THD’s Letter of Support for 659 Union/1656 Powell Street – Verdi Apartment Building

April 5, 2023
Jeff Jurow
Redbridge Partners
100 Green Street
San Francisco, CA 94111
(Via email: jjurow@rb-sf.com)

RE: Letter of Conditional Support
659 Union St./1656 Powell St. – Verdi Apartment Building

Dear Mr. Jurow,
On behalf of the Telegraph Hill Dwellers (THD), we would like to offer our support for the currently proposed project to restore the exterior of the historic Verdi Building and see the return of small business to the ground floor and residential uses above. The existing building is critically important for its historic significance and as a key anchor on Washington Square. It represents an integral part of our shared history of North Beach. THD is pleased to see the progress this project has made since the original design was presented to our committee more than four years ago and to support the proposed project subject to the conditions and understandings in this letter.

Proposed Project Plans

We understand that the most current full plans are those dated 4/12/22 as re-submitted 6/8/22, and as supplemented by 1/20/23 PRJ Drawings for Historic Review. The project is proposed as a State Density Bonus (“SDB”; Gov. Code § 65915) mixed use housing development seeking waivers and incentives to accommodate the scope of the development proposal. The Project as currently proposed would provide 22 residential units (six 2-bedroom units, eight 1-bedroom units, two 1-bedroom plus den units, and six studio units) two of which are designated as very low-income units.

It is our understanding that the project includes the preservation of the building’s three existing street-facing brick masonry walls, including its historic cornice, ornamental details, and windows, and that the floor plates will be rebuilt. Maintaining and preserving the original brick and these historic details on the three street-facing brick masonry walls is a critical basis for our support.

As shown in the plans, the proposed project includes a vertical addition of a partial fourth floor set to the rear of the Verdi Building for use as a restaurant with outdoor dining, and a roof-top outdoor dining deck on top of the fourth-floor restaurant, along with an elevator penthouse to reach that space. At 61 feet-3 inches to the parapet, as shown on the most recent plans, the project would exceed the district’s 40-foot height limit. As proposed, you have guaranteed that the project will cast no new shadow on Washington Square, a zero-tolerance park. Protecting Washington Square from any new shadow is a critical requirement for our support.

As shown in the proposed plans, the project also includes an addition of an approximately 30-foot, 6-inch horizontal extension along Powell Street, south of the Verdi Building in what is now a vacant space adjacent to the structure, for a lobby, elevators, stairs, and one additional unit per floor. This addition would be entirely new construction requiring the removal of the existing brick façade of the Verdi Building at this location.

Pursuant to the project description and your assurances to our Planning and Zoning Committee, there are no proposed changes to the existing 21-foot-tall, two-story garage building at 1656 Powell Street located on the same parcel as the Verdi Building. Additionally, as proposed, the development would not use any of the 57 existing vehicle parking spaces in the garage building.

Please let us know if any of our understandings above are incorrect or need clarification.
THD’s Conditional Support

Based on your commitment to preserve the Verdi Building’s three existing street-facing brick masonry walls, cornice, and other historic details, and your guarantee that the project will cast no new shadow on Washington Square Park, THD is willing to support the proposed project, with the following conditions:

  1. Special Legislation to Allow the Rooftop Restaurant. We understand that special legislation is required for the proposed fourth floor roof-top restaurant and for returning restaurant uses to the ground floor to exempt the project from existing prohibitions in the North Beach Neighborhood Commercial District (NBNCD) ordinance. With the exception of the outdoor dining deck on the roof of the fourth-floor restaurant, THD would actively support such legislation justified by the exceptional circumstances related to the fire damage and the neighborhood’s strong desire to move the project along as quickly as possible. Such special legislation, due to the exceptional circumstances listed above, must apply uniquely to the fire-damaged Verdi Building, and not establish a broader precedent in North Beach or elsewhere.
  2. Immediately Protecting and Further Stabilizing the Building. Pending commencement of construction, the existing brick walls must be protected from further damage from water intrusion, exposure to the elements, and other stressors, and the walls must be further stabilized to prevent collapse.
  3. Allowing Displaced Tenants a Right to Return. We understand that several previously displaced tenants may want to return to their former homes following completion of the project. We therefore condition our support on your providing them with an opportunity to return at affordable rent-controlled rents. THD would very much like to see more affordable units in the proposed project. As you know, the Verdi Apartment Building contained 28 affordable rent-controlled units prior to the fire vs. only 2 very low-income units as currently proposed.
  4. Providing Compatible Material on Powell Street Extension. We understand that revised plans have been submitted in conjunction with the project’s historic review. We condition our support on the adoption of final plan revisions that specify materials that are suitably compatible with the existing brick, color, and texture of the historic Verdi Building, as well as with the surrounding neighborhood.
  5. Agreeing to Place a Prohibition on Future Subdivision of the Parcel. We understand from the proposed plans and your assurances to us that you have no plans to develop the portion of the parcel now occupied by the garage building at 1656 Powell. Consistent with those plans and assurances, our support is conditioned upon placing a legally enforceable prohibition on the subdivision of the parcel, thus foreclosing future new development on the garage building site.
  6. Limiting the Size of Ground-Floor Retail Spaces. Under the NBNCD controls, ground-floor retail spaces are permitted up to 1,999 square feet, require a conditional use authorization between 2,000 and 3,999 square feet, and are not allowed to exceed a maximum of 4,000 square feet in order to encourage a variety of small independent retail businesses in North Beach. Consistent with these controls, our support for your project is conditioned upon limiting the sizes of the ground-floor retail spaces to that permitted by the NBNCD. At a minimum, the project should replicate the five previous storefronts. In addition to Coit Liquor, we urge you to work with previous commercial tenants that may wish to return at reasonable rents.

THD is pleased to support the currently proposed project and want to see a successful project moving forward with all due speed to restore the exterior of the historic Verdi Building and to return residents and small business to this strategically located building on Washington Square. We are happy to meet with you again and to assist in any way that we can, including working with our District 3 Supervisor or City agencies to help make this happen.

Sincerely,

Al Fontes, President
Telegraph Hill Dwellers

cc: Supervisor Aaron Peskin, District 3 (aaron.peskin@sfgov.org)
Sunny Angulo, Chief of Staff (sunny.angulo@sfgov.org)
Claire Feeney, Senior Planner (claire.feeney@sfgov.org)
Jonathan Vimr, Planning Department (jonathan.vimr@sfgov.org)
Don Lewis, Environmental Planner (don.lewis@sfgov.org)
Ida Zoubi, President, North Beach Business Association (caffeida@yahoo.com)

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