Commission approves waiving some PDR change-of-use fees, keeps jobs-housing linkage fee on the table

The Planning Commission on Nov. 14 recommended approval of a mayoral ordinance to waive certain impact fees when spaces convert from production, distribution, and repair (PDR) to other nonresidential uses — a change intended to reduce costs for businesses seeking to open or expand in San Francisco.

Aaron Starr of the Planning Department summarized the ordinance's scope and noted it would not change zoning protections for PDR. "The legislation would waive impact fees where there is a change of use from PDR to any nonresidential use that is not a hotel or office," staff said. Katie Tang of the Mayor's Office of Small Business told commissioners the mayor's goal is to remove barriers for a broad variety of businesses, not to favor a single industry.

Public commenters representing neighborhood groups and business coalitions pressed for a continuance to refine the policy. Critics warned waiving fees could hasten loss of PDR space, disproportionately affecting blue-collar jobs and communities that rely on them. Supporters of the waiver argued it will make the city more accessible to small businesses and entrepreneurs.

Commissioner Braun's motion to adopt the recommendation for approval included guidance that the jobs-housing linkage fee not be entirely waived (either maintained or only partially reduced) and that staff continue community outreach to tailor application of waivers by use or geography. The motion passed 4-2 with Commissioners Williams and Imperial voting no.

Commissioners and staff agreed to follow up with further community conversations and to return with additional analysis of fee distributions and equity impacts.