Board Approves Contested $40M Hotel Incentive as Only Split Vote of the Day

The San Francisco Board of Supervisors moved through a packed agenda Tuesday, but only one item drew dissent: a $40 million, 20-year tax incentive for the Hearst Hotel development, which passed 9-2 over progressive objections. The rest of the session featured a wave of new legislation — from a proposed ban on nitrous oxide sales to PG&E accountability resolutions — alongside Black History Month commendations honoring food justice, trans health leadership, and community violence prevention.

• $40M Hearst Hotel incentive passes 9-2 with Supervisors Chan and Fielder dissenting — the meeting's only contested vote

• Board adopts PG&E accountability resolutions and introduces support for SB 875 to strip special privileges from investor-owned utilities

• Supervisor Sauter moves to ban retail sales of nitrous oxide, citing a 600% spike in U.S. deaths since 2010 and marketing targeting youth

• $18.5M appropriated for Port dry dock stabilization, passing unanimously on first reading

• Fisherman's Wharf Entertainment Zone created as long-vacant commercial space finally gets a tenant after 15 years

• Black History Month commendations honor Fillmore food justice advocate Phyllis Bowie and trans health pioneer Khilynn Fowler

The Board gave final approval to an ordinance authorizing up to $40 million in financial assistance over 20 years to Bespoke Hospitality LLC for the Hearst Hotel development at 5th and 3rd streets. The deal structures payments as a share of new transient occupancy taxes generated by the hotel and includes waivers of portions of Administrative Code Chapter 21G and labor employment code provisions.