needs of getting into fort mason, while maintaining the benefits for fisherman's wharf as the highest priority, we're working together on. commissioner antonini: i would expect you would try to have some sort of switch at that point, allowing the f-line to continue as you described as a lot of people would want to go from the wharf to the waterfront, embarcadero, and others may want to go to the marina. i think it would bring more people, connecting the marina district what the wharf. even though it is not large, there is one hill, and sometimes it discourages people from walking along, so it could take that that would be a big benefit. i'm in favor of the whole plan, particularly some of the things that you have at the end, the five-foot height but this for the ground floor, and the prohibition on adult entertainment.

it makes sense to me. >> thank you. president olague: commissioner borden? commissioner borden: thank you for the presentation. the spend a lot of time in this area because of step kids and out of town visitors. i am excited to see the jefferson street improvements. that street is very chaotic, with all of the cars. there is always parking on the street because i don't think a lot of cars drive down. it is turning more into a pedestrian right of way, and it makes more sense. >> absolutely, thank you very much. president olague: commissioner fong? commissioner fong: thank you. this has been a public/private effort. the pitching in and the heavy lifting, as well as the financials. the most important thing, this is an opportunity for a good

part of san francisco to really become a pedestrian priority and remove some of the street traffic, the car traffic. i just want to commend that, thank you. president olague: commissioner sugaya? commissioner sugaya: yes, i think he mentioned 12 million visitors per year? >> that is correct. commissioner sugaya: and tens of thousands of people walking on jefferson. they must not have it as it -- must not have visited hooters very much, they are closing. >> i think there is an inside story there. president olague: any other thoughts? >> no adult entertainment. president olague: i want to thank you. i think this is excellent.

i think it is very observant, i guess, you identified to the challenges, i think, not precisely -- precisely. the unwelcoming design of the buildings, the way that it connects, the challenges with the automobiles, the cyclists, the pedestrians, everything that you identified is just spot on. i think it is excellent work. i know there was a lot of excitement if years ago, quite a bit of talk, so i am glad to see that a lot of those findings were expressed in this and that we have someone rejectno, -- no? from that country, who continues to work with us. i guess, i think, one thing i am hoping this encourages is more

local use. you mentioned is a destination spot for a lot of tourists, but i think with these types of improvements, a lot of folks in the city will feel more inclined to use that area. i think hopefully it will revitalize the commercial and other things there because it is so beautiful, like you said, and there is no connection between the street and the water and the view. there is a complete disconnect. i am really excited to see this. i don't know if this question will sound clear or not, but sometimes i have walked from the building to pier 39, and i know that the auditorium will be a project to be developed in the next few years, but has much thought been given to that stretch? >> on the port side, yes, a lot

of thought has been given to that. that is support staff jurisdiction, but i know the intent with the international cruise terminal and the new waterfront plaza, we're trying to create a string of growth along there that could really died and encourage you to come along. -- that could really died and encourage you to come along. i think strengthening that will be in the end critical and i know that as an ongoing effort from the city. there are a lot of challenges, but it is also a critical piece out. but other project is market street. imagine writing from castro to market street to the waterfront. it would be a tremendous asset for all san francisco residents, tourists, everyone. president olague: yes, thank you for all of this. i think it is excellent work. commissioner moore? commissioner moore: i just want

to join the choir, thinking. my concerns are not so much the waterfront, but coming from the third building on the land side of the embarcadero. i think it is a very important connection, given that the embarcadero is almost like a freeway. at that sidewalk is made wider and improved. so even if you are on the waterside and you want to switch to jefferson earlier, you have major hurdles to overcome. you could never cross the street in one light. it takes several streets -- it takes several lights to cross the street. what i want to complement the one is the fact that you are indeed trying to bring -- it was on set with the america's cup, should that happen. i think resolving that at this

time will take a lot of conflict out of that area, because it is basically more like a public realm improvement, which eliminates many conflicts and incompatible models, so i am very happy that our you are pushing this. in a way, it should be ready by 2012, not 2013. >> we are working on that. commissioner moore: good. president olague: director? >> thank you, i just want to give my thanks to neal. it took a long time to get agreement from the parties. it isn't interesting thing how this can bring the community -- it is an interesting thing how this can bring the community to rally around. i also appreciate the fact it does not just about what happens on the street but the relationship between the street and the buildings and open spaces and transportation. we're working very hard with our sister agencies to see if we can

get this done in time to at least build part of jefferson street prior to america's cup. it will be a challenge, but that is our goal. president olague: thank you very much. secretary avery: thank you. commissioners, moving forward, you are not at item 8 a and b. 527-529 stevenson street. commissioners, as you consider the request for compliance, the zoning administrator will hear the request for variance. b>> good afternoon, with department staff. this is a determination request to convert a four-story industrial building to mixed use, with 60 residential units, five off street parking spaces, and a spot ground-floor commercial space at 529 stevenson street. there were concerns raised at

the september and october hearings and the changes to the project include to reduce the number of dwellings and the product from 62 to 60, expand the interior courtyard, and originally this project was asking for exposure variants of 40 units. they decreased the number of studio units from 43 to 27 and increased the number of one- bedrooms from 19 to 33. they dedicate one space for car share parking, with a separate parking from the other spaces, and rearranged our separate the rearranged the bicycle parking. finally, the main thing, they have significantly expanded the interior courtyard. where previously it was a little more than 25 feet the last time

you saw it, now it is close to 40 feet and it really gives quite a bit of light and air to the units. the department has not received any comments from the public on this project and recommends approval of the project with conditions, as the proposal provides 60 new units and new commercial space and market area that meets all applicable requirements of the planning code, with the exception of the dwelling unit exposure which we have discussed, and the variants has been requested. thank you very much and i am available for any questions. president olague: project sponsor? >> good afternoon, commissioners. rick crawford went over all of the changes, so i will not repeat that. i would just like to emphasize that we are down now to just two

units that need exposure vari ance. we have received valuable input from planning staff and commissioners, and we worked diligently with them over the past months to improve the project. we have eliminated seven units, and we are providing 9 bmr units on site. i think this will be a great project of smaller units that will be affordable, compared to everything else that is on the market. we have recently obtained a dbi re-app letter that was circulated to the commission that covered many of the issues that were raised at the last hearing. so with all of the changes, i think the project has greatly

improved and we would appreciate your positive consideration. thank you. president olague: thank you. is there any public comment on this item? seeing none, public comment is closed. commissioner miguel? vice president miguel: i don't think anyone can question the commission sending this back when they see but has come forward this time. sometimes, the public wonders why we continue items, why we tell people to go back to the drawing board. if there is to be an absolute test case, this is one of them. i like to complement david oliver and staff, and particularly commissioner moore, who have all worked diligently on this. it is coming to us as something that should be looked at by others considering similar types of projects, similar types of

areas. yeah, it can be done. and when you come back from over 40 items that have variances, down to two, of a courtyard that probably doubles in size, close to it, out you see what can be done without expanding the foot print. it is totally possible. it is an ideal example of how things should happen. and with that, i move to approve with conditions. commissioner borden: second. commissioner moore: the issue from the very beginning was really for us to gather focus on the standards of living ability when it comes to adaptive re- use. it was in that discussion that i think ideas came about which i

can sometimes described to the commission in detail, but that is not the case right now. staff can do it as well as i can. but the developer, not you could always have an issue with the unit, but that is not under discussion today. as it is, i think it supporting the product for approval is in order. president olague: commissioner antonini? commissioner antonini: very well done. among other things that were brought up, improvements with the windows, but the elevation on jesse and stevenson makes it much more, i think, contextual, and it harkens back to its original use such a little more. that was very well done. president olague: i just want to thank the project sponsor for continuing to work with us on our concerns, and commissioner moore i know raised a lot. i want to think commissioner mou

or for that, but also thank you for cooperating with us as well as you did with the department and the commission. i think we wound up with an excellent project, and the expansion of the commercial space, other things, the courtyard, it was clear to me from this revision that you really paid attention to what we were asking, so thank you for that. secretary avery: commissioners, the motion on the floor is for approval. on that motion -- [roll-call vote] thank you. >> on the variance, in this case, third time as the time. we closed the public hearing on this item. also like to echo the thanks to the commission for their comments on this case. in particular, commissioner moore, who led the commons and

as a result, led to the dramatic improvement. >> thank you. we will look forward to item 9, kansas -- for 1401 california st.. >> good afternoon. this case is a request for conditional use authorization to modify the existing grocery store building and provide for a new trader joe's grocery store and it is cvs pharmacy, both formula retail uses and exceeding 1900 square feet in area. the previous occupant of the of the pen has closed as part of a consolidation. the project is located at the southwest corner of california and hyde streets and is occupied by a 30,000 square foot grocery store on the top level of a two-

level parking garage. it has two-way access to both california and hyde streets with a ramp providing access between the parking levels and a loading area on the bottom left. property was developed in 1961, and the building is considered a stored resource because of the building's design and construction system. the project were to divide the existing retail space and to approximately 14,600 square foot grocery store and an 11,000- square-foot pharmacy store with about 4500 square feet of common area appear the project would reconfigure the parking arrangement to provide up to seven more parking spaces for a total of 86 and replace the existing ramp between the parking levels with an elevator. the cvs stores can operate 24 hours a day provided a pharmacist is on duty. not made a final decision regarding 24-hour operations and will make that decision after the store is open. project will enhance the upper

target level to create a more pedestrian-friendly zone, and the entrance to the retail zone along the law. -- along tyhe lof -- along the loft. loading operations have the potential to block traffic on california street for short periods while trucks back into the loading dock. the condition for loading dock activities is recommended to ensure that loading operations do not disrupt the neighborhood or block traffic for an inordinate amount of time. to prevent use in the public right of way from occurring, the project will be required to implement a no-q condition of approval, which includes monitoring for cues and implementing measures -- which includes a monitoring for queues. the department has received one call, 30 e-mails, and a petition

with 65 signatures supporting the project and two letters in opposition. the opposition is not so much concerned with this particular use, but they would prefer a grocery store that has a wider range of choices and would be less expensive and more affordable than other -- to the neighbors. the department recommends approval of the projects with conditions as the proposal would maintain one of the three general grocery stores in the area, would prevent a major retail vacancy in the district, would add more competition among grocery stores in the surrounding marketplace, and introduced two new anchor stores to the disappear the product meets all the requirements of the planning code and advance the objectives and policies of the general plan. i'm available if you have questions. commissioner olague: thank you. project sponsor? >> good afternoon.

thank you to rick for that presentation and to the commission members and neighborhood groups, who have worked with us very respectfully to try to find common ground on our proposed project. today, i have hollywood was with landmark representing cbs, scott rutherford with cbs, who is the district manager, doug with trader joe's, and our land use counsel, if there are any questions following our presentation. a few key points about the project -- this is a renovation of an existing building. in all of our major interactions we had with the neighborhood and stakeholders over the years, the overwhelming concern was the loss of the grocery store and the substantial inconvenience associated with the downtime of redeveloping the site. after supervisor cju -- chu work with us to successfully get the

previous owner to extend their lease, we were able to put together a project with the combination of trader joe's and cvs. this took almost two years of lease negotiations, construction documents, and permitting. this is a single application, and the substantial costs of renovating, in addition to the tenant improvements, are being financed by the tenants. the project works with both, not one. we believe the project itself is a high-quality replacement grocery store and a high-quality drug store auction directly adjacent to and on a flat street from st. francis hospital. irresponsible companies who care about creating a safe, convenient shopping environment -- the previous owner had about 85 employees. the new project would provide about 100 or 150 jobs. both tenants are focused on local hiring. we have provided information to the existing employees so that they can follow up and be

included in a hiring process when that occurs, which is approximately nine months from now, assuming approval. if we are approved today, we are scheduled to start construction as early as january, and we can be opened before the 10 black up, which sets the worker in november. it permits that -- we have a demo permit that has been issued. we have a shell that has been submitted and a structural of great permit that has been submitted. as you know, we are focused on the formula of retail and the non-residential use. the highlights are really exterior upgrades, improved accessibility, street and our escape improvements. we are adding car share. we are adding bicycle parking. 18 spaces. we are doing voluntary seismic upgrade, and adding security. the lower level will be locked down after trader joe's closes. if cbs decides to operate 24

hours, they would only have the upper level parking to be available. the neighborhood issues we have addressed -- they wanted us to address the elderly access to the grocery store. we have identified the shop around program, which is actually city program for elderly and disabled folks, and we have connected them and understand they are planning to speak to their membership. site maintenance and security -- defense the area with a security guard from 6:00 p.m. to 6:00 a.m. that will continue during construction. we have a sign with direct contact information to our property management folks. we are out there at their request and cleaning the sidewalk once a week, or as needed. we are also including anti- graffiti paint, special paint for the california street section of the project. as far as landscape enhancements, the podium cannot

actually bear the weight. the tables would also potentially impact pedestrian situation, so we are including binges with dividers to discourage sleeping. we are also adding potted areas. we are adding seven street trees on the california and hide street frontage is for a total of nine with is currently two. for pedestrian and elderly safety, which was another issue, we are adding vehicle warning sign it and save the bumps. we are also contracting with a pest company. the was some concern about possible pests, and then we also have agreed to assess whether the addition of 18 bicycle parking is actually sufficient, and that will be something we will look at after the stores open. we have also worked with the lower pulp neighborhood association, held meetings and discussions, and they have

weighed in on the project and the alcohol issue, which i will touch on. i understand you have a letter in your packet. we have worked with pope street merchants, and there is a neighborhood petition in your packet that provides some support letters. although we are not here today to seek approval for licenses to sell off a whole, which is a separate process that andrew can discuss in detail if anybody has questions, i do want to make a few brief comments, since i know this is an important issue beery of -- this is an important issue. overall, there will be a reduction in hours that alcohol would be sold by six hours. the previous owner was selling alcohol from 6 a.m. to 2:00 a.m., and under the proposed project, trader joe's and cbs would sell alcohol from 8:00 a.m. to 10:00 p.m. -- trader

joe's and cvs. there were also be a reduction in lineal feet that alcohol would be sold. with respect to cvs, they have also committed with a separate process to work with the police department and neighborhood groups to not sell nuisance alcohol, and cvs is currently also working on a purchase of an existing problem license in the neighborhood, not an additional license. as i mentioned earlier, our tenants and our team are available to answer any of your questions, and we thank you for the opportunity to present this renovation. we are ready to go, assuming that the project is approved. thank you. >> thank you.

i would like to open it up for public comment at this time. >> you can start. >> my name is joe nolte. can i go ahead? good afternoon, commissioners. the final project with this location, i have no problem except for the kind of chill use with the potential liquor license with the store being open 24 hours. that is what is in your packet. having four cvs stores in the

city already, only one selling beer and wine on 32nd ave. the newest one on market street has automatic check out. how do you check it for liberalizes is with that type of check up? this in the conditional use -- as you see, this is the current ad for this week for the city, and this is a full page of hard liquor. on the other side, more liquor that they are requesting. so i have a question of that. originally, they did not do that kind of stuff in there advertising. i would prefer joe's get the license. the commission has denied liberalizes is in this area previously. seeking the commission to put conditions on the trader joe's

license today, they listen to the presentation that they are not seeking conditions, but i do not understand that because they are coming in front of you with the pack of four bookstores, seeking conditional use for the licenses. it is kind of -- the project sponsor is saying one thing, but the paperwork says something else, so that is why i'm addressing the liquor license today. thank you very much. >> thank you. >> linda chapman. i want to express concern about the fact that although it was obvious people did want a grocery store there, we were sort of blindsided in that they signed leases for cbs and trader joe's as a lot -- as opposed to a large, general grocery store. then, they held a public