San Francisco Rules Committee Meeting – May 19, 2025: Downtown Revitalization District & Pier 29 Art Space
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San Francisco Rules Committee Meeting – May 19, 2025
On May 19, 2025, the San Francisco Rules Committee met to consider two ordinances: one establishing the Board of Directors for the Downtown Revitalization and Economic Recovery Financing District (AB 2488) and another waiving contracting requirements for a two-year arts lease at Pier 29. The committee voted unanimously to send both items to the full Board of Supervisors with positive recommendations.
Public Comments & Testimony
Item 1 – Downtown Revitalization District
- Mark Babson (President, Emerald Fund) expressed strong support, noting that the district is the final piece needed to enable office-to-residential conversions after addressing transfer tax and affordable housing fees. He stated that his firm studied 15–16 buildings and found that public-sector levers (transfer tax, affordable housing, property tax) are critical.
- Erica McLaidis (SPUR) supported the legislation, citing research showing that conversion projects and reinvesting property tax revenues have worked in other cities to create 24/7 mixed-use neighborhoods.
- Brianna Morales (Housing Action Coalition) spoke in support, emphasizing the need for housing and stating that early estimates show the program could unlock up to 4,000 new homes, providing a stable future for residents.
Item 2 – Pier 29 Arts Lease
- Paul Madonna (artist, 31-year resident) expressed support, stating that the art space would have been a “refuge” for him when he started his career and that it is exactly what the city needs to maintain its creative identity.
- Dave A. Keenan (CAST) stated that he spent over 1,000 hours designing the project and that a nimble build-out phase is essential for a two-year lease; he urged approval of the Chapter 6 waiver.
- A letter from Mac McGur (owner/manager of Pier 23 Cafe) was read, pledging support for the residency program, noting that more opportunities on the Embarcadero benefit everyone. Five additional letters of support were submitted.
Discussion Items
Item 1: Ordinance Establishing the Board of Directors for the Downtown Revitalization and Economic Recovery Financing District
- Supervisor Dorsey introduced the legislation, explaining that it implements AB 2488 (authored by Assemblymember Phil Ting) to create a financing district that diverts incremental property tax increases from office-to-residential conversions back to projects for up to 30 years, offsetting development costs. The district is expected to cover downtown San Francisco.
- Jacob Bintliff (OEWD) presented the details: the district board will consist of 5 members (3 BOS members, 2 community members) plus an alternate, all appointed by the BOS President. The board must adopt a financing plan after public hearings. Preliminary analysis indicates about 50 commercial properties could be converted, generating approximately 4,400 housing units.
- Elisa Sumara (Clerk of the Board) outlined administrative costs: the clerk’s office will provide support, estimating an annual cost of $130,000 for four meetings per year. The district can eventually reimburse these costs from incremental tax revenue, but funds may not be available for 3–5 years. A budget request will be submitted in June. Dr. Edward Diazis confirmed that the mayor’s office has been consulted but no commitment for funding has been made.
- Supervisor Souter noted a new study showing the potential for 4,400 homes, 49 converted buildings, and $15.5 million in additional annual tax revenue. She expressed support and emphasized the need for funding for the clerk’s office.
- Chair Walton called for clarity on the mayor’s support for the budget request before the item reaches the full board.
Item 2: Ordinance Waiving Contracting Requirements for Port Lease – CAST at Large LLC at Pier 29
- Supervisor Souter introduced the item, stating that the space at Pier 29 between Fisherman’s Wharf and the Ferry Building has been underutilized and this project will add much-needed arts space in a historic pier.
- Scott Lansettel (Port of San Francisco) explained that the port is leasing the dormant shed to CAST (Community Arts Stabilization Trust) for two years with an option to extend two more. CAST, in partnership with Art + Water (led by Dave Eggers and JD Beltran), will create an artist residency program for 20 emerging Bay Area artists plus 10 mentors, a daily walk-in gallery, an accessible event space, and free educational programs for SFUSD schools. The port will reimburse CAST up to $500,000 for code compliance and small improvements to enable occupancy by the end of the year.
- JD Beltran and Dave Eggers described the vision: the project will provide affordable studio space, combat the loss of artist space, and create a visual arts hub similar to the Exploratorium for science.
- Supervisor Dorsey expressed support, noting the importance of the project for District 3 and the city’s arts community.
Key Outcomes
- Item 1 (Downtown Revitalization District): Motion to approve the ordinance and send it to the full Board of Supervisors with a positive recommendation passed unanimously (Walton, Cheryl, Dorsey aye). The ordinance will appear on the Board of Supervisors’ agenda of June 3, 2025.
- Item 2 (Pier 29 Arts Lease): Motion to send the ordinance to the full board with a positive recommendation passed unanimously (Walton, Cheryl, Dorsey aye).
- No additional items were discussed; the meeting adjourned.
Meeting Transcript
Good morning and welcome to our May 19th, 2025 Rules Committee meeting. I am your Chair Supervisor Shimon Walton and joined by Vice Chair Supervisor Cheryl as well as Supervisor Dorsey filling in for Supervisor Mandelman this morning. And we are also joined by Supervisor Souter. Our clerk today is Victor Young, and we have Jamie Eshevery from SFGov TV, who will be broadcasting this meeting. Mr. Clerk, do you have any announcements this morning? Yes, public comment will be taken on each item on this agenda when your item of interest comes up and public comment is called. Please line up to speak on your right. Alternatively, you may submit public comment in writing either of the following ways. Email them to myself, the rules committee clerk at VICTOR dot Y O U N G at SFgov.org. If you submit public comment by email, it would be included as part of the file. May also send your written comments via U.S. mail to our office in City Hall, one Dr. Carlton B. Goodlit Place, room 244, San Francisco, California 94102. Please make sure to silence all cell phones and electronic devices. Documents to be included as part of the file should be submitted to the clerk. Items acted upon today are expected to appear on the Board of Supervisors' agenda of June 3rd, 2025, unless otherwise stated. That completes my initial announcements. Thank you, Mr. Clerk, and I'd like to make a motion to excuse President Mandelman from this morning's meeting. Yes, on that motion. Vice Chair Sherrill. Aye. Cheryl I. Member Dorsey. Aye. Dorsey Aye. Chair Walton. Aye. Walton aye. That motion passes without objection. Thank you. Motion to excuse President Mandelman passes without objection. Mr. Clerk, please call item number one. Item number one is the ordinance mending the administrative code to establish and define the membership and duties of the Board of Directors of the San Francisco Downtown Revitalization and Economic Recovery Financing District. Thank you so much. And I know we will have a presentation from OEWD, but right now we will hear from Supervisor Dorsey. Thank you, Chair Walton, for scheduling this item that Mayor Lurie and myself, together with its other co-sponsors, sponsors, including uh Vice Chair Sherrill and Supervisor Sauter, are excited to see move forward. This legislation seeks to implement AB 2488, a state bill passed last year that was authored by San Francisco's own assembly member Phil Ting, and which gives us another tool to incentivize adaptive reuse projects. I know we are all by now keenly aware of the challenges we face in the current state of downtown and its commercial vacancies. Now, some obstacles to progress, like interest rates, for example, are beyond our control. But to the extent some factors are within our control, we should do everything we can to incentivize and support these kinds of projects. Adaptive reuse developments hold significant promise for housing production in our downtown, of course. But to me, the real promise of adaptive reuse is that it gives us a rare opportunity to correct 20th century land use decisions, which foresaw wisdom at the time in nine to five business districts with few other uses, and bring these into the 21st century with a mix of residential and residential serving uses too. This is about 21st century urbanism that celebrates downtown neighborhoods that are every bit as vibrant on nights and weekends as they are from 9 to 5. I am blessed to represent some of these mixed-use neighborhoods in the East Cut and Mission Bay, for example, but the downtown revitalization financing district contemplated by AB 2488 gives us an ambitious roadmap to move the promise of 21st century urbanism forward by building the housing we need and revitalizing neighborhoods that attract commuters and shoppers, tourists and conventions, and that can do much to power our city's economic comeback. This board has taken action on other policies that help facilitate these projects. AB 2488 Downtown Revitalization Financing District is another tool that will help facilitate needed progress.
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