Planning Commission adopts interim PDR loss-and-replacement policy, continues EIR to Aug. 7

The San Francisco Planning Commission on July 31 adopted an interim PDR loss-and-replacement policy intended to give developers and businesses a predictable framework for projects moving through the pipeline while the larger Eastern Neighborhoods rezoning proceeds.

The interim policy, docketed as item 2g, establishes different replacement expectations by subarea: in areas designated to move toward residential uses, PDR replacement would be required when PDR exists on the site; in industrial enclaves (so‑called “blue zones”), replacement would be required on a one‑to‑one floor‑area‑ratio basis; and in neighborhood commercial or restaurant‑residential enclaves there would be no mandatory replacement during the interim period. Staff said the policy is temporary and would sunset either when the Board of Supervisors adopts the Eastern Neighborhoods rezoning or on Jan. 1 of the sunset year, whichever occurs first.

Planning Department staff framed the measure as a narrowly tailored, interim fix that can be implemented without certification of the EIR. Ken Rich, senior staff, told commissioners the provision responds to concerns from pipeline projects that have been delayed and seeks to avoid creating a de facto moratorium. City Attorney staff noted that building‑permit law already includes commencement requirements for projects, which can interact with the policy.

Supporters who testified during public comment, including small‑business and builder representatives, urged the commission to adopt the interim policy immediately. Speakers said projects in the pipeline have been stalled for years, that banks have tightened construction lending and that clarity is needed so projects can proceed. Opponents and several neighborhood groups urged patience and additional review, arguing that interim rules can become precedent and asking for more time for the community to evaluate impacts.

The commission voted to adopt the interim PDR policy after amendments and clarifications were discussed on the record. Commissioners also voted to continue certification of the Eastern Neighborhoods environmental impact report to Aug. 7 to allow the public to review updated materials and to enable staff to finalize remaining technical work. The commission’s action on the interim policy was presented as separate from the EIR certification because staff said the interim measure can be implemented administratively in the near term.

What happens next: staff will circulate final revised materials before the Aug. 7 meeting. The interim policy will be in place only until the Board acts or until the stated sunset date, whichever occurs first; the commission and staff said they expect to revisit details such as the pipeline list and any project‑level implications when the full package returns for final action.

Votes and process notes: Commissioners recorded aye votes on the interim policy; the EIR certification was continued by majority vote to Aug. 7. Two commissioners, Seguin and Antonini, announced recusals from EIR deliberations because of prior involvement or pending FPPC matters and were formally recused earlier in the session.

Ending: The department said it will post updated staff reports and the adoption packet to the website and distribute CDs; staff representatives asked the public to review the materials and prepare comments for the next hearing on Aug. 7.