Josh Koehn

Officials for San Francisco, UC Berkeley and the University of California state school system have been quietly meeting this summer to explore options for creating <a href="https://sfstandard.com/2023/04/10/sf-doom-loop-convert-downtown-offices-student-housing-uc-berkeley/">satellite housing and classrooms for graduate students in Downtown</a>, The Standard has learned.

Breaking the SF doom loop: Convert downtown offices into student housing

core/paragraph

Officials for San Francisco, UC Berkeley and the University of California state school system have been quietly meeting this summer to explore options for creating <a href="https://sfstandard.com/2023/04/10/sf-doom-loop-convert-downtown-offices-student-housing-uc-berkeley/">satellite housing and classrooms for graduate students in Downtown</a>, The Standard has learned.

Multiple sources confirmed that the meetings—taking place on a roughly bi-weekly schedule—commenced shortly after <a href="https://sfstandard.com/2023/07/18/san-francisco-mayor-asks-university-of-california-to-explore-downtown-campus/">Mayor London Breed sent a letter</a> in July to Richard Leib, chair of the University of California Board of Regents, expressing an interest in collaborating on the conversion of vacant properties in the struggling Downtown core.

San Francisco mayor asks University of California to explore downtown campus

Multiple sources confirmed that the meetings—taking place on a roughly bi-weekly schedule—commenced shortly after <a href="https://sfstandard.com/2023/07/18/san-francisco-mayor-asks-university-of-california-to-explore-downtown-campus/">Mayor London Breed sent a letter</a> in July to Richard Leib, chair of the University of California Board of Regents, expressing an interest in collaborating on the conversion of vacant properties in the struggling Downtown core.

Sources said the more exciting conversations have focused on creating housing for UC Berkeley graduate students, as well as potential classrooms for grad students pursuing higher degrees in climate science and artificial intelligence, or AI.&nbsp;

Sources said the more exciting conversations have focused on creating housing for UC Berkeley graduate students, as well as potential classrooms for grad students pursuing higher degrees in climate science and artificial intelligence, or AI.&nbsp;

However, sources noted that UC Berkeley also has shown interest in partnering with other universities to create a higher-ed “village” for graduate students.

However, sources noted that UC Berkeley also has shown interest in partnering with other universities to create a higher-ed “village” for graduate students.

The pandemic has hollowed out commercial towers in San Francisco—the city had a vacancy rate of 34% in the third quarter, according to CBRE—and many are never expected to again reach full occupancy due to the shift to remote work. However, a <a href="https://sfstandard.com/2023/09/05/san-franciscos-real-estate-reset-is-already-happening/">reset in real estate values is underway</a>, and university officials have warmed to the idea of scooping up properties that are selling for a fraction of what they once cost, according to sources involved in the meetings.

San Francisco’s real estate reset is already happening

The pandemic has hollowed out commercial towers in San Francisco—the city had a vacancy rate of 34% in the third quarter, according to CBRE—and many are never expected to again reach full occupancy due to the shift to remote work. However, a <a href="https://sfstandard.com/2023/09/05/san-franciscos-real-estate-reset-is-already-happening/">reset in real estate values is underway</a>, and university officials have warmed to the idea of scooping up properties that are selling for a fraction of what they once cost, according to sources involved in the meetings.

An advertisement for creative office buildouts for commercial real estate at 130 Sutter Street in Downtown San Francisco on Friday, Sept. 22, 2023. Tech sector companies in downtown San Francisco have begun to require staff and employees to return to work in their Downtown San Francisco office after working remote for many years during the Covid pandemic.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/DowntownSFRTO092123_009.jpg?w=2500" alt="" class="wp-image-204744"/><figcaption class="wp-element-caption">An advertisement for creative office buildouts for commercial real estate at 130 Sutter Street in Downtown San Francisco on Friday, Sept. 22, 2023. </figcaption></figure>

core/image

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/DowntownSFRTO092123_009.jpg?w=2500" alt="" class="wp-image-204744"/><figcaption class="wp-element-caption">An advertisement for creative office buildouts for commercial real estate at 130 Sutter Street in Downtown San Francisco on Friday, Sept. 22, 2023. </figcaption></figure>

Public universities are exempt from much of the red tape that otherwise stymies development, and UC Berkeley and other public universities could receive substantial tax breaks, making the project financially viable. City officials are keen on finding a way to bring students and new residents into Downtown to not only fill its vacant towers, but also reinvigorate surrounding restaurants, bars and other small businesses.

Public universities are exempt from much of the red tape that otherwise stymies development, and UC Berkeley and other public universities could receive substantial tax breaks, making the project financially viable. City officials are keen on finding a way to bring students and new residents into Downtown to not only fill its vacant towers, but also reinvigorate surrounding restaurants, bars and other small businesses.

“We continue to believe an increased UC presence would anchor a strong future for Downtown by linking UC’s pipeline of talent directly to San Francisco&#8217;s community of entrepreneurs and investors,” Gloria Chan, a spokesperson for the city’s Office of Economic and Workforce Development (OEWD), told The Standard in an email.

“We continue to believe an increased UC presence would anchor a strong future for Downtown by linking UC’s pipeline of talent directly to San Francisco's community of entrepreneurs and investors,” Gloria Chan, a spokesperson for the city’s Office of Economic and Workforce Development (OEWD), told The Standard in an email.

“We continue to believe an increased UC presence would anchor a strong future for Downtown by linking UC’s pipeline of talent directly to San Francisco&#8217;s community of entrepreneurs and investors,” Gloria Chan, a spokesperson for the city’s Office of Economic and Workforce Development (OEWD), told The Standard in an email.

Sarah Dennis-Phillips—<a href="https://sfstandard.com/2023/05/31/london-breed-hires-economic-development-director-sarah-dennis-phillips-sf-doom-loop/">hired in May to take over as OEWD’s executive director</a>—has been the point person in frequent meetings with university and local nonprofit officials, according to sources familiar with the conversations.

Breed hires new head of economic development to confront San Francisco&#8217;s doom loop

Sarah Dennis-Phillips—<a href="https://sfstandard.com/2023/05/31/london-breed-hires-economic-development-director-sarah-dennis-phillips-sf-doom-loop/">hired in May to take over as OEWD’s executive director</a>—has been the point person in frequent meetings with university and local nonprofit officials, according to sources familiar with the conversations.

“As part of our Downtown economic development efforts, OEWD has provided information about space availability, local industry growth, capital investment and Mayor Breed&#8217;s revitalization efforts to the University of California as well as to numerous other potential investors and activators,” Chan said. “We will continue to proactively recruit new investment to Downtown, including new businesses, educational uses, housing and the arts.”

“As part of our Downtown economic development efforts, OEWD has provided information about space availability, local industry growth, capital investment and Mayor Breed's revitalization efforts to the University of California as well as to numerous other potential investors and activators,” Chan said. “We will continue to proactively recruit new investment to Downtown, including new businesses, educational uses, housing and the arts.”

“As part of our Downtown economic development efforts, OEWD has provided information about space availability, local industry growth, capital investment and Mayor Breed&#8217;s revitalization efforts to the University of California as well as to numerous other potential investors and activators,” Chan said. “We will continue to proactively recruit new investment to Downtown, including new businesses, educational uses, housing and the arts.”

Dan Mogulof, a spokesperson for UC Berkeley, confirmed that meetings have been taking place but described them as exploratory conversations still in the very early stages.

Dan Mogulof, a spokesperson for UC Berkeley, confirmed that meetings have been taking place but described them as exploratory conversations still in the very early stages.

Ryan King, a spokesperson for the University of California Office of the President, which along with the UC Regents oversees a system of 10 campuses, five medical centers and three affiliated national laboratories, said that “work is underway” in an email to The Standard.

Ryan King, a spokesperson for the University of California Office of the President, which along with the UC Regents oversees a system of 10 campuses, five medical centers and three affiliated national laboratories, said that “work is underway” in an email to The Standard.

Mayor London Breed speaks at a press conference to announce Salesforce’s $20 million grant at George Washington High School in San Francisco on Monday, Sept. 11, 2023. San Francisco Unified School District (SFUSD) and Oakland Unified School District (OUSD) will receive $5.5 million each to help prepare students for careers in Artificial Intelligence (AI).

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/SalesforceAISchools091123_JY_006.jpg?w=2500" alt="" class="wp-image-199615"/><figcaption class="wp-element-caption">Mayor London Breed speaks at a press conference to announce Salesforce’s $20 million grant at George Washington High School in San Francisco on Monday, Sept. 11.</figcaption></figure>

“I can confirm that the Office of the President has been tasked with exploring the suggestions in Mayor Breed’s letter encouraging the University of California to explore a presence in downtown San Francisco,” King wrote.&nbsp;

“I can confirm that the Office of the President has been tasked with exploring the suggestions in Mayor Breed’s letter encouraging the University of California to explore a presence in downtown San Francisco,” King wrote.&nbsp;

The San Francisco Bay Area Planning and Urban Research Association, better known as SPUR, also has been involved in meetings with city officials and different parts of the UC system to figure out what might work for the conversion of vacant Downtown towers into housing and classrooms.

The San Francisco Bay Area Planning and Urban Research Association, better known as SPUR, also has been involved in meetings with city officials and different parts of the UC system to figure out what might work for the conversion of vacant Downtown towers into housing and classrooms.

“We’re not throwing all of our eggs in one basket or one approach,” a source familiar with the conversations said, “but there is a world in which [a Downtown university campus and housing] is a really strong possibility.”

“We’re not throwing all of our eggs in one basket or one approach,” a source familiar with the conversations said, “but there is a world in which [a Downtown university campus and housing] is a really strong possibility.”

One option that appears to be off the table for now, however, is bringing UC Berkeley undergraduates to Downtown San Francisco. Despite having close access to BART and other public transit, school officials believe it would take away from the college experience.

One option that appears to be off the table for now, however, is bringing UC Berkeley undergraduates to Downtown San Francisco. Despite having close access to BART and other public transit, school officials believe it would take away from the college experience.

Mogulof said that Chancellor Carol Christ has made it clear that “living in close proximity to a university campus is an essential element to the educational experience.”

Mogulof said that Chancellor Carol Christ has made it clear that “living in close proximity to a university campus is an essential element to the educational experience.”

San Francisco, UC Berkeley officials discuss housing and climate, AI classes in downtown

Garrett Leahy

A bakery, ceramics shop and a nonprofit sewing academy-slash-clothing store are among the eclectic mix of more than 17 pop-ups opening as part of <a href="https://sfstandard.com/2023/08/24/vacant-to-vibrant-downtown-storefronts-open/">a plan to revitalize</a> San Francisco’s struggling Downtown.&nbsp;

17 new pop-up shops to open in empty downtown San Francisco storefronts

A bakery, ceramics shop and a nonprofit sewing academy-slash-clothing store are among the eclectic mix of more than 17 pop-ups opening as part of <a href="https://sfstandard.com/2023/08/24/vacant-to-vibrant-downtown-storefronts-open/">a plan to revitalize</a> San Francisco’s struggling Downtown.&nbsp;

The city’s Vacant to Vibrant initiative launches next Thursday, but organizers invited press along for a first look at the program ahead of opening day.

The city’s Vacant to Vibrant initiative launches next Thursday, but organizers invited press along for a first look at the program ahead of opening day.

READ MORE: <a href="https://sfstandard.com/2023/08/24/vacant-to-vibrant-downtown-storefronts-open/">17 New Pop-Up Shops To Open in Empty Downtown San Francisco Storefronts</a>

READ MORE: <a href="https://sfstandard.com/2023/08/24/vacant-to-vibrant-downtown-storefronts-open/">17 New Pop-Up Shops To Open in Empty Downtown San Francisco Storefronts</a>

The pop-ups are dotted around the Downtown core on Jackson, Pine, California and Montgomery streets—as well as in the Embarcadero Center and along the Embarcadero.

The pop-ups are dotted around the Downtown core on Jackson, Pine, California and Montgomery streets—as well as in the Embarcadero Center and along the Embarcadero.

Julian Prince Dash and his son Julian Akira, eight months, stand inside Handmade clothes and sewing machines are displayed inside a small business pop-up for Holy Stitch Factory Fellowship in the ground floor of an office tower at 100 California St.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/20230928_113715.jpg?w=2500" alt="" class="wp-image-205902"/><figcaption class="wp-element-caption">Holy Stitch Factory Fellowship proprietor Julian Prince Dash and his 8-month-old son, Julian Akira, stand inside his pop-up shop in the ground floor of an office tower at 100 California St.</figcaption></figure>

At a Jackson Street pop-up for Yonder Shop + Studio, a San Francisco handmade ceramics and glassware store, shoppers can buy bulb vases for $50 and glasses for $55, all made by owner Linda Fahey.

At a Jackson Street pop-up for Yonder Shop + Studio, a San Francisco handmade ceramics and glassware store, shoppers can buy bulb vases for $50 and glasses for $55, all made by owner Linda Fahey.

“During the pandemic, shopping habits changed and a lot of people got used to online shopping,” Fahey said. “We have to lure people back in.”

“During the pandemic, shopping habits changed and a lot of people got used to online shopping,” Fahey said. “We have to lure people back in.”

Fahey, whose store is on Cabrillo Street and 11th Avenue, said the program helps by giving her a second storefront in an area better known for retail than the comparatively sleepy Richmond District.

Fahey, whose store is on Cabrillo Street and 11th Avenue, said the program helps by giving her a second storefront in an area better known for retail than the comparatively sleepy Richmond District.

“Over there, we’re kind of in the middle of nowhere,” Fahey said. “Applying for this was a no-brainer.”

“Over there, we’re kind of in the middle of nowhere,” Fahey said. “Applying for this was a no-brainer.”

Fahey was one of many interested in the pop-up program, which gives small businesses three months rent-free inside a vacant Downtown San Francisco commercial property as part of the <a href="https://www.vibrantsf.org" target="_blank" rel="noreferrer noopener">Vacant to Vibrant program</a>, which aims to jumpstart Downtown’s <a href="https://sfstandard.com/2023/06/29/the-grim-state-of-downtown-san-francisco-by-the-numbers/">post-pandemic recovery</a>. By the time applications were due, 850 businesses and community organizations applied to run pop-ups.&nbsp;

The grim state of downtown San Francisco, by the numbers

Fahey was one of many interested in the pop-up program, which gives small businesses three months rent-free inside a vacant Downtown San Francisco commercial property as part of the <a href="https://www.vibrantsf.org" target="_blank" rel="noreferrer noopener">Vacant to Vibrant program</a>, which aims to jumpstart Downtown’s <a href="https://sfstandard.com/2023/06/29/the-grim-state-of-downtown-san-francisco-by-the-numbers/">post-pandemic recovery</a>. By the time applications were due, 850 businesses and community organizations applied to run pop-ups.&nbsp;

Owner Linda Fahey stands inside the Jackson Street pop-up for Yonder Shop + Studio on Sept. 28, 2023.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/20230928_105653.jpg?w=2500" alt="" class="wp-image-205898"/><figcaption class="wp-element-caption">Yonder Shop + Studio owner Linda Fahey stands inside her Jackson Street pop-up, which opens next week as part of the city&#8217;s Vacant to Vibrant initiative. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/20230928_105653.jpg?w=2500" alt="" class="wp-image-205898"/><figcaption class="wp-element-caption">Yonder Shop + Studio owner Linda Fahey stands inside her Jackson Street pop-up, which opens next week as part of the city's Vacant to Vibrant initiative. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/20230928_105653.jpg?w=2500" alt="" class="wp-image-205898"/><figcaption class="wp-element-caption">Yonder Shop + Studio owner Linda Fahey stands inside her Jackson Street pop-up, which opens next week as part of the city&#8217;s Vacant to Vibrant initiative. </figcaption></figure>

Simon Bertrang said that the goal of the program is to turn Downtown into a regional arts and culture destination. Betrang’s organization, SF New Deal, runs the Vacant to Vibrant program and works with the city to handle lease negotiations and other red tape to make it as easy as possible for businesses to open their pop-ups.

Simon Bertrang said that the goal of the program is to turn Downtown into a regional arts and culture destination. Betrang’s organization, SF New Deal, runs the Vacant to Vibrant program and works with the city to handle lease negotiations and other red tape to make it as easy as possible for businesses to open their pop-ups.

“You bring your idea,&#8221; Bertrang said. &#8220;We take care of the rest.&#8221;

“You bring your idea," Bertrang said. "We take care of the rest."

“You bring your idea,&#8221; Bertrang said. &#8220;We take care of the rest.&#8221;

Mayor London Breed <a href="https://sfstandard.com/2023/02/09/breeds-state-of-the-city-address-in-three-minutes/">announced her goal</a> to revitalize Downtown in February during her State of the City address.

Breed’s State of the City address in 3 minutes

Mayor London Breed <a href="https://sfstandard.com/2023/02/09/breeds-state-of-the-city-address-in-three-minutes/">announced her goal</a> to revitalize Downtown in February during her State of the City address.

Shops like Fahey’s are part of a soft launch before all pop-ups officially open their doors next week. Hours and locations are posted on the <a href="https://www.vibrantsf.org/events/#open-hours" target="_blank" rel="noreferrer noopener">program’s website</a>.&nbsp;

Shops like Fahey’s are part of a soft launch before all pop-ups officially open their doors next week. Hours and locations are posted on the <a href="https://www.vibrantsf.org/events/#open-hours" target="_blank" rel="noreferrer noopener">program’s website</a>.&nbsp;

City officials said Yonder, Devil’s Teeth Baking Company and Holy Stitch Factory Fellowship are open Thursday during the listed hours.

City officials said Yonder, Devil’s Teeth Baking Company and Holy Stitch Factory Fellowship are open Thursday during the listed hours.

Handmade jeans at Holy Stitch start at $500. Proceeds go to youth between 13 and 25 years of age who make them by hand.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/20230928_113959_HDR.jpg?w=2500" alt="" class="wp-image-205908"/><figcaption class="wp-element-caption">Handmade jeans at Holy Stitch start at $500. Proceeds go to youth between 13 and 25 years of age who make them by hand.</figcaption></figure>

At Holy Stitch, occupying the ground floor of an office building at <a href="https://www.loopnet.com/Listing/100-California-St-San-Francisco-CA/27350420/" target="_blank" rel="noreferrer noopener">100 California St.</a>, customers can peruse a collection of handmade jeans, shirts and other clothes alongside the sewing machines used to make them.&nbsp;

At Holy Stitch, occupying the ground floor of an office building at <a href="https://www.loopnet.com/Listing/100-California-St-San-Francisco-CA/27350420/" target="_blank" rel="noreferrer noopener">100 California St.</a>, customers can peruse a collection of handmade jeans, shirts and other clothes alongside the sewing machines used to make them.&nbsp;

Holy Stitch is a nonprofit sewing school and garment factory where teens and young adults between the ages of 13 and 25 hand-make clothes from donated garments and scrap textiles and the youth pocket 80% of the proceeds. Shirts on sale at the Downtown pop-up range from $20 to $125, while handmade jeans start at $500.

Holy Stitch is a nonprofit sewing school and garment factory where teens and young adults between the ages of 13 and 25 hand-make clothes from donated garments and scrap textiles and the youth pocket 80% of the proceeds. Shirts on sale at the Downtown pop-up range from $20 to $125, while handmade jeans start at $500.

80% of proceeds from clothing sales at Holy Stitch go to the youth who make them.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/20230928_112645.jpg?w=2500" alt="" class="wp-image-205905"/><figcaption class="wp-element-caption">Some 80% of proceeds from clothing sales at Holy Stitch go to the youth who make them.</figcaption></figure>

“It all goes to the names on the tag,” said Julian Prince Dash, who heads the organization.&nbsp;

“It all goes to the names on the tag,” said Julian Prince Dash, who heads the organization.&nbsp;

Dash said he’s been participating in other San Francisco business pop-up events as far back as <a href="https://www.nytimes.com/2012/04/20/us/streetopia-project-imagines-a-perfect-san-francisco.html">Streetopia</a> in 2011 and that pop-ups give his organization an opportunity to show off clothes and advertise classes in a more direct way than social media can offer.

Dash said he’s been participating in other San Francisco business pop-up events as far back as <a href="https://www.nytimes.com/2012/04/20/us/streetopia-project-imagines-a-perfect-san-francisco.html">Streetopia</a> in 2011 and that pop-ups give his organization an opportunity to show off clothes and advertise classes in a more direct way than social media can offer.

“It gets us into different neighborhoods,” Dash said. “This is probably my 16th rodeo.”

“It gets us into different neighborhoods,” Dash said. “This is probably my 16th rodeo.”

Handmade cups and vases sit on display inside the Jackson Street pop-up for Yonder Shop + Studio.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/20230928_105837.jpg?w=2500" alt="" class="wp-image-205897"/><figcaption class="wp-element-caption">Handmade cups and vases sit on display inside the Jackson Street pop-up for Yonder Shop + Studio.</figcaption></figure>

The city has <a href="https://sfstandard.com/2023/08/24/vacant-to-vibrant-downtown-storefronts-open/">entertained the possibility</a> of continuing the pop-up program beyond the current three months. Businesses that sign onto a long-term lease afterward may be eligible to get another free three months’ rent, even if they rent a different Downtown location, Bertrang said.

The city has <a href="https://sfstandard.com/2023/08/24/vacant-to-vibrant-downtown-storefronts-open/">entertained the possibility</a> of continuing the pop-up program beyond the current three months. Businesses that sign onto a long-term lease afterward may be eligible to get another free three months’ rent, even if they rent a different Downtown location, Bertrang said.

Sarah Dennis Phillips, head of the city’s Office of Economic and Workforce Development, said for the Vacant to Vibrant program to continue, the pop-ups ultimately have to be profitable.

Sarah Dennis Phillips, head of the city’s Office of Economic and Workforce Development, said for the Vacant to Vibrant program to continue, the pop-ups ultimately have to be profitable.

“These have to be self-sustaining without a free rent program,” Phillips said. “We feel that small businesses will be key to Downtown recovery. That’s what San Francisco is all about.”

“These have to be self-sustaining without a free rent program,” Phillips said. “We feel that small businesses will be key to Downtown recovery. That’s what San Francisco is all about.”

San Francisco pop-ups open in bid to breathe life into downtown

Noah Baustin

The San Francisco Police Department is threatening to terminate its contract with SF SAFE, the troubled nonprofit partner it has worked with for decades, after a series of financial scandals in the past month revealed that it misspent public funds and stiffed its vendors.

The San Francisco Police Department is threatening to terminate its contract with SF SAFE, the troubled nonprofit partner it has worked with for decades, after a series of financial scandals in the past month revealed that it misspent public funds and stiffed its vendors.

SFPD sent a letter last week to SF SAFE with a series of questions that followed up on a Controller’s Office report that found that the organization wrongly spent about $80,000 of taxpayer funds on luxury gift boxes, limo rides and a Lake Tahoe trip, Diana Oliva-Aroche, SFPD director of policy and public affairs, announced at a Board of Supervisors hearing Thursday.

SFPD sent a letter last week to SF SAFE with a series of questions that followed up on a Controller’s Office report that found that the organization wrongly spent about $80,000 of taxpayer funds on luxury gift boxes, limo rides and a Lake Tahoe trip, Diana Oliva-Aroche, SFPD director of policy and public affairs, announced at a Board of Supervisors hearing Thursday.

On Friday, SFPD spokesperson Evan Sernoffsky said the department was working with the Controller&#8217;s Office to see if SF SAFE had responded to its demands.

On Friday, SFPD spokesperson Evan Sernoffsky said the department was working with the Controller's Office to see if SF SAFE had responded to its demands.

On Friday, SFPD spokesperson Evan Sernoffsky said the department was working with the Controller&#8217;s Office to see if SF SAFE had responded to its demands.

&#8220;If they have not, we will move forward with termination of the contract,&#8221; Sernoffsky told The Standard.

"If they have not, we will move forward with termination of the contract," Sernoffsky told The Standard.

&#8220;If they have not, we will move forward with termination of the contract,&#8221; Sernoffsky told The Standard.

During that same hearing, Supervisor Aaron Peskin raised the specter of another issue that may put SF SAFE’s city funding in jeopardy: The group’s nonprofit status is listed as delinquent with the California Attorney General’s Registry of Charities and Fundraisers. California nonprofits that fail to submit their annual filings to the state and enter delinquency should be blocked by law from receiving funds.

During that same hearing, Supervisor Aaron Peskin raised the specter of another issue that may put SF SAFE’s city funding in jeopardy: The group’s nonprofit status is listed as delinquent with the California Attorney General’s Registry of Charities and Fundraisers. California nonprofits that fail to submit their annual filings to the state and enter delinquency should be blocked by law from receiving funds.

The termination threats come on the heels of damaging revelations about SF SAFE and its leadership. After the Controller’s Office report was released in January, <a href="https://sfstandard.com/2024/01/23/san-francisco-safe-nonprofit-chris-larsen-grant-funding/">multiple subcontractors</a> of the nonprofit came forward saying they had been <a href="https://sfstandard.com/2024/01/31/san-francisco-safe-castro-community-on-patrol-missing-funds/">bilked out of payments</a>. The organization’s board of directors subsequently fired <a href="https://sfstandard.com/2024/01/24/san-francisco-nonprofit-sf-safe-kyra-worthy-fired/">Executive Director Kyra Worthy</a> on Jan. 24, and the District Attorney’s Office confirmed an <a href="https://sfstandard.com/2024/02/02/san-francisco-safe-criminal-investigation-da-confirms/">ongoing criminal investigation into SF SAFE</a>.&nbsp;

Crypto boss who gave $1.8M to San Francisco crime nonprofit wants audit of &#8216;discrepancies&#8217;

Funds for Castro patrol go missing at embattled nonprofit SF SAFE, group says

Troubled San Francisco nonprofit SF SAFE fires director, reports possible check forgery to police

DA confirms criminal probe into troubled nonprofit SF SAFE

The termination threats come on the heels of damaging revelations about SF SAFE and its leadership. After the Controller’s Office report was released in January, <a href="https://sfstandard.com/2024/01/23/san-francisco-safe-nonprofit-chris-larsen-grant-funding/">multiple subcontractors</a> of the nonprofit came forward saying they had been <a href="https://sfstandard.com/2024/01/31/san-francisco-safe-castro-community-on-patrol-missing-funds/">bilked out of payments</a>. The organization’s board of directors subsequently fired <a href="https://sfstandard.com/2024/01/24/san-francisco-nonprofit-sf-safe-kyra-worthy-fired/">Executive Director Kyra Worthy</a> on Jan. 24, and the District Attorney’s Office confirmed an <a href="https://sfstandard.com/2024/02/02/san-francisco-safe-criminal-investigation-da-confirms/">ongoing criminal investigation into SF SAFE</a>.&nbsp;

It’s not the first time Worthy was accused of misspending money: A 2017 investigation by the West Contra Costa Unified School District found that the nonprofit she led before joining SF SAFE <a href="https://sfstandard.com/2024/01/25/san-francisco-safe-nonprofit-kyra-worthy-for-richmond/">submitted false invoices</a>, and the district demanded the return of nearly $235,000

Before SF SAFE hired Kyra Worthy, misspending questions dogged her East Bay nonprofit

It’s not the first time Worthy was accused of misspending money: A 2017 investigation by the West Contra Costa Unified School District found that the nonprofit she led before joining SF SAFE <a href="https://sfstandard.com/2024/01/25/san-francisco-safe-nonprofit-kyra-worthy-for-richmond/">submitted false invoices</a>, and the district demanded the return of nearly $235,000

Since learning of the Controller’s Office findings, SFPD conducted its own review of SF SAFE’s spending and identified about $95,000 in ineligible expenditures by the nonprofit, the department&#8217;s former CFO, Patrick Leung, said during the Thursday hearing.

Since learning of the Controller’s Office findings, SFPD conducted its own review of SF SAFE’s spending and identified about $95,000 in ineligible expenditures by the nonprofit, the department's former CFO, Patrick Leung, said during the Thursday hearing.

Since learning of the Controller’s Office findings, SFPD conducted its own review of SF SAFE’s spending and identified about $95,000 in ineligible expenditures by the nonprofit, the department&#8217;s former CFO, Patrick Leung, said during the Thursday hearing.

SF SAFE did not reply to requests for comment on this story.

SF SAFE did not reply to requests for comment on this story.

A screen grab from SFGovTV of Kyra Worthy, left, the executive director of San Francisco SAFE, addressing the media as Supervisor Aaron Peskin, center, and SFPD Chief Bill Scott speak in the background during a press conference about crime and safety during during the annual Lunar New Year holiday in Chinatown in San Francisco on Jan. 11, 2023.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/kyra-worthy-press-conference03.jpg?w=2078" alt="People at a press conference, with a woman at the microphone and a man behind her speaking with a police chief." class="wp-image-242598"/><figcaption class="wp-element-caption">SF SAFE Executive Director Kyra Worthy, left, speaks as Supervisor Aaron Peskin, center, and SFPD Chief Bill Scott talk in the background in San Francisco&#8217;s Chinatown on Jan. 11, 2023.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/kyra-worthy-press-conference03.jpg?w=2078" alt="People at a press conference, with a woman at the microphone and a man behind her speaking with a police chief." class="wp-image-242598"/><figcaption class="wp-element-caption">SF SAFE Executive Director Kyra Worthy, left, speaks as Supervisor Aaron Peskin, center, and SFPD Chief Bill Scott talk in the background in San Francisco's Chinatown on Jan. 11, 2023.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/kyra-worthy-press-conference03.jpg?w=2078" alt="People at a press conference, with a woman at the microphone and a man behind her speaking with a police chief." class="wp-image-242598"/><figcaption class="wp-element-caption">SF SAFE Executive Director Kyra Worthy, left, speaks as Supervisor Aaron Peskin, center, and SFPD Chief Bill Scott talk in the background in San Francisco&#8217;s Chinatown on Jan. 11, 2023.</figcaption></figure>

The San Francisco Office of Economic and Workforce Development also has an active contract with SF SAFE, though it has not drawn the same line in the sand as SFPD.

The San Francisco Office of Economic and Workforce Development also has an active contract with SF SAFE, though it has not drawn the same line in the sand as SFPD.

“We have not determined that we are going to close the contract as SFPD stated,” the office&#8217;s Executive Director Sarah Dennis Phillips said during the hearing. “Only because we are working with the city attorney to make sure that when we do so, we have exhausted all our remedies to get those subgrantees paid,” she said, in a nod to the vendors who’ve reported getting bilked by SF SAFE.

“We have not determined that we are going to close the contract as SFPD stated,” the office's Executive Director Sarah Dennis Phillips said during the hearing. “Only because we are working with the city attorney to make sure that when we do so, we have exhausted all our remedies to get those subgrantees paid,” she said, in a nod to the vendors who’ve reported getting bilked by SF SAFE.

“We have not determined that we are going to close the contract as SFPD stated,” the office&#8217;s Executive Director Sarah Dennis Phillips said during the hearing. “Only because we are working with the city attorney to make sure that when we do so, we have exhausted all our remedies to get those subgrantees paid,” she said, in a nod to the vendors who’ve reported getting bilked by SF SAFE.

It’s unclear whether the two city departments contracting with SF SAFE issued payments to the nonprofit while it was tagged as delinquent by the state, which could potentially run afoul of city and state policy.

It’s unclear whether the two city departments contracting with SF SAFE issued payments to the nonprofit while it was tagged as delinquent by the state, which could potentially run afoul of city and state policy.

The California Attorney General&#8217;s Office website states that SF SAFE’s registry expiration date was Nov. 15, 2022, which means it was delinquent. Both SFPD and the Office of Economic and Workforce Development have dispersed funds to the firm since then, including $1.5 million during the current fiscal year, according to the city’s <a href="https://openbook-report.sfgov.org/OBMiddleware/report.aspx?reportname=5">contractor payment database</a>.

The California Attorney General's Office website states that SF SAFE’s registry expiration date was Nov. 15, 2022, which means it was delinquent. Both SFPD and the Office of Economic and Workforce Development have dispersed funds to the firm since then, including $1.5 million during the current fiscal year, according to the city’s <a href="https://openbook-report.sfgov.org/OBMiddleware/report.aspx?reportname=5">contractor payment database</a>.

The California Attorney General&#8217;s Office website states that SF SAFE’s registry expiration date was Nov. 15, 2022, which means it was delinquent. Both SFPD and the Office of Economic and Workforce Development have dispersed funds to the firm since then, including $1.5 million during the current fiscal year, according to the city’s <a href="https://openbook-report.sfgov.org/OBMiddleware/report.aspx?reportname=5">contractor payment database</a>.

But SF SAFE was not on a list of delinquent nonprofits that the Controller’s Office sent out to city departments in February 2023, an Office of Economic and Workforce Development spokesperson said in a statement. When that office was preparing to award SF SAFE a grant in March 2023, the nonprofit’s status was listed as “Current—Awaiting Reporting,” which meant that it was in the process of fixing its delinquency with the state, the spokesperson said.

But SF SAFE was not on a list of delinquent nonprofits that the Controller’s Office sent out to city departments in February 2023, an Office of Economic and Workforce Development spokesperson said in a statement. When that office was preparing to award SF SAFE a grant in March 2023, the nonprofit’s status was listed as “Current—Awaiting Reporting,” which meant that it was in the process of fixing its delinquency with the state, the spokesperson said.

When nonprofits enter California delinquency, it means they have failed to file their annually required paperwork outlining their financial activity.

When nonprofits enter California delinquency, it means they have failed to file their annually required paperwork outlining their financial activity.

A photo illustration of a SF SAFE branded mug on the Olive Gift Co. website. San Francisco police wrongly reimbursed the anti-crime nonprofit SF SAFE at least $79,000 for lavish expenses including luxury gift boxes, valet parking at an exclusive club and a Lake Tahoe trip that featured limo services, a new report found. The report, released Thursday by the Controller’s Office, concluded that the San Francisco Police Department dished out the funds to the crime-prevention nonprofit San Francisco SAFE between July 2022 and last March without adequately checking whether the taxpayer dollars were being spent properly.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/sf-safe-02.jpg?w=2500" alt="A mug has the SF SAFE logo on it, listed on a website." class="wp-image-241080"/><figcaption class="wp-element-caption">A photo illustration shows a mug branded with the SF SAFE logo on the Olive Gift Co. website.</figcaption></figure>

City policy allows departments to withhold payments from delinquent nonprofits if they’re aware of the noncompliance with state regulations, but the Office of Economic and Workforce Development was not made aware of noncompliance by SF SAFE and continued to issue payments, the spokesperson said.

City policy allows departments to withhold payments from delinquent nonprofits if they’re aware of the noncompliance with state regulations, but the Office of Economic and Workforce Development was not made aware of noncompliance by SF SAFE and continued to issue payments, the spokesperson said.

The California Attorney General’s Office did not reply to a request to clarify the exact timeline of SF SAFE’s delinquency status, which would reveal when it was not authorized to receive public funds.

The California Attorney General’s Office did not reply to a request to clarify the exact timeline of SF SAFE’s delinquency status, which would reveal when it was not authorized to receive public funds.

In January 2023, <a href="https://sfstandard.com/2023/01/12/san-francisco-nonprofits-revoked-suspended-delinquent-millions/">an investigation by The Standard</a> found that San Francisco had active contracts with nearly 140 nonprofits that had failed to comply with state registration requirements. Those contracts were worth over $300 million. The next month, the city announced a new policy explicitly stating that San Francisco is not authorized to continue doing business with nonprofits that had lost their good standing with the state. It gave city contractors until June 30, 2023, to fix their statuses.

SF paid $25 million to revoked, suspended, delinquent nonprofits

In January 2023, <a href="https://sfstandard.com/2023/01/12/san-francisco-nonprofits-revoked-suspended-delinquent-millions/">an investigation by The Standard</a> found that San Francisco had active contracts with nearly 140 nonprofits that had failed to comply with state registration requirements. Those contracts were worth over $300 million. The next month, the city announced a new policy explicitly stating that San Francisco is not authorized to continue doing business with nonprofits that had lost their good standing with the state. It gave city contractors until June 30, 2023, to fix their statuses.

It was during that same month when SFPD Chief Bill Scott first requested the Controller’s Office to look into SF SAFE based on confidential sources telling police that the nonprofit was not paying its bills, Oliva-Aroche said at the hearing.

It was during that same month when SFPD Chief Bill Scott first requested the Controller’s Office to look into SF SAFE based on confidential sources telling police that the nonprofit was not paying its bills, Oliva-Aroche said at the hearing.

Peskin slammed SFPD for failing to catch the nonprofit’s misconduct earlier.

Peskin slammed SFPD for failing to catch the nonprofit’s misconduct earlier.

“This is obviously an embarrassment, not only to the [police] department, but to the city,” he said.

“This is obviously an embarrassment, not only to the [police] department, but to the city,” he said.

San Francisco police poised to cut contract of scandal-ridden SF SAFE nonprofit

Jillian D’Onfro

With a slew of deserted (or <a href="https://sfstandard.com/2024/03/09/union-square-post-macys-future/">soon-to-be empty</a>) storefronts increasingly pockmarking downtown San Francisco’s premier shopping districts, city leaders have been looking high and low for how to spark a turnaround.&nbsp;

The new Macy’s parade: Will store’s Union Square exit lead to a cascade of closures?

With a slew of deserted (or <a href="https://sfstandard.com/2024/03/09/union-square-post-macys-future/">soon-to-be empty</a>) storefronts increasingly pockmarking downtown San Francisco’s premier shopping districts, city leaders have been looking high and low for how to spark a turnaround.&nbsp;

Mayor London Breed’s new pitch? Getting vacant spaces filled quickly with pop-ups populated by local businesses and investing in a Filipino cultural zone that supporters hope could even help revive the languishing Emporium Centre mall.&nbsp;

Mayor London Breed’s new pitch? Getting vacant spaces filled quickly with pop-ups populated by local businesses and investing in a Filipino cultural zone that supporters hope could even help revive the languishing Emporium Centre mall.&nbsp;

“We’re making investments and working together to transform downtown into a neighborhood that we can enjoy, for the people who work here, visit here and live here,” Breed said at a press conference Tuesday at the Powell Street cable car turnaround.&nbsp;

“We’re making investments and working together to transform downtown into a neighborhood that we can enjoy, for the people who work here, visit here and live here,” Breed said at a press conference Tuesday at the Powell Street cable car turnaround.&nbsp;

Flanked by cops, <a href="https://sfstandard.com/2021/12/28/can-san-franciscos-new-welcome-ambassadors-uplift-the-citys-image/">orange-jacketed welcome ambassadors</a> and business leaders, she laid out her vision to bring “activation, excitement, fun and the joy that we so desperately need” to downtown.&nbsp;One idea surprisingly drew cheers from the crowd, even in an ostensibly transit-first city: increasing free parking options.

Meet the &#8216;orange people&#8217; who are helping visitors and buffing SF&#8217;s battered image

Flanked by cops, <a href="https://sfstandard.com/2021/12/28/can-san-franciscos-new-welcome-ambassadors-uplift-the-citys-image/">orange-jacketed welcome ambassadors</a> and business leaders, she laid out her vision to bring “activation, excitement, fun and the joy that we so desperately need” to downtown.&nbsp;One idea surprisingly drew cheers from the crowd, even in an ostensibly transit-first city: increasing free parking options.

The plan, which includes legislation, investment and new programs, will tackle the revitalization of downtown’s “HEART,” an acronym for hospitality, entertainment, arts and culture, retail and tourism. Funding is meant to come from $15 million in new investments included in the <a href="https://sfstandard.com/2024/05/31/san-francisco-budget-deficit-breed-plan/">Mayor’s recent budget proposal</a>, as well as a $390 million bond measure on the November ballot.&nbsp;

Breed proposes $1.3 billion budget bump, despite months of deficit warnings

The plan, which includes legislation, investment and new programs, will tackle the revitalization of downtown’s “HEART,” an acronym for hospitality, entertainment, arts and culture, retail and tourism. Funding is meant to come from $15 million in new investments included in the <a href="https://sfstandard.com/2024/05/31/san-francisco-budget-deficit-breed-plan/">Mayor’s recent budget proposal</a>, as well as a $390 million bond measure on the November ballot.&nbsp;

Sarah Dennis Phillips, executive director of the city’s Office of Economic and Workforce Development (OEWD), said, the changes are slated to begin in 2024, given the budget’s passage.

Sarah Dennis Phillips, executive director of the city’s Office of Economic and Workforce Development (OEWD), said, the changes are slated to begin in 2024, given the budget’s passage.

“These are all investments over the next year,” she told the Standard.

“These are all investments over the next year,” she told the Standard.

But with major deficits looming, these are relatively lean times. For example, the mayor’s proposed budget would <a href="https://sfstandard.com/2024/05/31/san-francisco-budget-deficit-breed-plan/">actually cut funding</a> to OEWD by $21.1 million.&nbsp;&nbsp;&nbsp;

But with major deficits looming, these are relatively lean times. For example, the mayor’s proposed budget would <a href="https://sfstandard.com/2024/05/31/san-francisco-budget-deficit-breed-plan/">actually cut funding</a> to OEWD by $21.1 million.&nbsp;&nbsp;&nbsp;

Breed laid out her vision Tuesday to bring “activation, excitement, fun and the joy that we so desperately need” to downtown. 


<figure class="wp-block-image"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/img_2240-1.jpg" alt="A woman stands in front of a microphone with a crowd of people behind her." class="wp-image-280786"/><figcaption class="wp-element-caption">Breed laid out her vision Tuesday to bring “activation, excitement, fun and the joy that we so desperately need” to downtown. </figcaption></figure>

Downtown San Francisco’s struggles, from <a href="https://sfstandard.com/2023/06/29/the-grim-state-of-downtown-san-francisco-by-the-numbers/">retail departures to office vacancies</a>, have attracted national attention, making it the poster child for post-Covid malaise. Meanwhile, half of all San Francisco visitors pass through Union Square and Yerba Buena, according to the city, so the neighborhoods’ impact on the tourism industry is significant.&nbsp;&nbsp;

Downtown San Francisco’s struggles, from <a href="https://sfstandard.com/2023/06/29/the-grim-state-of-downtown-san-francisco-by-the-numbers/">retail departures to office vacancies</a>, have attracted national attention, making it the poster child for post-Covid malaise. Meanwhile, half of all San Francisco visitors pass through Union Square and Yerba Buena, according to the city, so the neighborhoods’ impact on the tourism industry is significant.&nbsp;&nbsp;

San Francisco, UC Berkeley officials discuss housing and climate, AI classes in downtown

San Francisco pop-ups open in bid to breathe life into downtown

San Francisco police poised to cut contract of scandal-ridden SF SAFE nonprofit

Union Square is dying. Here’s the mayor’s new plan to save it

San Francisco group seeks $15M to turn Mid-Market into ‘world-class’ arts hub

Search Results for: Sarah Dennis-Phillips

San Francisco, UC Berkeley officials discuss housing and climate, AI classes in downtown

San Francisco pop-ups open in bid to breathe life into downtown

San Francisco police poised to cut contract of scandal-ridden SF SAFE nonprofit

Union Square is dying. Here’s the mayor’s new plan to save it

San Francisco group seeks $15M to turn Mid-Market into ‘world-class’ arts hub