us to wait and see how things go before they come on board. president o'brien: any other commissioners? seeing none, we will have public comment. any members of the public, come forward. >> stephen, speaking as an individual. just one thing to consider. my business has been a collection point for latex paints, batteries, light bulbs. we do it. we collect it, and one thing that really makes us upset, but when they go to buy something, it is always buy it from the companies that refuse to do with, so all of the latex paint that we sell or we collect from everybody, that company refuses to do it for the city. it is a lot of work to collect the stuff and do it.

if the city wants to do this program, they should at least go to their people that they buy it from and say, "please by -- please be on board, or we are not want to buy it from you. our employees will not be able to buy it at your place." everybody should participate, and the city should be using their clout to make their vendors do it. what they are doing is they're asking, just like the latex paint, the little guys are doing it, big guys are not, but the big guys are collecting the money, and this is the small business commission. thank you. [applause] president o'brien: thank you so much. let's keep it down. are there any further comments? seeing none, is this an action item? do we have a motion, i guess is

my first question. commissioner: i would like to move this, in addition to the environmental code. president o'brien: do we have a second? all of those in favor, if any opposed? the motion carries. thank you. next item. clerk: commissioners, at request of the supervisor, we will be only hearing -- we will only have item number 9 for consideration for action. however, for agendizing reasons, we will call item 9 and 10 it

together, and we will take public comment on both items. is that ok? we will only take action on item number nine. ok. commissioners, and nine, a discussion and possible action to make recommendations to the board of supervisors on board of supervisors filed -- file 11 0279. this amends section 781.4 of the planning code to prohibit formula retail pet supply stores as defined in the during boulevard fast-food district -- in the geary boulevard fast-food district. according formula retail pet supply stores in the

subdistrict. commissioners, supervisor eric mar is here to present. supervisor mar: 54 during us tonight. i just want to say it has been fascinating to watch the issues you are discussing tonight. i am here to ask your support for a piece of legislation that i've been working on for several months with a coalition of pet supply stores and richmond district small businesses. it is a broad coalition of groups, the coalition to save san francisco pat stores. i want to also say that this legislation will help level the playing field for many businesses along that corridor, and it serves a legitimate public purpose, preserving the mix and diversity of services of goods and goods provided to the richmond district. it also hopes to maintain the special character of our neighborhood. i also wanted to say that the board of supervisors have had

similar efforts in the past. north beach, chinatown, mission district, and many other towns, so it is not new. the coalition i am working in this predominantly based in the richmond district, and i have been able to be here with a number of small-business owners but also the two main merchant associations that are in support of the merchants associations, as well. the ordinance that to have before you is item number nine. it would help to support the small businesses along this greater court or, and it is impacting these businesses, like jane pet stores like pepco, -- ptetco, -- petco, and there are those along lombard street and also california street, and the board of supervisors allowed with a divided vote the

conditional use permit for a pet food express last year. i know that that was a contentious issue that divided a number of communities and especially the small-business owners, the pet store owners. this is narrowly tailored to impact supply stores in that area. on january 20, petco had a meeting that i attended, and for my reid, we were near unanimously opposed to date -- the petco on geary. there are vacant storefronts, and the small merchants are really hurting, and i hope that the small business really considers this and doesn't support of the smaller pet stores and small businesses.

as you can see from the letters you have received and probably emails and causing a receipt from the richmond district and other pet owners come we need your support. we hope you will stand up with the richmond district in support of item number nine. on item number 10, i wanted to say that we are working with the city attorney's office to finalize language to make sure that we're also moving forward to open a broader approach to fill vacant storefronts along the corridors but easing up on voting restrictions so that many other types of businesses, " lee neighboring businesses, would be considered in the corridors, and we will have the language for you on leveling the playing field for businesses in the richmond district this evening. president o'brien: thank 7yo -- you, supervisor mar.

no? we must have some questions here. commissioner yee riley? commissioner yee riley: is there not a process? supervisor mar: yes, the game is still played largely in favor of bigger businesses. they can hire their lobbying firms, and it takes eight votes to override it. for example, on appeal, and i think the playing field is not level, and many businesses do not think about protect them from large chain stores that undercut them and i think really harm the environment in our neighborhoods. commissioner yee riley: if we

have a process in place, it is not necessary to set up new legislation, but you do not been so? supervisor mar: i think you should listen to the business owners on this issue. there is an area where i buy my pet food and other supplies. they are really in need of community support. i think apetco -- a petco would hurt. i do not think the conditional use is enough to protect the smaller businesses from chain stores that may move into neighborhoods like ours. president o'brien: commissioner? commissioner: i had the same question, and you answered it. president o'brien: commissioner

dooley? commissioner dooley: i know that they will review those criteria, so we are looking forward to maybe making some changes so that we will not have to keep dealing with these dates. we will deal with it in the beat -- the c.u. process, but i want to thank you because they do not think that process is working very well. president o'brien: commissioner o'conner? commissioner o'conner: what is the location? supervisor mar: it is across

from the old alexandria theater. commissioner o'conner: the second is that i just want to show my appreciation that you listen to the voice of the small district -- small-business in your commissioner area. thank you. president o'brien: commissioner? commissioner: i believe that petco did impact is small independent pet stores, and i am very sensitive to predatory pricing by large companies that can offset their higher costs of doing business in san francisco with their lower-cost operations and other jurisdictions, so it

is really not a level playing field, and the impact is tremendous, is an impact and often cannot be assessed in three months or six months. sometimes coming 18 months is the time it usually takes for people to change their buying patterns and start to respond to this predatory pricing process, said thank you very much. president abbas ryan pope: commissioner -- president o'brien: commissioner kasselman? commissioner kasselman: -- supervisor mar: by can think of about five within a 1.5 mile radius, and i think the

coalition that united against the pet food express on lombard and then on california near the presidio is similar, and they are very similar of the pet stores. >> it my point is that there are, i am sure, i imagine that the fed would not necessarily be in the richmond area, but it will trickle into neighboring areas, as well. shops on polk affected, but that would be an interesting study to do. president to brian: -- president o'brien: anyone else? we're talking about leveling the playing field, which kind of suggests their competition. is this an outright ban altogether on this particular company coming in in effect, is

it just an outright ban altogether? >> i think this area is really struggling right now, especially this district, and there are plenty of other spots in other areas, may be other areas that might want a petco or another chain store, but for this area, it will protect the businesses and level the playing of for them and keep up a chain store. >> so it would be essentially an outright ban altogether. supervisor mar: there are restrictions to maintain the unique character, which i think is in the public interest of the board of supervisors to pass legislation. president o'brien: you're touching on my second question. did i hear that your amendments

might want to tweak the legislation a little bit so the other -- did i understand that may be other businesses may qualify as formula retail, they might be able to come in in order to get these vacant commercial space is working again? supervisor mar: i think it is how you define fast-food establishments. it was written in 1978, and it is very dated on how it impacts the smaller restaurant to move into potentially an area that might be a neighborhood. the way that the planning code is written is archaic, and we are trying to loosen it up so more different types of businesses could be considered for filling many of the bacon storefronts in the richmond district, as well. president o'brien: thank you. if there are no further comments

from the commissioners, i would like to open it up to the public. two minutes? are we allowed to do that? did we not have a problem last time or something? >> i think if we start the meeting with 3 minutes, bennett maintained at three minutes. president o'brien: but we can make it at two if we want it? if you started at 3, you have to maintain it at three? ok, so everybody legally has a right to speak for three minutes, but if you know your point s already been made, we promised we have heard it, but you have the right to repeat it. >> real quickly, we did have an impact when pat express moved in. we have had a 10% or 15% impact based on that store. that is a 42-store chain. we are one family unit. there is no way that we can

possibly compete, and i think the level playing field is actually correct. the buying power of these companies so far outweighs our capacity to buy that it is not even a comprehensible that we get even compete at that level. currently, in that corridor, there are six pet supply stores of some kind, six within that little corridor, 21 block, and i think the neighborhood would be well served if another type of business comes in to some of those areas or some of those vacant storefronts that are there, and the entire neighborhood can enjoy it. why do we continually have to have five, six of the same type of stores in a merchant neighborhood when we are dealing with a corporation that has 1000 stores nationwide?

so it does have a huge impact. it already had an impact. if the commissioners would take in consideration if that would actually happen, if petco were allowed there, four stores would be impacted, pinched with a 42- store chain on one end and a 1000-store chain on the other, and it does not make any sense, to me at least, to address the store front issued. if you are going to have them come in and that three or four businesses or two or three, you will have empty storefronts, and when you are replacing one storefront -- the impact has already been felt.

the impact will be greater felt it commissioners allow this to happen, and i appreciate it. president o'brien: thank you. clerk: members of the public, if you can go ahead and fill out a speaker card, then i can call your names. >> i am the president of the district merchant association, and i wanted to first as an aside address this level the playing field argument that we talked about recently with the last couple of speakers. i think that the way to level the playing field is not through legislation like this but to apply, make it easier for small business to do business on a citywide basis. that is just my opinion. i am here to do my job, which is

to represent to you but i also believe in self-determination for neighborhoods. the geary street association, i have heard from one other, all in support of this legislation, so i just wanted to tell you that. president o'brien: thank you. next speaker. clerk: [reading names] >> hi, my name is -- i was born in the richmond district, and i am back here. i am seeing independent pharmacies closed. stationery stores closed, independent. restaurants, obviously, but independent printers close, and at one point, i had three large or small supermarkets within a

couple of blocks of my apartment, and now i have only one. they closed. that is it. with no car, i am pretty much limited to safeway. i'm very much in favor of small business. if i have a choice of going to a small business or a large business, i will go to the small business, even if it costs me a little bit more. the richmond district is a very special place, and i really do not think it is a place for chain stores, and i am very much in support of the local, independent that food supplies stores and am very much in favor of this legislation. thank you. president o'brien: thank you. next speaker. >> good evening, commissioners. i am speaking in favor of this legislation. we all know that anytime a big bucks for comes in, small

businesses close. it is pretty straightforward. as for pet stores, they serve a function very much what the coffeehouses we have. we try to keep starbucks in line, and we should do so with the pet stores. i can tell you a personal anecdote. when my car was run over by the car, they donated food for a year. they took me to the vets, because i do not have a car, and what this lady says is true. we need these small businesses. many of us do not have cars. we do not want cars. we want small shops, and we will pay a little bit more for them. i think the small business commission would do well to consider prohibiting the citywide. it is not just district by district. i do not think i have to repeat myself.

it is pretty straightforward. i hope you vote for this. they keep. president o'brien: thank you. clerk: [reading names] susan. >> good evening. i am representing and merchants alliance, and i just wanted to remind all the commissioners here that there is another reason, another thing to consider, which is the economic benefit of locally owned businesses. there have been studies done throughout the united states, including in san francisco chronicle a study that has shown conclusively that locally owned businesses returned economic money back into the city. citizens of san francisco spend

$100 at a chain pet food store. statistics say that $25 goes back into the san francisco economy. if the same hundred dollars is spent at a locally-owned cut store, $43 is reinvested in the community. aside from the other reasons you have heard, there is an economic benefit to supporting the locally-owned businesses for san francisco. thank you very much. president o'brien: thank you. next speaker. >> we had a battle going on, and we won that one. we are a member of the coalition 6 san francisco pet stores. we also helped that were involved with the california

pet food express. when they did open -- i know this is not about pet food express, but i am letting you know what the impact has been on us. when the opened on california street, we have been impacted, definitely, in the marina. the business is down. what pet food express is doing -- what they used to do was say, "here is a receipt from the animal connection. we will match that." that are not doing that anymore. they are so desperate to put us out they are saying, "what do you pay at animal connection?" our customers will save $28. we just can't compete with any new change coming in. this one that was let in is tough enough for us.

the other thing i want to bring to your attention -- i never used one of these, but if you bear with the. -- with me. this is a report on u.s. pet food sales. i am going to try this. can you read that? i have seven copies for you. thank you. basically, what it says it is that supermarkets have 41% of the market share. pet smart has 29%. discount stores have 29%. petco has 20%. they do not need any more. thank you.

president o'brien: thank you. next speaker. >> good evening, commissioners. i have been a small business person since '83. i have had three stores in the city. i guess my question to the commission is you have to figure out where we go as a unique identity of this city compared to other cities. we are known to be a vibrant city with uniqueness and independent stores. if we proceed with this opening, which i support, we are putting another nail in the coffin. that being said, we already know we have had our fights with pet food express, a major chain. it was the second-largest chain

store. down the road, we are hearing rumors of pet smart wanting to move in. now you have three giants who are going to be battling for marketing dollars for that particular business we all enjoy, my colleagues and myself, as independent stores. we attract people from across the nation. people from l.a. come up to the stores because they do not find it where they are. do we want to be like l.a.? or do we want to be san francisco? president o'brien: thank you. next speaker. >> my name is jesse think. i am here as a retail store owner. i am here as a parent. i am here as a resident of san francisco.

i totally support iraq m-- eric mar's legislation. you have to realize, and i think you do, we are not talking about an even playing field. it will never be even. companies have attorneys on their payroll that do what they do. they go from city to city and state to state and fight the little guys. that is what they do for a living. in the last few days, with starbucks -- what we are talking about is not just pet food stores. it is the identity of our city. i went down to low celtuce the other day. -- los altos the other day.