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OCII conditionally approves schematic amendment letting Rincon Annex convert 67,442 sq ft of interior retail to offices
Summary
OCII conditionally approved a schematic-design amendment allowing Hudson Pacific to convert up to 67,442 square feet of ground-floor interior retail in the Rincon Annex (101 Spear St.) to office use, citing historic landmark constraints, long-standing vacancy, and compliance with the redevelopment plan; commissioners asked about remaining tenants and murals and approved the amendment on a 4–0 roll call.
The Office of Community Investment and Infrastructure on Dec. 1 conditionally approved an amendment to the Rincon Center schematic design to permit the conversion of up to 67,442 square feet of interior-facing ground-floor retail gallery to office space.
OCII planner Laura Scheifele told commissioners the amendment applies to the Rincon Annex at 101 Spear Street and would not alter the building’s exterior: "Hudson Pacific proposes the conversion of portions of the Ground Floor internal atrium within the Rincon Annex from retail to office use," she said, describing the proposal as necessary to reactivate a historically hard-to-lease interior retail area.
Representatives from the project sponsor, including Melinda Sargarpur, said the interior retail units have struggled with vacancy for years—"around a 40% vacancy rate"—a condition made worse by the COVID-19 pandemic. Because the annex is a city landmark, historic-preservation rules limit changes to the exterior and prevent creating new street-facing storefronts; presenters said the interior space is therefore better suited to offices, which do not require street visibility.
Staff noted the amendment would authorize no exterior changes, would preserve the historic post-office lobby and murals as public amenities, and meets the redevelopment plan, the owner participation agreement and the design-for-development standards; the project team committed to prevailing wages on construction, voluntary SBE participation and providing neighborhood access to conference space.
Commissioners asked whether any existing businesses would remain and whether murals would be preserved. Project representatives said one restaurant with a long-term lease would remain, others had preferred to relocate to courtyard-facing spaces and the historic lobby murals are protected and will remain open to the public.
Commissioner Scott moved approval. The roll call produced four ayes and the motion carried.
What’s next: The amendment is categorically exempt from environmental review per CEQA provision cited during the presentation; OCII staff and the project team will proceed with the next steps required by the schematic-design amendment.
