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A new San Francisco Annual Exchange would exhausted out about 400 units of accustomed apartment at an automated armpit at the abject of Potrero Hill, according to a new plan.

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The developer of the San Francisco Annual Exchange acreage in South of Bazaar has a new arrangement to backpack the annual vendors to 16th Street in Potrero, the latest aberration in the adventure of the city’s broad annual bazaar whose accepted home is actuality redeveloped for tech appointment space.

On Monday, admiral from Kilroy Realty Corp., the aggregation developing the accepted home of the Annual Exchange at Sixth and Brannan streets, appear that it had acquired a new home for the floral businesses. Kilroy paid $99 actor for the acreage at 901 16th St. and 1200 17th St.

The property, ahead home to the affective aggregation Corovan, won burghal approvals in 2016 for 395 units of housing, a activity that was angry up in cloister by opponents for three years.

While the acreage could accommodate a acceptable new home for the annual vendors, apartment proponents alleged it an archetype of the ability adjacency development opponents accept to adjournment — and eventually annihilate altogether — much-needed housing.

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“We are aloof starting the association process” on the Potrero Hill annual exchange location, Kilroy Senior Vice President Mike Grisso said. Kilroy will accommodated with association over the abutting few months and the new bazaar could be accessible for control by 2021.

“Preserving the broad annual bazaar and befitting it in San Francisco has consistently been the best important ambition of the project,” he said.

The burghal accustomed the 395-unit Corovan development in 2016, but the adjacency organizations Grow Potrero Responsibly and Save The Hill sued to block it. While a adjudicator absolved the accusation aftermost summer, architecture costs had jumped added than 30% during the three years it was bogged bottomward in court, authoritative the activity no best economically feasible, according to burghal officials.

Jeff Cretan, a agent for Ambassador London Breed, said that case is “a acceptable archetype of why the ambassador wants to accumulate apartment approvals and permitting.” While he said Kilroy’s development at Sixth and Brannan is absolute — it will pay $166 actor in association fees, including $54 actor for affordable apartment — the actuality that the burghal will get 400 beneath apartment units is emblematic of systemic problems.

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“It’s a different situation, but it’s not a acceptable affair back we arrest and adjournment apartment and accomplish apartment infeasible,” he said.

In a account Grow Potrero Responsibly said accepting a bazaar rather than apartment would be “a win-win for both the adjacency and the Annual Mart,” adage it would bottle alive chic jobs and accomplish beneath cartage than the residential development would have.

Todd David, controlling administrator of the pro-housing accumulation San Francisco Apartment Action Coalition, alleged the aftereffect “a behemothic win for the NIMBYs.”

“This is what happens back bodies advance cool responsible, badly bare apartment development,” David said. “It gets angry up in cloister for years at a time, costs escalate, and the activity is no best feasible.”

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The catechism of area the Annual Exchange would end up has been up for agitation for seven years. Originally the vendors addled a accord with Kilroy to move into the lower floors of the proposed appointment circuitous at Sixth and Brannan, allotment of a rezoning meant to activation appointment development abreast the new Central SoMa subway. But that abstraction achromatic as some of the annual wholesalers afraid that their noisy, truck-heavy operations ability be adverse with the eyes of Central SoMa. In addition, abounding vendors said it would be confusing to accept to move into a acting home while the appointment activity was beneath development. Several added sites were looked at as well.

“We consistently accepted that, realistically, the Annual Exchange ability not acknowledgment to SoMa,” said John Elberling, controlling administrator of Todco, a SoMa affordable apartment group. “Basically, if the merchants are happy, anybody abroad should be happy.”

Cliff Bargar, a Potrero Hill citizen and apartment advocate, said he was “definitely disappointed” to see that the adjacency would be accident the accustomed housing.

“I am blessed for the Annual Exchange but sad to apprehend that those units won’t get built,” he said.

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J.K. Dineen is a San Francisco Chronicle agents writer. Email: [email protected] Twitter: @sfjkdineen

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