corrections of these things. the very first one that was talked about,at was talked about 1849 van ness, work has gone on there, which was a problem. storage of chemicals was a problem. a lot of work had to be done to make that safe and secure. that's been done. there is a 24-hour fire watch as well that goes on in that building to make sure things are going appropriately. i also want to point out that with regard to all these permits, not only are we paying for the inspections that are undertaken, we are paying for staff time. we are paying penalties. we are paying permits. we will help out the budget here. we are trying to cooperate in anyway we can. and they noted that we -- with one notice we have agreed to vay

indicate one building because -- vacate one building because of a violation and because we couldn't make it comply, we felt it was best -- there was no reason to challenge the city's determination on that so we are vacating the building. so i do want to point out in specific response to your question about new buildings, we are looking at new buildings. i'm only aware of one new building that we are looking at and that's all i have been informed of. as with any developer we represent, we contact the department and say what can we do. re-- we review the code on our own and check with the planning department to make sure

something can be done. there is nothing really -- i think the city attorney would advise you can't prevent us from buying buildings, what you can prevent us from doing, we cannot bring it into the academy's activities without the appropriate approval process. and that's where -- there may be a time we may be buying buildings in the future for our future use, but we would need other subsequent aprovals before we could bring it into the academy's operations. chair maxwell: i do have a map of potential buildings that you're interested in. >> that's a potential area. we aren't interested in every building in those areas. chair maxwell: all right. that you're interested in. and my concern is i know just one in particular was in my area on jild avenue and someone came

in and asked for a change of use. and my concern is that we have been planning in that area for a very, very long time. it seems to me that before you bought the building, you should have found out what was going on and if your use was a complement to what we were doing and then coming to me and saying, we want to build a gym out of it because this was part of our produce market. we have been planning the use and the revite lization of this produce market for years. so that concerns me. what did you learn from the flour -- flower martha you don't decide to go in. you need to talk. and this is america and this is san francisco. we are up for selling you buildings, but it's important that you at least find out what

the use is because, you know, for me, if it's up to me -- the sky would turn orange before -- the sky does turn orange, let's say the sky would turn another color before i would say ok without you coming in and doing that and that's what you have been doing over and over again. that is the concern. when do you learn and what do we have to do? we should take some real measures and you understand when kids don't seem to get the message and the teacher has to flunk them first and maybe that's what we need to do, because it's very concerning and when i look at areas on your map here, and there is certainly -- it's central waterfront, candle stick and one that is about to adopt a plan, so there is planning going on in all of

these areas and the way your history has been, you don't ask first. you just buy first and then you decide to find out what it is you can change and go in and do and that has been a problem for a lot of us in the city where we try to plan things out. so i think it's important for you to be good neighbors and to understand. i mean obviously a lot of other developers, because we have a lot of development, they seem to get it. and if you want to be successful, i think you need to change the way you do business. i don't know whether you are a part of doing it, but somebody needs to get a handle on this, because if not, we are forced to do other things. and i am at this point where i'm more than willing to do whatever is necessary to bring you all into some kind of line with our city and what we plan to do so you can be a part of that. supervisor mar.

supervisor mar: i thank you for your direct involvement and complying with the city and on the institutional master plan. the letter was sent in february and you said you were going to provide updated information, i think it's the 2008 institutional draft. there were 11,000 students. by 2012, they were anticipating 12,500 and from 2007 to 2017, to expand to 24,000 students, which is basically doubling in 10 years their population. a question was raised last time, how many of those students are online students and how many would be living and impacting san francisco communities and infrastructure? >> i think i don't have the details of that in the master plan, but that's what it's going to be and let you know, we were already at 16,000 students and

growing even faster than those projections were and that's why some of the data that's going into the new institutional master plan had to reflect that use and more. and because of that, there is even more pressure to do the online classes. supervisor mar: i'm pleased that the environmental impact review process is moving forward and also will be getting the information on the institution national master plan update hopefully soon. >> you are absolutely right that anybody going into a particular neighborhood has to know not only what the planning code says -- is permitted in that neighborhood, because that's easy enough information to get, but what the neighborhood believes they would like to see in that neighborhood. and i would admit to you there seems to have been a history in the past where that may not have been, you know the operation of

the academy. i think what's forced the academy not only the city's efforts in its code enforcement with us is it's -- its own planning efforts in forcing it to make -- think longer and harder and what they are growing to. just in the last few months, because of the planning efforts that not only we were on our own, but planning efforts from the department, we were able to streamline shuttle bus service, which improved the quality of life for all of us in the city. chair maxwell: thank you for that. and is there a senior person in charge of your building and compliance and what your plans are? is there somebody that goes out and maybe now if they weren't before, in charge of finding and doing some of that groundwork? >> two or three people in the

academy who deal with -- some deal with building operations, maintenance, some planning. the planning staff is a relatively new position in the last year and he is here today. and there is also the building maintenance and building operations and all of those people are available -- had been available at the inspections and at recent meetings with the department. chair maxwell: and do they have the ability to file for permits and kind of do what needs to be done? >> yes. there have been a considerable number of permits already taken out. some of those permits go back. there have been some difficulties in getting the department to approve those permits because of the use issues that the department has and we are required to take names off of spaces and make sure that the permits were only for health and safety matters.

and the concern of the department is by approving these permits, they don't want us to have the impression they will approve the use of this building as part of the academy in the future and their present use of building this up to code, does not preclude them from denying use in the future. i want to make one other point. there are very mineor violations on -- minor violations on virtually all the -- electrical and plumbing. i would defy any building in this city to find -- they wouldn't find one thing wrong. some of these buildings do have violations and those are actually easily realm yee --

remedied. chair maxwell: the fact that we had to get to this point, that's where we are now. i have been working with you all a long time, years and years and years and we have gone over this for a very long time and finally we are making some progress and i think that's a good thing for all of us involved. you know, just another question, recently there has been a lot of talk about, you know, nationally about private institutions and the money that they receive per student. do you know -- is there somebody here who can talk a little bit about that issue? about federal grants and just a concern about how for-profit -- i guess regarding the amount and percentage of total revenue that private, for-profit colleges, such as your institution derive

from federally guaranteed loans and how much federal funding -- did your academy receive over the years? >> i'm dealing with the physical uses. but i don't think we have someone here who can answer that today. let me just check. if not, we can make sure -- >> i can send you other questions because in our next one, they would be able to do that. >> apparently this is a question that has come up recently and we are preparing materials for the city on that but we don't have that person. chair maxwell: who is here? >> paul is here in charge of planning. we have a woman i just spoke with who is in charge of housing. she is not an employee of the academy. but the housing operation is a

separate function, which if contracted out she handles that. chair maxwell: colleagues, do you have any -- from planning. and i'm assuming you mean they are doing planning for the institution? >> yes. chair maxwell: i asked earlier about some of your -- what you're looking at throughout the city some purchases you might be looking at, long-term, short-term, i just want to know your goal. and i know the institutional master plan is coming out. but it seems like you might be going forward even before that. so i wanted to know kind of what your goals are right now. >> the academy -- the academy is looking for new areas of growth and especially during the

planning process with the environmental document and we realize the value to look at the future. that's what the purpose of the study is, the potential area we may want to go. there may not be a building we have identified but the potential areas and determine the potential impacts and have a discussion with the city itself. no specific building we are looking at right now, but we are being more open with the city and looking at projected growth areas. chair maxwell: what are you looking for? >> looking at buildings, our academic uses that will fit projected growth for our employees, storage for maybe academic storage facility that we need, just ways to accommodate all of our future growth in our departments and our employees and our staff. and we are looking at buildings

in terms do we have studio design, buildings that may -- we may need for employees. we aren't looking at one type of building but multiple different types because of the different uses, from studios to lecture halls, to employees. not one cookie cutter type of building that we may need in the future or tomorrow. chair maxwell: is there anybody that's in charge of when you look at a building, ge gaffic area and you find a building in, is there somebody that's in charge of going in that neighborhood or area to find out what's going on and what the potential growth is or what the plans -- if it's a planning area? >> when we're looking at these projections, we have our needs. so i might get a call from the president saying we are looking

at these potential buildings or someone called me up for -- about this building. i would call up our attorney. and if it's allowable use, do we need permits. since i have been on board, we want to look at the process and requirements and making sure that we do go after the building, it is outlined when we update it. we may contact our facilities department to say, what's it going to convert this building to meet the needs of staff? do they have room to put extra printers or a building that has high ceiling. if fits drk it fits that type of use, when we go to the planning department, we ask them is this type of use allowed. chair maxwell: and how long have

you been with the academy? >> two years now. chair maxwell: i haven't -- you haven't said that you go to the neighborhood or the community and i think that's part of what we have been missing and i'm trying to find that out if you have learned anything from the flower martha you need to talk with -- flower mart. and they will tell you that you need to have a dialogue with communities. >> for instance, one good example is that we had received a number of calls to looge at the bridge motel on lombard. so we had an internal meeting that was open to all the neighborhood leaders where the police department attended as well as the neighborhood and the staff. we talked about potential use of that building. it was a good meeting because

the meeting was in support of a potential acquisition of that. so we are reaching out and asking people, too. may need to do a better work in advertising, but we do talk to our neighbors. chair maxwell: supervisor mar. supervisor mar: there are different community projects that you support and rebecca is here that have worked on a number of community projects. but thanks again for improving the communications between the different departments of the city. i did find a transportation study from 2009 and was able to look at the expansion plans of doubling the student population. and it looks like for onsite students, those who are in san francisco, the transportation report says about 9,200 students on site and 4,150 students

online. i think that's about 2/3 on site, 1/3 online and about 1,578 in dorms or housing that's provided by academy art university. i think those dorms are one of the institutional housing questions that came up in the last hearing. but looks to me the expansion plan include about 500 to 600 new onsite students per year. so 2008 to 2012, the population is growing from 9,000 to 11,000 onsite. and that is a growth of 500 to 600 students per year and large number of faculty and you want to add 1,000 new faculty and staff. looks like it's an increase of about 700 more faculty from

1,228 faculty in 2007 to nearly 2,000 in 2016. are you still on target for those numbers of onsite students and increasing your faculty and staff? this is from the transportation study from 2009. >> i don't know the exact percentages but we have been growing in student demographic and staff. we are meeting the student needs on campus. and i would like to mention that in terms of -- as we develop a strong relationship with the planning department since i have been on board and working on the environmental document, these projections are for the planning process. it doesn't mean that the academy is going there, but the planning department has asked us to get a better gasp of where we're going and learn what the impacts are. even though you see those areas on the map, doesn't mean we are

going there but it helps flesh out for ourselves and the planning department and the community that these are potential ideas and potential impacts and when we get the feedback from the environmental document, we'll see that maybe area one or two is not a good idea. they will accommodate our future growth, which may be 5% or 10% a year. supervisor mar: i was going to finish up that from the suggestions made in the last land use hearing from january, i think a lot of people were questioning the expansion plans and its impact on communities that supervisor maxwell was saying, but getting the numbers more specifically on transportation impacts and other impacts so we're looking closely at if you had 500 to 600 more students per year to san francisco neighborhoods around where the various properties you have, i think we are trying to

look at a dollar amount of how much that impacts the neighborhoods and how much can be offset. our office has been working on. so we are looking very specifically at the institutional master plan update as you bring it and the environmental impacts report. >> i want to make sure that everyone realizes we we look at the projected growth, it involves not only onsite students and offsite students. there is a large number of students -- that may live here or not live here. chair maxwell: thank you for that. getting back to -- i understand that these are only things that are possibilities that you're looking at, but i'm just asking that in those possibilities, part of what you plan to do is looking at the plans. if you are interested in soma,

parts -- there are public plans. and you look at the plans and you see if what your use fits in and then you make a decision, but you don't buy it first and then come back and ask us to change the plan or fit you in when you are not a use and that's where the rub comes in with communities. >> if i may respond to that. that is an excellent point and the current environmental process and we can provide more details, but looking at future growth areas, they look if there is an existing plan on file and they can go through those documents or ongoing processes so we are both on the same page and not contradicting each other. that's the environmental process is helping us flesh through so none of us are standing on our own island. chair maxwell: thank you. we will open it up to public comment if you are finished with

presentations. why don't we open up to public comments and we might have more questions to you. public comments. i don't have any cards, but please line up. >> madam chair, miami brad paul and i want to congratulate the planning department. they have done real progress. i wanted to address a question, what is so unique about this institution? and i think there is a good answer and frightening answer. most institutions that we know, san francisco state, u.s.f. have an idea of maximum ceiling of people they will serve. it might be 5,000 students, 20,000 students. but the academy have a barrier-free admissions program. you write a check, you enrolled. with the 16,000 students they

have, with a certain percentage pang $20,000 for the full use of the institution and part-time students paying $8,000, that is a quarter billion dollars a year in tuition. they are incentivized to keep growing and growing with no end. 5% to 10% a year growth rate they could double in size every 10 years and there is no end, because they are a business model for doing this. they aren't the traditional u.s.f. model. imagine if someone said we are going to build a 500-bed hospital. we will have to double the number of beds every five years and we have a map of where we might do that. and this is the map that you have in your pakistan. these are the -- in your packet. these are the areas. four of these areas, one is to

be adopted. you have the central waterfront area. and to not be talking to the people that were involved on city-appointed c.a.c.'s that could give you information. and the reason i'm concerned, hearing about the bridge motel and there were a dozen organizations that were at your last hearing, but a lot of community-based organizations said why are we letting them can bill dcannible this. if it were better managed, it would be very affordable housing. to convert that to student dorms is the problem we are trying to deal with. the fact that they are talking to some people in that neighborhood is great, but they

should be talking to people who care about the affordable housing in the city without taking it off the housing market. and finally, i wanted to mention that in terms of the rent control ordinance, a question was asked earlier about whether or not they are covered by rent control and we think they are. and that would have a real impact. chair maxwell: why do you think that they may be subject to rent control? >> the rent control law as i understand it has a number of just causes. first of all, the head of the rent board, in the planning department's report, last page, you will see that it says while the department had stated in earlier staff reports that the dwelling units are not subject to the rent control, recent

statements by wolf, january 11, 2010 suggest that the rent board has been treating units as subject to rent control. the rent board works on a complaint basis, so they don't go out and make statements. but if someone were to complain and if you look at the rent law, there are a number for evictions. so if the rent law were to be systemically enforced in their buildings, it becomes less and less viable for them to buy up buildings to use as student dorms. over time, more and more people living in their dorms will not be students because you aren't allowed to evict someone because they leave your school. it is an important distinction and one you should ask them. their website used to say they weren't under rent control. i don't know what they would say if you asked them that question.

chair maxwell: if someone can answer that, i will be asking that question about rent control. >> i'm tony kelly. thank you for calling this hearing. we wanted to stay in touch. supervisors, one of the most every day frustrating jobs in organized labor is the actor's representative lobby in orlando. the he canity representative deals with the disney corporation and performer at disney world and there are labor violations, pay violations and every time the representative has to contact disney about that, the response is, oh really? what's the penalty for that? what's the fine? we'll send you a check. click. click. that is that person's job every