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Planning Commission backs adaptive reuse of Hearst Building into hotel with tenant relocation assurances, 5–1
Summary
The commission approved a downtown project authorization and conditional use authorization to convert the Hearst Building at Third and Market into a boutique hotel and retail complex, with preservation commitments and staff‑requested plan revisions; commissioners sought documentation of agreements to assist businesses displaced during construction.
The Planning Commission voted to approve a package of entitlements that would adaptively reuse the historic Hearst Building at Third and Market as a boutique hotel with ground‑floor retail and rooftop amenities, following preservation review and ongoing negotiations to protect existing tenants.
Seema Adena of planning staff summarized the requests: a planning code text amendment specific to the site, a downtown project authorization with an off‑street loading exception, and a conditional use authorization for hotel use. Staff noted that the Historic Preservation Commission had approved a major permit and that the project had received favorable federal historic‑tax‑credit determinations in principle.
Todd Chapman, project sponsor (JMA Ventures), said the project has secured National Park Service review of the preservation plan and unanimous Historic Preservation Commission approval. He described structural upgrades, improved public access to historic features, and interpretive programming about the building’s architecture. Counsel and sponsor materials clarified a parapet allowance and minor plan edits requested by tenants and the Historic Preservation Commission.
Public comment was extensive. Unite HERE Local 2 urged a neutral process protecting workers’ right to unionize; multiple small businesses that occupy ground‑floor and basement spaces (Local Edition/Local Addition, Lark Bar, Cask Store) described long‑standing tenancy and asked for relocation and income‑protection assurances. Project sponsor representatives said they were negotiating relocation and compensation packages: Brian Sheehy (Future Bars) reported discussions that included the sponsor’s proposal to cover displaced income for up to five years if needed, and the sponsor said it would honor existing leases and assist tenants to find nearby space.
Commissioners pressed for a written record of tenant agreements. Director and staff requested a copy of any signed accommodations or summary letter for the commission record; the sponsor said it expected to finalize agreements during the upcoming appeal window.
On the motion to approve the planning code amendment, downtown authorization and conditional use authorization as amended, the commission voted 5–1. Commissioner Coppell cast the lone no vote, citing concerns about ensuring community returns for reduced height/entitlement tradeoffs and tenant protections.
What's next: The project will go to the Board of Supervisors for any required zoning changes; commissioners asked staff to report back with any signed tenant agreement or summary so status can be shared before the Board hearing.
