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Committee tables proposal to eliminate PDR impact fees after community objections
Summary
An ordinance to eliminate impact fees for conversions from production, distribution and repair (PDR) uses to other nonresidential uses was tabled after community groups argued fee cuts risked displacing PDR jobs and undermining neighborhood infrastructure funding.
The committee tabled an ordinance that would remove local impact fees applied when properties convert from production, distribution and repair (PDR) to other nonresidential uses. Katie Tang, director of the Office of Small Business, said the proposal is part of mayoral efforts to reduce costs for businesses and that while such cases are relatively rare (roughly four projects a year), the fees can be significant — ranging from roughly $15,000 to $100,000 depending on the scope of work.
Public commenters representing SamCan/Soma Pilipinas, Mission Economic, and the Trail Boosters Neighborhood Association urged the committee not to adopt broad cuts to impact fees without targeted exemptions. Commenters said PDR spaces are scarce and support well‑paying blue‑collar jobs; they recommended retaining fees such as the jobs‑housing linkage fee and limiting exemptions to childcare, nonprofits and residential care facilities to avoid incentivizing conversions to biotech or high‑end uses that displace local employment.
President Aaron Peskin moved to table the ordinance; the motion passed with Supervisors Peskin and Preston voting aye and Chair Melgar excused. The tabling preserves the existing fee structure while staff and community groups continue to negotiate targeted amendments.
