SF planners delay decision on proposed Whole Foods 365 in Russian Hill

The building that formally housed Lombardi's Sports store, located at Polk and Jackson, is seen in San Francisco, Calif., on Saturday, May 28, 2016. The SF Planning Commission will be holding a hearing on Thursday, June 2, 2016 to discus a proposal to turn the space into the city's first 365 by Whole Foods Market. less The building that formally housed Lombardi's Sports store, located at Polk and Jackson, is seen in San Francisco, Calif., on Saturday, May 28, 2016. The SF Planning Commission will be holding a hearing on ... more Photo: Laura Morton / Special To The Chronicle 2016 Photo: Laura Morton / Special To The Chronicle 2016 Image 1 of / 3 Caption Close SF planners delay decision on proposed Whole Foods 365 in Russian Hill 1 / 3 Back to Gallery

After more than four years of contentious debate about everything from housing to the future of small business in San Francisco, the city’s planning commissioners decided Thursday to give themselves another month to consider converting a former sporting goods store into a Whole Foods 365.

Commissioner Milicent Johnson pushed for the commission to pick up the conversation on Nov. 8 to allow more time to assess the proposal, which includes housing — five studio units, and that Johnson argued is not enough.

She wants the developer to consider adding more units — possibly by using half of the second floor of the building at 1600 Jackson Street in Russian Hill for housing.

“I’m not a huge fan of continuances, but where we are in this situation... for me, the issue is whether we meet a community need,” she said after roughly an hour of debate among commissioners following public comment. “I’ve stated again and again I want housing at this site.”

Johnson’s motion to continue the discussion passed with only Commissioner Kathrin Moore opposing.

The planning commission had delayed action on the store in April, asking property owner Village Properties to explore the possibility of doing some housing above the Whole Foods 365 store. A 365 is a slightly discounted iteration of the Amazon-owned high-end food outlet.

Owner Rob Isaacson of Village Properties said the housing — only five units could be squeezed above the store — didn’t work economically but that he would work to include the residential units if required by the city.

The decision to continue the debate came after dozens of residents, local small business owners and frequent visitors to the quiet neighborhood each gave about one minute of comment Thursday.

Though many residents said they were largely supportive of the grocery store, a number of locals expressed concern that affordable housing was an afterthought in the proposal.

During Thursday’s public comment period, a representative for the Middle Polk Neighborhood Association called the five unit proposal “laughable” and said it would not benefit the community.

Commissioner President Rich Hillis agreed there should be more housing than the proposed five studio units.

“I was disappointed with five units of studios,” Hillis said. “I’m generally supportive of (the proposal) but there is a nervousness that it is Amazon.”

Robert Twyman, the president of the Northern California region of Whole Foods, assured the commission and community members present that Amazon did not design the proposed 20,000-square-foot grocery store.

“(Residents) wanted a full-service store, and we continue to propose a full-service grocery store, not a fulfillment store,” Twyman said, referring to locations where Amazon packs and ships products to customers. “We designed this, gosh, two years ago. Amazon did not design it.”

The land use battle — in a part of town where development is rare — pit resident against resident and business owner against business owner. Many speakers spent their minute-long-comments condemning Amazon for its potential impacts on small businesses, referring to the Whole Foods 365 as “Amazon 365.”

Some independent merchants said allowing the Amazon-owned chain into the neighborhood would decimate the cheese and wine purveyors along Polk Street who lend Polk Street character and distinguish it from the myriad big box stores than can be found in any suburb.

“Five studios is an insult. You couldn’t live there with your families,” said Ray Bair, the owner of the nearby Cheese Plus, motioning to the commissioners. “(The studios) are just to make you happy so you can pass this.”

Michael Priolo, the manager of operations for The Jug Shop, a wine, beer and spirits shop, said small businesses would be forced to compete with the grocery store juggernaut — a fight they would surely lose.

“(Whole Foods) will also cripple the traffic on Polk, which is not being addressed,” Priolo said. “Please vote against this.”

Commissioner Dennis Richards said a retailer of Whole Food’s “magnitude” has “staying power” that could benefit residents in terms of convenience, but may negatively impact the neighborhood over time.

“So who benefits and who pays?” Richards said. “Local merchants pay. Amazon shareholders benefit. We can’t have it both ways, so I’m not completely convinced.”

Others said new shoppers would help pump new life into a shopping district that has been hit with the same struggles that have harmed other retailers at a time when folks are increasingly shopping online.

Some residents who live just nextdoor on 1650 Jackson Street, many of whom lived next to the building for more than 30 years, said a grocery store is sorely needed.

A representative with the Polk District Merchants Association disagreed, though, stating the neighborhood is hardly the “food desert” some residents are portraying it to be.

But in the end the biggest disagreement came down to housing: many residents said that 1600 Jackson represented one of the neighborhood’s only opportunities to help address the housing crisis with meaningful residential development.

The San Francisco Planning Commission will pick up the debate on Thursday, Nov. 8.

J.K. Dineen and Lauren Hernandez are San Francisco Chronicle staff writers. Email: jdineen@sfchronicle.com Twitter: @sfjkdineen Email: lauren.hernandez@sfchronicle.com Twitter: @LaurenPorFavor