Commission opposes expansion of Tenderloin/SOMA late-night retail-hours pilot

The commission voted to oppose a Board of Supervisors proposal to expand and extend a pilot that would restrict retail food and tobacco businesses from serving the public between midnight and 5 a.m. (or between 2 a.m. and 5 a.m. for ABC-regulated locations) in a defined Tenderloin and South of Market area.

Brian Dahl, legislative aide to Supervisor Matt Dorsey, presented the ordinance as a time-limited, targeted pilot intended to reduce outdoor drug markets and late-night crowds that have driven street disorder. Dahl cited an earlier pilot and an independent academic study that, he said, showed a reduction in large gatherings. He also said police data reported a 13% reduction in late-night violent crime and an approximately 18% decline in calls for service in the original Tenderloin area.

Merchants and commissioners raised concerns about displacement of activity, equity impacts on immigrant- and minority-owned corner stores, alternatives to enforcement, and the adequacy of mitigation for businesses that rely on late-night sales. Vice President Cezunas and several commissioners argued mitigation should include meaningful financial or technical assistance and criticized what they described as cumulative policy harms to small merchants.

After deliberation, Commissioner Zazunas moved that the Small Business Commission formally oppose the ordinance; Commissioner Dickerson seconded. On roll call the commission recorded five votes in favor of opposing and two abstentions (Commissioner Herbert and President Huey). The motion passed with five ayes and two abstentions.

The speaker for the sponsor's office said the goal is to make the pilot unnecessary by developing long-term solutions and pledged merchant outreach and coordination with OEWD should the ordinance proceed. The commission asked staff to provide additional data on displacement and citation counts when available.