Community Renewal Good Stories - San Francisco

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New San Francisco Centre Brings Millions in Development

San Francisco, California, RC

When complete, it will boast the second largest Bloomingdale's and Nordstrom in the country, create 3,350 permanent jobs, and contribute $43.3 million for affordable housing over 30 years. It is the San Francisco Centre, soon to be one of the Nation's largest urban retail destinations.

Located in the San Francisco RC, "This one-of-a-kind project will give San Francisco's retail core a huge boost by attracting millions of new shoppers," said Mayor Gavin Newsom. "Businesses from Union Square to Yerba Buena will benefit from the increase in consumers drawn to the area, and the city will benefit from a surge in tax revenue, thousands of new jobs, and millions in community contributions."

This shopping and entertainment venue is the result of an agreement between Forest City Enterprises, the developer of 835 Market Street, and Westfield America, which owns the San Francisco Centre. In February 2003 the firms announced a plan to integrate, develop, and market two adjacent sites to maximize their potential. "Two of the Nation's leading real estate companies have come together to develop a premier retail and entertainment destination that will provide substantial benefits to the city of San Francisco," said former Mayor Willie L. Brown, Jr.

Among those benefits are the creation of more than 3,000 permanent jobs and the generation of $500 million in annual sales. The San Francisco Centre also will establish job training, internship, and emerging business incubator programs. It will provide more than $40 million for affordable housing over 30 years, and contribute some $2 million to a revolving community improvement fund.

Employers in the new development will be able to take advantage of several tax incentives as a result of the centre's location. RC employment credits, available through 2009, provide $1,500 in tax credits to businesses for each employee that lives in the RC. By hiring residents of California's EZ, businesses in the San Francisco Centre also will be able to take advantage of the State's EZ hiring credits. The San Francisco Redevelopment Agency and the Mayor's office assisted the project's developers in obtaining the necessary State approvals for the project. The RC CRD, worth a combined $12 million in accelerated deductions each year to businesses in the RC, allows businesses that build or rehabilitate commercial property to use a 10-year depreciation schedule, as opposed to the standard 39 years. With a single maximum allocation of $10 million, this deduction offers eligible businesses instant tax savings of tens of thousands of dollars.

The new development boasts several aesthetic enhancements, chief among them the restoration of the famed 102-foot-wide, glass-and-steel dome and Rotunda and historic Market Street façade to their early 1900s' appearance. The unique oval-shaped atrium that currently illuminates the San Francisco Centre and links historic Market Street with contemporary Yerba Buena will complement the dome.

For more information on the programs of the San Francisco RC, contact Natosha Y. Sapho at (415) 554-6425.