Strada Faces Test for Proposed Embarcadero High-Rise

San Francisco’s long-running fight over waterfront height limits is headed for a legal stress test.

A 619-unit apartment project proposed by Strada Investment Group at 555 Beale Street is poised to challenge Proposition B, a 2014 voter-approved measure requiring public approval for waterfront projects that exceed existing height caps, the San Francisco Chronicle reported.

555 Beale Street (Grimshaw and Perry Architects)

Prop B passed with 59 percent of the vote and was billed as a guardrail against a so-called “wall on the waterfront.” It requires developments on Port of San Francisco-owned property, such as the parking lot near Oracle Park proposed for residences by Strada, to go to the ballot if they rise above established limits.

Strada’s proposal would create a 23-story tower, more than twice the site’s 110-foot height cap, without a citywide vote.The developer is leaning on Senate Bill 330, a 2019 state housing law designed to streamline approvals and override local barriers.

The project would include 94 deed-restricted affordable units and a land donation for roughly 100 more, positioning it to tap the state’s density bonus provisions, which allow developers to waive certain local development standards in exchange for building affordable housing.

Opponents, such as the San Francisco Waterfront Alliance of condominium owners, argue that SB 330 is being warped beyond its intended use for the Seawall Lot 330 project. The group has called on the City Attorney’s Office to defend Prop B and force Strada either to redesign the tower or seek voter approval.

“When San Francisco’s voters enact local legislation, they are entitled to have the City Attorney respect and defend that legislation,” Scott Emblidge, attorney for the Waterfront Alliance, said in a February letter to City Attorney David Chiu and Port General Counsel Michelle Sexton, urging the city to “respect the will of the voters.” “If a developer wants to erect a height-limit-busting tower on waterfront property, the developer can do so if, and only if, the developer asks the voters for permission.”

Chiu, in response said his office “will continue to defend the legality of ordinances approved by the voters or the Board of Supervisors.” “When the state legislature adopts statutes that purport to preempt local ordinances, we provide confidential advice to city policymakers about the implications of those statutes,” Chiu said, saying his team “identif[ies] legally defensible options to address the conflicts between state and local law.”

Strada partner Jesse Blout said the firm already trimmed 200 units from earlier iterations and could build larger under state law.

Strada is expected to submit a final application for the project in the coming weeks. After submission, the city will have 180 days to approve it under state law. Strada hopes to have all approvals by the end of the year.

— Chris Malone Méndez