Delays in major San Francisco construction projects are nothing new. But this time, it’s global trade tensions and tariffs that are trickling down to affect daily life in Chinatown — specifically, at Portsmouth Square, often referred to as the neighborhood’s “living room.”
The long-awaited $71 million renovation of Portsmouth Square has hit another snag. The Recreation and Parks Department has announced that, due to unexpectedly high construction bids, the project will be rebid, resulting in a delay of at least five and a half months.
“The cost spike is tied to global tariffs, supply-chain slowdowns, and construction inflation,” said department spokesperson Tamara Aparton. “Rebidding now protects public dollars, keeps vital state and bond funding on the table, and avoids years of delay. Most importantly, it keeps the heart of the project intact.”
U.S. tariffs on Chinese imports were as high as 145% in April, but after both countries agreed to pause the trade war, the tariffs dropped to 55%.
Initially slated to break ground in 2023 and be completed in 2025, construction at Portsmouth Square is now expected to begin after the 2026 Lunar New Year and the Chinatown parade. Officials estimate it could be complete in early 2028.
The engineering budget is $43 million, but the lowest bid received came in at $54.7 million. A new bidding process will open in September, with minor design tweaks to reduce costs while preserving the core of the project.
Aparton said those tweaks may include alternate materials or adjustments to nonessential elements like fencing, but key components — such as the expanded clubhouse, playground, shaded gathering spaces, rotating art wall, and cultural interpretation features — will remain unchanged.
Portsmouth Square has served as a vital social hub for generations of Chinese immigrants — a place to gather, play cards, and bring children to play. Its facilities have long struggled to meet the needs of a growing and aging population.
“The community has waited far too long,” said Anni Chung, CEO of Self Help for the Elderly. “Some of the people who fought for this project 20 years ago are no longer with us. How many 12-year cycles do we have in life?”
Chung said her organization plans to make use of the renovated clubhouse, which will be expanded to 7,000 square feet from the current 700.
The ‘notorious’ bridge
There is one unresolved issue: the fate of the so-called bridge to nowhere that connects the Chinese Culture Center in the Hilton hotel to Portsmouth Square above Kearny Street.
About $5 million of the renovation cost is tied to demolishing this bridge, but the city is negotiating with the Hilton over who will pay for it.
“While the city works through the bid process, we are separately continuing to negotiate the outstanding issues related to the allocation of demolition costs between the city and the Hilton,” said Jen Kwart, spokesperson for the city attorney’s office. “The bid process will proceed independently of the negotiations.”
The city is also coordinating with the Hilton on permits and plans to renovate the hotel’s façade after the bridge is removed.
Kwart and Aparton confirmed that the cost of the bridge removal will be included in the September bidding process, but that does not mean the city will pay for it.
A Hilton representative could not be reached for comment.
City officials emphasized the urgency of moving forward: Roughly $6 million in state funding is at risk of expiring in mid-2026 if not spent.
One other issue raised by community members involves the location of public restrooms near the Walter U. Lum Place corner — an area the Chinatown Media & Arts Collaborative envisions as an ideal public gathering space. Some worry the restrooms could negatively impact that goal.
But there are unlikely to be any major design changes to the new park, as part of an effort to avoid another delay.
“We’ve already had so many meetings,” Chung said. “The longer we wait, the more expensive this will get.”