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Developers say downtown office projects are moving; commissioners press staff on tracking 18-month starts
Summary
Planning staff updated the commission on four long-delayed office projects (350 Bush, 500 Pine, 801 Market, 3433 Third). Two properties were sold and developers reported recent steps — including payment of Jobs-Housing linkage fees of roughly $5.15 million and $664,000 — and sponsors said they intend to build; commissioners discussed tightening reporting and possible revocation of unused allocations.
Planning Department staff updated the commission on four office projects that had exceeded the city’s 18-month commencement expectation. Staff reported property transfers and recent activity: 350 Bush and 500 Pine are under new ownership; building permits were filed and Jobs-Housing Linkage Program payments were recently made ($5,153,000 for Bush; $664,000 for Pine). Sponsors and agents in the audience said new ownership intends to develop the buildings as entitled, and that the change in market timing — not abandonment — explained the delay.
The department also reported that the redevelopment agency reported abandonment of the 3433 Third Street redevelopment project, and the department revoked the allocation; no appeal had been filed. Commissioners pressed staff on how the department tracks commencement and how the zoning administrator’s extension powers have been used historically. Staff reiterated policy: certain annual-limit projects have historically been allowed to remain alive until allocation pressure requires re-examination; the commission directed staff to prepare reporting and consider future policy options on revocations and additional scrutiny of long-dormant entitlements. Several commissioners urged requiring more frequent informational reporting when projects approach year- and multi-year thresholds.
Commissioners were broadly receptive to evidence of new activity for Bush and Pine but agreed to continue work on clearer reporting and procedures for whether and when entitlements should be revoked or brought back for hearing.
