Within the Castro Neighborhood Commercial District, Nighttime Entertainment is allowed with a Conditional Use authorization on the first floor of a building and is not permitted on the second story or above.

The Proposed Legislation would allow Nighttime Entertainment with a Conditional Use authorization on the second floor, while keeping the use not permitted on the third floor or above. Additionally, it includes a proposed modification to remove non-residential use size limitations for Article 10 Landmarks in the Castro NCD.

The measure is expected to benefit struggling commercial businesses and potentially reduce the number of storefront vacancies in the Castro NCD by allowing uses such as Entertainment, Personal Service, and Eating & Drinking Establishments on the second floor, which are experiential in nature and known for bringing in tourists and locals alike.

The Castro NCD serves both residents and regional/national visitors with a vibrant mix of uses. Due to the pandemic and changing retail sector, businesses that have remained profitable are those that offer experiential services. The amendments support a mix of retail, which enables the neighborhood to continue meeting the needs of residents and attracting visitors. The proposed ordinance and its modifications are in line with objectives and policies of the General Plan, which seek to maintain and enhance the city's economic base and social climate.

The ordinance amends the zoning controls and includes findings consistent with the General Plan and the eight priority policies of Planning Code Section 101.1, as well as findings of public necessity, convenience, and welfare under Planning Code Section 302. The approval included recommendations with modifications by the Historic Preservation Commission and the Planning Commission.

A Conditional Use Authorization (CUA) process will ensure that each proposed new Nighttime Entertainment use can be reviewed on a case-by-case basis to determine its appropriateness for the neighborhood in its specific context.