Commission approves car-rental use at Fairmont Hotel storefront on Powell Street after debate over vacancy and corner character

The Planning Commission voted 6–1 on Sept. 7 to approve a conditional use authorization allowing an automotive rental operation, proposed by Sixth, to occupy a vacant ground-floor retail space at 815 Powell Street, adjacent to the Fairmont Hotel. Planning staff recommended approval, saying the use would activate a vacant storefront, increase employment opportunities and serve hotel guests; staff noted two recent public comments expressing safety and parking concerns.

Dakota Speicher of the Planning Department described the project as a roughly 3,000-square-foot retail space with approximately 10 garage parking spaces inside the hotel’s existing garage; the department recommended approval. Caitlin Schuber and Tara Sullivan of the sponsor’s consultant team said the Fairmont approached Sixth to fill a space empty since 2020 and that the operator expects to occupy primarily a small windowed portion and to provide up to four jobs.

Commissioner Moore, who opposed the approval, said the Powell & California corner is “one of the most iconic spaces” in the city and argued that a more pedestrian-oriented use or subdivision to preserve a café or bookstore would better serve the public realm. Commissioner Diamond and several others countered that a long-vacant storefront on an iconic corner detracts from street life and that the limited number of cars (10 spaces) and the hotel’s interest in activating the space weighed in favor of approval.

Tiffany Calderon, representing Sixth, said the Fairmont had actively sought tenants for three years and that hospitality and lease constraints limited options; Sixth indicated they might occupy a smaller storefront presence and were open to sharing/demising the space. Rudy Gonzales of the Building Trades provided a late comment in favor of the use, noting worker benefits and hotel economic recovery.

The commission briefly considered a continuance to allow a Fairmont representative to attend; that continuance failed 2–5. The final approval with conditions passed 6–1, with Commissioner Moore voting against.

What’s next: Planning staff will finalize approval conditions and the sponsor will work with DBI on building permits and any demising work required to subdivide the space if pursued later.