Twitter Signs Letter of Intent to Occupy Historic Furniture Mart Building in Mid Market

03/16/11— Mayor Edwin M. Lee today announced that Twitter has contacted the Mayor and the Board of Supervisors expressing their eagerness to stay in San Francisco and sign a six year lease, pending approval of the Central Market/Tenderloin Payroll Tax Exclusion. Twitter has been working with city officials over the last six months to develop a financially viable plan that allows the company to keep their headquarters in San Francisco, moving their current offices from Folsom Street to a larger space on Ninth and Market streets that will accommodate their expected expansion.

“I am excited to hear from Twitter of their eagerness to stay in San Francisco. I will work closely with the Board of Supervisors to ensure that the Central Market / Tenderloin Payroll Tax Exclusion passes with broad community support,” said Mayor Ed Lee. “This is the moment we have been waiting for our Mid Market area. The transformative nature of an anchor tenant like Twitter will revitalize this community, create jobs and stimulate our economy at a time when we need it most.”

“We have been working with the Mayor and the Office of Economic and Workforce Development for the past six months to keep Twitter’s headquarters based in San Francisco,” said Ali Rowghani, Chief Financial Officer of Twitter, in a letter to the Mayor, President David Chiu and Supervisor Jane Kim. “Twitter remains hopeful that the Board of Supervisors will pass the payroll tax exemption as part of the effort to revitalize the mid-Market area.”

Twitter has signed a Letter of Intent (LOI) to occupy the historic Furniture Mart building. The LOI is contingent on the Board of Supervisors’ approval of the payroll tax exemption as part of the revitalization efforts in the mid market area. A payroll tax exemption helps attract businesses like Twitter and would apply to other companies that locate in mid Market area. If the tax exemption does pass as currently outlined, Twitter is committed to signing a lease that will keep the company in San Francisco for six years and likely a subsequent 10-year renewal term.

“I’m thrilled that Twitter has committed to staying in San Francisco if this legislation is enacted,” said Board of Supervisors President David Chiu. “This success shows that we can create jobs and work to revitalize these challenged neighborhoods with good public policy.”

“Job creation is one of my top priorities,” said Supervisor Jane Kim. “This is a temporary and targeted incentive for a central city corridor which has sat mostly vacant for decades. We have an opportunity to attract unique partners who are growing jobs and excited to invest in a neighborhood plan that prioritizes residents and small businesses, while increasing public safety and supporting robust transit improvements.”

Twitter estimates that they can grow to more than 2,600 jobs in the next six years at its new location in Mid Market. Over that period Twitter’s cumulative direct tax revenue for the City could total $9.7 million. This includes $465,000 in property taxes in the first year from the reassessment of the building improvements. In the 7th year, when the payroll tax exclusion would end, Twitter could generate more than $4 million in payroll tax alone.

Last month, Mayor Lee joined Supervisors Chiu and Kim to introduce the Central Market/Tenderloin Payroll Tax Exclusion to support job creation, build confidence with the private sector, and create real solutions to persistent challenges in the area. This proposal would create a six-year payroll tax exclusion for net new jobs created in the Central Market / Tenderloin Area and creates new jobs, revenue for the City and has the potential to create a new technology / design cluster in the Central Market – without reducing current revenues. The payroll tax exclusion will be a powerful tool in bringing other new businesses to the Central Market area and a critical tool in revitalizing San Francisco’s grand boulevard.