"This is a fiscally responsible decision. Eliminating the hotel saves the City $27 million in subsidies. It also helps our hotel industry by not adding additional rooms to the current supply,'' the mayor says.
P.J. Johnston, the mayor's press secretary, notes, "The economy has changed since this project was first initiated. For the city's own financial reasons, it's better for us not to have to come up with subsidies. Especially given hotel industry downturn, it's better for them not to have additional rooms on the market just now."
While the elimination of the hotel tower from development plans reflects the current bleak financial situation here, the rest of the project could still be good news for San Francisco's economy. The $350 million project is expected to generate approximately 1,950 permanent jobs and 770 construction jobs, as well as $9.7 million in annual taxes to the city, according to the mayor.
A spokesman for Forest City, the Cleveland, OH, based billion-dollar developer, confirmed that construction is scheduled to begin later this year.
Forest City's plans center around a five-floor Bloomingdale's in the old Emporium Building at 835 Market St., between Fourth and Fifth streets. The remainder of the facility will consist of eight floors of retail, office and dining space, and a nine-screen cinema.
Johnston also says that the new facility will be connected to the Jessie Square Project -- a Mexican Museum and Magnes Museum around the Yerba Buena Gardens--and will greatly benefit from the revitalization.
Talk of a San Francisco Bloomingdale's began in 1995 when Federated Department Stores Inc. bought out the Emporium chain. The Emporium closed in 1996.
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