Mayor Lurie Introduces Legislation to Advance Major Downtown Development, Drive Downtown Recovery

SAN FRANCISCO – Mayor Daniel Lurie today introduced legislation to advance a transformative new development at 530 Sansome Street in the heart of San Francisco’s downtown Financial District. 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 and Battery Streets. The development will use an innovative financing mechanism to support the construction of the new fire station by reinvesting a portion of the taxes generated by the new hotel back into the project. The completed project is expected to generate approximately $816 million in annual economic activity and includes nearly $15 million to support the creation of 100% affordable housing.

The legislation delivers on a commitment Mayor Lurie made during his campaign to use innovative financing tools to deliver critical housing and economic development projects. It also represents another piece of his work to drive San Francisco’s economic recovery by revitalizing downtown—adding housing, cutting red tape, and supporting small businesses. Mayor Lurie has taken action to foster a vibrant 24/7 downtown with recently signed legislation to boost the conversion of office buildings to homesdowntown and keep downtown safe and clean with the creation of a permanent San Francisco Police Department Hospitality Zone Task Force. Just last week, the mayor broke ground on two new affordable housing projects. Last month, he delivered on key pieces of his PermitSF initiative, announcing legislation to cut red tape and drive economic recovery for business owners and residents.

“Downtown drives San Francisco’s economy, and a thriving, 24/7 downtown will be key to our city’s comeback,” said Mayor Lurie. “Today, we’re taking a major step with Supervisor Danny Sauter towards a downtown where people live, work, and play with this project that will deliver 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.”

“530 Sansome represents a major step forward for San Francisco's downtown comeback,” said Supervisor Sauter. “But let's be clear: this is also a significant win for our neighborhoods. A new fire station will keep our residents and small businesses safe while affordable housing funds will directly contribute to new homes built nearby, including 100% affordable senior housing in Chinatown."

The 530 Sansome project is the result of a public-private partnership with Related California. 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 structure 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. 

“530 Sansome represents both our confidence in San Francisco and our commitment to downtown's renewal,” said Gino Canori, President of Related California. “By delivering the highest-quality office space, the first five-star hotel development 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.”

“The city of San Francisco has been a great partner to Related California during its 35-plus years, having completed over $2 billion of multi-family housing and commercial developments, and this project is no different,” said Matt Witte, Executive Vice President at Related California. “530 Sansome sends a positive signal that San Francisco is serious about working with the business community to transform its downtown and build a vibrant economy. Thank you to Mayor Lurie, Supervisor Sauter, and the Office of Economic and Workforce Development for their valued partnership.”

A cornerstone of the project will be the privately delivered new Fire Station 13 at 447 Battery Street made possible by an innovative incentive funding mechanism that will reinvest a portion of the new hotel tax that is generated back into the project to offset the construction costs of the new fire station. 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. 

“The San Francisco Fire Department is proud to support Mayor Daniel Lurie’s legislation, co-sponsored by Supervisor Danny Sauter,” said SFFD Chief Dean Crispen. “The 530 Sansome project delivers a new, state-of-the-art fire station, reinforcing the mayor’s unwavering commitment to public safety and ensures that the safety and revitalization of San Francisco remains front and center. We applaud this dedication to our department and more importantly to the people of San Francisco.”

Additionally, the project will generate nearly $15 million in affordable housing contributions to the city to support the creation of 100% affordable senior housing 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. 

“This project reflects how well-located infill development can directly support our city’s affordable housing goals,” said Daniel Adams, Director of the Mayor’s Office of Housing and Community Development. “The $15 million contribution from 530 Sansome will help support the development of new 100% affordable housing citywide, with a priority on bringing much-needed stability and opportunity to our city’s downtown and adjacent neighborhoods.”

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, childcare, 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.

“The Office of Economic and Workforce Development is always excited to help advance projects like 530 Sansome,” said Anne Taupier, Executive Director of the Office of Economic and Workforce Development. “They demonstrate how we can thoughtfully grow San Francisco while delivering critical public infrastructure and unlocking benefits for the city that strengthen neighborhoods, support economic recovery, and help urban spaces thrive.”