that might might be home to oakland or another team or mainly total and other facilities right on the estuary probably in the bay area. the other area where we see obvious growth is in our restaurant industry and so last year in the new york times, as -- london we are very proud and i know those are isn't that correcty comments and not really these are my friends in san francisco but if you have been to if you have not been to some of the hot new restaurant, they are just a block away, i'll buy you a particular i can get to dictionarily's -- if i take the train in 15 minutes. and today i spend 45 minutes on the boat but you know-bridge and in terms of the very very big transit of

economic [inaudible/incomprehensible] we have talked about transportation and we have talked about the growth in housing, and some of our hot new sites oakland city is a city that has five -- and one of them is in the era of development, in the city, we plan mainly developments around each of those -- it's taking off right now as under construction, we are planning out chlic seem and the chlic seem city, we are hopeful that we will eventually get through the development on the last -- san francisco. and -- south. but in terms of the issues of real estate, in august, oakland had the fastest

turn around of residential construction in the country -- [inaudible/incomprehensible] average our rental market now ranks fourth in the nation for both and that is still not 70% of san francisco and so definitely there is a lot of investment there and fortunately, irents are on the way up and the commercial industrial, rental and down to four% vacancy. the vague 83cy is very similar and so we are seeing people beginning to pull the 2,000 condo and -- units that we had approved before the recession pulled and to start those up and so in 2,000, howing is ready to go and we have major beginning of interest in commercial space on the board way quarter and height limits.

so we are i was saying looking at some buildings in shanghai hong kong and thinking i wonder how they will sit on broadway and meanwhile, we continue to be one of the greatest cities and over 100 miles of bike lanes and i have a little competition on that i'm ahead of him thousand and we are one of the city that is have changed the way that -- knob snub and we are proud that what we have been able do that and we are one of the most liveable laces in the world, oakland has better climate, but we are an amazing place to live and an amazing place for creativity, so, we have pandora and the little cluster of software companies around had a and we have a very nays-growing industry and many of the flackets you see are dhoastled

in oakland, and new or gangs food products under the -- cost potential now are being manufactured in oakland and so we have what i think is a really balanced, balanced economy. so, what we are not talking about crime but, i just -- [inaudible] approximate was not part of the agenda but what are some of the challenges and part of the challenges is more i think the perceptual reality of crime and this is a year of where crime went up everywhere in san francisco and san jose and quite frankly and i'm being very honestly about this because of what the president said the other night we are for the not going to end -- unless we get the universal background check on gunses because california and oakland have some of the strongest laws in the country but the guns come in across nevada evidence and we need all

of your help to support the president on this. because if you care about the violence in america cities, we have to have -- it's a no-brainer if it's legal for a teenager to have a machine begun in the streets of urban america and that is leading to this higher murder rate across the country it makes a difference. so, if you need to we need you to help support the president on that and you can do that and my organization is to -- to help the obama administration we can bring down violate crime permanently if we also refer to the issues of giving opportunity to young people and hope. and oakland more than other cities we have more people that have been left out of the america dream and as president obama said the other bay; day, we all have to rise as

americans we have this amazing -- in the next year and the pledge i make for my nun i couldn't think people is that we will rise together and so we have summer jobs and internship that we can take here in san francisco for young people in the parts of oakland and young african american that are still dropping out before they finish high school and i think if they get a job or an intern ship in the summer they are less likely to drop out and so that is what i'm ep ending with and oakland is a city of hope that we need help and that is what we need do is support the american dream by making sure that everybody in the city rises and so thank you very much and we look forward -- [inaudible/incomprehensible] my admiration and love

and understanding of what the culture is experience i have been here for 50 years, our 50 is one of the greatest cities to ever rise up and stand up if you meet people from oakland, they are some of the warmest people they carry hope, they use fire they -- oakland is a hub of creativity we are who we are we are political, we are artsy, we are musicians for the entrepreneur oakland is the fantastic place to be your base you can relax absorb the culture and create. and you can look for us to be a technology hub going forward and we have never been followers. and have always been leaders. it's a very unique place and a great place to live. i relax by driving through and gatherings and

reliving great memorize of being a kid in oakland and then i may end up just parking around little grand lake theatre and drive down and take a look at the paramount and so if there is a play that is happening and so the first thing that i tell people is go to jack land square and you will be surprised that we have a square and so shore line and it is the it could be the giving of great say food and go see things that inspire me about oakland is again it's ability to change. for every think that you would every say negative about oakland, i can say ten positives we are our own city. oakland to know it, is to love it.. >> (applause) all right. so thank you mayor khan and now we have for san

francisco coming up and to sso to welcome mayor lee welcome kristine row wish senator vice senior vice president of service area of case zero permanenta. >> thank you peculiary if you have questions write them on the cards and hold your hands up. kristine good morning case zero permanent at a is pleased once again to be a sponsor of this annual event where our mayors come together to share their vision for the coming year. our partnership with both oakland and san francisco is of key importance to kaiser permanent at a. we provide care to over 400,000 people in those city and is our partnership with those cities helps us fulfill our mission, to improve community health. because we

know that, with improvement community development and economic vitality we get better access to care and better care. we have enjoyed a robust partnership with mayor lee since he has taken office and even before when he was the city administrator for 20 years, his dedication to the citizens of san francisco and their welfare, have made him an excellent advocate for healthcare access through such programs as healthy san francisco. so please join me in welcome can mayor edwin, lee. . >> thank you crystal and may i give you your value tine. thank you. >> mayor khan, made in san

francisco ... all right, good morning everyone. okay. i'll try not to isn't that correcty. and i isn't that correct isn't that correct key. and [spelling?] and so i want to thank all of you for being in san francisco and webcore and others who have been such a great part of the success in this city and i want to thank my great friend mayor khan for coming over here and later on, later this year we are going to be traveling over the new span of the bay bridge and joining each other with governor brown as we celebrate in september with largest construction project in the history of the bay area and we talked about it last year when we were thinking about how to

celebrate this bridge crossing and we made some cultural connections. and something about our ancestors helping to build the railroads here in the 1800 and is now two chinese americas mayors of our country coming together on the bay privilege. just something remarkable about that. you know, a year ago, i appeared before you, to talk about what we were planning to do, it was the year of the dragon, the dragon meant that we had to be bold, take risks and that all of the elements around the dragon tell us, us forward to take the biggest risks we could for the good of our residents and i'm happy to say that now, that we have with about to celebrate the year of the serpent or snake it's considered in our culture the minute aye dragon which

means not so bold not too risky, in fact kind-of what you would think a snake would do still going in the right direction but figuring out how to get there smarter. that is what we are going to. and it will help help us guide what we had already signaled as our bold promises a year ago in strapping something both mayor khan and i did we said we have to create jobs and recovery from economic challenges and in san francisco we did just that. in fact, when we signaled from our technology company that is they were telling us that our payroll tax was a job-killing effort here that we had to change it. what we went ahead and fixed and it and got it done and after the dishandling of the

redevelopment towards find a lasting solution to fund affordable house and is did that with the creation of affordable housing fund 30 million-dollar a year for the next 30 years to build affordable housings and to insentive eyes builders to get more housing on their sites and and invite police and firefighters into an emergency responders commute in san francisco to hmm with the down payments of the first too time home buyers efforts we were asked to vest? our neighborhood park and is streets and we did just that with our million dollar general obligation bond to build and construct more open space most importantly, we put san franciscans back to work and we have a growing economy and we have invested in our city. so the year of 20 if we will, was

about getting everything done. and when we did that, we were complimented by an unemployment rate that went in the last two years from 9.6% to as of december, 6.5% one of the lowest in the whole state of california that meant that 31,000 people got jobs in san francisco putting a lot more people back to work. today, when we run around our city, or ride around it or walk around it, you can count 26 criterions in the skyline of san francisco. that means thousands of good construction jobs, all residents being a portion of those constructions from the central subway to the new crudes ship terminal to the trans bay terminal that you see being constructed and the pictures of the new tour the tal tallest building west of the mississippi

will be under construction shortly. nearly 11 million square feet of commercial office space was leashed out last year and 11 million is equivalent to 20 trans america buildings. half of which belong to the technology company that is have started here grown here and come here from other places our airport had a ground breaking record 44.5 million passengers passed through san francisco in 2012 that was that is an 8.6% increase from the preview years and we expect that to be broken in 2013. we have truly become the innovation capital of the world something that we probably announced last year and we have that with 1800 technology expect s and pulled over 32,000 employee and is growing everyday

in fact. the growth ---we have strong public partnership with these technology companies, we signed just this past week, community benefit agreements with twitter as they began increasing the employment along market street. and those c ba.'s are incredibly important to us because they were as many historic companies that came to the city did for many many years, they represent the relationship that we want to have where the companies are not just making good money and employing a lot of people but also, looking at the environmental surroundings where they are located and seeing what they can do to help lift up those neighborhoods. so they are investing in the employees and signing agreements to say that whether it's a memorial or a kitchen to help clean up and

use the great theme that the giants have given us which, is the "giant sweep," remember that? we are using that as the city wide effort to keep our city beautiful. sparkling and clean and educating youth and provide the scholarships and support for them and using culture -- about the cleanliness of our neighborhoods and respecting our neighborhoods all throughout our city. we are also engaging the bright technological mindsen joining us in s f city and join the chambers in creating jobs and training for those last year, last summer, over 5,005,000 and eight jobs were created for summer for our youth, paying jobs every single one of them and this year we expect to exceed it with your help and the help of other companies here and we need to create hope in every

aspect for our youth as mayor khan said they are going to inherit the city and the successes that we are pawk talking about today, they are going to also inherit failure and is we want to have less failures with their invest and investment in them and in companies like sales force zooma and at which timer are all leading the evident with the 1800 other technology companies to help us create this investor confidence that companies are leading they started to come to transportation to participate in had very strong innovatic spirit whether it's the pack 12 enterprises or pine tress, my own daughter getting married much october is using pine tress this october for her wedding plans and that is great. so it's not just the job creation because in talking with

continual company and is as well as our chamber of commerce members we have to invest in our education we have we have been in front informed in a deliberate way that many companies started here and want to grow but they are running out of talent and they are having to look overseas where we could be creating generationings's of people that have the stem and steam skills. science, frontpage, engineering, arts and math. those are the key skill sets. and i had a chance to meet with all of our san francisco chancellor and is i see chancellor here today from -- state and he joined me with chancellor helm man from uc s f city college our own public schools superintendentent to form a major education leadership counsel to advise me

in making sure that the skill sets that we need in the jobs in the future are being trained and reflected in the education curriculum and how to support not only the institutions, but all of the different programs that we can use to lift up all of the educational stands for our youth i have person learn adopted 12 middle schools in san francisco to make sure each principal gets what they need to campus to support teachers effort on campus to raise the educational needs of the schools. middle school is the biggest challenge with truancy and educational challenges and we know that while we are increasing the performance stand of the whole cities one of the highest increases in the whole state is happening here in the

public schools in san francisco they are to the satisfied with just a bump we need to taken it at the highest levels and train from elementary to middle to high school and the college all of the kids in our skill set is so they can become the grounds for recruitment for every industry in our city that whether it's healthcare, technology, or whether it's tourism, and all the other great things that are happening in our city. and in fact we invested in 2012 in kid s f a special program we got funding from from the government federal department. labor to create the technology training center tech s f to reach out to disadvantaged kids in our city and make sure that they are getting the skill sets and the support that they need to so they can get in and really help

us get rid of this digital guide that we suffer from and continue to suffer from in many of our communities and so transit center district plan, it's approved in september, if you see the cranes going up - you will know and you should realize that this center will represent 27,000 jobs just in that corridor. four -- of thousand new homes will be built as a result of that center and one thousand new hotel roonrooms and dwell acres of new open space and you are going to ask me where is that open space going to come from? imagine this it will be open space that is above the current surface ground, new spaces with the connection of all the towers, so look out for that that is going to be a such an exciting welcome toth for the high speed rail and as that as a transit hub with all of the connection that is it has to

the rest of our 70. we spoke a little bit already about our water front. and we she know that peer 70 is where we are going to make it happen with s f made manufacturing where the covenant we have four thrive companies manufacturing already -- in san francisco from the -- that i chocolates that i just presented to mayor khan to everything from wood shaw bags to do do case which are the upper covers to ceramic and is so many other thing being made here and assist in shipping out those products to the port of oakland to the rest of the world. we are creating for our local manufacturing companies a sense not only that they can manufacture here in a good business climate, and establish those plans here in san francisco at peer 70 and other places but that we will help them as a city to create

international market. we are not just satisfactory with national markets, technological expects pharmaceutical company and is products and have the opportunity to work with me. san francisco has the highest concentration of counsel general office and is international embassy offices outside of new york and washington dc we will utilize the city relation to create international markets and they are already capital resistist and is that is why our airport is so throng because of the international visitors coming in. all of this leads to something that i have been pushing very strongly as our theme. investor confidence in san francisco. and we are strong enough that just this week,-moodies increased our

ratings for the general obligation bond very few cities can say that is happening in their down right now. we did the right things create reserve after reserve i have been in those rating meetings and they are like interrogation meetings kind-of like a deposition if you have been to one of those and they are asking every single question that is hard to answer questions like if the state famous you what are you goingdo about it? what do you have in place if the federal government fails in their successstration what programs are failed here and what plans do you have to recover?. if you are not answering those with a lot of confidence you are not going to get the moodies rating increased at all and if you are able to do that with a solid t and i want to thank again the board of supervisor and is i know supervisor chu and reno are here today but i want to thank the entire board for

creating an entire investor confidence because it's that level of collaboration and partnership that we need in every one of our economic discussions to have and build on the successes that we have already seen. putting people back to work will continue being -- a thing that i'll lead with the board of supervisor and is whether it's in education, or in the transportation that we have identified, in the technology, and the healthcare, in the gulf of mission bay that continues to be so strong that pharmaceutical companies from other countries wanting to locate their offices here so that they can collaborate with the innovative spirit that is going on in mission bay, i want to thank all of the leaders in our mission bay from the private sector as well as the public sector, uc s

f for an ling that for happening and i want to touch on what mayor khan said we can never be as successful as a city as we want to be unless we pay attention to the gun have the vls in our city and is no different than mayor khan or any urban mayor across the state or country. we are extremely concerned about our gun violence we have to reduce it. and you already know what we have announced in san francisco the possession the very possession of powerpoint ammuntion or automatic weapon tree has no -- in our streets or inner city and is so we offered our own legislature locally but we also know the very reality is just controlling borders won't help and so we have asked all of the

mayors and county administration across california do the same and joined our state legislature and some eight other seniors to support their effort state wide and to support president obama and senior fine fine stein on their national events and i want to take a moment to make sure that we hong hospital members of sandy hook continue keeping them in our minds and but also, that things that are not as announced but every single week whether it's oakland san jose or san francisco, that is young kid and i get this text every night calf can american meal 17 -years-old victim, to the chess, to the head. we have got to end this gun violence we have got do embrace, strategies that work so that, you can keep our cities safe. that will help us, as

much as education is, as much as investment in housing is as much as investing in buss as well. it's got to be the whole package and i don't care what poles say or what political groups say it's the right thing do let's all join together and make sure that happens. (applause) i'll close i want to thank dan and tim for awful their good economic analysis, i think they guided you with that i'll be happy to answer questions in a moment but i'll close with a type thought: you know we are living today in an extraordinary city at a very extraordinary time. a time where there is really anistonnishing innovation and really unlimited promise. and that for this innovation are being created by our own people here in