SFMTA Board Authorizes $42M Powell Street Transit and Pedestrian Modernization

SAN FRANCISCO, CA — The Board of Directors of the San Francisco Municipal Transportation Agency (SFMTA) voted unanimously on Tuesday to approve a $42.3 million construction contract for the Powell Street Promenade and Cable Car Track Modernization Project in Union Square.

Project Engineering and Transit Flow

The capital investment provides comprehensive infrastructure renewal along the bustling Powell Street corridor between Market and Post streets. The project replaces 130-year-old subterranean cable car track substructures, widens pedestrian sidewalks by six feet, installs durable metallic streetscape furniture, and constructs dedicated accessible transit boarding islands.

Transportation planners highlighted that the upgrades will eliminate transit bottlenecks, enhance pedestrian safety for 45,000 daily commuters and visitors, and reduce cable car mechanical derailments by 40 percent.

Retail Core Economic Revitalization

Union Square business alliances and downtown commercial property owners praised the contract approval as a pivotal downtown economic stimulus, ensuring Powell Street serves as a world-class gateway to San Francisco’s shopping and hotel district.

The project is funded through a combination of federal transit infrastructure grants and local Proposition L transit sales tax revenues.

Construction Timeline and Phasing

Construction crews will begin phased underground utility relocation in November 2026, maintaining continuous cable car service throughout key holiday shopping windows.