Yesterday the SF Planning Commission considered Supervisor London Breed's proposal to expand Hayes Valley's restrictions on formula retail businesses. While the Commission didn't outright reject the proposed legislation, it didn't approve it, either.
Breed's proposal had two main components. One would be to expand the neighborhood's retail restrictions to include businesses with 11 or more stores worldwide. Currently the restrictions only apply to businesses with 11 U.S. locations. The second component would have banned shops that may not meet the formula retail definition themselves, but are a subsidiary or affiliate of such businesses. An example that is frequently brought up is Athleta, which is owned by Gap (although Athleta itself now has more than 11 U.S. locations). The Commission first heard from Breed aide Conor Johnston, who referred to the international/domestic distinction as a "doughnut hole" that Breed's legislation was intending to fix. "Why would it make a difference if a company has 11 locations in Seattle or 11 locations in Vancouver?" Johnston asked. "The company's resources, the rent it can pay, the diversity or lack thereof of products that it brings to the community, do not change simply because some of its stores are outside of the U.S." He made a similar point about the second piece of Breed's legislation, citing the new Hayes Street GANT Rugger as an example. "Large corporations are able to circumvent the will of the planning code simply by creating a new name, or buying a smaller retailer." The Planning Department has recommended that the Commission hold off on approving Breed's legislation. A staff member explained at yesterday's hearing that the Department would prefer some time to consider "a more comprehensive overhaul of the city's formula retail controls," not just Hayes Valley's. "[We want to avoid] a patchwork of different formula retails definitions around the city," he said. He also expressed concern that the Planning Department didn't have the expertise or the means to verify whether a shop was owned by or affiliated with a formula retail business. Several members of the public then spoke up about the legislation. While a couple of Hayes Valley business owners expressed support for it, others urged the Commission to take their time and study it more carefully. Then the Commissioners debated the proposal. Many said that the first part -- expanding the definition to include locations worldwide -- made sense. But many also expressed concern about the second part, saying that determining a shop's ownership would be "onerous," and merited more discussion. Additionally, they cited legislation proposed this week by Supervisor Eric Mar, which would expand the formula retail definition citywide. If passed, it would potentially make Breed's legislation unnecessary. In the end, the Commissioners voted 4 to 3 to continue the legislation indefinitely. It's not a disapproval, but it basically means the legislation can't return to the Commission in its current form. So, Breed will now likely consider the Commission's feedback and alter the legislation accordingly, or wait to see what happens with Mar's new proposal. We'll let you know what happens.
Breed's proposal had two main components. One would be to expand the neighborhood's retail restrictions to include businesses with 11 or more stores worldwide. Currently the restrictions only apply to businesses with 11 U.S. locations. The second component would have banned shops that may not meet the formula retail definition themselves, but are a subsidiary or affiliate of such businesses. An example that is frequently brought up is Athleta, which is owned by Gap (although Athleta itself now has more than 11 U.S. locations). The Commission first heard from Breed aide Conor Johnston, who referred to the international/domestic distinction as a "doughnut hole" that Breed's legislation was intending to fix. "Why would it make a difference if a company has 11 locations in Seattle or 11 locations in Vancouver?" Johnston asked. "The company's resources, the rent it can pay, the diversity or lack thereof of products that it brings to the community, do not change simply because some of its stores are outside of the U.S." He made a similar point about the second piece of Breed's legislation, citing the new Hayes Street GANT Rugger as an example. "Large corporations are able to circumvent the will of the planning code simply by creating a new name, or buying a smaller retailer." The Planning Department has recommended that the Commission hold off on approving Breed's legislation. A staff member explained at yesterday's hearing that the Department would prefer some time to consider "a more comprehensive overhaul of the city's formula retail controls," not just Hayes Valley's. "[We want to avoid] a patchwork of different formula retails definitions around the city," he said. He also expressed concern that the Planning Department didn't have the expertise or the means to verify whether a shop was owned by or affiliated with a formula retail business. Several members of the public then spoke up about the legislation. While a couple of Hayes Valley business owners expressed support for it, others urged the Commission to take their time and study it more carefully. Then the Commissioners debated the proposal. Many said that the first part -- expanding the definition to include locations worldwide -- made sense. But many also expressed concern about the second part, saying that determining a shop's ownership would be "onerous," and merited more discussion. Additionally, they cited legislation proposed this week by Supervisor Eric Mar, which would expand the formula retail definition citywide. If passed, it would potentially make Breed's legislation unnecessary. In the end, the Commissioners voted 4 to 3 to continue the legislation indefinitely. It's not a disapproval, but it basically means the legislation can't return to the Commission in its current form. So, Breed will now likely consider the Commission's feedback and alter the legislation accordingly, or wait to see what happens with Mar's new proposal. We'll let you know what happens.
