Preservation Commission Backs Four Mills Act Tax Breaks, Ingleside Terraces Bid

San Francisco's Historic Preservation Commission spent nearly an hour Oct. 21, 2026, testing the money behind four Mills Act property tax contracts. The sharpest scrutiny went to UC Law San Francisco's student-housing tower at 100 McAllister Street. The commission sent all four contracts to the Board of Supervisors, backed a contested National Register bid for Ingleside Terraces and approved every item on its agenda without a single "no" vote.

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• Four Mills Act contracts recommended to the Board of Supervisors, two with recusals
• Ingleside Terraces National Register nomination backed 6-0, despite staff's push for a parallel local district
• 555 Pacific Avenue glass storefront approved with conditions protecting a historic cast-iron column
• Marina survey flags 35 historic resources and two new Art Deco districts
• Eight long-running businesses recommended for the Legacy Business Registry

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Four Mills Act Deals Head to Supervisors

The basics: Mills Act contracts lower property taxes in exchange for preservation commitments. They run as 10-year revolving contracts. The city holds 51 active contracts. This year's applications were due May 1.

Why it matters: The four buildings carry rehabilitation estimates that range from $678,000 to more than $90M. Each tax break now needs approval from the Board of Supervisors.

Where things stand: Staff reported these estimated rehabilitation costs:

• 1-25 Montgomery St., a landmark bank building: more than $4M
• 67 Potomac St., an 1899 Queen Anne in the Duboce Park district: $678,000
• 100 McAllister St., a 1930 tower: more than $90M
• 2261 Fillmore St., the Clay Theatre: more than $3M

Sponsors framed the contracts as what makes the work possible. "It helps to offset the financial burden of rehabilitating a historic building and sustaining its care over time," said Cody Allen, executive director of the Upper Fillmore Revitalization Project, speaking about the Clay Theatre. Allison Posey, homeowner at 67 Potomac, said the program made possible "the real investment that it was going to take to bring this home back up."

The assessor's office added a key caveat. Savings depend on a property's market value, not on how much an owner spends. "It is not contingent on the money that's spent," said Robert Spencer, Deputy Chief Appraiser, Assessor-Recorder's Office.

The McAllister questions: Commissioners pressed on how a state-linked owner, for-profit tax credit partners and low student rents fit together with a property tax reduction. David Seward, Chief Financial Officer, UC Law San Francisco, said the project cost is well north of $250M. "The $90 million referred to was a State of California grant," Seward said.

Seward said Mills Act approval helps maximize federal historic tax credit financing and keep student rents low. Income from the building would also help offset debt on the school's 198 McAllister project. Permits for the work come from the State Fire Marshal.

Spencer said the Mills Act value would start at $13.27M, compared with a factored base year value of $2.9M. He called the project "what we call in the appraisal world an overinvestment to its fair market value."

The other side: No one opposed the contract. Instead, a longtime critic of UC came out in favor. "San Francisco Heritage and the preservation community has had a contentious relationship with UC on a number of projects, but so far we love this one," said Woody LaBounty of San Francisco Heritage. An aide to Supervisor Bilal Mahmoud, Raynell Cooper, also spoke in support. "This is not just a fresh coat of paint. It's a full seismic retrofit that requires rebuilding the core of the building," Cooper said.

Decisions and stakeholder impacts:

• 1-25 Montgomery: For: 5, Against: 0, Absent: 1 (Foley). Commissioner Barone recused.
• 2261 Fillmore: For: 5, Against: 0, Absent: 1 (Foley). Commissioner Baldoff recused.
• 67 Potomac and 100 McAllister: taken together. For: 6, Against: 0, Absent: 1 (Foley).

Property owners gain long-term tax relief. UC Law gains another piece of its financing package, which centers on its Tenderloin "Academic Village."

What's next: All four contracts go to the Board of Supervisors.

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Ingleside Terraces Wins Backing Over Staff Objections

Why it matters: The resolution sends the commission's support to the State Historical Resources Commission, which takes up the nomination Nov. 12-13. The vote came despite a public split between Planning staff and neighborhood sponsors over how the district should be protected.

Where things stand: Staff agreed the district is significant under National Register Criteria A and C. It includes 638 contributing buildings and one site, dating from 1911 to 1937.

Staff still wanted more. "However, we'd ask for consideration that the district be pursued in addition under our local process," said Rich Sucre, Planning Department staff. Staff also flagged possible boundary adjustments. It warned that parcels along Ocean Avenue could conflict with state housing streamlining.

The other side: Sponsors said they had followed staff's earlier advice. "So for the past 2 years, planning staff has repeatedly and consistently discouraged us from pursuing local landmarking," said Monica Morse of the nomination's sponsor and author team. The sponsors defended their boundary with a Page and Turnbull opinion.

San Francisco Heritage sided with the neighborhood. "It doesn't make any sense to change the boundary at this point," said LaBounty.

Two board members of the Ingleside Terraces Homes Association urged adoption:

• Jackie Fletcher cited years of volunteer and financial effort and door-to-door support.
• Robert Ho pointed to bilingual English and Chinese outreach. "I'm very proud that our application resonated with people throughout our diverse neighborhood and brought us all together across cultures," Ho said.

Director Dennis Phillips of the San Francisco Planning Department acknowledged the community's pain over the department's shift. "And I just wanna own some of that with a change in leadership," Phillips said. Speakers also acknowledged the racially restrictive covenants in the neighborhood's history. LaBounty cited its later integration.

Decisions and stakeholder impacts: Commissioner Cox supported the resolution as written. "I do feel like this is a cultural landscape," Cox said. The commission accepted her added finding, which urges state reviewers to count landscape features in future residence park district designations.

The resolution passed. For: 6, Against: 0, Absent: 1 (Foley). The sponsors got their unaltered boundary, while the Ocean Avenue housing question goes unresolved.

What's next: The State Historical Resources Commission takes up the nomination Nov. 12-13.

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Jackson Square Storefront Clears, With Column Strings

Where things stand: 555 Pacific Ave. is a 1907 contributory building in the Jackson Square Historic District. It has been vacant for more than five years, with a 1992 wrought iron security fence enclosing its recessed entry.

The plan replaces that fence with frameless glass and double doors. It also restores hexagonal floor tile and relocates two pairs of historic doors. Staff found the plan consistent with Article 10 of the city's planning code and the Secretary of the Interior's Standards. San Francisco Heritage supported it.

The sponsor's architect stressed that the change can be undone. "This is a system that can be reversed, leaving the building's historic elements entirely intact," said David Marlot of DNM Architecture.

The other side: Commissioner Chen-Strang wanted the glass set back from the cast-iron column. "I think that it would be a much clearer delineation between the new and the old if it can be held back away from it," Chen-Strang said.

Marlot said a setback was feasible but warned it would create a gap "that you can't clean, that's going to collect debris." Commissioner Baldoff left the fix to the design team: "We would like the 3-dimensional quality of the column to read from the exterior and leave it to you to figure out how to achieve that."

Commissioner Barone urged early study of door swing and encroachment permits. Baldoff asked for interpretive history on site.

Decisions and stakeholder impacts: The sponsor accepted two conditions. Staff will refine the storefront design so the column's three-dimensional quality reads from outside. The commission also encouraged an interpretive panel or exhibit.

Commission President Matsuda called it "probably one of the most comprehensive certificate of appropriateness packages I've ever seen." The vote: For: 6, Against: 0, Absent: 1 (Foley).

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Marina Survey Adopted; Safeway Left Hanging

Where things stand: Staff surveyed 606 Marina commercial properties:

• 35 historic resources
• 471 not resources
• 52 not evaluated
• 48 pending

The survey also identified two new Art Deco districts, at Chestnut and Avila streets and at Chestnut and Steiner streets. The findings flag properties for extra environmental review without landmarking them. "Historic status does not prohibit development," said Maggie Smith, Planning Department staff.

The other side: Baldoff and Chen-Strang questioned why the Marina Safeway parcel was left out. "I think it is inappropriate not to actually flag it for what it is," Baldoff said. Smith replied that the site's status depends on a pending Public Art and Monuments context statement. "We marked it as pending historic context statement," she said.

Decisions and stakeholder impacts: No public comment or opposition letters were noted. The findings were adopted. For: 6, Against: 0, Absent: 1 (Foley).

Revival styles, still in edits: The commission also adopted a citywide context statement on 20th Century Revival Styles from 1900 to 1950. A context statement is a framework staff use to evaluate buildings; this one covers 10 styles organized into nine themes. Public commenter Georgia Schutish asked that barrel-front Mediterranean Revival homes, built about 1926 to 1931, be highlighted as a San Francisco-specific subset.

Cox said she had submitted substantial comments and found inconsistencies. Baldoff proposed a path forward: "We can approve it, but know that you're going to do this editing process together." Staff agreed to resend the revised document for review. The statement passed. For: 6, Against: 0, Absent: 1 (Foley).

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Eight Businesses Move Toward Legacy Status

The commission recommended all eight Legacy Business Registry applications to the Small Business Commission. The vote was For: 6, Against: 0, Absent: 1 (Foley). The businesses are:

• Alamo Square Cleaners, operating since 1968
• 17th Noe Market, operating since 1987
• San Francisco Tsunami Aquatics, described as the world's oldest gay community swim club
• Sackett Design, a 36-year-old branding firm
• Micro-Tracers, a Bayview manufacturer operating since 1961
• Mars Bar and Restaurant, at a South of Market site used as a bar since the early 1900s
• Growney Dental Group, a three-generation practice founded in 1926
• Duxwell Printing, one of only five Chinatown print shops

Staff debuted a shorter packet format. "We've developed a more streamlined method for review," said Sucre. The new format aims to clear a backlog of pending applications. No public commenters spoke.

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Minor Items

• Planning-DBI merger: If Proposition F passes, a unified Planning and Building Inspection department would target July 1, 2027. Phillips said commission oversight would not change.
• San Remo Hotel concerns: Historian Brevetti urged permit checks on plans to convert Fior d'Italia's banquet room into a hotel lobby. Staff will follow up.
• Grant Monument letter: The item was continued to Dec. 2, 2026, by a 6-0 vote, pending an Arts Commission presentation.
• Section 106 letter: The commission's comment letter went to the governor and state and federal officials ahead of the federal comment period.
• Minutes: The Sept. 16, 2026, minutes were adopted 6-0.

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Looking Ahead

The State Historical Resources Commission considers Ingleside Terraces Nov. 12-13. The Grant Monument letter returns Dec. 2, and all four Mills Act contracts now go to the Board of Supervisors.