Planning Commission approves 1699 Market Street housing-and-retail project with conditions

The San Francisco Planning Commission on March 24 unanimously approved a proposed nine‑story, mixed‑use development at 1699 Market Street, finding the project consistent with the planning code while attaching conditions intended to improve ground‑floor activation and neighborhood fit.

Department staff told commissioners the project would create up to 160 dwelling units, including 19 on‑site affordable units, about 3,664 square feet of ground‑floor retail fronting Market Street, and roughly 82 basement parking spaces. Development impact fees were estimated at about $2.86 million. Staff recommended approval with conditions after receiving eight additional letters—four in support and four in opposition—since the packet was published.

Project sponsor Mark Conroe said the team spent three years designing the building and conducting community outreach, and highlighted commitments to on‑site affordable housing and bicycle infrastructure. "We are proud of our team's effort and believe the proposed project will bring much needed rental housing," Conroe said during his presentation.

Public testimony split between labor and neighborhood voices. Adrian Simi, speaking for about 3,500 carpenters, thanked the sponsor for using a signatory contractor and urged support. The Hayes Valley Neighborhood Association’s Tess Welborn urged stronger affordability (a 20 percent BMR target), zero parking and changes to the retail frontage; she told commissioners the developer "is getting additional value" by altering the Market Octavia plan and urged a higher BMR share. Several nearby residents raised concerns about the proposed garage entrance on Macapin Street, shadows on adjacent streets and the viability of large ground‑floor retail in the area.

Commissioners pressed the sponsor and staff on several design and policy issues: whether affordable units would be provided on site (staff confirmed they would and that a Costa Hawkins exception agreement had been executed), the number and configuration of parking spaces (the project was revised to reduce parking to roughly 0.48 spaces per unit), subdivision and build‑out of the retail space, and measures to activate the public realm at the cable‑car turnaround site adjacent to the project.

To address these concerns, the commission approved the project with the following key conditions: require plans to show utilities and infrastructure for subdividable retail on Market Street (minimum two spaces), enhance the western facade (for example with mural/art treatment), add two car‑share spaces while removing two individual off‑street parking spaces, maximize and improve the Macapin Street ground‑floor frontage for activation without eliminating housing above, and include clarified affordable‑housing errata specifying 160 dwelling units with 19 affordable units and the corrected affordable unit mix. The motion also asked staff and the sponsor to continue working on the possibility of eliminating the Macapin garage entrance and on micro‑design adjustments to the retail and lobby expression on Market Street.

Commissioner Anthony moved the amended approval and the motion was seconded and passed unanimously 7–0. The commission’s action directs staff to finalize conditions and return any required errata as part of the administrative record.

Next steps: The project is approved subject to the conditions set by the commission; the developer and planning staff will coordinate final plan adjustments and errata. Any building permits or other approvals required to implement the project will follow the usual permitting process.