neighborhoods in san francisco and oakland, you find there is a higher concentration of liquor stores, i used and thrift and discount shops in central market even as compared to other low- income neighborhoods. we studied housing and i think one of the key notable characteristics is the concentration of residential hotels in central market. it is tough to read this slide but it shows the high concentration of units in the area are single room units. we did a study of commercial and retail real estate. the statistics to call out is the vacancy rates in central market are the highest citywide. these are from about a year ago. we were planning to update these numbers later this year. we suspect they have gone down notably in referencing the technology leases earlier and

there are a number of businesses that occupy some of those vacancies, we think those lower -- numbers are lower. we looked at st. activity. this slide, far from the better market street team, shows transportation by mode on market street and i circled the two numbers. as pedestrian activity and is -- the first is pedestrian activity. i think that is reflective of some of the challenges in the neighborhood. public safety and vacancies. it reflects a real opportunity. there's a lot more but i will move ahead to the action plan. these guiding principles are what rose to the top during our community engagement process. this action plan is intended to promote the development of a healthy economically functional low-income neighborhood and we

want to increase economic diversity while preventing the displacement of existing residents and businesses. maximize economic opportunities for everyone, create jobs and create workforce development opportunities. the city and its partner should focus on the things that would not happen by themselves and on items implement will -- implementable and sustainable. civilize existing community, and hanson activate the public realm, establish a creative arts community, build community capacity, and improve safety. each of these objectives has a list of strategies and action items attached to them. some of the priorities are indicated and shaded. each item has indicated a lead agency and key partners. in most cases, the lead is a

city agency but in some cases it is a nonprofit partner. i will not go through every strategy. i did want to highlight some that were related to planning and land use. this is not a land use plan. it does not include any recommendations with land use controls but it does recommend some priorities whose implementation will require subsequent land use planning and we're working with the planning department on some of these items, promoting these active use along historic buildings. one project that will be coming forward in the next few months is this trend which i mentioned. it was historically a cinema and has been vacant for long stretches including since 2005. it is being adapted into a live action theater. incentivize and protect our

pieces. there are many organizations coming to the neighborhood and some are finding -- having difficulty finding space or being priced out as the neighborhood recovers and rent goes up. that could be included in the sud. also a desire to limit further clustering. insure the implementation of better market street. the next phase of that is happening in july. we're working closely with the planning department and dpw and the mta to ensure that residents and merchants are able to take part in the dialogue. and establish a tax increment financing district. governor brown had not yet dissolved the redevelopment agency's. -- agencies. we are exploring the x --

possibility of a district to finance better -- projects a better market street. implementation, we will continue, there is ongoing community engagement including meetings of the central market partnership every other month. and the advisory committee is meeting tonight. if anyone wants to stick around. there is a team of interagency city staff that meets to address this action plan. for the first time, there is dedicated funding for central market revitalization in the proposed budget for 2012-2014 and we have engaged in -- an independent evaluator to track projects -- progress to adjust accordingly. that concludes my presentation. thank you very much. i am available for questions. president fong: thank you. is there additional from staffs

any public comment? -- is there additional from staff? any public comment? >> in the enthusiasm for doing this, i am asking the mayor's office of economic development paid attention to the laws we put into place very painfully in the early 1980's, late 1970's to fund housing and transit. we lost all that capacity on the deal that was cut on the merchandise mart. this area is sensitive for stabilization of low-income people. a lot of them are not the people that are the problem on the street. there is a lot of -- low-income people that are an asset to the committee. they need housing and their housing is fragile. they need transit. and we cannot do any more deals

where the developer gets a windfall. the building owner gets a windfall and all the sudden gets glamorous tenants and not one penny is paid into the affordable housing funds and then we take our city money and to a dedicated bus line for that building. that is insanity. we have to as we go through this process build the money back in for low-income services for housing and transit and not have stars in our eyes because all this and we have glamorous tenants. i think a glamorous tenants are where people love to give press conferences about. we really need to keep low- income people that really need housing in this neighborhood and housing should be upgraded and money should be there for housing and transit. thank you. president fong: any additional public comment?

public comment is closed. commissioner wu: thank you. i appreciate one of the major goals is to stabilize the existing community to prevent displacement. i think the philosophy set up there is the right one. i think that focusing the plan is really going to matter. there are some elements within the actual objective that may or may not stabilize the population that lives there. to focus on the ones that are helpful, the full-service first restore, increased job training and employment opportunities, the focus on arts, and i think, nicolas of arts. there's different levels of arts, the theater and grassroots that have been happening in that area for many years. i see a big focus on business attraction. i want to call out dottie's as a company that came from within

san francisco that is not bringing and -- in an outside the high end products. i wanted to ask a question following on the comments -- twitter is negotiating cba with the city and i wanted to get an update on that and understand what the process is. they have been given all these incentives to come into the neighborhood. what are they doing in terms of giving back to the neighborhood and affordable housing, in terms of other considerations? >> sure. the city administrator is the agency responsible for negotiating community benefits agreements with companies that have payroll over $1 million and have taken advantage of the payroll tax exclusion. i understand they are in the process or have completed a fact

sheet about defining how the process of negotiations will work. it is under review by the city attorney's office and should be released sometime within the next several weeks. we have been advising people who are interested in taking part or hearing about that process to attend the cac meetings because that is the public forum designated for those. commissioner wu: the cba will be discussed and there will be at unity to have real input into that agreement? >> absolutely. commissioner wu: thank you. commissioner antonini: thank you. a few comments and questions. i am old enough to remember this area was not always economically depressed. in the 1950's, you would come in from out of town to see "the sound of music" at theaters and

you thought nothing of it. it looked nothing like the rest of san francisco today. the fox theater was billed as one of the finest theaters in san francisco. it was a very vital area and it can be again. a couple of things that i thought -- your report was very good. you are talking about creating a low income neighborhood but talking about new housing being developed. what's your goal should be is a mixed income neighborhood. -- what your goal should be is a mixed income never did. providing for present residents but also attracting others that adds vitality and economic stability to the area. i think you -- there is as has been spoken about, the amount of nonprofit organizations that are located in this area is very concentrated, but it was stated in your reports that 57% of the clients that are served by these

agencies come from outside that area. there are 26% who live there. i am not saying that anyone has to move anywhere. it may be possible that if you can be close to public transit, it did not necessarily have to have a concentration of all services just being in this area. they can be in other parts of the city which might tend to minimize the number of people who come from outside san francisco often looking at -- to prevent residents there -- to prey on the residents there because they feel everything is there for them to take. the crime is often from people from outside san francisco. you spoke in here that many of the structures are in bad shape. they are not accessible, they are in poor condition, they're not seismically fit, and i have said, anything you can do to provide new, affordable housing that replaces these structures

and while these are often historic structures, any kind of trade you could do that the developer would come in and develop these, tournament to tourist or market rate or whenever in return for providing an equal amount of affordable housing, which i think make sense for everybody. you come up with new affordable housing that is better for the residents that are there. that may be a strategy to follow. on outreach, you have to outrage -- outreach to all san francisco. people from everywhere including tourists, commuters, and businesses. the one thing you hear from people is what is wrong over there, they do not know why they walk a couple blocks out of the way and it looks unlike other places. new york has cleaned up times square and other cities have done a great job with the areas that are depressed and we have not quite gotten there yet.

maybe we can take a page out of some of the other cities in getting this job done. sue hester spoke about funding. i do not know about the possibility of infrastructure finance. we're allowed to put more of the money that comes out in in terms of tax revenue back into the district from whence it emanates. i am very much in favor, the breaks for businesses make perfect sense because it is never going to go anywhere if somebody does not invest in there but they do pay some taxes anyway. even at a lower rate. if we can keep some of the money in the district, it would help. becoming a destination is another thing. if you have theaters and restaurants and become what market street was before which was a center for entertainment and legitimate theater, even cinema, perhaps are things that

would help the neighborhood a lot. and finally, there was a large section that talked about inadequate resources for the justice system. the report says, "charges against repeat offenders are often dropped rather than being pursued." you will #-- never rehabilitate anyone, she makes serious enforcement of the laws they're breaking and -- unless you make serious enforcement of the laws they are breaking and get them into enforced debilitation -- rehabilitation. those are some views i took out of this reading. there is a lot of interesting information in there that your report was not able to get into because of the constraints of time. thank you very much. commissioner miguel: i think the

report is extremely well done. i appreciate your work on this. i think you have an excellent team in place. a number of names i recognize. i know debra freeman who i had the pleasure of working with on the cal academy, is very good on this type of thing. i have been working with neal and others from the department on the better market street plan which is coordinated with this. i, too, as commissioner and to name any -- and to many -- antonini remember market street. it is not going to be like that

and it should not be because we're bringing in housing which you did not have in the same manner of all. i think what we are creating on market street is going to be far, far better because it will be, if the plans go ahead and if we are around long enough for them, a truly mixed neighborhood. that is what it should be. it should have that vital -- vital to the central part of the city and i appreciate the work that you've done. the report is excellent. i have attended either two or three of this neighborhood -- in effect, a city-wide hearings that were held. there were very well attended. the questions were thoughtful. the people were enthusiastic. they wanted to follow the process. i think you have done an excellent job at managing it.

president fong: i will follow-up on commissioner miguel's comments. this is -- of all the things we have looked at, this one is one that will require the finest balance of the two and i find it interesting that market street, one of our few diagonal streets that intersects and bisects san francisco is calling for this mixed use we're talking about. ms. hester's comments about the folks you see on the street are not always representative of market street. i think there is a hit in san francisco. there are people who live in very small apartments in the area that you do not see because they are senior or disabled or not able to get out. i want to make sure we do not forget them. and their conditions. but i think it is a good plan.

the chatter on the street about market street and the improvements, whether it is including twitter or not, is good for the city. it is good for more development and improvement to the area. i am supportive and looking forward to seeing more move forward. commissioner sugaya. commissioner sugaya: to get back to what commissioner will -- wu was asking. is it possible to get an informational hearing here about the -- >> [inaudible] thank you. >> i love the analysis and it will be interesting to see how it will conform -- inform the wc20. and l looking at -- looking at

how we can look at that across neighborhoods. we have this conversation a lot over -- about overconcentration. whether it is restaurants or establishments that serve alcohol. we can look at how we can create parity and make sure neighborhoods have the kind of services we want. i am looking at the data and it will be interesting to the extent when into more data was neighborhoods. it could be very informative. i did have a question about the sixth straight police substation. that has been off, on. what is the status? >> a lease was signed earlier and the construction is being managed by dpw. my understanding is that the target for opening is december. although the director of dpw has expressed off the record that he is interested in trying to be that timeline. commissioner borden: i think

that is right. many of the people who are the bad actors in that area do not reside in that area and come in to prey on tourists and others that are callable in that committee. we can make it so the families and others who live in the community and would like to be out on the street. going back to the issue around the housing that this report identified that people are living in. there is a real lack of space is for people to go and to hang out during the daytime which is why there are so many people sometimes hanging out in the street. some people feel intimidated because they see people on the street but the point is they do not have other places to go. i would love to figure out how you do like the parts list or something along the sidewalks where you have -- park list or something along the sidewalks where you have people that gather. there are other places where they have created a proper city

sponsored chess tables and things for people to be entertained at. if we can look at creative ways to deal with the reality of recapturing more open space in that area since there are -- the sidewalks a pretty wide and it does present a lot of opportunities. as we discuss the issues around how much of market street will be used for things other than transit. it can create other operas set -- exciting opportunities. i do appreciate it. it is interesting and different than what we have been able to look at with some neighborhoods and we're doing this neighborhood plans, looking at a more granular data. i do look forward to being kept up-to-date on that. i am excited about a lot of the economic revitalization happening. i am from baltimore and you have an area where tons of the city

is still boarded up and vacant and you cannot bring any businesses there. the areas that have been revitalized have a mix of people and diversity and jobs, etc. it is important not to get out -- ghettoize populations and provide opportunities and other places for jobs where people were. that is why they ended up in that circumstance to the extent that there is that local hire provision in the tax benefits and all the different agreements as we look at looking -- moving forward. creating incentives for the local -- a lower level jobs. is really important. -- creating incentives for the lower level jobs. it is important. commissioner moore: this is an extremely sensitive and thorough piece of work and i appreciate its timeliness.

the city place has found a new owner and we are hearing positive things. there is one area where i might have misunderstood you. you listed a number of attributes which contributed toward a negative impression aside from liquor stores and pawnshops. i think you also mentioned an overconcentration of sro is -- sro's. i hope i misunderstood you. >> no. commissioner moore: i thought i heard that and that was in contradiction to where you're trying to do. the one thing i am concerned about but i hope that other city policy will catch it is signaling out mcd's. we have the obligation to locate them. each time where are proving -- we are approving an mcd, just

picking this corridor, where being pushed in -- we are being pushed into an uncomfortable situation. if you could help us track that and bring it into the larger discussion which we are, i would appreciate you doing that. commissioner antonini: thank you. as i alluded to earlier, the story that has happened in san francisco, particularly in central market, was typical of almost all american cities in the 1960's. san francisco was saved from the worst ravages of economic depression owing to the fact that businesses and residents moved out of the central cities. we had areas such as central market which had been victim of that. if the changes are dramatic, not just in new york city, but if you go to minneapolis and indianapolis and chicago, and a lot of other cities i have visited recently, some of the

areas that were the worst in the midst of their cities have become some of the most vital areas. the big changes in philadelphia from 2000 through 2005, big changes their in an area that was not very pleasant in 2000. best practices. let's talk to these cities and see what they did and see how they handle areas. it does not mean they have to do what they did but there seems to be a formula out there that seems to be working in a lot of other cities. the other people you should talk to is businesses that left san francisco in that area. i am talking about aaa and to a large degree, workers' comp. their headquarters is still there but many of their employees are not in san francisco. there are many factors in these moves by would like you to find out what part of this was the conditions around their businesses. that deteriorated from the time

there were first there to the time they left and was that a factor in the relocation of much of their work force or in the case of aaa, the entire company out of san francisco. that is important to find out what we can ameliorate to keep businesses there. >> thank you. if there is nothing else, we will move forward on your calendar to item 10. this is an informational update on the central corridor plan.

>> could leave to noon -- good afternoon. i am joined here today by several members of our centra t. we were last year before you with an update on the central corridor planned at the beginning of november. the central area is bounded by market street on the north, second and sixth streets on the east and west, two blocks near the central subway that is under construction. as we said to before, the impetus for this plan is central

-- subway construction. and the need to reevaluate our land-use patterns in that context. at the tail end of the eastern neighborhoods planning process which did rezone much of this area, certain parts were deferred to planning processes. this is based service and light industrial district south of paris and street. that was the first -- deferred to a process that would include those parcels and that is why we're here today. this plan has been -- we have been underway for year and a half. we started in february of last year for about six months. we're engaged in what we call idf gathering -- an idea gathering listening process. we met with countless community groups who have interest in the project area. we