(a) In 1981, San Francisco ("the City") enacted Ordinance No. 224-81, imposing a Transit Impact Development Fee ("TIDF") on new office development in the downtown area. The TIDF was based on studies showing that the development of new office uses places a burden on the City's transit system, especially in the downtown area of San Francisco during commute hours, known as "peak periods."
(b) The City later amended the TIDF, and made it applicable to non-residential Development Projects citywide, recognizing that development has transportation impacts across the City's transportation network.
(c) Starting in 2009, the City and the San Francisco County Transportation Authority worked to develop the concept of a comprehensive citywide transportation fee and supporting nexus study (the "TSF Nexus Study"). The fee would offset impacts of Development Projects, both residential and non-residential, on the City's transportation network, including impacts on transportation infrastructure that support pedestrian and bicycle travel. The Nexus Study is on file with the Clerk of the Board of Supervisors in File No. 150790, and is incorporated herein by reference.
(d) The TSF Nexus Study concluded that all new land uses in San Francisco will generate an increased demand for transportation infrastructure and services, and recommended that the TSF apply to both residential and non-residential Development Projects in the City. While the Nexus Study found that all new land uses in San Francisco will generate this increased demand for transportation, the Board finds that it is in the public interest to exempt some uses from payment of the fee, in order to promote other important City policies and priorities, such as affordable housing, small businesses and charitable organizations. The Board finds that Hospital and Health Service projects, however, are generally of such scope and size that they create a substantial demand for transportation infrastructure and services, and therefore, they should contribute to the TSF to meet this demand.
(e) In accordance with the TSF Nexus Study, Section 411A imposes a citywide transportation fee, the TSF, which will allow the San Francisco Municipal Transportation Agency ("SFMTA") and other regional transportation agencies serving San Francisco to meet the demand generated by new development and thus maintain their existing level of service. Section 411A will require sponsors of Development Projects in the City to pay a fee that is reasonably related to the financial burden such projects impose on the City. This financial burden is measured by the cost that will be incurred by SFMTA and other transportation agencies serving San Francisco to meet the demand for transit capital maintenance, transit capital facilities and fleet, and pedestrian and bicycle infrastructure (also referred to as "complete streets" infrastructure) created by new development throughout the City.
(f) The TSF Nexus Study justifies charging fee rates higher than those Section 411A imposes. The rates imposed herein take into consideration the recommendations of a TSF Economic Feasibility Study that the City prepared in conjunction with TSF. The TSF Economic Feasibility Study took into account the impact of the TSF on the feasibility of development, throughout the City. The TSF Economic Feasibility Study is on file with the Clerk of the Board of Supervisors in File No. 150790,1
and is incorporated herein by reference.
(g) The fee rates charged herein are no higher than necessary to cover the reasonable costs of providing transportation infrastructure and service to the population associated with the new Development Projects, such as residents, visitors, employees and customers. The TSF will provide revenue that is significantly below the costs that SFMTA and other transit providers will incur to mitigate the transportation infrastructure and service needs resulting from the Development Projects.
(h) The TSF is an efficient and equitable method of providing funds to mitigate the transportation demands imposed on the City by new Development Projects.
(i) More recently, the City adopted the San Francisco Citywide Nexus Analysis (“Nexus Analysis”) and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764. The Nexus Analysis evaluated the TSF, in addition to other transportation impact fees. In Section 401A, the Board adopted the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
AMENDMENT HISTORY
Former divisions (i)-(i)(5) deleted; new division (i) added; Ord. 193-23, Eff. 10/16/2023.
CODIFICATION NOTE