San Francisco supervisors approve $40 million incentive for Hearst hotel in 9–2 vote

The San Francisco Board of Supervisors on Feb. 24 approved an ordinance to provide $40,000,000 (net present value) in financial assistance to Bespoke Hospitality LLC for the proposed Hearst hotel development, with the measure passing on a 9–2 roll call vote.

The clerk described the ordinance as an agreement to provide the assistance over 20 years tied to a portion of new transient occupancy tax revenues for a project on real property described as 5th and 3rd Street and 17 through 29 3rd Street, and to waive specified provisions of the city administrative code and sections of the labor/employment code “to ratify past and to authorize future actions in furtherance of this ordinance and to make the appropriate findings.” The board’s presiding officer called for the roll; the clerk recorded nine ayes and two no votes and announced the ordinance was finally passed.

Supervisor Chan and Supervisor Fielder were recorded as voting no; other supervisors voted in favor. The clerk’s reading of the ordinance text and the roll‑call vote were the principal public record in the chamber for this item.

Supporters on the dais framed the measure as a development incentive tied to hotel operations and the city’s transient occupancy tax; the ordinance text approved by the board authorizes both the financial assistance and related code waivers required to implement the agreement. The ordinance text, as read into the record, specifically references the administrative code chapter to be waived and the labor/employment code sections that are affected.

The ordinance’s approval concludes the board’s final action on the item in this meeting; the clerk announced the ordinance was finally passed on the floor. The transcript includes the clerk’s full reading of the ordinance description and the roll‑call vote.