The Standard Staff

San Francisco public schools will get a cut of <a href="https://sfstandard.com/business/sf-e-cigarette-giant-juul-settles-5k-claims-over-teen-vaping/">whatever Juul Labs pays</a> to settle litigation that blames the e-cigarette giant for marketing nicotine to young people.

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<p>San Francisco public schools will get a cut of <a href="https://sfstandard.com/business/sf-e-cigarette-giant-juul-settles-5k-claims-over-teen-vaping/">whatever Juul Labs pays</a> to settle litigation that blames the e-cigarette giant for marketing nicotine to young people.</p>

How big of a cut remains to be seen.&nbsp;But the San Francisco Unified School District said Thursday it will use what it gets to prevent kids from vaping.

<p>How big of a cut remains to be seen.&nbsp;But the San Francisco Unified School District said Thursday it will use what it gets to prevent kids from vaping.</p>

Juul’s money will bolster existing efforts to combat tobacco and e-cig use through school nurses, staff training, health curriculum and peer-led anti-vaping campaigns, a district spokesperson added.

<p>Juul’s money will bolster existing efforts to combat tobacco and e-cig use through school nurses, staff training, health curriculum and peer-led anti-vaping campaigns, a district spokesperson added.</p>

Superintendent Matt Wayne applauded the legal win.&nbsp;

<p>Superintendent Matt Wayne applauded the legal win.&nbsp;</p>

“San Francisco public schools are champions of tobacco prevention and education,” he said, “and we are very pleased with the outcome of this litigation.”

<p>“San Francisco public schools are champions of tobacco prevention and education,” he said, “and we are very pleased with the outcome of this litigation.”</p>

The settlement doesn’t get Altria Group—the parent company of Juul-backer Philip Morris—or other co-defendants off the hook, though, and SFUSD said it supports continued litigation against the companies.

<p>The settlement doesn’t get Altria Group—the parent company of Juul-backer Philip Morris—or other co-defendants off the hook, though, and SFUSD said it supports continued litigation against the companies.</p>

Juul payout will help SF schools fight teen vaping

Juul Labs says it will pay an undisclosed sum to settle 5,000 lawsuits from 10,000 people in the latest major legal battle over the San Francisco firm’s e-cigarette marketing and whether it’s fueling a teen vaping crisis.

<p>Juul Labs says it will pay an undisclosed sum to settle 5,000 lawsuits from 10,000 people in the latest major legal battle over the San Francisco firm’s e-cigarette marketing and whether it’s fueling a teen vaping crisis.</p>

The proposal merges personal injury, consumer protection and Native American litigation into a single Northern California case that took three years to resolve.

<p>The proposal merges personal injury, consumer protection and Native American litigation into a single Northern California case that took three years to resolve. </p>

And it comes just two months after the vaping giant promised a few dozen states it would shell out $438 million to resolve claims that its fruity e-cigarette flavors hooked young people on tobacco.

<p>And it comes just two months after the vaping giant promised a few dozen states it would shell out $438 million to resolve claims that its fruity e-cigarette flavors hooked young people on tobacco.</p>

The personal injury settlements in the latest federal case will compensate people who suffer from nicotine addiction and related health problems, while the consumer class-action part of the case secured payouts for customers who bought <a href="https://sfstandard.com/search/?query=juul">Juul</a> products.

<p>The personal injury settlements in the latest federal case will compensate people who suffer from nicotine addiction and related health problems, while the consumer class-action part of the case secured payouts for customers who bought <a href="https://sfstandard.com/search/?query=juul">Juul</a> products.</p>

Government claims in the lawsuit carved out funding for school districts, cities and counties to fight youth nicotine addiction. And the tribal portion allocates similar payments for Native American communities.&nbsp;

<p>Government claims in the lawsuit carved out funding for school districts, cities and counties to fight youth nicotine addiction. And the tribal portion allocates similar payments for Native American communities.&nbsp;</p>

Juul <a href="https://www.juullabs.com/jli-litigation-resolution/" target="_blank" rel="noreferrer noopener">said</a> it lined up equity investments to pay for the deal.

<p>Juul <a href="https://www.juullabs.com/jli-litigation-resolution/" target="_blank" rel="noreferrer noopener">said</a> it lined up equity investments to pay for the deal.</p>

Though based in San Francisco, the company cannot sell many of its products in local stores because of a citywide ban on e-cigs and nicotine cartridges sparked by concerns over their appeal to minors.

<p>Though based in San Francisco, the company cannot sell many of its products in local stores because of a citywide ban on e-cigs and nicotine cartridges sparked by concerns over their appeal to minors.</p>

SF e-cigarette giant Juul settles 5K claims over teen vaping

Kevin Truong

The owners of San Francisco’s most iconic buildings are looking to cut their property assessments, a worrying sign of a <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/">potential collapse in property values</a> that could handcuff the city by eroding its number one source of tax revenue.&nbsp;

<p>The owners of San Francisco’s most iconic buildings are looking to cut their property assessments, a worrying sign of a <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/">potential collapse in property values</a> that could handcuff the city by eroding its number one source of tax revenue.&nbsp;</p>

Owners who believe their property assessments—and associated tax bills—are too high can appeal their case to San Francisco’s Assessment Appeal Board. That board determines whether a property should be revalued temporarily.&nbsp;

<p>Owners who believe their property assessments—and associated tax bills—are too high can appeal their case to San Francisco’s Assessment Appeal Board. That board determines whether a property should be revalued temporarily.&nbsp;</p>

While assessment appeals are common, there’s been <a href="https://sfstandard.com/business/property-tax-assessments-covid-remote-work/">a definite uptick</a> during the pandemic as companies dumped office space, businesses shuttered and tourists avoided the city. The 5,113 total appeals filed in 2020 and 2021 is nearly double the 2,666 filed in 2018 and 2019.

<p>While assessment appeals are common, there’s been <a href="https://sfstandard.com/business/property-tax-assessments-covid-remote-work/">a definite uptick</a> during the pandemic as companies dumped office space, businesses shuttered and tourists avoided the city. The 5,113 total appeals filed in 2020 and 2021 is nearly double the 2,666 filed in 2018 and 2019.</p>

The deadline to file for this year was Sept. 15, and officials expect to tabulate the full number of appeals by sometime in October. But the decisions on whether to reduce owners’ tax bills may be years away as the board works through a backlog of applications.&nbsp;

<p>The deadline to file for this year was Sept. 15, and officials expect to tabulate the full number of appeals by sometime in October. But the decisions on whether to reduce owners’ tax bills may be years away as the board works through a backlog of applications.&nbsp;</p>

Still, the appeals are a sign of what might lay ahead for the city’s fiscal situation. Here’s a rundown of landmark properties trying to cut their assessments for the 2022-23 fiscal year.

<p>Still, the appeals are a sign of what might lay ahead for the city’s fiscal situation. Here’s a rundown of landmark properties trying to cut their assessments for the 2022-23 fiscal year.</p>

<strong>Transamerica Pyramid Complex</strong>


<h2 class="wp-block-heading"><strong>Transamerica Pyramid Complex</strong></h2>


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<h2><strong>Transamerica Pyramid Complex</strong></h2>

The Transamerica Pyramid seen from Chinatown on December 28, 2021.  | Camille Cohen/The Standard


<figure class="wp-block-image size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED02-2500x1667.jpg" alt="" class="wp-image-76451"/><figcaption>The Transamerica Pyramid seen from Chinatown on December 28, 2021.  | Camille Cohen/The Standard</figcaption></figure>


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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED02-2500x1667.jpg" alt="" class="wp-image-76451"/><figcaption>The Transamerica Pyramid seen from Chinatown on December 28, 2021.  | Camille Cohen/The Standard</figcaption></figure>

Formerly the city’s tallest building, and still one of the most striking features of its skyline, the Transamerica Pyramid at 600 Montgomery St. and two adjacent buildings at 505 and 545 Sansome streets are worth less than they used to be, according to their owners. 

<p>Formerly the city’s tallest building, and still one of the most striking features of its skyline, the Transamerica Pyramid at 600 Montgomery St. and two adjacent buildings at 505 and 545 Sansome streets are worth less than they used to be, according to their owners. </p>

They’re seeking to reduce the complex’s assessed value by more than half, applying for a temporary reduction to $311.8 million from $653.8 million. The year prior, the property owners attempted to temporarily reduce the value of the property to $361.5 million. That appeal is currently pending a March 2023 hearing. The effort is a bit ironic: After acquiring the building in 2020 for $650 million, a group of investors led by New York developer Michael Shvo and Deutsche Finance kicked off a $400 million renovation.&nbsp;

<p>They’re seeking to reduce the complex’s assessed value by more than half, applying for a temporary reduction to $311.8 million from $653.8 million. The year prior, the property owners attempted to temporarily reduce the value of the property to $361.5 million. That appeal is currently pending a March 2023 hearing. The effort is a bit ironic: After acquiring the building in 2020 for $650 million, a group of investors led by New York developer Michael Shvo and Deutsche Finance kicked off a $400 million renovation.&nbsp;</p>

<strong>Westin St. Francis San Francisco&nbsp;</strong>


<h2 class="wp-block-heading"><strong>Westin St. Francis San Francisco&nbsp;</strong></h2>


<h2><strong>Westin St. Francis San Francisco&nbsp;</strong></h2>

The historic Westin St. Francis, which at 1,200 rooms ranks among the city’s largest hotels, is seeking to temporarily reduce the value of its two properties at 301 Powell St. and 455 Post St. by more than 90%, from an assessed value of $1.04 billion to $101 million.&nbsp;

<p>The historic Westin St. Francis, which at 1,200 rooms ranks among the city’s largest hotels, is seeking to temporarily reduce the value of its two properties at 301 Powell St. and 455 Post St. by more than 90%, from an assessed value of $1.04 billion to $101 million.&nbsp;</p>

This one may be a bit of a stretch: According to reporting from the San Francisco Business Times, which <a href="https://www.bizjournals.com/sanfrancisco/news/2022/09/16/westin-st-francis-sanfrancisco-property-tax-appeal.html">first reported on the hotel’s appeal</a>, the company’s own mortgage assessors valued the property at $760 million as of March 2022.&nbsp;&nbsp;

<p>This one may be a bit of a stretch: According to reporting from the San Francisco Business Times, which <a href="https://www.bizjournals.com/sanfrancisco/news/2022/09/16/westin-st-francis-sanfrancisco-property-tax-appeal.html">first reported on the hotel’s appeal</a>, the company’s own mortgage assessors valued the property at $760 million as of March 2022.&nbsp;&nbsp;</p>


<h2 class="wp-block-heading"><strong>Uber Mission Bay HQ</strong></h2>


<h2><strong>Uber Mission Bay HQ</strong></h2>

Logo is visible on facade at headquarters of ridesharing company Uber in Mission Bay, San Francisco, California, November 19, 2020. (Photo by Smith Collection/Gado/Getty Images)


<figure class="wp-block-image size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED01-2500x1667.jpg" alt="" class="wp-image-76448"/><figcaption>Logo is visible on facade at headquarters of ridesharing company Uber in Mission Bay, San Francisco, California, November 19, 2020. (Photo by Smith Collection/Gado/Getty Images)</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED01-2500x1667.jpg" alt="" class="wp-image-76448"/><figcaption>Logo is visible on facade at headquarters of ridesharing company Uber in Mission Bay, San Francisco, California, November 19, 2020. (Photo by Smith Collection/Gado/Getty Images)</figcaption></figure>

Uber’s four-building Mission Bay campus, a stone’s throw from Chase Center, was envisioned as another jewel of the area and <a href="https://www.fastcompany.com/90691243/the-stunning-facade-of-ubers-new-headquarters-is-an-architectural-revolution">lauded for its architectural innovation</a>.&nbsp;

<p>Uber’s four-building Mission Bay campus, a stone’s throw from Chase Center, was envisioned as another jewel of the area and <a href="https://www.fastcompany.com/90691243/the-stunning-facade-of-ubers-new-headquarters-is-an-architectural-revolution">lauded for its architectural innovation</a>.&nbsp;</p>

But the ride-hailing firm has begun to reevaluate its office space needs, <a href="https://www.bizjournals.com/sanfrancisco/news/2021/02/09/uber-is-marketing-huge-chunk-of-new-mission-bay-hq.html">reportedly seeking to unload</a> a large chunk of its space at the Mission bay complex. Uber owns a stake in the headquarters, along with Alexandria Real Estate Equities and the Golden State Warriors. The city assessed the entire complex, which spans 1455, 1509, 1566 and 1725 Third St., at around $1.27 billion. Its owners are seeking to temporarily cut the value of the complex to $625.5 million.

<p>But the ride-hailing firm has begun to reevaluate its office space needs, <a href="https://www.bizjournals.com/sanfrancisco/news/2021/02/09/uber-is-marketing-huge-chunk-of-new-mission-bay-hq.html">reportedly seeking to unload</a> a large chunk of its space at the Mission bay complex. Uber owns a stake in the headquarters, along with Alexandria Real Estate Equities and the Golden State Warriors. The city assessed the entire complex, which spans 1455, 1509, 1566 and 1725 Third St., at around $1.27 billion. Its owners are seeking to temporarily cut the value of the complex to $625.5 million.</p>

<strong>Macy’s Union Square&nbsp;</strong>


<h2 class="wp-block-heading"><strong>Macy’s Union Square&nbsp;</strong></h2>


<h2><strong>Macy’s Union Square&nbsp;</strong></h2>

The Macy's Union Square location totals roughly 700,000 square feet. It is not likely another retailer would want to occupy all of that space. 


<figure class="wp-block-image size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED03-2500x1667.jpg" alt="" class="wp-image-76454"/><figcaption>The Macy&#8217;s Union Square location in San Francisco on Feb. 19, 2022. | Camille Cohen/The Standard</figcaption></figure>


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED03-2500x1667.jpg" alt="" class="wp-image-76454"/><figcaption>The Macy's Union Square location in San Francisco on Feb. 19, 2022. | Camille Cohen/The Standard</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED03-2500x1667.jpg" alt="" class="wp-image-76454"/><figcaption>The Macy&#8217;s Union Square location in San Francisco on Feb. 19, 2022. | Camille Cohen/The Standard</figcaption></figure>

The building at 251 Geary St. houses the Macy’s flagship store, but the department store is looking to cut its value by half: The city currently assesses its value at $345.3 million, while Macy’s believes it’s worth $177.2 million.

<p>The building at 251 Geary St. houses the Macy’s flagship store, but the department store is looking to cut its value by half: The city currently assesses its value at $345.3 million, while Macy’s believes it’s worth $177.2 million.</p>

Macy’s previously owned and operated several buildings and locations across San Francisco, but has retrenched in recent years. In 2019, the company sold the nearby 233 Geary St. building, which houses Louis Vuitton, for a potential <a href="https://sfyimby.com/2021/07/new-renderings-revealed-for-233-geary-street-union-square-san-francisco.html">mixed-use redevelopment</a>. In 2020, the company <a href="https://www.bizjournals.com/sanfrancisco/news/2020/02/04/macys-to-close-san-francisco-tech-office-laying.html">closed its digital division</a> in San Francisco with plans to relocate operations to Atlanta and New York.&nbsp;

<p>Macy’s previously owned and operated several buildings and locations across San Francisco, but has retrenched in recent years. In 2019, the company sold the nearby 233 Geary St. building, which houses Louis Vuitton, for a potential <a href="https://sfyimby.com/2021/07/new-renderings-revealed-for-233-geary-street-union-square-san-francisco.html">mixed-use redevelopment</a>. In 2020, the company <a href="https://www.bizjournals.com/sanfrancisco/news/2020/02/04/macys-to-close-san-francisco-tech-office-laying.html">closed its digital division</a> in San Francisco with plans to relocate operations to Atlanta and New York.&nbsp;</p>


<h2 class="wp-block-heading"><strong>Market Center</strong></h2>


A Google Street View of Market Center at 555 Market Street (center left) and 575 Market Street in San Francisco (center right).


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/AssessmentAppeals0921922_INLINED04.jpg" alt="" class="wp-image-76457"/><figcaption>A Google Street View of Market Center at 555 Market Street (center left) and 575 Market Street in San Francisco (center right).</figcaption></figure>


The two-building Financial District complex at 555 and 575 Market St. served as the longtime headquarters of Chevron before the oil giant decamped to San Ramon. In 2019, public real estate company Paramount Group, Inc. purchased the complex for $722 million.&nbsp;

<p>The two-building Financial District complex at 555 and 575 Market St. served as the longtime headquarters of Chevron before the oil giant decamped to San Ramon. In 2019, public real estate company Paramount Group, Inc. purchased the complex for $722 million.&nbsp;</p>

In both 2020 and 2021, the property owner has sought to reduce the value of the complex to $565 million, even as the city has assessed the value of the property at $735.8 million and $744.1 million, respectively.

<p>In both 2020 and 2021, the property owner has sought to reduce the value of the complex to $565 million, even as the city has assessed the value of the property at $735.8 million and $744.1 million, respectively.</p>


<h2 class="wp-block-heading" id="h-123-mission"><strong>123 Mission&nbsp;</strong></h2>


<h2 id="h-123-mission"><strong>123 Mission&nbsp;</strong></h2>

The SoMa office tower, owned by e-cigarette company Juul, is currently less than 30% leased, according to data from CoStar. Juul purchased the building in 2019 for $397 million, prior to a regulatory crackdown that restricted e-cigarettes.&nbsp;

<p>The SoMa office tower, owned by e-cigarette company Juul, is currently less than 30% leased, according to data from CoStar. Juul purchased the building in 2019 for $397 million, prior to a regulatory crackdown that restricted e-cigarettes.&nbsp;</p>

Since then, the company has sought to offload the property in a number of aborted deals and has regularly asked the city to drop the assessed value of the property. For 2022, the company is seeking a 50% reduction to $204.5 million, compared to a $408.9 million assessment by the city.&nbsp;

<p>Since then, the company has sought to offload the property in a number of aborted deals and has regularly asked the city to drop the assessed value of the property. For 2022, the company is seeking a 50% reduction to $204.5 million, compared to a $408.9 million assessment by the city.&nbsp;</p>

The owners of iconic SF buildings are looking to slash their property values

Anna Tong

A very Californian experience is to go about one’s business at the grocery store only to be intruded on in the parking lot by a chirpy, clipboard-wielding person saying, “Hi! How do you feel about…”&nbsp;

<p>A very Californian experience is to go about one’s business at the grocery store only to be intruded on in the parking lot by a chirpy, clipboard-wielding person saying, “Hi! How do you feel about…”&nbsp;</p>

This is the business of petition circulating, and it’s a big moneymaker.

<p>This is the business of petition circulating, and it’s a big moneymaker.</p>

San Francisco and California’s direct democracy structure allows nearly anybody to put initiatives and recalls on the ballot, leading to a second very Californian experience: staring at an absurdly long ballot, wondering what in the world one is voting on.

<p>San Francisco and California’s direct democracy structure allows nearly anybody to put initiatives and recalls on the ballot, leading to a second very Californian experience: staring at an absurdly long ballot, wondering what in the world one is voting on.</p>

This year’s two San Francisco recalls have many parallels: national attention, controversial politicians and passionate volunteers. But one thing they differ on is the amount of money it took to get the recalls on the ballot: half a million dollars for the school board recall vs. almost $1 million for the DA recall, according to <a href="https://sfethics.org/disclosures/campaign-finance-disclosure/campaign-finance-disclosure-november-3-2015-election-dashboards">campaign finance data</a>.

<p>This year’s two San Francisco recalls have many parallels: national attention, controversial politicians and passionate volunteers. But one thing they differ on is the amount of money it took to get the recalls on the ballot: half a million dollars for the school board recall vs. almost $1 million for the DA recall, according to <a href="https://sfethics.org/disclosures/campaign-finance-disclosure/campaign-finance-disclosure-november-3-2015-election-dashboards">campaign finance data</a>.</p>

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At nearly $12 per submitted signature, the Boudin recall on June’s ballot has the highest per-signature costs in recent San Francisco history. It’s about 70% more expensive than the school board recall’s cost-per-signature (this is if you count all three school board recalls together as one signature. If you count each school board member separately, as is technically correct, the DA recall would be over five times the cost per signature).

<p>At nearly $12 per submitted signature, the Boudin recall on June’s ballot has the highest per-signature costs in recent San Francisco history. It’s about 70% more expensive than the school board recall’s cost-per-signature (this is if you count all three school board recalls together as one signature. If you count each school board member separately, as is technically correct, the DA recall would be over five times the cost per signature). </p>

The per-signature cost also eclipsed the Juul-sponsored vaping ballot measure from November 2019, formerly the most expensive per-signature ballot initiative in recent SF history, according to campaign finance data.

<p>The per-signature cost also eclipsed the Juul-sponsored vaping ballot measure from November 2019, formerly the most expensive per-signature ballot initiative in recent SF history, according to campaign finance data.</p>

The successful Boudin recall initiative had about 25% volunteer-collected signatures, according to recall spokesperson Lilly Rapson. The rest of the effort was outsourced to 2020 Ballcamp, a petition signing powerhouse.

<p>The successful Boudin recall initiative had about 25% volunteer-collected signatures, according to recall spokesperson Lilly Rapson. The rest of the effort was outsourced to 2020 Ballcamp, a petition signing powerhouse.</p>

That&#8217;s in contrast to the school board recall, who ran the paid signature gathering operation themselves, hiring “freelancers and then small signature gathering firms” to keep costs low, said Siva Raj, one of the recall leaders. They also had volunteers who gathered 40% of the signatures, including Man Kit Lam, who <a href="https://twitter.com/annatonger/status/1494008413516222464/photo/1">personally gathered over 12,000 signatures</a>.

<p>That's in contrast to the school board recall, who ran the paid signature gathering operation themselves, hiring “freelancers and then small signature gathering firms” to keep costs low, said Siva Raj, one of the recall leaders. They also had volunteers who gathered 40% of the signatures, including Man Kit Lam, who <a href="https://twitter.com/annatonger/status/1494008413516222464/photo/1">personally gathered over 12,000 signatures</a>.</p>

<p>That&#8217;s in contrast to the school board recall, who ran the paid signature gathering operation themselves, hiring “freelancers and then small signature gathering firms” to keep costs low, said Siva Raj, one of the recall leaders. They also had volunteers who gathered 40% of the signatures, including Man Kit Lam, who <a href="https://twitter.com/annatonger/status/1494008413516222464/photo/1">personally gathered over 12,000 signatures</a>.</p>

The vast majority of ballot initiatives rely on farming out the signature gathering process to a company similar to 2020 Ballcamp, said Nick Warshaw, a campaign finance expert at Loeb &amp; Loeb. &#8220;It’s really rare to do what the school board recall did,&#8221; he said. &#8220;It is a surprisingly complex process and you have to stick to certain formats and rules.&#8221;

<p>The vast majority of ballot initiatives rely on farming out the signature gathering process to a company similar to 2020 Ballcamp, said Nick Warshaw, a campaign finance expert at Loeb &amp; Loeb. "It’s really rare to do what the school board recall did," he said. "It is a surprisingly complex process and you have to stick to certain formats and rules."</p>

<p>The vast majority of ballot initiatives rely on farming out the signature gathering process to a company similar to 2020 Ballcamp, said Nick Warshaw, a campaign finance expert at Loeb &amp; Loeb. &#8220;It’s really rare to do what the school board recall did,&#8221; he said. &#8220;It is a surprisingly complex process and you have to stick to certain formats and rules.&#8221;</p>

If the Chesa recall committee had wanted to bring down signature-gathering costs, they likely could have, said longtime local political analyst David Latterman.

<p>If the Chesa recall committee had wanted to bring down signature-gathering costs, they likely could have, said longtime local political analyst David Latterman. </p>

People protesting for the recall of Chesa Boudin rally outside a press conference in Potrero Hill on Nov. 23, 2021. | Camille Cohen


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/04/recallchesa.jpg" alt="" class="wp-image-46752"/><figcaption>People protesting for the recall of D.A. Chesa Boudin rally outside a press conference in Potrero Hill on Nov. 23, 2021. | Camille Cohen</figcaption></figure>


“It’s possible the signature-gathering company knew [the recall Chesa committee] had a ton of money, and they jacked up the price,” Latterman said.

<p>“It’s possible the signature-gathering company knew [the recall Chesa committee] had a ton of money, and they jacked up the price,” Latterman said.</p>

Even more, given the current focus on crime, obtaining signatures for a crime-related initiative should have been a slam dunk, said Latterman.

<p>Even more, given the current focus on crime, obtaining signatures for a crime-related initiative should have been a slam dunk, said Latterman.</p>

Indeed, <a href="https://www.salary.com/job/ski-marketing-llc/signature-gatherer/j202203141518325431537?utm_campaign=google_jobs_apply&amp;utm_source=google_jobs_apply&amp;utm_medium=organic">a job posting online</a> is paying $8 per signature for a ballot initiative to allow sports wagering, but only $3 per signature for an initiative to recall George Gascon, Los Angeles’ progressive district attorney who is facing a similar recall attempt.

<p>Indeed, <a href="https://www.salary.com/job/ski-marketing-llc/signature-gatherer/j202203141518325431537?utm_campaign=google_jobs_apply&amp;utm_source=google_jobs_apply&amp;utm_medium=organic">a job posting online</a> is paying $8 per signature for a ballot initiative to allow sports wagering, but only $3 per signature for an initiative to recall George Gascon, Los Angeles’ progressive district attorney who is facing a similar recall attempt.</p>

2020 Ballcamp did not return multiple requests for comment.

<p>2020 Ballcamp did not return multiple requests for comment.</p>

Richie Greenberg, who ran a competing, low budget signature initiative that failed to qualify for the ballot, was able to get 49,611 signatures at $3.37 per signature. Greenberg attributed the low cost to not having paid signature gatherers, only a volunteer staff of 26 that relied on sending snail mail and engaging in online marketing, in addition to in-person signature signing at farmer&#8217;s markets.

<p>Richie Greenberg, who ran a competing, low budget signature initiative that failed to qualify for the ballot, was able to get 49,611 signatures at $3.37 per signature. Greenberg attributed the low cost to not having paid signature gatherers, only a volunteer staff of 26 that relied on sending snail mail and engaging in online marketing, in addition to in-person signature signing at farmer's markets.</p>

<p>Richie Greenberg, who ran a competing, low budget signature initiative that failed to qualify for the ballot, was able to get 49,611 signatures at $3.37 per signature. Greenberg attributed the low cost to not having paid signature gatherers, only a volunteer staff of 26 that relied on sending snail mail and engaging in online marketing, in addition to in-person signature signing at farmer&#8217;s markets.</p>

Outsourced signature-gathering companies like 2020 Ballcamp have different tactics: instead of using passionate volunteers to educate and find the voters who will care, they will rely on on-demand workers and tried-and-true tactics to get people to sign petitions as quickly as possible. One <a href="http://californiapetitions.com/tips/">website online</a> for professional signature gatherers advises petitioners never to answer more than two questions about a petition because those people “never sign petitions” and to “cut off anybody who wants to chat” to be efficient.

<p>Outsourced signature-gathering companies like 2020 Ballcamp have different tactics: instead of using passionate volunteers to educate and find the voters who will care, they will rely on on-demand workers and tried-and-true tactics to get people to sign petitions as quickly as possible. One <a href="http://californiapetitions.com/tips/">website online</a> for professional signature gatherers advises petitioners never to answer more than two questions about a petition because those people “never sign petitions” and to “cut off anybody who wants to chat” to be efficient.</p>

And with the clock ticking on submitting thousands of signatures, the pay-to-play method is worth it for those who have the money, Latterman said.

<p>And with the clock ticking on submitting thousands of signatures, the pay-to-play method is worth it for those who have the money, Latterman said.</p>

“It’s what happens when a guy hands you a million dollars, and you don’t want to have to worry about it,” he said.

<p>“It’s what happens when a guy hands you a million dollars, and you don’t want to have to worry about it,” he said.</p>

Chesa Boudin recall campaign featured exceptionally high costs for signature-gathering

Imagine a slow-moving train coming towards you. The lights are shining, the horn is blaring, but it’s just far enough in the distance that the risk doesn’t seem real just yet.&nbsp;

<p>Imagine a slow-moving train coming towards you. The lights are shining, the horn is blaring, but it’s just far enough in the distance that the risk doesn’t seem real just yet.&nbsp;</p>

That’s a fitting-enough analogy for the state of San Francisco&#8217;s commercial real estate market, which is tilting towards a collapse in property values, leaving the city, its budget and its ability to provide services tied to the tracks.&nbsp;

<p>That’s a fitting-enough analogy for the state of San Francisco's commercial real estate market, which is tilting towards a collapse in property values, leaving the city, its budget and its ability to provide services tied to the tracks.&nbsp;</p>

<p>That’s a fitting-enough analogy for the state of San Francisco&#8217;s commercial real estate market, which is tilting towards a collapse in property values, leaving the city, its budget and its ability to provide services tied to the tracks.&nbsp;</p>

The root of this—of course—is the pandemic and the way that it has completely transformed work patterns in the city, hollowing out a downtown core that once accounted for most of San Francisco’s GDP, 70% of its sales tax revenue and 40% of the city’s jobs. And there’s an uneasy feeling among a coalition of business groups that city leaders are sleepwalking into an economic calamity with far-reaching consequences.

<p>The root of this—of course—is the pandemic and the way that it has completely transformed work patterns in the city, hollowing out a downtown core that once accounted for most of San Francisco’s GDP, 70% of its sales tax revenue and 40% of the city’s jobs. And there’s an uneasy feeling among a coalition of business groups that city leaders are sleepwalking into an economic calamity with far-reaching consequences. </p>

Signal lights of the city’s tenuous fiscal future are starting to flash. Major tech employers like Yelp and Airbnb have <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">fled</a> or gone fully remote, leading to mass office vacancies. A swath <a href="https://www.bizjournals.com/sanfrancisco/news/2022/08/26/san-francisco-assessment-appeals-board.html">of commercial landlords</a> are seeking massive reductions in their assessed property values—and associated tax bills. And a recent report from the Urban Displacement Project <a href="https://www.downtownrecovery.com/dashboards/recovery_ranking.html">ranked the city’s downtown recovery</a> as dead last among more than 60 cities across North America.&nbsp;

<p>Signal lights of the city’s tenuous fiscal future are starting to flash. Major tech employers like Yelp and Airbnb have <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">fled</a> or gone fully remote, leading to mass office vacancies. A swath <a href="https://www.bizjournals.com/sanfrancisco/news/2022/08/26/san-francisco-assessment-appeals-board.html">of commercial landlords</a> are seeking massive reductions in their assessed property values—and associated tax bills. And a recent report from the Urban Displacement Project <a href="https://www.downtownrecovery.com/dashboards/recovery_ranking.html">ranked the city’s downtown recovery</a> as dead last among more than 60 cities across North America.&nbsp;</p>

<strong>‘Uncharted Territory’</strong>


<h2 class="wp-block-heading"><strong>‘Uncharted Territory’</strong></h2>


It’s no secret that office vacancies are high in SF’s downtown. But even as the pandemic wanes, an already-troubling outlook for downtown could only get worse.&nbsp;

<p>It’s no secret that office vacancies are high in SF’s downtown. But even as the pandemic wanes, an already-troubling outlook for downtown could only get worse.&nbsp;</p>

That’s because a slew of office leases signed at the height of the city’s economic boom are poised to expire over the next few years, further inflating vacancies and diminishing what the office towers that draw the city’s skyline are worth. There’s currently more than 25 million square feet of commercial space available for lease or sublease in the city, the equivalent of about 35 Transamerica Pyramids sitting empty.&nbsp;

<p>That’s because a slew of office leases signed at the height of the city’s economic boom are poised to expire over the next few years, further inflating vacancies and diminishing what the office towers that draw the city’s skyline are worth. There’s currently more than 25 million square feet of commercial space available for lease or sublease in the city, the equivalent of about 35 Transamerica Pyramids sitting empty.&nbsp;</p>

Empty desks in the SD Mayer Accounting firm office in San Francisco, Calif., on Friday, July 29, 2022. | Juliana Yamada/The Standard


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/09/CommercialPropertyTax-INLINE2.jpg" alt="" class="wp-image-73298"/><figcaption class="wp-element-caption">Empty desks in the SD Mayer Accounting firm office on July 29, 2022. | Juliana Yamada/The Standard</figcaption></figure>


“We’re way above anything that was happening in the Great Recession and dot-com era days,” said Jay Shaffer, a co-founder and principal at Colton Commercial &amp; Partners. “We have this shadow market of sublease availability in seemingly uncharted territories. And sublease inventory is still rising.”&nbsp;

<p>“We’re way above anything that was happening in the Great Recession and dot-com era days,” said Jay Shaffer, a co-founder and principal at Colton Commercial &amp; Partners. “We have this shadow market of sublease availability in seemingly uncharted territories. And sublease inventory is still rising.”&nbsp;</p>

Citing data from real estate firm JLL, SF’s chief economist Ted Egan <a href="https://sfcontroller.org/sites/default/files/Documents/Economic%20Analysis/economic_context_for_development.pdf">tagged future vacancies</a>, in a worst case scenario, as high as 53% in the Jackson Square area and 43% in the mid-Market area in 2024 as the clock runs out on office leases.

<p>Citing data from real estate firm JLL, SF’s chief economist Ted Egan <a href="https://sfcontroller.org/sites/default/files/Documents/Economic%20Analysis/economic_context_for_development.pdf">tagged future vacancies</a>, in a worst case scenario, as high as 53% in the Jackson Square area and 43% in the mid-Market area in 2024 as the clock runs out on office leases.</p>

The current vacancy epidemic cuts across buildings of all sizes and price ranges in San Francisco’s downtown core, from the struggling mid-Market area to the sparkling office towers of the East Cut.&nbsp;

<p>The current vacancy epidemic cuts across buildings of all sizes and price ranges in San Francisco’s downtown core, from the struggling mid-Market area to the sparkling office towers of the East Cut.&nbsp;</p>

For example, 415 Natoma, a 653,900 sq foot office tower owned by Brookfield Properties that was the sole ground-up office project to deliver in San Francisco in 2021, currently has just one announced lease: 20,000 square feet taken by “remote-first” startup Thumbtack. Nearby office towers 123 Mission (Juul Labs, Inc.), 50 Fremont (Salesforce.com, Inc.) and 199 Fremont (CalSTRS) were each at least 30% vacant, according to CoStar data, along with a constellation of other big office buildings.&nbsp;&nbsp;

<p>For example, 415 Natoma, a 653,900 sq foot office tower owned by Brookfield Properties that was the sole ground-up office project to deliver in San Francisco in 2021, currently has just one announced lease: 20,000 square feet taken by “remote-first” startup Thumbtack. Nearby office towers 123 Mission (Juul Labs, Inc.), 50 Fremont (Salesforce.com, Inc.) and 199 Fremont (CalSTRS) were each at least 30% vacant, according to CoStar data, along with a constellation of other big office buildings.&nbsp;&nbsp;</p>

A few large buildings, like 550 California St. and 455 Market St, were <a href="https://www.sfchronicle.com/sf/article/real-estate-san-francisco-17414133.php">placed on the market</a> in recent months at deep discounts to what they would have fetched before the pandemic, but were eventually pulled when offers came in that were even lower than those already-discounted prices.

<p>A few large buildings, like 550 California St. and 455 Market St, were <a href="https://www.sfchronicle.com/sf/article/real-estate-san-francisco-17414133.php">placed on the market</a> in recent months at deep discounts to what they would have fetched before the pandemic, but were eventually pulled when offers came in that were even lower than those already-discounted prices.  </p>

In the case of 550 California St., a downtown office tower owned by Wells Fargo, bids came in at 60% to 70% under what the building would have sold for in 2019, real estate brokers said.&nbsp;

<p>In the case of 550 California St., a downtown office tower owned by Wells Fargo, bids came in at 60% to 70% under what the building would have sold for in 2019, real estate brokers said.&nbsp;</p>


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/image-6.jpeg" alt="" class="wp-image-190264"/><figcaption class="wp-element-caption">Screenshot</figcaption></figure>



<h2 class="wp-block-heading"><strong>Zombie Buildings&nbsp;</strong></h2>


The risk of a San Francisco real estate collapse is palpable enough that it’s caught the attention of at least one Wall Street hedge fund—and not in a good way.&nbsp;

<p>The risk of a San Francisco real estate collapse is palpable enough that it’s caught the attention of at least one Wall Street hedge fund—and not in a good way.&nbsp;</p>

Dan McNamara, founder of New York hedge fund Polpo Capital, became known for the lucrative short bets he made against regional malls run into the ground by e-commerce and Amazon.&nbsp;

<p>Dan McNamara, founder of New York hedge fund Polpo Capital, became known for the lucrative short bets he made against regional malls run into the ground by e-commerce and Amazon.&nbsp;</p>

Now, McNamara is eyeing the commercial office market for another short bet, and San Francisco is near the top of his list. McNamara started his firm last year to take advantage of what he considers to be mispricings in the commercial mortgage-backed securities (CMBS) market.

<p>Now, McNamara is eyeing the commercial office market for another short bet, and San Francisco is near the top of his list. McNamara started his firm last year to take advantage of what he considers to be mispricings in the commercial mortgage-backed securities (CMBS) market.</p>

“We thought there was a unique opportunity to take advantage of the impending distress within the commercial real estate market,” McNamara said. “San Francisco has been an amazing example of this; we’ve had all these tech companies that have been driving office space usage for the past 20 years. But we believe that’s changed forever.”

<p>“We thought there was a unique opportunity to take advantage of the impending distress within the commercial real estate market,” McNamara said. “San Francisco has been an amazing example of this; we’ve had all these tech companies that have been driving office space usage for the past 20 years. But we believe that’s changed forever.”</p>

A<a href="https://itep.sfo2.digitaloceanspaces.com/20211101_PropertyTaxReport.pdf"> report published in November</a> by the Institute of Taxation and Economic Policy (ITEP) calculated that San Francisco could see a short-term decline in commercial property values of up to 43%, the highest projected in the study.

<p>A<a href="https://itep.sfo2.digitaloceanspaces.com/20211101_PropertyTaxReport.pdf"> report published in November</a> by the Institute of Taxation and Economic Policy (ITEP) calculated that San Francisco could see a short-term decline in commercial property values of up to 43%, the highest projected in the study.</p>

The logic is obvious: San Francisco’s software-dominant economy pivoted easily away from offices during the pandemic, and has <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">little incentive to return.&nbsp;</a>

<p>The logic is obvious: San Francisco’s software-dominant economy pivoted easily away from offices during the pandemic, and has <a href="https://sfstandard.com/business/san-francisco-tax-code-encourages-work-from-home/">little incentive to return.&nbsp;</a></p>

In some ways, the city is a victim of its own success by creating an economic model so heavily dependent on tech in the aftermath of the Great Recession, said Wade Rose, president of the business advocacy group Advance SF.

<p>In some ways, the city is a victim of its own success by creating an economic model so heavily dependent on tech in the aftermath of the Great Recession, said Wade Rose, president of the business advocacy group Advance SF.</p>

“We initiated the growth of an economic sector that could pivot on a dime,” Rose said. “So they closed down fast and exposed this vulnerability.”

<p>“We initiated the growth of an economic sector that could pivot on a dime,” Rose said. “So they closed down fast and exposed this vulnerability.”</p>

Lenders have taken a dim view of the office market and that’s doubly true for slow-to-recover San Francisco, leaving fewer options for refinancing.&nbsp;

<p>Lenders have taken a dim view of the office market and that’s doubly true for slow-to-recover San Francisco, leaving fewer options for refinancing.&nbsp;</p>

“It&#8217;s frozen,” McNamara said of current market conditions. “I do believe San Francisco is the most challenging office market today partly due to the fact they became oversupplied very quickly when the model changed to hybrid.”

<p>“It's frozen,” McNamara said of current market conditions. “I do believe San Francisco is the most challenging office market today partly due to the fact they became oversupplied very quickly when the model changed to hybrid.”</p>

<p>“It&#8217;s frozen,” McNamara said of current market conditions. “I do believe San Francisco is the most challenging office market today partly due to the fact they became oversupplied very quickly when the model changed to hybrid.”</p>

The properties most at risk are mid- to lower-tier buildings purchased near the peak of the market. Commercial real estate insiders say that those property owners are negotiating with lenders to avoid foreclosure, but that it may be sooner rather than later before the dam starts to break.

<p>The properties most at risk are mid- to lower-tier buildings purchased near the peak of the market. Commercial real estate insiders say that those property owners are negotiating with lenders to avoid foreclosure, but that it may be sooner rather than later before the dam starts to break.</p>

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