Bay Area/ San Francisco/ Real Estate & Development
Published on May 09, 2016
Mid-Market Development News: 1066 Market, Yotel Face Appeals; 92-Foot 'Venus' Sculpture Goes UpRendering: Arquitectonica

Here's our roundup of the latest in development news around Mid-Market, starting with the news that appeals have been filed against two Mid-Market developments: a 304-unit residential building, recently approved for 1066 Market St., and a 203-unit hotel, currently under construction at 1095 Market St.

1066 Market St.

According to the SF Business Times, land use and zoning attorney Sue Hestor has filed an appeal on Shorenstein Residential's 12-story, 120-foot-tall mixed-use residential building approved for Market, Jones and Golden Gate (pictured above).

Hestor is filing on behalf of the Tenderloin Neighborhood Development Corporation, which owns 33 properties and is celebrating its 35th anniversary this month. TNDC is appealing the Planning Commission's approval on the grounds that both the 268 market-rate and 36 below-market-rate units will be too expensive for the existing Tenderloin community.

TNDC's appeal letter argues that the project does not adequately address the acute impacts of the affordable housing crisis in the Tenderloin—where the majority of the project sits, and where the median income is $23,000 per year—or the increasing displacement of its residents.

The letter adds:

"The growing presence of more wealthy residents in the Tenderloin threatens to lead to a number of negative outcomes, including a shift away from businesses who serve the existing community towards enterprises which do not serve the Tenderloin's low-income residents. Nonprofit agencies who serve the neighborhood's existing residents are threatened as well.

In the past few months, the area surrounding 1066 Market Street has seen a group of nuns running a free food service threatened with eviction, as well as the eviction of several low-income-tenant serving non-profits, including the Eviction Defense Collaborative and Tenants Together. The neighborhood will soon be gaining a high-end cocktail bar and chocolatier; neither business serves low-income residents. The Conditional Use Authorization, and the design of the project, do not acknowledge this important community dynamic."

A similar appeal filed by Hestor against the project's Preliminary Mitigated Negative Declaration—which allowed it to forgo the full environmental review process—was rejected by the Planning Commission ahead of its approval in March. While the Commission was sympathetic, it ultimately sided with the Planning Department's finding that socioeconomic impacts are legally out of the scope of California's environmental review guidelines.

While the Board of Supervisors is scheduled to hear this new appeal on May 17th, the Business Times reports that insiders expect Shorenstein Residential and TNDC, along with the Tenderloin Housing Clinic, to come to an agreement on concessions ahead of the hearing. Those may include potentially lowering the area median income requirements for the BMR units, increasing the percentage of affordable units offered onsite, or dedicatng a separate piece of land in the area for affordable housing.

1095 Market St.

Rendering: CBRE, Inc.

Less than a block away, an appeal also filed by Hestor—this time, on behalf of hospitality union UNITE/HERE Local 2—is threatening to halt construction on the first SF location of micro-hotel chain YOTEL at Seventh and Market, Socketsite reports.

Here, the issue is whether the luxury hotel, owned by Synapse Capital, must include a bus loading zone.

According to the appeal, Planning code requires hotels with more than 200 units to include a bus loading zone. At 203 rooms, the YOTEL project is above that threshold, but it received its building permits last year without a loading zone in the plans. The property owner's counsel is arguing that the requirement does not apply, as the redevelopment is not a "major addition" to the building.

The matter goes to the Board of Appeals at 5pm this Wednesday, May 11th.

Other Mid-Market Development Updates

While the entire Trinity Place residential complex at Eighth and Market is still years from completion, that's not stopping Trinity Properties from getting a jump on installing its towering public art piece.

Last week, the 92-foot steel sculpture, named ‘Venus,’ began rising on the site's future public art garden. Created by Denver artist Lawrence Argent, the sculpture was commissioned by the late housing developer Angelo Sangiacomo to satisfy the project's 1 percent public art component.

Rendering: Trinity Properties

The sculpture's installation should be completed by the end of the month, but don't expect to get a glimpse any time soon. Despite the piece's height, the Chron notes that it's currently hidden behind fences and scaffolding, as well as the complex's three residential towers.

Renderings: Group i

Down the street, redevelopment plans for 950-974 Market St. (at Mason) are chugging along. In its latest community update, developer Group i says its timeline for gaining city approvals has been pushed to this summer, and construction should begin before the year closes.

The delay is likely the result of two appeals filed against this project this winter.

Rendering: Solomon Cordwell Buenz

Tidewater Capital is also continuing to solidify plans for 1028 Market St., where The Hall currently operates, as the project moves through the full EIR process.

The developer's next community update will be held at 9am this Wednesday, May 11th at The Hall. In addition to an update on the project, the event will feature a discussion on the city's development and planning landscape, with Marlo Sandler of the Planning Department, Kim-Mai Cutler of TechCrunch and Rob Poole of the San Francisco Housing Action Coalition.