The San Francisco Planning Commission narrowly rejected a proposed ban on chain stores on Polk Street on Thursday, with the majority arguing that the legislation was too broad and could have unintended consequences.

Instead, the majority of planning commissioners said that, rather than an outright ban, the current zoning should be amended to let in some desirable formula retail establishments while raising the bar for those opposed by the majority of residents.

“This is a solution looking for a problem,” said Commissioner Michael Antonini, who voted against the ban with three other commissioners in the 4-3 vote. “We’ve only had three applications (for formula retail businesses) since 2011. We approved two of them and rejected one. There has not been a glut of formula retail applications despite a glut of vacancies in the neighborhood.”

Fear of more empty stores

Supervisor Aaron Peskin introduced the formula retail legislation in February as a way to block a proposed Whole Foods 365 grocery store, which has filed an application to occupy the former Lombardi Sports store at Polk and Jackson streets. Peskin says he wants to preserve the mom-and-pop character of Polk Street’s business corridor and that he would rather see housing built there, which the property owner had originally intended to do. Last month, however, Peskin agreed to exempt the Whole Foods store, allowing the store instead to have a separate conditional-use hearing.

After the commission’s recommendation, he formula retail ban will go before the Board of Supervisors next.

Still, with almost 50 residents and business owners weighing in on the ban, the debate at the Planning Commission frequently became a referendum on the grocery store. The majority of the 30 residents at the meeting who said they oppose the ban gave the desirability of the grocery chain as a reason to do so.

Citing the Whole Foods project, Russian Hill resident Richard Cardello said the ban was “hastily proposed to stop a single project that the community wants.” Another resident, Sarah Taber, said “there are a lot of empty stores on Polk Street. I’m afraid this would make it worse.”

Emily Harrold, president of Russian Hill Neighbors, said that while she supports many local businesses along Polk Street, chain stores offer affordable goods that make living in expensive San Francisco possible. She said she did a cost comparison between Whole Foods 365 brands and products at Real Foods, currently the largest grocer on Polk Street, and found that the larger chain was 70 percent less expensive. Other chains were similar, she said.

“Baby formula is 23 percent higher at the corner store than it is at Walgreens,” she said, adding that excluding mass market chains with cheaper products “ensures that only those at the highest level of disposable income will remain in San Francisco.”

‘Van Ness is a freeway’

But others argued that allowing formula retail stores onto a commercial strip fuels commercial rent hikes, strips neighborhoods of its character, and undermines existing businesses.

Mike Priolo, a representative of the 50-year-old Jug Shop at Polk and Pacific, said his business has survived the arrival of BevMo on Van Ness Avenue and the Whole Foods at Franklin and California streets, but that Whole Foods could put him out of business.

“Any further proliferation (of chains) could and would be devastating to the Jug Shop,” he said.

Chris Schulman of Lower Polk Neighbors said that with a dozen large housing projects coming to the neighborhood, it is an important time to close the door on chain stores, which tend to be able to afford the higher rents and build-out costs that come with new development.

Neighbors “don’t want to see Polk Street homogenized,” he said, adding that Van Ness Avenue, which runs parallel to Polk one block west, is a more appropriate place for chain stores.

“Van Ness is a freeway, unfortunately. It’s not pedestrian-oriented,” he said.

Planning Commissioner Dennis Richards, former president of the Duboce Triangle Neighborhood Association, said the six-month conditional-use process, which requires Planning Commission approval, puts the burden on residents to constantly fight chains, which can afford lawyers and lobbyists. “It was gearing up for battle every time a formula retail proposal comes in,” he said.

Keeping Polk Street funky

Commissioner Richard Hillis, who voted against the ban, said he would support stronger conditional-use regulations that could address specific sorts of chains the neighborhood is against. He also said the formula ban in Hayes Valley has only served to make that commercial district among the city’s poshest — something he doesn’t want to see on funky Polk Street.

“I worry that a ban will mess up what has been great about Polk Street,” Hillis said.

J.K. Dineen is a San Francisco Chronicle staff writer. Email: jdineen@sfchronicle.com Twitter: sfjkdineen