Ordinance amending the Planning Code to eliminate limits on Non-Residential Use Sizes in the Pacific Avenue Neighborhood Commercial District (NCD), Polk Street NCD, West Portal Avenue NCD, North Beach NCD and North Beach Special Use District, Regional Commercial Districts, and Residential-Commercial District; allow specified Non-Residential Uses that exceed the Use Size limits to divide into smaller spaces that may continue to exceed the Use Size limits, without conditional use authorization; adjust the Use Size limit in all NCDs to a round number; affirming the Planning Department’s determination under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of public necessity, convenience, and welfare pursuant to Planning Code, Section 302.

The report indicated that new business formation was significantly below pre-pandemic levels, particularly in retail and restaurant sectors, highlighting high vacancy rates in various neighborhoods.

Supervisor Melgar introduced the ordinance to amend the Planning Code, aiming to eliminate limits on Non-Residential Use Sizes in several Neighborhood Commercial Districts.

The Planning Department determined that the proposed ordinance complies with the California Environmental Quality Act, allowing it to proceed.

The Planning Commission reviewed the ordinance and adopted findings that it is consistent with the City’s General Plan and priority policies.

The committee amended the ordinance to retain use size caps for the Castro Street NCD while allowing specified Non-Residential Uses to divide into smaller spaces without conditional use authorization.

The ordinance was finally passed by the Board of Supervisors after being amended in committee.