SF Planning’s Upzoning Without Affordability Or Protections Threatens Small Businesses, Including 126 Legacy Businesses
PRESS RELEASE for Thursday, June 6, 2024
San Francisco, CA – Local small businesses, including 126 legacy businesses, within the SF Planning Department's proposed upzoning map are at risk of demolition or displacement. Should the City continue rushing these plans through the approval process without accounting for their impact, profit-driven developers will be able to take advantage of the projected inflated land values created by this upzoning and drive out current tenants.
Neighboring businesses will also face threats due to rent increases, other forms of displacement, and the disruptions of ongoing construction. Since there is no commercial rent control in California and most small business owners in San Francisco do not own their buildings, they are incredibly vulnerable to these types of rezonings without affordability requirements or additional tenant protections. The upzonings incentivize property owners to increase rents or sell to developers who will replace existing businesses and housing with bigger, pricier housing and commercial spaces.
During today’s Planning Commission hearing, members of the Race & Equity in all Planning coalition (REP-SF) and Small Business Forward spoke on the negative impacts of these proposed upzonings for small businesses and tenants across the city.
“We need the Planning Department to rezone for 100% affordable housing and spaces for small businesses. They know that there could very well be mass displacement, but have no plan to deal with this. They have not implemented the mandated increased tenant protections prior to pushing these upzonings forward, and they do not have any assistance plans for affected tenants and small businesses, including legacy businesses,” says Jeantelle Laberinto of the REP-SF coalition.
“The rezoning legislation, as it stands today, would have a disastrous effect on San Francisco’s small businesses, including my own. Buildings like the one that houses Bar Part Time would be prime targets for sale and demolition, and the City has provided no plan for how businesses like mine, or the people that they employ, might survive the proposed upzoning,” said Justin Dolezal with Small Business Forward. “The City must have a plan in place to mitigate these negative impacts including relocation assistance, business disruption payments, and a plan to account for job losses.” Dolezal’s comments were met with much applause during the hearing.
“We at Peña Pachamama are facing displacement because the new building managers refuse to negotiate a fair and just lease,” said founders, artists, and musicians Quentin and Eddy Navia. “Our legacy business is known as a cultural icon, a vital artistic center for hosting world music, artists, poets, dancers, and performers, as well as an important organic restaurant in the City. Yet there is nothing preventing the realty company Hogan & Vest from pushing us out. We hope our story is not only a warning sign but also a call to this wonderful city to protect all legacy and small businesses that give character and magic to our neighborhoods and communities!”
The REP-SF coalition, comprised of 40 grassroots organizations from across the city, rejects the Planning Department’s proposed upzonings as it will set up “Redevelopment 2.0,” which could result in severe negative impacts for historically marginalized communities, small businesses, and neighborhoods. As during the Redevelopment era, many areas targeted for rezonings and the resultant demolitions, now have significant populations of BIPOC and low-income families, seniors, merchants, and workers.
REP-SF’s community demands for affordability and equity include the following.
Rezone for 100% affordable housing – not market-rate.
Build affordable, family-sized units – not tiny studios.
Increase tenant protections before upzonings.
Provide relocation and other assistance for small businesses & tenants before upzonings.
We need true community-centered planning. The Mayor has arbitrarily rushed the upzonings years ahead of the state's deadline of January 2026, without input from impacted communities. Solutions based on our community expertise should be the priority.
Please read the attached educational resource to learn more about the negative community impacts of these upzonings for small businesses and tenants.
