With the fate of its prime Castro Street location apparently in limbo due to it being housed in the building that contains the historic theater, the Castro Nail Salon was designated a legacy business Monday. The city’s Small Business Commission unanimously approved the addition.
Last week, the San Francisco Historic Preservation Commission unanimously recommended the nail salon be listed on the city’s Legacy Business Registry. The Small Business Commission’s approval was the final step in the process.
The nail salon, at 431 Castro Street, and the Castro Coffee Company, at 427 Castro Street, are in danger of losing their leases as Another Planet Entertainment moves ahead with its renovation of the theater, which it took over managing in 2022. The Nasser family owns the building that houses all three businesses. The nail salon and coffee shop may have to leave by June, as the Bay Area Reporter previously noted.
APE has said it has nothing to do with the smaller businesses’ leases.
Mayor Daniel Lurie noted the importance of legacy businesses following the small business panel’s vote.
“Our legacy businesses have served our communities for decades, and we are committed to creating an environment where they can continue to thrive,” he stated in a news release.
Cynthia Huie, president of the Small Business Commission, stated such businesses contribute to the cultural fabric of the city.
“As a small business owner myself, legacy businesses inspire me,” she stated.
At the March 19 historic preservation commission meeting, Riyad Khoury, owner of the nail salon, spoke about the importance of his business.
“In many ways we help with fundraisers and nonprofits,” in the community, he said.
Khoury also noted the ongoing lease situation and said that “hopefully,” he can continue talks with the leaseholders.
“There is no other place for us to move,” he said.
While the Castro Coffee Company was not up for a legacy business designation, Khoury nonetheless put in a good word for his neighbor, saying that it, too, provides a lot of local support.
“We’d like to continue our work there and hope to come up with a good resolution,” he said. “We support APE coming in to the theater. I’m hoping we’ll continue to provide that service.”
Richard Kurylo, a gay man who’s the legacy business program manager for the city, told the preservation commissioners that while a business usually needs to be at least 30 years old for the status, there is an exception for businesses that are at least 20 years old and in danger of displacement. The Castro Nail Salon qualifies under that exception, he said.
Historic Preservation Commissioner Jason Wright, a gay man, asked Kurylo about assistance his office can provide to displaced businesses.
“The Office of Small Business has staff,” Kurylo said, adding that having a legacy business designation “can be helpful in a few different ways.”
Historic Preservation Commission Vice President Ruchira Nageswaran praised the nail salon.
“I hope you’re able to continue your work in the neighborhood,” she said.
Chris Foley, a member of the historic preservation commission, said that seeing it remain in the space is preferable.
“It’s really difficult to move,” he said. “The longer you can stay in the current location, the better.”
John Dacey, a staff member of the San Francisco Planning Department, noted in his report that the nail salon is a 21-year-old immigrant- and minority-owned business that has long served the LGBTQ community and others. It’s a member of the Castro Merchants Association, he pointed out.
To be considered for legacy status, a business needs to be nominated by the mayor or a member of the Board of Supervisors. Gay Board of Supervisors President Rafael Mandelman, who represents the Castro, nominated the nail salon, according to the planning staff report.
He previously told the B.A.R. that it was “unfortunate” that the leasing issues have materialized for the coffee shop and nail salon.
According to 2021 data published by the San Francisco Chronicle, the parcel containing the coffee company, the nail salon, and the theater is owned by Bay Properties Inc. and Steven R. Nasser. The three-unit property was assessed at a value of $4.9 million.
The Nasser family could not be reached for comment. No one spoke against the nail salon’s legacy business application during public comment.
APE spokesperson David Perry, a gay man, previously disavowed what he phrased as a “rumor” that APE wanted to acquire the spaces housing the coffee shop and nail salon.
"We're not going to comment on a hypothetical," he stated. "At the moment we're focused on getting the theater open for the community."
As the B.A.R. reported last month, APE had initially announced a summer 2025 date for the opening of the theater but pushed it back due to ongoing electric connectivity issues with which APE has a disagreement with the Pacific Gas & Electric Co.
APE's changes to the interior of the building had elicited opposition from community members, who contended the plans amounted to a wreck-o-vation. Groups like the Castro Theatre Conservancy and the Castro LGBTQ Cultural District lobbied to landmark the fixed, orchestra-style seating inside the theater in an attempt to prevent APE from replacing them with seating that can be retracted so that the venue could be used for concerts as well as for cinema.
These efforts failed, and the theater's interior was landmarked by the San Francisco Board of Supervisors, though not the seating.