If you're going to San Francisco

be sure to wear some flowers in your hair.. and if you are a Formula Retail business (in local parlance, a “chain store”) as defined by the San Francisco Planning Code intent upon opening a new outlet in any of the many Neighborhood Commercial Districts be prepared to: 

 

• wait 9 -12+ months as you wind your way though your way through the CUP (Conditional Use Permit) process after which you will know if you can open your store or not (this of course assumes you have even found a space that suits you - retail vacancies in San Francisco are in the low single digits);
• budget tens of thousands of dollars on local architect services, community outreach providers, expediters and lawyers who will shepherd you through the process;
• have a strategy (and budget) to demonstrate how your company will prove to be a good community member;
• and of course, have a knowledgeable commercial real estate broker who will help you understand what you should do vis-a-vis negotiating your lease agreement and  serve as an "orchestra conductor" of sorts to keep all the parties involved in sync with your time-line and strategy, 

After more than a year of economic impact study, focus groups, community meetings and public hearings, last week in a 5-2 vote the Planning Commission voted to approve a modified Planning Department proposal to amend the Section 703.3 of the San Francisco Planning Code. The next step towards adoption of code changes are a Land Use Committee hearing and a vote by the Board of Supervisors. Changes to the current code are a certainty and likely to be signed into law as early as September.

Expected Changes:

• at present a business is deemed to be Formula Retail if it has "11 or more outlets in the United States". All indications are that this will be re-defined as "19 or more outlets anywhere in the world";
•  the expansion of the definition of Formula Retail business-type categories to include personal/business services (e.g. fitness centers);
• more economic impact studies required for Large-Scale retail (i.e. over 50,000 sf);
• the inclusion of more turf which will become subject to the Formula Retail/CUP process;
• signage/facade regulations/review.

The arguments "for" and "against" more/less restrictions are many - and many on each side have validity in terms of doing the right thing for the City's character, the quality of life for those who live here and the economy. To name a few:  ensuring the uniqueness that has made San Francisco a "world-class" city; protecting local businesses; giving citizens access especially to "daily use" needs at more affordable prices; creating more jobs; keeping retail rents in check; not stifling the introduction of new international concepts into the States where San Francisco is a logical launch-pad.

While the rules are complicated, often ambiguous and certainly vexing I look at it this way - for better or worse San Francisco is a "city-state" - like a Monaco, Macao or Brunei in today's world - or a Venice, Pisa or Genoa in past days.  So if you are thinking of coming to San Francisco - you need to know how to play by its rules - or not play at all. Wearing flowers in your hair is optional.