Following Marathon Mediation at City Hall, Club Deluxe Will Stay in Business

SAN FRANCISCO — After an all-day mediation on Monday, Supervisor Dean Preston announced that an agreement has been reached between the owner of longtime Upper Haight establishment Club Deluxe and property owner Veritas Investments, allowing the jazz and blues club to remain in its home of more than 33 years.

“Our community faced the potential of a tremendous loss with the closure of Club Deluxe,” said Supervisor Preston. ”I am grateful that all parties came to the table to keep the doors open and we were able to hammer out a deal. It was true before, but even more so as we emerge from the pandemic – our arts and our artists are what make San Francisco, San Francisco. Long live Club Deluxe.”

In early August, Club Deluxe notified patrons and musicians that the venue would soon be closing due ongoing disagreements about past and future rent. As with many venues citywide, Club Deluxe had experienced significant pandemic hardship, shutting down for a significant period in 2020 and periodically ever since, with waves of COVID variants disrupting their once bustling destination.

Supervisor Preston, previously co-owner of Market Street music venue Cafe Du Nord, then intervened, urging property owner Veritas and the Club Deluxe owner to restart lease negotiations that had derailed. Negotiations resumed in the days that followed. On Monday, Preston brought parties to the table for a City Hall mediation. Six-and-a-half hours later, a deal was struck.

“Thank you so much for showing up, and showing your support for Club Deluxe,” said Sarah Wilde, Club Deluxe owner. “Your love of this venue has helped the landlord understand it is worth supporting this small business by offering a fair lease. Deluxe will be very happily staying at 1511 Haight St, hopefully for another 33 years!”

The resolution was made possible in part by Supervisor Preston’s groundbreaking law, passed in July 2021, to waive certain pandemic-related back rent for small businesses. For the period that a small business was fully shut down by COVID health orders, the law effectively waived back rent during that time. Despite a challenge by landlo rd lobbyists, the law was upheld by a Superior Court judge in April 2022.

In addition, with support from Supervisor Preston and SF Heritage, Club Deluxe is applying to be added to the city’s Legacy Business Registry, which recognizes long-term small businesses in San Francisco, and provides benefits to businesses and their landlords to encourage long-term stability. Today, Supervisor Preston issued a letter formally nominating Club Deluxe to become a Legacy Business. “This is exactly what we created this program for,” said Kyle Smeallie, Supervisor Preston’s Chief of Staff, who served as Campaign Manager for the 2015 ballot measure that created the Legacy Business program.

“Club Deluxe is a one of a kind live music venue in the heart of the Haight Ashbury,” Preston said. “It’s a gathering spot, a place where people share community, and join together in what makes us human. I am proud that we could help forge a path to keep the music going.”

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