It could have been the third year for the Sunset Night Market in San Francisco, but organizers said this year is a no-go after funding and planning issues.

"Well-received on many levels, but at the same time, it really was bigger and it just brought so many more people than really is expected for the type of community event this was meant to be. So, restructuring to find that balance for the community, and fill all the needs we were trying to meet with this event," Angie Petitt, the founder and owner of Sunset Mercantile, told CBS News Bay Area.

The Sunset Mercantile collaborated with the Sunset Chinese Cultural District, along with other partners, beginning in 2023 to host two Friday night markets. What started off as a three-block market along Irving Avenue soon expanded to seven blocks with about 150 vendors.

Petitt said while she is grateful for the 20,000 people who popped by the market last year, the unexpected turnout overwhelmed organizers.

"Was perhaps so well-marketed that it just brought too many people out. We would really like to create a market for the Sunset, yes, of course, everybody is welcome. It's not a desire to make it bigger and create even more structure around this large behemoth of an event. It's more about how to tamper it down to a community event again," she said. 

"If there's too many people, and expectations that don't feel organic, then it's just going off in a little bit of a direction organically where it should be," she added.

The city granted the night market $120,000 to host the event, but organizers said they didn't get the funding until about eight months after the last market was over. Officials said there was a delay in the accounting system that prevented from a quicker reimbursement process.  

The Sunset Chinese Cultural District sent CBS News Bay Area a statement, in part below:

"Unfortunately, due to a series of circumstances beyond our control, we weren't reimbursed by the City for the August and September 2024 Sunset Night Markets until May 2025 - 8 months after the last market. With this delay in payment, we did not feel confident planning another night market until we were fully reimbursed for the previous markets. The Sunset Night Market Collaborative is committed to planning and producing night markets to ensure the continuity of its success.  We are working with OEWD to create a night market more in scale with our community, and something the Sunset can be proud to have."

District Four Supervisor Joel Engardio said he is proud of his district for kickstarting a successful night market that inspired several other markets in the city.

"The Sunset Night Market proved what was possible, we had 10s of thousands of people come out and activate a street that has never been done before. And what you see now? Night markets all over San Francisco," Engardio told CBS News Bay Area.

He added, however, that there does need to be more fine-tuning before the next market.

"How big should the night market be? It was a colossal success, maybe too successful. We started with 10,000. And then 20,000 the next year. How much bigger can it get? It's hard to sustain, it's expensive," Engardio said. 

He wanted to clarify that they aren't cancelled for good, they just need more time to figure out what is sustainable for everyone. 

"Everyone loves the night market, so there's no way that's going away," the supervisor said. "We're hoping to bring it back early next year, maybe in conjunction with Lunar Year, that would be amazing. But unfortunately, it's just not happening this summer or fall."

 The Outer Sunset Merchants and Professional Association also sent CBS News Bay Area a statement, in part below:

"As the event grew, it did become more challenging to manage. However, make no mistake: the vast majority of merchants along the Irving corridor found the Sunset Night Market to be a fantastic event and are eager to see its return. We're currently working closely with fellow merchants, the community, and organizers to explore how we can bring back another amazing night market experience."

However, some local businesses disagree about its return.

"I think night market's really fun. I'm from Taiwan and it's part of our background and history and it's always good," Teresa Tseng, a partner at Noori Pakistani & Indian Cuisine, told CBS News Bay Area. "But, it doesn't really benefit us, and then actually causes us trouble. Trouble means my regular customers, it's harder to getting here and there's no way to park. And for delivery, the driver has hard time to get food and they end up giving up."

Noori Pakistani & Indian Cuisine has been open in the Sunset District for more than 15 years.

Tseng said visitors who come by the night market do not visit many of the local restaurants. She said she hopes the city can focus on other ways to boost local businesses.

"I would say the homeless issue, and then the streets need to be cleaner because it's hard for us to maintain it," Tseng said.

Meanwhile, organizers said they do plan to find more collaborative ways to make sure businesses like the longtime Halal restaurant also benefit from future night markets.

"Also have some fun ideas of ways to incentivize folks to shop and dine and patron those businesses. But it also needs to come from those businesses of being creative," Petitt said.

CBS News Bay Area also asked Engardio whether he believes pushes for his recall may have led to the postponement of this year's night market.

"Politics have nothing to do with night markets. It should have nothing to do with night markets. Because night markets are about bringing people together, experiencing joy. That's what night markets do, that was my vision for the night market. And I completed that vision with the help of all of these community partners, and we want to keep that going," Engardio said.

CBS News Bay Area also reached out to Mayor Daniel Lurie's Office, and a spokesperson with the Office of Economic and Workforce Development sent this statement below:

"Conversations about a future activation are ongoing, and we're excited to support an event that champions local businesses and celebrates API culture," Kate Patterson, the director of external affairs, said.

• San Francisco