Commission Greenlights $34M Powell Street Overhaul to Combat 70% Vacancy

San Francisco's Public Works Commission unanimously awarded a $34.15 million contract to Clark Construction to transform three blocks of Powell Street — the city's most visible symbol of downtown's post-pandemic decline — into a pedestrian destination by November 2027. The Feb. 26 meeting also featured extensive Lunar New Year preparations across Chinatown and routine contract approvals, all passing without opposition from the three commissioners present.

• $34.15M contract awarded to Clark Construction for the Powell Street Improvement Project, Public Works' first-ever infrastructure project using the construction manager/general contractor delivery method

• Nearly 70% of storefronts on the three-block stretch sit vacant, making the corridor a top priority for the Mayor's downtown revitalization strategy

• Resolution amended on the fly to correct the construction-phase not-to-exceed amount to $33,105,991

• Commissioners flag construction disruption risks, citing pedestrian challenges from the prior Taylor Street project

• Chinatown gets a deep clean ahead of the March 7 Chinese New Year Parade, with Broadway tunnel scouring, lamp post painting, and pothole repairs along the 1.3-mile route

A Golden Lantern for a Struggling Corridor

The basics: The Powell Street Improvement Project covers three blocks between Market and Geary streets in District 3, encompassing full sidewalk replacement, new landscaping, bulb-outs, site furnishings, updated loading zones, cable car service stops, and a signature design element — a suspended LED sphere installation called the "Golden Lantern" at Market and Powell. The design, selected through community engagement in 2023 with the Union Square Alliance and Field Operations (the firm behind New York's High Line and the Presidio Tunnel Tops), is meant to transform a corridor that has become one of downtown San Francisco's most visible vacancies into a draw for pedestrians, tourists, and retail tenants.

Why it matters: With nearly 70% of storefronts across these three blocks sitting empty, Powell Street has become a barometer for San Francisco's downtown recovery. This is the city's largest single infrastructure bet on reversing Union Square's decline, and the aggressive November 2027 completion target signals the Mayor's office wants visible results before the problem calcifies further.

Where things stand: Powell Street Improvement Project Manager Michelle Wu presented the project as Public Works' first use of the construction manager/general contractor (CMGC) delivery method for infrastructure. The approach splits the work into two phases: a 180-day pre-construction services phase at $1,047,819, during which Clark Construction will help plan logistics, followed by a construction phase the commission will approve separately. The total anticipated contract value is $34,153,810.

Wu described the pre-construction phase as essential given the corridor's complexity. The pre-construction phase allows the city to work with the contractor — in this case Clark Construction — to plan on how to start construction while keeping it as operational as possible during the build. Key challenges include more than 20 sub-sidewalk basements along the alignment, unknown utilities, maintaining cable car service and pedestrian access, and keeping adjacent buildings marketable during construction.

Roadway repaving was deferred to a future Phase 2.

"Due to cost and the fact that we do want to deliver this project sidewalk improvements as soon as possible, we're putting the roadway improvements as a phase two in the future when funding is identified," Wu said.

Commissioner Paul Woolford vouched for the project team.

"I happen to know the design team and the construction team that were selected, and all of the contractors that are proposed, as you said, are excellent, exemplary contractors," he said.

He also described the golden lantern element as a suspended LED sphere, comparing it to canopy-of-light installations between the library and the Asian Art Museum.

The other side: Commissioner Gerald Turner praised the project's ambition and also underscored the urgency:

"We are in a place and space where we need ambition in the city. We need to drive. We definitely need revitalization."

Chair Fady Zoubi raised a practical concern rooted in recent experience.

"We saw how Taylor Street project — it was difficult for pedestrians to move around while the project is going. And I'm hoping that we put that in mind," he said, requesting that the future construction-phase approval presentation include a phasing plan showing pedestrian routing and construction truck staging.

Decisions: The commission amended the resolution to correct the construction-phase not-to-exceed amount to $33,105,991 in the further resolve clause. The amended motion passed unanimously (For: 3 — Zoubi, Turner, Woolford; Against: 0; Absent: 1 — Blume).

What's next: The commission will return to approve the construction phase separately. Staff will prepare a phasing plan addressing pedestrian access and staging before that vote. The target completion date is November 2027.

Chinatown Gets a Deep Clean Ahead of Parade Day

Director of San Francisco Public Works Carla Short used her report to detail the scale of Public Works' annual Lunar New Year mobilization across Chinatown and beyond.

A special projects crew scoured the Broadway tunnel ceiling with a truck-mounted high-power brush and hand-held power washing equipment. Painters completed their annual touch-up of decorative lamp posts on Grant Avenue in green, red, and gold, and the Dragon Gate at Grant Avenue and Bush was scheduled for power washing. Street repair crews ran a targeted pothole operation along the 1.3-mile parade route from south of Market to Chinatown.

Through the job order contracting team, Public Works also facilitated the second phase of Central Subway artwork — more than 50 glass panels, each weighing 70 pounds. The Arts Commission was described as very happy with the results.

The Chinese New Year Parade is scheduled for March 7. Crews undertake a massive overnight cleanup operation starting as soon as the last float departs.

Short also reported on a Valentine's Day Neighborhood Beautification Day in District 10 with 74 volunteers and previewed the March 14 Arbor Day celebration in District 3.

"Next month, on March 14th, we'll be celebrating Arbor Day, the best day of the year, planting 100 trees in Chinatown," she said, noting plantings will also cover North Beach and other neighborhoods.

Minor Items

• Consent calendar approved (3-0, Blume absent), including draft minutes from Feb. 12, two contract awards, and four contract modifications. Commissioner Turner highlighted the City Hall elevator modernization project, recounting a child's amazement at the talking elevator: "This little kid was amazed at the elevator — not because it was an elevator, but it was talking and it was doing all these things."

• Item 8 (proposed settlement/closed session) continued to the March 12 meeting per staff request (3-0, Blume absent). Settlement details remain undisclosed.

• Chair Zoubi recognized Public Works staff for their response to recent storms, wished the community a happy Lunar New Year, and acknowledged Black History Month.

• Secretary Fuller reminded commissioners that Form 700 financial disclosure filings and ethics/sunshine training are due April 1.

• Zuckerberg General Hospital tour: Director Short confirmed a site visit to hospital construction projects can be arranged; a full update is already on the March 12 agenda.