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Commission approves permit for 1501 Folsom; new owner Ghazi Shami pledges neighborhood outreach and security plan
Summary
The Entertainment Commission approved a change-of-ownership and extended-hours permit for 1501 Folsom Street (formerly Kai Onze). Applicant Ghazi Shami described a security plan, outreach (182 letters), and plans to preserve venue history; commissioners urged continued neighbor coordination and set staff follow-up.
The San Francisco Entertainment Commission voted Oct. 6 to approve a place-of-entertainment change in ownership and an extended-hours premises permit for 1501 Folsom Street, the venue formerly known as Kai Onze.
Deputy Director Azevedo introduced the application and said the new owner, Ghazi Shami of Leiali LLC, plans to run the space as a nightclub and event space that will host DJs and live performances, use the rooftop patio with prerecorded ambient music, and follow existing rooftop conditions that prohibit live outdoor entertainment and require prerecorded music to end by midnight. "The new owner... will inherit these new conditions, and they are willing to comply," staff said.
Shami told commissioners he has decades of experience promoting and producing events, runs a record label and studio, and has engaged a security firm (4 Diamond Security) to provide a detailed security plan. He said staff and security expect about 16 guards between Thursday and Sunday and anticipate one guard per roughly 75 guests, with additional guards in VIP areas and on the roof. Shami also said he and staff mailed 182 outreach letters to tenants and building owners and personally spoke with nearby club owners, including Butter, Buzzworks, Halcyon and Audio.
Commissioners questioned Shami about operating experience running full food-and-beverage operations versus promoted events, how he would handle noise complaints in real time, whether he would add sound mitigation during renovations, and whether programming would reflect the site’s cultural history. Shami said he plans to add acoustical fabrics and commemorate the site’s history with memorabilia and plaques. He said he would document complaints, collect contact information, respond case-by-case, and coordinate with staff and the SFPD permit officer when needed.
After public comment (none), a motion to approve the permit with staff recommendations passed and the chair announced the permit had been approved. Commissioners encouraged ongoing engagement with neighbors and staff; the commission instructed the applicant to follow up with staff for next steps.
Next steps: The applicant was directed to coordinate with Entertainment Commission staff to finalize conditions and receive operational guidance before opening. The commission closed the item and moved to final comments and adjournment.
