Legislation approved by city officials earlier this month has paved the way for construction to begin on Eagle Plaza, the planned multimillion dollar public parklet honoring LGBTQ and leather communities in San Francisco’s South of Market neighborhood.

Named after the nearby 12th Street gay bar San Francisco Eagle, Eagle Plaza comes to life amid a confluence of factors unique to present day San Francisco — parklets are becoming more prevalent while LGBTQ bars have been rapidly disappearing.

The dream behind Eagle Plaza is one that has it becoming SoMa’s “LGBTQ leather-focused public pedestrian space,” according to city officials, while serving as a physical reminder of the area’s history.

The $1.85 million project has languished in red tape since originally being introduced in 2014. It needed a street closure permit, which Mayor London Breed fast-tracked when she introduced the permit request directly to the Board of Supervisors earlier this month. It was unanimously approved by the group on Feb. 12.

The last, and potentially hardest hurdle is funding. While the city has arranged to cover about $1.7 million, there’s that pesky remaining $150,000.

Located in the area of 12th Street between Harrison and Bernice Streets in Western SoMa, the plaza is an ambitious project, spanning an eye-popping 12,500 square feet, which includes a parklet. By contrast, most parklets in the city are two parking spaces in width.

Then there’s the cost. While Eagle Plaza has its estimated $1.85 million price tag, Souvla’s Hayes Valley parklet cost a relatively little $90,000. The Eagle Plaza bill was made manageable through a $1.5 million in-kind deal struck between local development firm Build Inc. and the city last year; the city approved construction for three seven-story housing units across the street from the San Francisco Eagle bar while Build Inc. would carry out the work on Eagle Plaza.

The city also awarded $200,000 in grant money for the project while the community group Friends of Eagle Plaza is currently pushing to raise another $150,000 by the spring. If all goes as planned, Eagle Plaza could be open to the public by September, just in time for the Folsom Street Fair.

Justin Phillips is a San Francisco Chronicle staff writer. Email: jphillips@sfchronicle.com