SAN FRANCISCO, Calif. — The long-anticipated revitalization of Portsmouth Square, a vital gathering space in San Francisco’s Chinatown, has hit a six-month delay after construction bids came in more than $10 million over budget, city officials confirmed this week.

Originally scheduled to break ground in fall 2025, the project’s bidding process will now restart in September, with new bids due in late October. If all goes as planned, construction will begin in March 2026, shortly after Lunar New Year festivities.

“The cost overage is due to global tariffs, ongoing supply chain challenges and widespread construction inflation,” said Tamara Aparton, spokesperson for the San Francisco Recreation and Park Department, which owns and operates the square.

The city engineer’s budget estimate was $43 million, but the lowest of three bids submitted totaled $54.7 million. Officials plan to revise the scope by reducing material costs, adjusting fencing options, and scaling back some nonessential amenities—but without changing the core design elements of the 1.3-acre park.

“The good news is that it is still on track,” Aparton said. “Construction is still expected to begin in March 2026, right after the Lunar New Year and just 5½ months later than originally planned.”

Despite the delay, the park will not be redesigned, which would have caused more significant setbacks and jeopardized access to city and state bond funds. The core features—a new children's playground, a neighborhood clubhouse, rotating art wall, and shaded community gathering spaces under a trellis—will remain intact.

However, some elements still pose challenges. A major feature of the redesign includes demolition of the pedestrian bridge that spans Kearny Street, connecting the park to the Hilton Financial District hotel and Chinese Culture Center. The city has long labeled the span “the bridge to nowhere,” but who pays the $4–5 million removal cost remains unresolved.

“While the city works through the bid process for the project, we are separately continuing to negotiate the outstanding issues related to the allocation of demolition costs between the city and the Hilton,” said Jen Kwart, spokesperson for the San Francisco City Attorney’s Office. “The bid process will continue to proceed independent of the negotiations regarding cost allocation.”

Portsmouth Square, which sits atop a four-level city-owned garage, is Chinatown’s most important open space, serving residents—many of whom live in single-room occupancy (SRO) units—with limited access to green spaces.

“The community has been waiting for a long time for the new park,” said Anni Chung, President and CEO of Self-Help for the Elderly, which runs programs out of the square’s clubhouse. “Most of our Chinatown residents live in SROs, and Portsmouth Square is our only major park and open space. No more delay.”

Chung, who has been involved in planning for more than a decade, expressed cautious optimism following a recent community meeting where officials outlined the updated timeline.

“They seem to be pretty certain that it will only delay the project by five months,” she added.

Including planning, permits, community outreach, infrastructure work, and project management, the overall project cost is now estimated at $71 million. Once construction begins, the buildout is expected to take 26 months, with a projected completion in summer 2028.

For Chinatown residents and advocates, the updated square represents more than a park upgrade—it’s a critical public space for connection, culture, and community, now in its final march toward realization.

Originally reported by Sam Whiting in SFC.