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Commission backs modest parks fee increase for downtown retail‑to‑office conversions
Summary
The commission approved a $2 increase to the downtown parks and open space impact fee for retail‑to‑office conversions, raising the fee from $4 to $6 per square foot; staff said the increase remains well below the maximum supported by the nexus study.
The Planning Commission voted to increase the downtown parks and open‑space impact fee for retail‑to‑office conversions from $4 to $6 per square foot, approving the change unanimously on Feb. 21.
Staff and Supervisor Peskin’s office framed the $2 increase as modest and supported by the board’s nexus study. Lee Heppner (Peskin’s office) told the commission the change “keeps us well below the $12.95 maximum nexus fee” and argued the modest increase would capture new conversion activity to help fund pedestrian and streetscape improvements. Audrey Buckus of the Planning Department said the nexus study supports fees up to $12.95 per square foot based on estimated park use factors for new office users.
Members of the Union Square Business Improvement District (Karen Flood) spoke in conditional support — endorsing the fee increase so long as negotiated language preserving third‑floor flexibility remains in the version before the commission. Commissioners expressed interest in balancing public benefits and market feasibility; a motion to approve with staff modifications carried 7‑0.
Staff said the amendment applies to conversions in the downtown C3R zoning district and that the department will coordinate implementation with the Board of Supervisors’ actions on related legislation.
