The San Francisco Downtown Development Corporation (DDC) is seeking $60 million in funding from both public and private sources to aid the city’s downtown recovery. The nonprofit, which began operations earlier this year, says that while this amount would provide a significant boost, it falls short of what is needed for its long-term objectives.
To expand its fundraising capacity, the DDC plans to establish a legal entity that can access financing from both private markets and public sources. This structure would enable the organization to acquire, develop, and manage real estate properties. The DDC aims to undertake larger projects within the next two years but acknowledges that much more funding will be required.
“There’s no question we’re talking about a generational moment that will require hundreds of millions of dollars to build large-scale public parks [and] mixed-use development[s] — projects that fuel the economic recovery, deliver additional revenue to the city’s general fund and ultimately make San Francisco, particularly downtown, a place where businesses want to invest, stay and bring their employees,” said Shola Olatoye, CEO of the Downtown Development Corporation.
The proposed $60 million comes from nearly 50 organizations. These include real estate developers such as Emerald Fund, Fifth Space, Presidio Bay and TMG Partners. Major companies operating in San Francisco like OpenAI, Google, Salesforce and Amazon are also part of the effort.
Funds will support several initiatives aimed at revitalizing downtown San Francisco. Planned uses include upgrading lighting and security camera systems, increasing police recruitment efforts in the city center, launching a business fund designed to fill vacant retail spaces along key corridors, developing a new park at Embarcadero Plaza, improving East Cut Crossing infrastructure and investing in public art installations.
Large banks including J.P. Morgan Chase, Bank of America and Citizens are expected to offer below-market capital rates for businesses interested in moving into currently vacant commercial properties downtown. According to Olatoye, further details on this program will be available in the second quarter.
