The grassy stretch in Golden Gate Park was the site of an annual Comedy Day that counted Williams among its regular supporters.
During a San Francisco Recreation and Parks Commission meeting debating the rechristening, a series of comedians who had proposed the change called it a worthy tribute to one of their brethren.
“He was at the very first Comedy Day, and loved coming year after year to hang out with his contemporaries and shower the stage with his genius whenever he could,” Debi Durst, who produces Comedy Day, told the San Francisco Examiner.
“Laughter is the best medicine and this man brought huge doses of it,” she added.
One of Williams’ best-loved movies is also set in San Francisco. The city is the backdrop for his 1993 hit “Mrs Doubtfire”.
Mr Williams was found dead by suicide at his California home in 2014. He had recently been diagnosed with Parkinson’s Disease.
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