department of building inspection, planning department, etc. finally, we had to address the fourth pace, and that was payroll tax. everybody knows that one differentiator, is across the border, is we charge you for creating jobs. which is remarkable. we should be incentivizing job creation, but we tax it, the payroll tax. the good thing is we don't have a gross receipts tax. don't forget that if you go down to a place like l.a., they may hate you on the other end. we struggled, trust me. the first tax cut in san francisco in well over a decade. this town is famous for tax increases, and we want to the board of supervisors and asked for a tax cut and we got it. it was a very close out the vote. the sky was on to fall, give "

-- big corporate giveaways, everything. we went from one medical device company, claiming it was by attack because we had to feel better, -- claiming it was by attack, because we had to feel better, and we want to 7, 8, then we hit 20, 30. until we hit that magical number of 60. and here we are today, to my enthusiasm today with our 73rd biotech company in san francisco. frum want to 73 in just the last few years. it is something to be enthusiastic about. but it did not just happen. i am not saying it is city hall that makes everything happen. quite the contrary. it went on vacation, people say things seem to be going right. but it is about changing perception, doing the little

things. when a guy calls from the mayor's office climbing to be the mayor and says we care that he can slightly believe it. he believed it enough to come out here. howard is a legend. i don't want to say everything, but we sat in his living room and he said, trust me, this business is tough. you have to make huge investments. sometimes they pay off, sometimes you learn from your failures. it is remarkable to see someone who took cerna overnight from a small company to a huge company that merck bought, and now to see what he has done in just a couple years with nectar is extraordinary. it makes the point, people. he is absolutely right, all of these fancy buildings, computing

taking shape, 2 million square feet, only 1 million left, that is all great to have the physical space, but there is a point that people get why everybody wants to be down here. not just science and biotech companies, but it is people, it is a collaboration, interaction at the fitness center, what you are getting coffee. it is the connections after work and before work that sparks the quality and the imagination that leads to the spirit that defines the best of what ucsf and academia and berkeley and people from all walks of life around the world that work in these companies and elsewhere. that is what we're celebrating. that strength and concentration of human capital. we're celebrating people, and we're celebrating the most important thing we need to invest in. that is in marked contrast to

the travails that ec or the regions have to -- that you see that the regents have to raise tuition again. if we keep doing what we are doing in these colleges, we have to reconcile that. that is my political speech. but it is important. i just want you to know that i don't think there is anything more important than celebrating what we have done to attract some of the best and brightest from around the world to this city and to this region. but we need to also celebrate that proud path by celebrating a commitment to the future, that we redouble those efforts. the next half century will be nothing like the past half century. i am very proud of howard and

his vision and faith and devotion to san francisco and mission-, and these partnerships and elsewhere. i am proud to see the growth of his company and the private sector actually have job descriptions available for people to come in and get tired. -- and get hired. i'm really proud i'm reallyreg -- i am really proud of what reg has done. he recognizes china, san francisco, connecting the dots in india, connecting the dots in china. a big part of the reason we have 73 biotech companies is the work he has done with incubators and all of the incredible to see as some every time you go on a trip with him in terms of people who start to believe when they spend time

with him. i also want to honor his example and leadership today. i know howard knows why he was appointed the decision, and i think most of you do. most of you who may be at home watching channel 26, 10 of you, thank you. but you should know about reg as well. ladies and gentlemen, reg kelly. [applause] >> it is an honor and privilege on behalf of ycsf and the chancellor to walk and nectar to this committee. it is also a pleasant to welcome the second coming up howard. we had something of a royal order of nights, we would have to give to to him. it may kemp sir sir.

one of the questions we have to ask is why do people like howard want to come here? what is so special about this place? we hope it is not just because it is a mission bay neighborhood. we hope it is because it is the mission bay community and at the system. i hope that is true, because that is what we have tried to create. and if we are failing, will lose my job. that is a port that you get that. what we mean by this? -- what do we mean by this? what is a company like nectar looking for from the outside world? you are looking for great ideas from universities and also looking at acquiring up small companies. most major pharmaceutical companies grow acquisitions. what does that their debt when it comes to mission bay? access to ucsf and its faculty members. that also get access to the

mission date incubator, which has 35 companies just across the road. this is a very exciting and very normal, perhaps unique environment. let me just say about these incubators. we have gone from zero in mission-to 35. why? because of the bachus system. when they come here, they are just right across the road from all of the scientific talent, the faculty at mission bay, and we make open to them all of the resources and research facilities that we have. they are open to all of the companies and the incubator. that makes it a nice ecosystem. we're not just neighbors, we are interacting. iwhere do the big companies fit in? if you look at the small companies, what they need is some sort of advice on how you identify a market opportunity.

what is the benefit of bringing this to market? what regulatory hurdles lie face? these young kids and the incubators, the people know all of this stuff. by coming>> there is a fourth pt you need to bring in this. we have been very successful with all of the financial service people, too. why do they come here? the problems of life science, nobody is making any money because things are too risky. by having these companies start in the ecosystem, we're hoping to make sure that since we talked to companies like nectar , you have to sophisticated the bring the product to market.

that makes it attractive for the venture capitalists to come here. we have existing companies and start-ups. there is one thing that is really still missing, and that his government. that is where we have been hearing about this today. one thing we have done is to create an entity which would be a staff person supported by the community and by the city of san prince it is whose job it is to go out and market to the world. and being an interface between the city and the university. we are very happy to launch bio san francisco. we have local government, and the last thing that is missing is the state government

involvement. i have been reading the last couple of days, a draft report looking at the impact of innovation on economic growth and states throughout the union. many of the states are trying to supplant california as one of the leaders of biotechnology. they want to eat our lunch. one of the things that we have to do is evolved a decent innovation policy that governs how biotechnology is going to continue to grow or we will be left behind. whoever comes up with a policy, it has to be an astute in a very frugal one. i think i share all of your feelings on this and if we have to lose gavin, we are glad that

he is going to sacramento. someone with the principals in the track record will be close to power and we will be able to continue to work his magic and help mission they continue to grow and let it be a model for innovation throughout california. [applause] >> i think you will see nectar is here permanently. alexandria properties, as well. we are all excited about the permanence and the growth sector. with that, let's look. [applause]

>> thank you all for coming out. thank you, jeremy, and thank you to the staff for being kind of us to let us walk around and see the work you are doing here as it relates to promoting healthy eating and promoting at a very early age and awareness of the importance in terms of making good decisions about what we eat and how we feel, and making

sure we make a lifelong connection to a healthy but the. the issue of obesity is important. everyone understands the extraordinary cost, human cost in terms of lives lost because of the consequences of obesity, but also the economic costs to the taxpayers, those that have no direct connection, that are paying the price of our inability to reconcile the issue of obesity. that is why 2006, we initiated a program called shape up sf. it has been recognized all over the country as a model program for any city, large or small. the robert woods johnson foundation recognized the work that was done through our team as the country's best practice.

i am proud of it because it is a comprehensive strategy that incorporates physical activity and walking challenges. it incorporates strategy is to provide options and alternatives. the options you saw in the cafeteria were an example of that. we have put salad bars in 50 of our elementary and middle schools. we are open to provide more wars to -- more resources in the upcoming year to provide more resources to public schools. i don't know many schools that are funding salad bars. some people wanted that. they said these kids would never get excited. you saw for yourself that kids are actually eating broccoli. george bush sr., eat your heart out. kids are truly enthusiastic about eating broccoli. they are an enthusiastic about eating something a little

different than your typical burrito or pizza. we have initiated a real effort, a deliberate effort, to become sugar savvy, to think a little differently about what we drink. we have a program called "drinkwater." we have a soda-free summer program. we have done a lot of things that have marked the trend across the country, dealing with the issues of trans fats, raising the awareness are around the issues of salt and sodium. all these things are important. i am proud of it. it is comprehensive. it has been inclusive. we have public-private partners. the school district has been a big part of it.

we have closed streets in order to encourage physical activity. we are taking over corners of our city and turning them into small parks. the sunday streets program promotes hula hooping, yes, as well as roller skating, ideas encouraging physical activity. none of that was important to you as much as it is important to me because it sets up the reason you are here. that is because there are times when a city can go too far. there is a time when we get involved in making determinations in the private sector about what choices people should have. it is one thing to educate. it is one thing to promote. it is one thing to create options. everything i said was about educating, promoting, and creating options, and dealing

with the issues of race, providing a geographic framework for education. we have addressed the issue of environmental justice and poverty as it relates to these issues. it is different when we decide as politicians what we believe the private sector should do, as it relates to the item that the board of supervisors passed, that ti today officially vetoed. i think it goes too far. i think the idea of banning toys in restaurants gets into the private sector decision making and tries to insert our own values and try to replace them with the values that should be inserted and promoted by parents and caretakers that can make

better decisions. point being, politicians are not going to make the best decisions for these children. it is going to be parents. the government should be in the business of educating, promoting, and creating a framework of alternatives, not dictating and prescribing exactly how you can provide a meal and what you cannot provide if you provide that meal. i was walking down the groceries or the other day. there is tony the tiger. i thought, is this next? is captain crunch next because there's a toy inside? is jack in the box going to be banned? what is he of not a giant toy? it is a toy promoting fast food. why have we not considered the impact of that promotion in that chain? we have not done those things because most people say, that goes a little too far. that is what we just did that the san francisco board of

supervisors. we said, you have to have a certain milligram percentage of this, and then you can have a toy. i think it goes too far. i applaud eric mar for stepping up to the plate on this issue. i know a lot of good people disagree with me. health professionals think this is a great idea. i think there's a better approach. we officially have our 1-year report, our annual report, on shape up, that provides an alternative. we are not talking about the abstract. we are talking about celebrating what we have done and continuing to promote it. doing these types of toy bands is inappropriate, i don't think particularly effective, and i think it goes too far in inserting government to be the decision maker in someone's life, as opposed to parents. i have no problem vetoing this. well i have a problem maintaining my veto?

the board might override my veto. we will know that very soon. i will try to make a case to one or two members of the board who were uneasy about this. trust me. there were few. all of the world, people have talked about this ban. it has not of unfavorable. things like shape of san francisco helps our reputation. it brings people together and provides a substantive solutions. bans hinder, don't help, our effort to solve this critical issue. >> [inaudible] it is not about taking away toys. >> that good. let's encourage them to make the meals healthier. we have been doing that.

we have built some good partnerships. let's provide alternatives. this is government sighing, you cannot have this type of toy unless you provide this kind of food. we do plastic bag bands and the like. -- bans and the like. i think there are a million ways to promote alternatives. we did that with menu labelling in the state. that is education. that is information. that is a better approach than prescribing the time, manner, place, and how you provide a meal. i think it is a very truly and alarmingly slipperly -- how do you say that? slope.

>> [inaudible] >> there are all kinds of alternatives. there are venues to access. we have strong opinions about pharmacies and what pharmacies should be promoting. again, i think this goes too far. i think this hurts our substantive efforts in terms of health promotion and wellness, and the work we have been recognized for all over the country. there is a reason there is not a tv station in this country that has not been mocking us. i understand why. i am a little concerned about that. it gets in the way of the good work the city has done. eric mar has been fabulous on this, and i just wish we did not go that far. >> [inaudible]

>> one more than we have got at the moment. you never know. i am notnaive. -- not naive. there was one other veto they overrode. i cannot support this. again, i am not being figurative. why not a crackerjack band? -- ban? how can a giant jack in the box toy be able to promote fast food? that is the biggest marketing toy anywhere. it is not the little boys at mcdonald's. go down the list. when you have a child, you get this. everyone wants the cartoon. they love the toys. the city cannot go down this path in the private sector. dangerous.

educate, promote, create alternatives. do not prescribe 600 milligrams of this. who are we to judge? this is crazy. >> [inaudible] >> it is similar to the one i did with supervisor maxwell a year ago. tragedies have befallen some of the clubs and some of the incidents that are more acute than they were a year ago. i think there will be the support for this when there wasn't for a similar initiative a year ago. i think the entertainment commission and supervisor chu have done a good job. i'm inclined to support it, whatever details appear on my desk. i am not naive to think one thing one day and the next day, think a little different. all of these are ideas.

i think i have had a dozen meetings with club owners and promoters. we are just throwing out ideas. sometimes they get headlines. we just want to get a sense of people. i am worried about civil liberties. i'm concerned people could share these lists. how do we know these lists are not shared? people have a right to know the lists will not be marketed or exploited. those things have to be worked out. there's a reality. we have not been able to address this in a substantive way. we had an incident during the world series in my neighborhood. i had some folks telling me the inevitable is going to happen. boy, it happened. we have to be aggressive. i told the promoters and the club owners this. we don't want to be too prescriptive. the majority of people do the right thing and are promoting

safe venues. there are a few bad apples. we cannot let that continue. i think most of them get it. they don't want it to go too far. we have to be sensitive to those concerns. >> [inaudible] >> i am not -- i have said more than you will never hear me say about the interim mayor. she is still close. i talked to them all the time. we share the same campaign manager. i have great confidence in what she did. that means i have great hope that she actually pulls this thing out. we will only know that in a week or two. both sides are prepared. >> [inaudible] >> i have never liked it. you know that. i cannot explain it. how do you measure it?

when i ran for mayor, i said, i don't know what will happen to me. you said, it is all done. i was lucky. if i had 49% of the vote, i might of lost the election. it is strange. i cannot figure it out. it is not a knock to the winner. when you cannot explain something, and even the people who put together -- it is easy. you ask them to questions and it embarrasses them. you know it is not a positive sign. i will admit this. i did the rank choice thing. i went, same person, same person, same person, and they said i could not do that. this is the incumbent mayor person who ran himself. i had forgotten. half of them are ranked choice. half or not. why are to the judges ranked choice? i doone, on -- can i do one,

one, one? will that hurt the candidate? make it easier and more transparent. we are making it a little harder. there are people working on that right now. trust me. i am open to it. i was open to a legal challenge. that was processed unsuccessfully. you know, it is not just because of oakland. even in local supervisor races, people are wondering what is happening. it is confusing. i don't know that is a good thing. i think you should make it less confusing. >> [inaudible] >> that is another thing. now you get into district elections. when i ran for supervisor, it ok