California Construction News staff writer
San Francisco has approved legislation to advance a transformative new development at 530 Sansome St. Cosponsored by District 3 Supervisor Danny Sauter, the legislation authorizes a development agreement to deliver a new state-of-the-art fire station; a 41-story mixed-use tower with office, hotel, retail, and restaurant uses; and a reimagined public plaza between Sansome Street and Battery Street.
In September, Mayor Lurie unveiled his “Heart of the City” plan, leveraging more than $40 million in initial investments to create a safe, clean, and activated neighborhood. The mayor took immediate action to turn around downtown, launching the San Francisco Police Department Hospitality Zone Task Force to revitalize critical commercial districts and improve public safety. Crime is down more than 40% in Union Square and the Financial District. More downtown office space is being leased and workers are returning to the office more quickly in San Francisco than in any other major city.
“Downtown drives San Francisco’s economy, and a thriving downtown where people can live, work, play, and learn will be key to our city’s comeback,” said Lurie. “With the support of Supervisor Sauter, we’re signing this legislation and delivering new spaces for residents and visitors, while taking advantage of innovative tools to support public safety. Our administration is setting ambitious goals and thinking creatively about how to achieve them, and that’s what it will take to make San Francisco the greatest city in the world again.”
The 530 Sansome development will use an innovative financing mechanism to offset the construction costs of the new fire station based on a percentage of actual revenue collected from new hotel taxes, without any upfront investment of city capital dollars. The completed project is expected to generate more than $800 million in annual economic activity and includes nearly $15 million paid prior to construction to support the creation of 100% affordable housing.
A public-private partnership with Related California and will deliver a vibrant mix of daytime and nighttime uses on a key site at the edge of the Financial District near Jackson Square. Spanning approximately 24,830 square feet, one block east of the Transamerica Pyramid and one block west of One Maritime Plaza, the project includes a 41-story, 544-foot-tall mixed-use tower containing up to 390,000 square feet of office space along with a restaurant and meeting spaces, up to 200 hotel rooms, and below ground, three levels of parking and bike storage.
“Related is proud to reach this major milestone in collaboration with the city to reimagine a quiet corner of the Financial District and Jackson Square as a vibrant new destination,” said Gino Canori, President of Related California. “We appreciate the support of our partner and lender Prime Finance in making this development possible. By delivering the highest-quality office space, the first five-star hotel in downtown in decades, and a state-of-the-art fire station, this is the right project at the right time to set the stage for San Francisco’s future.”
A cornerstone of the project will be the privately delivered new fire station 13 at 447 Battery Street. The building will be a modern, four-story facility that has been designed in close collaboration with the San Francisco Fire Department (SFFD). The station will feature apparatus bays with dedicated access for engines and trucks, dormitories and day rooms with direct pole access, officer suites, a kitchen and dining area, fitness and training spaces, and a rooftop terrace designed to support firefighter training and recovery.
Additionally, the project will generate nearly $15 million in affordable housing contributions to the city, including support for the proposed 100% affordable senior housing project at 772 Pacific Avenue in Chinatown or other developments within District 3. An initial $2 million will be paid within six months of entitlement, with the remainder provided prior to when construction begins.
Over the next 25 years, the 530 Sansome project is expected to generate $13.5 million annually in new general fund revenue. In addition to driving job growth and tax revenue, the project will contribute approximately $8 million in fees to support transportation, child care, and public infrastructure. The development will create an average of 388 construction jobs annually and support more than 1,600 new permanent on-site jobs once complete, fueling an estimated $816 million in annual direct economic impact.
