City Extends Entertainment Zone to Outer Neighborhoods

| Tara Sullivan
neighborhood

On December 10th Mayor Breed and Supervisor Mandelman introduced BOS File No. 241197, an ordinance that would create the Cole Valley Entertainment Zone. Buoyed by the success of the Entertainment Zones that occurred downtown, this is an acknowledgment that there are other parts of San Francisco that have yet to recover from the pandemic-related downturn.

As a refresher, entertainment zones enable restaurants and bars in designated areas to sell alcoholic beverages to go for outdoor consumption during events and activations. The establishment of entertainment zones stems from the Mayor’s Roadmap to San Francisco’s Future, which has supported a series of entertainment initiatives designed to bolster Downtown’s economic recovery. Sanctioned under SB 76, authored by Senator Scott Wiener, entertainment zones are designed to support the sustainability of local bars and restaurants and boost neighborhood economic activity by permitting restaurants and bars to sell alcoholic beverages to go for outdoor consumption during special, permitted events.

So far, there have been three events (in two Entertainment Zone areas) that have taken advantage of this legislation: Oktoberfest on Front (Street) on September 20th and Nightmare on Front Street on October 31st, along with the recent Winter Wonderland Tree Lighting Ceremony on November 30th at Thrive City (Chase Center). All of these have been deemed a success, bringing in thousands of people and increasing sales by anywhere from 700-1,500%.

The proposed legislation makes a tweak to the definition of an “Entertainment Zone Event” by removing the requirement of an ABC license or permit to allow the sale and consumption of alcohol to be served outdoors. Moving forward, only local authorization is needed to hold an “Entertainment Zone Event,” with only licensed establishments that hold an ABC permit allowed to sell alcohol. This will greatly reduce the amount of paperwork needed to put on an Entertainment Zone Event.

Cole Valley is a small neighborhood district that spans three blocks from Frederick Street to Parnassus Avenue. Intimate in nature, it does feature several bars and restaurants, and the neighborhood has undertaken several street-specific events, like the Cole Valley Night Fair on December 5th. It is not a neighborhood that draws many nighttime patrons, largely due to its location and family-oriented population. However, it is located along a Muni line and sits between the Haight and Inner Sunset neighborhoods, so it is a good case study for this type of economic initiative. It is anticipated that the proposed entertainment zone will be effective as early as March 2025, allowing for nighttime and weekend events along Cole Street in the spring.

The entertainment zone program has so far proved to be a success in larger, more commercially-oriented areas. Cole Valley is an interesting choice for the first of this expanded concept, but if successful, can demonstrate how other neighborhoods in the city such as the Inner Sunset, which has held several night markets in 2024, can utilize the concept to help attract patrons during times that are otherwise pretty quiet. Cole Valley’s businesses all support the proposed Entertainment Zone and, if successful, will be great to see how this concept is utilized in other neighborhoods throughout San Francsico.

 

Authored by Reuben, Junius & Rose, LLP Partner, Tara Sullivan.

The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient. Readers should consult with legal counsel before relying on any of the information contained herein. Reuben, Junius & Rose, LLP is a full service real estate law firm. We specialize in land use, development and entitlement law. We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.

San Francisco Shared Spaces Program Permanent

| Sabrina Eshaghi
shared spaces

Mayor London Breed recently signed legislation that will make the Shared Spaces Program a permanent feature in San Francisco. The temporary Shared Spaces Program allowed more flexible use of sidewalks, streets, and other public spaces for neighborhood businesses and was implemented through a mayoral proclamation tied to the declaration of a state of emergency due to COVID-19. According to the Mayor’s Office, more than 2,100 curbside and sidewalk Shared Spaces permits have been issued by the City since June 2020. Given the success of the program, the Mayor proposed legislation to make the program permanent in March of this year. Due to the number of City agencies involved and the complex issues this legislation raises, it took months of debate and countless amendments to ultimately gain unanimous approval by the Board of Supervisors and the Mayor’s signature.

The permanent legislation will continue to allow the same types of shared spaces that have been permitted under the temporary program, including on sidewalks, curbside lanes, and roadways, but with an updated approval process and a new set of operating requirements that are meant to address some concerns with the existing program. The permits will be available for commercial and noncommercial activities, including retail uses, cultural events, arts activities, general recreation, and entertainment uses. Generally, the permits will allow the temporary and reversible installation of physical improvements.

Approval Process

All permits will be routed through the Planning Department to the appropriate agency with authority to approve the permit. Depending on the type of permit and the specific uses proposed, the agencies with jurisdiction over the permit will include the Department of Public Works, Interdepartmental Staff Committee on Traffic and Transportation (ISCOTT), Municipal Transportation Agency Board of Directors (SFMTA Board of Directors), Entertainment Commission, and/or Real Estate Division. Additional coordination or approval by other agencies may also be required. According to the Mayor’s Office, the City will require streamlined approval of the permits within 30 days of submittal of the application, in alignment with the requirements of Proposition H, which was passed by the voters in November 2020 (discussed in a previous update). The curbside and sidewalk permits will be effective for up to one year and can be renewed annually. Roadway permits will have a maximum initial term of two years and can be renewed for up to two years at a time. Any person can appeal the decision to approve or deny a Shared Spaces permit.

The permits will generally be subject to fees, except small businesses may be eligible for reduced fees in certain circumstances.

Conversion of Existing Permits

Given the significant number of existing Shared Spaces permits, the legislation allows existing Shared Spaces to continue operating based on the terms of the specific permit. Prior to the expiration of the existing permit, the permittee can apply to convert to a new Shared Spaces permit based on the requirements of the legislation.

Existing permitholders that apply for new curbside permits will be eligible for fee waivers and deferrals. However, the fee waiver and deferral will not apply to formula retail uses.

Enforcement

The 311 system will be utilized to receive complaints, route them to the appropriate agency, and provide complainants updates on the status of the complaint including how the issue was abated or why the complaint was closed. In addition, at least every other month, the City will be required to conduct rolling audits of Shared Spaces in commercial corridors to confirm compliance and take any necessary enforcement actions.

Accessibility

Accessibility was a major topic of discussion during the legislative process. Ultimately, the legislation requires each agency to provide regulations that account for disability and access needs. In addition, sidewalk permits will generally be required to provide an 8-foot wide unimpeded path of travel.

In terms of public accessibility, the legislation limits the number of restricted access events to eight single-day events per year. Parklets in curbside lanes or any other permit that exclusively allows private dining will be required to provide one public bench or another type of seating arrangement that will be accessible to non-patrons for every 20 feet of Shared Space. Although there was some discussion about leaving the parklets open after business hours, the final legislation allows permittees to secure curbside Shared Spaces from midnight to 7am.

Outreach and Notice Requirements

As part of the initial application, the legislation requires documentation of community outreach and support as well as documentation showing that all property owners of any building fronting a proposed sidewalk or curbside Shared Space have been notified of the application. The legislation also mandates a public notice and comment period following submittal of applications for sidewalk and curbside permits.

Annual Reporting

The Board of Supervisors included requirements for a number of annual reports regarding various issues related to the Shared Spaces Program, including:

  • Revocations of permits in order to comply with the City’s Vision Zero, Better Streets, and Transit First Policies, including for purposes of restoring transit lines, to maintain safe access to public rights of way for seniors and people with disabilities, and to facilitate pedestrian safety;
  • Opportunity sites for sidewalk extensions on blocks with many sidewalk or curbside Shared Spaces and commercial or mixed-use corridors with narrow sidewalks;
  • Impacts on small businesses without Shared Spaces permits, including businesses that rely on consumer vehicle loading and unloading, and recommendations for how to mitigate any negative impact of the Shared Spaces Program on those businesses; and
  • Impacts on street cleaning operations and recommendations for how to accommodate any decrease in such services.

We may continue to see the Shared Spaces Program evolve based on the recommendations and findings of these reports.

 

Authored by Reuben, Junius & Rose, LLP Attorney Sabrina Eshaghi.

The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient.  Readers should consult with legal counsel before relying on any of the information contained herein.  Reuben, Junius & Rose, LLP is a full service real estate law firm.  We specialize in land use, development and entitlement law.  We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.