there are 11 ayes. >> this is passed. item 21. >> allowing for a $15 million loan for an existing affordable housing project. >> if i could ask you to please take your conversation outside. the last item was unanimous. item 22. >> it is a resolution structuring of finance committee to develop criteria and recommendations on the use of

finance district. >> this resolution is adopted. >> item 23 as an ordinance allowing the appeals commission to send all packing material to the mayor's office of disability. >> this is passed on the first reading. >> it is a resolution approving supplement by comcast cable communications against the city. >> this is adopted. we have a number of special items today. i would like to take up this item and then moved to the pet food express item during yen -- pet food express item. could you please call the 10

items? >> the following special orders were authorized pursuant and approved on august 10 and also in communication with the clerk. the items are the public hearing of persons interested in the determination of exemption for property located here. you want me to read item 33 for your item 36. -- item 33 is through item 36. >> it is my understanding that both parties have off for continuous through september 28. i would like to ask that we do

that. if we could do that without objection, all of these items will be continued until the 28 of this month. if we could call of the items related to pet food express. >> item 37 through 40 are the public hearing of persons interested in the public planning commission conditional use permit for property at 3150 california st.. item 38 is a motion approving the condition. item 39 is the motion disapproving the conditional use application, and item 40 is a motion directing the clerk. >> we have before us the appeal of conditional use for california street.

[please stand by] supervisor, and you have any opening remarks?

>> no, i'll look forward to the hearing. >> why don't i aske for the appellant or any representatives of the appellant? >> my name is susan, and 90 appellant -- i am the appellant. i represent a coalition of independent shops 24 members strong.

as you know, last week was challenging. it was particularly difficult for us, and many the shop owners were in las vegas at the time. bobby is going to tell you the rest of our story. >> we have been of business for 19 years. our job is six blocks from the proposed pet food express.

we are here to ask for your help and support. every city across retail landscape now looks alarmingly similar -- every city's retail landscape now looks alarmingly similar. let's not waste an opportunity. independent pet retailers are in the same position small pharmacies were in. we have a city full of walgreen's and office depot. in november of 2009, a

conditional permit was denied in the marina. if anything, the status of california street should be even less desirable than the status of lombard street. on july 8, the planning commission approved a conditional use permit for a food express to open. the three members appointed by the board of supervisors voted against this. we are appealing this decision on behalf of many who stand opposed to this chain store. agaiwe sell significant amountsf food and commodity items that are also sold by pet food express. if we have a pet food express

six blocks away selling virtually the same products, our sales are going to suffer. given the proximity to my shop, is this necessary, compatible, or desirable? i have already experienced the decimating affect cut food express can have on the retailer. since it opened six blocks from my other place in berkeley, we experienced a decline of sales of 22%. on chu lai 8 we found the planning commissioners overlooked the city planning code. i would like to address those of this time. it states that san francisco is a diverse and distinction neighborhood. we believe the project proposes

to establish formal retail and therefore affect the economic diversity and unique character of that neighborhood. our coalition does not believe this should be excluded from doing business in san francisco. they already have two businesses. 703.382 says san francisco needs to create a supportive environment for small business organizations. it resolves the existing uses be a -- be preserved and enhanced and future opportunities are and hence. the 24 stores currently supplying the neighborhood are doing an excellent job.

allowing pet food express will be a job-killer. if this were allowed to continue to proliferate, the net effect would be damaging to the city. 703.385 says many are more likely to circulate the and money by corporate retail. as the eighth largest in the nation, the pet food express corporate headquarters is located in san leandro. at our hearing, a pet food express was a virus that when they expand operations, they might want to consider doing so in san francisco. it appears they are expanding

but not in san francisco. they are completing work on a warehouse in oakland. next up is kathleen of the small business commission, which is one of the association's. thank you very much for your time in protecting the distinct and averse neighborhoods -- and diverse neighborhoods. >> good afternoon, supervisors. i am here to reconfirm the position of the small business commission, which has

consistently regarded the applications as an unnecessary and endangering small businesses we already know are suffering from our recession right now. i also wanted to point out that the owners chose to reapply nine months later and less than 1 mile from where they were denied the first time. that is because they want to go after the same shoppers. reagathe reason why the indepent pet stores are you need is because of the business structure. they rely on commodity items such as food to pay most of their bills, and an operation like pet food express has the

ability to negotiate price. this allows them to a absorb large discounts offered to customers to lure away customers from the existing neighborhood businesses. these businesses cannot compete with a chain store, especially one known for predatory pricing. we want to see are vacant storefronts filled with businesses, but destroying a category of small businesses is not the way to do that. i am looking into reusing the large formula chain spaces as sites for our light manufacturing products that are really doing well in this town. these would provide space for manufacturing and a retail store. one only has to look at a

successful local business to see the commercial appeal of such uses, so let's be creative. we are not a suburb filled with generics, and that is why people live, work, and visit san francisco. please support the appeal of these small businesses today. >> any questions to the appellants? i will ask if there are members of the public who wish to speak and support the appellant. each member will have up to two minutes to speak. i only have one speaker card, so if i could ask her to go first, but anybody else who wishes to speak on behalf of pre appellant, please line up. -- on behalf of the appellant,

please line up. is she here? please step up to the microphone. if you could please use the microphone. >> i believe i should be speaking after the second group. >> are you speaking on behalf or against the of p.o.? >> against. -- against the appeal? >> against. >> you will have an opportunity in a little bit. >> i am speaking on behalf of the appellant. i would like to make one point. the food express was requesting to be located in an underserved neighborhoods, and we are not convinced they didn' the busines

surge. of>> good afternoon. we have one store located in district 6. ha hthey have a conditional use permit.

in the findings of the executive summary, they downplayed the community's support. they stated that the department received a phone call from bob be white, who said he had signatures. he is the owner of a boutique that store. additional letters from associations requesting the denial of the conditional use permit and letters were attached. hawkthey were contesting the opg

of pet food supplies rigid pose food express. i would like to mention -- the opening of pet food express. i would like to mention we have customers much more comfortable driving to their neighborhood shop. >> i can say that low prices on

pet food have adjusted our business so severely we are not even selling pet food. one quick example of how we cannot compete, i have a receipt for high quality pet food. it results in a price of 50 cents per box. our wholesale price is 45 -- $54, which is $3. we would make 75 cents. we cannot compete with that. there are other examples where

we could not sell a certain bakery chief -- bakery tree. one last thing is they do not compete with other pet cos. this show lower quality of food that competes with supermarkets. the food express sells high- quality pet food. they directly affect the business washington is trying to support and that is vital to the community. san francisco does not need more chains. >> next speaker. >> i am speaking on behalf of the san francisco green party puree good part of the reason we

-- on behalf of san francisco. the bigger they get, the more will leave the neighborhood and not circulate. the other one touches on what the last speaker just said, which is predatory pricing. let me read something to you i got just about an hour ago. it is something we criticized last year, and it is still on the website. "are low price guarantee. pet food express will be a competitor's price on any

product we sell. if a competitor's price is $10 or less, which will be the price for a 10%." it gives some details of a particular purchase. we consider any retail store in the bay area to be our competition. what small business could possibly stand up to a chain as large as pet food express with the power it has to keep its prices low when it has a statement encouraging people to come and. >> i live a few blocks away from here. it is not too often some of

these come by that involves close friends of yours. people are struggling the same problems you are. isn't that what this is about? keeping a vibrant, integrated san francisco? >> next speaker. >> good afternoon. when pet food express opened on market street, i saw a 5% increase in my business. the food express and texaco keep opening stores -- pet co

keep opening stores. i am in opposition of them open in. no doubt the independent pharmacists heard the words. what are you worried about? it changes the landscape. who cares? not only does the city looked different common -- does it look different, but the money is disappearing into the coffers of big business. i employ you do get the studies -- to look at a study. they have come to the conclusion that chain stores have a negative impact on local

economies. a gooa slight shift diverting jt 10% of purchases from a large chain stores to locally owned businesses create 1300 new jobs and nearly 200 million in income mental activity. the reverse is also true during get a 10% -- the reverse is also true. 10% shift would have a negative impact. >> next speaker. >> thank you for your time. ghraib last time i spoke, -- >> last time i spoke, i said it would drive other chain stores to follow suit.

this is how slippery the slope can give if you allow it. -- can get if you allow it. we would not object to pet food express coming into neighborhoods. the independents were never designed to compete with a chain. they will open up one independent store to serve one neighborhood. that is because pet food express is devour in the hard work with

limited resources during your the -- with limited resources. when pet food express opens a new store, they immediately offer discounts. quoting the magazine article, they can service 100 new stores. there is no way we can compete with this spirited >> next speaker. -- we can compete with this. >> next speaker. >> i am the sales manager.

our first store is two blocks away from pet food express on market. when they open, we were forced to close our doors. we're asking that you resend the permit for the proposed location and prevent further encroachment on our neighborhoods. thank you for your time. >> ♪ pussycat, pussycat, i love year oou ♪ ♪ yes, i do ♪ you and your pussycat bia eye♪ ♪