Supervisor Ronan unveils ‘First Year Free’ pilot to waive startup permit fees for small storefronts

Supervisor Catherine Stefani Ronan (recorded in the transcript as Supervisor Ronan) introduced legislation on June 22 that would create a one‑year pilot program — “First Year Free” — to waive city registration, licensing and permitting fees for eligible new storefront small businesses.

Ronan said the pilot aims to address high upfront costs that prospective small business owners face when opening a storefront, listing as many as 200 local permits and licenses that can be required depending on the business type. Under the proposal, storefront businesses that are not formula retail and that estimate first‑year gross receipts of $2,000,000 or less would be eligible. The Treasurer‑Tax Collector would act as the entry point to screen applicants and reimburse departments for waived fees so permitting departments’ revenues are not immediately reduced.

Ronan said the one‑year pilot is estimated to cost about $20,000,000. The proposal includes a six‑month evaluation and report back to the Board of Supervisors to measure whether the program encourages occupancy of vacant storefronts, stimulates tax revenue, and creates jobs. The pilot would exclude formula retail and targets neighborhood commercial corridors.

Ronan and multiple supervisors asked to be added as co‑sponsors during the hearing; she said the mayor’s office and permitting departments had been consulted and thanked staff and commissioners for their assistance assembling the program details. Ronan also said she had been pushing for expedited implementation to align with the budget process.

Supporters on the dais described the proposal as part of a broader recovery package that includes vacancy taxes, permit streamlining and small business recovery measures. Several supervisors said the measure would complement commercial rent relief and make it easier for entrepreneurs without substantial capital to open businesses.

The item was introduced for consideration and discussion; no final vote on the ordinance was recorded in the transcript. The transcript records requests to add co‑sponsors and a pledge to work with the mayor’s office and budget chair for funding and implementation details.