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Board advances ordinance tightening formula retail (first reading)
Summary
The San Francisco Board of Supervisors advanced an ordinance on first reading that expands the city's definition and controls for formula retail, increases notice and economic impact review thresholds and creates a stakeholder working group; the measure passed on the first reading after amendments.
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Supervisor Mar introduced an ordinance to amend the Planning Code to strengthen San Francisco's formula retail (chain store) controls and the Board of Supervisors passed the ordinance on first reading on Nov. 4, 2014.
The measure, as described by Supervisor Mar, expands the definition of formula retail to include chains with 11 or more outlets worldwide (rather than counting only U.S. locations), adds new retail categories (including some fitness chains and other previously excluded uses), requires the Planning Commission to consider economic impacts on nearby businesses for certain larger projects and extends notice requirements so neighborhoods receive an additional 10 days of notice before a Planning Commission hearing. Mar said the changes were based on a Planning Department study and what he called work with a broad coalition of neighborhood groups and small-business leaders.
"First of all I'd like to thank the broad coalition of neighborhood groups small business leaders," Supervisor Mar said during his remarks, thanking planning staff and outside consultants that participated in the drafting. He described the package as "striking a balance between having a stronger neighborhood voice ... and a balance of small independent stores" while keeping the 11-outlet threshold rather than raising it.
Supporters at the dais highlighted multiple amendments and compromises reached in committee. Supervisor Breed said she supported including international locations and examining subsidiaries; Supervisor Kim said she supported making permanent interim controls on Mid-Market Street. Supervisor Wiener moved a cleanup amendment prepared by Planning Department staff; the amendment was seconded and adopted without objection.
On a roll-call vote on the amended ordinance (item 10 as amended), the measure passed on the first reading with 11 ayes and no recorded no votes. The Board recorded the action as a first-reading passage; further committee review or subsequent readings may follow as required by the ordinance process.
Context: the ordinance amends the Planning Code and related zoning rules and was presented with an economic study by Strategic Economics and planning staff analysis. The measure also directs the sponsor's office to convene a working group with Planning Department staff and the City Attorney's office to examine issues related to subsidiaries and corporate structures that can complicate formula retail determinations.
What happens next: the ordinance passed on first reading and will return for any required subsequent readings and administrative processing under city procedures. The text indicates the City will also pilot or pursue a small-business priority processing stream to accelerate reviews for certain small local chains.
