Wietgrefe, Wade

From: Sent: To: Cc:

I.Obeysekere@kp.org Tuesday, September 04,2012 2:45 PM Sanchez, Scott Fu, Ben; kenneth.j.rich@gmail.com; Rich, Ken; Wertheim, Steve; Wietgrefe, Wade; Jones, Sarah; sgregory@lamphier-gregory.com; Abigail.Oliver@nsmtp.kp.org; HOBSTETTERQkrnd-arch.com; Anna.Shirnko@sedgwicklaw.com; Carneron.White@nsmtp.kp.org; Jay.Murphy@nsmtp.kp.org; jsrnith@waldendevelopment.corn; SVettel@fbm.com; Alexander.M.Herr@nsmtp.kp.org New: Code Confirmations & Clarifications For Proposed Uses at New KP MOB at 901 16th Street

Sent via E-Mail

Mr. Scott F Sanchez Zoning Administrator San Francisco Planning Department 1650 Mission Street, Suite 400 San Francisco, CA 94 103

Dear Mr. Sanchez:

As you know, the Kaiser Permanente project team has been working to finalize the character and allocation of uses within Kaiser's proposed medical services building at 901 16" Street. In doing so, we have relied in part upon your prior emails dated February 29,2012 (forwarded by Ken Rich on March 1,2012) and March 9, 2012. We now seek your input on Kaiser's proposed uses that we believe should be 1) considered "non-office uses" and 2) otherwise permitted within the UMU District as independent, principal uses. Once we have confirmed with you that we have accmately characterized these uses we will request a final Letter of Determination to formalize all of the interpretations, confirmations and clarifications shown as Items 1-3 in your February 29 and this e-mail.

Much of the space in the new Kaiser Permanente Potrero Hill services building will contain uses that we have already determined should be characterized as "medical services" under the Planning code pursuant to our prior email exchanges with you. (Under Section 890.1 14, medical services are "generally an office use".) However, there are a number of retail and other non-ofice uses as to which we now seek clarification, as summarized below and explained in more detail in the following pages:

Use Expected Location within Kaiser Building Approximate Square Footage Caf6 Healthy Living Store Pharmacy Vision Essentials Building Services Support Laboratory Cosmetic Services

First Floor 1,138 First Floor 2,156 First Floor 4,271 First Floor 7,079 First Floor

Second Floor 3,683 Fifth Floor 2,042

I I have also asked our architects at KEvBD to send you under separate cover the preliminary floor plans for the Kaiser Permanente Potrero Hill medical ofice building providing more detailed information on the location of these uses in the Kaiser building. I

The following non medical services uses will be located on the first floor of the Kaiser building:

a. The Caf6 1

The 1,138 sf ground floor caf6 will provide food and beverages for sale to employees, visitors, and members of the general public, including the residents of the adjacent Potrero Partners residential development. The cafk will likely be operated by a third party vendor.

We believe that the applicable Planning Code classification would be "Retail Sales and Services" (PC tj 890.104), which is defined as a "commercial use which provides goods andor services directly to the consumer and not for resale and is accessible to the general public."

I According to the UMU Mixed Use Zaning Control Table, "Retail Sales and Services" are permitted within UMU Districts pursuant to Planning Gode Section 843.45, though they are subject to size and formula retail controls. Thus, the Cafk use is within the UMU District but will require conditional use approval should it be a formula retail cafe. I b. The Healthy Living Store I The 2,156 sf Healthy Living Store wiW carry a wide variety of products (including books, cookbooks, videos, workout DVDs, meditation CDs, and kxercise aids such as pedometers, yoga mats and straps) to promote the health and well-being of the communijty. It will also provide information and booking of health education classes, internet access to sites with current and reliable health information, and tip sheets on various health topics. The Healthy Living Store is open to the general public.

We believe that the applicable Planning Code classification would be "Retail Sales and Services" (PC 5 890.104), which is defrned as a "comrhercial use which provides goods andlor services directly to the consumer and not for resale and is accessible to the general public."

According to the UMU Mixed Use Zoning Control Table, "Retail Sales and Services" are permitted within UMU Districts pursuant to Planning Code Section 843.45, though they are subject to size and formula retail controls. Thus, the Healthy Living Stbre use is permitted within the UMU District, but would require conditional use approval if it is deem& a formula retail use.

c. The Pharmacy I The 4,271 sf pharmacy is located on the first floor of the building and will fill and sell prescriptions generated by the on-site Kaiser Permanente health care operations. The Kaiser pharmacy will also sell over the counter drugs and health aids to the general pdblic similar to other retail pharmacies and is open to the general public.

I We believe that the applicable Planning Code classification would be "Retail Sales and Services" (PC $ 890.104), which is defined as a "commercial use which provides goods andor services directly to the consumer and not for resale and is accessible to h e general public."

According to the UMU Mixed Use Zioning Control Table, "Retail Sales and Services" are permitted within UMU Districts pursuant to Planning Code Section 843.45, though they are subject to size and formula retail controls. Both because of its size and because the Pharmacy may be considered a "formula retail" due to the many pharmacies within Kaiser Permanente facilities, we believeit will require a conditional use authorization.

I d. The Vision Essentials Store

I The 7,079 sf Vision Essentials store wilI provide one-stop, total eye care, similar to LensCrafters or Pearle Vision stores. The store will sell an extensive selection of prescription eyewear, contact lenses, sunglasses, industrial safety eyewear, magnifying aids and related supplies to both Kaiser members and non-members. In addition to the sales staff and opticians, as is often the case with LensCrafters and Pearle Vision stores, contact lens fitters, optometrists, andlor ophtlBalmologists would be available to assist customers with eye exams and glasses and contact lens fittings. This store will be open to the general public.

We believe that the applicable Planning Code classification would be "Retail Sales and Services" (PC 5 890.104), which is defined as a "commercial use which provides goods and/or services directly to the consumer and not for resale and is accessible to the general public."

According to the UMU Mixed Use Zoning Control Table, "Retail Sales and Services" are permitted within UMU Districts pursuant to Planning Code Section 843.45, though they are subject to size and formula retail controls. As the Vision Essentials stare does not fit the definition of "formula retail" use due to the few locations within the Kaiser Permanente system, we think it is permitted within the UMU District but will require a conditional use permit due to its size.

e. Miscellaneous Building Support

There are several "back of the house" operational support uses to support the entire building that-are accessory to the other principal uses in the building and for functional reasons are located on the first floor of the building, as follows:

Misc. Bldg. Support, incl. circulation, vert transport/stairs, electrical, exterior wall: 8,258 sf Clinical Technology support: 222 sf EVS (environmental services, including compliance with federal, state, and local environmental

regulations): 843 sf; Facilities Management: 560 sf IT closets: 1,356 sf Mail room: 117 sf Materials handling: 1,3 13 sf Security operations: 72 sf Bicycle parking area, including exercise space, showers and locker rooms for bike riders: 690 sf

None of these building support uses fi-onts 1 6h Street, but rather they are generally at the rear of the first floor, where they are essentially below grade as the site slopes uphill from 16" Street. We do not believe the UMU district's prohibition on ground floor office uses prohibits these accessory building service uses from locating on the ground floor of a multi-use building, where for functional reasons they need to be located, just as there is no prohibition on an office lobby being located on the ground floor.

11. The following non-medical services uses will be located on the second floor of the Kaiser Building:

a. Support Laboratory.

The 3,683 sf second floor Support Laboratory will collect specimens in the outpatient environment, and coordinate all tests ordered by physicbs (including all blood and body fluid tests) on an outpatient basis. These tasks would include: receipt of test orders, procurement and registration of specimens, coordination of transfer for testing, add communication of results to clinicians who need them. While many of the specimens collected would be sent out of the building to other laboratories for testing, some testing could be conducted with the use of one or more machines located within the laboratory. Since most of the testing will happen at on site stations, the Support Laboratory would function similarly to a "Quest Diagnostics" or "Labcorp" stand-alone laboratory.

We believe that the applicable Planning Code classification is "Laboratory" (PC 5 890.52), which is defined in pertinent part as: I

I Laboratory shall mean space within any structure intended or primarily suitable for scientific research. The space requirements of uses within this category include specidlized facilities andlor built accommodations that distinNsh the space from office uses (as defined in Section 890.70), light manufacturing (as defined in Section 890.54(a)), or heavy manufacturing (ihcluding uses listed in 226(g) through 226(w)). Examples of laboratories include the following:

I (f) Support laboratory.

As noted above, the Support ~aboratoiy would support the medical services within the building by coordinating and undertaking outpatient testing and specimen analysis. The Support Laboratory would have specialized facilities and built equipment to accommodate these activities. Thus, the Support Laboratory fits within the definition of a "Laboratory" in Planning Code Section 890.52.

All laboratories other than "life science"-laboratories are permitted in UMU Districts (PC $ 843.86). "Life Science" is defined as "an industry that involves the integration of natural and engineering sciences and advanced biological techniques using organisms, cells, and parts thereof for products and services" (see PD 5 890.53). Since the Support Laboratory is not a "life science" laboratory, it is permitted within the UMU District.

111. The following non-medical services uses will be located in the fifth floor of the Kaiser Building:

a. Cosmetic Services.

The 2,042 sf 5Lh floor Cosmetic Services salon will be open to the general public. Many of the products and services that this unit would provide would be akin to those offered by ULTA Beauty Salons (www.ulta.com) throughout the United States. The Cosmetic Services store would sell a broad range of skincare products, including ColoreScience, Kinerase, Obagi, ProCyte, SkinCeuticals, and Topix. No surgical services would be undertaken in this space.

The services provided are expected to include:

Skincare services such as chemical peels, corrective make-up consultations, extractions, facial waxing, facials, make-up consultations, microdermabrasion, ObagiB consultations, skin care consultations, and vibraderrnabrasion; and

Laser and non-surgical services such as BOTOXB, cosmetic removal of moles & skin tags,

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Endermologie@ cellulite treatment, fat injections (liposculpting), Brazilian wax treatment, fillers (e.g. JUVEDEIUWB, Restylane@), Fraxel Re:Pair laser treatment, Fraxel Re:Store laser treatment, IPL photo rejuvenation, laser hair removal, laser removal of brown spots, laser skin resurfacing, laser tattoo removal, laser vein treatment, scar revision, and sclerotherapy. We believe that the applicable Planning Code classification would be "Personal Service" (PC 9890.1 16), which is defined as: -. -

A retail use which provides grooming services to the individual, including salons, cosmetic services, tattoo parlors, and health spas, excluding massage establishments subject to Section 21 8.1 of this Code located within South of Market Districts, or instructional services not certified by the State Educational Agency, such as art, dance, exercise, martial arts, and musk classes, except that in the South of Market Districts, arts activities falling within Section 102.2 shall not be considered personal services.

The Cosmetic Services salon would h c t i o n similarly to a salon or spa that provides cosmetic services. No medical or allied health services would be provided, and skincare products would be sold at retail prices. Thus, the activities of the Cosmetic Services unit are best characterized as Personal Services.

The UMU Mixed use Zoning Control Table categorizes "Personal Services" as a subset of "Retail Sales ana Services" (see the third column of PC 8 843.45). According to the UMU Mixed Use Zoning Control Table, "Retail Sales and Services" are permitted within UMU Districts pursuant to Planning Code Section 843.45, subject to size and formula retail controls. Thus, the Cosmetic Services use is permitted within the UMU District, but would require conditionall use approval if it is deemed a formula retail use.

We appreciate the consideration extended to date by you, Ken Rich, Steve Wertheim, Ben Fu and others within the City and your efforts to help us provide more convenient health care to the Eastern Neighborhoods community. Please feel free to contact Jay Murphy or me directly with any follow up questions.

Regards

Indrajit Obeysekere, Esq. Legal and Entitlements Kaiser Permanente

lndrajit Obeysekere, Esq. Legal and Entitlements National Facilities Services Kaiser Foundation Health Plan, Inc. Kaiser Foundation Hospitals 1800 Harrison Street, 19th FI. Oakland, CA 94612 i.obeysekere@kp.org Cell/Text: (510) 701-2372 Wk: (51 0) 625-6405 Fax: (51 0) 625-2647 "The best Sri Lankan business lawyer at Kaiser!" (From anonymous client review)

Executive Assistant: Linda Walker One Kaiser Plaza, 19th FI. Oakland, CA 94612 (51 0) 271-6869

*This communication does not constitute an intention by the sender or the sender's employer to enter into a binding

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