Mayor touts plans for Union Square and Yerba Buena renewal

Faced with record-high retail vacancy rates, San Francisco Mayor London Breed staged a press conference in front of the cable car turnaround at the base of hard-hit Powell Street Tuesday on to tout millions of dollars earmarked in her proposed budget for initiatives aimed at revitalizing downtown, particularly the Union Square and Yerba Buena districts.

Details of the mayor’s plans were still being worked out, but Breed said they would include helping get pop-up stores into vacant storefronts on Powell, encouraging “entertainment zones” that can serve alcohol outside, activation of public spaces and periods of discounted parking in downtown garages.

In addition, the mayor said some portion of a bond measure she has proposed for the November ballot could be used to improve Hallidie Plaza, the much-criticized, open-air, below-ground entry to the BART and MUNI systems near the cable car turnaround.

“We are really changing the experience that people have when they come downtown,” said Breed, flanked by two large, vacant storefronts.

“Can you imagine being able to buy a beverage, potentially an alcohol beverage, and hang out right in this really sunny plaza and sit down and enjoy yourself?” Breed asked.

The mayor’s plans focus on an area spanning the Union Square and Yerba Buena districts, which are vital to The City’s tourism industry with half of The City’s hotel rooms, 3.5 million square feet of retail space and numerous museums, theaters and performance venues.

It calls for about $10 million to be spent on the area between Moscone Center convention facility and Union Square Plaza, an area heavily trafficked by visitors to The City, said Sarah Dennis Phillips, executive director of the Office of Economic and Workforce Development. There would be frequent events in Union Square and elsewhere to promote a vibrancy.

According to Phillips, about $4.5 million of the $10 million will enhance public safety, though details have not been worked out.

On top of the $10 million, another $3.2 million would go to helping businesses open in vacant storefronts in downtown and the rest of The City.

The proposed budget , which attempts to close a nearly $800 million two-year budget deficit , is subject to approval by the Board of Supervisors. The board has also yet to vote on Breed's legislation introduced last month to designate Front Street between California and Sacramento streets as the state’s first “entertainment zone,” a label meant to let bars and restaurants sell alcohol during outdoor events. Breed hopes for more such zones.

Supervisor Matt Dorsey, who represents the South of Market area that includes the museum-rich Yerba Buena district, called the mayor’s proposals “exactly the right approach.”

“Mayor Breed’s action plan makes smart investments in destination spots for global tourism and conventions, which are in turn powering San Francisco’s economic engine. These moves for Yerba Buena and Union Square will help turbocharge our city’s comeback,” he said.

Board of Supervisors President Aaron Peskin, whose district includes Union Square’s famed shopping core and who is running against Breed for mayor, was less excited.

“These are all regurgitations of existing efforts, and I don’t mean that pejoratively,” Peskin said. “But there’s nothing new here.”

Also speaking at Tuesday’s event was Desi Danganan, executive director of Kultivate Labs, which promotes Filipino businesses and culture in the South of Market area.

Danganan said he hoped some Filipino entrepreneurs could open for business in the Emporium Centre San Francisco , with its many vacancies across Market Street. He envisioned a concentrated Filipino commercial presence on par with Japantown. An Emporium spokesman said the mall's management declined to comment.

“Our aspiration is that when you come to San Francisco and you think about Asian cultural destinations, that we’ll be up there with Japantown and Chinatown,” he said.

Money will also be spent on beautification of public and private spaces, for example with decorative lighting or art installations, Phillips said.

Breed promised some version of the Vacant to Vibrant program for Powell Street, which has been particularly impacted by changing retail dynamics and has many vacancies on the three-block stretch from the cable car turnaround by Market Street to Union Square, including multiple large spaces that could be expensive to fit out for a new tenant.

Vacant to Vibrant launched in August 2023 and provided seed money and other assistance to businesses opening in vacant spaces downtown, which landlords provided free of charge. Seven of the primary tenants recently signed longer-term leases, while eight other businesses were chosen to launch downtown this summer.

Next week, preliminary drawings are also expected to be unveiled for planned streetscape improvements on Powell Street, for which $4 million has so far been earmarked. Phillips said the hope is that the November bond measure will provide funding for longer-term improvements to the street.