After years of delay, construction may finally start in the Bayview. But it won’t be housing. 

San Francisco real estate firm Prologis on Thursday received approval from the Planning Commission to embark on its “SF Gateway” project, which, if completed, would be one of the largest industrial developments in city history. The firm can break ground once the Board of Supervisors approves the final plan. 

The proposal consists of demolishing four industrial buildings spread across 17 acres bounded by Kirkwood Avenue, Rankin Street, McKinnon Avenue, and Toland Street. In their place, Prologis wants to build two structures totaling more than 1.6 million square feet. 

While the developer is perhaps best known for renting warehouses to Amazon, the proposed facilities at Gateway could be used by a variety of production, distribution, and repair (known as PDR) businesses and would not be built with particular tenants in mind, the company said. 

In addition to the two buildings, which would rise to 97 feet, Prologis committed to spending about $50 million on surrounding streetscape improvements, including building accessibility ramps and adding sidewalks and bicycle parking space.  

To make way for the development, the Planning Commission voted unanimously to certify the project’s environmental impact report, put forward a recommendation to the Board of Supervisors to create a special-use district for the area in question, and enter into a development agreement with Prologis — which would transfer ownership of 3.9 acres of the site to the city for public use. 

The special-use district would allow the developer to override the area’s zoning requirements, which allow for industrial use only. Prologis needs this exemption in order to construct 8,400 square feet of ground-floor retail space.

A vote on the Gateway project had been scheduled for May but was delayed after District 10 Supervisor Shamann Walton requested additional time to speak with community members and project sponsors. According to the Planning Department, no “substantive changes” were made to the development agreement as a result of those discussions. 

In a previous statement, the Bayview supervisor said Prologis committed to giving $8 million in direct contributions to community-serving programs and $11 million in additional capital improvements to the surrounding area, including for local business development on Third Street. “This is one of the largest private investments Bayview has seen in decades,” he said. 

The development agreement, which will see Prologis employ all union labor, stipulates that the company will release those funds in stages upon reaching certain construction milestones. 

The project does not have an official construction start date. A Prologis spokesperson said the company would prefer to have Gateway entitled first so that it can recruit tenants before building. 

Some community leaders and environmentalists have argued against the project, alleging that it would exacerbate health challenges in an area where residents for decades have had to bear the brunt of the city’s industrial pollution. The area includes the Hunters Point Naval Shipyard, which is contaminated with radioactive material.

Prologis started pitching a variation of the Gateway project in 2015. The property’s proximity to Interstate 280 and U.S. 101 make it an attractive location for industrial use and distribution. 

Amazon currently leases a warehouse from Prologis on the project site, at 749 Toland St., which would be razed if the project moves forward. 

In 2022, the Board of Supervisors, spearheaded by Walton, voted to place temporary zoning controls on new parcel delivery warehouses in response to opposition from labor unions over Amazon’s alleged refusal to bargain with workers seeking union representation. That legislation, since made permanent, led to a work stoppage at a planned 725,000-square-foot distribution center at 900 Seventh St. 

During Thursday’s vote, the planning commission approved a conditional-use permit for logistics at the Gateway project. 

Ronnie Chism, a reverend at a local Baptist church and resident of the Bayview, said he was part of the advisory group that negotiated with Prologis for community benefits. 

“They say they want to help us,” he said. “Let’s hold their feet to the fire.”