Believe what you want but the Magic Bus fiasco last year is the very reason this is happening now. Not that the Magic Bus was asked to pay more to rent the space but the story that blew up behind that fact.
The City was out to get the new owners of the property where the Magic Bus used to be, and after giving them tickets for not getting a permit to have a cement parking lot in the back yard, telling them that only people that lived there could park during game days, giving one of the owners a couple of tickets for bootlegging, etc.
Basically the City was out to get them, once those property owners showed the court that they weren't doing anything different from all of the other property owners on Melrose were doing the City was left with egg on their face for chasing their tail trying to shut down only one of the 30 vendors on Melrose on the basis of selective enforcement.
So the City acted like the spoiled brat that doesn't like losing who took his ball and went home to ruin everybody's fun.
I have never used any of the vendors on Melrose and won't miss them if they are gone but that isn't the point, once again the City just needs to make sure that they screw with everything.