The Facts

The Board of Supervisors unanimously approved Related California’s $750 million development on October 21, passing six ordinances that enable construction of a 41-story office and hotel tower at 530 Sansome Street. The ordinances included zoning amendments to allow the increased height and density, approval of the development agreement, establishment of the public-private fire station partnership, and authorization of the hotel tax incentive financing mechanism.

The project includes an unprecedented arrangement where the private developer will construct and deed to the city a $40 million, four-story fire station to replace Fire Station 13. Under the development agreement, Related will pay $24.1 million in impact fees, including nearly $15 million for affordable housing. The project promises 1,600 permanent jobs with an $816 million economic impact, according to Patrick Hoge at The Examiner.

The City agreed to give over $60 million in tax incentives to the builder over the next 25 years, with economic models projecting the city will receive far more than that in hotel tax revenue on top of the $40M fire station the city receives for free.

The Context

This marks the first new major office tower and luxury hotel approved in San Francisco's Financial District in recent years, and is a great sign that the commercial real estate market is rebounding.

Related plans to begin construction in late 2026, with completion targeted around 2030. The project received strong support from business groups, hospitality organizations, and labor unions.

The GrowSF Take

We're glad to see institutional investors and large developers showing confidence in San Francisco's recovery. The innovative public-private partnership for the fire station is a creative solution to address the city's infrastructure needs while facilitating new development.