WILLIE BROWN'S BOARD of Appeals is on its way out, thanks to a measure approved by voters that gives the Board of Supervisors more say in the composition of the powerful, little-known body. But the appeals board members are apparently rushing to squeeze in a multimillion-dollar handout to office developers.

Last week the board determined that the huge Western Merchandise Mart site, which houses a furniture showroom, is being used not as "display showcase space" but as office space. That ruling allows the Market Street building's owner to renovate it into offices without paying city fees for housing, transportation, and child-care programs – possibly shutting the city out of $25 million it could otherwise collect.

In keeping with its pro-developer bias, the Brown administration has been consistently lax about collecting impact fees. That's just one reason voters opted to check the mayor's power over the planning process. But until the supes' appointees take their seats on the appeals board, elected officials are considering ways to remedy the decision. City Treasurer Susan Leal, to her credit, has taken the unusual step of publicly calling on the Board of Appeals to reverse its vote. And some supervisors have asked City Attorney Dennis Herrera to research the city's legal options – up to and including suing the appeals board.