$560M Commercial Development Dubbed SF Gateway to Provide 2,000-plus Jobs Across the Trades

By Jacob Bourne | contributing writer

In San Francisco‘s Bayview district, a transformative project is on the way that could bring with it a whole new era of urban development and economic revitalization for the City.

It’s called SF Gateway, and it’s the vision of San Francisco-based real estate developer Prologis. SF Gateway entails a large commercial buildout in the Bayview Market Zone, an area centered around Toland Street and McKinnon Avenue that serves as a critical hub for production, distribution, and repair (PDR) businesses. The project aims to revitalize the aging commercial infrastructure in the heart of this historically industrial corridor that’s essential to the City’s supply chain and economic health.

But best of all for local building trades workers is the fact that they will be the ones facilitating this ambitious transformation thanks to a project labor agreement struck between the SF Building and Construction Trades Council and Prologis. According to the Prologis website, an estimated 2,125 construction jobs will result from the PLA once the SF Gateway project springs to life.

In other words, a lot of work is on the way.

The PLA with Prologis, which was signed at IBEW Local 6 headquarters on Tuesday, November 28, marks the beginning of a significant new collaborative effort between real estate capital and union labor in the City — and one that puts due faith in the power of the Bay Area’s building trades workforce.

“This is a unique PLA because despite the project still being in the very early stages, the developer has committed to building it all-union,” said council President Larry Mazzola Jr. “Most other PLAs we’ve negotiated have had all of their plans already in place. It shows that Prologis believes in the workforce that the building trades has ready to go, and we get the opportunity to build a relationship with the developer in the earliest stages.”

Council Secretary-Treasurer Rudy Gonzalez stressed the profound implications of the half-a-billion-dollar-plus SF Gateway plan.

“This is a substantial project agreement in the private sector — a domain where we haven’t seen as much activity as we’d like,” he said, emphasizing the rarity and potential impact of a partnership with such a large-scale commercial initiative in the City.

SF Gateway, which entails two major logistics facilities valued at approximately $560 million, is not just a construction endeavor but a beacon of hope for local businesses, job creation, and community support, Gonzalez said. He noted Prologis’ commitment to minority contractors and local enterprises and said the project as a whole is testament to the City’s dedication to fostering a resilient and efficient supply chain in a post-pandemic world.

The PLA with Prologis has been a long time coming, but at no point was it contentious. Gonzalez applauded Prologis for its transparent and direct negotiations, which began over a year ago and culminated in an agreement guaranteeing a 100%-union project that will involve a wide spectrum of the council’s affiliated building trades unions.

The PLA, Gonzalez said, has reset the bar to a new height for future labor agreements. He also said that this PLA is the first one to be signed since the carpenters’ difficult disaffiliation from the council in February, suggesting a positive outlook for union trades workers in the city.

“This marks an all-crafts agreement that meets San Francisco’s high standards,” Gonzalez said, describing the project as a model for labor collaboration and inclusivity. He hopes that the positive partnership dynamics with Prologis signal a promising future for similar collaborations.

Courtney Bell, director of development for Prologis, said that a collaborative attitude and a focus on the community are essential elements of the SF Gateway build from her organization’s standpoint as well.

“Our goal with this project is to provide good jobs, with a focus on the community and innovative PDR,” she said. She said the project aligns well with the unique industrial zoning and needs of San Francisco in general and the Bayview in particular.

Bell described SF Gateway as a pioneering endeavor and the first of its kind at such a scale in the City — and a project that could even serve as an educational blueprint for modern PDR facilities to come. Prologis’ approach to SF Gateway is adaptive and responsive to the current market conditions in an attempt to ensure that the development not only meets commercial objectives but also significantly benefits both the Bayview community and San Francisco more broadly, she said.

Overall, Bell said, SF Gateway not only represents an economic catalyst but also a chance to provide some much-needed logistics business space in vital proximity to the Bay Area’s urban core. The reality of San Francisco is similar to that of most major U.S. cities, which are, by nature, hubs of transport and industry. Bell indicated that Prologis’ approach to this kind of development — which can be challenging when it comes to pleasing all stakeholders — will be thoughtful and adaptable.

“Given the current market conditions, we want to move forward at the right pace for what’s going on in San Francisco,” she said.

IBEW Local 6 Business Manager John Doherty put it more directly: “It’s important that we keep some of these types of facilities, like a distribution or production center, in San Francisco.” He said the project would be of great significance to the local workforce and economy, stressing the role of such facilities in sustaining the City’s economic vitality and workforce.

Doherty also applauded Prologis for recognizing the value of an all-union commitment, something he considers a testament to the quality of work and training provided by the building trades. His anticipation for SF Gateway’s groundbreaking reflects a broader sense of hope and opportunity for the local workforce.

Gonzalez shares Doherty’s anticipation.

“Every promise of future work from this project means we can bring more apprentices to get the hours they need to master their craft, significantly benefiting the workforce pipeline,” Gonzalez said.

Organized Labor will continue to report on SF Gateway as groundbreaking is planned and project timelines become available.

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