Chan and Melgar Add Red Tape, Despite City Objections

The Facts

Supervisor Connie Chan's controversial ordinance has moved forward in the Board of Supervisors Land Use Committee, despite opposition from two key city bodies. The legislation would require businesses to obtain a "conditional use authorization" before replacing a "legacy business" that has operated for 30 or more years.

The measure advanced despite formal opposition from both the Planning Commission, which voted 4-2 to disapprove, and the Small Business Commission, which voted 3-1 not to recommend it. Supervisor Bilal Mahmood was the lone dissenting vote in committee, per The Chronicle.

The measure will now move to the full Board of Supervisors for consideration.

The Context

Chan's proposal runs directly counter to Mayor Lurie's PermitSF initiative, which aims to streamline business permitting. The Planning Department's analysis warned the ordinance "misapplies a land use tool to an economic stabilization challenge" and could discourage landlords from leasing to legacy businesses. The Small Business Commission cautioned that this process favors businesses with the resources to hire land-use attorneys over smaller enterprises.

In short, the city's own experts believe the legislation could backfire and harm the very businesses it's intended to help.

The GrowSF Take

Adding bureaucratic hurdles is not the way to support small businesses. When the city's own Planning and Small Business Commissions warn that a policy will create new barriers and favor wealthy players, Supervisors should listen. This legislation adds process and expense, undermining efforts to fill vacant storefronts and revitalize our economy.

We'll be watching closely as this bill moves to the full Board. GrowSF urges Supervisors to reject measures that complicate business operations and instead focus on policies that truly support small businesses without adding red tape.