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Small Business Forward urges strong protections as Planning Department readies citywide upzoning
Summary
At an informational hearing tied to the proposed citywide upzoning, small business advocates and planning staff discussed displacement risks, relocation assistance modeled on AB 2011, micro‑retail requirements and other tools to protect neighborhood‑serving businesses.
The Planning Commission on April 17 held an informational session on small business impacts tied to the proposed “Expanding Housing Choice” rezoning and heard testimony from Small Business Forward, planning staff and dozens of business owners and community groups who urged stronger protections to minimize displacement.
Small Business Forward representatives said the rezoning could place thousands of neighborhood‑serving businesses at heightened risk over the multi‑year build‑out. Yolanda Purata and Justin Dolesal of Small Business Forward told commissioners that merchants often lease rather than own storefronts and carry pandemic‑era debt that reduces their ability to relocate. The group recommended a suite of protections that include relocation assistance scaled by length of tenancy, tenant consent for demolition, guaranteed “right to return,” developer‑funded lump‑sum relocation grants or housing units for affected workers, and strong “good neighbor” construction rules to protect storefront access and limit dust and sidewalk disruption.
Planning Department staff presented data showing roughly 5,600 registered businesses in corridors proposed for rezoning and estimated that, when filtered to sites without two or more residential units above, roughly 1,000 businesses are on sites more likely to be redeveloped. Using a conservative assumption that 5% of those suitable sites might develop per year, staff estimated an annual average of about 53 businesses that “could face displacement,” a figure staff said would allow targeted planning and programs.
Staff described draft policy ideas under consideration, including early notification and referral to the Office of Small Business, relocation payments modeled on state AB 2011, micro‑retail requirements in large new commercial spaces to preserve smaller affordable retail units, a new zoning district allowing ground‑floor commercial in more locations, and incentives to encourage projects to include smaller retail footprints. Staff also noted ongoing conversations with Small Business Forward, neighborhood groups, and the Office of Small Business to refine proposals.
Business owners, legacy business program advocates and neighborhood groups told commissioners they fear rapid demolition and rent pressure would accelerate displacement without firm, enforceable protections. Dozens of speakers described individual cases of rent hikes, blocked lease renewals, and difficulties relocating specialized storefronts. Several unions and trade groups supported the adequacy of draft environmental assessments for specific projects and emphasized job creation in new construction.
Why it matters: The rezoning is intended to expand housing across many commercial corridors; whether it succeeds without eroding neighborhood character depends in part on how the city supports existing merchants and workers during redevelopment.
Next steps: Planning staff said they will continue to meet with community groups and refine draft protections; some measures would require legislation, funding, or coordination with the Board of Supervisors and offices such as the Office of Small Business.
