San Francisco County Municipal Code Ch. 56 Development Agreements

Sec. 56.1. Findings. Sec. 56.2. Purpose and Applicability. Sec. 56.3. Definitions. Sec. 56.4. Filing of Application; Forms; Initial Notice and Hearing. Sec. 56.5. Form of Agreement. Sec. 56.6. Signatories to the Development Agreement. Sec. 56.7. Contents of Development Agreement. Sec. 56.8. Notice. Sec. 56.9. Rules Governing Conduct of Hearing. Sec. 56.10. Development Agreement Negotiation Report and Documents. Sec. 56.11. Collateral Agreements. Sec. 56.12. Irregularity in Proceedings. Sec. 56.13. Determination by Commission. Sec. 56.14. Decision by Board of Supervisors. Sec. 56.15. Amendment and Termination of an Executed Development Agreement by Mutual Consent. Sec. 56.16. Recordation of Development Agreements Amendment or Termination. Sec. 56.17. Periodic Review. Sec. 56.18. Modification or Termination. Sec. 56.19. Limitation on Actions. Sec. 56.20. Fee.

The Board of Supervisors ("Board") concurs with the State Legislature in finding that: (a) The lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer, and discourage investment in and commitment to comprehensive planning and development of infrastructure and public facilities which would make maximum efficient utilization of resources at the least economic cost to the public. (b) Assurance to the applicant/developer for a development project that upon approval of the project, the applicant/developer may proceed with the project in accordance with specified policies, rules and regulations, and subject to conditions of approval, will strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs of development. (Added by Ord. 372-88, App. 8/10/88)

(a) The purpose of this Chapter is to strengthen the public planning process by encouraging private participation in the achievement of comprehensive planning goals and reducing the economic costs of development. A development agreement reduces the risks associated with development, thereby enhancing the City's ability to obtain public benefits beyond those achievable through existing ordinances and regulations. To accomplish this purpose the procedures, requirements and other provisions of this Chapter are necessary to promote orderly growth and development (such as, where applicable and appropriate, provision of housing, employment and small business opportunities to all segments of the community including low income persons, minorities and women), to ensure provision for adequate public services and facilities at the least economic cost to the public, and to ensure community participation in determining an equitable distribution of the benefits and costs associated with development. (b) Such agreements shall only be used for (1) affordable housing developments or (2) large multi-phase and/or mixed-use developments involving public improvements, services, or facilities installations, requiring several years to complete, as defined below in Section 56.3, or a housing development with a minimum of 1,000 units, as defined below in Section 56.3; or (3) rental housing developments with on-site affordable units, as defined below in Section 56.3. (Added by Ord. 372-88, App. 8/10/88; amended by Ord. 67-05, File No. 041748, App. 4/15/2005; Ord. 312, File No. 100046, App. 12/23/2010)

The following definitions shall apply for purposes of this Chapter: (a) "Affordable housing development" shall mean for purposes of Section 56.2(b)(1), any housing development which has a minimum of 30 percent of its units affordable to low income households, and a total of 60 percent of its units affordable to households, as defined by the U.S. Census, whose immediate household income does not exceed 120 percent of the median household income for the San Francisco Primary Metropolitan Statistical Area, with the remaining 40 percent of its units unrestricted as to affordability. For purposes of this definition of "affordable housing development," "low income" shall mean the income of households, as defined by the U.S. Census whose immediate household income does not exceed 80 percent of the median household income for the San Francisco Primary Metropolitan Statistical Area. "Median household income" for the San Francisco Primary Metropolitan Statistical Area shall be as determined by the U.S. Department of Housing and Urban Development and adjusted according to the determination of that Department and published from time to time. In the event that such income determinations are no longer published by the Department of Housing and Urban Development, median household income shall mean the median gross yearly income of a household in the City and County of San Francisco, adjusted for household size, as published periodically by the California Department of Housing and Community Development. Such affordable housing development may include neighborhood commercial facilities which are physically and financially an integral part of the affordable housing project and which will provide services to local residents. (b) "Applicant/Developer" shall mean a person or entity who has legal or equitable interest in the real property which is the subject of the proposed or executed development agreement for an "affordable housing development" or a "large multi-phase and/or mixed-use development," as those terms are defined herein, or such person's or entity's authorized agent or successor in interest; provided, however, that an entity which is subject to the requirements of City Planning Code Section 304.5 relating to institutional master plans does not qualify as an applicant for a development agreement. (c) "Collateral agreement" shall mean a written contract entered into by the applicant/developer and/or governmental agencies with other entities (including, but not limited to, community coalitions) for the purpose of having said entities provide for and implement social, economic, or environmental benefits or programs; provided, however, that such term does not include agreements between the applicant/developer or governmental agencies and (1) construction contractors and subcontractors, (2) construction managers, (3) material suppliers, and (4) architects, engineers, and lawyers for customary architectural, engineering or legal services.

(d) "Commission" shall mean the Planning Commission. (e) "Director" shall mean the Director of the Planning Department. (f) "Housing development with a minimum of 1,000 units" shall mean a proposed residential development project which: (1) is on a site which exceeds two and one-half acres in area, (2) includes two or more buildings to be constructed on the site, and (3) includes a proposal for constructing or participating in providing, either off-site or on-site, public improvements, facilities, or services beyond those achievable through existing ordinances and regulations. (g) "Large multi-phase and/or mixed-use development" shall mean a proposed development project which: (1) is on a site which exceeds five acres in area, (2) includes two or more buildings to be constructed sequentially on the site, and (3) includes a proposal for constructing or participating in providing, either off-site or on-site, public improvements, facilities, or services beyond those achievable through existing ordinances and regulations. (h) "Material modification" shall mean any proposed amendment or modification to either a proposed development agreement approved by the Commission, or a previously executed development agreement, which amendment or modification is otherwise required by the terms of the development agreement, which changes any provision thereof regarding the following: (1) duration of the agreement; (2) permitted uses of the subject property; (3) density or intensity of the permitted uses; (4) location, height or size of any structures, buildings, or major features; (5) reservation or dedication of land; (6) any conditions, terms, restrictions and requirements relating to subsequent discretionary actions as to design, improvements, construction standards and specifications; (7) any other condition or covenant relating to the financing or phasing of the development which substantially modifies the use of the property, the phasing of the development, or the consideration exchanged between the parties as recited in the proposed development agreement; (8) the type, number, affordability level, and/or tenure of any proposed affordable housing as well as any change as to performance of such public benefits, including but not limited to timing, phasing, method of performance or parties involved; or (9) any other terms or conditions of the development agreement if the development agreement provides that amendment of said specified term or condition would be a material modification. (i) "Minor modification" shall mean any amendment or modification to the development agreement which relates to any provision not deemed to be a "material modification." (j) "Rental housing developments with on-site affordable units" shall mean a proposed residential development project the project sponsor of which covenants to provide on-site units to satisfy the Inclusionary Affordable Housing Program, as set forth in Planning Code Sections 415—417, as an alternative to payment of the Affordable Housing Fee. (Added by Ord. 372-88, App. 8/10/88; amended by Ord. 67-05, File No. 041748, App. 4/15/2005; Ord. 312, File No. 100046, App. 12/23/2010)

(a) The Director may prescribe the form of the application for the preparation and implementation of development agreements. (b) The applicant must list on the application the anticipated public benefits which would exceed those required by existing ordinances and regulations. The public benefits ultimately provided by an approved development agreement may differ from those initially identified by the applicant/developer. The Director may require an applicant/developer to submit such additional information and supporting data as the Director considers necessary to process the application; provided, however, that the Director shall not require the applicant/developer to submit, as part of the application, special studies or analyses which the Director would customarily obtain through the environmental review process. (c) The Director shall endorse the application the date it is received. If the Director finds that the application is complete, the Director shall (1) accept the application for filing, (2) publish notice in the official newspaper of acceptance of said application, (3) make the application publicly available, and (4) schedule a public hearing before the Commission within 30 days following receipt of a completed application. At said public hearing, the Director shall make a recommendation with respect to the fee to be paid by the applicant/developer as set forth in Section 56.20(b). (Added by Ord. 372-88, App. 8/10/88)

A proposed development agreement, and any modifications or amendments thereto, must be approved as to form by the City Attorney prior to any action by the Director, Commission or Board of Supervisors. (Added by Ord. 372-88, App. 8/10/88)

(a) Applicant. Only an applicant/developer, as that term is defined in Section 56.3, may file an application to enter into a development agreement. (b) Governmental Agencies. In addition to the City and County of San Francisco and the applicant/developer, any federal, State or local governmental agency or body may be included as a party or signatory to any development agreement. (Added by Ord. 372-88, App. 8/10/88)

(a) Mandatory Contents. A development agreement, by its express terms or by reference to other documents, shall specify (1) the duration of the agreement, (2), the permitted uses of the property, (3) the density or intensity of use, (4) the maximum height and size of proposed buildings, (5) the provisions for reservation or dedication of land for public purposes, (6) for any project proposing housing, the number, type, affordability and tenure of such housing, (7) the public benefits which would exceed those required by existing ordinances and regulations, and (8) nondiscrimination and affirmative action provisions as provided in subsection (c) below. (b) Permitted Contents. The development agreement may (1) include conditions, terms, restrictions, and requirements for subsequent discretionary actions, (2) provide that construction shall be commenced within a specified time and that the project or any phase thereof be completed within a specified time, (3) include terms and conditions relating to applicant/developer and/or City financing or necessary public facilities and subsequent reimbursement by other private party beneficiaries, (4) require compliance with specified terms or conditions of any collateral agreements pursuant to Section 56.11, and (5) include any other terms or conditions deemed appropriate in light of the facts and circumstances. (c) Nondiscrimination/Affirmative Action Requirements. (1) Nondiscrimination Provisions of the Development Agreement. The development agreement shall include provisions obligating the applicant/developer not to discriminate on the grounds, or because of, race, color, creed, national origin, ancestry, age, sex, sexual orientation, disability or Acquired Immune Deficiency Syndrome or AIDS Related Condition (AIDS/ARC), against any employee of, or applicant for employment with the applicant/developer or against any bidder or contractor for public works or improvements, or for a franchise, concession or lease of property, or for goods or services or supplies to be purchased by applicant/developer. The development agreement shall require that a similar provision be included in all subordinate agreements let, awarded, negotiated or entered into by the applicant/developer for the purpose of implementing the development agreement. (2) Affirmative Action Program. The development agreement shall include a detailed affirmative action and employment and training program (including without limitation, programs relating to women, minority and locally-owned business enterprises), containing goals and timetables and a program for implementation of the affirmative action program. For example, programs such as the following may be included: (i) Apprenticeship where approved programs are functioning, and other on-the-job training for a nonapprenticeable occupation; (ii) Classroom preparation for the job when not apprenticeable; (iii) Preapprenticeship education and preparation; (iv) Upgrading training and opportunities; (v) The entry of qualified women and minority journeymen into the industry; and (vi) Encouraging the use of contractors, subcontractors and suppliers of all ethnic groups, and encouraging the full and equitable participation of minority and women business enterprises and local businesses (as defined in Section 12D of this Code and implementing regulations) in the provision of goods and services on a contractual basis. (3) Reporting and Monitoring. The development agreement shall specify a reporting and monitoring process to ensure compliance with the non-discrimination and affirmative action requirements. The reporting and monitoring process shall include, but not be limited to, requirements that: (i) A compliance monitor who is not an agent or employee of the applicant/developer be designated to report to the Director regarding the applicant/developer's compliance with the nondiscrimination and affirmative action requirements; (ii) The applicant/developer permit the compliance monitor or the Director or his designee reasonable access to pertinent employment and contracting records, and other pertinent data and records, as specified in the Development Agreement for the purpose of ascertaining compliance with the nondiscrimination and affirmative action provisions of the development agreement; (iii) The applicant/developer annually file a compliance report with the compliance monitor and the Director detailing performance pursuant to its affirmative action program, and the compliance monitor annually reports its findings to the Director; such reports shall be included in and subject to the periodic review procedure set forth in Sec. 56.17. (Added by Ord. 372-88, App. 8/10/88)

The Director shall give notice of intention to consider adoption, amendment, modification, or termination of a development agreement for each public hearing required to be held by the Commission under this Chapter. The Clerk of the Board of Supervisors shall give such notice for each public hearing required to be held by the Board of Supervisors. Such notices shall be in addition to any other notice as may be required by law for other actions to be considered concurrently with the development agreement. (a) Form of Notice. (1) The time and place of the hearing; (2) A general summary of the terms of the proposed development agreement or amendment to be considered, including a general description of the area affected, and the public benefits to be provided; and (3) Other information which the Director, or Clerk of the Board of Supervisors, considers necessary or desirable. (b) Time and Manner of Notice. (1) Publication and Mailing. Notice of hearing shall be provided in the same manner as that required in City Planning Code Section 306.3 for amendments to that Code which would reclassify land; where mailed notice is otherwise required by law for other actions to be considered concurrently with the development agreement, notice of a public hearing before the Commission on the development agreement shall be included on the next Commission calendar to be mailed following the date of publication of notice in the official newspaper. (2) Notice to Local Agencies. Notice of the hearing shall also be mailed at least 10 days prior to the hearing to any local public agency expected to provide water, transit, sewage, streets, schools, or other essential facilities or services to the project, whose ability to provide those facilities and services may be significantly affected by the development agreement. (c) Failure to Receive Notice. The failure of any person to receive notice required by law does not affect the authority of the City and County of San Francisco to enter into a development agreement. (Added by Ord. 372-88, App. 8/10/88; amended by Ord. 59-91, App. 2/27/91)

The Commission's public hearing on the proposed development agreement shall be conducted in accordance with the procedure for the conduct of reclassification hearings as provided in Subsections (b) and (c) of Section 306.4 of the City Planning Code. Such public hearing on the proposed development agreement shall be held prior to or concurrently with the public hearing for consideration of any other Commission action deemed necessary to the approval or implementation of the proposed development agreement, unless the Commission determines, after a duly noticed public hearing pursuant to Section 56.8, that proceeding in a different manner would further the public interest; provided, however, that any required action under the California Environmental Quality Act shall not be affected by this Section. (Added by Ord. 372-88, App. 8/10/88)

(a) Report. The Director shall prepare a report on development agreement negotiations between the applicant and the City and County of San Francisco (City), which report shall be distributed to the Commission and Board of Supervisors, and shall be available for public review 20 days prior to the first public hearing on the proposed development agreement. Said report shall include, for each negotiation session between the applicant and the City: (1) an attendance list; (2) a summary of the topics discussed; and (3) a notation as to any terms and conditions of the development agreement agreed upon between the applicant and the City. (b) Documents. The Director shall (1) maintain a file containing documents exchanged between the applicant/developer and the City's executive offices and departments; and (2) endeavor to obtain copies and maintain a list of all correspondence which executive offices and departments received from and sent to the public relating to the development agreement. The Director shall make said documents and the correspondence list available for public review 20 days prior to the first public hearing on the proposed development agreement. (c) Update of Report, Documents, and Correspondence List. The Director shall update the negotiation session report and the correspondence list, and continue to maintain a file of documents exchanged between the applicant/developer and the City until a development agreement is finally approved. The Director shall make the updated report, correspondence list, and documents available to

the public at least five working days before each public hearing on the proposed development agreement. (d) Remedies. No action, inaction or recommendation regarding the proposed development agreement shall be held void or invalid or be set aside by a court by reason of any error, irregularity, informality, neglect or omission ("error") which may occur with respect to City compliance with this Section 56.10. This section is not intended to affect rights and remedies with respect to public records otherwise provided by law. (Added by Ord. 372-88, App. 8/10/88)

(a) Filing. In order to qualify for consideration under the provisions of this section, the party to the collateral agreement seeking such consideration must: (1) submit a copy of the executed collateral agreement to the Director, (2) identify the specific terms and conditions of said collateral agreement which said party believes are necessary to achieve the public purposes sought to be achieved by the City and County through the development agreement process, and (3) provide contemporaneous notice to any other party or parties to the collateral agreement or the development agreement that a request for consideration pursuant to this section was filed. The Director shall forward copies of all collateral agreements received to the City Attorney's Office for review. (b) Recommendation of the Director Prior to the First Public Hearing on the Proposed Development Agreement. (1) The Director is obligated to consider and make a recommendation only as to those collateral agreements which satisfy the provisions of Section 56.11(a) above, and which are received by the Director within seven days after the date of publication of notice of the first hearing on the proposed development agreement. The Director shall consider those collateral agreements which are on the list provided pursuant to Section 56.11(d) below. (2) With respect to collateral agreements received pursuant to the provisions set forth above, the Director shall prepare a report to the Commission on said collateral agreements. If the Director finds that applicant compliance with certain specified terms or conditions of said collateral agreements is necessary to achieve the public purposes sought by the City through the development agreement process, then the Director shall recommend that such terms or conditions be incorporated into the proposed development agreement. If the Director recommends incorporation into the development agreement of any terms or conditions of any collateral agreements, then the Director's report shall also note whether the other party or parties to the collateral agreement or proposed development agreement objects, and the basis for that objection. (3) The provisions of this section are not intended to limit the power of the Commission or the Board to amend the proposed development agreement to incorporate terms or conditions of collateral agreements. (c) Annual Recommendation of the Director. After execution of a development agreement, (1) The Director shall consider and make a recommendation as to those collateral agreements which satisfy the provisions of Section 56.11(a) above, and which are received 30 days prior to the date scheduled for periodic review, as determined pursuant to Section 56.17(a). The Director shall consider those collateral agreements which are on the list provided pursuant to Section 56.11 (d) below. (2) With respect to collateral agreements received pursuant to the provisions set forth above, the Director shall prepare a report to the Commission on said collateral agreements. The Director shall also consult with the applicant/developer concerning said collateral agreements. If the Director finds that applicant/developer compliance with certain specified terms or conditions of said collateral agreements would substantially further attainment of the public purposes which were recited as inducement for entering into the development agreement, then the Director shall recommend that the Commission propose an amendment to the development agreement to incorporate said terms and conditions. If the Director recommends proposal of an amendment to incorporate into the development agreement specified terms or conditions of any collateral agreements, then the Director's report shall also note whether the other party or parties to the collateral agreement or development agreement objects, and the basis for that objection. (d) Applicant/Developer Disclosure of Collateral Agreements. (1) At least 21 days prior to the first hearing on the proposed development agreement, the applicant/developer shall provide the Director, for the Director's consideration, a list of all collateral agreements as defined in Section 56.3(c) that have been entered into by the applicant/developer. (2) At least 30 days prior to the date scheduled for periodic review pursuant to Section 56.17(a), the applicant/developer shall provide the Director, for the Director's consideration, an update to the list prepared pursuant to Subsection (d)(1) above, or any previous list prepared pursuant to this Subsection (d)(2), as applicable, identifying all such collateral agreements entered into subsequent to the date of the first list, or subsequent updates, as appropriate. (Added by Ord. 372-88, App. 8/10/88)

No action, inaction or recommendation regarding the proposed development agreement or any proposed amendment shall be held void or invalid or be set aside by a court by reason of any error, irregularity, informality, neglect or omission ("error") as to any matter pertaining to the application, notice, finding, record, hearing, report, summary, recommendation, or any matters of procedure whatever unless after an examination of the entire record, the court is of the opinion that the error complained of was prejudicial and that by reason of the error the complaining party sustained and suffered substantial injury, and that a different result would have been probable if the error had not occurred or existed. There is no presumption that error is prejudicial or that injury resulted if error is shown. (Added by Ord. 372-88, App. 8/10/88)

(a) Public Hearing. The Commission shall hold a public hearing to consider and act on a proposed development agreement after providing notice as required under Section 56.8. (b) Recommendations to Board of Supervisors. Following the public hearing, the Commission may approve or disapprove the proposed development agreement, or may modify the proposed development agreement as it determines appropriate. The Commission shall make its final recommendation to the Board of Supervisors which shall include the Commission's determination of whether the development agreement proposed is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable area or specific plan, and the priority policies enumerated in City Planning Code Section 101.1. The decision of the Commission shall be rendered within 90 days from the date of conclusion of the hearing; failure of the Commission to act within the prescribed time shall be deemed to constitute disapproval. (Added by Ord. 372-88, App. 8/10/88)

(a) Action by Board of Supervisors. The Board of Supervisors shall hold a public hearing on the proposed development agreement approved by the Commission. After the Board of Supervisors completes its public hearing, it may approve or disapprove the proposed development agreement recommended by the Commission. If the Commission disapproves the proposed development agreement, that decision shall be final unless the applicant/developer appeals the Commission's determination to the Board of Supervisors. The applicant/developer may appeal by filing a letter with the Clerk of the Board of Supervisors within 10 days following the Com-mission's disapproval of the proposed development agreement. The procedures for the Board's hearing and decision shall be the same as those set forth in City Planning Code Sections 308.1(c) and 308.1(d) with respect to an appeal of a Commission disapproval of a City Planning Code amendment initiated by application of one or more interested property owners. (b) Material Modification of the Commission's Recommended Development Agreement. The Board of Supervisors may adopt a motion proposing a material modification to a development agreement recommended by the Commission, as defined in Section 56.3 herein. In such event, the material modification must be referred back to the Commission for report and recommendation pursuant to the provisions of Subdivision (c) below. However, if the Commission previously considered and specifically rejected the proposed material modification, then such modification need not be referred back to the Commission. The Board of Supervisors may adopt any minor modification to the proposed development agreement recommended by the Commission which it determines appropriate without referring the proposal back to the Commission. (c) Consideration of Material Modification By the Commission. The Commission shall hold a public hearing and render a decision on any proposed material modification forwarded to the Commission by motion of the Board within 90 days from the date of referral of the proposed modification by the Board to the Commission; provided, however, if the Commission has not acted upon and returned the proposed material modification within such 90 day period, the proposal shall be deemed disapproved by the Commission unless the Board, by resolution, extends the prescribed time within which the Commission is to render its decision. (d) Effect of Commission Action on Proposed Material Modification. The Board of Supervisors shall hold public hearing to consider the Commission's action on the proposed material modification. If the Commission approves the Board's proposed material modification, the Board may adopt the modification to the agreement by majority vote. If the Commission disapproves the Board's proposed material modification, or has previously specifically rejected the proposed material modification, then the Board may adopt the material modification to the development agreement by a majority vote, unless said modification would reclassify property or would establish, abolish, or modify a setback line, in which case the modification may be adopted by the Board only by a vote of not less than of all of the members of said Board. (e) Consistency With General and Specific Plans. The Board of Supervisors may not approve the development agreement unless it receives the Commission's determination that the agreement is consistent with the Master Plan, any applicable area or specific plan and the Priority Policies enumerated in City Planning Section 101.1. (f) Approval of Development Agreement. If the Board of Supervisors approves the development agreement, it shall do so by the adoption of an ordinance. The Board of Supervisors may not vote on the development agreement ordinance on second reading unless the

final version of the development agreement ordinance is available for public review at least two working days prior to the second reading. The development agreement shall take effect upon its execution by all parties following the effective date of the ordinance. (Added by Ord. 372-88, App. 8/10/88; amended by Ord. 59-91, App. 2/27/91)

MUTUAL CONSENT. (a) The development agreement may further define the extent to which changes in the project will require an amendment to the development agreement. (b) Either the applicant/developer or the City and County may propose an amendment to, or cancellation in whole or in part of, any development agreement. Any amendment or cancellation shall be by mutual consent of the parties, except as otherwise provided in the development agreement or in Section 56.16. (c) The procedure for proposing and adopting an amendment which constitutes (1) a material modification, (2) the termination in whole or in part of the development agreement, or (3) a minor modification which the Commission or Board has requested to review pursuant to subsection (d) below, shall be the same as the procedure for entering into an agreement in the first instance, including, but not limited to, the procedures described in Section 56.4, above. (d) Any proposed amendment or modification to the development agreement which would constitute a minor modification shall not require a noticed public hearing before the parties may execute an amendment to the agreement. The Director may commit to a minor modification on behalf of the City if the following conditions are satisfied: (1) The Director has reached agreement with the other party or parties to the development agreement regarding the modification; (2) The Director has: (i) notified the Commission and the Board; (ii) caused notice of the amendment to be published in the official newspaper and included on the Commission calendar; (iii) caused notice to be mailed to the parties to a collateral agreement if specific terms or conditions of said collateral agreement were incorporated into the development agreement and said terms or conditions would be modified by said minor modification; and (iv) caused notice to be mailed to persons who request to be so notified; and (3) No member of either the Board or Commission has requested an opportunity to review and consider the minor modification within 14 days following receipt of the Director's notice. Upon expiration of the 14-day period, in the event that neither entity requests a hearing, the decision of the Director shall be final. (Added by Ord. 372-88, App. 8/10/88; amended by Ord. 59-91, App. 2/27/91)

(a) Within 10 days after the execution of the development agreement, or any amendments thereto, the Clerk of the Board of Supervisors shall have the agreement recorded with the County Recorder. (b) If the parties to the agreement or their successors in interest amend or terminate the agreement as provided herein, or if the Board of Supervisors terminates or modifies the agreement as provided herein for failure of the applicant/developer to comply in good faith with the terms or conditions of the agreement, the Clerk of the Board of Supervisors shall have notice of such action recorded with the County Recorder. (Added by Ord. 372-88, App. 8/10/88; amended by Ord. 59-91, App. 2/27/91)

(a) Time for and Initiation of Review. The Director shall conduct a review in order to ascertain whether the applicant/developer has in good faith complied with the development agreement. The review process shall commence at the beginning of the second week of January following final adoption of a development agreement, and at the same time each year thereafter for as long as the agreement is in effect. The applicant/developer shall provide the Director with such information as is necessary for purposes of the compliance review. Prior to commencing review, the Director shall provide written notification to any party to a collateral agreement which the Director is aware of pursuant to Sections 56.11(a) and (d), above. Said notice shall summarize the periodic review process, advising recipients of the opportunity to provide information regarding compliance with the development agreement. Upon request, the Director shall make reasonable attempts to consult with any party to a collateral agreement if specified terms and conditions of said agreement have been incorporated into the development agreement. Any report submitted to the Director by any party to a collateral agreement, if the terms or

conditions of said collateral agreement have been incorporated into the development agreement, shall be transmitted to the Commission and/or Board of Supervisors. (b) Finding of Compliance by Director. If the Director finds on the basis of substantial evidence, that the applicant/developer has complied in good faith with the terms and conditions of the agreement, the Director shall notify the Commission and the Board of Supervisors of such determination, and shall at the same time cause notice of the determination to be published in the official newspaper and included on the Commission calendar. If no member of the Commission or the Board of Supervisors requests a public hearing to review the Director's determination within 14 days of receipt of the Director's notice, the Director's determination shall be final. In such event, the Director shall issue a certificate of compliance, which shall be in recordable form and may be recorded by the developer in the official records. The issuance of a certificate of compliance by the Director shall conclude the review for the applicable period. (c) Public Hearing Required. If the Director determines on the basis of substantial evidence that the applicant/developer has not complied in good faith with the terms and conditions of the development agreement, or otherwise determines that the public interest would be served by further review, or if a member of the Commission or Board of Supervisors requests further review pursuant to Subsection (b) above, the Director shall make a report to the Commission which shall conduct a public hearing on the matter. Any such public hearing must be held no sooner than 30 days, and no later than 60 days, after the Commission has received the Director's report. The Director shall provide to the applicant/developer (1) written notice of the public hearing scheduled before the Commission at least 30 days prior to the date of the hearing, and (2) a copy of the Director's report to the Commission on the date the report is issued. (d) Findings Upon Public Hearing. At the public hearing, the applicant/developer must demonstrate good faith compliance with the terms of the development agreement. The Commission shall determine upon the basis of substantial evidence whether the applicant/developer has complied in good faith with the terms of the development agreement. (e) Finding of Compliance by Commission. If the Commission, after a hearing, determines on the basis of substantial evidence that the applicant/developer has complied in good faith with the terms and conditions of the agreement during the period under review, the Commission shall instruct the Director to issue a certificate of compliance, which shall be in recordable form, may be recorded by the applicant/developer in the official records, and which shall conclude the review for that period; provided that the certificate shall not be issued until after the time has run for the Board to review the determination. Such determination shall be reported to the Board of Supervisors. Notice of such determination shall be transmitted to the Clerk of the Board of Supervisors within three days following the determination. The Board may adopt a motion by majority vote to review the decision of the Planning Commission within 10 days of the date after the transmittal. A public hearing shall be held within 30 days after the date that the motion was adopted by the Board. The Board shall review all evidence and testimony presented to the Planning Commission, as well as any new evidence and testimony presented at or before the public hearing. If the Board votes to overrule the determination of the Planning Commission, and refuses to approve issuance of a certificate of compliance, the Board shall adopt written findings in support of its determination within 10 days following the date of such determination. If the Board agrees with the determination of the Planning Commission, the Board shall notify the Planning Director to issue the certificate of compliance. (f) Finding of Failure of Compliance. If the Commission after a public hearing determines on the basis of substantial evidence that the applicant/developer has not complied in good faith with the terms and conditions of the agreement during the period under review, the Commission shall either (1) extend the time for compliance upon a showing of good cause; or (2) shall initiate proceedings to modify or terminate the agreement pursuant to Section 56.18. (Added by Ord. 372-88, App. 8/10/88; amended by Ord. 59-91, App. 2/27/91; Ord. 287-96, App. 7/12/96)

(a) If the Commission, upon a finding pursuant to Subdivision (f) of Section 56.17, determines that modification of the agreement is appropriate or that the agreement should be terminated, the Commission shall notify the applicant/developer in writing 30 days prior to any public hearing by the Board of Supervisors on the Commission's recommendations. (b) Modification or Termination. If the Commission, upon a finding pursuant to Subdivision (f) of Section 56.17, approves and recommends a modification or termination of the agreement, the Board of Supervisors shall hold a public hearing to consider and determine whether to adopt the Commission recommendation. The procedures governing Board action shall be the same as those applicable to the initial adoption of a development agreement; provided, however, that consent of the applicant/developer is not required for termination under this section. (Added by Ord. 372-88, App. 8/10/88)

(a) Any decision of the Board pursuant to this Chapter shall be final. Any court action or proceeding to attack, review, set aside, void or annul any final decision or determination by the Board shall be commenced within 90 days after (1) the date such decision or determination is final, or (2) when acting by ordinance, after the ordinance is signed by the Mayor, or is otherwise finally approved.

(b) Any court action or proceeding to attack, review, set aside, void or annul any final decision or determination by (1) the Director pursuant to Section 56.15(d)(iii), or (2) the Commission pursuant to Section 56.17(e) shall be commenced within 90 days after said decision is final. (Added by Ord. 372-88, App. 8/10/88)

In order to defray the cost to the City and County of San Francisco of preparing, adopting, and amending a development agreement, a fee shall be charged and collected in accord with the procedures described below: (a) Cost Estimate and Application Report. The reasonable costs to the various departments of the City and County of San Francisco including, but not limited to, the Planning Department, the Department of Public Works, the Mayor's Office of Housing, the Real Estate Department and the City Attorney's Office for staff time, necessary consultant services and associated costs of materials and administration will vary according to the size and complexity of the project. Accordingly, upon receipt of an application for a development agreement, the Planning Department, after consultation with the applicant/developer, any other parties identified in the application as parties to the proposed development agreement, and the affected City and County departments, shall prepare an estimated budget of the reasonable costs to be incurred by the City and County (1) in the preparation and adoption of the proposed development agreement, and (2) in the preparation of related documents where the costs incurred are not fully funded through other City fees or funds; provided, however, that if the projected time schedule exceeds one year, then the estimated budget shall be prepared for the initial 12- month period only, and the estimated budgets for any subsequent 12-month time periods shall be prepared prior to the end of the prior 12-month period. The Director shall also prepare a report for the Commission and Board describing the application, the anticipated public benefits listed in the application pursuant to Section 56.4(b), and the projected time schedule for development agreement negotiations. (b) Commission and Board of Supervisors Consideration. The Commission shall recommend to the Board of Supervisors that a fee be imposed of a specified amount after reviewing the cost estimate prepared by the Director and conducting a public hearing pursuant to Section 56.4(c). If the Board of Supervisors approves the fee amount by resolution, the fee shall be paid within 30 days after the effective date of the resolution. The fee shall be paid in a single installment or, at the discretion of the Director, in four equal installments, payable periodically over the estimated time frame for which the estimated budget has been prepared, with the first installment due within 30 days after the effective date of the fee resolution. (c) Deposit. The applicant/developer may prepay up to 50 percent of the amount of the fee (as calculated in the Director's estimated budget) into a Development Agreement Fund established for that purpose to enable the affected City Departments and agencies to begin work on the application. Such funds shall be deemed appropriated for the purposes identified in the cost estimate, and shall be credited against the final fee amount specified in the fee resolution if such resolution is ultimately adopted by the Board of Supervisors. If the Board fails to adopt such fee resolution, then the Controller shall return any prepaid funds remaining unexpended or unobligated to the applicant/developer. If the Board approves a fee amount which is less than the amount which the applicant/developer prepaid, then the Controller shall return that portion of the difference between the fee amount and the prepaid funds which remains unexpended or unobligated to the applicant/developer. (d) Development Agreement Fund. There is hereby created a Development Agreement Fund wherein all funds received under the provisions of this section shall be deposited. All expenditures from the Fund shall be for purposes of reviewing the application for, or proposed material modification to, a development agreement and preparing the documents necessary to the approval of the development agreement, or a material modification thereto. Up to 50 percent of the annual cost estimate is hereby deemed appropriated for such purposes if the applicant/developer chooses to prepay such amount pursuant to Subsection (c) above. All other funds are subject to the budget and fiscal powers of the Board of Supervisors. Interest earned on such amounts deposited in said Fund shall accrue to the Fund for the purposes set forth herein. Upon the execution of a development agreement, or withdrawal by an applicant/developer of its application, any unexpended or unobligated portion of the fee paid by the applicant/developer shall be returned to the applicant/developer. (e) Waiver for Affordable Housing. The Board of Supervisors may, by resolution, waive all or a portion of the fee required pursuant to this section for affordable housing developments, as that term is defined in Section 56.3, only if it finds that such waiver is necessary to achieve such affordable housing development. (f) Other Fees. Payment of fees charged under this section does not waive the fee requirements of other ordinances. The fee provisions set forth herein are not intended to address fees or funding for parties to collateral agreements. (g) Not Applicable to Rental Housing With On-Site Affordable Housing Units. The hearings and fee required pursuant to this section shall not apply to development agreements entered into with project sponsors of rental housing developments with on-site affordable housing units as that term is defined in Section 56.3(j) if the provision of on-site affordable housing units is the primary purpose of the Development Agreement. (Added by Ord. 372-88, App. 8/10/88; Ord. 312, File No. 100046, App. 12/23/2010) CHAPTER 57:

FILM COMMISSION Sec. 57.1. Definitions. Sec. 57.2. Establishment of Commission; Appointment of Commissioners; Qualifications; Terms of Office; Compensation. Sec. 57.3. Powers and Duties. Sec. 57.4. Authority and Duties of Executive Director. Sec. 57.5. Authorization to Enter Into Use Contracts and Coordinate City Departments Regarding Film Companies; Consent of Relevant Departments; Cost Recovery; Sidewalk Closures and Postings. Sec. 57.6. Requirements for Film Companies. Sec. 57.7. Exceptions. Sec. 57.8. Film Rebate Program. Sec. 57.9. Administrative Penalties. Sec. 57.10. Authorization to Enter into Licensing Agreements for Film Commission Intellectual Property.

For purposes of this Chapter 57, the following terms shall have the following meanings: “City” means the City and County of San Francisco. “Commission” means the Film Commission of the City and County of San Francisco. “Film” means feature motion pictures, video tapes, television programs, commercials, still photography, documentaries, travelogues, music videos, web videos, web series, and other visual art forms; provided however, that “film” shall not mean films or video tapes for private-family use or films by any news service or similar entity engaged in on-the-spot print media, publishing, or broadcasting, of breaking news events 1 on-going coverage of such events as they occur. “Film company” means any individual, corporation, firm, partnership, or other organization however organized engaged in film production. “Film production” means the activity of making a film for commercial or noncommercial property where that activity (1) requires the use of City employees or equipment or (2) interferes with the ordinary use, safety, and enjoyment of public right-of-ways or other property under the jurisdiction of the City. “Season” means the initial exhibition of a set of interrelated new episodes within a 12-month period. (Added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 331-00, File No. 001967, App. 12/28/2000; Ord. 70-06, File No. 060065, App. 4/20/2006; Ord. 244-18, File No. 180518, App. 10/26/2018, Eff. 11/26/2018; Ord. 169-23, File No. 230651, App. 7/28/2023, Eff. 8/28/2023) CODIFICATION NOTE

1. So in Ord. 169-23.

QUALIFICATIONS; TERMS OF OFFICE; COMPENSATION. (a) Establishment of Commission. A Film Commission for the City (referred to hereafter in this Chapter as “Commission”) is hereby created consisting of 11 members. Notwithstanding the name of the Film Commission, the Film Commission shall be an Advisory Body as defined in Section 5.1-1 of this Code. (b) Appointment of Commissioners; Qualifications. The members of the Commission shall be appointed by and serve at the pleasure of the Mayor. At least six members of the Commission shall be residents of the City and County of San Francisco. The membership of the Commission may include members who have experience in areas such as: Performing and Creative Arts, Production, Film or Sound Technology, Services and Facilities, Education, Presentation and Producing, and Interactive Multimedia. The President of the Arts Commission shall be invited to serve as a nonvoting, ex-officio member of the Film Commission. (c) Term of Office. Commissioners shall be appointed for a term of office of four years. Notwithstanding Section 5.1-4 of this Code,

there shall be no limit on the number of terms a commissioner may serve. (d) Compensation. Members of the Commission shall not be compensated for their service as members of the Commission. On a majority vote of the Commission, Commissioners may be reimbursed for expenses incurred resulting from their authorized activities on behalf of the Commission. (e) Executive Director. The Executive Director shall act as the department head and appointing officer of Film Commission (Film SF) employees pursuant to Charter Section 4.126..1 (Added by Ord. 425-89, App. 11/21/89; amended by Ord. 358-91, App. 10/2/91; Ord. 331-00, File No. 001967, App. 12/28/2000; Ord. 169-23, File No. 230651, App. 7/28/2023, Eff. 8/28/2023; Ord. 99-26, File No. 260217, App. 5/29/2026, Eff. 6/29/2026) CODIFICATION NOTE

1. So in Ord. 99-26.

The Commission shall develop, recognize, and promote film activities in the City. The members shall work together to explore and promote long-term goals for film-making as a major emphasis of the City's economic and cultural base, and encourage the recognition of film arts as an art form with widespread economic components. The powers of the Commission shall include, but not be limited to: (a) Stimulating community awareness of the film art forms; (b) Promoting long-range investment in projects originating in the San Francisco area, such as scripts, film proposals, treatments, and shorter works; (c) Promoting awareness of film training and economic opportunities in the schools; (d) Promoting the San Francisco Bay Area as film destination; (e) Accepting gifts, devises and bequests as provided in Administrative Code Section 10.100-305; (f) Maintaining liaison with other specific interest groups, councils, organizations, and institutions related to the film industry, and the maintenance of liaison with the Art Commission from the perspective of film arts; (g) Providing perspective for both the Mayor and the Board of Supervisors with respect to long-range promotion, development and planning for a significant film arts base in San Francisco; (h) Adopting rules and regulations to implement and further the purposes of this Chapter. (Added by Ord. 425-89, App. 11/21/89; amended by Ord. 358-91, App. 10/2/91; Ord. 331-00, File No. 001967, App. 12/28/2000; Ord. 169-23, File No. 230651, App. 7/28/2023, Eff. 8/28/2023)

In addition to any other authority vested in or duty charged to the Executive Director, the Executive Director shall serve as the sole liaison between film companies and the various City departments. In performing the duties of liaison, the Executive Director shall assist film companies in locating suitable locations and shall coordinate the efforts of the various City departments in connection with film production utilizing City property or employees. The Executive Director shall also be responsible for coordinating any film permits required by the City for film productions. The Executive Director may approve the use of the Film SF logo by third parties for marketing and promotion of Film Commission programs and activities. (Formerly Sec. 57.8; added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; amended and renumbered by Ord. 331-00, File No. 001967, App. 12/28/2000; Ord. 70-06, File No. 060065, App. 4/20/2006; Ord. 169-23, File No. 230651, App. 7/28/2023, Eff. 8/28/2023) Editor's Note: Former Sec. 57.4 was repealed by Ord. 331-00.

DEPARTMENTS REGARDING FILM COMPANIES; CONSENT OF RELEVANT DEPARTMENTS; COST RECOVERY; SIDEWALK CLOSURE AND POSTING. (a) Use Contracts; Deposit of Funds. The Executive Director may enter into use contracts with organizations seeking to engage in

film production. The Executive Director shall be the sole City representative authorized to negotiate use contracts. Such contracts shall, at a minimum, provide for the full recovery of costs incurred by the various City departments in providing the use of City employees, equipment, and rental facilities or rental properties. Funds to reimburse City departments for costs incurred by those departments for the deployment of personnel or equipment or use of rental facilities or rental properties shall be paid directly to those departments for deposit subject to the budget and fiscal provisions of the Charter. (b) Consent of Departments or Mayor. Where film production is to take place on property under the jurisdiction of City departments, the Executive Director's permission to use such property is subject to the consent of the department head or his or her designee or the Mayor or Mayor's designee. (c) Schedule of Costs. In addition to the reimbursement of City departments for the costs incurred by those departments in deploying personnel or equipment, the Film Commission may, consistent with Charter Section 2.109, charge daily use fees to film companies seeking to engage in film production. The use fees are as follows: (1) Still photography: $200 a day. (2) A commercial, corporate media, industrial media, video, or web video: $300 a day. (3) A television series (each episode), web series (each episode), movie, pilot, short subject, or documentary: (A) For a production with a budget of less than $100,000: $100 a day. (B) For a production with a budget of $100,000 to less than $500,000: $300 a day. (C) For a production with a budget of $500,000 or greater: $500 a day. Qualifying student productions, and productions created by or for entities that are tax-exempt under sections 501(c)(3), 501(c)4,1 or 501(c)(6) of the Internal Revenue Code are exempt from the above-listed use fees in accordance with the Film Commission’s guidelines..1 The revenue generated by such use fees shall be deposited in the San Francisco Film Production Fund. (d) Sidewalk Closures and Sign-Posting. The Film Commission may require that film companies use City personnel or City- approved vendors to post notice of the closure of City streets and sidewalks for film production, and may establish minimum sign- posting requirements. Notwithstanding anything to the contrary in Section 724 of the Public Works Code, the Executive Director may authorize the temporary occupancy of public sidewalks for film production, with the consent of the Department of Public Works, subject to all requirements and conditions of the Department of Public Works and the San Francisco Municipal Transportation Agency. Street closures for film production shall be governed by applicable provisions of the Transportation Code. (Added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; Ord. 287-96, App. 7/12/96; Ord. 331-00, File No. 001967, App. 12/28/2000; Ord. 205-11, File No. 110900, App. 10/11/2011, Eff. 11/10/2011; Ord. 268-13 , File No. 130937, App. 11/27/2013, Eff. 12/27/2013; Ord. 211-14 , File No. 140854, App. 10/15/2014, Eff. 11/14/2014; Ord. 45-17, File No. 161316, App. 2/24/2017, Eff. 3/26/2017; Ord. 244-18, File No. 180518, App. 10/26/2018, Eff. 11/26/2018; Ord. 169-23, File No. 230651, App. 7/28/2023, Eff. 8/28/2023; Ord. 9-26, File No. 251225, App. 2/11/2026, Eff. 3/14/2026) CODIFICATION NOTE

1. So in Ord. 9-26.

(a) Use Contracts. All film companies seeking to engage in film productions shall enter into use contracts with the Executive Director. (b) Insurance and Indemnification. As a condition of engaging in film productions, concurrently with entering into a use contract with the City for the utilization of City property or employees, film companies shall file with the Executive Director documentation of insurance and indemnification holding the City and County harmless from any liability. The amounts of such insurance and indemnification, and the suitability of the insuring entity, shall be determined by the City's Risk Manager in coordination with the Executive Director and other City departments. (c) Film Commission Notification Guidelines. The Film Commission shall maintain film production notification guidelines concerning film production activities, including but not limited to activities that may cause parking or traffic obstructions (“Notification Guidelines”), and may amend such Notification Guidelines from time to time. (Added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; Ord. 331-00, File No. 001967, App. 12/28/2000 ; Ord. 211-14 , File No. 140854, App. 10/15/2014, Eff. 11/14/2014; Ord. 9-26, File No. 251225, App. 2/11/2026, Eff. 3/14/2026)

Sections 57.5 and 57.6 of this Chapter shall not apply to film production occurring in the buildings or on the grounds of the San Francisco War Memorial Performing Arts Center, the Fine Arts Museums, the Asian Art Museum, the San Francisco Convention

Facilities, the San Francisco Port Commission, the San Francisco Recreation and Parks Commission, or where inconsistent with State law, the Charter or contractual agreements. (Formerly Sec. 57.11; added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; amended and renumbered by Ord. 331-00, File No. 001967, App. 12/28/2000; Ord. 70-06, File No. 060065, App. 4/20/2006) (Former Sec. 57.7 repealed by Ord. 331-00)

(a) Purpose. The purpose of the Film Rebate Program is to increase the number of qualified film productions being made in San Francisco, increase the number of City residents employed in the filmmaking industry, and encourage the resulting economic benefits to increased filmmaking in San Francisco. (b) Definitions. As used in this Section 57.8, the following terms shall have the following meanings: “City” means City and County of San Francisco. “Executive Director” means the Executive Director of the Film Commission or the Executive Director’s designee. “Pre-Production” means the process of customary preparation for physical production which begins after a qualified film production has received a firm agreement of financial commitment. In this context, “customary preparation” includes, but is not limited to, activities such as hiring key crew members, scouting for locations, building sets, casting, and establishment of a dedicated production office. "Principal photography"means the time period and phase of film production during which the main photography occurs, as distinguished from pre-production and post-production in accordance with the Film Commission’s guidelines. “Post-Production” means the final activities in a qualified film production’s creation including, but not limited to, editing, foley recording, ADR, scoring, sound editing, negative cutting, color correction, and sound mixing. “Qualified film production” means: (1) a feature-length film, documentary feature film, docudrama feature film, television film, television pilot, “reality” program, or each episode of a television series or web series, regardless of the medium used to create or convey it; (2) a film production produced by a film company that has entered into a use contract with the City and has a minimum of five principal photography days in the City; (3) a film production produced by a film company that expends at least $500,000 in the City, provided that the film company provides receipts, invoices, payroll records, time records, and other documentation of expenditures during pre-production, principal photography, film production, and post-production. The Film Commission or its representatives may audit such documentation. or 2 (4) a film production produced by a film company with a production office located in the City, unless the film company determines that a physical production office in the City is not needed for the film production. Notwithstanding the foregoing, “Qualified film production” does not mean: (1) a news or current affairs program, interview or talk program, instructional film or program, film or program consisting primarily of stock footage, sporting event or sporting program, game show, award ceremony, film or program intended primarily for industrial, corporate or institutional end-users, fundraising film or program, commercials, or music videos; or (2) a production for which records are required under Title 18 United States Code Section 2257, to be maintained with respect to any performer in such production. “Qualified low-budget film production” means a qualified film production that has a total budget of no more than $3,000,000 2 $250,000 in the City, provided that the film company provides receipts, invoices, payroll records, time records, and other documentation of expenditures during pre-production, principal photography, film production, and post-production. The Film Commission or its representatives may audit such documentation. “Qualified low-budget film production” shall not include: (1) a news or current affairs program, interview or talk program, instructional film or program, film or program consisting primarily of stock footage, sporting event or sporting program, game show, award ceremony, film or program intended primarily for industrial, corporate, or institutional end-users, fundraising film or program, commercials, or music videos; or (2) a production for which records are required under Title 18 United States Code Section 2257, to be maintained with respect to any performer in such production. “Qualified production cost” means the following expenses of a qualified low-budget film production or a qualified film production if in accordance with the Film Commission’s guidelines: (1) Any moneys paid to the City, or any of its constituent departments, from the film company or under a revenue sharing agreement, for the use of City property, equipment, or employees; (2) Any moneys paid to the City, or any of its constituent departments, for the use of property leased by the City, or paid to a

third-party property owner for the use of property for film-related activities including, but not limited to, filming, editing, film production office space, and stage space uses located in the City, if no suitable alternative City property is available; (3) Any daily use fees charged by the Film Commission, pursuant to Section 57.5 of the Administrative Code, to engage in film production in the City; (4) Police services as described in Chapter 10B of this Administrative Code; (5) The hourly pay or salaries of City residents during pre-production through post-production capped at $100,000 per individual per project; or (6) Production-related items, goods, or services purchased or rented from a business with a location in the City. (c) Rebate Program. (1) Allowance of Rebate. A qualified low-budget film production or qualified film production that pays qualified production costs shall be entitled to a rebate, to be calculated as provided herein, provided that the qualified production provides film skills and training to San Francisco residents pursuant to Film Commission guidelines and has entered into a first source hiring agreement with the City that demonstrates good faith efforts to hire economically disadvantaged individuals referred by the San Francisco Workforce Development System to work for the qualified production. Good faith efforts shall include, at a minimum, consulting with the First Source Hiring Administration (“FSHA”) for the purpose of preparing a list of positions for which individuals referred by the City might qualify, providing that list to the FSHA at least two weeks prior to the first day of shooting, and documenting efforts to contact and interview job candidates referred by the City to fill the positions listed. The film company must provide on-screen credit to the City and promotional materials pursuant to Film Commission guidelines. (2) Amount of Rebate. (A) The City shall rebate allowable production costs to a qualified low budget film production or qualified film production; provided, however, the total amount of all rebate payments to such productions shall not exceed $13,000,000 between July 1, 2015 and by June 30, 2027. The Film Rebate Program shall expire on June 30, 2027, unless extended by ordinance. (B) Additionally, the total rebate payment for a single production may not exceed $1,000,000, for 2 which may include up to 10% of the first $1,000,000 of fees paid for hourly pay or salaries and any item or service purchased or rented from a business with a location in the City and up to 20% of such fees thereafter; up to 100% of fees paid to a City department; and a percentage of fees paid to a third party property owner as determined by the Film Commission’s guidelines. (C) No television series or web series may qualify for more than $1,000,000 in rebate payments per season. (D) The rebates shall be paid from the project account that the Controller has set aside for Film Rebate Program funds (the “Film Rebate Project Account”). The rebates shall not be paid from funds dedicated under bond or other legal financing covenants. Rebates paid under this Section 57.8 shall be paid only to those qualified low budget film productions or qualified film productions whose filming commenced on or after January 1, 2026. Rebates under the Scene in San Francisco Incentive Program are subject to available appropriations and will be paid on a first-come, first-served basis upon submission of all required documentation 2 The reasonable expenses of the Film Commission in connection with administering the Rebate Program and reasonable marketing expenses to promote the Rebate Program may be paid out of the Film Rebate Project Account 1 (3) Implementation. After holding a public hearing, the Executive Director, in consultation with the Controller, shall promulgate rules and regulations to establish the procedures for implementation of the Film Rebate Program. Such rules shall include provisions describing the application process, the standards used to evaluate the applications, the documentation that will be required to substantiate the amount of the rebate, the appeal process, and any such other provisions as deemed necessary and appropriate to carry out the Film Rebate Program. (d) Authority to Lease Property for Film Company Use. Subject to the Controller’s certification of funds in the Film Rebate Project Account or other available funding source (“Controller’s Certification”), the Director of Property of the Division of Real Estate, in consultation with the Executive Director, shall have the authority to lease property and sublease such property to film companies for film-related activities including, but not limited to, filming, editing, film production office space, and stage space uses (“Film Production Leases”) when the Executive Director determines, in consultation with the Director of Property, that no suitable alternative City property is available. Notwithstanding any other provision of the Municipal Code, including Administrative Code Sections 23.26 and 23.31, where a proposed Film Production Lease is for a year-to-year or shorter tenancy and has received the Controller’s Certification under this subsection (d), the Director of Property may enter into such Film Production Lease, including any corresponding sublease with a film company subtenant, regardless of whether the monthly rent exceeds $15,000, without action of the Board of Supervisors unless otherwise required by the Charter. (e) Annual Reports. The Executive Director shall report annually to the Board of Supervisors on the implementation of the Film Rebate Program. The report shall include a list of each qualified low budget film production and qualified film production, residency of employees, and the total of qualified production costs submitted and paid to each film production

therwise required by the Charter. (e) Annual Reports. The Executive Director shall report annually to the Board of Supervisors on the implementation of the Film Rebate Program. The report shall include a list of each qualified low budget film production and qualified film production, residency of employees, and the total of qualified production costs submitted and paid to each film production. The Controller shall perform an annual assessment and review of the effect of the Film Rebate Program. Based on such assessment and review, the Controller shall prepare and submit an analysis to the Board of Supervisors. The analysis shall be based on criteria deemed relevant by the Controller, and may include but is not limited to data contained in the annual reports to the Board of Supervisors submitted by the Executive Director. (f) Expiration of Section. The Film Rebate Program shall expire on June 30, 2027, unless extended by ordinance. If the Film Rebate Program is not extended, the City Attorney is authorized to cause this Section to be removed from the Administrative Code. (Added by Ord. 70-06, File No. 060065, App. 4/20/2006; amended by Ord. 64-09, File No. 090024, App. 4/23/2009; Ord. 162-09, File No. 090627, App. 7/15/2009; Ord. 205-

11, File No. 110900, App. 10/11/2011, Eff. 11/10/2011; Ord. 101-12 , File No. 120406, App. 6/11/2012, Eff. 7/11/2012; Ord. 153-13 , File No. 130586, App. 7/17/2013, Eff. 8/16/2013; Ord. 268-13 , File No. 130937, App. 11/27/2013, Eff. 12/27/2013; Ord. 110-15 , File No. 150463, App. 7/2/2015, Eff. 8/1/2015*; Ord. 244-18, File No. 180518, App. 10/26/2018, Eff. 11/26/2018; Ord. 169-23, File No. 230651, App. 7/28/2023, Eff. 8/28/2023; Ord. 9-26, File No. 251225, App. 2/11/2026, Eff. 3/14/2026) (Former Sec. 57.8 redesignated as Sec. 57.4 by Ord. 331-00, File No. 001967, App. 12/28/2000) CODIFICATION NOTES

1. So in Ord. 169-23.
2. So in Ord. 9-26.

• Editor's Note: The amendments made by Ord. 110-15 were retroactive to 6/30/2015; see Sec. 4 of the ordinance.

(a) The Executive Director or his or her designee may issue a citation imposing an administrative penalty in an amount of up to three times the applicable use fee under Section 57.5(c) of this Chapter 57 to any person that has violated this Chapter. The amount of such administrative penalty will be based on the impact of the violation on the community, the impact of the violation on the City, the amount of staff time needed to investigate and address such violations, and such other factors as justice may require. (b) Except as provided in subsection (a), setting forth the amount of administrative fines, Administrative Code Chapter 100, “Procedures Governing the Imposition of Administrative Fines,” as may be amended from time to time, is hereby incorporated in its entirety and shall govern the procedure for imposition, enforcement, collection, and administrative review of administrative citations issued by the Executive Director or his or her designee to enforce this Chapter 57. (c) If a film company did not enter into a use contract to engage in film production and is seeking a certification that the film was made in compliance with the laws of the jurisdiction where it was filmed, the film company will receive a certification of compliance upon payment of the administrative penalty, evidence of insurance as required by the City Risk Manager, if such insurance was in effect at the time of filming, and upon signing an agreement to hold the City harmless for any costs associated with any loss or claim attributable to any of the activities of the film production in connection with the filming. (d) The Executive Director may require a film company seeking to engage in film production to pay any unpaid administrative fines imposed under this Section 57.9 prior to entering into any further use contracts. (Added by Ord. 244-18, File No. 180518, App. 10/26/2018, Eff. 11/26/2018) (Former Sec. 57.9 added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; repealed by Ord. 331-00, File No. 001967, App. 12/28/2000)

INTELLECTUAL PROPERTY. The Executive Director may enter into licensing agreements for the use of the Film SF logo and other Film Commission trademarks on merchandise such as but not limited to hats, t-shirts, and coffee mugs. The Executive Director may authorize the sale of such merchandise for a royalty fee based on the industry standard for a particular item. The Executive Director may also enter into such licensing agreements in exchange for merchandise to use in the Film Commission’s philanthropic enterprises. (Added by Ord. 9-26, File No. 251225, App. 2/11/2026, Eff. 3/14/2026) (Former Sec. 57.10 added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; repealed by Ord. 331-00, File No. 001967, App. 12/28/2000)

(Added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; redesignated as Sec. 57.7 and amended by Ord. 331-00, File No. 001967, App. 12/28/2000) SECS. 57.12. - 57.13. [REPEALED.]

(Added by Ord. 464-88, App. 10/12/88; amended by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; repealed by Ord. 331-00, File No. 001967, App. 12/28/2000)