Dolph Rempp says his Sailing Ship Restaurant was a true symbol of the San Francisco waterfront and the last and the only ship of its kind. Many South Beach residents, however, expressed gratitude for the demolition, saying the Sailing Ship Restaurant did not fit in well with the neighborhood, which has quickly become one of the city's hotspots.

When the restaurants lease with the Port expired last year, the San Francisco Redevelopment Agency, which held the option on the land, decided to redevelop the property. According to city officials, the former industrial area is blighted by economic and physical obsolescence, vacant and dilapidated buildings and piers and underutilized and inefficient street rights-of-way.

With the demolition complete, the city will build new harbor offices, make improvements to nearby Pier 40 and expand the promenade along the 3-acre waterfront. The city also plans to build a condominium complex. These plans are part of the redevelopment agency's Rincon Point-South Beach, a 115-acre redevelopment project composed of two geographic areas along San Francisco's waterfront.

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