work, but a lot of it has been defeated. the problem is thefor trying tos legislation, because it is a good economic engine. you see some of the people who have been laid off work. they will find some additional employment because of this, because everybody knows. they will flock to the market. they're going to come down here. there were the comments about adding $10 per room per night at a 7% occupancy. what that also does is it increases the occupancy for the hotels, so you will have more labor coming into the mid market area. this is an economic engine that i believe supervisor avalos is a little bit incorrect because of all of the foreclosures to the people actually have jobs so they can pay for the places

they'd live in note -- because of all of the foreclosures. people actually have jobs so they can pay for the places they live in. it is going to continue before -- until you put some incentives in there to make this thing work. thank you. chair chu: thank you. next speaker. >> hello, my name is ted young. you have to excuse me, because i am not much of a public speaker. a small-business owner and a citizen. as a citizen, i see some things have rebounded, but some are strapped for cash, cities, such as san francisco, so i do not think tax cuts are a very viable option. i am skeptical about whether making things cheaper will work. if there is so much empty space in the mid market area, that will drive down rents, and that

will make it cheaper. if that does not cause businesses to move in, then making it cheaper is not the issue. as a small-business owner, i am concerned that any benefits i see will be consumed by an increase in rent, and i see the money i pay in taxes as going too good things, the money i paid in rent and not necessarily so. -- the money i pay in rent. chair chu: thank you. >> i would like to see the hands of every low-income tenants who lives in the neighborhood. one of them is mike boyfriend -- my boyfriend, james. trying to find housing for my boyfriend, it took us five

months and three weeks to look a landlord willing to rent to us. he had one week left before he was permanently going to lose his rental subsidy. one-third of the people have lost their rental subsidy because they have not been able to locate a landlord willing to read to them, and this is it. we got -- note -- " a landlord willing to vote -- a landlord willing to rent to them, and this is it. we got kicked out of the castro. people's sense of self. how dare you demean our achievement. and to have you people talk about what little we have been able to get, what we have been able to struggle and scrape together, note -- stop it.

this is a neighborhood where people on ssi, living on $845 per month, have access to transportation into services, and this is all that we have. -- access to transportation and to services. i would love to come together. let's build something that works together, but do not taken up on the backs of my people. it is the tax incentives. it is the arts district. [bell] it is so many things. i want to work with you. please include them. chair chu: thank you, thank you, thank you. next speaker, please. the last card that i have is -- and other than that, i do not

have any more cards. >> i am here both as a resident in san francisco and as a small- business owner. i am the project director for the company. i am here today on my ever- expanding lunch break, because i have been led to understand that one of the major considerations for the payroll tax break is the opportunity to have twitter in this area, in the central market area. living and working in this neighborhood, i know that there is a need for this board to consider possibilities for rejuvenating the central market area, but the immediate concern that i have is looking at twitter as an opportunity, twitter is a company, like us, capable of paying their payroll tax, and there is no reason i can see to use that as an incentive to move into that neighborhood. they are perfectly capable of being able to do that and being

part of the community. chair chu: thank you. >> thank you, supervisors. my name is cooper clinton. there is no question that the residents of district 6 need jobs. there is no question that this would lower crime, they're having jobs. my concern is that this bill does not create jobs for the residents of district 6. they are not people living in the tenderloin, who they would hire at twitter. nicer neighborhoods, people who had educations and backgrounds, which the majority of residents in district 6 do not. i think that we do need to create jobs for them in district 6, and i think that there are ways to do it, but i do not think this bill is it. thank you. chair chu: thank you.

>> hello, my name is brandan. i am a city employee. i am going to come at this a little bit differently. they are trying to get us to give up millions and millions of dollars. you cannot have it both ways. you cannot keep coming to the city employees and say, "give, give, give." we are not going to continue to give. to do anything if this passes -- it is going to get very difficult for us to do any thing -- to get our members to do anything if this passes. you are going to have to make a choice. if you really want to city employees to make a concession to help the city out, or you want to keep doing what you are doing, which is catering to the wealthy, because this is coming down to a war between those who

do and those who do not, and this will be for all of you to decide which side of that battle and you will be on. are you going to be with the regular, harder-working people of the city? or are you going to be with the wealthy millionaires, and that is the choice that we will all have to make. it is coming down, little by little, but now, it is coming time for people to make a real choice, and you may have to stick your neck out, but i think you would much rather have some businessmen pissed off at you. [applause] chair chu: if i could ask members of the public to not clap. i do not have any more cards, so if you would like to speak, please line up. >> ibm -- i am a d. 6 residents.

i am concerned. many of you probably remember. that area was not a blighted area and never was a blighted area. up until two years ago, every january, for two weeks, you would see limousines lined up there, towncar is lined up there, taxicabs lined up there -- towncars lined up there. where was the mayor's office as it was going downhill? as business was going to las vegas? down to los angeles? i did not hear anything about it until just about one month ago. we have also not heard necessarily directly from twitter. that they will not do this unless they get the tax exemption. i would like to hear that, but i do know that when you are

talking about mid market, and you are talking about the blight on mid market, the reason you seaboard and-up businesses there is that they were once a vibrantly filled -- the reason you see boarded-up businesses is that they were once a vibrant, but they were forced to move out. finally, i really resent the fact that the mayor's office has been reaching out to regional blogs for support in the sense that they are going to get jobs if they show up today in support of this or that, maybe, looking at a full-service grocery store, that is also not going to happen with this legislation here. [bell] chair chu: thank you.

first of all, i support and analysis. this calls for a partial until that those on the ballot, i oppose this. we are looking at additional revenues. our budget deficit is right now, and it is profound. we should not forgo this for potential long-term gains. i do not see it happening. epo -- we can not enable the framework of what mid market is. between fifth and eighth street, that is a poverty pocket.

it is not polite. between 8th and van ness, it is virtually uninhabitable because of the wind and cold. that is what is keeping that part down. and the tenderloin, there areis that can handle any payroll tax -- if you want to go ahead and target grocery store is, let's do that and get some good neighborhood-serving businesses in there. twitter is not growing. ok? it is like the dot com situation. i have two words for you. my space. they are not going to be here five years from now. i hope you would prevent anyone from going to any twitter parties. what we are seeing is right- winger, supply-side economics that comes right from ronald reagan -- what we are seeing is

right-ring. [bell] chair chu: thank you. next speaker, please. >> i do not quite understand. are we saying that we are targeting this tax break, only to residents being hired within that area? if we are not, and i do not believe the legislation has been amended to say that, then why have we had a dramatic increase in an area in the part of the world, as the previous speaker, i think, correctly pointed out will never generate jobs for a payroll tax. second of all, i would like to direct your attention to the economic analysis of this project, and limit the tax break only this way. clearly, what will happen is gentrification.

commercial gentrification will have negative and prolonged impact, for employment opportunities in san francisco, for residents. when do we get busy on developing economic incentives to employ eight existing san franciscans, not a work force -- to employ existing san franciscans? this legislation does not do that. we cannot wait much longer. we have to get economic incentives to employees existing san franciscans. thank you. chair chu: thank you. next speaker, please. >> good afternoon. i am a political action coordinator for a local. i want to tell you first a little bit about me so there is some understanding about hugh seiu is in having this discussion -- about who seiu is.

i started a latino co-organizing project for families that has been recognized for its accomplishments multiple times before this board. i worked on affordable housing and for safety in the area. sti you can 21 workers are from mineworkers in the neighborhood. -- seiu 1021 workers are front- line workers in the neighborhood. many of my co-workers are folks also live in sro's and who also have families in the neighborhood, so the idea that there is something else motivating our involvement other than a belief in the public good is really unfair.

i also do not appreciate that some of the proponents of this policy came up to me privately during the presentation and basically threatened if we do not back off this deal, they will organize the community to support the measure. i do not think this is very fair. i do not understand what the tactics are about. we are not against, at seiu, the creation of private-sector jobs. it is not a fair pitting against each other. economic consequences are coming out just now. we look forward to looking with you to improve the policy and improve the area. thank you very much. chair chu: thank you. >> hi, my name is jerry.

i am a vice president here at the local 1021. wow, the rich keep getting richer, and the poor keep getting poorer. we keep trying to balance the budgets on the backs of the working class, when corporations are making record profits, when they are bouncing back in the stock market, but they are not investing in our communities. it is time that we tell those who can pay that it is time to pay. we can no longer balance our budget on the backs of our workers, on the backs of our work force, because they cannot afford either. you can afford it, it is time for you to pay up.

until we do that, they are going to continue to hold us economically hostage as long as they think they can. one of the reason they are looking to get rid of enterprise zones is that it was found that it does not work. it was intended for new companies to come in, the tax breaks, but what we find, it is simply moving from place to place, getting rid of older workers, getting rid of workers, so they are not creating new jobs. they are just trading off. as long as they can have a tax break and move on. the time but is for us to stop giving up those tax breaks because we need to be able to afford the services we have for people here in san francisco. et -- note -- chair chu: thank you. >> i have work in the hospital.

i am proud to say that both of my children went through the public school system. i am a voter in district 9. one of my children is working at one of the nonprofits that we have talked about before, working to help people in the tenderloin. i work at the hospital. to consider giving a tax break to a multibillion-dollar corporation while we are facing further cuts to the people of san francisco in the areas of mental health, substance abuse, we have almost no inpatient -- in-patient beds, because we have eliminated the beds. for detox, i cannot get them in because there are not enough services. in my opinion, at a time when we are looking at a $350 million budget deficit for the city, which will mean more cuts for

people in san francisco, it is corrupt, and i ask you not to do it. chair chu: thank you. >> larry bradshaw, a paramedic, also with seiu. i want to talk to you about this program, creating a safety net for corporations. there is little evidence to show that business subsidies produce jobs. i lived in the bay area during the last recession of 1983, where we saw city after city competing with other cities to give larger tax breaks to get businesses and corporations to their towns. what we found out in hindsight is that we were paying $200,000 or so for each job. it was not a very efficient way to create jobs. those studies are out there, and i would urge you to look at them. also, sort of corporate welfare

versus welfare for poor people. et -- it seems when it comes to corporate welfare, the bigger the corporation, the more municipalities follow over themselves to give a corporate tax break to them. also, if you are poor, there is a strict time limit when you get welfare. when we give corporate welfare, it goes on. if you are poor and are on welfare, you are also scrutinized. you have to be constantly my new lease scrutinized in everything that you do and report everything note -- you have to be constantly minutely scrutinized in everything that you do and report everything. my biggest worry is that one's business -- once business hears

you are serving up pork -- i think this is bad. chair chu: thank you. next speaker. >> good afternoon. i am an executive director in the tenderloin. thank you for your service. i have year on behalf of my organization and the board of directors to fully get behind the effort to deliver a catalytic project for mid market. i do a lot of work. foundations, businesses, property owners, youth groups, and work with. a lot of organizations, i can tell you, have had an interest in setting up shop and locating in mid market, but they are kind of waiting for someone to make a new first move. something inspiring, something that will make people believe, and i think the action you are taking is a brave and bold one

and will create a new way of thinking about mid market, and give people confidence in making the investment to come and join. i want to confess, i am not a tech person. i do not have a facebook page. but i do believe that twitter's name will have such a draw and will have a catalytic effect to draw a lot of other companies. i think the people they attract will support all of the mom and pop businesses out there, the cafes, all of the people live and work nearby. i live in the tenderloin and serve in the tenderloin. lastly, about the youth in the tenderloin, i work with several, including the boys and girls club. they are all into this stuff.

i would be happy to volunteer my services to make sure that tu -- twitter is engaged, so people can participate. chair chu: thank you very much. we have are very last speaker. line up in the center aisle. if not, walter will be our last. >> ♪ you give tax like this, and you take tax like that and i knew all along that it is coming on back to us you give tax like this, and you give tax like that and you know i know that it is all coming back to a city now

and you give money, and you act like this, and we need tax back like this it is coming back, it is coming back to us now ♪ chair chu: thank you very much. all right, are there any other members of the public who would like to comment on item number six? [gavel] this item also has an amendment that will require a continuation, but i know that people may also be anxious for the america's cup item, and we expect to take a quick break between this item and the next two. thank you very much. supervisor mirkarimi? supervisor mirkarimi note -- supervisor mirkarimi: i would like to turn back to the controller, but i do not believe

that they are here. chair chu: i believe that our office has communicated to them that public comment is closed. if not, we will go to supervisor kim. supervisor mirkarimi: i want to make sure that the comptroller is here. the report by the comptroller, to me, really spells out the whole notion strategically of enterprise zones, and as it applies to this report, this would be a terrible deal if it were not for twitter. do you agree or disagree with that? >> i do not agree with that, and i do not think that is what the controller said. i do agree with the controllers analysis that enterprise zones have provided very mixed results

-- i do agree with the controller's analysis. jobs in blighted areas. i absolutely understand that criticism, but i think the controller wrote -- comptroller 's report is that it would not be justified and would not like reproductive unless there are other elements and other commitments made by the city to make this tax break something that is likely to be effective in producing the type of results that we want, including the commitment to the area, and other programmatic commitments that the city is making, so the tax does not just sit alone, because when it sits alone, it cannot provide the type of catalytic activity that you want it to provide. because this is a net new proposal that requires the establishment of a base year of

payroll tax continuing to be paid throughout the life of the exemption, it is very different from an enterprise zone. you have to grow in order to take advantage of this. supervisor mirkarimi: and just three or presentation alone, about other programmatic enhancements, -- and just through your presentation -- >> i will come back and talk very succinctly about the work we are doing with the partnership and maybe talk a little bit about the future potential. supervisor mirkarimi: just at least the big ones, because i have heard before the public safety is one, potentially muni. i am trying to understand. >> investment in the tenderloin, or what is about the twitter retention? >> pimm -- supervisor mirkarimi: again, i think they are

connected. >> they are absolutely connected. supervisor mirkarimi: there is no analysis on what the other enhancements are in this area. the representation is that this was already in the queue, but there has been no analysis from our budget analysts, and it would be helpful to know what is expected of other city resources, some of these other pitch points in order to make its deal palatable. >> i do not believe there are other rhapsody resources needed to make a pitch to twitter. -- i do not believe there are other resources needed. there is the work that mta is doing, the work that the planning department is doing all around the imem