Why these San Francisco companies aren’t giving up on troubled FiDi

There have been so many reports of deserted downtown San Francisco lately that I almost expected, on my way to Heartwood, a cocktail bar created by the team behind the Treasury and the Beehive, that opened on Commercial Street last week, kicking tumbleweeds.

The streets are undeniably quieter now that around 150,000 workers have left the neighborhood, but in Heartwood it could have been happy hour on the second night of the service around 2019. Almost every table was packed with colleagues sharing bar snacks and sipping craft cocktails amidst exposed brick and murals depicting California poppies and trees, nodding to the neighborhood’s history.

The bar’s name refers to the innermost part of the tree trunk, which produces the toughest wood, and alludes to neighboring Transamerica Redwood Park, which is still closed for renovations. It could also be read as an indication of the core value required to open a new bar in America’s “emptiest inner city” amid a tenuous recovery from the pandemic, mass layoffs and warnings things could be getting worse.

Pedestrians cross Battery Street in San Francisco’s Financial District on April 25, 2023.

Douglas Zimmerman/SFGATE

But managing partner and operations manager Tristen Philippart de Foy reminds me that it’s spring, even if it’s been a long time coming this year.

“It’s fair to be critical. Yes, we were in a recession and it was a long winter. But whoever is here sees that we are at the beginning of an upswing,” he said.

Hope for downtown San Francisco

Heartwood isn’t the only company moving into the neighborhood. According to Robbie Silver, executive director of the nonprofit Community Benefit District Downtown SF Partnership (DSFP), 14 businesses in the hospitality and retail sectors have opened in the Financial District since 2021. The San Francisco Business Times reports that other hospitality giants such as Wayfare Tavern and House of An are on the horizon. And real estate investor Michael Shvo, who bought the Transamerica Pyramid in 2020, is investing $400 million to redesign the building and surrounding blocks. That’s a big bet for an inner city deemed dead.

Although the Heartwood team has toured many rooms across the city, they landed at the FiDi location in part because of the promising recovery that the Treasury, just a short walk away, has seen over the past year.

Heartwood CEO Tristen Philippart de Foy at his restaurant in San Francisco’s Financial District on April 25, 2023.

Douglas Zimmerman/SFGATE

“There was a revival and we’re miles ahead of that a year ago,” Philippart de Foy said. “There are smaller windows in which we’re employed, but those windows are promising.” The same can be said for the acquisitions of companies for conventions, which he says are even stronger than 2019, and the hybrid working models, the lunch and happy hour for Bring employees back at least a few days a week.

Of course, trying to get a business up and running with far fewer hours and customers is unsustainable. And, as the area has learned the hard way, it doesn’t rely on workers in any industry to keep businesses afloat, either.

For this reason, DSFP, Philippart de Foy and many other business owners are working on a public sector action plan aimed at reinventing FiDi as a cultural destination.

Customers enter Heartwood in San Francisco’s Financial District on April 25, 2023.

Douglas Zimmerman/SFGATE

A pilot of the program, funded by the city and provided by DSFP and Sitelab, an urban design studio, is slated to launch this summer right outside Heartwood’s doors at the intersection of Leidesdorff and Commercial Streets.

Bring pedestrians back to FiDi

In front of Heartwood, Philippart de Foy leads me around the block as if it were an extension of his bar. Where there are a few parked cars and a boarded-up storefront with someone camping at the entrance, he sees potential and paints a picture of a busy pedestrian street that you would find in most European cities. The projects promise murals and historical plaques here, a coffee cart there, health clubs to lure workers out of their offices, and cultural activities to lure families and visitors.

“The construction of these inner city hotspots of culture will be a crucial part of the recovery,” said Philippart de Foy.

Light displays will be projected onto the Pacific Coast Stock Exchange building as part of the “Let’s Glow SF” art installation on Tuesday, December 8, 2022 in San Francisco.

Charles Russo/SFGATE

There is already evidence that activities like this work in the neighborhood. In December, DSFP hosted Let’s Glow SF, a 10-day holiday celebration where 51,000 visitors and residents saw light shows projected onto four downtown buildings. According to Silver, most of the participants were families, and the project raised $3 million for the region and its businesses.

In addition to cultural activities, DSFP recently launched its first micro-grant program to provide up to $40,000 in funding to eligible restaurants to improve their sidewalk and curbside dining areas.

Peter Quartaroli, owner of the 150-year-old Sam’s Grill and DSFP board member, says beautifying downtown streets is an important part. “If we can make the curb in front of our store, in front of our neighbor’s store, a little better, it’s going to make a big difference,” he said.

Customers exit Sam’s Grill in San Francisco’s Financial District on April 25, 2023.

Douglas Zimmerman/SFGATE

Grants like those from DSFP, along with Mayor London Breed’s recently announced plan to change the city’s tax structure to make it easier for businesses, aren’t the only signs of imminent change some businesses are optimistic about the city centre make.

Philippart de Foy said landlords are starting to work with business owners on unconventional deals to weather the slow recovery and inspire long-term leases, such as: B. Profit-sharing, where rents are based on the success of the company.

A “For Rent” sign hangs in a window in San Francisco’s Financial District on April 25, 2023.

Douglas Zimmerman/SFGATE

Mason Harrison, a representative of the Transamerica Pyramid, said there is promising leasing activity among creative agencies and design firms in the area. Silver hopes that bringing nightlife to the area will also help diversify the neighborhood’s economic core, noting that incubator programs could allow artists to establish a more permanent presence in the area, which would help Changing perceptions of what the neighborhood has to offer.

The road to recovery

San Francisco’s recovery from the pandemic is slowing compared to other cities, but the Bay Area still ranks among the top 10 fastest-growing metro areas in the United States, according to a study by LinkedIn. And although tourism spending in the city is about 77% of 2019 levels, according to the San Francisco Chronicle, it more than doubled in 2022, giving some hope that a full recovery is now on the horizon. (The Chronicle and SFGATE are both owned by Hearst but have separate editorial offices.)

There is still a long way to go. Heartwood’s closest neighbors are still a boarded-up storefront and construction zones. But in the bar, the focus on natural elements, from the exposed original wooden beams to the tiny pine cone adorning my cocktail, is more than just a gimmick. It’s a reminder that spring always returns.

Customers have lunch at Heartwood in San Francisco’s Financial District on April 25, 2023.

Douglas Zimmerman/SFGATE

A less tangible, but perhaps even stronger, element fuels business owners’ hope for downtown. And that’s the spirit of San Francisco itself.