SEC. 424.7. TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT IMPACT FEE…

Sections 424.7.1 through 424.7.4 set forth the requirements and procedures for the Transit Center District Transportation and Street Improvement Impact Fee and Fund. The effective date of these requirements shall be either the effective date of this Ordinance or the date a subsequent modification, if any, became effective.

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

SEC. 424.7.1. FINDINGS.

(a) General. New development in the Transit Center District Plan area will create substantial new burdens on existing streets and transportation systems and require the need for new and enhanced transportation services and improvements to rights-of-way for all modes of transportation. The downtown is a very dense urban environment with limited roadway capacity and is already substantially congested and impacted by existing patterns of movement. To accommodate the substantial growth anticipated in the Transit Center District Plan Area, public transit investments must be made, circulation patterns adjusted, and limited right-of-way space reallocated such that trips to and through the area are primarily made by public transit, walking, bicycling, and carpooling and such that these modes are enabled to maintain or improve efficiency and attractiveness in the face of increasing traffic congestion. The Transit Center District Plan identified necessary investments and improvements to achieve these modal objectives and ensure that growth in trips resulting from new development and population increase in the Plan area does not degrade existing services. The San Francisco Citywide Nexus Analysis (“Nexus Analysis”), on file with the Clerk of the Board in File No. 230764, calculated the proportional share of the cost of these improvements attributable to new growth based on accepted professional standards. The investments and improvements identified in the Transit Center District Plan and allocated in the nexus study are distinct and in addition to improvements and services related to the Transit Impact Development Fee (TIDF) imposed by Section 411 et seq. Whereas the TIDF funds improvements to SFMTA Municipal Railway public transit services and facilities to provide sufficient capacity required to serve new development, the Transit Center District Transportation and Street Improvement Fee covers impacts of new development in the District on regional transit services and facilities that are distinct from and in addition to the need for SFMTA public transit services, and that will not funded by the TIDF, including necessary improvements to area streets to facilitate increases in all modes of transportation due to development, including walking, bicycling, and carpooling, and to regional transit facilities, including the Downtown Rail Extension and downtown BART stations. The Board finds that there is no duplication in these two fees. To provide the City and County of San Francisco and regional transit agencies with the financial resources to provide transportation facilities and street improvements necessary to serve the burgeoning population of downtown San Francisco, a Transit Center District Transportation and Street Improvement Fund shall be established as set forth herein. The Board of Supervisors adopts the findings of the Nexus Analysis, in accordance with the California Mitigation Fee Act, Government Code Section 66001(a).

to provide transportation facilities and street improvements necessary to serve the burgeoning population of downtown San Francisco, a Transit Center District Transportation and Street Improvement Fund shall be established as set forth herein. The Board of Supervisors adopts the findings of the Nexus Analysis, in accordance with the California Mitigation Fee Act, Government Code Section 66001(a).

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

The fee rate has been calculated by the Planning Department based on accepted professional methods for the calculation of such fees, and described fully in the Nexus Analysis, on file with the Clerk of the Board in File No. 230764.

The proposed fee established in Sections 424.7 et seq., is less than the maximum justified fee amount as calculated by the Nexus Analysis necessary to provide transportation and street improvements to increasing population in the area. While no project sponsor would be required to pay more than the maximum amount justified for that project as calculated in the Nexus Study, the Transit Center District Transportation and Street Improvement Fee is tiered such that denser projects are assessed higher fees because it is economically feasible for such projects to pay a higher proportion of the maximum justified amount. The proposed fee covers only the demand for transportation and street improvements created by new development and is not intended to remedy existing deficiencies. The cost to remedy existing deficiencies will be paid for by public, community, and other private sources as described in the Nexus Analysis and the Transit Center District Plan Implementation Document. Impact fees are only one of many revenue sources necessary to provide transportation and street improvements in the Plan Area.

(Added by Ord. 182-12, File No. 120665, App. 8/8/2012, Eff. 9/7/2012; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)

AMENDMENT HISTORY

Section amended; Ord. 193-23, Eff. 10/16/2023.

SEC. 424.7.2. APPLICATION OF TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT IMPACT FEE.

(a) Application. Sections 424.7 et seq. shall apply to any development project located in the C-3-O(SD) District and meeting the requirements of subsection (b) below.

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

(1) At least one net new residential unit,

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

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

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

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

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

(7) Conversion of existing space to a different use where the project's total fee as calculated according to subsection (c) below would exceed the total fee for the uses being replaced.

(c) Fee Calculation for the Transit Center District Transportation and Street Improvement Impact Fee. For development projects for which the Transit Center District Transportation and Street Improvement Impact Fee is applicable the corresponding fee for net addition of gross square feet is listed in Table 424.7A. Where a development project includes more than one land use, the overall proportion of each use relative to other uses on the lot shall be used to calculate the applicable fees regardless of the physical distribution or location of each use on the lot. If necessary, the Director shall issue a Guidance Statement clarifying the methodology of calculating fees.

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

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

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

(4) Projects Exceeding FAR of 18:1. For development projects that result in the Floor Area Ratio on the lot exceeding 18:1, the fee listed in Column D shall be assessed on all applicable gross square footage on the lot above an FAR of 18:1.

TABLE 424.7A

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

Industrial N/A $4.00/gsf N/A N/A

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

(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Transit Center District Plan Implementation Document and where they substitute for improvements that could be provided by the Transit Center District Transportation and Street Improvement Fund (as described in Section 424.7.4). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Transit Center District Plan, by the Interagency Plan Implementation Committee (see Chapter 36 of the Administrative Code), or other prioritization processes related to Transit Center District improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.

(A) For a development project on Assessor's Block 3720 Lot 009, an in-kind agreement may be approved that credits the project for street and transportation improvements constructed by either the sponsor of the development project or by the Transbay Joint Powers Authority.

(B) The Planning Commission may not grant an in-kind agreement to waive or provide improvements in-lieu of paying the Transit Delay Mitigation Fee required by subsection (c) (1) above.

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

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

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

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

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

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

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

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

(f) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article. No waiver or reduction may be granted for the Transit Delay Mitigation Fee required by subsection (c)(1) above.

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

AMENDMENT HISTORY

Division (e) amended; Ord. 50-15, Eff. 5/24/2015. Former division (c)(5) deleted; Ord. 188-15, Eff. 12/4/2015. Division (e) amended; Ord. 196-25, Eff. 11/24/2025.

SEC. 424.7.3. IMPOSITION OF TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT IMPACT FEE.

(a) Determination of Requirements. The Department shall determine the applicability of Sections 424.7 et seq. to any development project requiring a first construction document and, if Sections 424.7 et seq. is applicable, the amount of Transit Center District Transportation and Street Improvement Impact Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.

(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Sections 424.7 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Transit Center District Transportation and Street Improvement Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.

(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Sections 424.7 et seq. that has elected to fulfill all or part of its Transit Center District Transportation and Street Improvement Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section Sections 424.7 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Transit Center District Transportation and Street Improvement Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code .

(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Sections 424.7 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.

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

SEC. 424.7.4. THE TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT FUND.

(a) There is hereby established a separate fund set aside for a special purpose entitled the Transit Center District Transportation and Street Improvement Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 424.7.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund to be used solely to fund Public Benefits subject to the conditions of this Section.

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

(1) All monies deposited in the Fund shall be used to study, design, engineer, develop and implement transportation infrastructure, facilities, equipment, services and programs as well as improvements to public streets, in the Transit Center District Plan Area and the greater downtown as established in the Transit Center District Plan and the Transit Center District Implementation Program Document and supported by the findings of the Transit Center District Plan Transportation and Street Improvement Nexus Study. Fees paid pursuant to the Transit Delay Mitigation Fee required by Section 424.7.2(c)(1) must be held in a separate account for use for the mitigation purposes defined in the Final Transit Center District Plan Environmental Impact Report, San Francisco Planning Department Case Number 2007.0558E.

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

(3) All funds are justified and supported by the Transit Center District Plan Transportation and Street Improvement Nexus Study, San Francisco Planning Department, Case No. 2007.0558U. Implementation of the Fee and Fund shall be monitored according to the Downtown Plan Monitoring Program required by the Administrative Code Section 10E.

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

AMENDMENT HISTORY

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