'Our hands are tied': SF couple wants city to pay back $300K they sunk into restaurant in building slated for a shelter. What businesses can do when local policy impacts livelihood

"We didn't have any clue what is happening on the building," Kay told ABC7 News in San Francisco.

With the shelter slated to open April 2025, the Zins feel trapped. They want to relocate, but that would mean breaking their lease and losing the money they invested in their existing restaurant.

"We are the tenants, too,” Ryan said. “We don't want to deal with everything that we don't want to because we want to focus on our business, but our hands are tied."

Balancing social needs with business concerns

The city chose the location because it complements other city-run supports nearby, including an addiction treatment center, a sobering center and homeless shelter.

But area businesses are concerned about increased crime. The Zins’ restaurant has already been robbed twice — at gunpoint. Small businesses are worried would-be customers will stay away due to growing safety concerns.

"I just wanted to relocate to a safer place," said Kay.

For over a year, the Zins have been communicating with the city's Homelessness and Supportive Housing (HSH) department about their concerns. They want the city to refund their $300,000-plus investment so they can move.

HSH supervisor Matt Dorsey told ABC7 News is willing to help the Zins and that he doesn’t “want to do anything that will hurt a small business.”

“They didn't sign up for this,” he said. “They want out. I'm happy to have that conversation and bring my office in negotiating that.”

Dorsey added that the city will be providing round-the-clock “ambassador services” in the neighborhood to address concerns about safety. He said there will also be onsite security in the shelter overnight.

When local policy impact local businesses

Small business owners in situations like the Zins may feel stuck, but there are steps to mitigate risk, advocate for support and deal with risk.

Understand your rights. Before signing a lease, it’s critical to review any clauses about building ownership changes, city takeovers or early termination rights. If you're already leasing, consult your lease agreement to see if the landlord violated any disclosure or notification requirements. Commercial tenants may have rights depending on lease terms and local ordinances.

Build alliances with other small businesses. You’re stronger together. Join or form a merchant association or collaborate with nearby businesses to share advocacy, safety initiatives and resources. Voice collective concerns to city officials or neighborhood councils.