Small Business Commission backs Family Zoning Plan with recommendations to codify tenant notification and incentives for small-business retention

The Small Business Commission on Aug. 25 approved a motion supporting the Family Zoning Plan ordinances (Board of Supervisors files 250,700 and 250,701) while adding a set of recommended protections and incentives for small businesses facing redevelopment.

Planning Director Sarah Dennis Phillips, presenting the zoning and planning-code amendments, said the package is part of the city’s response to state housing mandates. ‘‘If the homes mandated by the state…are built over the next eight years, we'd see $5,600,000,000 in spending to local and small businesses,’’ Dennis Phillips said, adding that even partial buildout would generate meaningful local spending.

Commission recommendations

After extended discussion and public comment, commissioners voted to approve the zoning files with specific recommendations that planning staff said they will seek to codify or advance at the Sept. 11 Planning Commission hearing. The commission’s recommendations included:

- Codify an early-notification requirement so the Office of Small Business and affected commercial and residential tenants are notified when a development application is submitted; - Require tracking and public reporting on the number of small businesses affected annually by rezonings and redevelopment under the plan; - Create incentives (development bonuses) to require or reward warm-shell or ‘‘move-in ready’’ retail buildouts and tenant-improvement contributions for small businesses in newly redeveloped ground-floor space; - Encourage bonuses for developer contributions to the proposed small-business relocation/rezoning fund and to worker-ownership transition funds; and - Pursue state-level advocacy to allow commercial relocation assistance and other statutory changes that would better protect displaced small businesses.

Commissioners and presenters emphasized that much of the administration’s plan already protects ground-floor commercial requirements in existing commercial districts and includes development bonuses for projects that preserve or provide space for relocated legacy businesses. Director Dennis Phillips said planning staff have already waived conditional-use requirements for displaced businesses in the draft plan and are proposing bonuses to encourage developers to provide move-in ready spaces, permit-fee waivers and other supports.

Public comment and disagreement

Public speakers split. Small Business Forward and other advocates urged stronger, codified protections (warm shells and a funded relocation program). The Housing Action Coalition supported the plan as a tool to deliver more housing and bring customers to merchants but urged continued refinement.

Vote and outcome

The commission adopted the motion to approve files 250,700 and 250,701 with the listed recommendations. The motion passed by roll call 4–0 (Commissioner Herbert, President Huey, Commissioner Ortiz Cartagena and Vice President Zazunas all voted yes). Commissioners Benitez, Cornett and Dickerson were absent.

What this means

Planning staff said they will codify the early-notification practice into the zoning ordinance and explore additional codified bonuses and incentives on Sept. 11 at the Planning Commission hearing. Several commissioners urged the Board of Supervisors and planning staff to prioritize measurable mitigation — funding for relocation, warm-shell standards and a longitudinal tracking program — as the rezoning proceeds.