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(a) Purpose. The purpose of this provision is to support the increase in the overall stock of PDR space in the City. Despite consistent and growing demand for PDR space in San Francisco, the economics of building new PDR space are very challenging, even in PDR zoning districts where these uses do not compete for land with other more economically-attractive uses. One way to make such development economically viable is to utilize the value of other non-residential space, such as office and institutional uses, to subsidize the construction of PDR space on properties that are largely vacant or substantially underutilized and that do not contain significant PDR space that would be demolished.
(b) Geography. This provision applies to parcels that meet all of the following criteria:
(1) Are located in either the PDR-1-D or PDR-1-G Districts;
(2) Are located north of 20th Street;
(3) Contain a floor area ratio of 0.3 gross floor area or less as of January 1, 2014; and
(4) Are 20,000 square feet or larger.
(c)1 Controls. The Planning Commission may permit, per the procedures described below in subsection (d), non-PDR uses on the subject lot pursuant to the following provisions:
(1) At least one-third of the total Gross Floor Area developed on the parcel shall contain PDR Uses.
(2) For purposes of this subsection (c), every square foot of Small Enterprise Workspace shall count as 0.5 square feet of PDR space and 0.5 square feet of non-PDR space as specified in subsection (c)(3) below.
(3) The non-PDR space may contain one or a combination of the following uses:
(A) Office Uses;
(B) Institutional Uses, except for Hospitals; and/or
(C) Gym use, as defined in Section 102; and/or
(D) Any use otherwise Principally Permitted in the underlying PDR district.
(4) Uses other than those listed in subsections (c)(2) and (c)(3) above, such as Retail, are subject to the controls of the underlying district.
(5) No Residential Uses are permitted, even as part of an Institutional Use, except as allowed as Accessory Uses pursuant to Section 204.4.
(6) The PDR space in any building must be served by:
(A) Sufficient off-street loading, and
(B) One or more freight elevators, in accordance with Planning Code Section 155(j).
(7) The project shall meet the Transpor- tation Management Program requirements of Section 163(c) of the Planning Code.
(8) Accessory parking for Uses listed in subsection (c)(2) above may be permitted up to one space per each 1,500 square feet of Occupied Floor Area, and all such parking shall be subject to the pricing requirements of Section 155(g) of the Planning Code.
(9) The project sponsor must develop a "PDR Business Plan." The purpose of this PDR Business Plan is to maximize the potential for the project to produce new PDR space that is viable and affordable. The features of the PDR Business Plan should include, but are not limited to:
(A) Overall strategy to incorporate PDR businesses, including specifying which kinds of PDR businesses are the target for the development;
(B) A description of the kinds of non-PDR businesses intended for the site and a plan for how they will co-exist with the PDR businesses and any strategies required to achieve this balance;
(C) A description of how the site's marketing and outreach plan will effectively target these same PDR businesses;
(D) A description of how the development's design is suited to PDR businesses;
(E) A description of the rent/purchase price proposed by the developer for the PDR spaces and the approach to keep these rents affordable to PDR tenants over time;
(F) A detailed overview of the workforce and hiring strategy for the PDR businesses on the site, as well as for the non-PDR businesses, including how the project sponsor will abide by City programs such as the First Source Hiring Program; how the project sponsor might utilize other local, State, and federal subsidized hiring programs such as work opportunity tax credits, Jobs Now!, Hire SF, and the California employment tax credit set forth in Chapter 93 of the California 2013-2014 legislative session; and how the project sponsor will inform its tenants about other relevant public programs; and,
(G) A detailed community outreach plan, including a plan for engaging any specific community partners in the development, tenanting of the project, and ongoing management of the PDR portions of the property.
(10) The first Certificate of Occupancy for the PDR portion of the development must be issued by the Department of Building Inspection before or concurrently with the first Certificate of Occupancy for the non-PDR portion of the development unless the PDR and non-PDR portions are part of a single site or building permit.
(d) Referral to OEWD. Upon receiving an application for a project under this Section 210.3C, the Planning Department shall inform the Director of the Office of Economic and Workforce Development (OEWD) or successor agency, so that OEWD may inform the project sponsor of existing programs and requirements relevant to PDR businesses, including any existing economic incentive and hiring programs.
(A) The likely viability of the new PDR space created by the development, as influenced by such factors as the content of the project sponsor's PDR Business Plan, and whether the project sponsor has the commitments of established PDR tenants and/or a demonstrated relationship with organizations established in the PDR community.
(B) Whether the project is an appropriate location and intensity for the proposed non-PDR use, including but not limited to whether the location of non-PDR uses would be compatible with or disruptive to PDR uses on the site and in the vicinity, recognizing that PDR uses may generate noise, vibrations, odors, trucking activity, or other PDR-related operational characteristics.
(2) A Notice of Special Restriction (“NSR”) shall be recorded on the title of any property receiving approval under this Section 210.3C. Such NSR shall:
(A) Designate the PDR portion of parcel, building, and/or development;
(B) State that the proportion of Gross Floor Area on the site dedicated to PDR uses shall never be less than one-third of the total Gross Floor Area on the parcel, including any future building or use alterations or expansions;
(C) Require the property owner to submit an annual report to the Planning Department and OEWD, on or before January 31 of each year, starting in the year after the Department of Building Inspection issues the first Certificate of Occupancy that applies to the PDR portion of the development, describing the status of the implementation of its PDR Business Plan, identifying PDR tenants on the property during the prior year, describing the rents for the PDR portions of the property and any lease terms, and providing information on their respective square footages, number of employees, contact information for each tenant, a description of the business or industry characteristics of each business, and the PDR space vacancy on the parcel as of the date of each report;
(D) Provide the Planning Department with the ability to enforce the provisions of this Section; and,
(E) Restrict the ability of the non-PDR portion of the development from limiting the PDR portion from undertaking activities necessary to maintain PDR business operations in such matters as trucking and noise generation.
(f) Uses Established Under This Section. Notwithstanding any contrary provision of this Code, Office Uses established pursuant to this Section 210.3C shall be deemed Code-conforming uses after the expiration of this Section and such uses shall not constitute nonconforming uses under the provisions of Article 1.7.
(Added as Sec. 219.1 by Ord. 71-14 , File No. 131205, App. 5/23/2014, Eff. 6/22/2014; amended by Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; redesignated and amended by Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015; amended by Ord. 105-17, File No. 170156, App. 5/26/2017, Eff. 6/25/2017; Ord. 145-18, File No. 180187, App. 6/27/2018, Eff. 7/28/2018; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 111-21, File No. 210285, App. 8/4/2021, Eff. 9/4/2021)
Division (c)(2) amended; Ord. 22-15, Eff. 3/22/2015. Section redesignated; divisions (c)(1), (c)(3)(A), (c)(3)(B), (e), and (g) amended; Ord. 188-15 , Eff. 12/4/2015. Divisions (c)(3)–(c)(3)(B) and (c)(5) amended; division (c)(3)(C) added; Ord. 105-17, Eff. 6/25/2017. Divisions (c), (c)(2), (c)(4), (c)(6)(B), (c)(8), (c)(9)(E)-(F), (e)(2), (e)(2)(C), and (e)(2)(D) amended; former division (f) deleted; former division (g) redesignated as division (f); Ord. 145-18, Eff. 7/28/2018. Divisions (c)-(c)(2), (c)(3)(A)-(c)(5), (c)(8), (d), (e)(2), and (e)(2)(B) amended; Ord. 202-18, Eff. 9/10/2018. Division (c)(3)(C) amended; division (c)(3)(D) added; Ord. 111-21, Eff. 9/4/2021.