Exclusive: Powell Street's makeover is moving forward. Here's who's paying for it

The redesign of the three-block stretch of Powell Street between the cable car turnaround and Union Square always came with a caveat that the project's $40 million cost would be partially funded by sources outside the city of San Francisco. Now we know who's supplementing the cost of this makeover in the heart of the city.

A group of investors that includes former First Republic Bank executive Katherine August-deWilde and her husband, entrepreneur and local real estate investor David deWilde, has committed $14.5 million to the project. The Downtown Development Corp., which has been supporting fundraising efforts for the project, said construction could begin later this year and be completed next year.

The investor group also includes a number of real estate and hotel heavyweights that control several key properties along and around Powell Street. They include Karin Flood, whose family has owned the Flood Building at the cable car turnaround since it was built more than a century ago, and a growing portfolio of recently assembled storefronts by Uris Acquisitions, which is led by highly connected crypto advocate Max Raskin. The Hilton San Francisco Union Square, Parc 55 and Stratford hotels, which are located along the corridor, have also provided financial backing to the project, as have the Varlow and Keil families, which have real estate holdings across downtown.

The people-first street concept for Powell, led by Field Operations, the urban design firm responsible for giving San Francisco the Presidio Tunnel Tops park, and Sitelab Urban Studio, would transform Powell between Market and Geary streets near Union Square by replacing the area's familiar metallic parklets with wider sidewalks, expanded outdoor dining areas and, eventually, new trees, seating and lighting. The city's Board of Supervisors was expected to vote Tuesday to authorize San Francisco Public Works, which is acting as the project manager, to accept the funding in the form of a grant.

"This transformational investment will enhance one of the city's most important corridors and restore Powell Street as a vibrant gateway to Union Square," Flood said.

Earlier this year, the public works department entered into a $5 million contract with Field Operations for the project's design and hired Clark Construction Group for preconstruction services. The entire project is estimated to cost about $40.2 million, a majority of which would be covered using city bond programs.

The goal is to create a more inviting pedestrian promenade around the cable car tracks that run past Union Square and have long made Powell Street one of the city's most recognizable tourist destinations.

The project's signature feature is a large starburst chandelier suspended above the street near the cable car turnaround at Powell and Market streets, designed to frame views of passing cable cars. The LED light installation would be accompanied by a series of art nouveau-inspired lanterns intended to give the corridor a distinct identity and strengthen its connection to Union Square.

"The Powell Street corridor with the cable car turnaround has historically served as the premier gateway to Union Square," said August-deWilde, who is now the president and CEO of Partnership for San Francisco, a nonprofit coalition of major business and civic leaders founded after the pandemic to help address the city's biggest challenges and support its economic recovery. "This extraordinary renovation will transform the area, creating a lively, safe and welcoming environment that will draw people into our downtown to experience all that San Francisco has to offer."

The Downtown Development Corp, formed last year by the city's philanthropy and business elite, has been vocal about its mission: "We are a purpose-built nonprofit organization that is focused solely on driving the recovery downtown," said Shola Olatoye, the group's CEO.

The organization works in concert with Mayor Daniel Lurie's administration, which last year declared the stretch of downtown from Union Square to the Moscone Convention Center as the city's "hospitality zone" and created a police department task force to focus on public safety issues in the area.

According to the mayor, the public-private partnership is working as intended: "Support from the DDC and our partners in the business community is helping us power our comeback."

Powell Street below and above Union Square was once home to large stores like H&M, the Gap and Saks Fifth Avenue. But since the start of the pandemic, those spaces and others have sat vacant.

Olatoye said that the Downtown Development Corp. is in conversation with both "national and global chains" interested in opening locations in San Francisco, and that projects like Powell Street's remake represent the kind of "momentum investors want to see." She said that the street draws more than 28,000 visitors daily and that foot traffic is up nearly 20% year over year.

In April, the nonprofit launched a dedicated Downtown Business Fund, which is expected to channel $25 million to small businesses seeking to open in the area.

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This story was originally published June 2, 2026 at 10:35 AM.