SEC. 418.3. APPLICATION OF RINCON HILL COMMUNITY IMPROVEMENTS FEE AND SOMA COMMUNITY…

(a) Application. Section 418.1 et seq. shall apply to any development project located in the Rincon Hill Community Improvements Program Area

(b) Projects subject to the Rincon Hill Community Infrastructure Impact Fee. The Rincon Hill Community Infrastructure Impact Fee is applicable to any development project in the Rincon Hill Program Area which results in:

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

• (2) Additional space in 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) Additional space in an existing group housing or residential care facility of more than 800 gross square feet,

(c) Fee Calculation for the Rincon Hill Community Infrastructure Impact Fee. For development projects for which the Rincon Hill Community Infrastructure Impact Fee is applicable:

• (1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 418.3A, and

• (2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 418.3B.

TABLE 418.3A

RINCON HILL COMMUNITY INFRASTRUCTURE IMPACT FEE SCHEDULE FOR NET ADDITIONS OF

GROSS SQUARE FEET IN THE RINCON HILL PROGRAM AREA:

Residential $8.60/gsf

TABLE 418.3B

RINCON HILL COMMUNITY INFRASTRUCTURE IMPACT FEE SCHEDULE FOR REPLACEMENT

OF USE OR CHANGE OF USE IN THE RINCON HILL PROGRAM AREA

(d) Projects Subject to and Fee Calculation for the SOMA Community Stabilization Fee. The SOMA Community Stabilization Fee shall be $10.95 per net addition of gross square feet of residential use in any development project with a residential use within the Program Area.

(e) Option for In-Kind Provision of Community Infrastructure 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 Rincon Hill Community Infrastructure Impact Fee from the Planning Commission, subject to the following rules and requirements:

In-Kind Provision of Community Infrastructure 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 Rincon Hill Community Infrastructure 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 and where they substitute for improvements that could be provided by the Rincon Hill Community Improvements Fund (as described in Section 418.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Rincon Hill Area Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or other prioritization processes related to Rincon Hill community 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.

(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. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it 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:

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

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

(iii) 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. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is 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 Rincon Hill Community Infrastructure Impact Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. 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 In-Kind Improvements Agreement shall not exceed the required Rincon Hill Community Infrastructure 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.

(f) Option for Financing of In-Kind Community Improvements or payment of the Rincon Hill Community Infrastructure Impact Fee via a Mello-Roos Community Facilities District ("CFD"). Applicants may finance In-Kind Community Improvements (subject to subsection (f) above) or payment of the Rincon Hill Community Infrastructure Impact Fee (subject to subsection (c) above) through the formation of a CFD.

(g) Timing of Fee Payments. The Rincon Hill Community Infrastructure Impact Fee and SOMA Stabilization Fee shall be paid to DBI for deposit into the Rincon Hill Community Improvements Fund at the time required by Section 402(d).

(h) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article. In the event that the Board of Supervisors grants a waiver or reduction under Section 406 of this Article, it shall be the policy of the Board of Supervisors that it shall adjust the percentage of inclusionary housing in lieu fees in Section 827(b)(5)(C) of this Code such that a greater percentage of the in lieu fees will be spent in SOMA with the result that the waiver or reduction under this Section shall not reduce the overall funding to the SOMA community. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)

AMENDMENT HISTORY

Section header and division (g) amended; Ord. 50-15 , Eff. 5/24/2015. Division (g) amended; Ord. 63-20, Eff. 5/25/2020.