Planning commission backs downtown adaptive‑reuse and impact‑fee waiver package with staff modifications

The Planning Commission voted to recommend a legislative package aimed at reviving downtown: a commercial‑to‑residential adaptive‑reuse program, expanded permitted uses for certain commercial zones, temporary "pop‑up activation" authority for up to one year and a complementary ordinance to waive development impact fees for qualifying conversion projects. Staff said the package implements elements of the mayor’s downtown roadmap and is intended to reduce barriers for smaller property owners and create near‑term conversions.

Key features include: eligibility for projects in defined downtown C zoning districts through 12/31/2028; waivers or modifications for rear yard, open space, exposure, bike‑parking, and scheduling of Planning Commission hearings (threshold raised for required hearings to 120 feet); allowance for ILOs and live‑work uses in adaptive reuse projects; a new flexible workspace use; and a program to waive impact fees other than inclusionary housing fees. Staff recommended several clarifications and modifications to the draft, including expanding the western boundary to include all intended C2/C3 parcels east of Franklin, providing an alternative route to comply with exposure requirements, waiving TDM requirements for adaptive reuse projects, and allowing additions up to one‑third of gross floor area (rather than 20%).

Public commenters expressed both support (housing advocates, Union Square Alliance, architectural community) and concern (Somewhat Filipinas, community groups) asking for more time for outreach and to study equity impacts, dwelling‑unit mix, and the removal of hearing requirements. Commissioners discussed seismic retrofit pathways, the 5‑year sunset/2028 application deadline and a recommendation (offered from the dais) to hold a Planning Commission evaluation hearing in early 2027 to assess program performance and advise the Board of Supervisors about whether to extend the application window. The commission approved staff recommendations and the Diamond suggestion to hold a check‑in, and voted unanimously to forward the package to the Board with amendments.