The proposed ordinance aims to simplify the process for opening chain stores on Van Ness Avenue, San Francisco, by removing the Conditional Use Authorization (CUA) requirement in RC-4 and RC-3 zoning districts. Currently, these businesses need to obtain a CUA, which is time-consuming and restrictive.
Formula retail includes businesses with 11 or more locations worldwide sharing standardized elements. While such regulations were meant to protect local character and small businesses, there are concerns they hinder economic recovery, particularly in areas like Van Ness Avenue, which faces a high commercial vacancy rate of around 50%.
Van Ness Avenue, historically significant and economically vital, has struggled due to the COVID-19 pandemic and broader retail downturns. Simplifying requirements for chain retailers may help reduce vacancies and support economic revitalization.
Supporters of the change argue it will attract essential services like pharmacies and grocery stores, critical in areas lacking such amenities. The ordinance also seeks to address a loophole requiring new CUAs for formula retail spaces changing operators if the previous occupant did not have one.
The policy aligns with the City’s General Plan objectives and Planning Code priorities, aiming to boost commercial activity without adverse impacts on housing, traffic, landmarks, or open space.