Buys S.F.’s Historic Clay Movie Theater and Nearby Properties
SAN FRANCISCO–(BUSINESS WIRE)–A San Francisco native and venture capitalist has committed $100 million to support the rejuvenation of the Upper Fillmore Street commercial corridor, the neighborhood in which he grew up.
Neil Mehta, founder of Greenoaks Capital, is the sole backer of the Upper Fillmore Revitalization Project, a revitalization fund that has already purchased the historic Clay Theater, an adjacent building and several other properties on Fillmore Street this year.
The goal of Mehta and the Upper Fillmore project is straightforward: Reverse the long and devastating decline of this historic and once vibrant neighborhood by purchasing and restoring properties and offering below-market leases that will enable restaurateurs, artists, musicians and small business owners to once again thrive in the Fillmore.
“The pandemic knocked San Francisco down. The city is still trying to get back up,” said Mehta, who lives, with his family, in the neighborhood where he was born and raised. “Fillmore Street is one of the best streets in our world class city, but dozens of my friends have left because of everything from crime and regulation to impossible rents. The street needs our love, attention and energy to rejuvenate and revitalize it, and I want to make that happen.”
The Upper Fillmore Revitalization Project is headed by Mehta’s neighbor and restaurant entrepreneur Cody Allen, who shares Mehta’s strong desire to see the neighborhood regain its energy, diversity and local vitality. In place of the chain stores that have taken up prime spots on the street, the Project is going to focus on bringing a rich diversity of local businesses to the community, including seeking up-and-coming chefs and restaurants to locate in the restored properties.
“We are committed to being a long-term steward of these properties, reimagining the role public spaces have in creating connected city and being a long-term supportive partner to the neighborhood,” Allen said. “Right off the bat we’ve acquired properties that have seen better days but can serve as neighborhood focal points. That includes the iconic Clay Theatre, which had fallen into disrepair and was tragically at risk of being converted into a big-box gym.”
While Mehta is backing the project, he does not personally own any of the properties it is purchasing, nor will he have any financial interest in them or gain profits from his effort. The entirety of Mehta’s stake in the project has been donated to a non-profit foundation, which will be the ultimate beneficiary of any returns generated by his investment.
Given the state of many of the properties and the cost to restore them, along with the pledge to offer local creatives and small businesses below-market leases, ongoing profits are unlikely. If there are any, they will be re-invested in the neighborhood and over time given to other San Francisco nonprofits.
Mehta and the project are not, as critics have wrongly alleged, trying to take over the neighborhood or chase out existing small businesses. The Project is focused on purchasing run down and vacant buildings, so it has neither evicted nor displaced existing tenants. And Mehta, Allen and their team intend to help tenants navigate the regulatory friction and other complexities of running a small San Francisco business, which can create costly delays and enormous anxiety for those starting a business.
“Contrary to what has been reported, we haven’t evicted anyone or forced anyone out,” he said. “Our plan is just the opposite: To keep diverse, locally based small businesses here and enable them to succeed in a city that seems dedicated to making that impossible.”
Mehta recalls growing up in the neighborhood, riding bikes down Fillmore Street with his brother, or going to a movie at the Clay. He described an incredible energy on the street then, where it felt like you could spend the whole day in the company of a diverse and vibrant neighborhood and neighbors.
“Sadly, a lot of this has been lost, which shouldn’t be happening on one of the most historic and lively streets in the most naturally beautiful city in America,” Mehta said. “It’s a preventable tragedy. But it’s recoverable.”
For more information, visit https://www.upperfillmore.org/.
Contacts
Media Contact:
Sam Singer
Singer Associates Public Relations San Francisco
singer@singersf.com
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