SAN FRANCISCO (KGO) — Since the pandemic began, ABC7 has been following the stories of small businesses trying to survive, and in San Francisco, one of the biggest challenges they're facing is bringing customers back to the city.
Safety is a big factor, but one small business owner says the city hasn't made things better. They're now suing to hold the city accountable.
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At Fisherman's Grotto restaurant in San Francisco's historic Fisherman's Wharf district, the windows are covered with plywood, and the restaurant's bare countertops tell a story of defeat.
“We're down about 30 percent, but 60 percent are still open,” said Randall Scott, executive director of the Fisherman's Wharf Community Benefit District.
Since the pandemic hit, the owners of The Grotto and Tarantino's, located around the corner, have closed both establishments, and are now suing the city of San Francisco, citing an out-of-control homeless population, criminal activity in and around Fisherman's Wharf, and unsafe structural conditions.
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The city attorney's office said in a statement that Herringbone, which operated the restaurant, had been struggling for some time.
“Herringbone has attempted various tactics over the last year to avoid paying the $1.7 million in back rent it owes the city, and this appears to be another attempt. However, when served with the complaint, we will review it and respond in court.”
Scott confirmed that several businesses have closed since the pandemic but are working on a solution.
“The European economy is struggling a bit and travel to Europe is down,” Scott said, adding, “We're focusing on attracting more locals. We're putting on free concerts here on their pier every Saturday.”
These restaurant owners aren't the only ones citing San Francisco's problems as the reason for closing their doors.
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Westfield exited the shopping center last year, citing “deteriorating conditions in downtown San Francisco.”
Nordstrom's flagship store also left the mall, and many other stores have since closed. Supervisor Matt Dorsey represents the downtown district.
“What I'm hearing from businesses and retailers is that if San Francisco can get public safety right, everything else will fall into place. So that's been my No. 1 priority — making sure the police department is adequately staffed,” Dorsey said.
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Attorney Matt Davis, who served as San Francisco's deputy city attorney for nearly nine years, believes the lawsuit against the city has merit.
“If they can prove that the city has taken some positive action or engaged in some actual policy that has caused homeless people to come to their neighborhood, or that the city has somehow induced dangerous activity on their property, then they may be able to bring a lawsuit against the city. Again, it's a tough case,” said Matt Davis, a partner at Walkup, Melodia & Kelly. & Schönberger.
There are trends impacting retailers, with downtown seeing fewer customers as people work from home and Fisherman's Wharf seeing tourism not fully recovering, a big factor.
Full statement from attorneys representing Herringbone Tavern Inc.:
“The City of San Francisco and the Port Authority's deliberate failure to protect historic Fisherman's Wharf from an out-of-control homeless population, criminal activity on and around Fisherman's Wharf, and unsafe structural conditions have caused irreparable harm to the Herringbone Tavern, a thriving local business that once housed Fisherman's Grotto and Tarantino's. Through its own lease language, the City of San Francisco has committed to:
“The character of Fisherman's Wharf will be maintained in the same general manner as it exists on the date of the execution of this Lease. In this regard, the parties recognize that the Fisherman's Wharf area is a major tourist attraction and that it will be in the interest of both the Port and Tenant that it be maintained in such condition during the term of this Lease.”
The City of San Francisco and the Port Authority failed to deliver on their contractual commitments, resulting in the tragic loss of business for Herringbone Tavern and many other businesses, while the City turned a blind eye and expected business owners and residents to figure things out on their own.
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