San Francisco Chronicle

All bidders rejected for Fillmore Street revamp

- By J. K. Dineen

The hole in the heart of lower Fillmore Street won’t be filled anytime soon.

A city committee charged with selecting a buyer for the long- vacant Yoshi’s nightclub at the Fillmore Heritage Center has rejected all the candidates who had hoped to buy the space, the centerpiec­e of a revitaliza­tion project meant to pump new life into an area decimated by redevelopm­ent in the 1960s.

Joaquín Torres, deputy director at the Mayor’s Office of Economic and Workforce Developmen­t, said the proposals didn’t meet the standard the community and the city had sought.

“Ultimately, the final proposals didn’t realize the cultural and economic potential of the Fillmore Heritage Center and its significan­ce to the community and commercial corridor,” Torres said. “It’s now time to roll up our sleeves, go back to the drawing board and bring something beneficial and impactful to the lower Fillmore neighborho­od.”

The decision not to move forward with the sale comes nine months after Torres’ agency solicited offers for the

50,000- square- foot commercial component of the Fillmore Heritage Center at 1330 Fillmore St., just south of Geary Boulevard.

The building includes the empty Yoshi’s space, a closed art gallery, a 160car parking garage and the 6,300- square- foot 1300 on Fillmore restaurant, which recently closed. The complex also includes 80 condominiu­ms, but all the commercial space is now vacant.

The city had set a $ 6.5 million minimum bid for the space, although the appraised value is $ 11 million. San Francisco has a legal obligation to recoup some of the money it spent on the $ 80 million Heritage Center project, 35 percent of which was financed with public funds. The city also has a $ 5.5 million loan with the federal government that is due in 2027 but can be prepaid this year. In addition, the land was donated to the developer by the city’s former redevelopm­ent agency.

Two proposals were serious enough that the committee asked for more details. Both involved variations on a market hall and food business incubator, along with entertainm­ent. But the committee rejected one proposal, and financing for the second fell through.

Several other proposals were weak enough that the selection panel didn’t seek additional informatio­n from the sponsors.

The Rev. Amos Brown, the pastor at Third Baptist Church on McAllister Street who headed the selection committee, said none of the groups proposing to buy the space offered enough in the way of opportunit­ies and benefits to Fillmore residents.

“They did not fulfill the vision that the city has establishe­d,” Brown said. “We are committed to doing the right, fair and just thing, and that is to provide benefits for a community that has been underserve­d and gravely disappoint­ed by decades of public policy in the city.” The nine- member committee, chosen by the city, included five community members and representa­tives from city agencies.

The request for proposals came a decade after the Fillmore Heritage Center opened with the hope of rekindling at least a bit of the African American cultural spark that made the Fillmore the Harlem of the West in the 1940s and 1950s. The area, famous for jazz clubs such as Jimbo’s Bop City, lost most of its Victorian homes — many owned by African American families — when Geary Boulevard was widened into an expressway and new housing blocks were built to replace the old Victorians, which the city considered derelict at the time.

Board of Supervisor­s President London Breed, who grew up in the Western Addition, said proposals for the Yoshi’s space were underwhelm­ing and several groups that had expressed interest didn’t follow through.

Breed said she would like to be able to hand the complex over to a communityb­ased nonprofit, but that would not be legal under state laws governing disposal of sites once owned by redevelopm­ent agencies, which ceased to exist when Gov. Jerry Brown eliminated them statewide several years ago in a budget compromise.

“It’s frustratin­g, but it’s not like we can sell it for a dollar or give it away and have the city subsidize it,” Breed said. “It’s not possible and would also be irresponsi­ble.”

Fillmore residents have made it clear they want African American ownership, arts and culture uses, jobs for local residents and public access to the space at a reasonable cost, she said.

Even as the city was informing bidders Thursday that their proposals were not acceptable, the nonprofit New Community Leadership Foundation held a rally announcing it is creating an oversight board to “monitor the sale of the property and protect the rights of the stakeholde­rs whom the Fillmore Heritage Center was intended to serve.”

“Let us have the say- so on where the money goes this time, let us say who owns the building and what they can do with it this time,” said Daniel Landry, a longtime resident of the Fillmore’s Martin Luther King-Marcus Garvey Co- op. The group has no legal standing in the dispositio­n of the center or its commercial spaces.

The Rev. Erris Edgerly of the Fillmore community group Brothers for Change said the fact that Yoshi’s, an Oakland jazz venue, was so heavily subsidized by the former redevelopm­ent agency and then shuttered the business anyway left a bad impression among Fillmore residents.

“Yoshi’s was supposed to bring back what was the Fillmore,” Edgerly said. “The city allows you to come in, get millions of dollars, and just walk away with no accountabi­lity.”

The Mayor’s Office of Economic and Workforce Developmen­t will spend the next few months deciding whether to issue a new request for proposals or take some other approach to selling the space.

 ?? Lea Suzuki / The Chronicle ?? A city committee was unimpresse­d with all candidates who presented proposals for the Fillmore Heritage Center, where Yoshi’s nightclub once stood.
Lea Suzuki / The Chronicle A city committee was unimpresse­d with all candidates who presented proposals for the Fillmore Heritage Center, where Yoshi’s nightclub once stood.

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