORS
Page 9
City and County of San Francisco
Tails
Ordinance
City Hall
I Dr. Carlton B. Goodlett Place
San Francisco, CA 94 I 02-4689
File Number:
250538
Date Passed: July 15, 2025
Ordinance amending the Planning Code to update eligibility requirements for the priority processing
program for certain commercial uses, including enabling Formula Retail uses with fewer than 20
establishments to participate in the program, and updating scheduling and extension requirements for
the priority processing program; reaffirming 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.
June 30, 2025 Land Use and Transportation Committee - AMENDED, AN AMENDMENT OF
THE WHOLE BEARING NEW TITLE
June 30, 2025 Land Use and Transportation Committee - RECOMMENDED AS AMENDED
July 08, 2025 Board of Supervisors - PASSED, ON FIRST READING
Ayes: 11 - Chan, Chen, Dorsey, Engardio, Fielder, Mahmood, Mandelman, Melgar,
Sauter, Sherrill and Walton
July 15, 2025 Board of Supervisors - FINALLY PASSED
City and County of San Francisco
Ayes: 11 - Chan, Chen, Dorsey, Engardio, Fielder, Mahmood, Mandelman, Melgar,
Sauter, Sherrill and Walton
Pagel
Printed at 8:45 am on 7116/25
File No. 250538
ftL
,
City and County of San Francisco
Daniel Lurie
Mayor
Page2
I hereby certify that the foregoing
Ordinance was Fl NALLY PASSED on
7/15/2025 by the Board of Supervisors of the
City and County of San Francisco.
t
J 11 / 2 ~
Date Approved
Printed at 8:45 am on 7/16/25
References
amendsSec. 303.2
amendsSec. 304
amendsSec. 304.5
Source: sf_ordinance_pdfURL: https://sfbos.archive.sf.gov/sites/default/files/o0114-25.pdfFetched: 7/4/2026