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Planning Commission unanimously reauthorizes PDR cross‑subsidy tool to preserve industrial space
Summary
The Planning Commission voted 4–0 to make permanent a program that allows non‑residential cross‑subsidy to create production, distribution and repair (PDR) space, citing 150 Hooper as an example of the tool’s success. Industry and workforce development officials urged continuation to keep manufacturing in San Francisco.
The San Francisco Planning Commission voted unanimously on May 3 to reauthorize Planning Code section 210.3(c), a cross‑subsidy tool designed to make new production, distribution and repair (PDR) space financially feasible.
The Office of Economic and Workforce Development’s PDR sector manager, Susan Ma, told commissioners the program helps keep San Francisco’s economy diverse and creates jobs. She cited PlaceMade and the nearly completed 150 Hooper project — roughly 50,000 square feet of below‑market manufacturing space — as a tangible result of the code provision and said the city would see similar developments if the program were made permanent.
Supporters from local trade and nonprofit organizations delivered several testimonials during public comment. Gina Falsetto of SFMADE said manufacturers face long searches for affordable space and listed 150 Hooper as a model. Abby Wertheim, managing director of Placemade, described the project’s financing, including new markets tax credits, and said the legislation made the project possible. Kate Sofa, chief executive officer of PlaceMaid, asked the commission to pass the ordinance to enable additional affordable PDR projects and underscored growing local demand for manufacturing space.
Commissioners characterized the tool as a successful public–private mechanism. Commissioner Fong made the motion to approve; the measure passed 4–0 with Commissioners Fong, Koppel, Moore and President Hillis recorded as voting yes.
Why it matters: Advocates say the reauthorization preserves scarce, affordable space for manufacturing, arts and repair businesses that otherwise could be priced out by rising rents and market‑rate development. Staff told the commission the program aligns with the General Plan’s commerce and industry policies and recommended approval.
What’s next: The reauthorization takes effect according to applicable adoption procedures; staff will continue monitoring projects that use the tool and enforce conditions of approval, including the mitigation and labor standards attached to individual projects.
