A longstanding owner of multiple businesses in San Francisco is facing financial ruin as a result of the city’s failure to keep its streets safe for small businesses. Mark Sackett, who has owned a building in the South of Market neighborhood for nearly two decades, is struggling to refinance a $2.5 million mortgage due in February and his building is scheduled to be auctioned in January. This is just one of many businesses in the area that are facing similar challenges.
Sackett blames the widespread drug use, violence, and filthy streets in the neighborhood for his current predicament. He says that since the start of the pandemic, the area has become the worst he has ever seen. As a result, he has been unable to find a lender willing to refinance his businesses, with six of them explicitly stating that they are not making commercial real estate loans in San Francisco due to the state of the city.
“I’m just done with San Francisco and the bulls— here. It’s out of control.”
This longtime business could shut down due to crime, looming $2.5 million loan. https://t.co/LoOrXtEYPo
— San Francisco Chronicle (@sfchronicle) November 22, 2023
The South of Market neighborhood, once a thriving business district, has become a hotbed of criminality according to Sackett. He recounts numerous incidents of drug use, violence, and break-ins at his building. He even had to resort to using pepper spray to defend his property. Despite his efforts, the area continues to be littered with needles and feces, making it an unappealing and unsafe place for businesses.
Sackett places much of the blame on the city’s leadership, saying they have failed to address the issues plaguing the area. He claims that they are more concerned with bike lanes, nonprofits, and safe injection sites than they are with the well-being of small businesses. Sackett says that city officials have ignored his pleas for help and have not even returned his calls.
Supervisor Matt Dorsey, who represents the district, acknowledges the challenges facing the area, especially in terms of public safety and drug markets. However, he believes there has been some progress made in recent months. Dorsey acknowledges that for businesses like Sackett’s, the recovery has been too slow and is optimistic about the future.
Sackett estimates that he has lost nearly $250,000 in revenue this year due to cancellations and clients declining to book events at his venue. He says that clients have expressed concerns about the safety of the neighborhood, deterring them from booking events. He also notes the irony that the city takes a more lenient approach towards homeless individuals, allowing them to sleep on the streets, while cracking down on small business owners for non-compliance with ADA regulations.
In an effort to revitalize the area, Sackett used a city grant to commission a mural and add planters, but it appears to have had little impact. As the pandemic continues to take a toll on small businesses in San Francisco, it is crucial that city leaders take action to address the safety concerns in the South of Market neighborhood and support the struggling businesses. Otherwise, more business owners like Sackett will face the same fate, and the city’s economic recovery will be significantly hindered.
