Department approves conditional use for Chestnut Street grocery and residential project

The San Francisco City Council meeting on July 4, 2025, focused on the proposed development project at 2,055 Chestnut Street, which seeks conditional use authorization for a large lot with a planned unit development (PUD). The project includes modifications to rear yard and parking/loading requirements, as well as plans for a basement-level grocery store that exceeds existing use size limits.

The streetscape plan for the project has been reviewed and approved by a multi-city agency advisory team. A geotechnical investigation was conducted to assess groundwater issues and the foundations of nearby buildings. The findings indicate that adherence to the geotechnical recommendations will mitigate potential impacts related to soil and geological hazards.

The project proposes to increase the density of dwelling units from the permitted maximum of 41 to 49 units, while also including nine affordable housing units. The design aims to integrate courtyards and light wells instead of a traditional rear yard, which the department supports as it aligns with the surrounding area’s massing.

The department received 16 supportive comments highlighting the project's modern design and increased commercial space, while one comment opposed the project, citing insufficient parking for the proposed density. Despite this opposition, the department believes the project aligns with the city’s general plan objectives and enhances neighborhood diversity.

During the meeting, concerns were raised by an appellant regarding potential liquefaction risks associated with the site, referencing past issues with nearby developments. The department responded that all concerns raised in the appeal have been addressed, and they recommend approval of the project, pending the denial of the appeal.

The meeting concluded with the department staff available for questions, emphasizing the project's potential benefits to the community while ensuring compliance with state and local regulations.