SF approves sobering center as jail alternative (+ $40M hotel tax rebate)

Supervisors approved a $14,537,426 contract for a new sobering center as a jail alternative, plus a $40 million hotel tax rebate and an approximately 104-foot AT&T cell tower at Diamond Heights with added conditions.
San Francisco
Board of Supervisors Meeting
February 10, 2026

TL;DR

  • Board approved a $14,537,426 contract for the RESET Center, a new sobering facility for people arrested for public intoxication or drug use.
  • Board approved up to $40,000,000 in hotel tax rebates over 20 years for the Hearst Hotel project at 5 Third Street and 17-29 Third Street.
  • Tenderloin overnight retail closure pilot expanded to include SoMa; extended 18 months.
  • Board approved AT&T's approximately 104-foot cell tower at 350 Amber Drive in Diamond Heights with added fire, noise, and tree-protection conditions.
  • Board passed an ordinance stating civil immigration enforcement is not a City purpose and restricting use of City property.

What happened

  1. RESET Center contract approved
    1. Supervisors approved a $14,537,426 contract with ConnectionsCA, LLC to operate the Rapid Enforcement Support Evaluation and Triage (RESET) Center, a 25-bed facility where police can take people arrested for public intoxication or drug use instead of jail or the ER. The contract runs from February 1, 2026 through March 31, 2028, with an option to extend one year. Sheriff Paul Miyamoto told the Board the center is not a detention facility (there are no bars or locked doors) and said the Sheriff's Office received written confirmation from the state Board of State and Community Corrections. One registered nurse will be on-site 24 hours a day, seven days a week, plus six case managers and peer specialists. Maximum stay is 24 hours. Supervisors Chan and Fielder voted no, citing operational questions and a budget gap: the Budget and Legislative Analyst noted at least $3.1 million in contract costs are not budgeted for FY26-27 and would need to be funded in the upcoming budget. Supervisor Fielder briefly moved to send the item back to Budget and Finance Committee, then withdrew the motion after the Deputy City Attorney noted a 45-day shot clock under the Mayor's fentanyl emergency ordinance, with a deadline of February 20.
    2. What this means for you: When police arrest someone on the street for public intoxication or drug use, they'll have a third option besides jail or the hospital. Supervisor Dorsey said the model is intended to reduce the time officers spend per arrest from several hours to about 15 minutes. Whether the unfunded portion gets covered will be a budget question.
  2. Hearst Hotel gets $40 million in hotel tax rebates
    1. The Board approved a Hotel Development Incentive Agreement with Bespoke Hospitality, LLC for the Hearst Hotel project at 5 Third Street and 17-29 Third Street. The city will rebate up to $40,000,000 in net present value over 20 years, calculated as a percentage of new Transient Occupancy Taxes the hotel generates. The Budget and Legislative Analyst estimated the hotel would generate about $3 million per year in hotel tax (which the city would rebate) while the city keeps property taxes, about $500,000 per year more than the existing building generates. Supervisor Sauter cited a projected $713,000 per year in net General Fund revenue and $157,000 per year to MTA, and said the existing site has 70 to 80% office vacancy. Supervisor Dorsey said the project would bring 150 jobs downtown. Supervisors Chan and Fielder voted no. Chan said she wants a comprehensive vision for downtown investment before approving more piecemeal projects.
    2. What this means for you: A vacant office building at Third and Market becomes a hotel. The city forgoes hotel tax revenue it wouldn't otherwise collect (the building is currently mostly vacant office space) in exchange for property tax gains and 150 jobs.
  3. Tenderloin overnight closure pilot expanded to SoMa
    1. The Board finally passed an ordinance expanding the existing Tenderloin retail hours pilot to cover both the Tenderloin and South of Market neighborhoods. Retail food and tobacco establishments in the area must close from midnight to 5 a.m. (or 2 a.m. to 5 a.m. if regulated by the California Department of Alcoholic Beverage Control). The pilot was set to expire in July 2026; it now runs 18 months from the ordinance's effective date. Supervisors Fielder and Walton voted no.
    2. What this means for you: If you live or work in the Tenderloin or SoMa, retail food and tobacco shops will be required to close overnight in a wider area than before.
  4. AT&T cell tower at Diamond Heights cleared with new conditions
    1. After hearing two appeals from the Diamond Heights Community Association, the Board upheld the Planning Department's environmental exemption (10-1, Chan voting no) and approved the Conditional Use Authorization with new conditions. AT&T can build an approximately 104-foot monopole with 12 antennas behind the SFPD Police Academy at 350 Amber Drive. The added conditions: a Fire Department inspection and compliance with state and local fire codes, including specific requirements for cellular antenna sites and diesel generator placement; an ISA Certified Arborist who is also a Registered Consulting Arborist must prepare a tree protection plan; three replacement trees for any tree removed; operation within the San Francisco Noise Control Ordinance; and no operation that generates heat that adversely affects building occupants. President Mandelman asked AT&T to consult with neighbors on color, paint, and antenna film options going forward. AT&T's representative said they would.
    2. What this means for you: AT&T says the tower will improve indoor cell coverage in Diamond Heights. If you live near 350 Amber Drive, the tower is going up, but with more fire, noise, and tree-protection guardrails than the Planning Commission imposed.
  5. Civil immigration enforcement is not a City purpose
    1. The Board passed an ordinance amending the Administrative Code to prohibit using City property without authorization, except for uses traditionally available to the public. It bars City officials and employees from authorizing uses that disrupt City operations or discourage access to City services unless the use furthers a City purpose. The ordinance explicitly states civil immigration enforcement is not a City purpose, and authorizes the City Attorney to bring a cause of action against anyone using City property unlawfully. Supervisor Mahmood said similar measures have moved in Santa Clara County, San Jose, Oakland, and Richmond.
    2. What this means for you: City buildings (clinics, schools, offices) get a clearer legal shield against federal immigration enforcement on City property. The City Attorney now has authority to act if the rules are broken.

What residents brought up

  • On the RESET Center and SFUSD strike. An organizer contrasted the RESET Center's $14.5 million allocation (which she described as funding seven adults to "babysit 26 drunk and or high people") with the needs of striking educators, saying the figure is roughly half of what's needed to cover health care for educators' families.
  • On the Mission Cultural Center for Latino Arts at 2868 Mission Street. More than a dozen residents and arts workers spoke in support of a resolution committing the city to preserve the building as a Latino arts and culture center. A long-time Mission volunteer described decades of programming for youth. A small business owner who has run a legacy cultural store in the Mission for 30 years thanked the Board. Supervisor Melgar, who co-sponsored, said years of unclear communication from the Arts Commission about whether programming could return after seismic retrofitting led to the current crisis. The resolution passed 11-0.
  • On the AT&T cell tower at 350 Amber Drive. Diamond Heights residents and the Diamond Heights Community Association president argued the tower is not necessary or compatible with the neighborhood. A retired educator cited fire risk near eucalyptus trees. A longtime resident raised property-value concerns. Several speakers said AT&T had not adequately considered alternatives like distributed antenna systems or small cells. Speakers in support, including a representative of FirstNet and an AT&T customer who lives nearby, cited coverage gaps and the importance of public safety communications.

Also happened

  • $7M Bloomberg Philanthropies grant accepted for the Mayor's Office of Innovation through 2028; creates four grant-funded positions in the City Administrator's office.
  • $250,000 redirected to the District 10 safety plan covering Hope SF sites, violence prevention events, safe passages, and school response.
  • Two new historic districts created: Chula-Abbey and Alert Alley Early Residential Historic Districts.
  • Up to two operable vehicles can now be parked in driveways in required setbacks, side yards, or rear yards. Excludes boats, trailers, RVs, mobile homes, and buses.
  • Castro LGBTQ Cultural District expanded to include Duboce Triangle.
  • Movie theaters that operate as bona fide eating places can now offer entertainment and serve wine, beer, or liquor; certain Upper Fillmore theaters can sell wine and beer without size limits.
  • Resolution committing the city to preserve the Mission Cultural Center for Latino Arts at 2868 Mission Street.
  • 524-526 Vallejo Street CU appeal continued to March 10 after both parties agreed.
  • $1,119,862 California Department of Justice tobacco grant accepted for SFPD's Drug Market Agency Coordination Center.
  • $96,781 in SFPUC easement and license agreements with Daly City at Lake Merced.
  • Twin Peaks Promenade Project hearing set for March 17 at 3 p.m.
  • VoIP Access Line Tax application rules clarified.
  • Joseph Sangirardi appointed to the Sunshine Ordinance Task Force, and LaShonti Woods appointed to the Our City, Our Home Oversight Committee (11-0)

For any updates or corrections, please email steven@polisdesk.com