Ordinance amending the Planning Code and the Zoning Map to establish the San Francisco Gateway Special Use District generally bounded by Kirkwood Avenue to the northeast, Rankin Street to the southeast, McKinnon Avenue to the southwest, and Toland Street to the northwest; making findings under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of public necessity, convenience, and welfare under Planning Code, Section 302.

This ordinance (File No. 250426) establishes the San Francisco Gateway Special Use District (SUD), amending the Planning Code (Section 249.7) and Zoning Map (SU10 and HT10) for a 17.1-acre site at 749 Toland Street and 2000 McKinnon Avenue in the Bayview neighborhood. The project, sponsored by Prologis, L.P., involves demolishing four existing PDR buildings (448,000 sq ft) and constructing two new three-story mixed-use buildings up to 97 feet in height, totaling 1,646,000 gross sq ft (or 2,160,000 gross sq ft including active roofs). This will create a net increase of approximately 1,189,600 sq ft of Production, Distribution, and Repair (PDR) space, alongside 8,400 sq ft of Retail Sales and Service uses.

The SUD aims to modernize and expand PDR facilities, offering flexible spaces for diverse users, including up to 225,000 sq ft for parcel delivery services, and supporting the transition to electrified vehicle fleets. It also revises height limits from 65-J to 97-X and modifies standard requirements for parking, streetscape, and transportation demand management (TDM), deferring to a related Development Agreement (File No. 250427) and Design Standards and Guidelines (DSG).

The project is projected to generate over $16 million in one-time development impact fees and approximately $7 million annually in net new General Fund revenues. Operations are estimated to support $514 million in new annual spending. Public benefits include a $750,000 fund for small businesses, $5,000,000 for SF "Market Zone" infrastructure, $300,000 for education, $350,000 for childcare, and $250,000 for public art. Over $1,000,000 is allocated for workforce training.

Construction is anticipated to create an annual average of 795 jobs over 31 months, with a total of 2,500 to 3,000 temporary/short-term workers, utilizing exclusively union labor. Upon completion, the project will generate approximately 1,980 permanent on-site jobs, offering diverse opportunities at various skill levels.

A Final Environmental Impact Report (FEIR) was certified on September 25, 2025, and a Mitigation Monitoring and Reporting Program (MMRP) adopted, ensuring all significant environmental impacts (e.g., archeological, noise, air quality, wind) are reduced to less-than-significant levels. The project commits to LEED Gold certification or higher, extensive EV charging infrastructure, and a rooftop solar array. Streetscape improvements will upgrade 8 city blocks with new sidewalks, ADA ramps, crosswalks, and street trees.

This project will bring significant changes to the Bayview neighborhood, creating thousands of new construction and permanent jobs across various skill levels, including union labor. Residents will benefit from improved local infrastructure, including new sidewalks, street trees, and safer pedestrian areas, as well as community investments in small businesses, education, and childcare. The development aims to boost the local economy and provide modern PDR spaces, though increased traffic during the 31-month construction period and ongoing operational vehicle movements will be a notable impact, mitigated by internal circulation design and TDM measures.

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