Bay Area/ San Francisco/ Retail & Industry
Published on December 16, 2015
Sup. Wiener Extends Controls To Curb Castro Formula Retail 'Loopholes'Photo: Torbakhopper/Flickr

District 8 Supervisor Scott Wiener is continuing efforts to close loopholes which could allow formula retail businesses to circumvent the Castro's necessary approval process.

Wiener, along with the rest of the Board of Supervisors, yesterday approved a resolution for a six-month extension of interim zoning controls in the neighborhood. These controls require Conditional Use authorization for all formula retail, regardless of unique circumstances that the retailer may use to try to get around the requirement. Specifically, the extension targets retailers who might fiddle with a formula retail feature, such as a name, to get around the requirement.

According to a City Hall employee who preferred to remain anonymous, the zoning controls have been partially prompted by the 2014 attempt by Los Angeles-based nonprofit AIDS Healthcare Foundation (AHF) to open a pharmacy at 518 Castro St. The new pharmacy was planned as a relocation of the pharmacy that closed, along with Out of the Closet, at Church & Duboce in October 2014.

AHF has more than 30 pharmacies worldwide, which designates it as formula retail (defined by having 11 or more locations). As we noted way back in August of 2014, AHF attempted to open a Castro location under the name "Castro Pharmacy" without obtaining Conditional Use authorization. The zoning controls put a hold on the move and AHF subsequently sued the city, the Board of Supervisors, and specifically named Wiener for what it viewed as singling-out of the organization. "The city rammed through, at lightning speed, an interim zoning law specifically targeting AIDS Healthcare Foundation," AHF Chief of Operations Laura Boudreau said in earlier reports on the lawsuit. Both Wiener and City Attorney Dennis Herrera dismissed the suit as "baseless," with Wiener saying "Under AHF's approach, any chain store could come into San Francisco, tweak its name, and claim that it isn't formula retail."

A BAR article reported that neighborhood organizations, including the SF AIDS Foundation, also supported the interim controls. The article stated that some specific HIV/AIDS organizations "have fought with AHF over multiple HIV policy and funding issues."

The City Hall insider told us that there is a hearing scheduled for January in regards to AHF's attempts to win Conditional Use approval. The lawsuit, which has been on hold, will see movement once the hearing has an outcome.

We reached out to Wiener's office for comment on the extension, and the supervisor shared his thoughts:

"The extension of the interim controls will help ensure that the public process established by the voters is respected and followed by all formula retail operators in the Castro. I look forward to the hearing at the Planning Commission in early January."

Stay tuned for updates on the hearing and status of the lawsuit in 2016.