Club Deluxe to remain open after owner reaches agreement with property owner

SAN FRANCISCO (KRON) — Club Deluxe, the long-running SF jazz and blues club, will remain open following an agreement reached by the club and the owner of the building in Upper Haight where the club has operated since 1989. Deluxe had been set to close at the end of the month, but following an all-day mediation on Monday between the club owner and Veritas Investment, an agreement was reached to keep it open, according to a press release from Supervisor Dean Preston, whose district includes the area where the club is located.

“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.”

Earlier this month, Club Deluxe’s owner, Sarah Wilde, announced the club would be closing due to a dispute with Veritas Investment.

“It is with sadness, and a hint of disbelief that I must let you know Deluxe will be closing,” read the letter posted by musician Cathy Lemons from Wilde. “We do not need a GoFundMe. We need the multi-billion-dollar real estate company that owns our building, to allow a fraction of their portfolio to remain occupied by small businesses, artists, the unsigned musician, the carpenter, the waiter, and the single parent.”

Club Deluxe, like many SF venues, faced “significant pandemic hardship,” according to the press release from Preston, “shutting down for a significant period in 2020 and periodically ever since.”

Following the announcement that the club would be closing, Preston, who was once the co-owner of Cafe Du Nord on Market Street, helped restart negotiations between the club and the property owner. According to the press release, Preston brought both parties to City Hall on Monday for a six-and-a-half hour mediation, during which a deal was finally struck.

“Thank you so much for showing up, and showing your support for Club Deluxe,” said Wilde. “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!”

According to Jeff Jerden, Veritas COO, “Our goal in the months of working on this was to get to the successful outcome we have today keeping the Club open. We’re very appreciative of Supervisor Preston, for his work helping to get this deal done.”

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In July, 2021, Preston helped pass a law to waive certain pandemic-related back rent for small businesses. According to the press release, this law helped facilitate the resolution to keep the club open. Club Deluxe is also applying to be added to the San Francisco Legacy Business Registry, which, according to the press release, “recognizes long-term small businesses in San Francisco, and provides benefits to businesses and their landlords to encourage long-term stability.”

Supervisor Preston issued a letter to formally nominate Club Deluxe as a legacy business, according to the press release.

“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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