SAN FRANCISCO CITY PLANNING COMMISSION MOTION NO

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1 Page 1 SAN FRANCISCO CITY PLANNING COMMISSION MOTION NO ADOPTING FINDINGS RELATING TO APPROVAL OF A DETERMINATION OF COMPLIANCE UNDER PLANNING CODE SECTION 309 FOR A PROPOSED PROJECT CONTAINING OFFICE, LIGHT MANUFACTURING AND PRODUCTION, DISTRIBUTION, AND PARKING, LOCATED AT 235 SECOND STREET ON ASSESSOR=S BLOCK 3736, LOTS 60, 61, 62, 64, 65, 66 AND 67 IN THE C-3-O(SD) (DOWNTOWN, OFFICE, SPECIAL DEVELOPMENT) DISTRICT AND THE 200S AND 350S HEIGHT AND BULK DISTRICT. RECITALS 1. On May 6, 1999, David P. Cincotta, Esq., on behalf of Associates ("Project Sponsor"), filed Application No E with the Planning Department for the City and County of San Francisco ("Department") for environmental evaluation of a proposal to demolish seven vacant buildings, adaptively reuse one existing building, and construct a project containing office, light manufacturing and production, distribution, and parking ("Project"). 2. On June 9, 1999, the Project Sponsor filed Application No BX ("Application") with the Department for (i) Planning Code Section 321 (Office Development Annual Limit) and Section 322 (Procedure for Administration of Office Development Limit) Project Authorization for up to 180,000 gross square feet of additional office space, and (ii) Planning Code Section 309 (Permit Review in C-3 Districts) determinations and exceptions for the Project. 3. On December 16, 1999 by Motion No , the Planning Commission (ACommission@) found the Final Environmental Impact Report (AFEIR@) prepared for the Project to be adequate, accurate and objective, and certified the completion of the FEIR in compliance with the California Environmental Quality Act (ACEQA@), the State CEQA Guidelines and Chapter 31 of the San Francisco Administrative Code. 4. On March 2, 2000 the Commission conducted a duly noticed public hearing at a regularly scheduled meeting on Application No BX. 5. In reviewing the Application, the Department and the Commission have reviewed and considered the information contained in the FEIR in accordance with the requirements of CEQA, the State CEQA Guidelines and Chapter 31 of the San Francisco Administrative Code.

2 Page 2 FINDINGS In evaluating the Project's Application, the Commission has also reviewed and considered the Case Report, studies, letters, plans, and other materials pertaining to this Project in the Department's case files, has reviewed and heard testimony and received materials from interested parties during the public hearing on the Project. Having reviewed all the materials identified in the Recitals above, and having heard oral testimony and arguments, this Commission finds, concludes and determines as follows: 1. The above Recitals are accurate and also constitute findings of this Commission. 2. Project Site/Present Use: The Project site is located on the east side of Second Street between Tehama and Clementina Streets, on, Lots 60, 61, 62, 64, 65, 66, and 67. The site is zoned C-3-O (SD) and is within 200S and 350S Height and Bulk Districts. The existing buildings on the site consist of a four-story building on Lot 67, on the north side of the site, and seven one and two-story buildings located on the remaining lots on the site=s south side. Six of the one and two-story buildings (Lots 61, 62, and 64-66) are interconnected with the four-story structure and together total approximately 125,420 square feet including approximately 2,500 square feet of office space, approximately 61,500 square feet of warehouse space and approximately 61,500 square feet of loading and distribution space. The four-story building has a height of 47' and contains approximately 88,000 square feet while the interconnected buildings total 37,400 square feet. These buildings were previously used for storing, hanging and distributing clothing. The operator was recently acquired by another company and has relocated to Southern California. The unattached building (Lot 60) is two stories with a basement and was used as a woodworking shop. The building contains approximately 3,800 square feet of manufacture and production space, approximately 2,000 square feet of storage and 200 square feet of office space. The owner has relocated the operation out of San Francisco due to expansion needs. 3. Nature of Project: The Project will demolish the seven(7) one and two-story buildings located on Lots 60, 61, 62, 64, 65 and 66, and add three floors to the existing four-story building, which will be integrated into the new 7-story structure. The new structure will have a height of approximately 90 feet and consist of approximately 244,000 gross square feet (gsf). This includes up to 180,000 square feet of office, approximately 40,000 square feet of light manufacturing and production, and approximately 24,000 square feet of distribution. The Project also includes approximately 50 parking spaces, 2 loading docks and approximately 4300 square feet of public open space. 4. Environmental Review: The Project as described is included within the scope of development analyzed in the FEIR. The FEIR analyzed two alternatives to the proposed

3 Page 3 Project: Alternative A, No Project, and Alternative B, Reduced Development. As described in Chapters IV and V of the FEIR, the proposed Project would not cause any significant environmental effects or make a significant contribution to cumulative impacts. 5. Compliance with Requirements of Section 309: Due to its location in a C-3-O (SD) District, the Project is subject to the requirements of Section 309 of the Planning Code, which requires determinations of compliance with and allows for exceptions to the Planning Code. The Commission determines that the Project meets all compliance requirements for approval under Section 309 of the Code. The Project is required by the Code to meet the following requirements: 1. Open Space (Section 138): Section 138 requires a project to provide open space in a specified amount and in accordance with specific standards. The Project will provide approximately 4280 square feet of publicly-accessible open space, or approximately 1000 square feet more than the required amount of approximately 3250 square feet. Approximately 2720 square feet will be provided as an Aurban garden@ located in an area set back from the main entrance and located on the corner of Second and Clementina Streets. This area faces south and west thereby maximizing the amount of direct sunlight that will fall on the open space. The Project will also provide approximately 1560 square feet as an Aindoor park@ located on the ground floor and visible through the glass wall that forms the main entrance. The indoor park will be an extension of the urban garden with the same type of paving continued throughout the exterior and interior spaces. These street-level locations are highly visible and easily accessible to the general public. Both spaces will be well-designed and landscaped. The corner of Second and Clementina Streets will be marked by a Afocal tree.@ Various types of seating will be available in both the outdoor and indoor spaces. A retail cafe will be located adjacent to the outdoor urban garden. The Commission hereby finds that the Project open space will be a desirable addition to the City=s open space. It will be accessible, well-designed and comfortable, providing a variety of experiences, meeting both the pedestriancomfort criterion and the seating-comfort criterion (wind speed standards) of Section 148, and fulfilling all requirements of the Downtown Plan and Planning Code Section Pedestrian Streetscape Improvements (Section 138.1): Section requires a project in a C-3 District to install street trees and sidewalk paving as set forth in

4 Page 4 the Downtown Streetscape Plan. The Project will comply by providing sidewalk paving, which will complement the paving of the open space, and landscaping the Urban Garden and Indoor Park which will be visible to pedestrians on Second and Clementina Streets. Street trees will be provided along Tehama, Clementina and Second Streets. The Conditions of Approval require that prior to issuance of the final addendum to the site permit, a final pedestrian streetscape improvement plan including landscaping and paving materials and patterns shall be submitted for review by, and shall be satisfactory to the Director of the Department, in consultation with the Director of the Department of Public Works. As so conditioned, the Commission finds the Project complies with the requirements of Section The Commission finds the Project does not require exceptions pursuant to Section 309(a) of the Planning Code. 7. Sunlight Access to Public Sidewalks in C-3 Districts (Section 146): Section 146(c) provides that new buildings and additions to existing buildings in C-3 Districts shall be shaped, if it can be done without creating an unattractive design and without unduly restricting the development potential of the site in question, so as to reduce substantial shadow impacts on public sidewalks. The Project will cast only minor new shadows on surrounding sidewalks on Tehama, Clementina, and Second Streets, and Oscar Alley in varying degrees and at various times of the day and year. To the extent these shadows might be considered substantial, they could be significantly reduced only by unduly restricting the development potential of the site zoned deliberately to accommodate this amount of office development at this location and also to promote the preservation objectives and policies of the Downtown Plan through the use of TDR. After considering the FEIR and other data and information before it, the Commission determines that the Project meets the standards set forth in Section 146(c). 8. Shadows on Certainly Public or Publicly Accessible Open Spaces in C-3 Districts (Section 147): Section 147 requires that new buildings or additions in the C-3 Districts be shaped, consistent with the dictates of good design and without unduly restricting the development potential of the site, to reduce substantial shadow impacts on public plazas and other publicly accessible space other than those protected under Section 295. A shadow analysis was completed for the addition and new construction as required pursuant to Section 295 of the Code. The results of the study indicate the Project will be fully consistent with the Proposition K requirements and will not cast any new shadow on public plazas or other publicly accessible spaces. After considering the FEIR and other

5 Page 5 data and information before it, the Commission finds the Project meets the standards set forth in Section Type and Location of Artwork (Section 149): Section 149 requires the Project to include works of art costing an amount equal to one percent of the construction cost of the building. The type and location of the artwork, but not the artistic merits of the specific artwork proposed, must be approved by the Commission in accordance with the provisions of Section 309. The project will locate a large scale sculpture at a place within the open space on the corner of Second and Clementina Streets that will make the artwork visually and physically accessible to the public. The artist, Stephen De Staebler, will be appropriately identified. The goal for the public art is to enhance the open space and invite interaction. The precise height, size, type and location of the sculpture will be determined by the Department, the artist and the Project Sponsor. The Conditions of Approval require the Project Sponsor to continue to consult with the Department on the type and location of the artwork. The Conditions of Approval also provide that the final art concept and location shall be submitted for review by, and shall be satisfactory to the Director of the Department in consultation with the Commission, and that the Project Sponsor and the Director shall report to the Commission on the progress of the development and design of the art concept no later than 6 months after the date of this approval. As so conditioned, the Commission approves the type and location of the artwork proposed to be included in the Project as described above. 10. Consistency with the General Plan The Project is, on balance, consistent with and will not adversely affect the General Plan. The Project will affirmatively promote numerous General Plan objectives and policies including, among others, the following: DOWNTOWN PLAN: The Downtown Area Plan of the General Plan contains the following relevant objectives and policies: URBAN FORM Objective 13: Create an urban form for downtown that enhances San Francisco=s stature as one of the world=s most visually attractive cities. Relate the height of buildings to important attributes of the city pattern and to the height and character of existing and proposed development.

6 Page 6 Policy 2: Foster sculpturing of building form to create less overpowering buildings and more interesting building tops, particularly the tops of towers. Objective 14: Create and maintain a comfortable pedestrian environment. Policy 2: Promote building forms that will maximize the sun access to open spaces and other public areas. Promote building forms that will minimize the creation of surface winds near the base of buildings. Objective 15: To create a building form that is visually interesting and harmonizes with surrounding buildings. Policy 2: Ensure that new facades relate harmoniously with nearby facade patterns. Assure that new buildings contribute to the visual unity of the city. Objective 16: Create and maintain attractive, interesting urban streetscapes. Policy 3: Policy 4: Policy 5: Conserve the traditional street to building relationship that characterizes downtown San Francisco. Maintain and enhance the traditional downtown street pattern of projecting cornices on smaller buildings and projecting belt courses on taller buildings. Use designs and materials and include activities at the ground floor to create pedestrian interest. Encourage the incorporation of publicly visible art works in new private development and in various public spaces downtown. The Project=s design relates to existing city pattern and character and maximizes the sun access to the open space area. The Project maintains the traditional downtown street pattern with the use of belt courses

7 Page 7 OPEN SPACE and cornices, uses materials and design to promote activity at the ground floor, and provides art that is visible to the public. Objective 9: Policy 2: Policy 4: Provide quality open space in sufficient quantity and variety to meet the needs of downtown workers, residents, and visitors. Require usable indoor and outdoor open space, accessible to the public, as part of new downtown development. Provide different kinds of open space downtown. Provide a variety of seating arrangements in open spaces throughout downtown. Objective 10: Assure that open spaces are accessible and usable. Develop an open space system that gives every person living and working downtown access to a sizable sunlit open space within convenient walking distance. Policy 3: Policy 4: Policy 5: Keep open space facilities available to the public. Provide open space that is clearly visible and easily reached from the street or pedestrian way. Address the need for human comfort in the design of open space by minimizing wind and maximizing sunshine. The Project provides open space in the form of a well-landscaped, sunlit urban garden and indoor park that will be easily accessible to the public, offer a variety of experiences and seating, and is protected from wind. PRESERVING THE PAST Objective 12: Conserve resources that provide continuity with San Francisco=s

8 Page 8 past. Policy 2: Policy 3: Use care in remodeling significant older buildings to enhance rather than weaken their original character. Design new buildings to respect the character of older developments nearby. The Project=s design enhances the industrial character of the site=s existing building and surrounding older structures. MOVING ABOUT Objective 19: Provide for safe and convenient bicycle use as a means of transportation. Include facilities for bicycle users in governmental, commercial, and residential developments. Objective 21: Improve facilities for freight deliveries and business services. Policy 2: Provide off-street facilities for freight loading and service vehicles on the site of new buildings sufficient to meet the demands generated by the intended uses. Seek opportunities to create new off-street loading for existing buildings. Discourage access to off-street freight loading and service vehicle facilities from transit preferential streets, or pedestrian-oriented streets and alleys. Objective 22: Improve the downtown pedestrian circulation system, especially within the core, to provide for efficient, comfortable, and safe movement. Policy 5: Provide sufficient pedestrian movement space. Improve the ambience of the pedestrian environment. The Project will provide one bicycle space for every 20 automobile spaces. The Project will meet anticipated demand for freight loading by providing 2 loading docks. The Project will create a new open space urban garden and indoor park. SEISMIC SAFETY

9 Page 9 Objective 23: Reduce hazards to life safety and minimize property damage and economic dislocation resulting from future earthquakes. Policy 2: Initiate orderly abatement of hazards from existing buildings and structures, while preserving the architectural and design character of important buildings. The Project will reduce hazards to life safety and minimize property damage and economic dislocation resulting from future earthquakes by constructing a new commercial building complying with all contemporary structural and seismic codes in replacement of existing non-seismically upgraded buildings. URBAN DESIGN ELEMENT The Urban Design Element of the General Plan contains the following relevant objectives and policies: City Pattern Objective 1: Policy 3: Emphasis of the characteristic pattern which gives to the city and its neighborhoods an image, a sense of purpose, and a means of orientation. Recognize that buildings, when seen together, produce a total effect that characterizes the city and its districts. The Project=s height, scale and visual characteristics harmonize with and emphasize and make prominent characteristic elements of the downtown core. The Project=s design, which complements the features and scale of the old and new buildings, forms relationships with the surrounding structures allowing the area to collectively contribute to the overall city pattern. Conservation Objective 2: Policy 5: Policy 6: Conservation of resources which provide a sense of nature, continuity with the past, and freedom from overcrowding. Use care in remodeling of older buildings, in order to enhance rather than weaken the original character of such buildings. Respect the character of older development nearby in the design of new buildings.

10 Page 10 By preserving the warehouse design of the four-story structure and utilizing brick material and oversized windows for the new construction, the Project sensitively incorporates and enhances the major design elements of the existing warehouse building. The Project=s 90 foot height and scale will help to transition the adjacent small sized office buildings with the new large scale developments surrounding the site. Major New Development: Objective 3: Policy 2: Policy 3: Policy 4: Policy 5: Moderation of major new development to complement the city pattern, the resources to be conserved, and the neighborhood environment. Promote harmony in visual relationships and transitions between new and older buildings. Avoid extreme contrasts in color, shape and other characteristics which will cause new buildings to stand out in excess of their public importance. :Promote efforts to achieve high quality of design for buildings to be constructed at prominent locations. Promote building forms that will respect and improve the integrity of open spaces and other public areas. Relate the height of buildings to important attributes of the city pattern and to the height and character of existing development. Policy 6: Relate the bulk of buildings to the prevailing scale of development to avoid an overwhelming or dominating appearance in new construction. The Project harmonizes with its surroundings and complements the existing city pattern with a design that preserves the industrial character of the past while providing modern elements that complement new developments as well as provides features that create interest and a pedestrian friendly streetscape. 11. Modification Required By the Commission: Section 309(b) of the Planning Code provides that the Commission may impose additional requirements and limitations in order to achieve the objectives and policies of the General Plan. The Commission does not impose any modifications on the project.

11 Page Each and every finding contained in Motion No. granting approvals for the Project under Section 322 of the Code is hereby incorporated by reference as though fully set forth herein. 13. The Commission finds that granting the Project Authorization in this case will particularly promote the public welfare, convenience and necessity for the reasons set forth above. DECISION Therefore, the Commission, after carefully balancing the competing public and private interests, and after considering the criteria of Planning Code Section 309, hereby grants Project Authorization for an office, light manufacturing and production, distribution, and parking development at, subject to the conditions attached hereto as Exhibit A and the Mitigation Monitoring and Reporting Program attached hereto as Exhibit C. I hereby certify that the foregoing Motion was ADOPTED by the Planning Commission at its regular meeting on March 2, Linda Avery Commission Secretary AYES: Theoharis, Mills, Antenore, Chinchilla, Joe, Richardson, Martin NOES: None ABSENT: None ADOPTED: March 2, 2000

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13 Page 13 EXHIBIT A CONDITIONS OF APPROVAL Wherever AProject Sponsor@ is used in the following conditions, the conditions shall also bind any successor to the Project or other persons having an interest in the Project or underlying property. This approval is for the demolition of 7 one and two-story buildings on several lots along Clementina Street, the adaptive reuse of 1 existing four-story building on a separate lot on Tehama Street, and the construction of a 7-story, approximately 90-foot high building containing up to 180,000 gsf of office space, approximately 40,000 gsf of light manufacturing and production space, 24,000 gsf of distribution space, 17,800 gsf for 50 parking spaces, 3300 gsf for 2 loading docks, 1000 gsf of retail cafe space and 4280 gsf of open space in the form of an urban garden and indoor park, with an FAR of approximately 6:1 in general conformance with the plans dated 2/18/00 and stamped Exhibit B. 1. COMPLIANCE WITH OTHER REQUIREMENTS This decision conveys no right to construct, or to receive or apply for a building permit. The Project Sponsor must obtain a project authorization under Section 322, and satisfy all the conditions thereof, including mitigation measures addressing environmental impacts. The conditions set forth below are additional conditions required in connection with the Project. If these conditions overlap with any other requirement imposed on the Project, the more restrictive or protective condition or requirement, as determined by the Zoning Administrator, shall apply. 2. CONDITIONS TO BE MET PRIOR TO THE ISSUANCE OF A BUILDING (OR SITE) PERMIT OR FINAL ADDENDUM TO A BUILDING (OR SITE) PERMIT. A. Design (1) Highly reflective spandral glass, mirror glass, or deeply tinted glass shall not be permitted. In no case shall visible daylight transmittance be less than 75 percent. Only clear glass shall be used at pedestrian levels. (2) The Project Sponsor and the Project architect shall continue to work on design development with the Department. Particular attention shall be paid to refinement of the lower streetwall on Second Street at the pedestrian level, the entry to the building from the outdoor open space, the possibility of operable windows or additional doors between the outdoor and indoor open spaces, cornices and belt courses and to the general development of the open space design and the art concept.

14 Page 14 (3) Space shall be included for antennae in the building's design to avoid unattractive appendages. (4) Final architectural and decorative detailing, materials, glazing, color and texture of exterior finishes shall be submitted for review by, and shall be satisfactory to the Director of the Department. The Project architect shall submit dimensional design drawings for building details with specifications and samples of materials to insure a high design quality is maintained. (5) Except as otherwise provided in this motion, the Project shall be completed in general accordance with the plans identified as Exhibit B and submitted to the Commission on March 2, B. Open Space (1) The Project shall include the on-site open space urban garden and indoor park described generally in this Motion. (2) The final open space design, including materials and their treatment, furniture, and planting plan including species shall be submitted for review by, and shall be satisfactory to the Director of the Department. The open space flooring shall be of a material which provides a non-slipping surface when wet. C. Pedestrian Streetscape Improvements D. Artwork (1) The Project shall include pedestrian streetscape improvements generally as described in this Motion and in conformance with Section (2) A final pedestrian streetscape improvement plan including landscaping and paving materials and patterns shall be submitted for review by, and shall be satisfactory to the Director of the Department, in consultation with the Director of the Department of Public Works. The Project Sponsor and the Project artist shall consult with the Department during design development regarding the height, size, type and location of the sculpture. The final art concept and location shall be submitted for review by, and shall be satisfactory to the Director of the Department in consultation with the Commission. The Project Sponsor and the Director shall report to the Commission on the progress of the development and design of the art concept no later than 6 months after the date of this approval. E. Transportation

15 Page 15 The Project Sponsor shall submit plans for off-street freight loading and parking for review and approval by the Department. The Project shall include 2 code-complying freight loading spaces at-grade in the loading dock off Clementina Street. There shall be no use of sub-sidewalk space for parking or freight loading. Loading areas shall have raised docks or dock levelers, and receiving areas of sufficient size for short-term storage of goods, and readily accessible freight elevator(s). Driveways shall be designed with curb cuts and a continuous sidewalk with no change in grade. There shall be no curb returns. Additional conditions of approval regarding transportation are contained in Exhibit A attached to Motion (for Case No B) F. Recordation Prior to the issuance of any building permit for the construction of the Project, the Zoning Administrator shall approve and order the recordation of a notice in the Official Records of the Recorder of the City and County of San Francisco, which notice shall state that construction of the Project has been authorized by and is subject to the conditions of this Motion. From time to time after the recordation of such notice, at the request of the Project Sponsor, the Zoning Administrator shall affirm in writing the extent to which the conditions of this Motion have been satisfied, and record said writing if requested. G. First Source Hiring Program The project is subject to the requirements of the First Source Hiring Program (Chapter 83 of the Administrative Code) and the Project Sponsor shall comply with the requirements of this Program. Prior to the issuance of any building permit to construct or a First Addendum to the Site Permit, the Project Sponsor shall have a First Source Hiring Construction Program approved by the First Source Hiring Administrator, and evidenced in writing. Prior to the issuance of the First Certificate of Occupancy, the Project Sponsor shall have a First Source Hiring Occupancy Program approved by the First Source Hiring Administrator, and evidenced in writing." 3. CONDITIONS TO BE MET PRIOR TO THE ISSUANCE OF TEMPORARY OR PERMANENT CERTIFICATION OF OCCUPANCY. A. Open Space

16 Page 16 (1) The Project Sponsor shall complete the required on-site open space urban garden and indoor park. (2) The Project Sponsor shall install in the Project open space and shall thereafter maintain a map or diagram which shows the connection between the space and the downtown pedestrian network in the general vicinity of the Project. The materials, content and location of the map or diagram shall be submitted to the Director for approval prior to installation. B. Pedestrian Streetscape Improvements The Project Sponsor shall complete the required pedestrian streetscape improvements. The Project Sponsor shall be responsible for the upkeep and maintenance of such improvements if they exceed City standards.