Commission backs District 3 permitting reforms to ease small-business openings, urges follow-up outreach

The San Francisco Small Business Commission on July 28 voted to support a package of District 3 zoning changes introduced as Board of Supervisors File 250,682 that would consolidate the North Beach Special Use District into the North Beach Neighborhood Commercial District and expand permissible uses and size limits in parts of District 3.

Michelle Andrews, legislative aide to Supervisor Danny Sauter, presented the package and described it as a targeted set of permitting reforms "to make it easier to open and run a small business specifically in District 3." Andrews outlined measures including principally permitting limited restaurants in North Beach, Nob Hill and Jackson Square, expanding principally permitted use size limits to 3,000 square feet in some corridors, conditionally permitting certain health services on ground floor locations, allowing storefront mergers in parts of North Beach and Polk Street, and adding North Beach to a priority processing program to place qualifying conditional-use applications on a planning commission agenda within 90 days.

Andrews told the commission the reforms were developed with planning department staff and in preliminary conversations with neighborhood and merchant groups. "We reached out to every major neighborhood association and merchant group within these impacted areas before we introduced this legislation," she said.

Commissioners pressed for detail on community concerns, data supporting increased use size limits and on the time frames for conditional-use priority processing. Andrews said some conversations with merchant and neighborhood boards were still ongoing and that priority processing would place qualifying conditional-use items on a planning commission agenda within 90 days.

Public commenters raised process and outreach concerns. Kristen Evans, who represents merchant groups, urged delay so neighborhood business boards could weigh in; Peter Stevens of the Telegraph Hill Dwellers said his organization had not yet met with the supervisor. Commissioners acknowledged the outreach gaps but several said creating consistent, citywide rules for small-business permitting was important for equity and predictability.

Commissioner Herbert moved that the commission vote to support the proposal; Vice President Zazunas seconded with an added recommendation that staff continue consultations with merchant groups and return with data and outreach results. The commission approved the motion by roll call: Benitez, Cornett, Dickerson, Herbert, President Huey and Vice President Zazunas voted yes; Commissioner Ortiz Cartagena was absent.

The commission's support is advisory. The ordinance will next go to the Planning Commission and then to the Board of Supervisors; Andrews said Planning Commission hearings are scheduled in September as part of the project's permit process.