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Commission discusses requiring commercial components be completed before residential in mixed-use projects
Summary
Commissioners considered changing the form-based code to require commercial elements of mixed-use developments be completed before residential construction, to avoid half-finished commercial space. Staff will research whether the requirement belongs in the form-based code or a development agreement; the commission postponed any immediate change.
The Sunset City Planning Commission discussed whether form-based-code language should require commercial components of mixed-use projects to be completed before residential components, a step commissioners said could protect the city's tax base and discourage unfinished commercial space.
Staff described instances where developers proceeded with residential phases while leaving commercial portions unfinished; commissioners raised the possibility of requiring commercial completion early in a project or placing such obligations in development agreements. One commissioner noted practical limits: developers often build a shell and finish interiors "build-to-suit," and the timing of occupancy depends on market demand.
Commissioners asked staff to research the best placement for such a requirement (form-based code vs. development agreement) and to return with language options; Commissioner (speaker 4) moved to postpone a code change on this item and the motion passed unanimously.
