Planning commission approves entitlements for 706 Mission Street, raises Union Square shadow limit by 0.06%

The San Francisco Planning Commission on a 4–3 vote approved a package of entitlements for the proposed 706 Mission Street development — a rehabilitation of the historic Aronson Building combined with a new residential tower and a core-and-shell home for the Mexican Museum — after the Recreation and Park Commission voted to allocate additional shadow budget for Union Square.

Planning staff told the commissions the modified proposal reduces tower height by 40 feet from its earlier submittal and would contain about 140–190 dwelling units, roughly 52,000 square feet of museum space, and about 4,800 square feet of retail. Kevin Guy of planning staff said that, after revising the project, "Staff recommends approval of the increase in the cumulative shadow limit, and the adoption of findings that the shadow would not be adverse." The staff report also said the project would increase the theoretical cumulative shadow budget for Union Square by 0.06 percent, which staff and commissioners described as an effective physical increase of about 0.01 percent once a Macy—s expansion adjustment is included.

Supporters from labor, business and cultural groups said the project will create jobs and a permanent, larger museum facility. Andrew Kluger, chair of the Mexican Museum board, urged approval so the museum could open and operate sustainably. Opponents — led by Bill Maher, author of Proposition K — contended that the commissions should not erode voter-approved protections for park sunlight and urged a smaller tower or a ballot referral.

Commissioners spent extensive time questioning staff and the project—s peer-reviewed feasibility analysis about FAR, transferable development rights, the Macy—s sunlight adjustment, parking allocation and whether alternatives (including a lower building) could achieve the museum and public benefits. Commissioner Antonini, who moved the key shadow and entitlement motions, said the changes and negotiated public benefits — including an 8 percent additional affordable-housing in-lieu amount above the base 20 percent, an $18 million core-and-shell contribution and a $5 million operating endowment for the museum — justified the narrowly limited shadow increase.

The Planning Commission first adopted CEQA findings (motion passed 4–3). It then voted 4–3 to increase Union Square—s cumulative shadow budget by 0.06 percent (staff said 0.05 percent represents the Macy—s adjustment and 0.01 percent is the net new shadow). The Recreation and Park Commission acted jointly to allocate that budget to the 706 Mission project and immediately adjourned, leaving the Planning Commission to continue with the other entitlement votes.

Final approvals included findings that the project—s net new shadow is not adverse to Union Square—s use, a recommendation of general-plan consistency, zoning text and map amendments, a Section 309 determination, and a height reclassification consistent with the revised project description (the motion recorded a 480-foot roof height with an approximately 30-foot mechanical penthouse). The commission also recorded a condition capping residential parking at one space per unit, with the remaining garage spaces made available to the public, and required follow-up design work on the museum—s base to address compatibility with the historic Aronson Building.

Commission votes were recorded on the public record: CEQA findings passed 4–3 (Antonini, Borden, Hillis, Fong in favor; Moore, Sugaya, Wu opposed); the shadow budget increase and entitlements also passed by 4–3 majorities. Staff will update the CEQA findings and entitlement motions to reflect the final project description and any conforming adjustments.

Next steps include the administrative design refinement required by the Historic Preservation Commission and additional technical submittals (including a revised shadow study if the sponsor elects further height changes). The Recreation and Park Commission adjourned after making its recommendation; the Planning Commission completed its remaining votes and closed the special hearing.