AMENDED IN COMMITTEE
FILE NO. 200673
8/31/2020 ORDINANCE NO.
Supervisor Peskin
BOARD OF SUPERVISORS
Page 1
[Planning Code - Conversion of Certain Limited Restaurants to Restaurants - North Beach
Neighborhood Commercial District Special Use District]
Ordinance amending the Planning Code to allow certain Limited Restaurants in the
North Beach Neighborhood Commercial Special Use District to convert to Restaurants
that may apply for liquor licenses; and affirming the Planning Department’s
determination under the California Environmental Quality Act; and making findings of
consistency with the General Plan and the eight priority policies of Planning Code
Section 101.1.
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 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. The Board of Supervisors of the City and County of San Francisco hereby
finds and determines that:
(a)
Environmental and Planning Code Findings.
(1)
The Planning Department has determined that the actions contemplated
in this ordinance comply with the California Environmental Quality Act (California Public
Resources Code Section 21000 et seq.). Said determination is on file with the Clerk of the
Board of Supervisors in File No. 200673, and is incorporated herein by reference. The Board
affirms this determination.
(2)
On August 27, 2020, the Planning Commission, in Resolution No. 20779,
adopted findings that the actions contemplated in this ordinance are consistent, on balance,
182-20
Supervisor Peskin
BOARD OF SUPERVISORS
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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. 200673, and is incorporated herein by reference.
(3)
On August 27, 2020, the Planning Commission, in Resolution No. 20779,
approved this legislation, recommended it for adoption by the Board of Supervisors, and
adopted findings that it will serve the public necessity, convenience and welfare. Pursuant to
Planning Code Section 302, 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. 200673, and is
incorporated herein by reference herein.
(b)
Specific Findings.
(1)
The COVID-19 pandemic has created unprecedented challenges for
small businesses in San Francisco, including for food establishments that fall under the
definitions for Restaurants and Limited Restaurants under the Planning Code. The City has
responded with multiple policies to provide food establishments and other small businesses
with grants, low- and no-interest loans, and allow innovative uses of the public realm through
the Shared Spaces program.
(2)
The North Beach neighborhood has among the highest concentrations of
liquor licenses of any neighborhood in San Francisco, and has long restricted new liquor
licenses as well as adopted policies to decrease the number of liquor licenses in the
neighborhood through various attrition mechanisms. That said, surveys by restaurant industry
stakeholders now suggest that the financial impacts of the COVID-19 pandemic many have
long-lasting effects on the restaurant industry, potentially prompting as many as 50% of
restaurants in San Francisco to close entirely, and many to dramatically alter their business
models as they seek ways to adapt to the new economic conditions.
Supervisor Peskin
BOARD OF SUPERVISORS
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(3)
The actions contemplated in this ordinance aim to provide relief to Limited
Restaurants that also operate as Bona Fide Eating Places in the North Beach Special Use
District but that have nevertheless been precluded from acquiring liquor licenses due to the
aforementioned high concentration of liquor licenses and resulting policies to reduce the
number of liquor licenses in the neighborhood. This narrow relief is intended to apply to
Limited Restaurants that have provided meal service to patrons and otherwise have met the
definition of Bona Fide Eating Places under the Planning Code, even though the definition of
Limited Restaurants also includes specialty food establishments like gelaterias and specialty
bakeries that do not provide meal service.
Section 2. The Planning Code is hereby amended by revising Sections 722 and 780.3,
to read as follows:
SEC. 722. NORTH BEACH NEIGHBORHOOD COMMERCIAL DISTRICT.
* * * *
(6) NORTH BEACH LIQUOR LICENSES FOR RESTAURANTS (Section 780.3): A
Restaurant Use may only add ABC license types 02, 23, 41, 47, 49, 59 or 75 as a Conditional
Use on the First Story if, in addition to the criteria set forth in Section 303, the Planning
Commission finds that the Restaurant is operating as a Bona Fide Eating Place as defined in
Section 102. Should a Restaurant fail to operate as a Bona Fide Eating Place for any length of
time, the Conditional Use authorization shall be subject to immediate revocation. To verify that
the Restaurant is continuing to operate as a Bona Fide Eating Place, records of the
Restaurant’s gross receipts, showing that a minimum of 51% of its gross receipts within the
last year is from food sales prepared and sold to guests on the premises, shall be provided to
Supervisor Peskin
BOARD OF SUPERVISORS
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the Department upon request. All records and information shall be submitted to the
Department under penalty of perjury.
SEC. 780.3. NORTH BEACH SPECIAL USE DISTRICT.
* * * *
(c) Controls. The following provisions shall apply within such District:
* * * *
(2) Alcohol Licenses.
(A)
A Restaurant may provide on-site beer, wine, and/or liquor sales
for drinking on the premises (with ABC license types 02, 23, 41, 47, 49, 59 or 75) as a
Conditional Use on the First Story if, in addition to the criteria set forth in Section 303, the
Planning Commission finds, based on information submitted to the Department by the
applicant, that the Restaurant is and will continue to operate as a Bona-Fide Eating Place as
defined in Section 102. Should a Restaurant fail to operate as a Bona-Fide Eating Place for
any length of time, the Conditional Use authorization shall be subject to immediate revocation
per Planning Code Section 303(f). To verify that the Restaurant is continuing to operate as a
Bona-Fide Eating Place, records of the Restaurant’s gross receipts, showing that a minimum
of 51% of its gross receipts within the last year preceding the Department’s request is from
food sales prepared and sold to guests on the premises, shall be provided to the Department
upon request. All records and information shall be submitted to the Department under penalty
of perjury.
(B)
Subject to the requirements set forth in this subsection (B), a Limited
Restaurant that existed as of March 1, 2020, may apply for a permit to convert to Restaurant use within
three six months after the effective date of the ordinance in Board File No. 200673.
Supervisor Peskin
BOARD OF SUPERVISORS
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(i)
The application to convert to Restaurant Use shall include
records submitted under penalty of perjury showing that the Limited Restaurant has operated as a
Bona Fide Eating Place for at least four three full calendar months between March 1 November 1,
2019 and February 29 September 1, 2020. The Department shall reject the application if the records
do not support the application for such conversion; otherwise, it shall approve it.
(ii)
If the application to convert is approved pursuant to this
subsection, Restaurant Use shall be principally permitted, including for purposes of being eligible
to apply for a Conditional Use Authorization and, notwithstanding any other Section of the
Planning Code, shall not require separate Conditional Use Authorization to permit the sale of
alcohol on the premises under Section 780.3(c)(2)(A).
(iii)
Applications to convert pursuant to this subsection shall be
exempt from the notice provisions of Planning Code Section 311 and from the requirement
under Section 780.3 that Restaurants only occupy spaces that were previously occupied by a
Restaurant or a Bar.
(iv)
This subsection 780.3(c)(2)(B) shall expire three six months
after the effective date of the ordinance in Board File No. 200673, and the City Attorney shall
thereafter cause this subsection to be removed from the Planning Code and the remaining subsections
of this Section 780.3 to be renumbered accordingly.
* * * *
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.
Supervisor Peskin
BOARD OF SUPERVISORS
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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
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:
/s/ Andrea Ruiz-Esquide
ANDREA RUIZ-ESQUIDE
Deputy City Attorney
n:\legana\as2020\1900487\01474597.docx
Tails
City and County of San Francisco
City Hall
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94102-4689
Ordinance
Ordinance amending the Planning Code to allow certain Limited Restaurants in the North Beach
Special Use District to convert to Restaurants that may apply for liquor licenses; and affirming the
Planning Department’s determination under the California Environmental Quality Act; and making
findings of consistency with the General Plan and the eight priority policies of Planning Code Section
101.1.
File Number:
September 22, 2020
Date Passed:
200673
August 31, 2020 Land Use and Transportation Committee - AMENDED, AN AMENDMENT
OF THE WHOLE BEARING NEW TITLE
August 31, 2020 Land Use and Transportation Committee - CONTINUED AS AMENDED
September 14, 2020 Land Use and Transportation Committee - RECOMMENDED AS
COMMITTEE REPORT
September 15, 2020 Board of Supervisors - PASSED ON FIRST READING
Ayes: 11 - Fewer, Haney, Mandelman, Mar, Peskin, Preston, Ronen, Safai,
Stefani, Walton and Yee
September 22, 2020 Board of Supervisors - FINALLY PASSED
Ayes: 11 - Fewer, Haney, Mandelman, Mar, Peskin, Preston, Ronen, Safai,
Stefani, Walton and Yee
Page 1
City and County of San Francisco
Printed at 1:46 pm on 9/23/20