Committee sends Union Square conversion limits and fee to full Board with positive recommendation

The Land Use and Transportation Committee voted Jan. 14 to forward an ordinance tightening controls on non-retail conversions in the Union Square C3R zoning district and to create a Union Square Park recreation and open-space fee to fund public-realm improvements. Supervisor Aaron Peskin, sponsor of the legislation, said the measure is the product of multiyear collaboration among the Planning Department, his office and the Office of Economic and Workforce Development.

Peskin described the ordinance’s aim as preserving destination retail in Union Square amid pressures to convert upper floors to office uses. The legislation lifts interim zoning controls that the Board had imposed about a year earlier and includes a compromise allowing limited third-floor conversions where retail is not physically feasible, while preserving lower-floor retail priority. The package is supported by a nexus study and includes a conversion fee; Peskin said the measure will raise about $1 million for public-realm improvements in the C3R district.

Planning staff explained the reasoning behind singling out the Third Floor: retail generally performs at street level and third floors are often difficult to lease to retail operators because of their disconnection from the street. Questions from committee members about how the code defines floors and mezzanines were answered by planning staff who noted the planning code definitions determine which levels qualify as floors for this purpose.

Public commenters spoke in favor. William Levin, a longtime San Franciscan, called the compromise a reasonable approach and commended preservation of lower-floor retail. Karen Flood, executive director of the Union Square Business Improvement District, thanked Supervisor Peskin and said the fee will help activate the public realm.

Supervisor Peskin moved to send the ordinance to the full Board with a positive recommendation; the motion passed without objection. The ordinance and fee will appear on the Jan. 29 Board agenda for Board consideration.