Determination. Reception: Andrew Junius. information: Site Address:

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1 SAN FRANCISCO PLANNING i ; I I i I 1 I I Letter of Determination 1650 Mission St. Suite 400 San Francisco, CA March 26, 2012 Reception: Andrew Junius Fax: Reuben & Junius LLP One Bush Street Suite 600 Planning San Francisco CA information: Site Address: 973 Market Street Assessor s Block/Lot: 3704/069 Zoning District: C-3-G (Downtown General Commercial) District Staff Contact: Rick Crawford, (415) or rick.crawford@sfgov.org Dear Mr. Junius: This letter is in response to your request for a Letter of Determination regarding the property at 973 Market Street. This parcel is located in the C-3-G, (Downtown General Commercial) Zoning District and 120-X Height and Bulk District. The request relates to proposed modifications to the plans for the building (as approved by the Planning Commission on September 15, 2005 under Case No EXV and Motion No ), which is currently undergoing renovation. The proposed modifications would reduce and reconfigure the commercial space in the building, change the size, location, and number of bedrooms in several of the dwelling units, and extend a light well to the ground floor. The request is whether the modifications are consistent with the project entitlements and can be approved administratively or if they require approval by the Planning Commission. In particular, the letter requests whether: 1. The dwelling unit mix in the building may be modified to provide more one and two-bedroom units; 2. The change in dwelling unit size and location requires the project to comply with current requirements of Planning Code Section 415 as it pertains to the number of on-site and off-site affordable dwelling units (BMR); 3. The commercial floor area in the project can be reduced from 4,780 square feet to 1,800 square feet; and, 4. The new light well proposed for the second through eighth floors can be extended to the first floor. Dwelling Unit Mix The project was approved with 55 studio units and 12 one-bedroom units. The Project Sponsor proposes to modify the dwelling unit mix by reconfiguring units and developing dwelling units on the first floor and mezzanine in areas previously proposed for commercial use. The proposed modifications would not change the bulk, height, dimensions, or design of the building exterior. The modifications would change

2 Andrew Junius March 26, 2012 Reuben & Junius LLP Letter of Determination 973 Market Street San Francisco CA the unit mix in the building to 40 studio units, 25 one-bedroom units and 2 two-bedroom units. Onebedroom units comprised 18% of the units in the original project. With the modification, the one and two bedroom units would comprise 40% of the total dwelling units. The modifications would increase the average size of a BMR unit by 58 square feet. In the original project six of the BMR units were studio units and one was one-bedroom. With the modification five BMR would be studio units and two would be one-bedroom. The modification would provide more housing units suitable for family occupancy. The proposed arrangement of dwelling units complies with a related variance granted by the Zoning Administrator on December 16, 2005 (Case No V) in that the number of dwelling units requiring an exposure variance would not change. Since the granting of the variance, the Planning Code has been amended to remove the parking requirement; therefore, the project is now in compliance with the off-street parking requirement. BMR Requirement The application for environmental review of the original project to renovate the subject building was filed on September 14, In December 2005, the building permit for the project was approved by the Department and was subject to the BMR requirement in effect at that time, which required BMR units equal to 10% of the total dwelling units if located on-site or 15% of the total dwelling units if located offsite. On July 22, 2008, the building permit for the project was issued and construction commenced and has continued since that date. Major structural reconfiguration has been completed and a seven-story lightwell has been cut into the building. Section of the Planning Code provides that projects that submitted a first application on or after July 18, 2006 must comply with the current BMR requirements of providing either, on-site BMR units equal to 15% of the units in the project, off-site units equal to 20% of the units in the project or pay an in lieu fee equal to 20% of the units in the project. The first application for the subject project was September 14, 2004; therefore, the project need not provide for additional BMR units beyond that approved by the Planning Commission in Motion Reduction of Commercial Space The project was approved with 5,350 square feet of floor area on the ground floor and mezzanine committed to retail uses and the proposal would reduce the retail floor area to 1,800 square feet. Sections and 212(c) of the Planning Code require active uses such as retail, or residential dwellings on the ground floor and within the street-front portion of the building. The proposed modifications to the subject building replace areas proposed for retail use with residential dwelling units and building services. The building frontage would continue to contain retail uses. Extension of Central Lightwell The proposed extension of the central lightwell would provide light and air to proposed new dwelling units. The expansion would not be visible from any public street or right of way. The subject building is a historic resource. The proposed modifications to the project would not alter any portion of the exterior visible to the public, or add useable floor area to the building. The modifications would provide a mix of dwelling unit types SAN FRANCISCO PLANNING DEPARTMENT

3 Andrew Junius March 26, 2012 Reuben & Junius LLP Letter of Determination 973 Market Street San Francisco CA that would offer housing units more suitable for families and would comply with the requirements of Section 415 of the Planning Code. Finally, the proposed modifications do not require a new variance for dwelling unit exposure or parking. The proposed modifications to reduce and reconfigure the commercial space in the building, change the size, location and number of bedrooms in a number of dwelling units, and extend a light well to the ground floor are consistent with the original project entitlements, can be approved administratively and do not require approval by the Planning Commission. APPEAL: If you believe this determination represents an error in interpretation of the Planning Code or abuse in discretion by the Zoning Administrator, an appeal may be filed with the Board of Appeals within 15 days of the date of this letter. For information regarding the appeals process, please contact the Board of Appeals located at 1650 Mission Street, Room 304, San Francisco, or call (415) Sincerely, Scott F. Sanchez Zoning Administrator cc: Rick Crawford, Planner Property Owner Performing Arts LLC 160 S. Linden Avenue Suite #100 South San Francisco, CA SAN FRANCISCO PLANNING DEPARTMENT

4 REUBEN &JUNIUSLLP February 14, 2012 Mr. Scott Sanchez, Zoning Administrator :) - San Francisco Planning Department 1650 Mission Street, Suite 400 San Francisco, CA Re: Request for Written Determination 973 Market Street, Block 3704/Lot 069 Case No X Our File No.: Dear Mr. Sanchez: 5 CLIV & COUNTY OF S.F. PLANNING DEPARTMENT This office represents the owner of 973 Market Street (the "Property"). Please accept this letter as a request for written determination pursuant to Planning Code Section 307(a) with respect to the Property and approved development project described below. Background A Section 309 permit review approval was granted by the San Francisco Planning Commission on September 15, 2005 pursuant to Motion 17100, permitting the conversion of the existing seven-story commercial building at the Property to residential use with up to 67 dwelling units and 5,350 square feet of commercial space on the ground floor (the "Project"). The Project also proposed the construction of a central lightwell on floors 2 through 8 and the roof. The Planning Commission granted an exception to the rear yard requirement of the Planning Code and the Zoning Administrator approved several variances for the Project for the dwelling unit exposure and off-street parking requirements pursuant to a variance granted on December 16, 2005 (together, "Original Approvals"). The approved dwelling unit mix consisted of: 55 Studio Units 12 One-Bedroom Units The Section 309 approval requires the Project to comply with the Residential Inclusionary Affordable Housing Program through one of three options: providing 10% (7 units) San Francisco, CA James A, Reuben I Andrew J. Junius I Kevin H. Rose I Tuija I. Catalano I David Silverman I Sheryl Reuben I Jay F. Drake tel DanielA, Frattin I Stephen R. Miller I Lindsay M. Petrone I John Kvlin I Alison L. Krumbein I John McInerney 1112 fax Abc admitted in New York 2. Of Counsel

5 Mr. Scott Sanchez San Francisco Planning Department February 14, 2012 Page 2 of on-site units at below market rate ("BMR"); providing 15% (10 units) of the total units off-site at BMR; or paying an affordable housing fee based on 15% of the units. On December 7, 2006, the then-owner of the Property was issued a site permit for the Project (Building Permit Application # ). On July 22, 2008, the then-owner of the Property was issued a full building permit approving modifications to the original Project (BPA # ). These modifications included (1) the addition of an additional story, for a total of eight, within the existing building envelope and (2) the reduction of ground floor commercial space from 5,350 square feet to 4,780 square feet to allow for mechanical ducting, a fire control room, a trash room, a loading bay, additional circulation and structural improvements. Due to the difficulties that have arisen during the construction of the Project, the current owner of the Property is now seeking to reposition the Project in order to make it financially feasible, thereby allowing for construction to be completed. The Project s lateral resistance scheme requires reevaluation and the unit layouts will be regularized from story to story to simplify the construction and allow for this change to the structural system. As a result, the owner proposes the following modifications to the Project: Alter the dwelling unit mix to increase the number of one-bedroom and twobedroom units; Reduce the ground floor commercial space from 4,780 square feet to 1,800 square feet; Extension of the lightwell through to the ground floor. By this letter, we are requesting that you make a determination that the Project modifications are in substantial conformity with the Original Approvals, and need no further approval. In particular, we request you make a determination on the following: Request for Determination - Unit Mix The owner proposes to reconfigure the Project s unit mix by reducing the number of studio units and increasing the number of one- and two-bedroom units. The Project Sponsor is requesting that a determination be made that the proposed reconfiguration of units is in substantial conformance with the Original Approvals. The proposed reconfiguration would modify the unit-mix as follows: San Francisco, CA LTR-Scott Sanchez re LOD Request tel: fax: REUBEN&JUNIUS I

6 Mr. Scott Sanchez San Francisco Planning Department February 14, 2012 Page 3 Unit Type Original Unit Mix Revised Unit BMR Units Mix (included in the 67) Studio One-Bedroom/Loft Studios Two-Bedroom TOTAL (10% of total) Included as Exhibit A with this letter are drawings showing the revised floor plans for the 67 units. A determination of substantial conformity is supported by the following: 1. Modifying the unit mix as proposed does not increase the bulk, height, dimensions or design of the building exterior and is consistent with the findings of the Original Approvals. 2. The proposed modifications would increase the number of one-bedroom units by 13 and the number of two-bedroom units by 2. The recently-adopted Housing Element of the General Plan encourages the development of "family-sized" units. 3. The reconfiguration of dwelling units will increase the average size of the on-site BMR units by 58 square feet, providing more exceptional affordable housing at the Property. 4. The final plans for the Project need only be in general conformity with the plans approved by the Commission, and ultimately will be subject to the Planning Department s final approval. Please confirm that the proposed unit mix referenced above and in the enclosed plans remains in conformance with the Original Approvals. San Francisco, CA LTR-Scott Sanchez re LOD Request tel; f REUBENJUNIUS., I wwwreuben1awcom

7 Mr. Scott Sanchez San Francisco Planning Department February 14, 2012 Page 4 Request for Determination - BMR Requirement The Original Approvals subjected the Project to a 10% on-site, 15% off-site BMR requirement. A valid building permit has subsequently been issued for the Project and substantial work has been performed and substantial liabilities have been incurred in good faith reliance on that permit. Major structural reconfiguration has been completed on site including the cutting into the building for the seven story lightwell, completion of the new eighth floor and roof deck, and the erection of structural shear walls, grade beams and elevator shafts. In addition to this, exterior building improvements (window replacement, painting and selected soft framing) have been partially completed prior to the market downturn and project delay. The Project is approved and has a vested right in the existing building permits and is not subject to current BMR requirements. Further, the purpose of the proposed modifications is to make the Project financially feasible and obtain financing to complete the Project. Applying heightened BMR rates to the Project would work against that goal, and make it less likely the Project will be completed. Please confirm that the proposed modifications will not subject the Project to current BMR requirements. Request for Determination - Reduced Commercial Space The Original Approvals included the provision of 5,350 square feet of ground floor commercial space as part of the Project (which was subsequently reduced to 4,780 square feet pursuant to BPA # ). The proposed modifications would reduce the commercial space to 1,800 square feet. As noted in the previously-approved variance for the Project, the building has outlived its commercial usefulness as evidenced by its long period of vacancy. The owner seeks the proposed reduction in ground floor commercial space as it makes the Project much more financially feasible to put the space to residential rather than commercial use. There are numerous retail vacancies along this block of Market Street. The reduced commercial space will still maintain a ground floor retail street frontage, consistent with the surrounding properties and the ground floor retail nature of Market Street, but reduces the size of the commercial unit, making it more practical and affordable to smaller businesses that are more likely to occupy a space on this block than large retailers. Please confirm for us that the proposed commercial design is in conformance with the Original Approvals. Request for Determination - Extension of Central Li2htwell As part of the Original Approvals, the Project was to construct a new lightwell, extending from the second floor to the sky. The lighwell s dimensions are 30 feet by 30.5 feet. As San Francisco, CA LTR-Scott Sanchez re LOD Request tel: fax: REUBEN &JUNIUS I vw.reubenlawcom

8 Mr. Scott Sanchez San Francisco Planning Department February 14, 2012 Page 5 discussed above and shown in the attached plans, the proposed modifications would extend the lightwell all the way to the ground floor. This lightwell extension complies with the Planning Code and should not be considered a "substantial alteration," subject to Planning Commission approval. The lightwell extension also should not be required to obtain a new variance approval since it is reducing the Project s discrepancy with the Planning Code. The Planning Department has determined that the following categories of projects located in the C-3 districts are subject to Section 309 approval: Any project that will result in a net addition of more than 50,000 gross square feet. Any project that will result in a building greater than 75 feet in height. Any project that requests exceptions to specified provisions of the Planning Code. Projects that were administratively approved by Planning Department staff through a site or building permit, but were modified by the imposition of conditions. In such circumstances, an applicant may agree to the modifications and waive the right to a hearing. Projects that were administratively approved by Planning Department staff through a site or building permit, however, a member of the public has requested within 10 days of the "Notice of Proposed Approval" that the Planning Commission review the project. In such circumstances, the Commission may deem that there are no reasonable grounds to conduct a hearing. The proposed modifications to the Project will not increase its floor area or height. The proposed modifications do not require additional exceptions from the Planning Code beyond what was granted in the Original Approvals. The proposed modifications do not consist of a new project; rather, they are minor modifications to a previously-approved project. The Planning Department has also determined which categories of projects located in the C-3 districts are not subject to Section 309 approval: Projects that do not exceed the thresholds for square footage and height described above. Projects that comply with the requirements of the Planning Code. San Francisco, CA LTR-Scott Sanchez re LOD Request REUBEN&JUNIUS tel fax: vwwreubenlawcom

9 Mr. Scott Sanchez San Francisco Planning Department February 14, 2012 Page 6 The proposed modifications do not exceed the square footage and height thresholds described above, and are in full compliance with the Planning Code. As such, the proposed modifications do not require additional Section 309 approval beyond the Original Approvals. The proposed modifications to the Project also do not require a new variance for the dwelling unit exposure and off-street parking requirements of the Planning Code. The variance from the dwelling unit exposure requirement was previously granted for the Project for 36 dwelling units that were facing in on the central lightwell. With the proposed modifications, there will continue to be 36 dwelling units that do not meet the dwelling unit exposure requirement. Because the proposed modifications are not increasing the Project s discrepancy with the dwelling unit exposure requirement of the Planning Code, no new variance is required. Since the previous variance from the off-street parking requirements of the Planning Code was granted, the parking requirement has been removed from the C-3 districts and therefore the Project is now in conformance with the current off-street parking requirement. Please confirm that the proposed modifications to the Project are in substantial conformance with the Original Approvals, including the variance for dwelling unit exposure. Conclusion Thank you for your consideration. Please let us know if you need any additional information or documentation to complete this request. We have enclosed the required fee in the amount of $588. Very truly yours, Enclosures cc: Jason Check, Raintree Partners San Francisco, CA LTR-Scott Sanchez re LOD Request tel: fax:

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Letter of Determination

SAN FRANCISCO PLANNING DEPARTMENT July 29, 2011 Andrew Junius Reuben & Junius, LLP One Bush Street, Suite 600 San Francisco CA 94104 Letter of Determination Site Address: 260 5 11, Street Assessor s Block/Lot: