Mayor Lurie Signs Legislation Advancing $14.5 Million Grant For Powell Street Renovation To Accelerate San Francisco's Economic Comeback

SAN FRANCISCO – Mayor Daniel Lurie today signed legislation allowing the city to accept $14.5 million in private funding to revitalize the Powell Street corridor, connecting the cable car turnaround at Market Street to historic Union Square and accelerating downtown’s revitalization. This funding from the San Francisco Downtown Development Corporation (DDC) will support the Powell Street Improvement Project, a public‑private partnership designed to elevate the pedestrian experience, enhance safety and cleanliness, and strengthen the corridor as a signature destination and vibrant commercial hub for both visitors and locals.

The revitalization of Powell Street delivers on a key commitment in Mayor Lurie’s “Heart of the City” plan to make downtown San Francisco a neighborhood where people live, work, play, and learn. Powell Street and the broader area around Union Square and Yerba Buena have seen retail activity rebound in recent months, with a mix of locally grown small businesses and large retail brands such as The RealReal, AT&T, and Nintendo. Clean and safe streets have been a central part of Mayor Lurie’s downtown revitalization strategy—he established the San Francisco Police Department Hospitality Zone Task Force within one month of taking office, and overall crime dropped more than 35% last year in the Central Station district, which includes Union Square and the Financial District.

“With our Heart of the City plan, we are building a downtown that is full of energy 24 hours a day, 7 days a week. Today, we are taking another major step toward that reality with an investment that will help transform Powell Street into a world-class gateway connecting visitors, workers, residents, and shoppers to Union Square and the heart of downtown San Francisco,” said Mayor Lurie. “Downtown’s recovery is not the work of any one sector—it takes city government, community organizations, small businesses, major employers, and civic leaders all pulling in the same direction. A stronger downtown means more jobs, more visitors supporting local businesses, and more revenue to fund the services San Franciscans rely on across our city. When downtown thrives, every neighborhood benefits.”

“Great public spaces are the heart of great downtowns,” said Shola Olatoye, DDC CEO. “We thank Mayor Lurie, the city, the Union Square Alliance, and the local businesses and property owners who are helping breathe new energy into Powell Street and Union Square. A starburst chandelier above the cable car turnaround, wider sidewalks, new businesses opening their doors—this is one piece of the downtown strategy DDC is building with our partners and the city.”

The Powell Street Improvement Project represents a comprehensive reimagination of the streetscape along the three blocks from Market Street to Geary Street. The redesign includes new and widened sidewalks, fresh landscaping, and updated cable car stops. There will be ample sidewalk space for restaurants and cafes to set up tables and chairs.

Art nouveau-inspired hanging lanterns—a nod to the area’s historic architecture—will line the corridor. The programmable LED lights can display different colors to elevate seasonal events and civic celebrations. The showstopper in the redesign will be a giant overhead starburst chandelier suspended above the cable car turnaround at Market and Powell streets.

“All of San Francisco is stronger when Union Square and downtown are busy, vibrant, and welcoming,” said District 3 Supervisor Danny Sauter. “Today’s monumental funding agreement means we’re one step closer to realizing this vision. I can’t wait to see this critical corridor reimagined through this public space improvement that will invite us all to experience our city at its best.”

“Powell Street is the gateway to Union Square and a symbol of our city's strong resurgence,” said Marisa Rodriguez, Union Square Alliance CEO. “We are incredibly thankful to the Mayor's Office, the Downtown Development Corporation, and the Union Square community for their commitment in helping ensure this once-in-a-lifetime project can become a reality. Together, we are creating a Powell Street worthy of its iconic status and ensuring that the heart of San Francisco remains a special place that Northern Californians can cherish and take pride in for generations to come.”

The private investment augments $26 million in public funding from the 2024 Healthy, Safe and Vibrant San Francisco Bond and the pot of local sales tax revenue designated for transportation projects.

Construction is anticipated to start by fall 2026, with substantial completion expected in 2027. San Francisco-based firms Field Operations and SITELAB Urban Studio are leading the design. San Francisco Public Works is serving as project and construction manager and providing engineering and design support.

“This reimagining of the Powell Street streetscape made possible by the public-private partnership will build on the momentum of the city’s continued resurgence by creating a more dynamic, safer, and more welcoming experience,” said Carla Short, San Francisco Public Works Director. “The benefits of transforming these three blocks will stretch beyond this corridor to revitalize the broader downtown neighborhood.”

“Our Powell Street pop-up has far exceeded our expectations—so much so that we’ve signed a permanent lease and are adding a café,” said Todd Masonis, Dandelion CEO and Co-Founder. “The continued support from the city and the DCC has made this possible, and we’re extremely optimistic about how this streetscape project will strengthen Union Square and San Francisco’s forward trajectory.”

“We are laying the foundation for a generational transformation of our iconic shopping district, a future that will welcome even more residents, tourists, and students into our downtown,” said Anne Taupier, Office of Economic and Workforce Development Executive Director. “We value community‑driven projects like this that dream big about what our downtown can become. The redesign of Powell Street goes above and beyond what the city could accomplish on its own, and this private investment gives us added momentum to make this dream possible.”