SF New Developments

Reprinted from “Organized Labor” The San Francisco Planning Department is in the process of developing a new master plan for the Rincon Hill area, which lies immediately to the south of the financial district. The neighborhood is bounded on the north by Folsom Street, on the east by the Embarcadero and Steuart, on the south by Bryant Street, and on the west by Essex Street and the off ramps from the Bay Bridge. The zoning changes will encourage the construction of new high-density, mixed-use, residential development; and will also include a new neighborhood commercial district on Folsom Street.

The Rincon Hill plan is currently being reviewed by the Planning Commission and the Land Use Committee and will be forwarded to the Board of Supervisors for their final approval. In consideration of the higher densities and increased height limits mandated by the plan, the Planning Commission has proposed a new City ordinance to impose higher fees for developers, currently estimated at from $11 to $14 per square foot. Most of the fees would be used for improvements to neighborhood infrastructure such as acquisition of open space and development of facilities for community arts and recreation as envisioned for the Sailors Union of the Pacific Building at 450 Harrison Street.

The Rincon Hill Plan is part of a larger proposal to allow for higher densities in the Downtown and the South of Market neighborhoods The San Francisco Building Trades Council supports the new Rincon Hill plan. The plan will result in the construction of more housing units in the City and make housing more affordable. Under the terms of the inclusionary housing ordinance, 12% of the units must be affordable if built as part of the project. If built off-site, 17% of the units must be affordable.

In the case of the Rincon Hill neighborhood, the units must also be built within the nearby South of Market neighborhood. The additional housing will take some pressure off the existing inadequate housing supply, which is being bid up in price. People in middle income groups, including many of our union members in the construction trades, continue to leave San Francisco because of the housing shortage, which creates high rents and high housing prices. The Rincon Hill plan will provide an estimated 2,220 additional units of housing because of the higher densities, and give San Francisco a neighborhood where people can live and work in the same area. Property tax revenues would increase by an estimated $29 million per year. Projects within the Rincon Hill district, which are currently entitled, include the Tishman Speyer Properties developments at 300 Spear and 201 Folsom Street. They will provide roughly 1,600 units of new housing, including more than 200 affordable units off- site. The proposal includes two separate half- block, complexes including retail uses.

The project at 201 Folsom will contain two, slender residential towers, rising to 350″ and 400″. The second project at 300 Spear is also a mixed use, half-block square development, with two residential towers of 350″ and 400″, and two separate free-standing 8 story buildings. The Rincon Hill plan will also complement the nearby Transbay Terminal project. In the roughly 20- block area surrounding the proposed new station, the Transbay Joint Powers Authority will develop 7.6 million square feet of office space and build 3,400 new residential units. Height limits have also been lifted in the Transbay area. The 58-story residential tower being developed by Millennium Partners at 301 Mission Street is expected to start construction later this year. The proposed new 720 unit development at One Rincon Hill, (425 First Street), with its 45 and 55 story residential towers by Michael Kriozere of Urban West Associates is symbolic of the scale of development that the new plan can provide. The property is now owned by Bank of America, formerly Union Oil.

At the May 5th meeting of the Planning Commission it was agreed that planners would allow flexibility in height and density requirements for two new residential projects at 375 and 399 Fremont, that are in the pipeline. The 375 Fremont project between Harrison and Folsom is being developed by Theodore Brown and Partners, Inc. The 28-story building would contain 225 condominium units with parking provided in an underground garage. The new residential tower would replace the Hjul Building a two-story office building at 355-375 Fremont. As per the inclusionary housing ordinance, 12% of the units would be affordable. A vigorous residential construction program in this city will have obvious economic benefits, including new residents, new customers for San Francisco business, and new tax revenue for government services. The new zoning, land use and design changes will encourage new construction and create new jobs for our members. At a time when San Francisco is only just beginning to pull out of a recession, investment in our residential base can be the trigger for new growth.

Original Article http://www.sfbctc.org/051605-rincon.htm