Annie Gaus

The San Francisco Board of Supervisors voted on Tuesday to create a relief fund for commercial debt, though it’s not clear where the funding will come from.&nbsp;

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The San Francisco Board of Supervisors voted on Tuesday to create a relief fund for commercial debt, though it’s not clear where the funding will come from.&nbsp;

In a unanimous vote, the supervisors approved a plan that could force landlords and struggling small business owners to strike a deal on debt accrued during the pandemic. Eighteen months into the pandemic, total commercial debt may amount to more than $600 million according to a new estimate.&nbsp;

In a unanimous vote, the supervisors approved a plan that could force landlords and struggling small business owners to strike a deal on debt accrued during the pandemic. Eighteen months into the pandemic, total commercial debt may amount to more than $600 million according to a new estimate.&nbsp;

The relief plan, introduced by Supervisor Ahsha Safai, would create a <a href="https://sfstandard.com/imminent-crisis-s-f-moves-to-create-25m-fund-to-cover-small-businesses-back-rent/">pool of grant money</a> for landlords and business tenants who agree to renegotiate leases or strike some other agreement that would reduce the debt balance. Safai suggested an initial funding level of $25 million, with individual grants of up to $35,000 each. To actually add money to the fund, either the Mayor or the Board of Supervisors would need to introduce a supplemental budget ordinance.

The relief plan, introduced by Supervisor Ahsha Safai, would create a <a href="https://sfstandard.com/imminent-crisis-s-f-moves-to-create-25m-fund-to-cover-small-businesses-back-rent/">pool of grant money</a> for landlords and business tenants who agree to renegotiate leases or strike some other agreement that would reduce the debt balance. Safai suggested an initial funding level of $25 million, with individual grants of up to $35,000 each. To actually add money to the fund, either the Mayor or the Board of Supervisors would need to introduce a supplemental budget ordinance.

The funding would “compel landlords and small businesses to negotiate relief,” and could assist up to 1,000 businesses, said Safai on Tuesday.&nbsp;

The funding would “compel landlords and small businesses to negotiate relief,” and could assist up to 1,000 businesses, said Safai on Tuesday.&nbsp;

New estimates from the Budget &amp; Legislative analyst suggest that the total need well exceeds $25 million, and continues to climb as the pandemic drags on.&nbsp;

New estimates from the Budget &amp; Legislative analyst suggest that the total need well exceeds $25 million, and continues to climb as the pandemic drags on.&nbsp;

In a report, the analysts estimated that business tenants accrued between $15.6 and $29.1 million in unpaid rent per month this year, even as COVID restrictions eased. That brings the total estimated balance to as much as $637 million as of August 2021, a big jump since the last published estimate <a href="https://www.publiccommentsf.com/post/sf-business-tenants-owe-as-much-as-404m-in-unpaid-rent">of $404 million</a> in March.&nbsp;

In a report, the analysts estimated that business tenants accrued between $15.6 and $29.1 million in unpaid rent per month this year, even as COVID restrictions eased. That brings the total estimated balance to as much as $637 million as of August 2021, a big jump since the last published estimate <a href="https://www.publiccommentsf.com/post/sf-business-tenants-owe-as-much-as-404m-in-unpaid-rent">of $404 million</a> in March.&nbsp;

In an appearance before the Board of Supervisors on Tuesday, Mayor London Breed pointed to a patchwork of local efforts to help small businesses, including $63 million in grants and loans, fee waivers and newer initiatives like <a href="https://sfstandard.com/s-f-offers-small-businesses-relief-grants-for-vandalism-broken-windows/">vandalism reimbursements.</a> She did not immediately commit to providing further grants for rent relief, however.&nbsp;

In an appearance before the Board of Supervisors on Tuesday, Mayor London Breed pointed to a patchwork of local efforts to help small businesses, including $63 million in grants and loans, fee waivers and newer initiatives like <a href="https://sfstandard.com/s-f-offers-small-businesses-relief-grants-for-vandalism-broken-windows/">vandalism reimbursements.</a> She did not immediately commit to providing further grants for rent relief, however.&nbsp;

“We’re doing a lot, but at the end of the day we&#8217;re not going to be able to do everything,” she said, pointing to federal stimulus dollars and broader reform of the city’s business licensing processes <a href="https://sfstandard.com/san-francisco-small-business-growth-lags-despite-efforts-to-speed-approvals/">through Proposition H.</a>&nbsp;

“We’re doing a lot, but at the end of the day we're not going to be able to do everything,” she said, pointing to federal stimulus dollars and broader reform of the city’s business licensing processes <a href="https://sfstandard.com/san-francisco-small-business-growth-lags-despite-efforts-to-speed-approvals/">through Proposition H.</a>&nbsp;

“We’re doing a lot, but at the end of the day we&#8217;re not going to be able to do everything,” she said, pointing to federal stimulus dollars and broader reform of the city’s business licensing processes <a href="https://sfstandard.com/san-francisco-small-business-growth-lags-despite-efforts-to-speed-approvals/">through Proposition H.</a>&nbsp;

In the meantime, commercial tenants face a cliff at the end of this month, with eviction moratoriums set to expire on Sept. 31.&nbsp;

In the meantime, commercial tenants face a cliff at the end of this month, with eviction moratoriums set to expire on Sept. 31.&nbsp;

Last week, the Board of Supervisors voted to expand a forbearance period during which landlords cannot impose additional penalties on unpaid rent. Business tenants also cannot be immediately evicted as long as they have paid 25% of their back rent.&nbsp;

Last week, the Board of Supervisors voted to expand a forbearance period during which landlords cannot impose additional penalties on unpaid rent. Business tenants also cannot be immediately evicted as long as they have paid 25% of their back rent.&nbsp;

“We will continue our conversations with the Mayor’s Office and we believe they should be fruitful,” said Safai.

“We will continue our conversations with the Mayor’s Office and we believe they should be fruitful,” said Safai.

Supervisors approve commercial rent relief fund as debts climb past $600M

With new COVID cases waning, San Francisco is reconsidering the mask guidelines put in place in August as part of a regional effort to stamp out the Delta variant.&nbsp;

With new COVID cases waning, San Francisco is reconsidering the mask guidelines put in place in August as part of a regional effort to stamp out the Delta variant.&nbsp;

New COVID cases fell to 76 per day as of Sept. 26, the most recent daily average available and the lowest rate since mid-July. San Francisco’s Public Health Department is looking at options for easing the city’s mask mandate, “beginning with settings where there is lower risk, low contact rates, and where people are fully vaccinated,” said a spokesperson.&nbsp;

New COVID cases fell to 76 per day as of Sept. 26, the most recent daily average available and the lowest rate since mid-July. San Francisco’s Public Health Department is looking at options for easing the city’s mask mandate, “beginning with settings where there is lower risk, low contact rates, and where people are fully vaccinated,” said a spokesperson.&nbsp;

Merchants in the San Francisco’s Financial District say the strict city guidelines make for a dismal business outlook, noting a <a href="https://sfstandard.com/san-francisco-bay-area-counties-reinstate-indoor-mask-mandates-for-all-residents/">persistent absence of office workers</a>. San Francisco’s office occupancy is the lowest of any metro area, according to the building access firm Kastle Systems.

Merchants in the San Francisco’s Financial District say the strict city guidelines make for a dismal business outlook, noting a <a href="https://sfstandard.com/san-francisco-bay-area-counties-reinstate-indoor-mask-mandates-for-all-residents/">persistent absence of office workers</a>. San Francisco’s office occupancy is the lowest of any metro area, according to the building access firm Kastle Systems.

San Francisco and other Bay Area counties, where vaccination rates are high, have generally issued health orders in unison since the onset of the pandemic. None, however, have set a specific target yet for when the mandate might be lifted—and neighboring counties in Northern California appear to be setting their own paths for a possible easing of mandates. 

San Francisco and other Bay Area counties, where vaccination rates are high, have generally issued health orders in unison since the onset of the pandemic. None, however, have set a specific target yet for when the mandate might be lifted—and neighboring counties in Northern California appear to be setting their own paths for a possible easing of mandates.

Last week, Santa Cruz county lifted its mask mandate shortly after being placed in the CDC’s “moderate” transmission category, defined as between 15 and 50 new cases per 100,000 residents over the past week and a positivity rate of 5% to 8%.&nbsp;

Last week, Santa Cruz county lifted its mask mandate shortly after being placed in the CDC’s “moderate” transmission category, defined as between 15 and 50 new cases per 100,000 residents over the past week and a positivity rate of 5% to 8%.&nbsp;

San Francisco’s positivity rate is hovering at less than 2%, with about 10 new cases per day per 100,000 residents, or roughly 70 per week. That places San Francisco in the CDC’s “substantial” transmission category, though public health officials expect a continued downward trend in the coming weeks.

San Francisco’s positivity rate is hovering at less than 2%, with about 10 new cases per day per 100,000 residents, or roughly 70 per week. That places San Francisco in the CDC’s “substantial” transmission category, though public health officials expect a continued downward trend in the coming weeks.

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In Sacramento county, health officials told reporters last week that the county may lift its mask mandate when its seven-day case average drops to five cases per 100,000 people per day. Health officers in neighboring Yolo county set a threshold of two cases per 100,000 to scrap that county’s mask mandate.&nbsp;

In Sacramento county, health officials told reporters last week that the county may lift its mask mandate when its seven-day case average drops to five cases per 100,000 people per day. Health officers in neighboring Yolo county set a threshold of two cases per 100,000 to scrap that county’s mask mandate.&nbsp;

Questions over the viability of local mask mandates came to a head when Mayor London Breed was filmed maskless at the Black Cat nightclub and later defended herself by calling the masking requirement for bar and restaurant patrons not “realistic.”

Questions over the viability of local mask mandates came to a head when Mayor London Breed was filmed maskless at the Black Cat nightclub and later defended herself by calling the masking requirement for bar and restaurant patrons not “realistic.”

Under California’s emergency health orders, however, the authority to change the rules lies with the city health department, not Breed.

Under California’s emergency health orders, however, the authority to change the rules lies with the city health department, not Breed.

Eight Bay Area counties reinstated the current mask mandate on Aug. 2 when public health officers <a href="https://sfstandard.com/san-francisco-bay-area-counties-reinstate-indoor-mask-mandates-for-all-residents/">issued a joint order</a> requiring masks in indoor settings regardless of vaccination status. The mandate applies to office workers, as well as bar and restaurant patrons who aren’t actively eating or drinking. San Francisco’s health order generally leaves it up to businesses to ensure patrons or employees are complying with the mandates.&nbsp;

Eight Bay Area counties reinstated the current mask mandate on Aug. 2 when public health officers <a href="https://sfstandard.com/san-francisco-bay-area-counties-reinstate-indoor-mask-mandates-for-all-residents/">issued a joint order</a> requiring masks in indoor settings regardless of vaccination status. The mandate applies to office workers, as well as bar and restaurant patrons who aren’t actively eating or drinking. San Francisco’s health order generally leaves it up to businesses to ensure patrons or employees are complying with the mandates.&nbsp;

“While our masking requirements remain in effect, we continue to monitor the data and discussions are ongoing with our regional and state partners on next steps,” said a DPH spokesperson. “As it has been the case since the outset of the pandemic, we will be guided by science and, to the extent possible, will take a regional approach on virus mitigation strategies.”

“While our masking requirements remain in effect, we continue to monitor the data and discussions are ongoing with our regional and state partners on next steps,” said a DPH spokesperson. “As it has been the case since the outset of the pandemic, we will be guided by science and, to the extent possible, will take a regional approach on virus mitigation strategies.”

San Francisco reconsiders indoor mask mandates

Kevin Truong

Joe Donohue was working his regular dinner shift as manager of Mission District Mexican restaurant Gracias Madre last month when one of his staffers alerted him to a commotion outside.

Joe Donohue was working his regular dinner shift as manager of Mission District Mexican restaurant Gracias Madre last month when one of his staffers alerted him to a commotion outside.

He watched in shock as<a href="https://twitter.com/BettyKPIX/status/1490546526719905793?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1490546526719905793%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fsfist.com%2F2022%2F02%2F07%2Fnow-we-have-a-graffiti-flash-mob-as-more-than-100-taggers-coated-mission-and-8th-streets-friday-night%2F"> dozens of people</a> in a flash-mob-style group tagged up the neighboring building with cans of spray paint, recording their activities with cell phones and flipping off security cameras meant to deter vandalism.&nbsp;

He watched in shock as<a href="https://twitter.com/BettyKPIX/status/1490546526719905793?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1490546526719905793%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fsfist.com%2F2022%2F02%2F07%2Fnow-we-have-a-graffiti-flash-mob-as-more-than-100-taggers-coated-mission-and-8th-streets-friday-night%2F"> dozens of people</a> in a flash-mob-style group tagged up the neighboring building with cans of spray paint, recording their activities with cell phones and flipping off security cameras meant to deter vandalism.&nbsp;

“I mean, I’ve seen a lot of stuff in my day, but this was on another level,” Donohue said, alluding to his restaurant’s own periodic struggles with graffiti on the storefront and parklet space.

“I mean, I’ve seen a lot of stuff in my day, but this was on another level,” Donohue said, alluding to his restaurant’s own periodic struggles with graffiti on the storefront and parklet space.

The incident is an extreme example of what many business owners and city leaders say is a worsening issue in San Francisco, and many are now calling for a new approach to dealing with graffiti and vandalism.&nbsp;

The incident is an extreme example of what many business owners and city leaders say is a worsening issue in San Francisco, and many are now calling for a new approach to dealing with graffiti and vandalism.&nbsp;

Supervisor Myrna Melgar announced at last week’s Board of Supervisors meeting that she is working with the city attorney to draft legislation that would create a two-year graffiti abatement pilot program targeting the city’s major commercial corridors.&nbsp;

Supervisor Myrna Melgar announced at last week’s Board of Supervisors meeting that she is working with the city attorney to draft legislation that would create a two-year graffiti abatement pilot program targeting the city’s major commercial corridors.&nbsp;

“I think we can all agree that vandalism has become much more visible in San Francisco. In every neighborhood, residents are fed up,” Melgar said at the meeting. “In my own neighborhood, visitors have taken it upon themselves to walk around with paint buckets because it has gotten so out of hand.”

“I think we can all agree that vandalism has become much more visible in San Francisco. In every neighborhood, residents are fed up,” Melgar said at the meeting. “In my own neighborhood, visitors have taken it upon themselves to walk around with paint buckets because it has gotten so out of hand.”

The initiative, which has the support of Mayor London Breed, would allow businesses to opt-in to a free program managed by the Department of Public Works (DPW) to clean up graffiti on private property. Melgar said she plans to work with the Laborers Local 261 union to staff up the program. The hope is to launch the pilot by the end of June after going through the legislative process.&nbsp;&nbsp;

The initiative, which has the support of Mayor London Breed, would allow businesses to opt-in to a free program managed by the Department of Public Works (DPW) to clean up graffiti on private property. Melgar said she plans to work with the Laborers Local 261 union to staff up the program. The hope is to launch the pilot by the end of June after going through the legislative process.&nbsp;&nbsp;

Melgar said that the &#8220;huge rise&#8221; in graffiti prompted her to introduce the measure as well as the overall effort to make the city a more welcoming place for both residents and tourists as it recovers from the pandemic.

Melgar said that the "huge rise" in graffiti prompted her to introduce the measure as well as the overall effort to make the city a more welcoming place for both residents and tourists as it recovers from the pandemic.

Melgar said that the &#8220;huge rise&#8221; in graffiti prompted her to introduce the measure as well as the overall effort to make the city a more welcoming place for both residents and tourists as it recovers from the pandemic.

&#8220;If our commercial corridors are not looking good. If they&#8217;re not hospitable and if people are not feeling safe, that affects our bottom line as a city,&#8221; Melgar said in an interview.

"If our commercial corridors are not looking good. If they're not hospitable and if people are not feeling safe, that affects our bottom line as a city," Melgar said in an interview.

&#8220;If our commercial corridors are not looking good. If they&#8217;re not hospitable and if people are not feeling safe, that affects our bottom line as a city,&#8221; Melgar said in an interview.

DPW has submitted a budget initiative that would add additional funding for labor, supplies and equipment to remove graffiti on private property. Still, it’s an open question whether those resources will be funded through the normal budget process.&nbsp;

DPW has submitted a budget initiative that would add additional funding for labor, supplies and equipment to remove graffiti on private property. Still, it’s an open question whether those resources will be funded through the normal budget process.&nbsp;

“We certainly understand the desire to relieve private property owners of the burden to remove graffiti,” DPW spokesperson Rachel Gordon wrote in an email. “Public Works will be able and willing to take on this added work, as long as we have the adequate resources to deliver.”

“We certainly understand the desire to relieve private property owners of the burden to remove graffiti,” DPW spokesperson Rachel Gordon wrote in an email. “Public Works will be able and willing to take on this added work, as long as we have the adequate resources to deliver.”

She added, “At the same time, we would like to see graffiti vandals held to account for the crimes they commit, whether that means paying fines, providing restitution or performing community service to help undo the harm they did in blighting our neighborhoods.”

She added, “At the same time, we would like to see graffiti vandals held to account for the crimes they commit, whether that means paying fines, providing restitution or performing community service to help undo the harm they did in blighting our neighborhoods.”

After a pandemic-era pause, city officials have moved to resume fines and violation notices to property owners who fail to clean up graffiti on their property. The Public Safety and Neighborhood Services Committee signed off on the proposal, moving it with amendments to the Board of Supervisors that will require DPW to notify local community benefits districts of violations and provide updates to city officials.

After a pandemic-era pause, city officials have moved to resume fines and violation notices to property owners who fail to clean up graffiti on their property. The Public Safety and Neighborhood Services Committee signed off on the proposal, moving it with amendments to the Board of Supervisors that will require DPW to notify local community benefits districts of violations and provide updates to city officials.

Roughly 11,000 cases of graffiti have occurred on private property in the city during the pandemic, but property owners were not given notices or enforcement actions because of the pause, according to DPW. Over that same time, the department has worked to remove some 29,000 instances of graffiti on public structures.&nbsp;

Roughly 11,000 cases of graffiti have occurred on private property in the city during the pandemic, but property owners were not given notices or enforcement actions because of the pause, according to DPW. Over that same time, the department has worked to remove some 29,000 instances of graffiti on public structures.&nbsp;

Melgar said the new pilot program and penalties for violation can work together in a &#8220;carrot and stick&#8221; fashion.

Melgar said the new pilot program and penalties for violation can work together in a "carrot and stick" fashion.

Melgar said the new pilot program and penalties for violation can work together in a &#8220;carrot and stick&#8221; fashion.

&#8220;This is a carrot we can hand out for a couple of years to help our small businesses as they continue to recover,&#8221; Melgar said, adding that there&#8217;s a potential for the program to become permanent if the pilot bears fruit.

"This is a carrot we can hand out for a couple of years to help our small businesses as they continue to recover," Melgar said, adding that there's a potential for the program to become permanent if the pilot bears fruit.

&#8220;This is a carrot we can hand out for a couple of years to help our small businesses as they continue to recover,&#8221; Melgar said, adding that there&#8217;s a potential for the program to become permanent if the pilot bears fruit.

While notices of violations and fines for failing to clean up graffiti are meant to be directed at property owners, lease terms often mean small business tenants are responsible for cleanup and potential punishment, said Sharky Laguana, president of the city’s Small Business Commission.

While notices of violations and fines for failing to clean up graffiti are meant to be directed at property owners, lease terms often mean small business tenants are responsible for cleanup and potential punishment, said Sharky Laguana, president of the city’s Small Business Commission.

He added that San Francisco stands apart from cities like<a href="https://edc.nyc/program/graffiti-free-nyc"> New York</a>,<a href="https://codelibrary.amlegal.com/codes/boston/latest/boston_ma/0-0-0-4691"> Boston</a> and<a href="http://laocb.org/programs/graffiti-abatement/"> Los Angeles</a>, which each operate programs to abate graffiti on private businesses.

He added that San Francisco stands apart from cities like<a href="https://edc.nyc/program/graffiti-free-nyc"> New York</a>,<a href="https://codelibrary.amlegal.com/codes/boston/latest/boston_ma/0-0-0-4691"> Boston</a> and<a href="http://laocb.org/programs/graffiti-abatement/"> Los Angeles</a>, which each operate programs to abate graffiti on private businesses.

&#8220;I’d argue that instead of having 50,000 points of accountability it would be more efficient to have a single point of accountability, which is that the city should simply take care of it,” Laguana said.

"I’d argue that instead of having 50,000 points of accountability it would be more efficient to have a single point of accountability, which is that the city should simply take care of it,” Laguana said.

&#8220;I’d argue that instead of having 50,000 points of accountability it would be more efficient to have a single point of accountability, which is that the city should simply take care of it,” Laguana said.

The disconnect has led to instances where<a href="https://sfstandard.com/city-hall/to-help-streets-sparkle-s-f-looks-to-revamped-tech-for-cleanup-crews/"> city crews will clean graffiti</a> on public property while leaving adjacent storefronts untouched.

The disconnect has led to instances where<a href="https://sfstandard.com/city-hall/to-help-streets-sparkle-s-f-looks-to-revamped-tech-for-cleanup-crews/"> city crews will clean graffiti</a> on public property while leaving adjacent storefronts untouched.

“My problem is that when I call the city to clean up the public streets near the business, they fail to do it—but at the same time, they’ll give me a fee for not cleaning my own business hit with vandalism,” said Donohue, manager of Gracias Madre. “It feels like you’re adding more fees over something you have no real control over.”

“My problem is that when I call the city to clean up the public streets near the business, they fail to do it—but at the same time, they’ll give me a fee for not cleaning my own business hit with vandalism,” said Donohue, manager of Gracias Madre. “It feels like you’re adding more fees over something you have no real control over.”

Supervisor Aaron Peskin, who is spearheading efforts to restart graffiti abatement enforcement, said the goal isn’t to be punitive and gather revenue. He noted only around 3% of those hit with violation notices apply for a hardship exemption.&nbsp;&nbsp;

Supervisor Aaron Peskin, who is spearheading efforts to restart graffiti abatement enforcement, said the goal isn’t to be punitive and gather revenue. He noted only around 3% of those hit with violation notices apply for a hardship exemption.&nbsp;&nbsp;

“When people get a notice, generally within a month’s time, somebody goes out there and cleans up the graffiti. That notice has proven to be quite effective,” Peskin said. He added that most graffiti violations are on vacant or abandoned properties or those with out-of-town owners.&nbsp;

“When people get a notice, generally within a month’s time, somebody goes out there and cleans up the graffiti. That notice has proven to be quite effective,” Peskin said. He added that most graffiti violations are on vacant or abandoned properties or those with out-of-town owners.&nbsp;

Laguana said most responsible business owners will hurry to clean up their property regardless of enforcement because of vandalism’s potential impact on business. However, he argued, if the ultimate goal is effective and speedy cleanup of graffiti, the current system just doesn’t make sense.&nbsp;&nbsp;

Laguana said most responsible business owners will hurry to clean up their property regardless of enforcement because of vandalism’s potential impact on business. However, he argued, if the ultimate goal is effective and speedy cleanup of graffiti, the current system just doesn’t make sense.&nbsp;&nbsp;

“In cases where a fine is instituted, the graffiti is not being abated for weeks,” Laguana said. “But if we had just sent a paint crew out there, it would already be over and done with.”

“In cases where a fine is instituted, the graffiti is not being abated for weeks,” Laguana said. “But if we had just sent a paint crew out there, it would already be over and done with.”

With graffiti penalties on the horizon, SF business owners could soon have a new weapon against tagging

Sarah Holtz

Just a few blocks from San Francisco City Hall, the aroma of an international feast filled <a href="https://sfstandard.com/business/la-cocina-women-led-food-hall/">La Cocina’s Municipal Marketplace</a> on a sunny spring afternoon as a team of chefs plated dishes from Algeria, El Salvador, Mexico, Nepal and the Deep South.&nbsp;

Just a few blocks from San Francisco City Hall, the aroma of an international feast filled <a href="https://sfstandard.com/business/la-cocina-women-led-food-hall/">La Cocina’s Municipal Marketplace</a> on a sunny spring afternoon as a team of chefs plated dishes from Algeria, El Salvador, Mexico, Nepal and the Deep South.&nbsp;

Judging by the delicious food alone, all was going according to plan at the women-led marketplace, which was established at great expense with taxpayer money and private donations in San Francisco’s struggling Tenderloin neighborhood.

Judging by the delicious food alone, all was going according to plan at the women-led marketplace, which was established at great expense with taxpayer money and private donations in San Francisco’s struggling Tenderloin neighborhood.

Back in 2018, when planning began for the Municipal Marketplace at Hyde Street and Golden Gate Avenue, it inspired glowing write-ups in high-profile media outlets and lofty statements from local politicians. The project would not only bring affordable global cuisine to a neighborhood beset by poverty, drug use and violence, proponents predicted, but it would also serve as a hub for <a href="https://lacocinasf.org" target="_blank" rel="noreferrer noopener">La Cocina</a>, an 18-year-old nonprofit culinary incubator program that supports BIPOC and immigrant chefs working to open their own brick-and-mortar businesses in the Bay Area.&nbsp;

Back in 2018, when planning began for the Municipal Marketplace at Hyde Street and Golden Gate Avenue, it inspired glowing write-ups in high-profile media outlets and lofty statements from local politicians. The project would not only bring affordable global cuisine to a neighborhood beset by poverty, drug use and violence, proponents predicted, but it would also serve as a hub for <a href="https://lacocinasf.org" target="_blank" rel="noreferrer noopener">La Cocina</a>, an 18-year-old nonprofit culinary incubator program that supports BIPOC and immigrant chefs working to open their own brick-and-mortar businesses in the Bay Area.&nbsp;

But these days, the dining hall and its colorful parklet are often more than half empty. On a recent Wednesday visit, the open-air seating on Golden Gate Avenue was occupied by four idle smokers rather than a crowd of diners. A pair of security guards shuffled between the entryway and the sidewalk.

But these days, the dining hall and its colorful parklet are often more than half empty. On a recent Wednesday visit, the open-air seating on Golden Gate Avenue was occupied by four idle smokers rather than a crowd of diners. A pair of security guards shuffled between the entryway and the sidewalk.

People eat lunch in La Cocina's Municipal Marketplace in San Francisco’s Tenderloin neighborhood on April 10, 2023.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED01_LaCocina033023-2500x1987.jpg" alt="" class="wp-image-154317"/><figcaption class="wp-element-caption">La Cocina Municipal Marketplace&#8217;s occupants have noticed a pattern of decreased foot traffic in the afternoon and evening, possibly due to safety concerns about its location. | Sarah Holtz/The Standard</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED01_LaCocina033023-2500x1987.jpg" alt="" class="wp-image-154317"/><figcaption class="wp-element-caption">La Cocina Municipal Marketplace's occupants have noticed a pattern of decreased foot traffic in the afternoon and evening, possibly due to safety concerns about its location. | Sarah Holtz/The Standard</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED01_LaCocina033023-2500x1987.jpg" alt="" class="wp-image-154317"/><figcaption class="wp-element-caption">La Cocina Municipal Marketplace&#8217;s occupants have noticed a pattern of decreased foot traffic in the afternoon and evening, possibly due to safety concerns about its location. | Sarah Holtz/The Standard</figcaption></figure>

With its vividly painted exterior and remarkable culinary offerings, the marketplace appears to be a positive presence in a building that formerly was a defunct post office. Yet, the lasting impacts of the pandemic, a looming recession and the spiraling fentanyl crisis have continued to plague the Tenderloin.

With its vividly painted exterior and remarkable culinary offerings, the marketplace appears to be a positive presence in a building that formerly was a defunct post office. Yet, the lasting impacts of the pandemic, a looming recession and the spiraling fentanyl crisis have continued to plague the Tenderloin.

Many of the chefs, baristas and other service workers who earn a living at the food hall say they feel increasingly overwhelmed by the pressure of generating business in the economically depressed neighborhood and the human suffering they regularly encounter on the job.

Many of the chefs, baristas and other service workers who earn a living at the food hall say they feel increasingly overwhelmed by the pressure of generating business in the economically depressed neighborhood and the human suffering they regularly encounter on the job.

Mounir Bahloul and his wife, Wafa, operate Kayma Eatery, an Algerian food stall in the marketplace. Though Bahloul said he has a good working relationship with La Cocina, he’s frustrated by how slow business has been.

Mounir Bahloul and his wife, Wafa, operate Kayma Eatery, an Algerian food stall in the marketplace. Though Bahloul said he has a good working relationship with La Cocina, he’s frustrated by how slow business has been.

“No one is making it at the marketplace,” Bahloul said. “The traffic is not there.”&nbsp;

“No one is making it at the marketplace,” Bahloul said. “The traffic is not there.”&nbsp;

Dilsa Lugo, Owner and Chef of Los Cilantros at La Cocina Marketplace. | The Standard

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED02_NEW_LaCocina033023-2500x1638.jpg" alt="" class="wp-image-154493"/><figcaption class="wp-element-caption">Dilsa Lugo, owner and chef of Los Cilantros at La Cocina&#8217;s Municipal Marketplace | Jesse Rogala/The Standard</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED02_NEW_LaCocina033023-2500x1638.jpg" alt="" class="wp-image-154493"/><figcaption class="wp-element-caption">Dilsa Lugo, owner and chef of Los Cilantros at La Cocina's Municipal Marketplace | Jesse Rogala/The Standard</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED02_NEW_LaCocina033023-2500x1638.jpg" alt="" class="wp-image-154493"/><figcaption class="wp-element-caption">Dilsa Lugo, owner and chef of Los Cilantros at La Cocina&#8217;s Municipal Marketplace | Jesse Rogala/The Standard</figcaption></figure>

<h2 class="wp-block-heading" id="h-activation-gone-awry">Activation Gone Awry</h2>

core/heading

<h2 id="h-activation-gone-awry">Activation Gone Awry</h2>

La Cocina&#8217;s Municipal Marketplace was made possible by $2.2 million from the city, $750,000 from the U.S. Department of Health and Human Services and more than $2 million from philanthropic foundations and individual donations. When it was first developed, the 7,000-square-foot food hall attracted not only local attention but also coverage in national outlets like <a href="https://www.forbes.com/sites/chelseadavis/2022/03/23/the-entrepreneurs-of-la-cocinas-municipal-marketplace-the-countrys-first-ever-women-led-food-hall-in-san-francisco/?sh=787ceff41b12" target="_blank" rel="noreferrer noopener">Forbes</a>.

La Cocina's Municipal Marketplace was made possible by $2.2 million from the city, $750,000 from the U.S. Department of Health and Human Services and more than $2 million from philanthropic foundations and individual donations. When it was first developed, the 7,000-square-foot food hall attracted not only local attention but also coverage in national outlets like <a href="https://www.forbes.com/sites/chelseadavis/2022/03/23/the-entrepreneurs-of-la-cocinas-municipal-marketplace-the-countrys-first-ever-women-led-food-hall-in-san-francisco/?sh=787ceff41b12" target="_blank" rel="noreferrer noopener">Forbes</a>.

La Cocina&#8217;s Municipal Marketplace was made possible by $2.2 million from the city, $750,000 from the U.S. Department of Health and Human Services and more than $2 million from philanthropic foundations and individual donations. When it was first developed, the 7,000-square-foot food hall attracted not only local attention but also coverage in national outlets like <a href="https://www.forbes.com/sites/chelseadavis/2022/03/23/the-entrepreneurs-of-la-cocinas-municipal-marketplace-the-countrys-first-ever-women-led-food-hall-in-san-francisco/?sh=787ceff41b12" target="_blank" rel="noreferrer noopener">Forbes</a>.

The marketplace’s champions—including Mayor London Breed, who praised the food hall as a “first-of-its-kind initiative”—predicted it would draw lunch and dinner crowds from nearby office towers and Civic Center. That foot traffic would, in turn, have positive trickle-down effects on the neighborhood by disrupting the violence associated with its open-air drug market and boosting sales at nearby stores.

The marketplace’s champions—including Mayor London Breed, who praised the food hall as a “first-of-its-kind initiative”—predicted it would draw lunch and dinner crowds from nearby office towers and Civic Center. That foot traffic would, in turn, have positive trickle-down effects on the neighborhood by disrupting the violence associated with its open-air drug market and boosting sales at nearby stores.

But four years later, a Covid-driven <a href="https://sfstandard.com/business/return-to-office-sf-london-breed-google/">Downtown office worker exodus</a> has hollowed out the potential daytime clientele.&nbsp;

But four years later, a Covid-driven <a href="https://sfstandard.com/business/return-to-office-sf-london-breed-google/">Downtown office worker exodus</a> has hollowed out the potential daytime clientele.&nbsp;

Mara Blitzer, director of special projects at the mayor’s community development office, explained that when the city granted La Cocina a below-market-rate lease to operate the marketplace beginning in 2021, the arrangement was designed to give the city time to raise funds for an affordable housing project slated to be built in its place—and to provide La Cocina’s chefs with adequate runway to launch brick-and-mortar restaurants elsewhere. However, none of the original chefs incubating their concepts has graduated from the marketplace.

Mara Blitzer, director of special projects at the mayor’s community development office, explained that when the city granted La Cocina a below-market-rate lease to operate the marketplace beginning in 2021, the arrangement was designed to give the city time to raise funds for an affordable housing project slated to be built in its place—and to provide La Cocina’s chefs with adequate runway to launch brick-and-mortar restaurants elsewhere. However, none of the original chefs incubating their concepts has graduated from the marketplace.

“The businesses are not thriving as much as we expected because the market has changed so dramatically,” Blitzer said.

“The businesses are not thriving as much as we expected because the market has changed so dramatically,” Blitzer said.

A rack of Pupusas at Estrellita’s Snacks atLa Cocina Municipal Marketplace. | The Standard

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED03_NEW_LaCocina033023.jpg" alt="" class="wp-image-154496"/><figcaption class="wp-element-caption">A rack of pupusas stands at Estrellita’s Snacks inside La Cocina&#8217;s Municipal Marketplace. | Jesse Rogala/The Standard</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED03_NEW_LaCocina033023.jpg" alt="" class="wp-image-154496"/><figcaption class="wp-element-caption">A rack of pupusas stands at Estrellita’s Snacks inside La Cocina's Municipal Marketplace. | Jesse Rogala/The Standard</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED03_NEW_LaCocina033023.jpg" alt="" class="wp-image-154496"/><figcaption class="wp-element-caption">A rack of pupusas stands at Estrellita’s Snacks inside La Cocina&#8217;s Municipal Marketplace. | Jesse Rogala/The Standard</figcaption></figure>

The Mayor’s Office said it has allocated resources to nonprofit <a href="https://sfstandard.com/public-health/homelessness/san-francisco-homelessness-nonprofit-urban-alchemy-approach-legit/">Urban Alchemy</a> so it could assign its “street ambassadors” to the block, and La Cocina employs two security guards to monitor the marketplace during the day. Yet several chefs say the neighborhood’s challenging conditions continue to drive away customers and put pressure on their fledgling businesses.&nbsp;

The Mayor’s Office said it has allocated resources to nonprofit <a href="https://sfstandard.com/public-health/homelessness/san-francisco-homelessness-nonprofit-urban-alchemy-approach-legit/">Urban Alchemy</a> so it could assign its “street ambassadors” to the block, and La Cocina employs two security guards to monitor the marketplace during the day. Yet several chefs say the neighborhood’s challenging conditions continue to drive away customers and put pressure on their fledgling businesses.&nbsp;

Faced with the difficult task of activating a square block of the Tenderloin, many people working the marketplace say they feel the burden of fixing this neighborhood has unfairly fallen on them and question the efficacy of this temporary community development project.&nbsp;

Faced with the difficult task of activating a square block of the Tenderloin, many people working the marketplace say they feel the burden of fixing this neighborhood has unfairly fallen on them and question the efficacy of this temporary community development project.&nbsp;

Affordable and Untenable

<h2 class="wp-block-heading">Affordable and Untenable</h2>

<h2>Affordable and Untenable</h2>

La Cocina’s deputy director, Leticia Landa, said her organization’s hopes for the marketplace have not matched up with reality.&nbsp;

La Cocina’s deputy director, Leticia Landa, said her organization’s hopes for the marketplace have not matched up with reality.&nbsp;

“When we spent millions to build the marketplace, we were 100% excited by the community we were surrounded by, because it’s one of the more affordable places in the city to live,” she said. “Our other target market was the thousands of office workers. That’s definitely not the case now, and every business in the Downtown core of San Francisco is feeling it.”

“When we spent millions to build the marketplace, we were 100% excited by the community we were surrounded by, because it’s one of the more affordable places in the city to live,” she said. “Our other target market was the thousands of office workers. That’s definitely not the case now, and every business in the Downtown core of San Francisco is feeling it.”

Pawan Rana, a server working at the food hall, succinctly described the typically sparse afternoon crowd.

Pawan Rana, a server working at the food hall, succinctly described the typically sparse afternoon crowd.

“It’s not so good,” he said.

Los Cilantros, a food stall specializing in Mexican comfort food, sits closed for the day next to empty tables and chairs in La Cocina Municipal Marketplace in San Francisco’s Tenderloin neighborhood on Wednesday, April 19, 2023. The food hall’s occupants have noticed a pattern of decreased foot traffic later in the afternoon and into the evenings, possibly due to patrons’ safety concerns surrounding La Cocina’s location. 

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED03_LaCocina033023.jpg" alt="" class="wp-image-154323"/><figcaption class="wp-element-caption">Los Cilantros, a food stall specializing in Mexican comfort food, sits closed for the day next to empty tables and chairs. | Morgan Ellis/The Standard</figcaption></figure>

Bahloul told The Standard he feels that his family and the other business owners in the marketplace are still dealing with the aftereffects of the pandemic.&nbsp;

Bahloul told The Standard he feels that his family and the other business owners in the marketplace are still dealing with the aftereffects of the pandemic.&nbsp;

“Nothing is going the way it’s supposed to,” he said. “I can’t make a profit.”

“Nothing is going the way it’s supposed to,” he said. “I can’t make a profit.”

He said he feels that La Cocina asks chefs to pay more money—$500 per month in base rent plus 5% of gross sales, according to a tenant agreement shared with The Standard—than they realistically can.

He said he feels that La Cocina asks chefs to pay more money—$500 per month in base rent plus 5% of gross sales, according to a tenant agreement shared with The Standard—than they realistically can.

According to Landa, La Cocina is feeling the financial pressure of its marketplace as well.&nbsp;

According to Landa, La Cocina is feeling the financial pressure of its marketplace as well.&nbsp;

“We are in no way covering our costs,” she said. “People are just not eating out as much.”

“We are in no way covering our costs,” she said. “People are just not eating out as much.”

Jay Foster, who managed the marketplace from summer 2020 until last winter, agreed with Bahloul. He said it was difficult for chefs to drum up enough business during the day and that drawing patrons after sundown proved to be a nonstarter.

Jay Foster, who managed the marketplace from summer 2020 until last winter, agreed with Bahloul. He said it was difficult for chefs to drum up enough business during the day and that drawing patrons after sundown proved to be a nonstarter.

“Being there is very limiting,” Foster said. “There’s only really a lunch crowd.”

“Being there is very limiting,” Foster said. “There’s only really a lunch crowd.”

A closed sign is posted at Bini’s Kitchen, one of the restaurants that occupies a stall at the La Cocina Municipal Marketplace in San Francisco’s Tenderloin neighborhood on Wednesday, April, 2023. With foot traffic often diminishing after the early afternoon lunch rush, some of La Cocina’s vendors close their businesses for the latter part of the day. | Morgan Ellis/The Standard

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED04_LaCocina033023.jpg" alt="" class="wp-image-154326"/><figcaption class="wp-element-caption">A closed sign is posted at Bini’s Kitchen, a stall at the La Cocina Municipal Marketplace in the Tenderloin onApril 19, 2023. | Morgan Ellis/The Standard</figcaption></figure>

Landa told The Standard that when La Cocina first submitted a proposal to develop the marketplace, her staff had anticipated a steady flow of lunch and dinner traffic, so they designed a bar to accommodate nighttime diners. Recently, La Cocina has hosted trivia nights and pop-up dinners, which Landa said usually attract around 100 guests.

Landa told The Standard that when La Cocina first submitted a proposal to develop the marketplace, her staff had anticipated a steady flow of lunch and dinner traffic, so they designed a bar to accommodate nighttime diners. Recently, La Cocina has hosted trivia nights and pop-up dinners, which Landa said usually attract around 100 guests.

“But we need that to grow fivefold in order for this to make sense,” she said.

“But we need that to grow fivefold in order for this to make sense,” she said.

On a typical evening, Landa said only one or two kiosks remain open for dinner.&nbsp;

On a typical evening, Landa said only one or two kiosks remain open for dinner.&nbsp;

“The expense of staying open isn’t worth it,” she said. “There’s just not enough people in there.”

“The expense of staying open isn’t worth it,” she said. “There’s just not enough people in there.”

Bahloul noted that the daily “rush” only lasts from 11 a.m. to 2:30 p.m., and the marketplace is closed on weekends. Since many people don’t feel safe visiting the neighborhood after dark, dinner is not a viable path to profitability.

Bahloul noted that the daily “rush” only lasts from 11 a.m. to 2:30 p.m., and the marketplace is closed on weekends. Since many people don’t feel safe visiting the neighborhood after dark, dinner is not a viable path to profitability.

“No one wants to hang out in the Tenderloin,” he said. “Tourists stumble upon it and follow their GPS thinking it’ll get better, but it doesn’t.”

“No one wants to hang out in the Tenderloin,” he said. “Tourists stumble upon it and follow their GPS thinking it’ll get better, but it doesn’t.”

“It’s a great concept, but people are afraid to come down here,” said Damian Morffet, who manages security at the marketplace. He said that minutes earlier, he cleared the corner of people using fentanyl—a task he’s been faced with every day over the three years he’s worked at the marketplace.

“It’s a great concept, but people are afraid to come down here,” said Damian Morffet, who manages security at the marketplace. He said that minutes earlier, he cleared the corner of people using fentanyl—a task he’s been faced with every day over the three years he’s worked at the marketplace.

People eat lunch near Bini’s Kitchen at La Cocina Municipal Marketplace in San Francisco’s Tenderloin neighborhood on Wednesday, April 10, 2023. The food hall’s occupants have noticed a pattern of decreased foot traffic later in the afternoon and into the evenings, possibly due to patrons’ safety concerns surrounding La Cocina’s location. | Sarah Holtz/The Standard

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/04/INLINED05_LaCocina033023-2500x1875.jpg" alt="" class="wp-image-154329"/><figcaption class="wp-element-caption">People eat lunch near Bini’s Kitchen at La Cocina Municipal Marketplace on April 10, 2023. | Sarah Holtz/The Standard</figcaption></figure>

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