Daniel Lurie Approves Related California Hotel-Office Tower

San Francisco Mayor Daniel Lurie and San Francisco Board of Supervisors member Danny Sauter have introduced legislation that would advance the city’s first post-pandemic office building construction project.

On Tuesday, Lurie and Sauter rolled out legislation that would solidify a development agreement for Related California’s mixed-use tower at 530 Sansome Street, the San Francisco Chronicle reported. The San Francisco-based company first floated the transformational Financial District project in 2021.

Under the new legislation, if approved by the San Francisco Planning Commission, Related California would be approved to build a 41-story tower containing 390,000 square feet of offices and a 200-room five-star hotel as well as a new fire station next door at 447 Battery Street. The Sansome Street tower would also feature three levels of subterranean parking and a new public plaza between Sansome and Battery streets.

Related would finance the fire station with a portion of the tax revenue generated by the new hotel. The state-of-the-art station would feature apparatus bays with dedicated access for engines and trucks, dormitories and day rooms with direct pole access, officer suites, a kitchen and dining area, fitness and training spaces and a rooftop terrace for firefighter training and recovery.

“[This project] reinforc[es] the mayor’s unwavering commitment to public safety and ensures that the safety and revitalization of San Francisco remains front and center,” San Francisco Fire Department Chief Dean Crispen said in a statement from the mayor’s office.

The proposed agreement would require Related to pay nearly $15 million for affordable housing, which would likely go toward a proposed senior development at 772 Pacific Avenue in Chinatown. Of that, $2 million would have to be paid within six months of approvals with the remaining $13 million due when construction begins.

The 530 Sansome project is expected to generate $13.5 million in new revenue for the city general fund annually. It would also contribute about $8 million in fees to support transportation, child care and public infrastructure endeavors. The development would create about 388 construction jobs annually and support more than 1,600 new permanent on-site jobs once complete. In total, it’s predicted to bring in $816 million in direct economic impact each year.

Related is hoping to secure project approvals by October and start construction late next year with the hope of delivering the building by 2030.

— Chris Malone Méndez