>> in the eastern part of the city. is determined by census tract that had a certain amount of poverty or unemployment that has criteria established by the state and you are allowed to add a certain amount of adjoining districts to ones that have underserved populations and it is largely the eastern half of the city. >> we have a lot of people to participate in the program? >> to date, the total number of businesses that have taken advantage of the program is 1222, 25% decrease from last year. we can only attribute that to the slow economy and businesses being less aggressive about hiring. we have also had in the last three years massive outreach on this program, so we think we have reached a saturation point for those businesses that were

previously unaware of it. it's a program that allows you to retroactively get state income tax credits. once businesses are aware, they can look back and see if the have qualified expenditures or qualified hires. it is just anecdotal but we think we have reached a lot of businesses that we may see a smaller number as new businesses are eligible. with regards to america's cup, we have a proposed budget next year of $10 million, down from a 12 million we had originally budgeted this year. that number is proving to be in excess of what is needed to cover the america's cup city costs. when the board of supervisors was discussing the americas cup project in march, we do the budget was down to $10.9

million. costs are now projected to come in below $8.5 billion. next year we will be focused on implementing the america's cup at hosting events in august and october at we have executed a mou. our initial reimbursement is targeted before june 30 that we will be reimbursed a quarterly basis. mike martin is your view of further questions. supervisor avalos: on the question of how they are beating the june 30 funding deadline -- >> i'm the america's cup

director -- we have had several meetings of the course of june to go over are expected expenditures by june 30. they are fully expected to pay all of those costs at a lower number we saw that during our march urines and we will be executing that payment, basically everything through june 1 will, june 30 and then there will be 30 days and the final invoice to make the remaining payments. there'll be additional time to make that payment. supervisor avalos: i do recall the 8.5 million figures -- do you recall? >> there were a mixture of pledges and money received ino's the -- money received.

i know they have been pushing out in time the board hearings. supervisor avalos: hitting that target? when are we going to hit that? >> might understanding is they will hit the 12 million. that memorandum of understanding is to by the 12th of june showing their id -- ready to pay for their embarrassment's going forward. supervisor avalos: thank you. >> moving forward to small business -- the office of small business has served 2500 clients as of the end of may and is expected to ebb and with a number of clients served a year over year by 3%. a of increase the number of workshops by 30% and the office of small-business is actively

doing our reach, averaging more than one workshop for week at this year, they have highlighted compliance the zone benefits and they have three workshops of mobile food facilities. the goals for next year include the small business commission meeting twice a month rather than once a month as well as returning to full counter service hours. they have been open monday through thursday but next year, they expect to be fully open 8:00 to 5:00 monday through friday. they will engage in an analysis of their services and programs. the office of budget of dallas's four years old. analysis of the client data, we have a lot of good data but we think now is the type to do an assessment to understand how

impactful the office has been. the office is not entrenched in a lot of long term practices of there are changes to be made, this is a good year to do it. they are also going to launch a launching and licensing permitting portal the race of navigation system. it's the holy grail of where we're headed. we would like businesses to do as much of the permitting as necessary -- as much of the permitting as possible online. what we are starting with is something much more modest, a comprehensive and definitive list of what is needed based on business type and a schedule of how you should tackle those. the case management assistance is always available the office of management assistance.

the bulk of the proposed a distance -- proposed additions fall in the neighborhood development division. the neighborhood development division was very active in this past year. they were able to make 31 loan that create 83 jobs with just eight that rebels dollars -- $800,000. we opened a grocery store at several small businesses that have served as catalysts on third street and there are now weekly events happening and we continue the third street corridor business attraction at retention program. on that central market, the table tax and it has resorted it 450,000 square feet of new leases being signed. in the eight neighborhoods -- in eight of the new red districts we work in that participated

marketplace initiative, they can see rates went down in a struggling economy and we take that to to the lark -- to the attention of our managers at the good works being done by stakeholders. that new initiatives -- supervisor avalos: on that -- supervisor chu: i have been out in my neighborhood and that we have done that in partnership and have done a few merchant walks already. as we talk to some of the businesses, there were a few that did not know about program and were excited about it and it's good we were able to get the information out there. there were also a few that were struggling and perhaps behind on payments already but they were starting to finally turn back into the black hat outstanding debt that was still too, not all

of their account balances were current. the way the revolving loan fund is structured is it is geared toward businesses in good financial shape. has the department bought about any kinds of programs that could fit those who may be behind on a few payments but have a good business plan going forward at a strong business plan because we see that as a gap we are not able to fit. they don't necessarily qualify for the revolving loan funds and they go to banks and banks are not willing to fund them. can you express some thoughts on that? >> yes. it is concerns like that that make us look alike -- that make us look at the mayor's proposal to augment money for business loans in a more comprehensive than the broader fashion. the budget analyst did not have the benefit of getting this information and type for this hearing, but we will work of the

descriptions i am about to provide to you. what we are about to do with the $4 million of loan funds the mayor has proposed to fund us over the next few years is to create a spectrum of grant, forgivable loans, at long products that address exactly you are describing. we think there are some businesses that would be better suited to receiving grants for tenant and sought improvements and there are some that are best suited by receiving forgivable loans, which would be continuing to operate for three to five years at those loans are forgiven. there are some for him at the other end of the spectrum, they have graduated out of a small revolving loan fund and the need monies over $50,000 a year to effectuate an effective

expansion, renovation, or to buy more products or have more working capital. what we want to do is not fund the revolving loan program the recently approved a supplemental for any more with these bodies. we believe the money given to us this year can be spent, $500,000 in the next fiscal year and another $500,000 in the following fiscal year and that is adequate for that sort of market segment. i can describe in some detail exactly what we are proposing. supervisor chu: if you could share what is the plan for that -- >> $2 million in year one and $2 million in year two. we would propose the loans and

larger sizes than $50,000 and proposal -- $1.5 million in year one and 1.6 million in year two. for the forgivable loans, we would propose 75,000 because it would take a little time to give it up and running. 150,000 in year no. 2. grants that we would like to focus on ada assistance. we have heard there are businesses struggling to make 88 upgrades that are necessary to avoid lawsuits and meet other building code requirements. $425,000 in grant assistance and facades in the first year at 250,000 in the second year. supervisor chu: thank you.

>> back to some of the new initiatives. the job squad is an initiative of the mayor's that is direct outreach for small businesses. the idea is these two full-time employees would be out in the neighborhood nearly every day assisting small businesses who are too busy or small to take a timeout to come to city hall to work out a problem. the idea is these folks would be highly trained to do outreach and education around assistance programs of all sorts, whether it is reviewing rates are tax benefits are department of environment assistance -- and the thing this city has to offer, they would be educated on how to address a business's ability to address it. they would also be able to provide rapid assistance to

neighborhoods detrimentally affected by various occurrences or, if you take valencia's street -- valencia's street for example, we have well-trained folks that could have gone out after the night of vandalism and assess what was needed and delivered city services effectively. these folks would also be able to identify and escalate bigger issues and served as a front line for identifying systematic issues small businesses are facing and bring them to policymakers. one issue we hear a great deal about as large charges for water and sewage hookups. that can often be a deal breaker for businesses trying to open. i spent a little time talking about the loans. at understanding the needs of small businesses, we believe having access to funds to do ada improvement and in order to be able to afford certain types of

improvements, we think grants or forgivable loans are a better route than having something be a loan payable back with interest. supervisor kim: i know that in the budget legislative analyst's report, there were questions about how much of the $1 million we appropriated at the end of march had wind it down. given the mayor is proposing an additional $2 million in small- business loan funds -- i think there is general consensus we want to strongly support this program and help our small businesses with low-interest loans, but the question is are there -- is there the capacity to wind down a large amount of money given their staff resources, etc.? given what we have appropriated has been blown bell hand a little bit on their resources

capacity of the organization to further wind down another $2 million this year? >> as i was discussing -- supervisor kim: i apologize if i repeated the question. >> that $1 million has not yet been deployed. half a million was put on reserve and half a million was given to us. of that, $380,000 -- there has been $380,000 worth of grants to small businesses approved by working solutions. none of them have been funded because we have not got the money to them. that actually happened last week. there has been a lot of activity with screening at approving

loans. the money should go out or in one day -- in one big tranch. with the other money that will be revolving, it should be enough for the next two fiscal years. what we would propose for the remaining $4 million in proposed budget for loans, we propose to be allocated much differently, to actually hit businesses across a larger spectrum, including grants for compliance construction work and tenant improvement and forgivable loan for tenant improvements where a business stays in operation for between three and five-year spending of love. the other day this businesses

that need loans larger than $50,000. we would look for community lenders for that program to find a lender that would hopefully leverage the money and add additional monies for something similar to a revolving door program. forgivable loans and grants, of we've worked with a nonprofit community partner to administer those funds. >> what an example of some that we would like to give funding for that is larger than $50,000? we are obviously not getting those out yet. >> it is the same type of programmatic needs we see in the $5,000 to $50,000. folks looking to do bigger scale or a mass some amount of inventory and need the money to

amass that and been to rate to sell. it's often times folks that need to invest and their equipment, often times because there is more energy-efficient equipment. those are the main areas we would see. the third of several new initiatives proposed as a halftime temporary position to support the night life and entertainment sector. we believe this staffer would complement the work we're doing by industry sector, by focusing on the night time economy entered we think right business assistance and promoting the sector and having a well- balanced throughout the city is something we have not paid attention to it could yield a lot of very positive economic results of a were more

systematic and how we look at our light -- look at our by -- look at our nighttime entertainment sector. supervisor wiener: regarding the nightlife and entertainment position, as i know you know, earlier this year in my request, a rough study was released showing -- a study was released showing night live, not even a subset, this doesn't even account for street fairs and daytime entertainment. this is an understated number in an this shows our $4.2 billion to eight san francisco economy and produces around 50,000 jobs and $50 million in tax revenue. i think that's a very conservative methodology and i think these numbers are understated.

what we have seen more and more in san francisco is that due to all sorts of factors, including but inertia and resistance in some of our city departments, not only lack of support from city government but sometimes hostility. we have seen some events that have gone away or one recently went outside of san francisco, so i was excited when the mayor announced his budget would include a position for night life and entertainment because when you look at the critical role -- you look in the market and navigating the different departments, it makes all the

difference in the world that i think it is critical we review nighttime entertainment from an economic perspective. i was disappointed when the budget came out and it was only a part-time position. in my view, that is not adequate and i would be interested in seeing that become a full-time position. this is a big sector in our economy we have neglected and there's a lot of work to be done. with the right person in that position fulltime we could make a huge difference. if you could comment on that? >> i think you're right. the part-time position allows us to cut the nighttime economy in one or two ways. we can look at certain sectors with in the economy citywide or look at certain neighborhoods, but we cannot let comprehensively everything. the planning department

recommended an entertainment master plan and i think that could very well informed where the future of our parts of the night time economy are situated. i think that would require more resources. i think half time is a good start. if you want to hear from joslyn -- supervisor wiener: the entertainment commission is a chronically underfunded agency and we need to start doing this the right way instead of under reinforcing. >> thank you. i'm the director of the entertainment commission. this is a position under oewd.

we believe there is a tremendous amount of work to be done in addition to planning projects yet described, -- it spreads across the brat of all projects in that department in addition to the workforce as well because of a number of jobs that are available to workers that don't need a tremendous amount of training. it is an industry that does not hire without high levels of education. it is really important and i think there is more than a full- time position to be honest and we are fully supportive of that and will help as much as we can. supervisor wiener: one other

question -- going back to the revolving loan funds, once bill loan is made, is -- does oewd stay in contact as a resource? >> absolutely. we are on a committee of working solutions that helps to select businesses and we are well aware of who those recipients are and we continue to work with them if they have any issues related to anything regarding their business. supervisor wiener: when we helped kick off the loan fund in my district, it's running into huge problems. supervisor cohen: i wanted to know if the revolving loan fund had run out. >> there are still dollars available to issue things to your proposal.

some of that has come back and has allowed for a few grants around $25,000 to be made again. that number will continue to revolve but with the million dollars you gave us mitt year, half a million of which is about to arrive, there will be another 120 that can be sent out in the coming months and we'll come back and ask the other half million, for reserve and we think that will cover the vast majority of the next fiscal year. supervisor chu: it looks about like $620,000 is not in the preapproved pipeline. >> exactly. continuing on, the other two new initiatives help to backfill the hole left by the dissolution of the redevelopment agency. as you heard during the presentation about where

resources are being deployed at which department has the responsibility for what, oewd is leading the central market partnership, which is suppose to be funded with $1.7 million. the priorities are informed by the central market economic strategy and is focused on filling vacancies, creating jobs, and preventing displacement of arts organizations that includes parts in public-service programming, office of improvement, and programming for our tent next to use projects. this will be an enormous increase and that general fund and a much-needed increase for the central market because previously the redevelopment agency would have provided a good deal of these funds. this allows for the continuation of important programs, just now under these to the family.

the bayview initiative would include $1.2 million and continue work under the redevelopment agency, including $600,000 for passat and tenant improvement programs. this would be solely focused on third street corridor and bayview and represents a commitment that would have been met by the redevelopment agency. it keeps that corridor at a base line. it also includes funding for activation events and funding at the focus of the plaza and money to the use for mixed use development projects. supervisor cohen: about the third street corridor bayview -- which section of third street are we talking? are we specific talking best -- specifically talking evans to

paul? >> it is not restricted. something we want to do as the invest a neighbor its initiative becomes an overlay for the work we're doing and becomes a comprehensive umbrella even in communities where we have long been doing work, there'll be different levels of assessment but we propose an assessment going into the next two years looking at what tools we have available, what are we doing, what has worked and what has not worked? in all cases, these resources are limited. there is still a lot of work to do here but we can see them generate their own energy. it is something we will be doing