Committee forwards planning-code amendment tied to Hotel de Arts settlement

The Land Use and Transportation Committee on March 17, 2025, voted 3-0 to forward a planning-code amendment to the full Board of Supervisors that would permit up to 51 tourist hotel rooms at 447 Bush Street, exempt certain conversions from conditional-use requirements and waive some fees — actions the deputy city attorney said are required to effectuate a settlement of litigation brought by Hotel de Arts.

Deputy City Attorney Brad Rossy (transcript: “Brad Rusty”) told the committee the planning-code amendment is necessary so the settlement approved by the Government Audit and Oversight Committee last week can be implemented. Rossy described litigation by Hotel de Arts challenging provisions of the hotel conversion ordinance and said the settlement removes the hotel conversion ordinance’s application to the Bush Street property while subjecting other properties owned by the same owners to the hotel conversion ordinance’s requirements as part of the settlement. Planning Department staff member Aaron Starr said the Planning Commission held a closed session and public hearing on March 6 and voted unanimously to recommend approval.

Member Mahmood moved the item as a committee report to the board; the motion passed with three ayes (Vice Chair Chen — I; Member Mokhmood — I; Chair Melgar — I). Committee documents indicate the ordinance is conditioned on enactment of the companion settlement ordinance and that both ordinances should be before the board at the same time to effectuate the settlement.

Public comment on the item was brief and did not raise substantive objections. The ordinance will go to the full Board of Supervisors for consideration.