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San Francisco Flower Mart Tenants Facing Early Eviction

On Jan. 4, weathering torrential rains and in spite of a power outage caused by a ferocious storm, tenants of the historic San Francisco Flower Mart gathered to hold a press conference. The gloom and doom atmosphere caused by the storm outside seemed to mirror the emotions of the small business owners and their supporters huddled in the darkened Toscana Gardens shop.

Twenty-eight tenants on the western side, representing half of the entire Flower Mart, are being evicted as part of a plan by the for-profit Academy of Art University to purchase the property and convert it into sculpture studio space. The pending sale and evictions have serious implications for the historic Japanese businesses at the Flower Mart, connecting it to the overall issue of preservation of Japanese American culture heritage in addition to the issue of the contemporary plight of small business owners.

"The majority of the stockholders on the western end aren't active in growing," explains Nisei Richie Oe, who took over what was formerly Gish Endo's Wholesale Flowers, in operation since the Mart's inception. "They decided to sell their interests, but they don't realize how many people they are affecting."

The tenants have been served eviction notices because the Academy wants the property to be vacant when acquired, said land-use attorney Sue Hestor, who represents the Mart tenants.
"We'll have no place to go," Jeff Iwasaki, a business owner facing eviction, continued. "We can't just move — we need the neighboring businesses to survive. People know this is where you come for flowers."

"You can get everything here," Mike Ferro, who owns the neighboring Fantistico, added. "If you go to Safeway or Costco you are limited to your basic red rose; if you want to do an arrangement with multiple brilliant colors, there's no where else between here and L.A. to get it."

Ferro said the Mart is the anchor that keeps consumers coming to the area. He fears that without the Mart, neighboring businesses cannot thrive.
As one of only three combination wholesale and retail flower markets in the nation, the historically Japanese and Italian American San Francisco Flower Mart has been the central supplier for the city's florists and signature flower stands, as well as a key distribution point for nurseries up and down the West Coast since 1931.

The eastern two-thirds of the market, which is not for sale, is controlled by Japanese American families and remains an important part of Japanese history. Issei flowers growers went into the flower business as early as 1884. Most had no previous experience in floriculture in Japan, but the success stories of other immigrants combined with job discrimination in other areas made it an appealing venture. These pioneers and their Nisei children who took over their businesses were instrumental in creating and maintaining the Flower Mart that exists today.

The city has made efforts to put a halt to the Academy's plans. On Dec. 11 of last year, the Board of Supervisors unanimously imposed a 45-day moratorium on any new educational uses in the Western SOMA Industrial Protection zone in which the Mart is located. Mayor Gavin Newsom signed the moratorium on the 18th. The Board of Supervisors may extend the ban for up to two years and the Planning Commission could vote to permanently ban educational uses on the site, effectively permanently preventing the Academy's stated plans.

"I am committed within the legislative boundaries of the board to thwart their shameful attempts at evicting 30 thriving businesses," Board President Aaron Peskin, who introduced the interim rules, told the San Francisco Chronicle, saying he will do everything in his power to prevent the deal from advancing.

The plans still appear to be going forward. Eviction notices, dated Christmas Eve, were again sent out to tenants, this time with an accelerated date of Feb. 29, moved up from Apr. 30.

Sallie Huntting, a spokeswoman for the Academy of Art, told the Chronicle, however, that because the school is in escrow, it is legally obligated to follow through on the deal.

She further contended that the university's plans were permitted uses when it entered into the purchase contract.

In a statement cited by the Chronicle, Academy of Art President Elisa Stephens, stated that "the Academy of Art University.. did not issue the notices," though it does not explicitly deny responsibility for them. "We deeply regret the anxiety the notices caused these business owners and we pledge to work with the current owners of the Flower Mart to assure these businesses that we are prepared to work with them in the future."

Michael Goldstein, a representative for the tenants, contended, however, that the Academy has a poor track record on cooperating with communities.

"They have silently bought up at least 13 big residential, rent-controlled properties in the lower Nob Hill," he says. "If the landlords don't evict all the tenants, they try to get them to relinquish their tenant rights and go ahead and convert as much of the buildings as they can into dormitories."

Goldstein says such practices devastate communities, by bringing the young students of the pricey university into rent control areas often populated by people of retirement or near retirement age.

While a moratorium on educational use would prevent the Academy from building either dormitories or sculpture studios on the property, it could potentially remain a useful acquisition.

Hesting speculates that the academy could hold onto the vacant property until the city, not wanting the space to go to waste, would relinquish the moratorium.

John Nicolini, who owns Delano Nursery and whose grandfather was one of the Mart's founders, believes that their interest is actually in using the property for a later real estate deal.

If everyone saw the Academy of Art for what it is — a real estate acquisition business — they'd be a little more circumspect" Harold Hoogasian, owner of Hoogasian Flowers, added in agreement.

Whatever happens, the stakes are high for tenants.

San Le, an ethnic Chinese immigrant from Vietnam, who makes leis at Piazza International Floral LLC, convinced her daughter to forego college to work with her, a decision she regrets now that Piazza faces eviction.

"I wake up at three in the morning, feeling guilty and fearful," Le said with tears streaming down her face.

"150 people will be displaced if the deal goes through," says Patrick McCann, the owner of Toscana Gardens and Greenworks. He attempted to buy the property to keep the tenants in business, and said "there are handicapped business owners here and managers who support disabled spouses.. where are they going to go? We're just trying to understand with all the opposition why can't we keep the businesses going."
The coming week will see three city meetings which may address that question.

On Jan. 10, the Planning Commission will amend their policy on Eastern Neighborhoods industrial areas to require any change of use at the Flower Mart be subject to Commission approval or disapproval and will hear the report of the Western SOMA Task Force which is responsible for drafting new zoning controls for this area.

On Jan. 14, the Board of Supervisors Land Use Committee will hear a report from Planning on steps already taken to ban institutional uses in Western SOMA and on Jan. 15, Peskin will introduce the two-year extension of the emergency moratorium

"I thought San Francisco was pro-small business," Roy Martin, manager of McLellan Botanicals said. "I don't see how 28 small businesses can just be pushed out."



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