Pagoda Palace Theater redevelopment approved
Robert Selna, Chronicle Staff Writer
Friday, January 9, 2009
(01-08) 20:24 PST -- A gutted hulk of an old movie house in the heart of San Francisco's North Beach took a big step toward a new life Thursday when the Planning Commission approved converting the building into condominium dwellings and a Mexican restaurant.
The Pagoda Palace Theater is at the corner of Powell and Union streets - directly across from Washington Square.
It opened as a first-run theater in 1908; by the 1980s, it was showing kung-fu movies; since 1994, it has remained vacant.
In recent years the Pagoda Palace has been the subject of a neighborhood spat over what should come next.
Restaurateur Joel Campos bought the building in 2004 and subsequently proposed a variety of projects - including a new theater. None of the ideas satisfied enough lenders, preservationists or neighbors to get off the ground.
Campos' most recent proposal for 18 condominium units above a large restaurant and bar ran into fierce resistance from critics who argued that its design was inconsistent with North Beach's unique character and a nearby historic district.
The theater has been stripped of nearly all of its original design features, and does not have any recognized historical value. The Telegraph Hill Dwellers neighborhood association and other groups, however, complained that Campos' proposed design was out of step with the prevailing Art Deco and Moderne styles common in the immediate area. They also wanted the building to contain a new theater and feature a marquee.
Other neighborhood merchants and residents wanted to see Campos' project move along and viewed the Telegraph Hill Dwellers - particularly member Nancy Shanahan, wife of former Board of Supervisors President Aaron Peskin - as NIMBYs who would never be satisfied. Shanahan did not return calls for comment.
As it stands, the proposed development would be a five-story structure with one-, two- and three-bedroom dwellings on the top four floors and a 4,000-square-foot restaurant and bar on the ground floor, along with some retail space. Twenty-seven parking spaces would be tucked into an underground garage.
"I am so relieved that this is finally done," said Campos, who said he has spent more than $2 million on the property's mortgage and on architects and lawyers. "We plan to get to work on this right away - getting permits and financing."
Barring any bureaucratic or legal delays, he said, work could start in three or four months.
With only Commissioner Hisashi Sugaya voting in opposition, the commission voted 6-1 in favor of the special permit needed to convert the former theater into housing and a large restaurant.
"I don't see a down side to this project," said Commissioner Bill Lee.
Although Campos' project has obtained the permit to move forward, the development is far from a sure thing.
It is widely believed that opponents will appeal the granting of the permit to the full Board of Supervisors, which would then have the final say. The board's new president is David Chiu, who represents North Beach.
Planning Commission President Christina Olague said Thursday that Chiu had called her Wednesday to try to have the vote on the Pagoda Palace's permit delayed for further review.
"Typically we try to accommodate supervisors' wishes, but this has been going on for so long and there are so many people who have been waiting for this hearing that I think we need to go forward," Olague said at the commission meeting Thursday.
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