we can take public comment on this item. i have a number of cards. as i call your name, you can come up to the mike.>> good aft, commissioners. as a member of the small business commission, we voted in support of this legislation. we want to urge you to support it also. we have not had time to review the change that is proposed by the planning department about removing sales and services. we would like to have time to review that and weigh in on that and we are asking you to remove that one portion today so we can carry it out and more -- have more conversation. thank you. commissioner wu: thank you.

kraska afternoon. i am -- good afternoon. i am co-president of the business association. we have spoken with the planning commission and stated our position on this matter a couple of times. last time being a year ago or last year when we were discussing the issue of chase moving into divisadero. we had the merchant association who thought the banks were already in the formula retail ban because of the retail and service component. that aside, we wanted to restate that it is crucial to preserve and protect our small business community to add financial institutions in the former -- and the formula retail band. we are opposed to having the retail component removed from the wordage and would

appreciate for the discussion. i wanted to reiterate how important the small-business community is on the vibrancy of the city. i moved into the neighborhood in 1990 when hayes valley was lumped under the western addition and was at that time pretty much one of the worst neighborhoods in the whole entire city. we in the small business community have taken hayes valley from the worst to the best ever heard in the city and we have done that because the neighborhood is unique, small businesses, sold proprietorships for the most part. -- sole proprietorships for the most part. that is what the city should be about. the area shoppers come to our neighborhood because they're not confronted with starbucks and banks on every corner.

it is not necessary. global travelers come to our neighborhood because they are shopping in a very unique and undeniably vibrant neighborhood, only small business and it is important maintain that. thank you so much. commissioner wu: thank you. laurence? and tess wellborn and catherine petrin. >> i am the manager of the mattress co. and i am on the board of the hayes valley labour association. -- never association -- neighborhood association. we do urge you to approve this,

we echo what russell just said. hayes valley has transformed itself over the last two years, largely through sole proprietorships and any businesses. not only with the hayes valley be threatened visually and esthetically by the addition of financial institutions, but in addition, these institutions, when they come into neighborhoods frequently cause commercial rents to rise in the neighborhood which is also threatening to the individual and unique character of the we very much urge you to support this measure for us. thank you. commissioner wu: next speaker. >> good afternoon,

commissioners. i own true sake or i have been doing business for almost a decade, quite proud of that. i'm here to speak to you today about everywhereville. it is anywhere and everywhere. we see it in the bay area and we see a more and more in seven francisco. same names, same store fronts, same looks. the homogenization of san francisco is almost complete. it is refreshing when customers come to the store and say, hayes valley is really unique, it is different. i ask, what do you mean? and they say something is all about it. when did not having chain stores in your community become awed or different or refreshing? we have an abundance. i would have you seriously

consider conceptualizing the financial services storefront as the anchors of everywhereville. they are strictly on line with the coffee shops and starbucks and walgreens. consider having the anchors be introduced in the definition. thank you. commissioner wu: tess wellborn? >> good afternoon, commissioners. i am with the haight ashbury neighborhood council. your definition of financial institution should be broader than banks, savings and loans, and credit unions. there is much more amalgamation going on in the financial industry and things are getting bored. i would prefer you to have a broader definition. -- things are getting blurred. financial institutions wreck the local and national economy and demanded bailouts.

the privatized profits and what the profit to -- the public to pay the bill. visito-- they want the public ty the bill. visitors do not need more change or starbucks. residents want local, diverse businesses and business districts. they do not want identical strip malls from area to area. we want to have small business owners, as many as we can live in san francisco pay taxes and spend their money and their time here. they did not shift their profits out of town. -- do not ship their profits out of town. i would say keep the sales and service language in there for now until we see some good reason. we need to have broader categories of financial institutions in formula retail. thank you. commissioner wu: thank you.

>> good afternoon, commissioners. speaking on behalf of the telegraph hill dwellers. one of san francisco's oldest and largest. the dollar's support supervisor mar's 0-- dwellers support supervisor mar's definition and the amendment that would be an unnecessary appeal. in north beach and telegraph hill, neighborhood groups and merchants have worked together for many years to protect the character of our community that makes it a special place to live in and visit. the formula retail law has kept our neighborhood and others across the city from turning into a cookie cutter chain store outlets. there is no reason that financial services and they should not play by the same formula retail rules that other retail stores must abide by. making the law clearly apply to them would close the loophole

and protect small businesses and the character of our neighborhoods. for the same reason, the proposed staff amended to delete an entire category of sales and services, other retail from the uses that are subject to formal recall -- retail is a bad idea. -- formula retail is a bad idea. i have comments in a letter that i will leave here. commissioner wu: jim marshall and our next speaker. >> i am a hayes valley resident in fault with the hayes valley neighborhood association. -- involved with the hayes valley neighborhood association. i am strongly supporting eric mar's amendment and the

clarification that it provides. we thank him tremendously for making this clarification. our history from statements by supervisors gonzales and -- and others that were instrumental. this should never have come up. at this point, it is not to go backwards. we have that clarification in front of you and we strongly support it. for the same reason i reject removing sales and services under retail, that should remain in it at this point. it needs considerably more vetting before anything is taken out. the wiener alternative is not acceptable. i think supervisors mar and

olague infor bringing this. thank you. -- thank supervisors mar and olague for bringing this. >> i am here to speak in favor of the legislation. financial institutions can be an amended t -- an amenity but when they began to dominate it causes problems. one is the loss of character. a lot of the formula retail uses in banks is one of them. they bring with them some of the flaws that suburban uses tend to have, they tend to be automobile oriented and they are -- they have the standard delivery, to be viewed driving down the road at 50 or 60 miles an hour. it tends to be huge, not

pedestrian scale. often they are dead on the ground level. they keep limited hours. evenings and weekends are generally closed. if you have a domination of them in your commercial district, it can make it sort of deserted at night. this measure would not say no financial institutions ever. if it is a formula retail financial institution, there should be a check, there should be an additional step and some review and approval by this commission. before that goes in. we suggested and regular letter one is to look at additional areas. there's some really, really outstanding neighborhoods of outstanding character that are not protected, have no formula retail controls right now, one is the waterfront special use districts, telegraph hill, barb bury coast, jackson square area, et cetera.

a lot of those areas in the northeast part of san francisco have no formula retail controls whatsoever and we're seeing chain stores going in. recently, a starbucks went in right on the waterfront. the ferry building is a great example of a waterfront use that's all local. you go there, it's totally exciting because it's stores you will not see in debuque, it's totally unique. looking at the waterfront that way and saying let's look at formula retail controls in those neighborhoods and jackson square makes sense. the other is requiring that when formula retail goes into a business, one of the conditions of approval is they meet all of the city street scape requirements so there's a give back, a return to the public for the use going in and all those buildings are compliant with awning, canopy, sign, all of those other requirements so there's enhancement of the public realm and neighborhood character through enforcement.

there are precedents, massage parlors have to comply with street scape requirements as do liquor stores. we think extending that to formula retail makes a lot of sense and we'd love you to consider those amendments, as well. thank you. vice president wu: chris wright, lydia heron and chris schulmann. >> good afternoon, commissioners, my name is chris wright, executive director of the committee on jobs and associations representing many of the city's larger private sector employers and we ask you to oppose supervisor mar's proposal. looking at two of the points made in the report that you received from staff, the first point argues that formula retail controls were primarily adopted to maintain unique visual character of the city's neighborhood commercial districts and i understand that's a component of it and i

understand why that's there, but i think it could be argued that the primary reason that it was adopted by voters in proposition g was to protect neighborhood coffee shops, liquor stores, video rental stores, from competing from the larger big box and chains that they found themselves competing with. that doesn't necessarily apply to the banking world. there are very few sort of mom and pop stores. i would also argue that banks are inherently different from these retail operations. they are traditionally they don't follow the same traditional roots that these retail stores, how they operate. they are networked so that you can go from one place, put your money in one place and get it out in another place. the second statement in this report mentions that and has been mentioned here today that

they negatively impact street life. i would argue and it was mentioned earlier that they are anchors of everywhereville and i would argue that they are anchors of strong neighborhood commercial districts. let me just say that banks are inherently, these bank branches inherently serve local residents and retailers. i know from my personal experience in the richman district, when i go to the bank to get cash i spend locally, i visit many stores along that corridor. i would argue that this proposal in general is unnecessary. more than half of these commercial districts already have c.u.'s or outright bans. this can be done. the approach supervisor mar is putting forward is a blanket, one-size-fits-all proposal that raises barriers where neighborhoods may not want them. i would close by saying that each bank branch employs people,

10 to 15 people. these individuals they employ represent or come from a relatively large spectrum of academic achievement. they do well. when banks want to invest in san francisco, grow in san francisco, and employ people in san francisco, that should be encouraged, not discouraged. thank you. vice president wu: thank you. >> good afternoon, commissioners. my name is lydia heron and i'm the manager of public policy with the san francisco chamber of commerce, here today representing the san francisco chamber of commerce and over 1500 businesses and we are in opposition to supervisor mar's proposal because we believe that man dating a one-size-fits-all conditional use permitting process will restrict a number of banks throughout the city's

neighborhoods each when a potential branch is desired and supported by a majority of local residents and businesses. we believe bank branches provide essential services to neighborhood merchants and small businesses depend on easy and quick access to banking services. the san francisco chamber of commerce believes neighborhood branches bring foot traffic to other businesses and we believe that there's benefit to elderly and less mobile customers from being closer to their banks. i'm going to close with the financial institutions investing growing in san francisco should not be discouraged, they should be encouraged to stay, especially in the current economic climate, and that each new branch provides quality jobs in san francisco. thank you. vice president wu: thank you. troy campbell. >> good afternoon, honorable commissioners, my name is chris

schulmann, office of small business staff and representing the office of small business and small business commission. the small business commission met on march 12, 2012, and recommended approval of this ordinance as drafted by supervisor mar. the commission noted that a number of small businesses go through the conditional use process and they believe it is not a burden to impose this requirement on financial institutions who have the resources to navigate through the process. the commissioner did not review the proposed modification by staff. office of small business staff has reviewed the modification with planning staff and while we understand the rational e, since the small business commission has not had an opportunity to hear the item, we are unable to support the modification at this time. the commission recognizes this is a policy decision for your commission and the board of supervisors but we welcome an opportunity to hold discussions on the modification with our commission. thank you. vice president wu: thank you. troy campbell? >> good afternoon, troy

campbell, interim executive director for the fisherman's wharf business district. i'm not in opposition to mar's legislation. what i'm in opposition for is any amendment to include the special use district of fisherman's wharf in any formula retail. there's been no community outreach at all about including this type of legislation for that district so i just wanted to go on record and state that we would strongly oppose any amendment to this. thank you. vice president wu: thank you. is there any further public comment on this item? >> hi, commissioners, my name is amy weiss. the spirit of formula retail law is that neighbors get to weigh in on whether it is necessary or desirable for a business with 11 or more establish wants and

standardized decor to move into the neighborhood. 11 or more and standardized decor should trigger a sea of hearing. the law has two catch-all categories. argument that financial services falls under the retail sales and service category was made in the case of 401 visa darro but unfortunately the planning department and board of appeals denied my neighbors and i due process of a c.u. hearing. chase, a multinational bank that played a huge role in the global economic recession has one-size-fits-all national policies, takes the majority of its money out of the community, has thousands of branches with standardized decor was able to move in and displace two local businesses as well as a third potential store front. quoting from the law, the standardized architecture, color schemes, decor and signage of many retail businesses can detract from the character of

neighborhood businesses. when a chase moves into that neighborhood, it makes that neighborhood look like anywhere, u.s.a., not san francisco. san francisco needs to protect its vibrant small business sector and create a supportive environment for new small business innovations. the property evicted two local businesses for chase bank to move in and collapsed three store fronts into one mega-bank which generally has more staff than customers. quoting from the law, formula retail businesses can have a competitive advantage over independent operators because they are typically better capitalized and can absorb larger start-up costs and pay more for leases and commit to longer contracts. more than a dozen businesses inquired with the open space. a lot of wealthy property owners who don't spend time in the neighborhoods where they own property will sit on empty properties. which chains are allowed to move

in without community input, they wonder? the planning department allows big banks? let's move in a big bank without community input. cha-ching. quoting from the law, money earned by independent businesses is more likely to circulate within the local economy than money earned by national businesses. with the locally based credit union, 75% of deposits go to loans to other local members. chase bank's h.q. is on the other side of the country. although hundreds of my neighbors feel what happened at davis darro was a misinterpretation of formula retail law, the zoning administrator said the best way was move forward was to add financial services as a specific use and that's what we're doing here today. thank you. vice president wu: thank you. >> good afternoon, commissioners. dean preston, resident of district 5. i thank supervisor mar for his

leadership on this issue and supervisor olague for co-sponsoring the legislation. i support it 100%. and i'm not going to reiterate all the compelling arguments that have been made for why it's a no-brainer that formula retail -- i'm sorry -- that financial services needs to be subject to the same formula retail conditional use hearing that any other formula retail business is currently subject to. i did want to take issue with the proposal by the planning department staff on striking the sales and service retail provision and i think -- i've testified before on this issue and general comment with you before you, you know, there developed this myth that financial services somehow was exempt when this law was drafted. it's intentional that sale and service retail is covered and that is as planning department staff notes a catch-all category. this nuance of this type of

formula retail but not this type are covered is not there in the legislation. i want to show you in fact i have the overhead, please, a list. this is -- these are all of the sales and service retail uses that are not separately listed in the formula retail law. and so this is what the department staff is proposing to take the position that the formula retail law does not apply to any of these. the department has not -- has been inconsistent in the past between these different provisions. for example, auto zone recently had -- my understanding is that they had a formula retail conditional use hearing before you. they are one of these uses. they were under the catch-all, they're sales and service retail. so some categories have been

subject to conditional use under the formula retail guidelines, some have not. financial services i would submit has become exempt by historical accident and the fact of for the sake of consistency the department has continued to apply that exemption. as ms. weiss just testified, the suggestion was made, let's clarify banks with legislation and that's what this legislation does but i think to throw out the other categories would be problematic and to the extent further clarification is necessary, it should be done through separate legislation. thank you very much. vice president wu: thank you. >> good afternoon. mark brennan. landlord of 401 device darro, a controversial project. my father built this building in 1984. i live in district 5.

my family works above 401 devis darro. i heard that 12 businesses came to rent the building. that's not true. we had two viable businesses. one was batteries plus, to be operated by a local district 5 man and his wife who is a franchise. the neighborhood or a few neighbors went crazy. they wouldn't go to any meetings he held. they signed petitions, they had dead people sign petitions. the other business was a mexican restaurant. the man, his agent, went down to the planning department, inquired about opening there, they told him no, this is fast food, you're not allowed in, it will take you so many months and yada, yada, yada and he was terrified. we never heard from him again. the fact of the matter is, commissioners, we had 401 divis darro vacant for five years. it wasn't due to holding out for something bigger or better. we had two viable options.

when we opened the building, we had martinnizing cleaners. they were there for two years and sold to dennis and his family, became martini cleaners. after his time ran out, he was not extended another term. dennis knows why he was asked to leave. it's not the commission's business. we have 10% unemployment in san francisco and every three or four years, the chronicle does a story of the exodus of african-american families in san francisco and is it no wonder when we can't hire people when we can't hire teenagers and young people to get their first job? chase bank, the chase branch there, i don't know how many people they've hired, somewhere around 15 to 20 people. the three stores that were preceding them had zero employees. they were all family run businesses. the coffee shop wanted to leave. he was delighted to leave. we helped him move. we paid for most of his costs.

it took him well over a year to get through planning and building. i think he finally got his permits to open. this notion that we're -- this commission is supposed to be for small businesses is laughable. look at the ice cream bar on cole valley, took two years to open. this is ridiculous. this planning department does not encourage small businesses, does not encourage any businesses and we're going to go here and include any business that actually employs young people or anyone with any economic background is very telling. thank you. vice president wu: thank you. any further public comment? >> good afternoon, commissioners. i'm a resident of the alamo square neighborhood. it's a little bit of a red herringo