Planning Commission approves 6‑story project at 98 Pennsylvania Street over neighborhood objections, 5–1

The San Francisco Planning Commission voted 5–1 to approve a large project authorization for 98 Pennsylvania Street, allowing a six‑story, approximately 74,000‑square‑foot residential building with 64 dwelling units and 10 on‑site affordable units.

Planning Department staff recommended approval, finding the project consistent with the Showplace‑Square/Potrero Hill area plan and the General Plan. Staff described the proposal as maximizing residential density on a surface parking lot near transit and public­-serving corridors. The project is pursuing a 49 percent state density bonus and requested three waivers (rear yard, ground‑floor ceiling height and building height) to reach the proposed scale.

The hearing drew lengthy public comment from neighborhood groups, labor representatives and nearby property owners who raised safety and design questions. Allison Heath of the Potrero Boosters said the group has "not yet presented the project to our full membership" and urged a continuance, citing concerns that the site abuts an elevated freeway, that existing drawings do not reflect current ground conditions near I‑280, and that emergency access and code‑compliant streets are unresolved.

The NorCal Carpenters (Local 22) asked for a continuance to negotiate labor standards; a union representative said the project lacked binding labor commitments.

Project counsel John Kevlin and the sponsor responded that the current entitlement supersedes an earlier 2016 approval and that the sponsor has increased the on‑site affordable rate (from the previous 15.4% grandfathered rate to the proposed 21% with additional voluntary low‑income unit). Kevlin said design changes had been made based on booster feedback and that mechanical and filtration space is provided in roof and basement mechanical rooms.

Commission discussion focused on technical legal limits (state density bonus and the Housing Accountability Act), life‑safety review timing, whether streets that are now undeveloped count as public right‑of‑way for exposure requirements, and the project’s relationship to an as‑yet‑unfinalized Pennsylvania Avenue extension study. Deputy City Attorney Kristen Jensen advised commissioners that the commission cannot consider an undefined potential public project that may or may not take place on neighboring property when making its entitlement decision.

Commissioner Diamond moved to approve, citing that outstanding issues could be resolved in the normal course of interagency review; Commissioner Moore was the lone dissenting vote, citing unresolved questions that he said warranted more vetting. The motion passed 5–1.