BUILDING III — Development Project

EXECUTIVE SUMMARY

This report gives a high-level summary of what will be required to modify Historic

Building Three (Building Three), and its surroundings to accommodate both indoor and outdoor

pickleball courts, alongside the construction of a restaurant or bar facility. The major land use

issues for the development of Building Three ultimately stem from restrictions associated with

the building’s status as both a public trust property and a historic resource, as well as its location

within openly managed hazardous waste site.

The General Plan and zoning designations for Building Three would likely accommodate

the project as currently proposed; however, the property’s location within public trust lands

would not. The Public Trust Doctrine likely permits development of a publicly accessible

restaurant or bar in Building Three, it would not permit a private members-only pickleball

facility. The developer will also have to satisfy zoning requirements such as securing a

conditional use permit, complying with restrictive covenants governing Building Three’s uses,

and entering into a Vertical Lease Disposition and Development Agreement.

The proposed project will need to undergo CEQA review in order to obtain the necessary

permits and approvals outlined in this report. Some of these permits and approvals may be

streamlined by leveraging the 2011 Environmental Impact Report (2011 EIR) generated for the

Treasure Island/Yerba Buena Redevelopment Project. However, the proposed project will also

require a supplemental EIR to account for environmental impacts potentially generated by the

proposed project that were not accounted for in the 2011 EIR. Based upon the 2011 EIR and

publicly available information, the project developer should expect significant environmental

hurdles related to historic resources and hazardous materials.

Lastly, this report covers impact fees required by the City of San Francisco, green building

standards, and other considerations that the developer should be aware of.

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