It's a Proposition J thang!

With the 2015 election less than a month away it's time to start reviewing ballot measures. One that is conceptually appealing is  Prop J/The Legacy Business Historic Preservation Fund which would provide financial grants to qualified legacy businesses and the property owners who lease space to them.

Skyrocketing rents in the City have not just affected the residential market you know - small local businesses have been impacted as well. Some cases in point:

• After more than a half-century North Beach's venerable Capp's Corner closed its doors last April as landlord and tenant could not agree on the rent renewal rate;
• the news is that 3rd Street's Dave's bar is going to close because the rent expected on a renewal is too high;
• the Mission's Elbo Room which originally opened in 1935 will probably follow suit (okay, maybe not the best example because the plans are to demolish the building and replace it with multi-unit residential above but it is related to skyrocketing real estate).

So what would qualify a business  to be considered "legacy"?

•  one that has operated in San Francisco for 30 or more years, and either was founded or currently has its headquarters in San Francisco;
•  one that has contributed to the neighborhood’s history or identity
• one that is committed to maintaining the physical features or traditions that define the business

And how much of a financial grant could be received?

•  Legacy Businesses could receive an annual grant of up to $500 per full-time equivalent employee in San Francisco.
• Building owners who lease space in San Francisco buildings to Legacy Businesses for terms of at least 10 years could receive an annual grant of up to $4.50 per square foot of leased space
• The City Controller says that the the average legacy business has 8 employees and occupies 3,400 square feet. Per Prop J, on an annual basis, the business would qualify for $4,000 and the landlord would qualify for $15,300.

And how much might it cost us taxpayers?

• The  City Controller opines that the cost would grow by $2.1 million to $3.7 million annually in the coming fiscal year ultimately reaching a cost of between $51 million and $94 million annually if all qualifying legacy businesses are enrolled in approximately 25 years.
• Some back-of-the-cocktail-napkin analysis: 
• The City's fiscal budget in 2015/16 is approximately $8.9 billion -  using the Controller's high end number ($3.7 million) we are talking four hundredths of one percent of the total budget
• And in 25 years? Guesstimating increases in the fiscal budget based on growth rates over the last five years and again using the Controller's high end number ($94 million) we are talking less than one half of one percent of the total budget.

Seems a small price to pay to help out those local businesses who through years of toil, weathering good times and bad, have contributed to the rich history of our City.