City of San Francisco Legacy Business Historic Preservation Fund, Proposition J (November 2015)

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A legacy business historic preservation fund, Proposition J, was on the ballot for voters in San Francisco, California, on November 3, 2015. It was approved.

In March 2015, the board of supervisors voted unanimously to establish a legacy list that businesses could join if they had existed for more than 30 years and could show significant contribution to San Francisco's identity. Proposition J was designed to establish a fund to contribute to businesses on the legacy list. Eligible businesses were to receive $500 for every full-time employee and property owners leasing to businesses on the legacy list were to be given $4.50 per square foot if they provided 10-year leases to the qualifying businesses.

The city controller's analysis of this measure estimated it would cost the city about $3.7 million in the 2015-2016 fiscal year. He also estimated that, if the city were to fully fund the proposed legacy business grants, the cost to the city would increase every year, reaching a cost of between $51 million and $94 million annually within 25 years. The controller said there were about 7,500 businesses in the city that would qualify for the legacy list and that they had an average of eight employees each. The actual costs of this proposition depend on the number of businesses added to the legacy list and the budget approved each year by the mayor and board of supervisors. The estimates above were given assuming the city honored the proposal. Proposition J does not legally require any amount of the annual budget to go towards the Legacy Business Historic Preservation Fund.

Election results

San Francisco, Proposition J
Result		Votes	Percentage
a Yes		108,907	56.97%
No		82,268	43.03%

Election results from San Francisco Elections Office

Text of measure

Ballot question

The following question for this measure appeared on the ballot:

“

Shall the City establish a Legacy Business Historic Preservation Fund, which would give grants to Legacy Businesses and to building owners who lease space to those businesses for terms of at least 10 years; and expand the definition of a Legacy Business to include those that have operated in San Francisco for more than 20 years, are at risk of displacement and meet the other requirements of the Registry?

”

Full text

The full text of this measure is available here.

Support

Supporters

The South Beach Mission Bay Business Association endorsed a "yes" vote on Proposition J.

The San Francisco Labor Council endorsed a "yes" vote on Proposition J.

The Paula Fiscal Show, "Paula Fiscal with Tom Temprano Prop J," September 18, 2015

Editorials

The editorial board of the San Francisco Examiner endorsed a vote in favor of Proposition J. The board argued that San Francisco is losing its "soul and charm" and that the proposition could help established local businesses continue to contribute to the character of neighborhoods. The board wrote:

“	If San Francisco is losing some of its soul and charm in this economic boom, Proposition J offers a tool to city leaders to extend a hand to the established local shops and groups that have contributed to the character of their neighborhoods. This measure would create a grant program to fund the Legacy Business Registry, established by the Board of Supervisors in March, open to small businesses and nonprofits that have been around for more than 30 years. We hope this will be a useful tool to help preserve the historic fabric of San Francisco.	”
—San Francisco Examiner editorial board

Opposition

Opponents

The San Francisco Taxpayers Association crafted an argument against Proposition J.

Editorials

The editorial board of the San Francisco Chronicle endorsed "No" vote on Proposition J. They argue that the proposition would allow the city government to choose winners and losers, and that businesses' success or failure ought to be left to the market. The board writes:

“	Along with home buyers and tenants, businesses are suffering from soaring rents and evictions in high-cost San Francisco. Proposition J offers the appealing idea of city subsidies to long-established stores, bars and restaurants facing skyrocketing leases. But the measure comes with too many flaws to support. It leaves the picking and choosing to city supervisors who may favor supporters in filling a yearly roster of 300 subsidy winners. It may even worsen the problem of rising rents by pouring city money in an overheated market.	”
—San Francisco Examiner editorial board

Reports and analysis

Ballot simplification digest

The following summary of the measure was provided by the San Francisco Ballot Simplification Committee:

“	The Way It Is Now: San Francisco is establishing a registry of legacy businesses (the Registry). To be considered for the Legacy Business Registry, a business or nonprofit must meet three criteria: It has operated in San Francisco for 30 or more years, and either was founded or currently has its headquarters in San Francisco; It has contributed to the neighborhood’s history or identity; and It is committed to maintaining the physical features or traditions that define the business or nonprofit. A business or nonprofit must first be nominated by a member of the Board of Supervisors or the Mayor. The Small Business Commission then conducts a hearing to determine the business’s eligibility. The Proposal: Proposition J would create a Legacy Business Historic Preservation Fund, which would give grants to businesses listed in the Registry and to building owners who lease property to those businesses for at least 10 years. 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. Proposition J would also expand the definition of Legacy Business to include businesses and nonprofits that have operated in San Francisco for more than 20 years, have significantly contributed to the history or identity of a neighborhood and, if not included in the Registry, would face a significant risk of displacement because of increased rents or lease terminations. A "YES" Vote Means: If you vote “yes,” you want to establish a Legacy Business Historic Preservation Fund, which would give grants to Legacy Businesses and to building owners who lease space to those businesses for terms of at least 10 years. You also want to expand the definition of a Legacy Business to include those that have operated in San Francisco for more than 20 years, are at risk of displacement and meet the other requirements of the Registry. A "NO" Vote Means: If you vote “no,” you do not want to establish a Legacy Business Historic Preservation Fund and you do not want to expand the definition of a Legacy Business.	”
—San Francisco Ballot Simplification Committee

Controller analysis

The following estimate of the fiscal impact of this measure on the city's finances was prepared by the city controller and appeared on the ballot:

“	Should the proposed ordinance be approved by the voters, in my opinion, the cost to government would be significant if the Mayor and Board of Supervisors chose to fully fund the program. The cost would grow by $2.1 million to $3.7 million annually beginning in fiscal year 2015-2016, ultimately reaching a cost of between $51 million and $94 million annually once all qualifying legacy businesses are enrolled in approximately 25 years. However, these costs would depend on decisions made through the budget process, as an ordinance cannot bind future Mayors and Boards of Supervisors to provide funding for this or any other purposes. The proposed ordinance authorizes a grant to registered "legacy businesses in the amount of $500 per full-time employee. The registry can grow by 300 businesses per year. There are approximately 7,500 businesses in the City that would meet the definitions and criteria, with an average employment of eight employees. The cost of this portion of the program is estimated to grow by approximately $1.2 million annually until reaching an ultimate cost of approximately $30 million in 25 years, should all legacy businesses be accepted into the program. The proposed ordinance also creates a grant program to landlords of legacy businesses on the registry, provided that their leases to legacy businesses meet certain conditions. Approximately 75% of legacy businesses rent their property, with an average facility size of 3,400 square feet. The proposed ordinance awards landlords a grant of$4.50 per square foot for each qualifying lease. Costs of this portion of the program would likely grow by between $850,000 and $2.5 million per year depending on how many leases meet the terms required in the ordinance and other factors. Should all legacy businesses be accepted into the program in approximately 25 years, costs for this portion of the program would likely range between $21 million and $63 million annually. As stated above, an ordinance cannot bind future Mayors and Boards of Supervisors to provide funding for this or any other purpose. Under the City Charter, the ultimate cost of this proposal depends on decisions made in the City's annual budget process. Costs stated above are expressed in current dollars and assume implementation of the program created in the proposed ordinance.	”
—San Francisco Controller

Path to the ballot

See also: Laws governing local ballot measures in California

This proposition was submitted to the board of supervisors by Supervisors David Campos, John Avalos, Jane Kim and Eric Mar. It was then put on the ballot for voters to decide.

Recent news

The link below is to the most recent stories in a Google news search for the terms San Francisco legacy business historic preservation fund Proposition J. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

City of San Francisco Legacy Business Historic Preservation Fund, Proposition J (November 2015) - Google News

Other elections

Mayoral election

See also: San Francisco, California mayoral election in 2015

Mayor Ed Lee was the incumbent candidate in the city's 2015 mayoral race. Mayor Lee was re-elected on November 3, 2015.

Board of supervisors

See also: San Francisco, California board of supervisors election in 2015

The consolidated city-county's District 3 board of supervisors position was up for election on November 3, 2015. Aaron Peskin defeated incumbent Julie Christensen.

See also

• City budget on the ballot
• Local business regulation on the ballot
• San Francisco City and County, California ballot measures
• November 3, 2015 ballot measures in California
• San Francisco, California municipal elections, 2015

External links

Suggest a link

• San Francisco Elections Office website