Randy Shaw, longtime San Francisco activist, attorney and editor of BeyondChron.org, says that the Huffington Post business model might work on a local basis if the Chronicle closes:

A new Bay Area Internet product modeled on the Huff Post could get its local stories through its own staff, and by taking pieces from Beyond Chron, sfbg.com and other on-line news sources. It could recruit great volunteer political commentators from the local area, tapping the Bay Area’s deep talent. The paper would have two paid, top-notch sportswriters that would draw readers to the site.

How is such a product economically viable? The same way the Post is doing it: through advertising. By offering a product not available elsewhere on the Internet, this new online newspaper will be attracting readers that advertisers want to reach.