The largest Bloomingdale's department store outside of New York City is coming to San Francisco thanks to a $27 million loan from the city to the developer. In approving the 1.6-million-square-foot redevelopment project, the San Francisco Board of Supervisors also backed an agreement that requires all retailers in the project except Bloomingdale's not to block labor union organizing. The five-story, 375,000-square-foot Bloomingdale's will anchor the retail, hotel and office project in San Francisco's Yerba Buena district. The project offers the city a number of benefits, according to Bill Carney, the San Francisco Redevelopment Agency's senior project manager for the Yerba Buena Center project area. It will restore the façade of the historic Emporium department store building, which has been mostly vacant since 1996. It will provide 2,300 permanent jobs, and generate $14 million a year in sales, transient occupancy and property taxes for the city, he said. The developer, Forest City Enterprises of Cleveland, will pay $3.5 million in fees for transit improvements, child care facilities, and parking and traffic mitigations. And, after a certain period, 40% of the project's tax increment will go toward affordable housing, twice the state-mandated amount. "It removes what has been for the last half decade a blighting influence on Market Street and Mission Street," Carney said. "It will provide significantly more economic activity than has historically occurred there." The project also provides an important connection between the Moscone Convention Center, which is undergoing an expansion within the 87-acre redevelopment project area, and the nearby downtown district and Union Square retail area, Carney said. David Jones, Forest City project manager, echoed that theme in a prepared statement. "It's a vital piece of a grand puzzle linking two of the city's most popular destinations," he said. City officials agreed to lend Forest City 60% of the tax increment for the first 16 years, or a minimum of $27 million. Forest City must repay the money with interest and the city should be made whole in 33 years, according to officials. The city also deeded to Forest City an alley and amended zoning to allow larger buildings than previously permitted. Although Mayor Willie Brown has pushed the development for years as a cornerstone of downtown, the project itself has been overshadowed of late. Labor organizers demanded the Board of Supervisors not approve the project unless Forest City ensured union organizing rights. Eventually, supervisors approved an accord in which employers within the project with at least 50 workers will be prohibited from interfering with union organizing. The agreement, however, does not cover Bloomingdale's. Also diverting attention is the nearby Mission Bay redevelopment project, for which there was a groundbreaking ceremony on October 23. The mixed-use project on a former rail yard next to the Giants' new baseball stadium entails 6,000 housing units (mostly in 16-story towers), a new University of California San Francisco campus, 5.5 million square feet of office space, a 500-room hotel, and 47 acres of open space and parks. The Mission Bay project, which city officials call the largest waterfront development in the country, is projected eventually to provide 42,000 new jobs and $600 million in revenue. Still, few people seem to doubt the importance of the Bloomingdale's project, partly because it will clean up a few blocks that were not inviting, even when Emporium was open. "I've been troubled by this project, but I've been troubled for years that this building has been standing vacant," Supervisor Sue Bierman told the San Francisco Chronicle. She questioned the height of the buildings but added, "I think on the whole it's better than having this site stay in this deteriorating condition." The plans approved by the Board of Supervisors call for Forest City to restore the first 65 feet of the Emporium building. Forest City will restore the Market Street façade to its early 1900s appearance, with columns, arches and windows that have been damaged or covered over returned to their original appearance. The 102-foot-wide glass and steel dome will be restored and placed atop the new 41-story tower. The rotunda will be restored as a major public space within the buildings, Carney said. While Bloomingdale's will fill much of the overhauled Emporium building, Forest City will development another 500,000 square feet of retail space, much of it replacing warehouses. Above Bloomingdale's will be a nine-screen cinema with seating for 3,000 people. And above that will be a hotel with approximately 300 rooms. Some neighborhood activists and historic preservations complained that Forest City will save only the Emporium's façade and dome while gutting the rest of the building. They also complained about the hotel's height and the financing arrangements. Supervisor Tom Ammiano, who cast the lone vote against the project, said the labor accord did not go far enough. Construction is scheduled to begin around the first of the year, and Bloomingdale's could open in the fall of 2003. Two other projects in the Yerba Buena Center project area are also scheduled to begin at about the same time. One involves a Mexican museum, Jewish museum and public open space; the other is a smaller commercial development. Contacts: Bill Carney, San Francisco Redevelopment Agency, (415) 749-2400. San Francisco Redevelopment Agency website: www.ci.sf.ca.us/sfra Forest City Enterprises, (216) 621-6060. Forest City website: www.fceinc.com