Small Business Commission removes Phaedrus from legacy registry, approves four new legacy listings

The San Francisco Small Business Commission voted on May 12, 2025, at City Hall to remove Phaedrus from the Legacy Business Registry and to add four other businesses to the registry after public presentations and a staff report.

The removal request for Phaedrus, a BMW and MINI repair specialist established in 1979 at 1641 Jackson Street in the Polk Street–Van Ness corridor, was presented by Richard Curillo, Legacy Business Program Manager with the Office of Small Business, and by the business co-owner, Dale Tocchini. Tocchini told commissioners that the owners negotiated a three‑year lease extension through April 30, 2028, and that being listed on the registry created a conditional‑use requirement that his landlords—the Horne brothers—would face when re‑leasing the property. “We don't want to leave the Horne brothers … with an economic cost once we leave the building, so that's why we agreed with them that we would request removal from the San Francisco legacy business registry,” Tocchini said.

The commission discussed the legal standard for removal under the legacy business rules and regulations. Curillo summarized the rules, noting that Section 4 outlines grounds for removal (for example, misrepresentation of qualifications, cessation of operations in San Francisco, or failure to maintain the features that led to listing) and said the City Attorney’s office advised those causes did not clearly apply in this case. Curillo told the commission that the decision ultimately rests with the Small Business Commission regardless of who requests removal.

Vice President Czajunas and other commissioners asked staff about protections for the building itself and whether historic‑preservation or planning controls independent of the legacy business program could affect future redevelopment. Curillo said he found references in the property information map and recalled prior planning‑department contact about the building’s historic features, but he could not confirm any active redevelopment plan.

After hearing no public comment on the item, Commissioner Cornett moved to approve removal; Commissioner Ortiz Cartagena seconded. The roll call recorded Commissioner Cornett, President Huey, Commissioner Ortiz Cartagena and Vice President Czajunas voting “yes.” The motion passed and the commission removed Phaedrus from the Legacy Business Registry.

Votes at a glance (registry items): - Removal of Phaedrus (1641 Jackson Street): Motion to approve removal by Commissioner Cornett; second by Commissioner Ortiz Cartagena. Vote: Cornett—yes; President Huey—yes; Ortiz Cartagena—yes; Vice President Czajunas—yes. Outcome: approved. Notes: Request made by business co‑owner; staff cited legacy business rules, section 4, and City Attorney guidance that the listed causes for removal did not appear to apply but commission authority remains.

- Approval of legacy business listings (Item 3): Motion by Commissioner Ortiz Cartagena; second by Commissioner Cornett. The commission approved resolutions to add the following to the Legacy Business Registry (votes recorded as above): Chile Lindo (bakery and coffee shop, established 1970; core feature: Chilean restaurant/empanadas), La Victoria SF (historic bakery, founded 1962; core feature: bakery), Southern Exposure (artist‑centered nonprofit, established 1996; core feature: promotion of visual arts), and Win Long Hardware and Supply (locally owned hardware store, established 1990; core feature: hardware store). Each application included staff reports, draft resolutions and planning documents; all four received positive recommendation from the Historic Preservation Commission.

Public comment for Item 3 included short presentations from business representatives and supporters. Paula, the owner of Chile Lindo, thanked the commission and highlighted the business’s community ties. Staley Chin spoke on behalf of Win Long Hardware, describing the store’s 30‑plus years serving the Chinese‑speaking community and local neighborhoods. Danny Gabriner, representing La Victoria, said he was “so proud” of the business’s continuity and contribution to community life.

Other routine actions: the commission approved draft minutes of the March 24, 2025 meeting by motion of Commissioner Cornett, seconded by Vice President Czajunas; the vote carried with the same commissioners present and voting “yes.”

Why it matters: Legacy Business Registry status can trigger conditional‑use review for subsequent tenants in certain neighborhood commercial districts and can affect landlord and reuse options for a property. In the Phaedrus case, the owner cited potential economic difficulty for the property owners if the space required conditional use authorization for future tenants. For the four businesses added to the registry, listing will make them eligible for program assistance and recognition intended to help with long‑term viability.

Clarifying details recorded at the meeting: Phaedrus was described as having more than 23,000 square feet at 1641 Jackson Street; the building was said to have been constructed in 1914. Tocchini described prior lease history and rent adjustments: scheduled rent increases from $31,500 to $33,000 that were waived in 2018–2019, a five‑year extension through April 30, 2025 agreed in January 2020 with no increase, COVID‑era deferrals for April–June 2020, and the most recent three‑year extension at $28,000 per month (an 11% reduction). Staff noted conditional‑use exceptions for spaces vacant three or more years, or where a legacy business has removed itself from the registry; staff also said certain rent‑subsidy incentives are available only for lease extensions of ten years or more.

The commission did not announce any immediate follow‑up direction to staff beyond adopting the resolutions for the four new listings and approving the removal request.

Speakers quoted and attributed in this article are drawn from the meeting record and presentations.