the front desk. the primary purpose of the front desk is to pete -- is to keep people out who will be disruption. we support this project. we want the corner activated with competent management. that is what we're looking at. thank you. president miguel: thank you. >> good afternoon. i am catalina. i would like to agree that we but like to have all the residential there. we don't want any tourists there. i have lived here so long and i live right across the street, at the mcalister house. we have a lot of work to do within the s.r.o. and i think i

would really like to say i have seen some of these commissioners down on the streets and they know who i work for. we're trying to straighten that out with our own policies. i like to see that. if people who have drug problems are put in one location and people who are sick, when i go to the west hotel as a woman representative, i see a lot of oxygen bottles, a lot of poor people. we're moving towards baby boomers become older. we are not all bad people. we're just subject because of the economics are not there, you know? i still say, god bless this commission because i have seen them out there, and i believe all of this can be straightened out, but please, let's keep this for these residents and let's keep the tourists out of there. thank you. president miguel: thank you.

>> hi, my name is jeff buckley. i am speaking in favor of the project. i want to give some explanation why we're doing that. i want to say given the history of the building, i am not surprised to see the neighbors are upset at the prospect of having a fully occupied s.r.o. in their neighborhood. it was apparently operated as a hostile and created a lot of problems for residents. i attended the meetings and heard their concerns. i would say that the project as it is outlined here not only meets their needs but i think also meets the needs of the residents who would occupy the building, as well as in general the city's needs to provide affordable housing for residents. i wanted to outline a few reasons why i think that is the case. felice inmn does not have any

people in there right now. there will be no residents harm from the transfer of these units. that is important to remember. the second thing, as antoinette eloquently said, we equate residential hotels with stability. i know sometimes it is confusing when you see there is a front desk operator, somebody at the front desk. you think is kind of run like to help or some other hotel, but the reality is in this day and age, within san francisco, s.r.o. hotels are treated very much like apartments. people move into these units typically to be able to live in a place and not just live there for a week or month. it is important to realize that torras units are translated into daily, weekly, monthly activity, and we equate better and more stable conditions with

residential units. we are establishing a completely residential hotel, and that is a positive thing for the area, it is positive for the people will live there, and i think it is positive for the city. i would also say this hotel, we have work to organize a tell residents to improve living conditions. it would have seen a lot of hotels. -- we have seen a lot of hotels. almost all hotels do not have these kind of amenities. i think hotel residents tell you good living conditions and amenities as much as anyone else does. lastly, i have been put off by the neighborhood residents, particularly in the beginning, the ugly characterization of s.r.o.'s. over time, they have learned to get past the stereotypes. there is more there.

lastly, i just want to say that we organize residents to improve living conditions and we will be keeping an eye on this property to make sure that basic of editions will be met. president miguel: thank you. elaine jones, tim, randy shaw. >> good evening, commissioners. my name is sister elaine jones, and i live at an s.r.o. i work for central city collaborative. i am very active in my community. i will let you know why residential hotels for low- income people work. because my truth is i have suffered with mental illness most of my life. thank you, jesus.

i am the perfect candidate to move into one of these hotels. the people, the neighbors, these hotels work. low-income housing works. it saves lives, gets people off the streets, and i am to tenant organizer of the raymond hotel, which the owner is here now. i am on to talk to him later, but it works. our building, we have our small problems and stuff, but basically we don't have a lot of people selling drugs out of from of the building because people like me and the staff make sure they don't do it. it can be done. residential hotel is not something to look down on. it is providing services, getting people off the streets, giving them self-worth.

relate, if i wanted to move into that s.r.o. hotel on fifth street, i would be the perfect candidate. but if you look through my background, you would see i have had 73 suicide attempts. but today, i may well contributing person of society. there are a lot of people out there. this is my truth. it is essential that we get these people into low-income housing and everybody wins. neighbors around there, they're just scared, but we can show them it works. at central city collaborative actually hired tenant organizers and they go in there and they organize the people who live in the s.r.o. and make it work.

we have monthly meetings to try to make the community work. and we branched out and make sure that everybody around our building is happy, too. so i m for low-income housing. thank you. president miguel: thank you. >> good afternoon, commissioners. tim, on behalf of the san francisco housing coalition. we reviewed this project months ago, fell off the radar, we knew it would come back, and i am delighted it is here today. there are two reasons we think this from the deserve george support. the first, the housing action coalition believes in housing for all san franciscans at all of loss of affordability, and this project is one that we see way too infrequently. it goes to satisfying a

desperate need for affordable housing at the low levels of income. iwe believe a diversity of and comes -- a diversity of income makes it neighborhoods healthy. that is what this project looks like and we applaud that. the second thing, it is evident given the time from when we first saw it until when it came back to you that there has been a lot of work done on it, good faith work done to address the concerns of the committee, the concerns of the commission itself. we think when that effort has been made, it shows the good faith of tried to make this project successful at a credit to the neighborhood, and we think absolutely you should support it. we wish that we saw a lot more like it. thank you. president miguel: thank you. >> thank you, commissioners,

randy shaw. it is in port to recall that the problems that preceded this site came from may to worst use. i started a housing clinic in 1980 and i focused on preventing diversions. i wrote a menace to the hotel conversion law and we had a -- i wrote an amendment to the hotel conversion law and we had 25 objections against illegal tourist use. i am supporting this conversion because we're not losing any residential units at fully inn and we are transforming a bad youth hostel environment to residential hotel. i think the testimonies that you often hear, some of the old stereotypes, since mayor brown's leasing program, there seems to be a broad acceptance and people realize there is not a -- there is not a

stigma. if you look at a lot of the tourist uses, and i can cite many examples, it is the tourist hotels that bring the one-night people who do drugs. you don't hear people complaining about them. but residential use. this stability. the testimony that you have heard from some of the tenants of low-income tenants and subsidized programs. these are higher quality units. these will be working people in this hotel. i have done business with sam from 1999-2009. we know blogger have any properties with sam, but i know them very well. -- we no longer have any properties with sam, but i know him very well. he is a great asset to the committee. he invests money in the neighborhood. if i was a neighbor of sam, it would be great.

i like property owners who take money and don't give back anything, he is always investing his time. anytime there is a project he says count me in. that is the kind of guy he is. he took the boy hotel, which was a wreck, sued by the city, he took over, left a beautiful project at 41 jones street. this is not an operator that you have to worry about and this is not the core of the poor dealing with drugs. it is this myth that is associated. the fact i hear condition on this, six months, report back, i have not heard that from an apartment building. why do we have that condition with this hotel? i don't get it. the mushy do it with the condominium south of market, i don't think you do. -- unless you do what with the condominiums south of market, which i don't think you do. working people will want to live

there so that could walk to their downtown jobs. approve this. that is a great product and something should be proud of. thank you. president miguel: thank you. henry, russ? >> good evening, commissioners. i sit on the staff of a committee. i have worked on a majority of residential hotels in the city. not one hotel has with this hotel is going to provide. very few of them are open space, community kitchens. a bicycle parking? unheard of. this will provide all of those. it will be all brand new. iyou name it. i think will be a great asset to the city and i urge you to approve it. thank you. president miguel: thank you. >> good afternoon,

commissioners. i'm a first generation hotel operator and operator of residential and tourist hotels and apartments in at san francisco. a lot of people have spoken about this in a positive direction. i think they're coming back to you guys, working together to put more bathrooms, which is a big issue in s.r.o.'s. sometimes it is hard to realize that the quality of life issues are important. buy them demonstrating -- it may not sound like two rooms are a big deal, that is all dollars and cents that are privately owned in a private industry it providing affordable housing to san franciscans. it is a great scale. you have properties that have programs. this property will be a mid grade property with what henry mentioned, very high and

finishing. you have to have the spectrum. one of my attendance at a hotel that i built an additional story, we debated the same issues. these gentlemen are going far beyond what was required of me because i build a whole floor of new s.r.o.'s. when it gets involved in that, earthquake security about a building, how would gets sheered. they are investing in a long- term product that will last over 100 years. these hotels have been here close to 100 years, and they're getting to the point where you need this type of upgrade in renovations. you are seeing it with a sprinkler ordinance, with the new seismic on the socks story that may be coming. -- on the soft story that may be

coming. it sometimes people don't understand that this is a small big city. one block changes the demographics of everything. to say that this hotel will be a detriment or problem? i think not. i think this will bring equality tenet, and that is what these gentlemen are looking to run, equality, clean, and safe operation that is an apartment building with a hotel name. lastly, don't forget, foley's will be generating transit taxes for the city. that goes right back into our coffers as soon as the project is done. i think overall, this is a well- planned project and i think everything has been hashed out now and it is time for, hopefully, your approval today. thank you. president miguel: thank you.

russ? >> commissioners, perhaps i am speaking out of order. i am speaking about 235 o'farrell street. i know the project sponsors for that segment of this project are here and perhaps they should speak first. president miguel: we call it as one item. speak on that. >> i am delighted to have the opportunity to speak to you. i will direct your attention up to union square. this is a unique opportunity for the commission in that there are three similarities in these buildings. you have the opportunity to approve this project today. both of them are really very

attractive old san francisco buildings. by approving this project, both of these buildings will be renovated totally and brought into use. the second opportunity that is presented to you is affordability, both on the residential side it and also for union square, for tourists coming into san francisco looking for a budget hotel. that is something this will provide them. the third thing you have an opportunity to provide today is 60 jobs. that is a terrific opportunity, 60 jobs, split between fifth street and o'farrell street. i think those three elements, you need to both buildings, are why the project should be approved today. thank you. president miguel: thank you. gary and foster.

>> good afternoon. i am gary, the architect for 235 o'farrell products. i'm speaking out of turn, i imagine. president miguel: not at all. >> i am going to talk about the holiday inn express because it is going to be the second urban holiday inn express product in the nation. they have won in chicago and they're very interested in doing another one or more in san francisco. it is an ideal location. we are having a very economic hotel with their standards. the have much larger rooms, much larger amenities and parking. none of those will be provided.

we will have a small amenity package, but in general, every room is well appointed and is something that all travelers on a budget want to have, but to this not have with the big commodity practice -- the big amenity package. the rooms are smaller, they're very nice. each room obviously has to have its own private bath and a certain amount of amenity size, but in general, the size of these units are maybe 50 to 100 square feet smaller than the holiday inn express would like to see. this is an urban hotel. it is in at union square. people come there to experience the city, not to stay in a room and watch tv, although they could if they want to. but in general, the hotel itself is occupying a very small part of the ground floor, a

lobby being this zone, the rest occupied by a large restaurant and bar as well as a basement. we have a very small basement occupancy for a laundry and a break room for the staff. this is the ground floor plan. the only part of the ground floor we're occupying as a small lobby, just enough for a few seats and a desk and the existing elevator and stair. it will be well appointed, but minimal.

ically and they'll be double paned, also, for environmental reasons. it's an improved window but visually will look the same as what was there already. the other thing about the second floor is there will be a small public area on the second floor. [bell] president miguel: thank you. if there's more questions, we'll call you back. thank you. foster weekes. >> good afternoon, my name is foster weekes with clementennine cares of san francisco, a neighborhood organization on the west side of the district.

earlier, we expressed concerns about this project based on two things, one being the previous history of the building surrounding its use as a tourist hotel and then after the fire, the way it was taken care of or not taken care of and then the second thing being from our research, what would be best practices as far as a successful s.r.o. and since then, we've met with the owners and their representatives and expressed these issues to them and they've come back to us with items that we think are reasonable. and they have been presented to the summer forward group in arbmere sully. we think that all these issues that were addressed by the sponsors of the project look like they would meet our needs and then therefore ask that those be attached to the project if it's approved.

more fully, we also ask for your help in helping to enforce that these things are done and taken care of. our concerns, again, go back to the previous history of the building and then making it the best possible s.r.o. that it can be which the owners have expressed they want to do. that's where we ask for your help in this if it goes forward. thank you. president miguel: thank you. doug cooper? >> thank you, i appreciate the opportunity to address you today. i am speaking in favor of both parties here. i think the developers have an interesting project that will serve a certain need with the affordability and scale of housing as well as the

neighbor's concern about the project that's been long-standing due to previous occupants of that space. if the new owners have met their concerns and can guarantee there will be sensible and trustworthy management at the site, i think most of the contention at this project will be solved. there are still liveability standards and other people are working on the project but if you can help come up with a way that the pates and the new management team will make sure that the concerns of the new neighbors are met and they run it responsibly, i think everything will go well and i look forward to continuing to be a neighbor at this site. thank you. president miguel: thank you. is there additional public comment on this item? anyone else? >> good afternoon commissioner miguel. we're representing both 235 o'farrell street and 374 5th street. i think you've heard a lot of support from the broader neighborhood and in addition from the d.r. requesters and how

far we've come with respect to 374 5th street dealing with the operational concerns you raised, changes to the interior configuration, adding more private bathrooms, really go to the heart of what the project was intended to be, which was to be the first rung of housing in the city but providing amenities, the vast majority of s.r.o. hotels in the city don't have. with respect to 235 o'farrell street, a few speakers mentioned that, again, we have a situation with a vacant building so the swapping that's going to occur under the hotel conversion ordinance is not going to affect any existing tenants. that project, which will be a holiday inn express, which is a unique plan, only one is available in san francisco, again, will serve a different price point for union square. it will be more affordable to more tourist, more middle-income tourists that visit our city internationally and nationally and we'll still also serve business needs as mr.somanski showed there are business

conference facilities so it will be a nice kind of hotel and particularly in that location consistent with what's in the rest of the neighborhood. the other point about the holiday inn express that's important to keep in mind that that's a category one significant building that's being preserved and used as a hotel. what i want to emphasize is -- and i think it's been emphasized, but to pull together, the 5th street property has to be approved in order for the o'farrell street property because of the way the hotel conversion ordinance works with the 23 vacant units going from that property over to 5th street to enable that to be a fully operational residential hotel and it's important to keep in mind that those 23 units will be subject to the hotel conversion ordinance which has additional level of protections for permanent residents in addition to what our rent control ordinance provides. i wanted to leave you with that and let you know i'm available for any questions. thank you. president miguel: thank you. >> mr. president, we are

actually hearing this item somewhat as a conditional use item and it's not, it's a d.r. we did not call the d.r. request first as we generally do. so maybe we can ask the d.r. requester to come forward. >> good afternoon, president miguel, vice president olague, commissioners, good afternoon. i would like to reiterate the fact that the project sponsors have come together with me and over the past week and through some discussion and negotiation comes to a certain set of conditions which we would like to voluntarily attach to the project as conditions of approval. prior to that, that being said, i do like -- i would like to reiterate some of the reasons and concerns that brings us to this place today. firstly and foremost, it's not a question about population, it's a question about management during the period of time where the travelers inn was in

operation, there were several issues with the way in which the business was run. and including, but more importantly, after the period of time when the building was vacant after the fire in 2006. there were still some number of violation which is occurred which ultimately the building owners cannot escape all responsibility for. there were several issues with the way in which the trash disposal was being taken care of, the fact that the neighborhood roof was being used as a work surface, et cetera. and on top of which the biggest concern was that the operator and owner of the building was showing a pattern of behavior of only attending to issues unless they were absolutely needed to do so.