[lkb2k]

Doesn't that normally start with a pilot to determine what rules are good?

It seems like if you want to come up with a permit process and rules, rather than just making them all up at once you'd grant permission to a small group for a limited period to figure out what rules make sense, then write the rules, then open up the permitting process.

When selecting the pilot group it also makes sense to try to find partners that are likely to co-operate and be responsive to your requirements rather than companies with long histories of completely ignoring local laws.

You're right that SF has a history of abusing permits in the interest of Nimby-ism -- see the 'war on fun' for one example -- so I do agree it could all turn out terribly in the end, but that doesn't make this an unreasonable start.