Interim Ordinance on Demolitions of Single

and Dual Screen Movie Theaters (File No. 041448)

OLA#: 033-04

LEGISLATIVE ANALYST REPORT

TO: Honorable Members of the Board of Supervisors

FROM: Office of the Legislative Analyst (OLA), on behalf of the Board

DATE: October 28, 2004

SUBJECT: Interim Ordinance on Demolitions of Single and Dual Screen Movie Theaters (File No. 041448)

INTRODUCTION

On October 14, 2004, the Mayor and Board of Supervisors adopted a 45-day emergency interim ordinance (moratorium) on demolitions of single and dual screen movie theaters. Section 65858 of the California Government Code requires that an interim ordinance be adopted by urgency measure. This section also requires that 10 days prior to the expiration of an interim ordinance or any extension, the legislative body (in this case the Board of Supervisors) must issue a written report describing the measures taken to alleviate the condition that led to the adoption of the ordinance. The following report is intended to comply with this section.

EXECUTIVE SUMMARY

The Board of Supervisors is currently working to alleviate the condition that led to the adoption of the interim ordinance. On July 27, 2004, Supervisor Peskin introduced an ordinance (File No. 041070) that would require Conditional Use ("CU") authorization for any project involving the change in use or demolition of a movie theater. Existing law required the Board to forward the proposed ordinance to the Planning Commission for review and comment. On October 21, 2004, after a public hearing, the Commission recommended that the Board adopt the ordinance. Following the Planning Commission's recommendation, the Board of Supervisor's Land Use Committee held a public hearing, on October 25, 2004, to review the proposed ordinance. After this hearing, the Land Use Committee recommended that the full Board adopt the proposed ordinance with some minor amendments described herein. Board passage of this legislation will determine whether enough progress has been made to eliminate the interim ordinance.

45-DAY INTERIM ORDINANCE

The interim ordinance, adopted by the Mayor and Board of Supervisors on October 14, 2004, contains the following findings:

General findings:

  • San Francisco has a proud tradition of neighborhoods and commercial districts that reflect the diverse character of the City.

  • Movie theaters serve as important anchors in many of these neighborhoods and commercial districts, helping to generate pedestrian traffic critical for the economic vitality of surrounding retail stores, restaurants and other small businesses.

  • Movie theaters, particularly single and dual screen theaters, contribute to the unique character of these neighborhoods and commercial districts and enhance the quality of life of the City's residents.

  • Over the last 25 years, San Francisco has lost more than 35 movie theaters.

  • Many of the remaining movie theaters are threatened with potential closures, demolitions or conversions in the near future. The Attachment to this report, created by the OLA, contains a list of theaters that are currently threatened.

Findings related to imposition of the interim ordinance:

  • The interim zoning controls described in Planning Code Section 306.7 were intended and designed to deal with and ameliorate the problems and conditions associated with the loss of single and dual screen movie theaters in neighborhood and commercial districts by imposing a temporary moratorium on demolition of such theaters.

  • The public interest will be best served by imposition of these controls at this time in order to ensure that the legislative scheme that may be ultimately adopted is not undermined during the planning and legislative process for permanent controls.

Planning Code Section 101.1 findings:

  • The interim ordinance advances and is consistent with Priority Policies 1, 2 and 5 of Planning Code Section 101.1 in so far as they attempt to conserve a diverse economic base and existing neighborhood-serving retail and neighborhood character.

  • This ordinance also supports Priority Policy 7 to the extent that it preserves single and dual screen movie theaters that are historic landmarks or historic buildings.

  • At this time the ordinance does not effect, and thus will not conflict with, Priority Policies 3, 4, 6 and 8.

Environmental findings:

  • The Planning Department determined that the interim ordinance is in compliance with the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.).

If application of the interim ordinance would have the effect of denying approvals for a project with a significant component of multi-family housing, then that project would be excluded from the reach of the ordinance.

The 45-day interim ordinance began October 14, 2004 (the date that the Mayor signed the legislation) and will expire on November 27, 2004.

CONDITIONAL USE AUTHORIZATION

The proposed ordinance, introduced by Supervisor Peskin on July 27, 2004, would require Conditional Use ("CU") authorization for any project involving the change in use or demolition of a movie theater. Specifically, this legislation would make the following changes to the Planning Code as well as certain findings:

  • Add Section 221.1 and amend Sections 703.2, 803.2 and 803.3 to require CU authorization for any project involving the change in use or demolition of a movie theater;

  • Amend Section 303 to require specific findings as part of a CU authorization for a change in use or demolition of a movie theater (see below).

  • Require findings of consistency with the City's General Plan and Priority Policies of Planning Code Section 101.1; and

  • Require environmental findings.

The ordinance would exempt projects for which the City received environmental evaluation applications on or before July 27, 2004 (the date this legislation was introduced).

The ordinance would urge the Planning Department, prior to any Planning Commission action that is subject to this legislation, to consult with other affected City departments, including, but not limited to, the Mayor's Office of Economic Development, Mayor's Office of Neighborhood Services, the Small Business Commission and the Film Commission.

In addition to the standard Section 303 findings that need to be made by the Planning Commission for any CU authorization, the ordinance would require the Commission to make the following three additional "specific findings" regarding movie theaters:

(A) Preservation of a movie theater is no longer economically viable and cannot effect a reasonable economic return to the property owner.

(B) The change in use or demolition of the movie theater use will not undermine the economic diversity and vitality of the surrounding neighborhood commercial district.

(C) The resulting project will preserve the architectural integrity of important historic features of the movie theater use affected.

The ordinance was referred to the Planning Department and Commission for review and comment. On September 14, 2004, the Planning Department determined that the ordinance was exempt from the California Environmental Quality Act (CEQA) pursuant to General Rule Exclusion under CEQA Guidelines Section 15061(b)(3). On October 21, 2004, after a public hearing, the Planning Commission adopted a resolution recommending that the Board adopt the proposed Planning Code amendments. The Commission also found that these amendments were consistent with the City's General Plan and the eight Priority Policies established by Planning Code Section 101.1.

It is important to note that the Planning Commission commented on the aesthetic and economic value of the City's movie theaters:

    "Many of the San Francisco movie theaters are contained in older buildings that have a distinctive design or characteristics that are familiar to and an integral part of existing neighborhood development patterns."

    "Movie theaters can serve as important commercial focal points in many neighborhoods by helping to generate pedestrian traffic critical for the economic vitality of surrounding stores, restaurants and other small businesses."

Following the Planning Commission's recommendation, the Board of Supervisor's Land Use Committee held a public hearing, on October 25, 2004, to review the proposed ordinance. After this hearing, the Land Use Committee amended the proposed ordinance, as follows, and recommended that the full Board adopt it as amended. Specifically, the Land Use Committee, at the suggestion of the Planning Department, added language to assist the Planning Commission to interpret the phrase "reasonable economic return", terminology in Finding (A) above. This amendment would direct the Commission to use the criteria set forth in Planning Code Section 228.4, which concerns "fair return on investment" when converting gasoline service stations, to guide its decision-making. The Land Use Committee also amended the legislation to exempt those projects for which the City received an environmental evaluation application (as opposed to a site permit application) on or before July 27, 2004.

CONCLUSION

As noted above, the Board of Supervisors is currently working to alleviate the condition that led to adoption of the interim ordinance. Specifically, the Board introduced legislation to require CU authorization for any project involving the change in use or demolition of a movie theater. The Planning Commission, on October 21, 2004, recommended that the Board adopt the proposed ordinance. The Board's Land Use Committee, on October 25, 2004, took a similar action. Board passage of this legislation will determine whether enough progress has been made to eliminate the interim ordinance.

MOVIE THEATERS AFFECTED BY 45-DAY MORATORIUM BY NEIGHBORHOOD

Downtown / Tenderloin

Larkin Theater - 816 Larkin (Single-screen) (Open)

Royal Theater Screening Room - 220 Jones (Single-screen) (Open)

Market Street Cinema - 1077 Market (Single-screen) (Open)

Regal World Theater - 1046 Market (Single-screen) (Open)

North Beach / Chinatown / Russian Hill

Alhambra Theater - 2330 Polk (Single-screen) (Closed) (Gorilla Sports Gym)

Pagoda Theater - 1741 Powell (Single-screen) (Closed)

Western Addition

Harding Theater - 616 Divisadero (Single-screen) (Closed)

Marina / Pacific Heights

Metro Theater - 2055 Union (Single-screen) (Open)

Clay Theater - 2261 Fillmore (Single-screen) (Open)

Vogue Theater - 3290 Sacramento (Single-screen) (Open)

Cinema 21 - 2141 Chestnut (Single-screen) (Closed)

Presidio Theater - 2340 Chestnut (Single-screen) (Closed)

Richmond District

Bridge Theater - 3010 Geary (Single-screen) (Open)

4-Star - 2200 Clement (Duplex) (Open)

Balboa Theater - 3630 Balboa (Duplex) (Open)

Coronet Theater - 3575 Geary (Single-screen) (Closed) (Future Senior Care Facility)

Haight / Inner Sunset

Red Vic Movie House - 1727 Haight (Single-screen) (Open)

Midtown Theater - 562 Haight Street (Single-screen) (Closed)

Sunset / West Portal

Surf Theater - 4520 Irving Street (Single-screen) (Closed)

Mission / Bernal Heights

Roxie Theater - 3117 16th (Single-screen) (Open)

Victoria Theater - 2961 16th (Single-screen) (Open)

Tower Theater - 2465 Mission (Single-screen) (Closed) (Church)

Grand Theater - 2665 Mission (Single-screen) (Closed) (Chinese import store)

Roosevelt / York Theater - 2789 24th (Single-screen) (Closed) (Brava Women's Theater Arts)

Del Mar Theater -5825 Mission (Single-screen) (Closed) (San Francisco Revival Center)

New Mission Theater - 2550 Mission (Single-screen) (Closed)

Wigwam / Crown / Cine Latino Theater - 2555 Mission (Single-screen) (Closed)

Castro

Castro Theater - 420 Castro Street (Single-screen) (Open)

Outer Mission / Excelsior / Ingleside

El Rey Theater - 1970 Ocean (Single-screen) (Closed) (Church)

Amazon / Apollo Theater - 965 Geneva (Single-screen) (Closed)

Bayview

Avenue Theater - 2650 San Bruno (Single-screen) (Closed)