SEC. 424.6. TRANSIT CENTER DISTRICT OPEN SPACE IMPACT FEE AND FUND.

Sections 424.6.1 through 424.6.4 set forth the requirements and procedures for the Transit Center District Open Space Impact Fee and Fund. The effective date of these requirements shall be the effective date of this Ordinance or the date a subsequent modification, if any, became effective.

(Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012)

(a) General. Existing public park and recreational facilities located in the downtown area are at or approaching capacity utilization by the population of the area. There is substantial additional population density, both employment

and residential, planned and projected in the Transit Center District. This district, more than other parts of the downtown, is lacking in existing public open space amenities to support population growth. The need for additional public park and recreation facilities in the downtown area, and specifically in the Transit Center District, will increase as the population increases due to continued office, retail, institutional, and residential development. Additional population will strain and require improvement of existing open spaces both downtown and citywide, and will necessitate the acquisition and development of new public open spaces in the immediate vicinity of the growth areas. While the open space requirements imposed on individual commercial developments address the need for plazas and other local outdoor sitting areas to serve employees and visitors in the districts, and requirements imposed on individual residential developments address the need for small-scale private balconies, terraces, courtyards or other minor common space such as can be accommodated on individual lots, such open space cannot provide the same recreational opportunities as a public park. In order to provide the City and County of San Francisco with the financial resources to acquire and develop public park and recreation facilities necessary to serve the burgeoning population in the downtown area, a Transit Center District Open Space Fund shall be established as set forth herein. The Board of

Supervisors adopts the findings of the the[1] San Francisco Citywide Nexus Analysis (“Nexus Analysis”), on file with the Clerk of the Board in File No. 230764, in accordance with the California Mitigation Fee Act, Government Code Section 66001(a).

(b) Transit Center District Open Space Impact Fee. Development impact fees are an effective approach to mitigate impacts associated with growth in population. The proposed Transit Center District Open Space Impact Fee shall be dedicated to fund public open space improvements in the Transit Center District Plan Area and adjacent downtown areas that will provide direct benefits to the property developed by those who pay into the fund, by providing necessary open space improvements needed to serve new development.

The Planning Department has calculated the fee rate using accepted professional methods for calculating such fees. The calculations are described fully in the Nexus Analysis, on file with the Clerk of the Board in File No. 230764.

The proposed fee, in combination with the Downtown Park Fee established in Section 412 et seq. , is supported by the Nexus Analysis..1 While no project sponsor would be required to pay more than the maximum amount justified for that project as calculated in the Nexus Study, the Transit Center District Open Space Fee is tiered such that denser projects are assessed higher fees because it is economically feasible for such projects to pay a higher proportion of the maximum justified amount. The proposed fee covers impacts caused by new development only and is not intended to remedy existing deficiencies. The cost to remedy existing deficiencies will be paid for by public, community, and other private sources as described in the Nexus Analysis and the Transit Center District Plan Program Implementation Document. Impact fees are only one of many revenue sources funding open space in the Plan Area. (Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)

AMENDMENT HISTORY Section amended; Ord. 193-23, Eff. 10/16/2023. CODIFICATION NOTE 1. So in Ord. 193-23.

(a) Application. Sections 424.6 et seq. shall apply to any development project located in the C-3-O(SD) District and meeting the requirements of subsection (b) below.

(b) Projects subject to the Transit Center District Open Space Impact Fee. The Transit Center District Open Space Impact Fee is applicable to any development project in the C-3-O(SD) District which results in:

• (1) At least one net new residential unit,

• (2) Addition of space to an existing residential unit of more than 800 gross square feet,

• (3) At least one net new group housing facility or residential care facility,

• (4) Addition of space to an existing group housing or residential care facility of more than 800 gross square feet,

• (5) New construction of a non-residential use, or

• (6) Addition of non-residential space in excess of 800 gross square feet to an existing structure.

• (7) Conversion of existing space to a different use where the project's total fee as calculated according to

subsection (c) below would exceed the total fee for the uses being replaced.

(c) Fee Calculation for the Transit Center District Open Space Impact Fee. For development projects for which the Transit Center District Open Space Impact Fee is applicable, the corresponding fee for net addition of gross square feet is listed in Table 424.6A. Where a development project includes more than one land use, the overall proportion of each use relative to other uses on the lot shall be used to calculate the applicable fees regardless of the physical distribution or location of each use on the lot. Where a project proposes conversion of existing space to a different use, the Director shall specify the fee amount based on a Guidance Statement or other document establishing the methodology for calculating fees.

(1) Base Fee. The fee listed in Column A shall be assessed on all applicable gross square footage for the entire development project.

(2) Projects Exceeding FAR of 9:1. For development projects that result in the Floor Area Ratio on the lot exceeding 9:1, the fee listed in Column B shall be assessed on all applicable gross square footage on the lot above an FAR of 9:1.

TABLE 424.6A

FEE SCHEDULE FOR NET ADDITIONS OF GROSS SQUARE FEET IN THE TRANSIT CENTER DISTRICT AREA

(d) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Transit Center District Open Space Impact Fee from the Planning Commission, subject to the following rules and requirements:

for In-Kind Provision of Community Improvements and Fee Credits.** Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Transit Center District Open Space Impact Fee from the Planning Commission, subject to the following rules and requirements:

(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Transit Center District Plan Implementation Program Document and where they substitute for improvements that could be provided by the Transit Center District Open Space Fund (as described in Section 424.6.4). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Transit Center District Plan, by the Interagency Plan Implementation Committee (see Chapter 36 of the Administrative Code), or other prioritization processes related to Transit Center District improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.

For a development project on Assessor's Block 3720 Lot 009, an In-Kind Agreement may be approved which credits the project for public open space improvements constructed by either the sponsor of the development project or by the Transbay Joint Powers Authority, in accordance with the Transit Center District Plan Implementation Program Document.

(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. A detailed site-specific cost estimate for a planned improvement prepared by the City or the Transbay Joint Powers Authority may satisfy the requirement for cost estimates provided that the estimate is indexed to current cost of construction.

(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:

(A) A description of the type and timeline of the proposed in-kind improvements.

(B) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.

(C) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.

(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. The Planning Commission shall hear and consider the recommendation of the Interagency Plan Implementation Committee, as established in Chapter 36 of the Administrative Code, in deciding whether to approve or disapprove any In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning shall be authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Transit Center District Open Space Impact Fee equivalent to the value of the improvements proposed in the In-Kind Agreement. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the credit for the improvements proposed in the In-Kind Improvements Agreement shall not exceed the required Transit Center District Open Space Impact Fee.

(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.

(e) Timing of Fee Payments. The Transit Center District Open Space Impact Fee is due and payable to the Development Fee Collection Unit at DBI consistent with timing set forth in Section 107A.13.3 of the San Francisco Building Code.

(f) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article.

(Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012; amended by Ord. 56-13 , File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025) AMENDMENT HISTORY

Former divisions (d)(3)(i)-(iii) redesignated as (d)(3)(A)-(C); Ord. 56-13 , Eff. 4/27/2013. Division (e) amended; Ord. 50-15 , Eff. 5/24/2015. Former division (c)(3) deleted; Ord. 188-15 , Eff. 12/4/2015. Division (e) amended; Ord. 19625, Eff. 11/24/2025.

(a) Determination of Requirements. The Department shall determine the applicability of Sections 424.6 et seq. to any development project requiring a first construction document and, if Sections 424.6 et seq. is applicable, the Department shall determine the amount of Transit Center District Open Space Impact Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.

(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Sections 424.6 et seq. , the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Transit Center District Open Space Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.

(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Sections 424.6 et seq . that has elected to fulfill all or part of its Transit Center District Open Space Impact Fee requirement with an InKind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Sections 424.6 et seq. , either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Transit Center District Open Space Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code .

(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Sections 424.6 et seq . and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed. (Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012)

(a) There is hereby established a separate fund set aside for a special purpose entitled the Transit Center District Open Space Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 424.6.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund to be used solely to fund Public Benefits subject to the conditions of this Section.

(b) Expenditures from the Fund shall be recommended by the Interagency Plan Implementation Committee for allocation and administration by the Board of Supervisors.

(1) All monies deposited in the Fund shall be used to design, engineer, acquire, and develop and improve both new and existing public open spaces and recreational facilities in the Transit Center District Plan Area, the greater downtown, and citywide as established in the Transit Center District Plan and the Transit Center District Plan Implementation Program Document and supported by the findings of the Downtown Open Space Nexus Study.

(2) Funds may be used for administration and accounting of fund assets, for additional studies as detailed in the Transit Center District Plan Implementation Program Document, and to defend the Transit Center District Open Space Impact Fee against legal challenge, including the legal costs and attorney's fees incurred in the defense. Administration of this fund includes time and materials associated with reporting requirements, facilitating any necessary or required public meetings aside from Planning Commission hearings, and maintenance of the fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, and/or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities and services if this is deemed necessary. Monies used for the purposes consistent with this subsection (2) shall not exceed five percent of the total fees collected. All interest earned on this account shall be credited to the Transit Center District Open Space Fund.

(3) All funds are justified and supported by the Downtown Open Space Nexus Study, San Francisco Planning Department, Case No. 2007.05558U. Implementation of the Fee and Fund are monitored according to the Downtown Plan Monitoring Program required by the Administrative Code Section 10E.

(Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012; amended by Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015)

AMENDMENT HISTORY Former division (c) deleted; Ord. 188-15 , Eff. 12/4/2015.