Plan Boundary, courtesy of the Planning Department
Add this to the list of fees that developers are asked to pay: approximately $850 million over 20 years to build in the Transbay Area. According to the SF Chronicle, “The surcharges of up to $35 a square foot would be in addition to a package of downtown-only fees for things such as public transit, affordable housing and wastewater treatment.” This of course doesn’t cover: environmental impact reports, potential historical reports, biological reports, school fees, sidewalk construction, variances, design review hearing and others, on top of the premium already charged by the Planning Department just for the sake of applying.
And then – what do they get out of it? Premium location, bonuses for density and building heights, close access to the future Transbay Terminal/HSR, and of course – profit. This is the balancing act played out every time a new project is proposed. The planners (and supervisors, and building inspectors, and any other official) try to get as much as they can, and the owner tries to turn a profit. During the good years, everyone comes out on top. During the bad years, projects get delayed or shut down, and the government complains. It really shouldn’t be a surprise, considering how closely to the line each development rides.
So then, what can we change? The idea to actually announce the fees ahead of time is the best news I’ve heard. Often the fee changes are announced mid-project, or Supervisors take it upon themselves to extort developers. When everything is laid out on the table, the calculus is easy to see. Predictability is what development is all about. The second the city changes the math, that’s when we’re all in trouble.
The long term benefit is that we’re looking ahead. The fees are a one time affect, but the chance to construct many new buildings downtown, most of them multiple stories above their neighbors, is lasting. This privilege to create an enduring legacy in San Francisco is what will draw construction, fees or not. And that’s what The City is counting on.
Potential View of Downtown
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