Follow the money: New S.F. Democratic Party gets tech, landlord cash — Prop. D keeps raking it in

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The finance filings in this town are a digital firehose: 20 days ago, when Mission Local started noting all the big-money donations leading up to San Francisco’s November election, we were at $22 million total fundraised — a lot of money, and certainly the most expensive mayor’s race in city history.

Now, it’s approaching double that. As of Sept. 18, the total stands at $37.3 million.

Most of that money belongs squarely to two separate efforts: Daniel Lurie’s race for the mayor’s office, in which the Levi Strauss heir and nonprofit founder is self-financing with enough capital to buy a small island, and TogetherSF’s pricey charter-reform effort to remake city government, part of a multi-year plan for the public pressure group backed by billionaire venture capitalist Michael Moritz. 

Lurie’s got $11.3 million in his corner, split between money he has fundraised directly and money going towards a pro-Lurie PAC, 30 percent of the total fundraised in the election. Together SF’s measure Proposition D, meanwhile, has received $7.8 million, largely from the TogetherSF patron Moritz and the allied big-money group Neighbors for a Better San Francisco. The Prop. D funding is 21 percent of the total.

Another big lump comes from money backing Mayor London Breed. She’s fundraised about $2 million directly in small, $500 or less amounts, and she’s supported by another $2.2 million in a pro-Breed PAC. Most of the PAC money is coming from the billionaire former mayor of New York City Michael Bloomberg, and from the crypto  billionaire Chris Larsen. Both are longtime Breed allies. 

In other news: A lot of money is going to the 15 propositions on the ballot, local landlords are fighting a state rent control initiative, and the San Francisco Democratic Party got a little love from tech and landlords donors this past week.

Here are the latest money moves in the November election, through Sept. 18:

PACs, PACs, PACs — opposition begins

Three political action committees have been spun up in the past weeks to oppose candidates for mayor; two against Mark Farrell, and one against Breed.

• SEIU 1021, the city’s largest union and a regional powerhouse representing public sector employees, created a PAC on Monday called “Save Our City” to oppose Farrell’s election for mayor; the PAC does not yet have any disclosed funding. In July, SEIU 1021 gave its sole endorsement to Board of Supervisors President Aaron Peskin, and its PAC will try to sink one of Peskin’s opponents in the mayor’s race.
• The San Francisco Building and Trades Council, which has dual-endorsed Farrell and District 11 Supervisor Ahsha Safaí, is starting to collect money for its PAC against Breed: Local 38, the plumbers and steamfitters union, donated $25,000 to the “Working Families Opposing London Breed” effort by the trades unions’ council. Breed previously won the council’s endorsement in 2018 and 2019, but has fallen out of favor, largely due to disagreements on housing construction.

Those two PACs join a third, “Stop MAGA Mark Farrell,” which was created by strategist and former Gavin Newsom campaign manager Jim Ross to oppose Farrell’s election. That “MAGA Mark” PAC has not disclosed any funding, but did spend some money on a website.

Those three are the only PACs registered in opposition to any candidate in the mayor’s race. But they’re not the only ones spending against a mayoral candidate:

• The San Francisco Deputy Sheriffs’ Association took out a series of ads costing $5,250 total criticizing the mayor as “Defunder Breed,” even though the Sheriff’s Office saw a $32 million increase in Breed’s latest budget from her original proposal last year. The sheriffs’ union and the mayor  have been at odds over staffing troubles dealing with Breed’s police crackdowns, leading to crowded and chaotic conditions in the city’s jails. As Breed has moved to arrest more people using and dealing drugs, inmates have said that the conditions in jail are becoming increasingly chaotic and land at the feet of the deputies within.

San Francisco Democratic Party gets tech, landlord cash

The San Francisco Democratic Party has turned a new leaf: Its progressive members were rousted from their positions in March after an oppositional slate, the Democrats for Change, took 18 of 24 seats. That changing of the guard has brought in some big-money donors to support the party’s new look: At the party’s annual gala in July, giant screens advertised donors who had given $25,000 or more: Y Combinator CEO Garry Tan, cryptocurrency executive Chris Larsen, Yelp CEO Jeremy Stoppelman, and others.

Add to that two more:

• The ex-CEO of Twilio, Jeff Lawson, gave the Democratic County Central Committee $35,500 on Sept. 10 and his wife, Erica, gave $35,500 that very same day. Lawson previously donated $37,500 towards a PAC that helped elect its new leadership, and is a big supporter of Mayor London Breed: He and his wife have given a pro-Breed PAC $100,000. (The local Democrats endorsed Breed as their sole pick for mayor.) Lawson and his wife have been active in San Francisco politics for years, giving more than $700,000 since 2014.

Also donating to the Democratic County Central Committee: San Francisco’s landlords.

• The San Francisco Apartment Association donated $5,000 to the local Democratic Party organ on Sept. 12. This wing of the local Democrats is much more YIMBY than its predecessor, and likely to be skeptical of policies like rent control that would harm the association’s interests.

Prop. D getting megabucks from tech, real-estate interests

The last 20 days have also brought another big-money donation to Proposition D, the ballot measure that is by far the most expensive contest in the November election here in San Francisco. 

The measure, put on the ballot by the advocacy group TogetherSF, which is largely backed by Moritz, would dramatically restructure San Francisco government by cutting the number of city commissions and expanding mayoral power.

• Alfred Lin, a partner at the tech-focused venture capital firm Sequoia Capital, put in $100,000 towards Prop. D on Sept. 10. That brings Prop. D’s total fundraising to $7.8 million — 21 percent of the total $37 million in the November election.

Moritz is a longtime former partner at Sequoia who is TogetherSF’s chief benefactor and the biggest donor to Prop. D; he has given it almost $3 million, including a $1.5 million donation at the end of August. 

Including Moritz’s giving, employees of Sequoia Capital have poured almost $5 million into San Francisco politics since 2002. (But much more than that to TogetherSF: He has given or pledged $17 million since 2020.)

Prop. D, part of TogetherSF’s multi-year roadmap for structural change, continues to pull in smaller, four- and five-figure sums as well, largely from tech and real-estate donors:

• Fred Ehrsam, a co-founder of Coinbase who is now a partner of the cryptocurrency investing firm Paradigm, has given $50,000 to the measure through Mark Farrell’s committee supporting the proposition. 
• Chad Byers, yet another tech venture capitalist at Susa Ventures, put in $25,000 towards Prop. D in early September, also through Farrell’s committee. Chad Byers is the brother of investor Blake Byers, who had previously put in $100,000 to the TogetherSF/Farrell measure. The Byers brothers have collectively put in some $200,000 to San Francisco politics.
• The Building Owners and Managers Association, a commercial-real-estate trade group, has put in $20,000 towards TogetherSF’s committee backing the measure. 
• Govern for California, the state group under probe by the Fair Political Practices Commission for an eyebrow-raising practice of bundling donations, has doubled down on Prop. D, giving another $17,500 to the measure on Sept. 10. It previously donated $10,000 to the proposition in late August.
• Doug Abbey, the chairman emeritus of Swift Real Estate Partners, and his wife, Nancy, have each given $5,000 to the TogetherSF committee for the measure. 
• Attorney Mark Parcella has given $10,000 to the measure via Farrell’s committee.

Farrell’s PAC gets half-million-dollar boost

As we wrote last week, Farrell’s PAC has quickly amassed support from some big names, like the billionaire investor Bill Oberndorf, and another investor, Kamran Moghtaderi. Oberndorf, who is also a financier and chairman of the well-heeled pressure group Neighbors for a Better San Francisco, gave $350,000 to the PAC last week; Moghtaderi gave $125,000.

Now, one of Farrell’s oldest supporters is joining the fray and besting them both:

• Thomas Coates, a rent-control foe who has spent handsomely to elect Republicans nationally, put in $470,000 to a pro-Farrell PAC on Sept. 12. That is in addition to $500,000 that Coates and his wife previously put into Farrell’s PAC backing Prop. D. Coates, who lives in Farrell’s old district in the Marina, has backed the former supervisor for years. Coates’ donations, in fact, topped the list of Farrell’s “behested payments” — made when elected officials ask donors to fund third parties, like nonprofits — that put Farrell in an unwelcome media spotlight last week, since they showed Farrell pushing donors to a nonprofit where his wife was a board member when those donors had business at City Hall; Coates’ donations also helped get Farrell slapped with a $25,000 ethics fine in 2017.
• Paul Boschetto, the uncle of District 7 supervisorial candidate Matt Boschetto, put in $25,000 towards a pro-Farrell PAC back in July; Paul Boschetto filed a “major donor” form on Sept. 12 revealing the donation. 

The Boschettos are a very wealthy family that sold their engineering and janitorial firm in 2021 for $830 million. Different family members have put $67,000 into a ballot measure committee run by Matt Boschetto to oppose closing the Upper Great Highway to cars. 

Though Matt Boschetto’s committee can only directly campaign against the ballot measure, it will still benefit his race to represent District 7 because a ballot measure committee can take in unlimited sums and use the funds to plaster Boschetto’s face and name on ads and mailers across the city, boosting his recognition.

Pro-Breed PAC also growing …

• Nick Josefowitz, a British millionaire who sat on the BART board and unsuccessfully ran for District 2 supervisor in 2018, has put in $25,000 towards the pro-Breed PAC “Forward Action SF.” Josefowitz ran for Farrell’s former seat after Farrell was made interim mayor in 2018; Farrell appointed his former aide, Catherine Stefani, to the seat, and she went on to win in her own right.

That pro-Breed PAC has also started spending big: On Sept. 11, it spent about $150,000 on video production and editing, a good chunk of the $2.1 million it has raised so far.

And more of ‘Dan’s dollars’

Daniel Lurie has once again made a hefty payment from his own pocket to self-finance his mayoral campaign, the kind of money that would, on its own, entirely stand up any ballot measure or supervisorial campaign.

• Lurie poured $280,000 into his mayoral committee on Sept. 13. That means he has self-financed with more than $5 million so far, and is bolstered by another $5.5 million in a pro-Lurie PAC (other donors have given him around $800,000 in small dollar amounts). He is, by far, the most well-resourced candidate in the mayor’s race — and he needs to be, since he is essentially buying name recognition in a field crowded with insiders known to San Franciscans.

Plus: A Salesforce board member and investor CEO is putting six figures behind the pro-Lurie PAC:

• Garrison Mason Morfit, who is on the Salesforce board of directors and is the co-CEO of an investment firm named ValueAct Capital, has put in $100,000 to the “Believe in SF, Lurie for Mayor” PAC. That’s the PAC that has seen $1.1 million from Lurie’s family ($1 million from his mother, $100,000 from a brother), and millions more from other wealthy donors, like the WhatsApp co-founder. It has fundraised $5.5 million total.

Surprise, surprise: Landlords fighting rent control

A state law known as the Costa-Hawkins Act currently restricts rent control to buildings constructed before 1995 (or to whenever a city had enacted its own rent control initiative, so 1979 in San Francisco). Proposition 33 on the November ballot would repeal Costa-Hawkins, and San Francisco’s landlords are stepping in.

• The San Francisco Apartment Association, the landlord lobbying group, donated $100,000 to defeat Prop. 33, the statewide ballot measure that would allow cities to enact rent control on newer buildings. 

The San Francisco landlords’ contribution is a small sliver of the more than $48 million opposing the measure through Sept. 3, the latest date for which information is available; that’s largely from real-estate and landlord groups. The measure has received some $22 million in favor, meaning it is being outspent over 2-1. 

Money flowing to ballot measures

It’s not all candidates: Local ballot measures account for a bit over $10 million of the total going into the November election, so about 27 percent. Yes, the vast majority of that is TogetherSF’s Prop. D, but there are some others taking in checks:

Proposition A, the $790 million school bond that would help the district renovate and upgrade schools, is getting some significant backing from different construction unions and firms, which are poised to reap the rewards of any kind of building spree.

• San Francisco Laborer’s Local 261, the local construction workers’ union, gave $10,000 to the measure. They are likely to be hired on some of the job sites created by the bond.
• Joining them is Local 38, the plumbers and steamfitters union, likewise hoping for jobs. Local 38 gave $15,000.
• Rodan Builders, a local general contractor, put in $10,000 to the proposition on Sept. 16 — again, in likely anticipation of future work.
• Rounding them out: Vanir Construction Management, a construction management firm, which put in $5,000 likely for the same reasons.

Proposition B, the $390 million general obligation bond that would fund a variety of health and homelessness projects, is getting big, big bucks from all manner of businesses.

• Sutter Health donated $50,000 to the measure on Sept. 10. The healthcare giant operates hospitals across the city, and may benefit from the bond’s projects.
• Sabah International, which installs fire sprinklers, alarms, and similar systems, put in $25,000.
• Boston Properties, a real estate giant that owns dozens of commercial properties across San Francisco, is in for $20,000.
• The H. Drake Corporation, another commercial real estate firm, put in $10,000. 
• San Francisco Laborer’s Local 261 gave $10,000 as well.
• The Hotel Council of San Francisco put in $5,000, while the engineering consultant firm SCA Environmental ponied up $2,000.

Prop. B has now raised a total of $298,500 as of Sept. 18. Besides Prop. D, it has the most money in favor of any other proposition.

Not everyone is on board though. The San Francisco Apartment Association has spun up a PAC to oppose the measure. It does not yet have any disclosed funding.

Proposition F, the police retirement measure, is getting a big boost from — wait for it — the cops. Plus a tech and Breed ally Ron Conway:

• The San Francisco Police Officers’ Association, the union for city cops, put in $75,000 into Prop. F on Sept. 13. The measure would let police officers earn both salaries and pensions at the same time. The arrangement was tried in 2008 in San Francisco and advertised as revenue-neutral, but then city controller found it added $52 million in costs in just three years and supervisors voted to abandon it in 2011.
• Also in Prop. F’s corner: Conway, the venture capitalist and long-time financier of San Francisco politicians, particularly Breed and former mayor Ed Lee. Conway put in $25,000 to the measure the same day as the police union’s donation.
• Finally, the hoteliers have put in a nickel: The Hotel Council of San Francisco donated $5,000 to the police retirement measure this week.

Proposition I, which would beneficially change retirement plans for nurses, 911 dispatchers, and some other public employees, is getting help from the union representing those public sector workers:

• SEIU 1021 put in $10,000 towards Prop. I on Sept. 16. Its members stand to benefit from the change, which would allow for more flexibility and higher pensions, so its support is no surprise.

Proposition K, the measure that would close the Upper Great Highway to cars so the city could build a park in the future, is being fought with money from the San Francisco Apartment Association.

• The landlord lobbying group gave $5,000 to Boschetto’s committee opposing the measure. As mentioned above, the committee indirectly benefits Boschetto’s run for supervisor and the landlords’ giving is an indication of their support for him.

Proposition M, the business tax reform measure co-sponsored by mayoral candidates Peskin and Breed, keeps getting some big corporate donations:

• Instacart, the food delivery giant headquartered in San Francisco, put in $50,000 to the measure on Sept. 13. The measure would alleviate the tax burden on both small and large businesses by shifting how the city collects taxes, so it’s no surprise big tech firms are lining up to pass it. Besides Instacart, the measure has seen six-figure sums from Google and Airbnb, among others.
• The Hotel Council of San Francisco is buttressing these big-money gives with a $20,000 gift to Prop. M on Sept. 12. Its members, too, will benefit from the tax cut and are eager to see their budgets lighten in the wake of a post-pandemic slump.

Proposition N would create a public fund for the city to reimburse student-loan payments for certain employees, like police officers, firefighters, sheriff’s deputies and 911 dispatchers. The measure would not put any money into the fund; it would just create it so the city can accept private donations for student-loan assistance. 

• Prop. N received $50,000 from the San Francisco Deputy Sheriffs PAC, the political action committee of the sheriff’s deputies union. Its members stand to benefit.

Breed’s reproductive freedom measure, Proposition O, which would create a list of abortion providers within city limits and allow the city to take out billboards warning when “crisis pregnancy centers” do not provide abortions, among other changes, is slowly starting to fundraise:

• The longtime petroleum CEO Wisfe Aish gave $20,000 to Prop. O on Sept. 11. Aish has previously donated about $63,000 to San Francisco politics, including $25,000 to the March measure to reintroduce algebra to eighth graders in public schools.

Anything notable we’ve missed? Email me at joe.rivanobarros@missionlocal.com and we’ll get it into a future dispatch.