I really hope someone opens a new one. It always seemed to be a profitable business, with people lined up to get in. And the expenses, hmm, all you really need is a big, divisible space, some furnishings, and a staff. There are probably some significant licensing and compliance costs, but none of those seem insurmountable.
Not sure I understand the public/private difference? Anyone can get into Citadel and Edges... you may need to buy a membership card but those are nominal compared to a year's entry fees.
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Isn't the Citadel still open?
http://www.sfcitadel.org/
Also, the new Edges down in San Jose:
http://www.edges.biz/index4.html
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