Mayor Lee backs prioritizing Third Street storefronts for small, neighborhood businesses

Mayor Edwin Lee told the San Francisco Board of Supervisors on March 10 that he supports efforts to prioritize ground-floor storefronts along the Third Street merchant corridor for neighborhood-serving commercial businesses, while finding other nearby spaces to house expanding city agencies and nonprofits.

Lee made the remarks during a special order at the start of the Board's meeting when Supervisor Malia Cohen (District 10) asked whether the mayor would support prioritizing Third Street storefronts for commercial businesses and how city agencies should locate in the Bayview. "The simple answer is yes," Lee said, adding that his Invest in Neighborhoods initiative has helped reduce vacancy and attract small businesses citywide.

The mayor described specific commercial tenants he said the program has supported, naming Auntie April's, Yvonne's Southern Sweets, Kennedy's Market, La Laguna and several taquerias. He said the initiative has contributed to a citywide two percent drop in retail vacancy and that Third Street—where vacancy stands near 20 percent—merits continued attention.

Lee told the board he and Supervisor Cohen have worked with the Office of Economic and Workforce Development "to support existing businesses, attract new businesses, and to fund physical and tenant improvements in an effort to increase foot traffic and better serve the surrounding community." He acknowledged that some nonprofits and city agencies, including the Human Services Agency, have been looking for office space along the corridor and said those organizations are competing with businesses for the same storefronts.

"I think the best solution to this challenge that you've articulated is to have our agencies ... work within the confines of a plan that the neighborhood has adopted," Lee said, adding that the city should identify spaces appropriate for business, agencies and nonprofits. He said the administration will "honor that commitment" and encouraged nonprofits and agencies to consider other nearby locations so Third Street can emphasize commercial storefronts.

Supervisor Cohen framed the question by noting the need to support both community-serving nonprofits and neighborhood-serving retail. She said her office has identified office space around the corridor suitable for nonprofits and city departments to expand so they do not displace street-level retail.

The exchange did not produce any formal board action; instead it recorded the mayor's position in response to a supervisor's question. Lee emphasized the continuation of Invest in Neighborhoods and the city's effort to master-lease single-room-occupancy units as part of broader housing and family reunification efforts referenced during his opening remarks.