Senator Wiener, Mayor Lurie Introduce Legislation to Boost Nightlife, Economic Recovery in Downtown SF
SAN FRANCISCO – Following a successful weekend of NBA All-Star and Lunar New Year events that generated hundreds of millions of dollars in economic impact and brought hundreds of thousands of people to San Francisco, Senator Scott Wiener (D-San Francisco) and Mayor Daniel Lurie introduced SB 395, legislation to help revitalize downtown San Francisco by spurring the creation of new nightlife venues. Nightlife – including bars, restaurants, and entertainment options – is critical to revitalizing downtown San Francisco by attracting people and diversifying the office-heavy neighborhood’s offerings. While California law currently caps the total number of liquor licenses available, SB 395 will boost nightlife activity and support small businesses in downtown San Francisco by creating 20 new liquor licenses in a special downtown hospitality zone.
“A truly spectacular array of street fairs, special events, and new small businesses have breathed life back into our downtown over the past year. Supporting our nightlife scene - including our bars and restaurants - is critical to continuing that strong recovery,” said Senator Wiener. “Creating new, more affordable licenses will allow new businesses to open and attract tourists and locals alike to our amazing downtown. By bringing more nightlife downtown, we can help transform it into the 24/7 community neighborhood that San Franciscans deserve.”
“To get San Francisco’s economy going again, downtown needs to be at full strength. Now, we are building on the success of last weekend with permanent solutions for this neighborhood,” said Mayor Lurie. “This legislation will bring new restaurants and bars, new people, and new energy downtown. San Francisco is open for business – that’s the message we are sending with this bill and all the work of our administration.”
Mayor Lurie has made downtown revitalization a key focus of his administration, taking bold steps to cut red tape and keep the streets safe and clean. Last week, he launched PermitSF to streamline the city’s permitting system and help new small businesses open. He also signed the Fentanyl State of Emergency Ordinance and announced plans for a 24/7 police-friendly stabilization center where people can access medical treatment a few blocks from Union Square. Additionally, the Board of Supervisors Land Use and Transportation Committee passed Mayor Lurie’s legislation with Supervisors Matt Dorsey and Danny Sauter to facilitate conversions of office space to homes. Earlier this month, the mayor introduced the San Francisco Police Department Hospitality Zone Task Force, with dedicated resources to increase the police presence around Union Square, the Moscone Convention Center, and Yerba Buena Gardens.
“This legislation is another signal that the Yerba Buena neighborhood and all of San Francisco wants your business and is where your business will thrive. As the city’s arts and cultural district, and its base for conventions, an influx of new restaurants and bars will support our renowned attractions that are a major economic engine for the city,” said Jill Linwood, external affairs director for the community benefit district Yerba Buena Partnership. “It’s clear that a safe, clean and welcoming neighborhood that celebrates of arts, culture, entertainment and community will drive our downtown’s comeback.”
In recent years, San Francisco has pursued a number of creative solutions to help fill vacant office and retail spaces. One of the goals of those initiatives has been to attract a more diverse industry base to help transform downtown, which overwhelmingly consist of office space, into a leading arts, culture, and nightlife destination. Providing new entertainment experiences through a hospitality zone will support this goal and allow downtown to recover faster. Existing law limits the number of on-sale general licenses for restaurants and bars to one license for each 2,000 residents per county. As of 2024, half of California’s 58 counties had reached the maximum number of on-sale general liquor licenses allowed under state law. San Francisco reached that limit nearly 80 years ago, and state law has effectively capped the number of new licenses ever since.
“Union Square is the beating heart of our downtown,” said Ben Bleiman, owner of Harrington’s Bar & Grill, San Francisco Entertainment Commissioner, and founder of the SF Bar Owner Alliance. “I applaud Mayor Lurie for taking this important step to attract more nightlife to our retail district. This legislation will help achieve our shared goal of reinventing downtown into a destination for shopping, housing, working and having fun.”
Once a county has reached that limit, new restaurants and bars must buy liquor licenses on the secondary market. Licenses bought on the secondary market can reach prices of $200,000 or more, placing a serious financial burden on new businesses. High license prices are an especially significant barrier for operators without substantial financial backing and those seeking to open businesses in spaces that require substantial tenant improvements.
In 2016, the Legislature passed SB 1285 (Leno, Chapter 790, Statutes of 2016), which created a new type of neighborhood-restricted liquor license (Type 87) for San Francisco's outer neighborhoods. The Type 87 license provides entrepreneurs in these neighborhoods access to new affordable licenses. In 2017 and 2024, the Legislature passed bills to increase the total number of Type 87 licenses based on the success of this program in enhancing neighborhood vitality.
Authored by Senator Wiener and sponsored by Mayor Lurie, Senate Bill 395 would authorize the City and County of San Francisco to designate a retail district, defined as an area that contains at least 1,000,000 square feet of retail shopping space. The Department of Alcoholic Beverage Control (ABC) would then be authorized to issue up to 20 new on-sale general liquor licenses within the retail district at a license fee of $20,000, boosting the recovery of San Francisco’s downtown and allowing small businesses to access more affordable licenses.
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