Planning Commission backs broad code changes to ease openings for small businesses, with carve-outs requested by Chinatown and others

On Sept. 7 the Planning Commission voted to approve a comprehensive planning code amendment intended to reduce regulatory barriers for small businesses and reactivate vacant commercial storefronts citywide. The ordinance — developed by Planning Department staff and the Office of Small Business — would expand flexible retail citywide, clarify that multiple uses can co-exist in one storefront, allow certain professional-service uses on the ground floor in additional districts, lift or ease restrictions on restaurants and bars in several commercial corridors, establish pathways to legalize long-standing outdoor patios, incorporate the ABC Type 90 music-venue license into code, and fold nighttime entertainment uses into community business priority processing (CB3P).

Katie Tang of the Office of Small Business framed the package as a response to pandemic-era dislocations and a tool to help businesses adapt to changing retail and consumer behavior. She described a temporary five-year impact-fee waiver for certain change-of-use projects, and said the ordinance would allow multiple uses to experiment without repeated permitting. Planning staff reported roughly 50 comment letters, mostly supportive, with objections from neighborhood groups including Chinatown Community Development Center, the Telegraph Hill Dwellers and the Pacific Avenue Neighborhood Association.

Chinatown CDC urged removal of the Chinatown mixed-use districts from the proposal and opposed a broader “professional services” definition that could permit coworking, consultants and non-customer-facing B2B offices in retail districts. Community commenters and commissioners pressed staff on noise and neighbor notification for legalized outdoor patios, the need for size limits or caps on office-like uses in neighborhood commercial districts, and whether CB3P expansions for nightlife belong citywide.

Planning staff recommended modifications, retaining separate retail and non-retail professional-service definitions as a staff-recommended modification while accepting three of four other suggested technical changes. Commissioners debated whether to merge the definitions, add size limits (suggestions ranged around 2,500 square feet as one option), and allow supervisors to pursue district-specific carve-outs. Commissioner Koppel moved to approve staff recommendations and forward commissioner comments; the motion passed unanimously with the commission capturing a substantial list of policy comments it asked staff to explore.

What’s next: The ordinance will move forward to the Board of Supervisors. Commissioners asked staff to study size limits, district-level caps, and targeted carve-outs (for example, Chinatown and Jackson Square) and to return with refinements during the legislative process. The commission also asked staff to pursue timely informational hearings so community stakeholders can review draft DA/SUD language where applicable.