Measure J looks to save businesses getting squeezed by SF rents

SAN FRANCISCO (KTVU) - San Francisco has seen a string of long-time businesses close or relocate due to skyrocketing leases, prompting a group to put Measure J on the November ballot.

San Francisco voters will decide by simple majority whether to approve the measure which would create a fund to assist so-called legacy businesses which have been operating for more than 30 years.

In the financial district on Bush Street, the smell of grilled seafood, the white tablecloths, and the room of wood-paneled walls are part of the experience that Sam's Grill and Sea Food has served up since 1867.

"There are generations that have been raised in this restaurant," said Peter Quartaroli, who was a waiter for more than 2 decades and watched the restaurant struggle to stay afloat.

It closed briefly and reopened last year. That's when Quartarolie became managing partner.

"We've weathered earthquakes, bear markets, bull markets," Quartaroli said, "One year ago, we had 33 people out of work, now we have close to 40 employees that are making a living here in the city."

Wednesday night, a group of Measure J supporters held a fundraiser, saying many businesses are facing skyrocketing leases, and some businesses have not made it, being forced to close, relocate or just barely hang on.

Measure J would allow the Board of Supervisors and Mayor to nominate up to 300 businesses every year for historic status, making them and their landlords eligible for financial assistance grants.

"The business could technically qualify for $50,000 a year. On the flip side the landlord is also eligible for a benefit," said Mike Buhler, the Executive Director of San Francisco Heritage.

Measure J takes the idea of historic preservation and extends it beyond buildings to businesses.

"This initiative won't save everything but I think it will help create an incentive, just as cities do to bring in new business, to help retain some of those historic legacy businesses," said Barbara Pahl, a National Trust for Historic Preservation spokeswoman.

Pahl says they would consider trying to introduce similar legislation in other cities if Measure J passes in San Francisco.

The controller's analysis shows that if Measure J passes, the city could be on the hook for up to $94 million dollars annually in 25 years. Supporters say the Board of Supervisors would have discretion however as to how much is allocated to the heritage fund every year.

"That's still no reason for the taxpayers to pay a money-making business to keep them in there," said Howard Epstein, a San Francisco Republican Party spokesman.

The San Francisco Republican Party is among those opposed to the measure, saying it could lead to waste and an unfair business environment.

"Where are they going to take the money away from? Are they going to take it away from schools? Maintenance of parks? You got to think about that. Where's the money going to come from?" Epstein asked.

According to the controller, up to 7,500 businesses right now could qualify for the Measure J funds.