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(a) Purpose. New construction that increases the density of the South of Market neighborhood will require the City to invest in substantial new infrastructure and services. By increasing height limits, removing restrictive zoning, relieving density and floor area ratio limitations, and making other regulatory changes, the Central SoMa Plan substantially increases the development potential of properties in the area. This new development potential will create a significant demand for infrastructure, improvements, and services as described in the Central SoMa Implementation Program Document, including but not limited to transit investments, street and environmental improvements, and development and maintenance of parks and recreation centers. The Central SoMa Community Facilities District (“CFD” or “Special Tax District”) shall be a special tax district formed pursuant to Administrative Code Chapter 43, Article X to address these needs created by projects that choose to exceed the Prevailing Height and Density Limits.
(b) Applicability. This Section 434 shall apply to a development on any lot in the Central SoMa Special Use District where all of the following apply:
(1) The project includes new construction or the net addition of more than 25,000 gross square feet, as determined by the Planning Director or their designee pursuant to the Rate and Method of Apportionment for the Central SoMa Community Facilities District;
(2) The proposed project exceeds the applicable Prevailing Building Height and Density controls established in Section 249.78(d)(1)(B); and,
(3) The project includes
(A) new non-residential development on any lot that is either wholly or partially in Central SoMa Fee Tier B or C, as defined in Section 423.2; or
(B) new residential condominium development for which any units have been sold on any lot that is either wholly or partially in Central SoMa Fee Tier C, as defined in Section 423.2.
(c) Requirement. Except as specified herein, any applicable development project shall participate in the CFD to be established by the Board of Supervisors pursuant to Article X of Chapter 43 of the Administrative Code (the “Special Tax Financing Law”) and successfully annex the lot or lots of the subject development into the CFD prior to the issuance of the first Certificate of Occupancy for the development. Any project lot or lots that contain areas that fall under more than one Central SoMa Fee Tier shall be wholly annexed into the CFD at the level of the highest applicable Fee Tier. Any project lot or lots that receive a condominium map pursuant to the Subdivision Code shall wholly annex the lot or lots of the subject development into the CFD prior to the sale of the first condominium on the site. For any lot to which the requirements of this Section 434 apply, 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 for the subject property prior to the first Certificate of Occupancy for the development, except that for condominium projects, the Zoning Administrator shall approve and order the recordation of such Notice prior to the sale of the first condominium unit. This Notice shall state the requirements and provisions of subsections 434(b)-(c) above.
(d) Special Taxes. The Board of Supervisors will be authorized to levy a special tax on properties that annex into the Community Facilities District to finance facilities and services described in the proceedings for the Community Facilities District and the Central SoMa Implementation Program Document submitted by the Planning Department on November 5, 2018 in Board of Supervisors File No. 180184.
(e) Special tax revenues associated with the CFD should be expended as described in the Central SoMa Plan Implementation Program Document submitted by the Planning Department on November 5, 2018 in Board of Supervisors File No. 180184, except that: (1) $15 million should be allocated to restoration of the Old United States Mint, San Francisco Landmark No. 236, and $160 million should be allocated to regional transit capacity enhancement and expansion; and (2) if the Old United States Mint is developed with community-serving spaces that may be leased through a competitive process at below-market rates to organizations associated with Cultural Districts established under Chapter 107 of the Administrative Code, $20 million should be allocated to restoration of the Old United States Mint, and $155 million should be allocated to regional transit capacity enhancement and expansion.
(Added by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)