Supervisors hear plan to form Downtown Community Benefit District for Financial District and Jackson Square

Supervisor Gordon Marr convened the Government Audit and Oversight Committee on May 2 and introduced a resolution of intention to establish a Downtown Community Benefit District (CBD) covering the Financial District and Jackson Square.

Helen Marr, project manager with the Office of Economic and Workforce Development, told the committee the CBD formation effort dates back to 2007 and was reinitiated in 2017. She said outreach included a property-owner survey and that the proposal reached the petitioning threshold required to trigger a special election. "The Downtown CBD has reached their 30% petitioning threshold necessary to trigger a special election," she said.

Marco (consultant) presented the management plan and budget. The proposed district would encompass 669 parcels and operate for 15 years, from Jan. 1, 2020, through Dec. 31, 2034. Assessment rates in the formation documents are 10 cents per building square foot and 8 cents per lot square foot for vacant lots. The budget, Marco said, totals roughly $3.8–$3.9 million, with about 77% allocated to civic sidewalks and mobility management, approximately 14% for program management, roughly 5% for district identity and about 3% contingency.

The presentation listed services intended to be paid for by assessment dollars: regular sidewalk and gutter sweeping, trash removal and overflow handling, timely graffiti removal, tree and vegetation maintenance, public-space development and maintenance, consolidation or removal of empty news racks, advocacy for improved traffic management at major intersections, and the hiring of nonprofit or private caseworkers to connect people experiencing homelessness with services.

Marco described the proposed boundary adjustments; he said the Federal Reserve Building and Embarcadero Center are excluded because they are unlikely to participate. He said expansion to include the Ferry Building or other port-side areas could be a later phase. Marco outlined a near-term timeline: resolution of intent anticipated in June 2019, a Board public hearing on July 16, formation of a nonprofit manager in August–September, a likely contract with the mayor's office in October, first transfers of assessments in December and services beginning in early 2020.

Members of the public representing property owners and brokers spoke in favor. Danielle McKinney, speaking for Renato Realty Trust, said her clients representing the 555 block “are behind this.” Shana Eskew, a property manager, said she "fully support[s] this" and had been involved in the group for several years. Christie Bridal of CBRE downtown said she looked forward to similar success to other districts. Frank Holland of the Clint Riley Organization noted CBDs’ track record in other neighborhoods and said the Financial District needs the proposed services.

An unidentified public commenter asked the committee to prioritize housing instead of a CBD and alleged irregularities related to Mission Rock affordable-housing requirements, charging that set-aside and eligibility rules were being misapplied. The record shows those allegations were offered as public comment and no agency rebuttal is recorded in the hearing minutes.

Chair Marr closed public comment and the committee moved the item to the full Board of Supervisors by unanimous consent.