People fill Portsmouth Square in San Francisco's Chinatown neighborhood on Jan. 22, 2024. A planned $43 million renovation of Portsmouth Square is facing a 6-month delay after construction bids came in more than $10 million over budget due to tariffs, inflation and supply chain issues, city officials say. (Beth LaBerge/KQED)
The planned makeover of one of San Francisco’s oldest parks is facing a six-month delay due to tariff-induced increased construction prices.
Renovations to Portsmouth Square, in Chinatown, were projected to cost around $43 million but because of President Donald Trump’s tariffs on global trading partners, ongoing supply chain challenges and widespread construction inflation, all bids on the city project have exceeded that estimate by over $10 million, with the lowest at $54.7 million, according to the Recreation & Parks department.
To stay on budget, the project will undergo another bidding process in September, with an anticipated groundbreaking in March 2026.
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Despite the delay, community members said they are glad the development is still underway.
“I’d say the department is still on track. A five-month delay is nothing, the community has waited for years,” said Vanita Louie, a Rec and Parks commissioner, in a statement. “This is the most major park renovation project in Chinatown’s history. The department will take the extra time in finding cost-saving ways without changing the approved design.”
Birds fly above a pedestrian bridge connecting a Hilton to Portsmouth Square in San Francisco’s Chinatown neighborhood on Jan. 22, 2024. (Beth LaBerge/KQED)
According to Rec and Parks spokesperson Tamara Aparton, rebidding will protect public funds, preserve access to time-sensitive state funding and add an emphasis on avoiding a full redesign that could delay the project further.
“We’ll adjust the more ancillary or unseen parts of the project, like finding a less expensive material for something or adjusting things like fencing, to bring down the cost while keeping the heart of the project intact,” said Aparton.
The “heart of the project in question” is the needs and cultural preservation of Chinatown, where Portsmouth Square resides, Aparton said.
Anni Chung, the president and CEO of Self-Help for the Elderly, a nonprofit that runs classes and workshops from the Portsmouth Square Clubhouse, emphasized that many of Chinatown’s 15,000 residents live in single-room occupancy apartments. Without living rooms, many rely on public spaces like parks to form community.
“It’s really part of our life. We work in Chinatown. Some of us live in Chinatown. The elderly and immigrant families live in Chinatown,” said Chung. “I know how important it is for our community to have a functional, viable, safe park where all our residents, young and old, can go and enjoy lunch there and just sit and relax for a few minutes before the hectic day.”
While developments are in motion, the removal of the pedestrian bridge that connects the Hilton Financial District hotel and Kearny Street, which borders the park, poses a challenge for the project — as there isn’t an agreement as to who will cover the expense.
The hotel also hosts the neighborhood’s Chinese Culture Center, where community members have expressed concerns about the bridge.
“As part of the park design, the majority of the community supported the removal of the bridge,” said community member Allan Low.
Louie added that all the new bid proposals include plans for demolition of the Hilton bridge.
The city attorney’s office is currently in negotiations with the Hilton hotel. Construction and completion of the development are now expected to begin in the summer of 2028.
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