that takes place. and i'm quite happy to do that i suppose since i'm sitting here. but it's difficult i think for us to try to weigh, especially this kind of -- this kind of situation. i think it's more of a matter, not so much the business side of things, i think what the existing businesses are looking for is a more sort of community-based approach to how you run your business within the neighborhood. like they obviously have a business where for decades they closed at 11:00 i assume or somewhere in there and i think their approach is because that's what they feel the neighborhood expects and respects and you don't have people wandering around at 12:00 at night or 2:00 in the morning.

and i think it's that kind after approach to how you operate your business within traditional neighborhoods like this that for me i think is the key. i understand have you to have a certain amount of volume and all of that kind of stuff. and you picked baileding falling apart from a landed lord that obviously doesn't give a shit, sorry, drifted off into chris daly language there for a minute. anyway, you know, you get the drift of where i'm going with this. i will support the motion. and i'm done. president olague: commissioner moore? commissioner moore: i support the motion. i just encourage all of us, including the department as eastern neighborhoods plan is kicking in and as we have already seen certain trends emerging which when you plan, you never know what the trends

really actually will be, that we stay attuned to saturation compatibility, proper mix of use so we're not completely overturning or what really the strength of these particular areas are and the mission is very clear, those people held the frontier for many, many years. what i want to pick up on is a comment commissioner fong made, and that is two family businesses are going to be sitting next to each other with probably the same ideas for their children for pross parity and successful business including a full working business environment. and while we're talking about differences here by background and by one having been there for 40 years, which is a very long time, i think it will create challenges as well as opportunities to really look at the common goals because it's

only one and one is four if this is going to work out. you're not going to be succeeding if one is trashing the other or one is too loud to interfere with the other. there's going to be a new challenge. and i'm putting my support behind this project to see that really happen because that is really the best of what this commission supports. we're not as commissioner fong said, trying to squeeze in corporate entity which has its headquarters somewhere in some other country or in some other part of the world but we're talking about people who want to be in the city as a family and as a local business. president olague: commissioner antone eenie? commissioner antonini: along those lines it's been noted that mcnevin brothers both live in the neighborhood in which they're putting this restaurant in so they're part of the community in a very personal way. and staff did point out there was a discussion about oversaturation. but it says the project will not

result in an over population of restaurants in the valencia street n.c.t. i assume why we don't have numbers, there's parameters, 20% or something, and i assume that this does not bring us above that. >> the general plan basically says 20% we start to look at oversaturation issues and 25% we get really serious about it. i believe the number for valencia street right now is 18%. but that's the district overall essentially from 14 to 26. >> commissioner to be fair, i think corey's last point is important to point out because overall, the district does add 17% or 18% but there's a very strong concentration within a few blocks that i'm sure is above the 20% or 25%. just to point that out. i think that's the concern some folks are raising. if i may -- the thing that is somewhat difficult in terms of

managing these districts, you used the tool in other districts for flat-out limiting number of restaurants, or certain classifications of restaurants perhaps. the situation here is would take that to another level. what i'm hearing is the concern that there are certain types of restaurants that are perceived to be capitalized than others. and that becomes a very difficult -- that's where i think our toolbox doesn't allow us to do that, right? we're not talking formula resale here. we're talking locally owned individual restaurant, who admittedly some businesses have more capital to work with than others. for us to get into that kind of management i think is -- well, it's questionable legally but i also think it becomes very, very problematic for us to try to make those judgments. so i mean -- but you have done things like restaurants and other districts as has been pointed out, you have limited numbers of restaurants and that's something we could look at in this area. but going to the next level and distinguishing between different

types of owners i think is very, very problematic. >> if i might follow up on that thought, i guess as director ann pointed out the district in its entirety as it spreads out along valencia, which is a long distance, probably lower percentage but these few blocks may be higher in restaurants and bars, no doubt about that. although there's an upside to that, too. and that is people like to come to an area or walk and live in an area and walk to the restaurant area and be able to patronize different places without having to either get on public transportation or get in their car and go a few blocks away. in fact, people made comments to me there eelly isn't a place in san francisco where there is a collection of restaurants that all are close to each other. they were talking about the gas lamp, which they've done a very good job in san diego and it's an older area that has a lot of restaurants in that area. and they were pointing to the fact that, that's convenient

because you can walk from one to the other and not have to go too far out of your way. so if there is an upside to there being a number of establishments in walking distance. president olague: commissioner miguel? commissioner moore: i'm just going to refer to some personal thoughts. i moved into the hills roughly 36 years ago. there wasn't a single restaurant. first one started two years after i moved there. now we not only have a lot of restaurants, we have some destinations restaurants. so-called. some of the older, originally established restaurants over that period of time have changed their hours. stay open later. because there is now a larger group that realizes there are restaurants in the area and they go from one to the other. oh, i hadn't known that was there. we will try it next time. that sort of thing.

and they actually extended their hours without question. there are restaurants that have changed hands in several cases that have changed their cuisine under the same ownership in many cases, but it's a much more lively area, not impacting living around. they're all very respectful of each other. other than a couple places that aren't open for dinner, they also serve liquor. they have, you know, at least wine and beer licenses. so the concept of clustering, i have seen from ground zero in effect works and it's working better. president olague: i want to thank the individuals for coming out and for being vigilant -- don't mean to say that funny, and i'm sure that you will work well with these new neighbors and you guys -- the two families

will dialogue and continue to work. but i want to thank you guys for staying in the community for 40-some-odd years. and just hanging in there because a lot of folks didn't have that same, you know -- and for pointing these things out to us. sometimes we just don't catch this stuff. we have been saturated so much here. >> a lot of times, i had to leave my name and walk along the neighborhood and see what's happening and come back in order to get a table. president olague: and meeting with folks and i'm sure they will continue to dialogue with you guys since you're right next door. hopefully it will be a win-win at the end of the day. call the question. >> thank you, commissioners. motion on the floor is for approval with the modification of hours of operation sunday through thursday. they're open until 11:00 p.m. friday and saturday until midnight. on that motion, commissioner antone eenie

commissioner antonini: aye. commissioner sugaya? commissioner sugaya: aye. >> thank you, commissioners, that motion passed unanimously. commissioners you are now on item number 19. case number 2010.0094-x, 740 illinois and 2121 third street. >> good evening, commissioners. ben foo. the project at 740 illinois and 2121 third street proposes demolition of existing commercial fueling facility and construction of a new 68-foot-tall building consistently of approximately 106 dwelling units and 80 off-street parking spaces. seeking planning code exceptions for yard exposure and ground floor active uses. the horseshoe shaped new building fronts on third street and north street with a podium

overgrade over basement parking which contains resident units terraces above. they are seeking large project authorization under the neighborhood eastern neighborhood controls. the project complies with the applicable planning code, is consistent with the obblives and policies of the general plan, complies with the first source hiring program and the project will convert an owner-used site into a productive residential development that includes significant site upgrades such as landscaping. the project design consistent with and respects the existing neighborhood character as an appropriate in-field development that complements transitional development pattern in the area. the project will fully utilize the eastern neighborhood controls and pay the appropriate impact fees. project is consistent with central waterfront aerial plan as well. i would like to also note following the relief of the case report, planning department staff, in consultation, consultation also at the request

of the attorneys is proposing the modified conditions as i passed out to you just now. these modifications would clarify the cost of hawkins and exceptional agreement status and also the fact that the private sponsor would pursue and not yet received an agreement with the city to qualify from the u.m.u. in a sense and these changes affect finding number six as well as conditions number seven and 15. that concludes my presentation. i'm here for questions. thank you. president olague: project sponsor? >> good afternoon, president olague and fellow commissioners, or good evening. these are copies of the letters of support. there are eight separate letters, three of which you have not seen, were not in the package. one of which is from the president of the dog patch neighborhood association, jenna carpenelli, who is also here to speak.

i don't know if you would like to look at these but i have copies here. i'm assuming you looked at the project. if we can zoom in. here. so i have lots of time. thanks. i don't want to take too much time. hopefully you're somewhat familiar with the project. but anyways, this is the existing gassing facility in all of its building.

and this is what it looks like from 3rd street. it definitely needs a coat of paint as well. anyway, so we want to replace it with this housing project. and this is what the view would look like from third street. this is by no means photo realistic. it's more or less showing color and blocking out of what the building might look like, especially next to that building that was built about ten years ago, the work building. just, like i said, i will just go briefly. this is a large project, review as you know in eastern neighborhoods, 106 units. it's six levels from the street level, contains a common roof terrace for all of the

residents. it also has -- it's a u-shaped building with the opening of the u facing the east, towards the water. and so that many of the units on the court with diagonal patterns so that each of the courtyard units have a peek out to the water. we spent a lot of time with outreach to dog patch neighborhood association, boosters, next door neighbor housing homeowners association at 700 illinois, the building pictured previously next to -- right next to this building. we also reached out to other neighbors and we tried to work out as many glitches as we could with everybody. in terms of some of the revisions that we made based on

our meetings, we revised 3rd street and illinois streets to incorporate many more setbacks and planters to make a nicer pedestrian experience. we rearranged some of the planters on the roof terrace to try to give a little more privacy to the building next door at 700 illinois. also plan community gardens for all of the tenants of the building and some exercise areas and try to organize activities up there to get more people to use that space. obviously, we are going to hire a landscape architect to work that space out to make it as pleasant as we can. we are going to incorporate wind screens, which is another thing that came up. we incorporated brighter colors at the request of the dog patch neighborhood.

we agreed to make monetary contributions to the green trust san francisco and friends of patril hill nursery to support the neighborhood. we are going to investigate solar power for the project, if possible. green water and other aspects will also be applied to the project as we are required by code. and we are going to hire a lead certified green consultant. we are going to also investigate community aggregate power with pg&e to see if there's any way to coordinate with other projects or people that are already in. we have rearranged some of the move-in strategies. we're going to apply for a yellow zone on a portion of illinois street. so a truck can park there and have easy access to get in and make all of the deliveries through the garage and not on 3rd street. and we're also going to attempt, if possible, to do permeable paving in the new sidewalks.

this project currently is going to supply up to 20% rental b.m.r. units. the parking, as you know, we have maximized the 75%. i know there have been some complaints in the neighborhood but that's all we can do according to the zoning rules, 80 parking spaces and two service vehicle spaces on top of the 80 parking spaces and on top of that, well, included in the 80 is one car share space. there's no density, and we do the 40%, two-bedroom units, which is also required. and there are some impacts to 700 illinois. there's going to be a taller wall against their southern portion. and we've worked, embellished that wall with windows and some articulation and we're willing

to work with them on colors and trying to make that wall as less of an impact as we can. the building facades on both illinois and 3rd street, we worked very hard to break up the massing, and we are planning a high quality modern materials, brick, panels and wood exterior paneling on the base. we broke each elevation into separate pieces so it doesn't look like one big box. let me see. i guess that's really all that i have. if there's any questions that you might have or clarifications or anything like that, oh, the other thing too is the building is actually under 64 feet tall. it could be 68 foot tall but it's 64 foot tall to the roof.

but there are a pair on the illinois side that make it appear taller but that's for the roof deck for the railing of the roof deck. so i don't know. i don't really need any more time. if you have any questions, thanks. >> very good. i have a couple of speaker cards. janet carpenelli, and jean-pierre. >> good afternoon, commissioners. my name is janet carpenelli, president of dog patch neighborhood association. ways going to read my letter but have you it there and also actually the things that david talked about here were pretty much what i was going to talk about. we're especially happy that the project sponsor offered to

support our local other nonprofit groups, which is green trust s.f. what we're doing there is greening 22nd street, our little neighborhood commercial strip, it's part of the eastern neighborhoods green street plan and designated green streets. we have been working privately to start that project along. and as well we have the historic scott school on tennessee street, which is in a lot of need of restoration but right now we have the idea to put the two out buildings to use as a nursery school and family center. and that group has been fantastic in raising so much money for that and they're also giving us the money for the family center so that will help that project break around this year. so i think that's all i have to say in particular about the project. one thing i do want to speak about is the notification of

large projects. i'm kind of confused as to why preapplication for these seems to only be direct neighbors and, you know, notification to the neighborhood association. it seems like there should be a large notification for such large projects and the other thing is in general, my idea about the parapit wall is if a building has a wall and it's flush with the sides of the building, and the building is 64 feet tall but the wall makes it 68 feet tall, i think we should just call it 68 feet tall. i don't know why we're calling it 64 feet tall when for all intents and purposes it is in fact 68. i wish that could be a rule in the planning code, that those parapit walls are allowed, it's an item of discussion and if the building is in fact looking like 68 feet tall, it should be called 68 feet tall.

that way we don't have to argue about the point. we all know what we're discussing to begin with. thank you. oh, but i say, i do support the project. i think they have done a great job in coming around to the way the neighborhood would like to see the neighborhood evolve. thank you. president olague: is there any additional public comment? yes. public comment for this project. seeing none, public comment is closed. commissioner moore? commissioner moore: i'm glad the project really has risen to the challenges which were proposed. we obviously don't know the details but it stands in stark contrast to another type of project we were hearing earlier today. i also want to point out the correction that the studio apartments, small studio apartment in this building are 456 square feet large.

as far as dealing with creative ideas, green trust idea of the outreach to the neighborhood and all of that i think fits very well. and i'm actually quite enamored to seeing this as a very large part of a dense project in reading the number of architectural challenges which i find quite interesting. so i am in full support of the application, particularly resonating with the neighborhood dog patch, et cetera and others having expressive support for this project. president olague: commissioner antonini? commissioner antonini: i may be getting ahead because this has to come up apparently with the board of supervisors but i know the city attorney is here. of course, there is this part of the project that proposes as a way to gain cost to hawkins exempt status to allow the city to give something to the project. what they're giving apparently is the ability to do on site

affordable at 17% instead of 20% because it's rental, which seems sort of the city setting a policy which is the opposite of what we should be doing because we should be giving people incentives as they provide more home ownership. anyway, that's a city wide policy that, you know. but in any case, one could say you are giving project sponsors something in return for having the on site housing. so let's see what happens with that and how it's looked at. i would assume that if it is not allowed, then you would be obliged to do the 20%. and there also is a $1 reduction apparently in the eastern benefit neighborhood benefit fee, which is part of the same package. the other part of the project, certainly an improvement over what is there at the time. and i think it is providing a lot of units here. they will be probably

transitional units for people in the rental status and maybe some people might live there for a long period of time. but there are a number two of bedrooms, which is good. i think the other thing is in terms of design, i hope they would continue to work with staff as far as colors in particular. i think there seems to be this tendency to throw all of these different colors together on buildings to see how we can make them stand out, some would say as sore thumb. some of the colors are fine. there's a rich gold, there's a rust. i mean and there's sort of a tar paper gray black background. but the purple -- lavender and green popping out, out of nowhere is like where did those come from? it just sort of -- i mean, you know, i would hope we can work out something that's maybe a little bit more soothing as you drive down 3rd street. but i think it's a good project. president olague: commissioner

miguel? commissioner moore: yes, in case of full disclosure, i'm a member of two of the endorsers, boosters and dog patch neighborhood association, although i didn't vote on any motion on this particular project or any other projects actually that come in front of them. i'm very pleased with the contribution on the scott school project. that's a project that has to get off the ground. hopefully it can start to get off the ground this year, that would be wonderful. this is obviously a great improvement. it's a lot better architecture that we have seen on many portions -- many areas of that portion of 3rd street pop up, particularly some of the working units, without question. on 3rd street, and i appreciate the greening that you will be working on with a good landscape

architect. 3rd street because of the manner in which muni put in the t rail is a god awful street to work with. it is very pedestrian unfriendly and will continue to be so. illinois, industrial its life is being transformed. and everything you can do to assist illinois street, i'm really more worried about what happens on illinois than i am on 3rd. 3rd third is going to be third because that's what it is. the commercial possibilities of third street, in my estimation, are pretty dim. but illinois is going to become more important. and it will be the street that the residents will want to have unified, will want to look at

more. i don't know if commissioner antonini caught the comments on the colors and stuff that was made by the project sponsor, but there was very lively discussion at the -- excuse me -- at the dogpatch neighborhood association, that they didn't want a dull single-color building sitting out there anymore. we wanted to do something to liven things up along third street particularly. so that's very neighborhood-driven. what the colors ends up being or how bright they are is something else in not the immediate neighborhood, but the general neighborhood. david baker has done some in