On Oct. 2 the Planning Commission denied a conditional-use authorization to allow Club Pilates, a national franchise, to occupy a vacant storefront at 1034 Valencia Street. The motion to deny passed 6–1.

Staff framed the review under Planning Code section 303.1 and related formula-retail rules that examine concentration of formula retail uses within a 300-foot radius, vacancy rate, and compatibility with the corridor’s architectural and economic character. Staff reported the 300-foot radius vacancy rate at approximately 26% and that no other formula-retail uses were present within that immediate radius. The proposed studio would have been the first formula-retail use within the measured vicinity and would increase concentration from 0% to about 1.4%. Sponsors said they intend to operate the studio as an owner-operated franchise and emphasized community partnerships, a Medicare program offering low-cost classes for seniors and an expressed pool of interested local residents.

Neighborhood merchants, legacy small businesses and neighborhood organizations strongly opposed the application. Speakers and petitions cited Valencia Street’s designation as the nation’s longest independently owned business corridor and urged the commission to preserve the corridor’s character and protect small-business viability. Several merchant associations and long-standing Valencia business owners told the commission that allowing a widely franchised brand would set a precedent that could jeopardize small independent retailers by pushing up rents and landlord expectations.

After deliberation commissioners concluded that the formula-retail findings required by code could not be made in this case because introducing a chain where concentration is currently zero would undermine corridor character and small-business protections. The motion to deny passed 6–1 (Commissioner Campbell opposed).