(a) Establishment of Fund. The San Francisco Music and Entertainment Venue Recovery Fund (the “Fund”) is hereby established as a category eight fund to provide financial support to San Francisco-based live music and entertainment venues in order to prevent their permanent closure due to the pressures of the COVID-19 pandemic. Donations to the Fund are deemed approved for acceptance and expenditure.
(b) Administration and Use of Fund.
(1) Responsible Agency. The Office of Small Business (“OSB”) shall administer the Fund to provide grants to entertainment venues whose operations have been significantly impacted by the COVID-19 emergency, and shall adopt rules for the distribution of monies in the Fund consistent with this Section 10.100-308, in consultation with the Controller’s Office, the Office of Economic and Workforce Development (“OEWD”), and the Entertainment Commission. In its discretion, OSB may also consult with businesses and community organizations representing the interests of venues regarding the Fund’s implementation, and with other City agencies. OSB may adopt rules regarding administration of the Fund and shall make all such rules available on its website and at its office.
(2) Criteria for Disbursement. OSB shall distribute monies from the Fund only to Eligible Venues, as defined in subsection (A), below, giving priority for distribution to Eligible Venues that meet two or more of the additional criteria set forth in subsection (B) below, and giving higher priority within the group of Eligible Venues that meet two or more such additional criteria to Eligible Venues that meet a higher number of priority criteria.
(A) “Eligible Venues” are San Francisco businesses that meet all of the following criteria:
(i) The principal function of the business is to provide live entertainment programming, as indicated by the presence of all of the following elements:
a. Defined performance and audience spaces within the venue;
b. Sound and lighting systems within the venue; and
c. Marketing of specific performers by name in print and digital publications, communications and/or social media;
(ii) The business held a Place of Entertainment permit from the Entertainment Commission as of February 25, 2020;
(iii) The business has demonstrated a commitment to maintaining the venue with its principal function to provide live entertainment programming;
(iv) The business is not owned, in whole or in part, managed, or exclusively booked by any organization that is a company whose shares of stock are publicly traded on a stock exchange; and
(v) The business has submitted an application signed under penalty of perjury by the owner or owners of the venue that establishes all of the following:
a. the grant request is based on rent, mortgage, payroll, unsecured property taxes, liability insurance, and/or utility costs that initially became due since February 25, 2020;
b. the venue is struggling to pay these expenses due to COVID-19-related income loss or expenses; and
c. the business presently maintains its lease for the venue space and intends to maintain the lease into the future and continue to use the venue for live entertainment.
(B) Priority. OSB shall give priority to Eligible Venues that meet two or more of the following additional criteria, giving higher priority among such Eligible Venues to Eligible Venues that meet a higher number of additional criteria:
(i) The venue is in imminent danger of closure;
(ii) The venue has been in operation for at least 15 years;
(iii) The venue is a “Legacy Business” under Section 2A.242 of the Administrative Code;
(iv) The venue has a maximum occupancy of less than 1000 patrons, as established by the most recent Place of Assembly permit issued for the venue under Chapter 1 of the Fire Code; and
(v) The venue has historical importance to, or in recent years has been an important economic force in, one or more Cultural Districts, as defined in Chapter 107 of the Administrative Code.
(c) Transition of Fund After January 31, 2022. OSB shall award grants from the Fund under the criteria set forth in subsection (b) until January 31, 2022. After January 31, 2022, OSB shall use monies in the Fund to support the relocation and reopening of Eligible Businesses as defined in subsection (b)(2)(A) that the OSB finds have significantly contributed to the history or identity of a particular neighborhood or community, and have been forced to move from their previous location due to the COVID-19 pandemic and/or significant rent increases tied to gentrification, with priority given to Legacy Businesses. OSB is authorized to adopt rules regarding the post-January 31, 2022, distribution of funds, and may set additional priorities for distribution, consistent with this section.
(Added by Ord. 22-21, File No. 201414, App. 3/5/2021, Eff. 4/5/2021)