The Government Audit and Oversight Committee received detailed presentations on a Related California proposal to build a mixed-use tower at 530 Sansom Street and a standalone new Fire Station 13 on an adjacent parcel, and then continued the two accompanying ordinances to a special meeting on Oct. 6 so the committee can complete noticing requirements.
Jonathan Cherry of the Office of Economic and Workforce Development (OEWD) outlined the project program: ground-floor retail and public spaces, 11 floors of hotel rooms, and office floors above, with a separately owned parcel to house the new fire station. “From the beginning of this effort, the city has identified three key objectives,” Cherry said: rebuild Fire Station 13 to modern operational needs, bring activity and economic investment downtown, and generate funding for 100% affordable housing in Chinatown and District 3.
Deputy Chief Sayumi Bridal of the San Francisco Fire Department told the committee the department is “in full support of this project,” noting Fire Station 13’s current building dates to the early 1970s and does not meet current operational or accessibility standards. The proposal calls for the developer to construct the new station to modern seismic standards and complete the station before the tower.
Nick Menard of the Budget and Legislative Analyst summarized fiscal analysis and policy considerations. The incentive agreement under consideration would provide up to about $86 million in net present value in payments to the developer over 25 years, calculated as a share of new transient occupancy tax (TOT) revenue generated by the proposed hotel. Menard said the developer bears the project financing risk and the upfront cost of the fire station; the city’s contribution would be made through future TOT-based incentive payments rather than upfront capital.
Menard also noted the city could, in theory, self-finance the station at lower nominal cost (he cited an estimate of about $72 million) but said the city’s capital plan is fully scheduled and reordering projects would be required to free up that capacity. He emphasized the trade-off between the faster delivery possible under the incentive structure and the longer time required to issue public debt in a constrained capital plan.
Speakers at the public-comment portion included representatives of the San Francisco Chamber of Commerce, Chinatown Community Development Center, Hotel Council of San Francisco, multiple construction trades unions, and business groups. Supporters emphasized the project’s jobs, apprenticeship opportunities, $15 million in affordable-housing payments earmarked in part for a 100% affordable senior housing project at 772 Pacific Avenue in Chinatown, and approximately $7 million in SFMTA impact fees.
Committee members asked detailed fiscal and sequencing questions about occupancy assumptions, timing tied to financing close, and the capital plan. Vice Chair Danny Sauter moved to continue both ordinances to the committee’s October 6 special meeting to satisfy noticing requirements; the motion passed on a 3-0 roll call.
Because the committee continued the items, no final approvals were recorded. The legislation package still includes certification of an Environmental Impact Report (EIR) completed in July and multiple ordinances and agreements that will return for further hearings and votes.