SEC. 423.3. APPLICATION OF EASTERN NEIGHBORHOODS INFRASTRUCTURE IMPACT FEE.

   (a)   Application. Section 423.1et seq. shall apply to any development project located in the Eastern Neighborhoods Program Area.

   (b)   Projects subject to the Eastern Neighborhoods Infrastructure Impact Fee. The Eastern Neighborhoods Infrastructure Impact Fee is applicable to any development project in the Eastern Neighborhoods Program Area which results in:

      (1)   At least one net new residential unit,

      (2)   Additional space in an existing residential unit of more than 800 gross square feet,

      (3)   At least one net new group housing facility or residential care facility,

      (4)   Additional space in an existing group housing or residential care facility of more than 800 gross square feet,

      (5)   New construction of a non-residential use, or

      (6)   Additional non-residential space in excess of 800 gross square feet in an existing structure.

   (c)   Fee Calculation for the Eastern Neighborhoods Infrastructure Impact Fee. For development projects for which the Eastern Neighborhoods Infrastructure Impact Fee is applicable:

      (1)   Any net addition of gross square feet shall pay per the Fee Schedule in Table 423.3A, and

      (2)   Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 423.3B.

 

TABLE 423.3A FEE SCHEDULE FOR NET ADDITIONS OF GROSS SQUARE FEET IN THE EASTERN NEIGHBORHOODS PROGRAM PLAN AREAS
Tier (per Sec. 423.2(a))	Residential	Non-residential	Net TIDF
1	$8/gsf	$6/gsf	$10/gsf
2	$12/gsf	$10/gsf	$10/gsf
3	$16/gsf	$14/gsf	$10/gsf

 

 

TABLE 423.3B FEE SCHEDULE FOR REPLACEMENT OF USE OR CHANGE OF USE IN THE EASTERN NEIGHBORHOODS PROGRAM AREA
Tier (per Sec. 423.3(a))	Residential to Residential or Non-residential; or Non-residential to Non-residential	Non-Residential to Residential	PDR to Residential	PDR to Non-residential
1	$0	$2/gsf	$5/gsf	$3/gsf
2	$0	$2/gsf	$9/gsf	$7/gsf
3	$0	$2/gsf	$13/gsf	$11/gsf

 

   (d)   Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Eastern Neighborhoods Infrastructure Impact Fee from the Planning Commission, subject to the following rules and requirements:

      (1)   Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Eastern Neighborhoods Community Improvements Program and where they substitute for improvements that could be provided by the Eastern Neighborhoods Community Improvements Fund (as described in Section 423.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Eastern Neighborhoods Area Plans (Central Waterfront, East SoMa, Western SoMa, Mission, and Showplace Square/Potrero Hill), by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), the Eastern Neighborhoods Citizens Advisory Committee, or other prioritization processes related to Eastern Neighborhoods Citizens community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.

      (2)   Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.

      (3)   Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:

         (A)   A description of the type and timeline of the proposed in-kind improvements.

         (B)   The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.

         (C)   The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.

      (4)   Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Eastern Neighborhoods Infrastructure Impact Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed the required Eastern Neighborhoods Infrastructure Impact Fee.

      (5)   Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.

   (e)   Timing of Fee Payments. The Eastern Neighborhoods Infrastructure Impact Fee is due and payable to the Development Fee Collection Unit at DBI at the time of and in no event later than issuance of the first construction document, with an option for the project sponsor to defer payment to prior to issuance of the first certificate of occupancy upon agreeing to pay a deferral surcharge that would be paid into the appropriate fund in accordance with Section 107A.13.3 of the San Francisco Building Code.

   (f)   Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406 of this Article. Additionally, office projects under 50,000 square feet, other non-residential projects, and residential projects in the Central SoMa Special Use District may reduce their required contribution to the Eastern Neighborhoods Community Improvements Fund as follows: for every gross square foot of PDR space required by Planning Code Section 202.8, the project may waive payment for four gross square feet of the Eastern Neighborhoods Infrastructure Impact Fee.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 42-13 , File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 56-13 , File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)

AMENDMENT HISTORY

Division (d)(1) amended; Ord. 42-13 , Eff. 4/27/2013. Tables 423.3A and 423.3B and division (d)(1) amended; former divisions (d)(3)(i) through (iii) redesignated as (d)(3)(A) through (C); Ord. 56-13 , Eff. 4/27/2013. Division (e) amended; Ord. 50-15 , Eff. 5/24/2015. Divisions (d)(1) and (f) amended; divisions (f)(1) and (f)(2) deleted; Ord. 296-18, Eff. 1/12/2019.