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Commission pauses decision on 9 Apollo ADU removal amid tenant dispute; matter continued to April 2
Summary
The Planning Commission continued a conditional use authorization for 9 Apollo Street after heated testimony from the property owner and tenant advocates; staff said legalizing the unauthorized unit would cost roughly $1,000,000 and the commission voted to continue to April 2 to gather more cost bids and await progress on pending litigation.
The Planning Commission continued consideration of a conditional use authorization for 9 Apollo Street after months of contentious litigation between the property owner and the tenant. The department recommended approval with conditions because the estimated cost to legalize the unauthorized accessory dwelling unit (ADU) — driven largely by required excavation — was roughly $1,000,000, a figure staff said constitutes a financial hardship compared with the gain in property value.
"Based on the documentation provided by the sponsor, it is approximately at $1,000,000," Planning Department staff said when asked to re‑state the legalization cost estimate.
Project sponsor Quentin Donnelly said the owners purchased a distressed property and that legalizing the ADU would cost more than the building is worth; he described multiple failed attempts to reach a buyout agreement. "We did in fact attempt several buyout offers," Donnelly said, and explained that negotiations had not produced a reasonable settlement.
Margaret DeMatteo, an attorney for Tenderloin Housing Clinic, representing the tenants, said the record shows a long litigation history and a pending appeal of a summary judgment that could change eviction outcomes. "This would be now a fifth eviction attempt of my clients," DeMatteo said, and urged the commission to consider the pending court case when deciding whether to authorize removal of the unit.
Commissioners discussed legal and housing policy questions: whether approving the CU would cause a de facto demolition eviction; whether additional cost estimates and settlement negotiations could change the record; and how to reconcile densification goals with tenant protections. Several commissioners asked staff to provide more information from the Rent Board and recommended the applicant obtain multiple bids for legalization.
The Commission voted unanimously to continue the item to April 2 with direction to gather additional bids, clarify eviction consequences with the Rent Board, and report on any settlement progress or court updates.
What happens next: Staff will collect additional cost estimates, coordinate with the Rent Board on eviction consequences, and the applicant and tenants were urged to pursue settlement before the continuation date.
