Planning Commission backs Kilroy’s Central SoMa Flower Mart plan with development agreement

The San Francisco Planning Commission voted unanimously July 18 to recommend approval of a multi‑phase Central SoMa development by Kilroy Realty that would replace the aging wholesale Flower Mart with a new mixed‑use complex and fund a large package of public benefits.

Planning staff described the proposal as a three‑building redevelopment on the 6½‑acre site at Brannan and Sixth streets that would demolish existing structures and construct up to roughly 2 million square feet of office, up to 113,000 square feet of production, distribution and repair (PDR) space (as part of the replacement market), significant retail and new publicly accessible open space. The staff presentation said the project would dedicate a 15,000‑square‑foot off‑site parcel for housing, contribute $5 million to the Sunnydale hub project, provide $160 million in impact fees and include a detailed development‑agreement structure obligating Kilroy to fund interim relocation and to either rebuild an on‑site Flower Mart or finance a permanent off‑site replacement if market vendors choose that option.

Anne Topier of the Office of Economic and Workforce Development described the development agreement as addressing both an on‑site and off‑site scenario and emphasized protections for the Flower Mart tenants: "The Flower Mart is made up of over 50 independent small business owners who in turn accommodate 4,000 small and large businesses across all of Northern California on a weekly basis," she said, explaining the vendor protections built into the DA.

Kilroy representatives told the commission the company had worked with the vendors for five years and agreed to an interim relocation plan (2000 Marin) and up‑front payments to support vendor due diligence; the project also front‑loads community benefits including payments targeted to affordable housing, public art and streetscape improvements. The developer said the DA includes strict timing and payment requirements that would prevent issuance of final certificates of occupancy until vendor obligations are satisfied.

Public testimony ran long and split between community groups and many Flower Mart vendors and customers. Supporters — including labor leaders and retail operators that rely on the market — urged approval to secure the Mart's future. Critics and some neighborhood groups asked for firmer guarantees about the market’s operation and for clearer assurances on workforce and retail benefits if the off‑site option is exercised.

After robust deliberation the commission moved to approve the planning code and zoning map amendments, grant large project authorization and the requested office allocation for the first phase, and recommend that the Board of Supervisors approve the development agreement; the vote passed 6–0.

What happens next: The commission’s recommendation will move to the Board of Supervisors and other entitlements required by the development agreement process. The DA gives Flower Mart vendors a fixed time window to decide whether to return on‑site or to accept relocation and developer assistance for an off‑site permanent market; Kilroy must make near‑term payments to fund vendor due diligence and the interim facility.