It's taken nearly 20 years to get to this point, as Scott's Seafood has repeatedly failed to comply with orders set down by the San Francisco Bay Development Commission and the commission has done little about it.
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The issue is a pavilion, first erected by Scott's as a canvas structure in 1997.
In 2013, Scott's added metal doors and retractable walls and has repeatedly exceeded the 73 events per year currently allowed by the commission.
"I think Scott's overstepped. And a flagrant violation frankly of the rules," SF Bay Conservation and Development Commission spokesperson Greg Scharff said.
Last year, Scott's and the commission staff reached a settlement and the restaurant would pay a $250,000 fine. But the full BDCD commission rejected the deal and tripled the fine.
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Now the committee is recommending the fine be reduced to $395,000.
"I think we need to discuss with staff whether we're going to accept this or we're going to have to contest it at the full commission hearing. But at least we're happy it's not 841," Scott's attorney Michael Verna said.
"This is disappointing. It's a big fine and they deserved a bigger fine for flagrantly violating BDCD's permit for years," Save San Francisco Bay's David Lewis said.
The full commission will vote on the issue at its meeting in early April.