audrey asked the economic question of me almost immediately after taking office. it benefits us the truth about $55 million in tax revenue. nightlife is the only significant industry in this city that sometimes gets treated at times as it is a nuisance, a problem to be managed. and of course, we have to focus on making sure it is safe and that people are complying with the laws and that we are not having shooting. but when you get so focused on combating the negatives -- every industry has the negatives. you can sometimes lose sight of the positives and we know there are a huge positives for nightlife in the city.

we know that a lot of our street shares are at risk -- street fairs are at risk of being given fees to death. we have completely outdated the planning commission like that mission how are used district, which makes it extremely hard to do anything alcohol related in a big swath of the mission. there was a bowling alley that wanted to go in at 17th and van ness and they were not going to be able to do it because they would have been banned from even selling beer. that is the tip of the iceberg in terms of planning provisions

that make it hard to foster a knife in the city. we are not always consistent with how we deal with liquor licenses. they can vary in different parts of the city. i know the chief is working hard to establish more consistency. i just want to say that the chief of police is probably the most pro-nightlife chief of police we have ever had. i think he understands it on a personal level. i appreciate that. until recently, we did not have anyone at our office of economic and workforce development that actually focus is on night life as industry. and of course, as you know, our transportation system does not support not live that well. we do not have nearly enough cabs so that people coming out and get along without drunk driving. bart -- bars to not stay open late enough.

i do think things are changing at city hall and with city government generally. in the last budget process, we read able to get a full-time person in the office of economic and workforce development who will focus exclusively on nightlife and entertainment. that is a huge step with the positives of the industry. i would have worked very closely with supervisor chiu to get a budget for the entertainment commission. at times, the entertainment commission has been set up to fail because we expect all sorts of enforcement and make sure that people are cracking down on the rules, but we have not committed the resources necessary to do so. we are slowly doing that to make sure that they can meet their mission. and the of all special use district that i mentioned before, i think we lost -- we will finally start seeing some reform there. we have a lot more work to do. i recently asked the economist

to supplement the impact study for the night live with a similar study for outdoor fairs and festivals, which we know contribute mightily to our economy. i'm very committed to seeing the planning department put together an entertainment element of the planning code, so that we can understand and keep in mind that we do not do things, for example -- adopt the western some of plan that will put too much housing on the street. housing always beats nightlife. it always does. we have a plan for that. we need to rationalize our fees and scott street closers system, which is not serving the city, in my view. we need to repeal the archaic

codes that undermine nightlife. and we need to continue to support our great state senator mark leno in its never-ending quest for a call at that locality. [applause] but we have to also keep in mind that this industry needs to be more and more organized in order to have the political organization as one supervisor, or two supervisors, there is only so much you can do. please come and get more organized. my colleagues, david and my colleagues need to hear from you. build an alliance with the

business community. one of the biggest champions is that california chamber of commerce. we know it is good for business. and please, organized with the neighborhood bars. there are so many great neighborhood bars in this city that could add that neighborhood element to political organizing. and when you are a district supervisor, it is one thing to have nightclub owners come to you. it is another thing to have neighborhood business owners like bar owners coming to you. we need to organize as a bar owner and that will move us in a positive direction. i am optimistic about the future of night life in this city. i think we have turned a corner. there's a broader and broader consensus that this matters for

the broader culture of san francisco. thank you. [applause] for many years, the entertainment commission -- >> for many years, the entertainment commission, which has been under the auspices of the city was guided by ed lee. he is now the mayor san francisco. he was going to be here today, but was called away. but he sent paul anderson to deliver a message. [applause] >> not ed lee. but i play him from time to time. the mayor wanted me to appear today and he wanted me to welcome all of you to discuss these very important issues.

obviously, with the amount of influence and impact that nightlife has on san francisco, that is obviously very important to the city, and to the mayor directly. it is so closely tied to what makes san francisco such a beautiful city, and so closely site -- tied to what makes san francisco -- what makes people want to come to san francisco and live in this city. it is important to what we do and many of the businesses that exist here on an ongoing basis. we have 16 million visitors a year. that is in no small part due to the activities associated with the night life and this city. that is not lost on all of us. one of the things that i think it's important to the mayor and myself as i sit here today, and i know that you guys are going to be focusing on, i looked out

and i see so many pieces of the city family here engaged in this conversation. i think it is really a measurable thing that you have the chief of police introducing today's conversation and today's forum with you in addition to having the board of supervisors as civil the understand the work that you and why it is so important. having individuals like -- one of the board members spoke earlier about having oewd focusing on this. all this matters when you're trying to work collaborative late. part of the problem in the past has been people working in individual silos and not sharing information and focusing collectively on what we are trying to get done. we want to grow the numbers. we want and i like to understand

it -- to understand. i think it is great that so many people are here, that we have invigorated leadership from the and bigger -- the entertainment commission and the work that king is doing. i looked out in the audience and i see alcohol and beverage control here. all of the players are at the table in order to move the ball forward. i am encouraged, and the mayor personally wanted to welcome all of you here, and hope that the work continues to get done so that we could continue to make san francisco the premier city that people want to come to to visit, to shop, to spend money, to eat, and to be entertained. he wanted me to personally mention that he enjoys all of the activities associated particularly with food and music.

lots more food and music, because those are the things that he likes to see in the city and that he sends his friends out to when they visit him as well. thank you all for the work that you are doing. i am confident that we are engaged in the right type of work by having the meeting that you are having here today. i know the mayor wants to follow this closely, and we are following this closely to make sure that if there is more that we can be doing as a city, then we can get it-and we are out -- we can get it done because we are working together. thank you very much and we look forward to working with you as a city and i will look for you at the events. thank you. [applause] >> thanks, paul. what is music and food without libations? i mean, what are we if we are not serving alcohol?

i know some of us had issues with our abc licenses and some of us do not. i will bring to the stage the director of the california state of all beverage control, who has agreed to take a couple of questions after its presentation. if any of you have questions for the abc, you can come to the microphone down at the end of the aisle. keep your questions short and concise. please welcome jacob out cosmit from california alcohol and beverage control. [applause] >> thank you for having me here today. it is a real honor. i was born and raised in berkeley. a big moment in my life was taking the transit over to san francisco for my first show, which was the specials. when i was a young, poor person in san francisco, which most young people in san francisco at

least at that time were poor, just because of the cost of living here. i used to go to all of the clubs and places. my dream was to when they appear on stage at one of them. the closest i ever came was to putting my name on the open mike list at the old -- the open market from its at the elvis crossed. [laughter] i did not make it. now i have become a bureaucratic the city of sacramento, which seems like a pretty glorious way to go. but i have met some pretty fantastic people through that. i'm eager to work with you on all of the issues that you have. there's a great staff that operates the office in san francisco. they resolve most of the problems that we could possibly face. there have been a couple that people live come -- have asked me to come down and meet with them on. i am more than happy to do that

when there is something that we cannot resolve at the local level. san francisco is a place that we are very proud of. we got kicked out of our office, just by the landlord and the release. there is a lot of political pressure on us just to keep the political office closed. as most of my staff will tell you, there was really one person who thought it was the perfect idea to stay in san francisco and pay the market rent, and that was me. maybe state bureaucrats did not like that some much, but at least one of them did, and that was me. we are delighted to be in san francisco. it is important for us to be on the ground. we have 25 offices around the state. because of groups like this and how supportive you are and how hard we try to work with our

license fees and the public, despite all of the challenges you would expect, san francisco is one of the few places where calls come up to my level. i have all sorts of things that are -- that seem very, very challenging all the time, all over the place. you guys are about the least i hear of, and that is a great thing. i want to thank you for cooperating with my office. anytime you want me to come down here and talk with you, happy to do that. with that, i'm happy to take any

questions. >> i may permit consultant in the city. i want to thank you for coming to this because it shows that you really care. i want to ask you a question. some of then transfers for an eatery that serves beer and wine to patrons, when someone wants to transfer or someone else wants to buy the license, if it says on there now live music or no entertainment, and the new person that -- no live music or no entertainment, and the new person that purchases it, they want to modify the conditions. they realize if a petition to modify the conditions, they run the risk of maybe not having the

license transfer to them should the modifications be declined. some of these laws on the books a little archaic, and i will give you an example. we now have live entertainment in san francisco, which allows amplified music until 10:00 p.m. if the conditions has no entertainment, and the entertainment, it also includes this limited live provision. we have determined in the city that this legislation is good -- good legislation. there's no conditional use requirement to have this. a lot of people today want to have food, drink, and be able to have some music. how can we get the limited live entertainment excluded from the know amplified or no live entertainment excluded on the transfers? >> that is going to mostly

driven locally. most of the conditions you'll ever see on an abc license are because we rely, to a great extent, on the police department and local officials to determine what is best for their communities. i'm not trying to pin this on you guys or blame you guys, but we do try to work with you. we do not tend to want to overrule the police department very often. now that said, i get a fair number of petitions and appeals to me. typically, they are from the neighbors. i want to see that there is actually a practical problem posed -- that the condition is there to solve, not that this is the way the things have been or maybe there's someone who is satisfied by what is potentially wrought by having live entertainment.

it is always a case by case. generally, very deferential -- i am very deferential to the removal of conditions that do not appear to be solving any problems, and by removing them we are narghile posing any problems that we cannot then thereafter solved. >> director apple smith, thank you for coming. i represent about 30 or 40 entertainment venues in san francisco, new york, and moscow is. i have a technical question about county transfers. -- and lost vegas. i have a technical question about county transfers. right now, there are very few buildings that you can lease in san francisco anymore. this town has gone nuts in the last five or six months. there are no liquor licenses to purchase. i have strong connections with the liquor licenses on line and

some of these people. i am sorry that the top of the list. i have 48 license requests that i cannot fail. i have a two-star michelin restaurant that is moving from downtown out into the mission that the only thing i can do is throw a quick 41 on the place because we can -- because i cannot find a 47 or 848 to do it. i would like you -- or a 48 to do it. i would like to think about some injured county transfers. -- enter-county transfers. there are a lot of restaurants that have a million dollar construction costs and cannot find a license and are freaking out. licensing has gone to about 128,000 this month. we assume they will surely go to 150,000 and probably more. we need some more liquor licenses.

>> to that, in part, i would say that is a structural problem, and largely driven by our statutes. this governor is very pro- expansion of business. and in favor of things that make this city and state great. there is mileage from your local representatives on this. the governor is going to be supportive of whenever you want to do in the city of san francisco. -- what ever you want to do in the city of san francisco. >> i own a corner bar and i'm basically in the same boat. i am an entrepreneur and i want to open another bar and not got a lease in hand. i'm in danger of losing the lease because i cannot find a license. what i am wondering is, is it possible for that number -- i did not know we were saturated.

is it possible for that number to change? can we control the market driven licenses, perhaps? you hear of a license is going for sale in new york or new jersey for half a million dollars. that makes a small-business man like me, that boggles my mind. and it boggles my mind to think i might have to go up to two hundred thousand dollars. what is the likelihood of the supply increasing to meet the demand? the city is growing. in south beach, there are cranes everywhere. we will need these licenses. how will we get them? >> i can repeat what i just said, but in part, that is something that we need to have pushed from the local. right now, there is a bill applying to napa. i'm sorry, marin county.

it is the same sort of problem. part of the argument is -- just like i it was a kid coming in, people come in from all over the area to eat in san francisco restaurants. they come from all over the world. again, this governor is going to support everyone locally. i lot of that will have to come from you to accomplish what is right for the city. how do we do that? >> [unintelligible] >> i blame these guys for conditions. this time, i will blame fee on the mall and senator leno. -- fiona ma and senator leno. their limited by statute, but that is very difficult to have much room to maneuver. >> you said to organize local bars. i have been trying to do that for a few years now.

we have our sixth annual event coming up in september. we have been trying to get toger a long time. i am not a politician in do not care to be a politician. if i cannot raise the issue in that way, the way i have been doing it, personally i get quoted in esquire for what i have done, but i still have no connections. it is still up to me to do that? i am doing everything can. i do not know what else to do besides try to make a profit in a city that is over-taxing the and running down. [applause] >> i do think that you can do a lot through talking to your city supervisor and working through that process. i am telling you, there are ways

that began help you. alcohol is a local issue on this type of matter. what we are behind would you guys want to do, whenever that is. a lot of times we do not always have statutes that make that much sense. it is partly the ways that the laws have evolved and we are the ones who are stuck with enforcing them the way that they are. that does not necessarily mean that we think they are particularly good ideas, but we certainly want people to grow, prosper, and be saved. that can be achieved in all sorts of ways. we want to work with you on that. thank you. >> i was the founding president of the entertainment commission. i retired and went on to found the culture association, the first trade association statewide for night life, bar,

and restaurant activities. i am here with a question that plagues a lot of these license holders, who desire to have their establishment opened for all age dance parties, or 18 and up, and are being handed a restriction in the conditioning process that requires them to sell 50% food and 50% alcohol, in direct contradiction to the underlying statute that defines a bonafide eating place and put an onerous requirement that cannot be met and makes those business owners immediate felons and creates a situation where our all ages cultural institutions are challenged when ownership changes and there is an opportunity for this new conditioning. for a long time i have been the advocates for either aids license type or the relaxing of the 5050 rule, because i do not

think it would stand up in a court of law. i am asking you to direct your staff to look at that. the problem that it purports to solve does not exist and we would ask you to have them removed so that those of us who seek to serve a larger, wider range for each region wider age range can do so without restrictions that makes us immediate crooks. [applause] >> i hope that does not make you a felon. i totally agree with you that that standard is silly. that is one that we have generally applied, basically, through accounts. on a case by case basis, when those come before me, i have generally not held to that, because it does not make a lot of sense. it very much depends on the establishment. there are certain places where you will never get that, like a fine dining establishment.

with you guys, we are just trying to avoid a place that does nothing other than serves alcohol and every once in awhile microwaves a burrito. we have been working to find a better way to go with that. we have a crummy statute, and that is not an excuse, i am just trying to point out the challenges that we have. we really have tried to come up with something where we can have a target for what we're trying to avoid, fraudulent restaurants. >> i love the idea. >> the willingness to take this challenge on, if it needs to be done legislatively, as he has told me this past week, whenever we need to do, the impetus and strength behind the need for that change to be made is here, present right now. i would embrace your willingness to take a look at it. >> i promise you right now that

i will call allison and talk to her about that, if that is an issue they want to take on. you guys are great for that, because that issue has really hit the logical mind. that would be great. >> thank you. [applause] >> thank you very much, director smyth. now the fun begins, i get to introduce the executive director of the entertainment commission, joycelyn came. [applause] look at all of these people here. this as twice as many people as last year. i'm sure it is a