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Board denies Hayes Valley bid to revoke Kit and Ace permits, finds Zoning Administrator did not abuse discretion
Summary
After hours of public testimony from neighborhood merchants and residents, the Board of Appeals denied the Hayes Valley Neighborhood Association—s appeal seeking reinstatement of a revocation of Kit and Ace permits for 371 Hayes St., finding the Zoning Administrator—s rescission of revocation was not an abuse of discretion (vote 3–1).
The San Francisco Board of Appeals on Aug. 28 denied an appeal by the Hayes Valley Neighborhood Association (HVNA) that sought to reinstate revocation of building permits for Kit and Ace—s planned store at 371 Hayes Street. The board found the Zoning Administrator did not abuse his discretion in rescinding a prior revocation.
HVNA President Lawrence Kronander told the board Kit and Ace met the Planning Code—s formula‑retail definition because of multiple domestic and international locations, standardized product and decor, and a trademark filing; he argued those factors should have led DBI and Planning to keep revocation in place. "Kit and Ace fits the general definition of formula retail in the Planning Code," Kronander said.
Kit and Ace CEO Daryl Kopke and counsel Caroline Guibert Chase countered that the operative date for counting locations is April 8, 2015 (the date certain permits were issued), and that under the 2014 Planning Code amendment only stores "in operation" or with local land‑use entitlements count toward the 11‑location threshold. Counsel presented sworn declarations and permit records the Planning Department had verified, concluding Kit and Ace had fewer than 11 qualifying locations on April 8.
Zoning Administrator Scott Sanchez testified he had initially requested revocation after reviewing materials HVNA provided, but that subsequent verification (including contacting other municipalities) and materials provided by the permit holder showed the company did not meet the numeric threshold on the operative date; he therefore rescinded the revocation. Sanchez added that Kit and Ace has since grown into a formula‑retail chain but that subsequent status does not retroactively make the April 8 permits invalid.
Dozens of Hayes Valley merchants and residents spoke in public comment, saying the company—s public statements, hiring and marketing plans and use of entitled retail locations show intent and practical ability to become a global chain and that allowing the store would undermine local character. Several merchants urged revocation to protect small businesses and neighborhood fabric.
After extended deliberation on the difficulty of verifying out‑of‑jurisdiction entitlements and the limits of regulating a company—s prospective intent, President Anne Lazarus moved to deny the appeal and uphold the Zoning Administrator—s rescission of revocation. The motion carried 3–1 (Commissioner Frank Fung: Aye; Vice President Daryl Honda: Nay; Commissioner Bobby Wilson: Aye).
The board—s decision leaves the permits in place as issued in April; enforcement and any future code triggers would proceed under existing rules.
