Small Business Owners Support the Mayor’s “Family Zoning Plan”: More Housing Means More Business Opportunities

Recently, the discussion surrounding Mayor Daniel Lurie’s “Family Zoning Plan” for San Francisco has sparked intense debate. Opponents claim that the plan will force many small businesses to close, especially after the San Francisco Chronicle reported that some small business owners had signed a letter warning about the potential threats of the plan. However, upon closer examination, it becomes clear that these views do not represent the true stance of the majority of small business owners. In fact, many long-established small business owners, including some who initially signed the opposing letter, actually support the plan. Here’s why these small business owners back the mayor’s proposal.

The True Needs of Small Business Owners: More Customers

The main objective of the Mayor’s “Family Zoning Plan” is to increase housing supply by raising density along transportation and commercial corridors, allowing for the construction of more residential units. For small businesses, more housing means more potential customers. This is crucial for small businesses that are facing economic hardship. In post-pandemic San Francisco, many small businesses in the financial district and downtown have nearly collapsed due to the lack of enough customers.

For example, many small shops previously relied on office workers as their primary clientele, who would often shop at nearby stores after work. However, as more people opt for remote work, commercial activity in the downtown area has significantly decreased. Adding more housing, especially near business districts, can attract more residents and workers, which is undoubtedly good news for businesses.

Housing is Not Just About Customers, But Also Employees

For small business owners, the lack of customers is a problem, but an even bigger issue is attracting and retaining employees. Many low-wage workers, especially in the service industry, simply cannot afford to live in San Francisco. Over the past decade, many workers have been forced to move far away from the city to places like Antioch, Fremont, and even Sacramento, resulting in a significant labor shortage for many businesses.

Small business owners understand that if more affordable housing were available in San Francisco, their employees would be more likely to stay in the city, which would directly improve business stability and growth potential.

Concern About New Housing Replacing Small Businesses? The Actual Impact is Minimal

Some opponents worry that new housing developments will replace existing small businesses. However, this concern is exaggerated. According to the mayor’s plan, the land most likely to be developed for new housing includes abandoned gas stations, fire-damaged old buildings, and vacant parking lots—areas that have historically not been occupied by small businesses. Therefore, the actual number of small businesses affected is very limited. City planning department estimates show that only about 10 businesses a year could be displaced by new housing, a tiny fraction—just 0.01%—of all the businesses in the city.

Even in these rare cases, the mayor’s plan offers relocation assistance, permit fee reductions, and incentives for developers to bring well-established businesses and community-serving businesses into new buildings, minimizing the impact on these businesses.

Consequences of Not Passing the Family Zoning Plan

If San Francisco does not pass the plan, the state government may intervene and take control over the city’s development. This would mean that the city loses its flexibility, leading to a chaotic “build-anywhere” situation, which would be even worse for the survival and development of small businesses. The “Family Zoning Plan,” on the other hand, is carefully designed to balance housing development with small business protection, ensuring that the planning process is both reasonable and feasible. The state government has already made it clear that no rules or standards that could negatively affect financial viability or delay approvals should be added to the plan.

Small Business Owners Supporting the Plan

The two authors of this article, Sharky Laguana and Ben Bleiman, are both long-time small business owners involved in civic affairs. They emphasize that, as business owners who have been operating various small businesses in San Francisco for many years, they deeply understand the challenges faced by small business owners. Rather than worrying about restrictive zoning, they are more focused on how to increase their customer base and attract more employees who can afford to live in the city. This is precisely the benefit that the “Family Zoning Plan” can provide.

In summary, while some small business owners have expressed concerns about the Mayor’s “Family Zoning Plan,” the broader small business community actually supports the proposal. More housing means more customers and more potential employees, which provides more room for small businesses to thrive. The concerns raised by the opposition are mostly based on misunderstandings or exaggerated risks. What small business owners truly need is a zoning plan that provides affordable housing, rather than overly restrictive zoning policies.

By pushing forward this plan, San Francisco can not only achieve more balanced urban development but also meet the housing needs of residents while supporting the growth of small businesses. This represents a positive reform for the long-term development of the city and the revival of small businesses.