Commission continues contentious Mission Street development, asks city and owner to explore 100% affordable housing

The San Francisco Planning Commission on Feb. 6 continued consideration of a proposed 10-story mixed-use project at 2588 Mission Street after hours of public testimony from former tenants, neighborhood groups and community organizations demanding a 100% affordable development and a right-to-return program for residents displaced by a 2015 fire.

Staff described the project as a state-density-bonus proposal to build a 10-story over-basement building with 181 dwelling units, about 3,838 square feet of ground-floor retail and roughly 1,476 square feet of community facility. The proposal would rely on the state density bonus for a 50% increase in units and requests waivers from several planning-code development standards (including rear yard, dwelling unit exposure, off-street loading and height/bulk) as well as incentives for ground-floor height, open space and affordability-tier requirements.

The project site sits on a corner lot where a 1907-era three-story building was destroyed by a major fire in January 2015. Many public speakers said the owner, they alleged, had previously neglected repairs and that the fire and subsequent demolition caused the displacement of low-income residents and 26 small businesses. Speakers urged the commission to halt the market-rate project and pursue a 100% deeply affordable replacement with a right-to-return for prior residents. Speakers included tenants who said they had not been properly notified of legal rights or offered a path back.

Planning staff said the department shared concerns about displacement but that it lacked legal authority to require a developer to convert a project to 100% affordable housing; staff also noted that the site conforms to state density bonuses and cited the department's urban design analysis and proposed mitigation. Staff corrected an earlier error in the report and said the pre-fire building contained 17 dwelling units (not 47) and said the project included a mid-block recessed forecourt to preserve visibility of an existing mural on an adjacent building.

After nearly eight hours of testimony, commissioners discussed whether there were extraordinary circumstances that would allow denial under state law. Rather than make a final permit decision, the commission voted 5-2 to continue the item to the commission's April 10 hearing and directed staff and the project sponsor to pursue discussions with the mayor's housing office and community groups to explore the feasibility of a 100% affordable alternative and to return with additional information from the Department of Building Inspection about the post-fire demolition history and associated permits.

The continuance motion was made by Commissioner Imperial and seconded by Commissioner Moore. Commissioners Campbell and McGarry voted no; Commissioners Williams, Braun, Imperial, Moore and Sowell voted to continue. The motion passed 5-2.

Advocates who testified at the hearing included United to Save the Mission, Community groups such as Poder and Calle 24, and many displaced tenants and merchant owners. Staff and the project sponsor agreed to provide additional documentation about tenant counts, building permits and demolition timing for the April hearing.