Shorenstein’s Tenderloin Mixed-Use Project Moving Forward

Shorenstein San Francisco Tenderloin Neighborhood Development Corp. San Franciscans for Reasonable Growth Tenderloin Housing Clinic 1066 Market St.

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By Nancy Amdur

Shorenstein Residential, LLC, will move ahead with plans to construct a 12-story, 304-unit residential-and-retail project at 1066 Market St. in San Francisco’s Tenderloin neighborhood following the developer’s recent agreement to purchase a nearby parcel for the city to use for affordable housing.

Appeals filed with the city’s Board of Supervisors had stalled Shorenstein’s project in the spring, in part due to community concerns that the proposed project did not include enough below-market-rate housing.

[contextly_sidebar id=”byPPrJGlYXaU0Jiv0xlFjUO0PMyTZtYD”]“We heard from Tenderloin residents that they can’t afford the rents under the city’s inclusionary program,” said Donald Falk, CEO of the nonprofit affordable housing developer Tenderloin Neighborhood Development Corp. (TNDC), which had appealed the project. “Shorenstein worked with us to come up with a creative alternative that will generate more housing at deeper levels of affordability. It’s a great outcome for everyone.”

The Board of Supervisors this month approved a resolution allowing Shorenstein to purchase the shuttered post office at 101 Hyde St., which it would then deed to the city to be used for an approximately 85-unit affordable housing development. The project also would include about 4,920 square feet of ground-floor retail space. Shorenstein expects to close on the purchase of the 0.25-acre site this summer. A developer for the project is not yet selected. With this agreement, Shorenstein would not be required to include on-site affordable housing at its Market Street project.

“1066 Market and 101 Hyde are the bookends of the Tenderloin, and the dedication of 101 Hyde to the city ensures both properties can now move ahead,” said Meg Spriggs, managing director of Shorenstein’s multifamily investments group, in a statement. “We are very pleased with the consensus solution, which will nearly triple the amount of affordable housing provided by the development of 1066 Market. Those 85-plus units will now be available at permanently lower levels of affordability.”

Shorenstein’s Market Street project, which will replace a vacant commercial building and parking lot, was approved by the city’s planning commission in March, with plans to include 36 affordable housing units, as required by city ordinance. But the TNDC appeal stated that the project showed “an insufficient acknowledgement of the community in which the proposed project is located.”

The proposed project’s rents, including below-market rate units slated to be affordable for households earning within 55 percent of the area median income, likely would not be affordable to many residents of the predominantly low-income neighborhood, where the median annual income for residents is about $23,000, according to the TNDC appeal.

San Francisco land use attorney Sue Hestor, on behalf of neighborhood group San Franciscans for Reasonable Growth, also had appealed the project, noting “it includes insufficient discussion of cumulative development of market-rate housing,” in the area, which is “decimating the existing…low-income housing community in both the Tenderloin and South of Market.” Hestor said she withdrew her appeal in order to “enable serious discussions” with the developer and the Tenderloin community. Affordable housing at 101 Hyde St. “will strengthen that area,” she said.

The city’s planning department noted in its project report that Shorenstein’s proposed development at 1066 Market St. complies with the area’s zoning for land use, height and density.

Additionally, “the property is an ideal site for new housing due to its central downtown location and proximity to public transportation,” the report states.

Kathy Looper, executive director of the nonprofit Reality House West, Inc., which has owned the nearby single-room occupancy Cadillac Hotel at 380 Eddy St. since the 1970s, said she favors Shorenstein’s proposed project.

“I support the project because I believe in activation of these dead zones that are in the neighborhood,” she said. The project would be in a “blighted” area and “this development is a good thing and will make that street a little safer,” she added.

Looper also noted that a mix of incomes in the neighborhood helps make it a more “viable” community.

Randy Shaw, executive director of the nonprofit Tenderloin Housing Clinic, a provider of housing for single homeless adults, said housing could benefit the neighborhood.

“More housing is needed everywhere, but that particular corner does not function well for the community as a parking lot,” he said.

Shorenstein is the longtime property owner of the Market Street site and first submitted an application for the proposed mixed-use project—to include about 4,540 square feet of ground-floor retail—in 2014. The site now carries a two-story approximately 5,000-square-foot vacant commercial building and adjoining 23,419-square-foot parking lot and frontage on Jones Street, Golden Gate Avenue and Market. Buildings in the surrounding neighborhood include a 10-story low-income and senior housing development at 129 Golden Gate Ave. and a seven-story 82-unit homeless housing facility at 41 Jones St.

Plans call for the new 120-foot-tall project at 1066 Market St. to have a mix of studio, one- and two-bedroom units, two levels of underground parking comprising 102 spaces and amenities, including a lounge and fitness center.

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