Legacy businesses earn protection

Longtime businesses in San Francisco will get a boost and gain protection from displacement after voters passed Proposition J on Tuesday.

Prop. J won with 57 percent of the vote, according to unofficial election results Tuesday.

Prop. J will create a fund for what are being called “legacy” businesses in order to help them stay in The City as costs increase and some longtime companies have been forced to find cheaper rents outside of town.

The City already has a registry of legacy businesses open to any business that has been in operation for 30 years or more and that is headquartered in San Francisco. To get on the list the mayor or a supervisor must nominate a business.

The new law creates a fund for businesses on the registry as well as for building owners who have rented to such businesses for a decade or more. The law would also redefine such businesses and nonprofits as having operated in The City for two decades or more and having contributed to the identity of their neighborhood while at risk of being forced out.

There are 7,500 businesses in San Francisco that meet the new definition defined by the proposed law.

Such businesses could get $500 grants annually for every full time employee in The City. Their landlords would also get a grant worth
$4.50 for every square foot of space rented.

The bill’s language states the new law will cost at first $1.2 million a year. Once expanded to all eligible businesses in 25 years it would cost $30 million.

But a controller report on the law says it could cost The City significantly more. The program would cost $3.7 million in fiscal 2015-16. Over the next 25 years the price tag is estimated to grow from a low of $52 million to $94 million if all such businesses register.

Still, the law will not force any future mayor or the Board of Supervisors to fund the program, instead putting the program’s funds into the the budget process.

The measure was put on the ballot by four supervisors: John Avalos, David Campos, Jane Kim and Eric Mar.

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Basketball (Shutterstock)
SI alum Begovich gets his moment, but Stanford falls on Senior Day

MAPLES PAVILION — Generally speaking, Stanford’s home finale on Saturday afternoon, a… Continue reading

U.S. Attorney David Anderson announces federal firearms charges against two men for their roles in a March 2019 shooting outside the Fillmore Heritage Center in a news conference alongside SFPD staff at the Phillip Burton Federal Building on Thursday, Jan. 9, 2020. (Kevin N. Hume/S.F. Examiner)
Departing U.S. attorney predicts corruption probe will continue

David Anderson shook up City Hall as top federal prosecutor

Board of Supervisors President Shamann Walton, a former school board member, has been asked to help secure an agreement between the school district and teacher’s union. <ins>(Kevin N. Hume/S.F. Examiner)</ins>
 <ins></ins>
Supervisor Walton tapped to mediate teacher contract talks

District and union at odds over hours in-person students should be in the classroom

California is set to receive supplies of the Johnson & Johnson vaccine, which is still under review by the U.S. Food and Drug Administration. (Courtesy photo)
California could receive 380K doses of new J&J COVID vaccine next week

California could receive 380,300 doses of the new Johnson & Johnson vaccine… Continue reading

Disability advocates protested outside the home of San Francisco Health Officer Tomas Aragon. (Courtesy Brooke Anderson)
Vaccine rollout plan for people with disabilities remains deeply flawed

On February 13, disability activists paid a visit to the house of… Continue reading

Most Read