Renovations to a currently unused 572,000-square-foot warehouse and five smaller buildings in South San Francisco will soon receive a $23 million facelift after San Bruno’s appeal against the project was dropped.

Chicago-based Centrum Properties’ $23 million plan to renovate the existing building and add additional space in South San Francisco now has a green light to pull building permits. The location, which borders San Bruno, originally raised concerns by neighbors worried about residential traffic. Those concerns led San Bruno to appeal the Planning Commission’s approval. Centrum and San Bruno officials worked to lessen traffic impacts, resulting in the withdrawal of the appeal.

“The main concern was truck traffic on San Bruno streets,” said San Bruno City Manager Connie Jackson. “The agreement satisfies the city’s interests.”

As part of the agreement, the city of San Bruno will receive a payment of $300,000 for project-related traffic improvements and Centrum will alter the project’s driveway plans to restrict trucks larger than 37 feet on San Bruno streets while still accommodating safety personnel accessibility, Jackson said.

South San Francisco Mayor Karyl Matsumoto was also pleased with the agreement.

“Needless to say, it’s not a good thing when cities are at odds. I’m glad they were able to resolve the issue. I think this is a good project,” Matsumoto said, who added it should bring jobs and an economic stimulus to the area.

Still, South San Francisco, San Bruno and Centrum will monitor traffic impacts.

“I hope the pluses outweigh the minuses,” said Matsumoto.

A detailed project impact study, done prior to the new mitigation changes, found a significant increase in the use of San Bruno Avenue ramp off Highway 101 and San Mateo Avenue.

Michael McLean, vice president for development of Centrum Properties, previously told the Daily Journal of plans to design the facility entrance in such a way that large trucks could not enter or exit toward San Bruno.

San Bruno was concerned such a barrier would affect trucks 45 feet or greater but was unsure how many smaller trucks would use the site. The agreement, Jackson said, alleviates those concerns.

Combining two sites, 1070 and 1080 San Mateo Ave. in South San Francisco, will create a 25-acre location including remodeling a 571,000-square-foot, single-story warehouse and distribution building at 1070 San Mateo Ave. for multi-tenant use; and building five new single-story buildings, with square footage ranging from 9,100 to 12,000. Properties are open to be used for a variety of possible industries.

Both cities could see a financial boost from the project, according to a direct economic benefits report conducted by Centrum consultant Brion and Associates. Once complete, the new center will create 740 new jobs. Employees are estimated to spend $4.1 million annually — about $3 million in San Bruno and $1 million in South San Francisco.

Matsumoto commented, “This is much better than a stimulus plan because it’s not one time.”

Heather Murtagh can be reached by e-mail: heather@smdailyjournal.com or by phone: (650) 344-5200 ext. 105.