Planning Commission grants two‑year extension for 1 Oak/1540 Market; developer pledges $45M in impact payments

San Francisco — The Planning Commission on Jan. 16 approved a two‑year extension of entitlements for the 1 Oak project at 1540 Market Street, allowing the developer more time to complete design and pull site permits. The motion passed unanimously.

Lou Vasquez, a partner at Build, told the commission the project — previously approved on June 15, 2017 — needs more time to attract capital and that the team now has an investor under contract. "We're merely asking for an extension of those original entitlements," Vasquez said, adding the sponsor is not requesting changes to the approved entitlements.

The sponsor described a 319‑unit residential tower with ground‑floor retail and a roughly 16,000‑square‑foot public plaza designed to link Hayes Valley and the Civic Center Cultural Arts District. Vasquez said the project will provide approximately $45 million in impact payments and in‑kind improvements, including about $30 million for affordable housing and $15 million for infrastructure work.

Public testimony included neighbors asking whether long‑standing ground‑floor tenants (notably All Star Donuts) would remain; the developer said the tenant will be present for at least another year and pledged to continue discussions with small businesses about relocation or continuity. Labor and community groups — including the Carpenters Union and the San Francisco Tenants Union — offered a mix of support and caution about small‑business and displacement impacts.

The commission approved the extension and the zoning administrator indicated the related variance will be granted with standard conditions and a performance period matched to the extension.

Next steps: the developer will proceed to obtain site permits and the planning and building reviews required to start construction; the commission recorded the extension to 06/15/2022.