way. the retail study will provide a market plan for full implementation. while many of the recommendations in the plan have been implemented it still remains incomplete. what are the primary businesses people locate in the neighborhood, what are the primary reasons they leave the neighborhood. where the gaps between what the neighborhood needs and what will exist. all of these factors require considerable consideration and better understanding of what fits the needs of neighborhood at large. d t and a and our neighborhood associations, thank you for your consideration today and we hope you will approve the policy, thank you. >> thank you. >> i have a couple more speaker cards. michael colter, wendy

mag, peter cohen. i'm wendy mag, i'm a local residue and local merchant. the years ago purchased a business within this upper market corridor. we are very excited about this as the beginning of a policy that can address this area from octavia to castro. this is a beginning of the neighborhood of the corridor. this is a boom in both coming residents and retail. we are looking at what we can do to shape this where people will come and the

residents moving in will spend time there. the transit corridor has created a need and a desire to keep people out of their cars so they can get other places in the city but it's also an opportunity to invite them to stay home, stay within a few blocks and get what they need. the more that we can support, invite and protect the small locally owned businesses that attract people to stay home, stay in the neighborhood, come to the neighborhood, the more that is going to happen. as a local merchant, as a local resident, i would like to ask you to consider supporting the policy. thank you. >> thank you. >> good afternoon,

commissioners, peter cohen. i was involved this drafting this particular -- measure. i'm glad to see this a very effective form of policy. what is before you today is a great addition to that recognizing that some of the things we did not account for in that original policy piece are things that we need to control for now. that is that formula retail wants to concentrate, it wants to be a dominant presence in any commercial district whether it's upper market or elsewhere. very classic kind of the geography of locating businesses is gas stations and we don't have a lot in san francisco, but it works nicely if you go anywhere across the

bridge. there is gas stations on four corners, you wonder why. there is a certain business logic to why you want to be located to other competitors as close as possible. so we have this natural market basic instinct to do this. this policy intend to counter balance that anden insures the formula allows for these committees and still balanced with other businesses. i want to acknowledge, erin started a nice job, i spend a lot of time with the planning staff. this was really easy. i want to give real props to erin for working with community and sorting out something nicely.

lastly i want to reinforce the staff's suggestion on the geography of the proposal to make sure that it goes all the from octav ia to castro and you can see the upper market corridor is identifying from octavia to castro. that is the upper market. so i greatly encourage you to take that staff recommendation. thank you. >> thank you. did michael cohen come back? hopefully no ticket. >> hi. i'm an independent business owner on the market street corridor. as a locally owned business, i really support this amendment as well. giving us small guys a chance to compete in the city and i also am really in favor of the fact that it extends all the

way down to octavia with all of this new construction. i hope you all agree. thank you. >> thank you. any additional public comment? okay, seeing none, commissioner moore. >> it must be serendipity, that the two things building very well on each other it's astounding to me to see in one spot the many projects we all approved in the last two years because i recognize all of them because i never think comprehensiveively about the total number of the impact of the total number of projects in one area. that presentation was significantly helpful to see how consequential our actions are when they really occur in these areas. i'm glad that the

department quickly jumped to the role of helping because the concern about formula retail m this commission has been discussed for quite a few years and it's not as much about talking, it's about doing something about it. i consider this to be a very effective legislation and very appreciative about the sensitive way in which all neighborhood organizations helped and continue their own work in it. as measure cohen described, but i want to acknowledge mr. star by phrasing it in a way and it starts with good self examination. here despite these efforts that the department doesn't have quite tools for doing this correctly. this is a first attempt to sharpen those tools. i appreciate that and i'm in full support and would like to jump in and make a motion to support this legislation. >> second.

>> commissioner antonini? >> i have a few concerns to check with mr. star. this is basically only saying that given this formula for the propensity of retail. >> and the commission would still have their discretion? okay. my main concern ask concern is we are going to be creating an awful a lot of retail space. proponents would say we want to fill it with small local businesses. that would be ideal but i see a lot of vacant store fronts in san francisco as an example that sit without a tenant there for years and years. i'm not sure

if this is entirely true but the retail space is a loss leader for their development and they can afford not to rent it. i'm not sure if it's the entire amount that they are getting but it's a factor and the other thing about this legislation that concerns me a little bit is if certain types of formula retail such as banking, there is a reason why there are branches in different neighborhoods and just because there is one bank in the neighborhood doesn't mean you are going to use that bank and probably you will be traveling somewhere else by car to do your banking and not be able to stay within your neighborhood to do that service. the same is true of groceries which we want to consider because we want people to be able to take care of their shopping needs within their neighborhoods. most of the neighborhood stories are

formula retail. i'm not sure if lend dee has 10 or more and there are some in san francisco that we would like to attract, but if they do over the formula retail threshold it's another reason why they say i don't want to go there. i think we have to look at -- i would be more inclined to favor a situation where 20 percent were in terms of the same type. in other words you had another cellphone store or another of the same type because just to lump all formula retail together as some kind of mass of types of stores, the grocery stores are different from cellphone stores, different from banks and other things. i think it's one of the flaws i see in this. i'm not entirely, i think it's still allows us

the discretion. it's just the staff recommendation which might not carry the day. >> commissioners sugaya? >> well, that maybe true, but i think if we adopt the policy, it's a policy. if it should carry some weight in terms of the staff recommendations that come forward. it reminds me also that we talked previously about formula retail in terms of signs. i don't want to have that disappear from the conversation. i know this is directed at something a little broader but the commission did have some discussion with respect to signage on formula retail and generally other sign situations in commercial areas. so, hopefully that will still on the burner somewhere and then i just want to make sure that the motion included the inclusion of the wider octavia

to castro street area. >> commissioner border? >> yeah, i think this is a great policy. i actually live right at market and octavia, right across the street from the 1400 block market project that is being built now. there is a lot of new space coming on the market and something we need to consider about how we more thought fully consider a case. i do believe that we only get disapproval recommendation by staff while we have at times over turned those approval situation. i think we have robust discussion and it makes it think harder about why we believe a particular business should be in a particular location. so, this is not a -- doesn't mean there will never be formula retail and never been an instance where we never

find it affordable but it looks into an opportunity to look at how to make it necessarily and desirable of backing around to how we choose to weigh that. >> commissioner hillis? >> on the 20 percent figure. if we looked at formula retail now on the corridor, would any block meet -- where would those blocks meet or exceed that point of threshold? >> we rant -- ran a couple scenarios. it's about 11 or 12 percent. but that's analyzing the pete's coffee store, one that already exist. when you get to the corner properties, you include both frontages so that significantly increases the percentage of formula

retail. >> i guess i want to make sure we are formulateing the percentaging. i think it bridges that gap. where i think a ban is tough to do this is almost sending the signal where i think valencia and in this case there is too much formula retail on upper market and we are trying get an established neighborhood. i would like to make sure that percentage is low enough that we are basically saying, we are setting the signal to formula retail that you don't want more formula we re tail on this corridor which is what we are trying to do. >> i think we set it low enough by using the methodology and then we ran it through few scenarios and determined the appropriate percentage based on that >> most applications in this contradict would fall into this

and would come back with a disapproval? >> i wouldn't know about most, but again the corner lots that we ran and particularly in the coroner -- of church market because of the safe way so that makes the numbers go up considerably. >> i'm supportive of it. i just want to make sure it's strong enough because the neighbors have been here and we have other retails coming up and there is a sentiment that there is too much on market street which i would agree. i don't want to get into a position where formula retailers think they can go in a spot. it's not 20 percent, that you should prove and the commission wouldn't prove it. >> right. the policy does say that we evaluate based on the condition of the criteria and

the office does to have recommend approval or disapproval because there are other criteria we look at. >> do you know for example on kings street, i know it was redevelopment before. because i think it would be good to look at other areas in the city. i think king street suffers from too much formula retail. it doesn't have great character. if there is other places in the city where we should adopt kind of a similar cu downtown along market street, i think suffers from the same, kind of too much formula retail well don't have that cu for formula retail. >> i think it was a good portion of king street was in the redevelopment area so the controls were different and redevelopment plans apply there.

>> commissioner antonini? >> another thing why this is another good example. you have fine grain older structures, a lot of them but we are creating a lot of very large new structures and i don't know if staff has had any interchange with interaction with the developers to find out how many square feet the retail is going to be, whether they are going to be allowed to break these into smaller discrete units or whether they have to be marketed as a large retail space because certain spaces make it harder for local firms to be able to fill them because of the fact that there are so many square feet involved. for example, the formula, the pottery barn space. is a really big space. if for some reason they pulled out of will, it would be hard to fill that

space would be my guess. it just, that's my only concern. has there been any communication with the projects sponsors or yon i don't remember the exact details of our approvals where we were able to provide retail space into smaller units? >> no. but there are non-residential use site controls which favors smaller store fronts in neighborhood conditions. it's probably around 3000 square feet. they can break it up into smaller stores. >> that would be allowed if they can't use the larger space? >> correct. >> rogers? >> thank you commissioners, i would like to add a couple

thoughts into this discussion. first as was instead we do have very blunt tools for controlling formula retail. it's either prohibited or it's allowed in some commercial districts such as downtown and markets. while this admittedly is again still a blunt rule, it's providing guidance to community members and developers where they can run the calculation and get a sense where this is a spot that is over concentrated or not and make the decision about whether or not to proceed based upon that knowledge. so, we think that that is a big improvement in the specific concentration of this proposal were developed and tested both in this neighborhood, but it also came present a larger report where we are looking at evaluations of that you hear a lot about the arts and innovative

neighborhoods and one of the criteria is that they have used at the national level is directs that has less than 20 percent concentration and we started around that rage and in here there were some directs where it allowed more. it seemed about right and that's why we got to this number. >> commissioner moore? >> on that, commissioner hillis said, another tool which we have audio and -- used, and i don't know if it was used in the king street area was to hall out on the architects in this building and technically in the market corridor we saw today to make it subdividable because we have this plan that is requiring the back of the house corridors access to elevators and loading docks etc which a plan didn't have and the plans were retro fitted to

allow for that and i think the tools are important to study in more detail and the department almost in precondition on the majority of buildings. >> commissioner antonini? >> yes, just to clarify a little bit about this vote on this particular legislation where it's a policy in the policy is one that guides staff obliging them to ask or support disapproval of a project if the threshold is exceeded. but it would not preincluded individual commissioners from conceded all the different factors in their vote and we would not be obliged and therefore you are not against it. >> you are required to look at all the policy. >> it's a staff recommendation and staff probability would have some discretion, i think. but the commissioners would

ultimately have discretion on their vote. >> staff would not have discretion if it was at or exceeded 20 percent. we would recommend disapproval. >> on that motion to adopt a policy for the market street including from castro to octavia. commissioners antonini, border, moore, sugaya, wu, president fong, ayes. that motion passes i would like to welcome back everyone for this planning

commission hearing. we left on the calendar under formula retail in the upper market ncd proposed planning commission policy that would establish a methodology for determining the concentration of formula retail and set the appropriate level of concentration for formula retail in the upper market neighborhood nct and ncd. preliminary recommendation: adoption a b and c and 2009 -- for that hill in saint luke's campus general plan amendments. >> thank you. good afternoon commission. i'm joined by ken rich by the economic and force development. we are here for several months for discussions. these discussion resulted in a new project and term sheet for a revised development agreement both of which will be presented here today. before we get started i have an amendment

specifically map one of the area plan. the version of your packet of 7.1 to 1. in today's hearing i'm going to present an overview of what has transpired last year of the overview revised project. i will summarize this action before you today. as you know this project was originally heard by this commission almost one year ago as indicated on the slide. your approvals were followed by months of discussion by the board of supervisors as well as negotiations for agreement. last night they denied the -- a

revised d. a. including plan approvals for the summer boards recess. to take you back to an overview a development plan project includes 2 buildings. two at saint lukes and went at the cathedral and one at the daveey hill campus. at the campus, an acute 20 bed. larger than this previous proposal. the new hospital is existing west to the tower of the existing parking lot. the siting of the new hospital remains in business during construction. the existing

hospital will be demolished once the new hospital is constructed. on the west side of van ness between gearey and post, c p and c constructions promotions 674 beds of a hospital. it is worth note that go cathedral hill hospital will accommodate the space for additional 330 beds. they will only add those beds if saint luke hospital reaches the range. this is a 3 story shorter and 351 bed fewer than the previous proposal. across the street, c p and c proposes a medical office building.

these will be connect by an under ground tunnel. propose construction of a medical office building known as the neuro science institute. this slide summarizes the previous project as the compared revised project. you can see the new cathedral hill hospital reduces the number of beds and quantity of parking. saint luke's hospital is a 120 bedside. including the day via campus is 524 beds. at this point i would like to turn it over to ken rich who will provide an overview of the term sheet. >> good afternoon, commissioners, i'm really happy to be back in front of you for the second and hopefully final

round of this project. as you know the previous proposed project and development agreement were heard by the land use committee in full board last year and the board members made it clear they were not ready to approve the development and after meetings were held attended by supervisor chiu, campos and ferrel and executives, gerardo own of the bakery mediated these sessions and did a fantastic job of keeping us on track. out of these sessions came out a physical project as was described and also to go along with it a new proposal development agreement. the xoidz -- keypoints are on the slide which makes it all beds in the city. a larger percentage than it was

previously cpm c obligated to provide a level of charity care and with no financial conditions or projections. last time that was an issue. this time it was resolved and health transportation and affordable housing and pedestrian safety. you see in the agreement, it will be 10 bed general general -- acute hospital. the last time around it opened on the same day and now with construction schedules there will be a little bit of a lag. the term sheet will be clear and we have same liquidate damages that will kick in if it opens later. instead of the 80 bed saint luke's hospital. it