supervisor avalos: good morning. welcome to the city operations and neighborhood services committee. i am joined to my right by supervisor mar. supervisor elsbernd is in negotiations right now, so we will excuse him without objection. the clerk of the committee is ms. gale johnson. could you share with us your announcements? >> persons attending this meeting are requested to town of cell phones and pagers.

if you wish to submit copies of materials to members of the committee, please submit an extra copy for the file. if you wish to submit speaker cards, please put them in the container at the rail in front of you to your left. items recommended out of committee today will be considered by the full board of supervisors tuesday june 7 unless another date is indicated. supervisor avalos: thank you. if you could please call item 1. >> hearing to consider the transfer of a type 20 off-sale beer and wine license from 953 harrison street to 320 fell street, will serve the convenience of the people of the city and county of san francisco. supervisor avalos: very good. we have a presentation. specter, welcome. >> good morning. -- in spector, welcome. >> good morning. before us today is an application for a tight 20

license. it will allow the applicant to sell off sale beer and wine. -- a type 20 license. their business plan as they will be doing a lot of actual creating of organic pates, sausages, and cured meats. part of their business plan includes craft beers and specialty wines. i would point out is located in an area of high crime and also under concentration. we are recommending this application for approval with the following conditions -- sale of alcoholic beverages shall be permitted to 20 hours of 9:00 a.m. and 9:00 p.m. daily. no more than 10% of square footage of the premises will be used for display of alcoholic beverages. again, the primary business is delicatessen. the sale of beer and malt beverages in quantities of 60 knots, 20 jobs, 30 tons, or 40

pounds or similar sized containers is prohibited except for microbreweries, crap breweries, organic and specialty mall products sold under the designation of stout porter ipa -- kraft breweries -- craft breweries, organic and specialty malt products. no noise shall be allowed on the area under the control of the controlled licensee. no person under the age of 21 shall sell, furnish, or deliver alcoholic beverages. condition is our loitering condition, which is defined as standing idly about, lingering aimlessly without lawful business, is prohibited on a sidewalk or property adjacent to the premises under the control licensee. our next condition -- there shall be no cuts, glasses, or similar receptacles commonly used for drinking beverages sold, furnish, or given away at the premises in quantities of less than 24 in their original package -- there shall be no

cops -- there shall be no cops -- there shall be no cups, glasses, or similar receptacles. with these conditions, we are recommending the application for approval. supervisor avalos: ok, very good. thank you for your presentation. we can open the item up for public comment. we will go up to 3 minutes. seeing no one come forward, we will close public comment. can we move this forward with recommendation with the conditions? ok, very good. so done. if you could call item two. >> item two, hearing to consider that the transfer of a type 21 off-sale general license from 511 crescent street to 2801 jones street for walgreen's will serve the convenience of the people of the city and county of

san francisco. >> we would like to request a continuance on this item. i have talked to the applicant, and they concur. there are some details we're trying to work out. we will have it ready probably for our next meeting. supervisor avalos: ok, let's open this up for public comment on the continuance. any member of the public who would like to comment on this item? ok, we will close public comment. we can agree to continue to next month. we will skip a meeting. >> correct, maybe the july meeting. supervisor avalos: great. i would like to be involved in some of the discussion on this as well. ok, if you could call item 3. >> item 3, hearing to consider that the issuance of a type 42 on-sale beer and wine public

premises license to shawn higgings located at 2323 market street will serve the convenience of the people of the city and county of san francisco -- to shawn higgins. supervisor avalos: inspector? >> san francisco police department. before us is an application for a type 42 license. if approved in simple terms, it is basically a beer/wine bar. that means you have to be 21 years old to enter. the application is a little bit unique. this is actually a story store, but they are going to license a small, specific area of the premises, so it will allow people of any age to come into the store, but the area to access alcohol would be restricted to those 21 and older. we are recommending this application for approval. i would point out is not in an

area of high crime. is located in an area of undue concentration. we are recommending approval with the following conditions. sales, service, and consumption of beverage shall be permitted between the hours of 11:00 a.m. and 10:00 p.m. each day of the week. next, no noise shall be allowed beyond the area under the control of the licensee. next, loitering. ordering defined as standing idly about, lingering aimlessly without lawful business is prohibited on a property adjacent to licensed premises under the control of the licensee. interior lighting maintained there shall be sufficient to make easily discernible the appearance and conduct of all persons. and patrons in the portion of the premises where alcoholic beverages are sold, served, delivered, or consume. a person under the age of 21 shall sell or deliver alcoholic beverages. next addition, no more than 5% of the square footage of the premises will be used for the on sales service or display of the alcoholic beverages.

petitioner's shall not make structural changes in the premises and interior without prior written approval from the apartment here the sale of alcoholic beverages for of sale is strictly prohibited, and our last condition -- the sale and service shall be incidental to the premises primary business -- the sale of jewelry. with these conditions, we are recommending approval. i would point out that the applicants are here in the audience if you have any questions of them. supervisor avalos: very good. thank you. supervisor mar. supervisor mar: i just want to give my gut reaction that this is an unusual application because it is a sustainable jewelry store that wants to sell alcohol. i worry that it might set a precedent where we will start to see more stores that are not traditionally selling beer and wine and alcohol trying to do this in the future, so i am wondering -- are there other examples of this? i have some concerns about this, especially as it impacts other small businesses that have been

selling alcohol traditionally, and restaurants and other clearly connected businesses, but this is a jewelry store, so could you explain a little bit about -- is this a pattern? >> like you, i had similar concerns. what i can tell you it is we restricted the of sale component, so they will not compete with any of sale businesses in the area -- off- sale business is in the area appeared second, it is a very small part of the premises where wine can be served. it is not their primary business, and that was the purpose of the last condition. first and foremost, they are a jewelry store. talking with the applicants, their primary goal is to really highlight local wineries. it does sound kind of unique, but just like people are pairing wine with food, i think these people will be pairing it with jewelry.

i think it is new, and i think it is something we need to move cautiously on. in this case, this location, our recommendation was it could work. i do not see it presenting a community problem for a police problem, and i really do not see it impacting competition because it is so unique and specific to them, and is more of an intimate relationship with the customer and them. i do not see people coming in there just to spend time in their wine bar. i think it is more of an invitation relationship. supervisor avalos: i guess -- we kind of joke about a moment ago when you were in office, but it is a little bit like a car dealership opening up a wine bar to help the make a decision about buying a car, or with a shoe store want to do that?

and can expand to other retail outlets in the city. those are some of my thoughts as well. i actually was inclined to support, and i am kind of questioning that a little but right now. i do appreciate your work on this issue. perhaps we could open up for public comment and we could hear from the owners as well. we will open this up for public comment. we will do three minutes. and additional questions necessary. >> good morning. shawn higgins. i understand the concerns you are having as you are voicing them, but i want you to maybe look at it from my perspective here first of all, in my business, which i have been in the jewelry business for 21 years, this is a common thing. to serve wine in the store for your clients.

what we're doing is coming before the committee to try to make it legal because we also understand that our high-end clientele is very much involved in the other high-end parts of the world, including buying fine wine, so we find that that is actually a marriage that works really well for our clientele. it is not going to be an open bar. we do not want people in our store -- we do not want them intoxicated in our store, to be frank with you, because i have over $1 million in liability, and that is on me because of the inventory we carry. that is not the idea of it. i would also point out to you back i do not know if any of you have never been into our money here in the city -- then into armani. he did this years ago. this is not far outside of what we have seen in luxury

retailing. again, we look at bringing in small sustainable winery's to pair with our sustainable jewelry. we are currently the only business of sustainable jewelry like this in the united states of america. we will not be the last one. it happens really fast. the sustainable wine part is really to allow us again to have some clientele abilities and not really use it as a bar. we have already shown great success in our business. we continue to pare the wine bar part of it so that we continue to grow the business. am i making sense at all? supervisor avalos: it makes sense. i guess, again, i get the position where i want to consider what is the city's overall policy of around pudding

wine bars in retail outlets? i know we do it in our galleries because we just approve one recently for an art gallery. i would say they your jewelry store is more on the art side. >> it is not a zales. it is not like a mass-produce store. [inaudible] supervisor avalos: i see it as distinct in that way from other places. but is that why it makes sense to put a wine bar there, compared to zales jewelry store or something like that? and will there be a zales jewelry store saying they want a wine bar now because it is happening somewhere else and is competitive that way?

i understand your point of view, but the other point of view that i think allows the idea of we will have more wine and liquor licenses in our retail outlets is one that concerns me. what is our city's overall policy about that? we do not really have one. i do think we need to consider what -- where do we draw the line in this? >> i am coming to you today with a unique idea. let's be honest -- is a different type of economy, and it will be some unique ideas out there, so i totally appreciate where you're coming from as far as setting the policy for the city. from our perspective, we think we are doing a pretty cool thing, and we are doing it with every intention of accepting all the conditions from the police department and not making this a bar scene. this is not the idea