North Beach Business Owners Oppose Zoning Changes Proposed by Supervisor Sauter

The proposed legislation by District 3 Supervisor Danny Sauter to allow storefronts to merge in North Beach has sparked significant concern among local business owners. While Sauter argues that this initiative aims to combat retail vacancies, many in the neighborhood are questioning the rationale behind it. They point to North Beach‘s commercial vacancy rate of just 6%, one of the lowest in San Francisco.

Sauter’s proposal is part of a broader effort by San Francisco City Hall to address retail vacancies that have plagued the city since before the pandemic. Areas such as Union Square and the Van Ness Corridor have particularly struggled. The lifting of the formula retail ban in select districts is seen as one potential solution to these challenges. Sauter’s specific legislation, which will be discussed at the San Francisco Board of Supervisors meeting on March 5, 2024, seeks to allow small storefronts to merge into larger spaces.

Despite these intentions, a significant portion of North Beach business owners opposes the changes. “District 3’s reputation as the hardest district in San Francisco to start or run a small business is not something I think anyone should be proud of,” Sauter stated during a meeting of the board’s Land Use and Transportation Committee. He believes his legislation will help fill empty storefronts, enable small businesses to grow, and reform outdated planning codes.

Critics, including Nick Ferris, president of the Telegraph Hill Dwellers Association, counter that the current policies have fostered stability in North Beach. “These policies that have created that stability are the very policies that this legislation would undo,” Ferris said. He emphasized that the area already boasts the highest concentration of restaurants and bars per capita in the city.

Sauter contends that there are small businesses eager to expand but are currently hindered by zoning restrictions that prevent storefront mergers. However, business owners are concerned that allowing larger retailers to occupy these merged spaces could threaten the survival of locally-owned enterprises.

In response to these concerns, Sauter has proposed an amendment to the legislation that would prohibit healthcare service businesses from opening on the ground floors of merged storefronts. This amendment aims to alleviate fears that such businesses could displace traditional retail establishments.

The upcoming vote at the Board of Supervisors is expected to provide clarity on the future of this legislation and its potential impact on the vibrant North Beach community. As the meeting approaches, opinions remain divided, with many local residents and business owners advocating for the preservation of their neighborhood’s unique character.