SEC. 429.3. IMPOSITION OF PUBLIC ART FEE REQUIREMENT.

(a) Determination of Requirements. The Department shall determine the applicability of Section 429.1 et seq. to any development project requiring a first construction document and, if Section 429.1 et seq. is applicable, the number of

gross square feet subject to its requirements, and shall impose this requirement as a condition of approval for issuance of the first construction document for the development project to address the need for additional public art in the downtown districts. The project sponsor shall supply any information necessary to assist the Department in this determination.

(b) Amount of Fee. Upon design approval of the development project from the Planning Department, and except as otherwise provided herein, the project sponsor shall dedicate and expend an amount equal to one percent of the construction cost of the building or addition as determined by the Director of DBI (the "Public Art Fee") for the purposes described herein and subject to the options set forth below.

(c) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross floor area subject to Section 429.1 et seq. and the dollar amount of the Public Art Fee required, the Department shall immediately notify the Development Fee Collection Unit at DBI of its determination, in addition to the other information required by Section 402(b) of this Article.

(d) Options to Fulfill Requirements.

(1) Non-Residential Development Projects. Non-residential buildings with public open space requirements greater than 1,499 square feet but less than 3,000 square feet that provide ground floor open space shall comply with Section 429.3 by providing on-site public art of a value equivalent to the Public Art Fee; provided, however, that if the required Public Art Fee exceeds $500,000, only on-site public art valued at $500,000 is required to be provided on-site. Nonresidential buildings with public open space requirements greater than or equal to 3,000 square feet that provide ground floor open space shall comply with Section 429.3 by providing on-site public art of a value equivalent to the Public Art Fee; provided, however, that if the required Public Art Fee exceeds $750,000, only on-site public art valued at $750,000 is required to be provided on-site. In any case where the Public Art Fee requirement exceeds the amount required on-site, prior to issuance of a building or site permit the project sponsor shall elect one of the following options to fulfill any requirements imposed as a condition of approval and to notify the Arts Commission and the Department of their choice:

(A) to expend the remainder of the Public Art Fee on-site, or

(B) to deposit the remainder of the Public Art Fee into the Public Artwork Trust Fund established in Section 10.100-29 of the San Francisco Administrative Code for the purposes set forth therein and in Section 429.5(b), including the creation, installation, exhibition, conservation, preservation, and restoration of works of public art and for capital improvements to non profit arts facilities ("In-Lieu Fee for Public Artwork Trust") within the C-3 District or within a half mile of the boundary of the C-3 District or, if the project is within another zoning district, within a half mile of the project boundary, or

(C) to expend a portion of the remainder on-site and deposit the rest into the Public Artwork Trust Fund. As provided in Section 402, the project sponsor shall pay the fee to the Development Fee Collection Unit at DBI.

(2) Residential Development Projects. Prior to issuance of a building or site permit for a residential development project subject to the requirements of Section 429.1 et seq. , the sponsor shall elect one of the options listed below to fulfill any requirements imposed as a condition of approval and to notify the Arts Commission and the Department of their choice of the following:

(A) Option to Use 100% of Public Art Fee to Provide On-Site Public Artwork. Unless otherwise provided below, the project sponsor may elect to provide on-site public art of a value at least equivalent to the Public Art Fee.

(B) Option to Contribute 100% of Public Art Fee Amount to Public Artwork Trust Fund. Effective on the effective date of Ordinance No. 62-12 for a project that has not received its first construction document, and except as provided herein, the project sponsor may pay the Public Art Fee for deposit in the Public Artwork Trust Fund established in Section 10.100-29 of the San Francisco Administrative Code for the purposes set forth therein and in Section 429.5(b), including the creation, installation, exhibition, conservation, preservation, and restoration of works of public art and for capital improvements to nonprofit arts facilities ("In-Lieu Fee for Public Artwork Trust") within the C-3 District or within a half mile of the boundary of the C-3 District or, if the project is within another zoning district, within a half mile of the project boundary. As provided in Section 402, the project sponsor shall pay the fee to the Development Fee Collection Unit at DBI.

(C) Option to Expend a Portion of the Public Art Fee Amount to On-Site Public Artwork and the Remainder to the Public Artwork Trust Fund. Effective on the effective date of Ordinance No. 62-12 a project that has not received its first construction document may elect to expend a portion of the Public Art Fee for the acquisition of On-Site Public Artwork that shall be subject to the requirements of Subsection (d)(2)(A) above regarding On-Site Public Artwork, and deposit the remaining balance of the Public Art Fee into the Public Artwork Trust Fund. As provided in Section 402, the project sponsor shall pay the fee to the Development Fee Collection Unit at DBI.

to expend a portion of the Public Art Fee for the acquisition of On-Site Public Artwork that shall be subject to the requirements of Subsection (d)(2)(A) above regarding On-Site Public Artwork, and deposit the remaining balance of the Public Art Fee into the Public Artwork Trust Fund. As provided in Section 402, the project sponsor shall pay the fee to the Development Fee Collection Unit at DBI.

(e) Department's Notice to Development Fee Collection Unit of Sponsor's Choice. After the project sponsor has notified the Arts Commission and the Department of the choice to fulfill the requirements of Section 429.1 et seq. , as required by Section (d)(1) or (2) above, the Department shall immediately notify the Development Fee Collection Unit at DBI of the project sponsor's choice.

(f) Development Fee Collection Unit Notice to Arts Commission and 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 Arts Commission and to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 429.1 et seq. that will fulfill all or part of the requirements with an option other than the project sponsor's payment of an in-lieu fee to verify that the artwork was placed in the agreed upon location with the appropriate ADA compliant signage. If the Arts Commission or the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 429.1 et seq.

(g) Process for Revisions of Determination Requirement. In the event that the Department or the Planning Commission takes action affecting any development project subject to Section 429.1 et seq. , and such action is subsequently modified, superseded, vacated, or reversed by the 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. 62-12 , File No. 110853, App. 4/19/2012, Eff. 5/19/2012; amended by Ord. 56-13 , File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015) AMENDMENT HISTORY

Former divisions (d)(1)(a)-(c) redesignated as (d)(1)(A)-(C); former divisions (d)(2)(i)-(iii) redesignated as (d)(2)(A)-(C); Ord. 56-13 , Eff. 4/27/2013. Division (d)(2)(C) amended; Ord. 188-15 , Eff. 12/4/2015.