Updated: Pinterest's deal to move into 2 Henry Adams Street is pretty much dead. Today, the Board of Supervisors' Land Use & Economic Development Committee voted to table the building's request for landmark designation indefinitely, according to the Chronicle.
Supervisor Malia Cohen cited concern about 15 similar buildings, which are also zoned as production, distribution and repair (PDR), trying to gain landmark designation and convert to office space. "This isn't in the spirit of the code or the landmark legislation," Cohen said. "We are not talking about one building, but 15."
Cohen sponsored the property's landmark legislation, but was ultimately uncomfortable with the fact that Pinterest's move would displace many small businesses. She said she has no plans to revive the measure. A representative for Bay West Development—the company that manages the property for the owner, RREEF—said it would continue to attempt to find a compromise.
Pinterest is trying to sweeten the deal for San Francisco Design Center tenants it will displace, if it takes over the majority of as its headquarters.
The social media company has offered to pay first and last month's rent for small businesses relocating from the 250,000 square feet it’s looking to rent, reports the San Francisco Business Times, which calls it a “pre-emptive move.”
As SFist previously reported, the building’s owner filed to get an exemption from its current zoning of production, distribution and repair (PDR) due to it being a landmark, which would allow it to bring in regular office tenants at higher rents.
District Supervisor Malia Cohen responded by delaying the landmark designation status, and introducing legislation that would make it tougher for it and any other PDRs to be quickly converted into office space.
Cohen’s legislation requires “interim zoning controls” to ensure existing tenants will be relocated within an 18-month period. The interim zoning controls may also determine how many floors of a building can be rezoned from PDR to offices.
At a meeting scheduled for today, July 7, the Land Use and Economic Development Committee was set to review both the proposal to give 2 Henry Adams Street landmark designation and Cohen's proposal of additional requirements. SFist has reached out to the committee for an update.
In a statement, Pinterest’s general counsel Mike Yang said the company is “supportive of the landlord’s decision to honor all leases, offer qualified relocation packages, and provide onsite brokerage services free of charge” and wants to be “a great neighbor to those in the district.”