San Francisco approves office development at 660 Third Street despite outstanding fees

In the heart of San Francisco's bustling city hall, a pivotal meeting unfolded, addressing the future of a historic building at 660 Third Street. The atmosphere was charged with anticipation as city commissioners gathered to deliberate on a long-standing issue that has lingered for nearly a decade. The focus was on a proposal to legalize office space within a former industrial building, a move that could reshape the landscape of the Central SoMa Mixed Use District.

Rich Sucre, representing the project sponsor, outlined the details of the proposal, which seeks to authorize approximately 36,699 square feet of office space across four floors of the building. This initiative aims to rectify the building's zoning status, which has not reflected its actual use as office space since the 1980s. The project, however, is not without its challenges. It requires a variance due to the planning code's stipulations regarding active ground-floor uses, which currently do not recognize office spaces as active uses.

The history of the building is steeped in local lore, having been home to the iconic auction house Butterfield and Butterfield since 1980. The Raven family, who has owned the property since 1962, is now seeking to align the building's official records with its long-standing use. Jim Rubin, the project sponsor's representative, recounted the arduous journey that began in 2013 when they first applied for a conditional use authorization. The process has been fraught with complications, particularly following a surge of interest in office conversions in the wake of Pinterest's relocation, which shifted the dynamics of the local real estate market.

Public comments during the meeting reflected a mix of support and concern. Some community members voiced apprehension about the implications of converting industrial spaces to office use, emphasizing the need for adequate housing to accompany such developments. Sue Hester, a local advocate, highlighted the importance of ensuring that developers pay their fair share in fees to support housing initiatives, arguing that office spaces should not come at the expense of residential needs.

As the discussion progressed, commissioners sought clarity on the financial obligations tied to the project. The zoning administrator confirmed that significant penalties remain unpaid, amounting to approximately $200,000. However, the project sponsors expressed their commitment to addressing these fees, indicating a willingness to comply with the city's requirements.

Ultimately, the commission voted unanimously to approve the project, contingent upon the payment of outstanding fees. This decision marks a significant step forward for the Raven family and the future of 660 Third Street, as they navigate the complexities of urban development in a city that is constantly evolving. As the meeting adjourned, the implications of this approval resonated beyond the walls of city hall, hinting at a future where historic buildings can adapt to modern needs while honoring their past.