Yeah no. Rent-seeking would be asking $250,000 just for the permit to run their hacker-space. The city is only requiring that their public space be safe and accessible, not telling them the contractors they should hire and where they are required to spend their money. Heck if the dojo members were dedicated and diligent enough they could do most of the work themselves, probably for a lot less than the estimates they've received.

Frankly i don't see where any of this outrage is coming from. They've already raised most of what they need from private donations. It seems unlikely they will actually be shut down. If they were somehow unable to raise the few tens of thousands more they needed to get up to code, it would be due to the greed and stinginess of the well-off so-called pro-business types in the bay area. If tech investors cared a fraction as much about promoting startups and the economy as a whole as getting equity and a solid return on their investment, fund-raising for this sort of thing would be ridiculously easy.

Alas most all wealthy individuals are stingy as hell; they might give you $100 if you kiss their feet and carve their name in stone. Otherwise go back to your ghetto and quit bothering them.