7-story biotech plan in the works in South San Francisco

“I particularly like this design,” Planning Commission Vice Chair Sarah Funes-Ozturk said during a February meeting. “I love the light. In South City, that can be a little hard to come by, so I really like this design and getting as much light in as possible.”

Though vacancy rates continue wreaking havoc on the commercial real estate market, ongoing demand for developments suited to biotech’s research and development needs has not slowed down at the same pace as other office spaces. The project is spearheaded by Vigilant Holdings, the same firm responsible for two other recent South City commercial projects, including the eight-story 573 Forbes Blvd., currently in progress, as well as 101 Gull Drive.

It would also rank as one of the more lucrative developments for the city in terms of impact fee revenue, bringing in almost $16 million in such fees, which are one-time charges, separate from planning and permit costs, to fund key services and infrastructure projects, particularly those that are underfunded or don’t have a dedicated revenue source. Even some of the city’s larger projects over the last several years have typically generated less than $10 million in such fees. But between the proposed Eccles Avenue project and other recent developments — such as the 573 Forbes Blvd. and 580 Dubuque Ave. buildings — the steep fee amounts haven’t dissuaded many developers, who seem willing to pay a premium to be in what many consider the state’s life science capital. About half of the funds will go toward the city’s transportation services, and a quarter will be allotted to affordable housing funds, or commercial linkage fees.

The development will also comprise a detached 5 1/2-story parking garage accommodating about 450 parking spots, although based on the type of project, it must adhere to a maximum 60% of employees driving to work alone. The site will also have about 70 bicycle spaces and is located within walking distance to a SamTrans bus stop and Caltrain station. Commuters could also use the Genentech bus route, according to the applicant presentation.

“I commend you for not reducing the parking and not requesting a variance. You keeping to the code is evidence that it can be done, and it’s very important to me that that was met,” Commissioner Michele Evans said to the applicant.

The project received unanimous support from the Planning Commission.