In a city marked by its unique blend of small, local businesses and high-rent retail spaces, Supervisor Myrna Melgar is advocating for a significant shift in how storefront sizes are regulated.
On July 17, the Planning Commission approved Melgar’s ordinance aimed at removing hard caps on storefront sizes in five neighborhood commercial corridors: West Portal, Castro, North Beach, Pacific Avenue, and Polk Street.
These corridors are currently the only neighborhood commercial districts in San Francisco that impose strict limits on storefront size, capping businesses at 4,000 square feet.
Businesses seeking larger spaces must undergo a cumbersome process, requiring them to petition their supervisor for carve-out legislation that grants exemptions from this cap.
Under Melgar’s proposed changes, businesses would only need to obtain conditional use authorization from the Planning Commission, a process deemed less restrictive and more straightforward.
Additionally, the ordinance would simplify the process for subdividing larger retail spaces into smaller storefronts, eliminating the need for a conditional use authorization from the commission for this action.
Melgar advocates that the new regulations will provide greater flexibility for businesses, especially those interested in taking on vacant commercial spaces.
However, this proposal has faced backlash from merchants’ groups within the very neighborhoods targeted by the changes.
Opponents argue that the removal of these caps could lead to an influx of larger retailers, which would, in turn, catalyze rent increases and displace the smaller businesses that characterize these neighborhoods.
Deidre Von Rock, president of the West Portal Merchants Association, expressed concern that the ordinance opens the door for wealthier tenants to enter the market, artificially driving up rents and threatening the existence of small shops.
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