Mid-Market project a step closer with transgender district deal

Rendering of the proposed commercian-condominium project at 950 Market St. in San Francisco Rendering of the proposed commercian-condominium project at 950 Market St. in San Francisco Photo: Handel Architects Photo: Handel Architects Image 1 of / 1 Caption Close Mid-Market project a step closer with transgender district deal 1 / 1 Back to Gallery

The large San Francisco hotel and condominium complex proposed for 950 Market St. is set to move forward after the developer reached an agreement with a coalition of LGBTQ activists who had opposed the project.

On Monday, developer Group I agreed to pay $300,000 into a fund that will be used to establish a transgender community center, to create a transgender historic and cultural district, and to support transgender-serving businesses and nonprofits in the district.

The Mayor’s Office of Economic and Workforce Development will administer the fund, with a board of directors made up of community members.

Nate Allbee, who is pushing for the establishment of the transgender historic district in the Tenderloin, said the developer “got how important transgender history is to the community.”

“They have given us this amazing fund to help us preserve our history,” Allbee said. “We are lucky to be in San Francisco, where even the developers are supportive of protecting LGBT spaces.”

In the weeks leading up to the deal, the opponents had argued that the environmental study for the 950 Market St. development failed to adequately assess the historic role the block played in the the city’s lesbian, gay, bisexual, transgender and queer history. The block was the center of what was called the “meat rack” — a district bounded by Turk, Taylor, Market and Mason streets — a busy spot for transgender hustlers from the 1950s through the early 1970s.

In addition, two early gay bars — the Old Crow and the Rainbow Tavern — occupied 950-964 Market St., a two-story structure also known as the Dean Building. Another building, the three-story corner structure with entrances at 974 Market St. and 67 Turk St., was home to the Silver Rail, another gay bar.

The deal helps Group I avoid a legal fight that could have dragged on for months. It clears the way for the developer to start construction on a modern glass and metal flatiron building that will add 242 condo units and 232 hotel rooms to a stretch of Market Street that has been largely boarded up and vacant for a decade.

“We are hoping to begin pulling permits in February, and demolition would begin shortly thereafter,” said Jessica Berg, a spokeswoman for the project.

On Tuesday, Supervisor Jane Kim is to introduce legislation to create the transgender historic district, the first of its kind in the United States. The district will be bordered by Jones Street to the west, Mason Street to the east, Market Street to the south and Eddy Street to the north. It will also include the first two blocks of Sixth Street, between Howard and Market streets.

The historic district will be called the Compton Cafeteria Historic District, after the 1966 riot at a cafe at Turk and Taylor, which is considered the first major transgender protest in the United States.

“We want trans people from all over the world to be able to learn their history in the Compton District,” said Allbee. “It’s an official recognition by the city that there are historic and cultural resources related to the transgender community that need to be preserved.”

Kim, who brokered the deal, said, “It was a lot of meetings and a lot of listening in terms of what the actual needs were.” Kim has been supportive of the project, particularly since Group I agreed to donate a parcel of land at 180 Jones St. to the city for affordable housing.

Both Kim and Berg said a major sticking point in the negotiations was figuring out who would control the money and how it would be disbursed. Before the deal, backers of the development had publicly accused the opponents of looking to shake down Group I for $2 million.

“This money is going directly to the city, but it will address the issues the community is concerned about,” Kim said.

Berg said the developer has always been dedicated to making “meaningful contributions to those who live in the Tenderloin.”

“We wanted to make sure the agreement wasn’t just to benefit a narrow group of individuals but the community at large,” Berg said.

J.K. Dineen is a San Francisco Chronicle staff writer. Email: jdineen@sfchronicle.com Twitter: @sfjkdineen