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Supervisors approve downtown revitalization district on first reading after amendment to require district to reimburse city departments
Summary
Supervisors approved a resolution of intention and an amended ordinance to create a Downtown Revitalization and Economic Recovery Financing District, adding language that costs borne by city departments for district support must be paid by the district.
The San Francisco Board of Supervisors on June 3 voted to advance the establishment of a Downtown Revitalization and Economic Recovery Financing District, approving a resolution of intention and an amended ordinance on first reading.
Supervisor Shamann Dorsey spoke in favor of the district and moved a floor amendment to the ordinance that Supervisor Dorsey—s office characterized as non-substantive but clarifying. The amendment, which was seconded by Supervisor Chan and accepted by the board, adds language to the ordinance specifying that, as permitted by the downtown revitalization law, "all costs incurred by any other city department in connection with the creation, management, or other administrative support for the downtown revitalization district shall be paid by the downtown revitalization district." The amended ordinance passed on first reading.
Why it matters The district is intended to provide an additional tool to incentivize adaptive reuse and commercial-to-residential conversions downtown, with the stated goals of boosting housing production and activating underused parts of the downtown area. State law enabling such districts (cited on the record as AB 2488) governs the financing structure and the permissible uses of property-tax increment revenue.
Key details from the meeting - Items 22 (resolution of intention) and 23 (ordinance establishing board membership and duties) advanced together. - Supervisor Dorsey described the district as a mechanism to facilitate adaptive reuse and said the state law requires departments be reimbursed for costs; he moved to insert similar clarifying language directly into the local ordinance. - The amendment was seconded by Supervisor Chan and accepted; the clerk announced the amended ordinance passed on first reading with no recorded objections.
Next steps The ordinance will return for further readings and any required public hearings as specified by local and state law. The resolution of intention sets boundaries and requires findings and a public hearing on the district plan. The Planning Department and Controller will be responsible for the technical steps to finalize boundaries, the financing plan and a public notice schedule.
