compliance with a-d-a and mod requirements and i think that those things would also be looked at when new projects come online. so it is important that a mechanism be put in place and the cac would do that. the cac would also add a level of consistency with your requirements at the planning level or the planning department level for project review and the timeline for project review. and that's a very positive development. and as was mentioned by kimeo, we've been working with staff on the threshold notification requirements and so on and those things that trigger potentially cac review and we applaud the work of supervisor cohen's office, particularly andrea bruss on bringing this to your attention and we urge you to adopt this resolution. thank you. >> any additional public comment? okay, public comment is closed. commissioner sugaya.

>> yes, i apologize, but for not knowing this, but there was a zone 1 redevelopment area, is that correct? was there a cac for that particular area also? >> yes. so, there's two different redevelopment plans that don't technically overlap each other, but the hunters point shipyard redevelopment plan which has a separate cac actually and then there was the bayview redevelopment plan which had both a zone 1 and a zone 2 and was covered by the pack. when we did the approval of the combined shipyard phase ii candlestick development, we made the candlestick portion zone 1. so, we anticipate that the projects review for that will continue to go through the hunters point shipyard cac and sort of everything else in broader bayview that was not covered by the phase ii disposition and development agreement will be what is covered in this particular area. >> so, how does that relate to this now? >> so, this is applying only to zone 2.

there is a broader bayview. the p-a-c was zone 1 and zone 2. >> okay. and was there any reason to think that we needed to broaden this even more or is that -- >> i think that because the p-a-c had previously existed and had jurisdiction over this area, the cleanest way to do it was to keep the boundaries relatively similar. it also is cleaner from a land use perspective in terms of providing advice on the redevelopment planned land use controls and to the department and is consistent with the delegation agreement between the departments. >> okay, thank you. >> commissioner wu. >> thanks. i'm very supportive. i think, you know, as you pointed out, one of the losses of the redevelopment really is the sort of community-level advisory committee. and i think that this is -- this is one way to replace it, you know, this seems more like a one for one.

i'm supportive of staff recommendations also. but as we go forward, i'd be interested in us exploring possibly other forums, too, if we think that there are improvements in the way that communities can input on the land use decisions made in the neighborhood. so, i move to approve the staff recommendation. >> second. >> on that motion to approve with staff's recommendations, commissioner antonini? >> aye. >> commissioner hillis. excuse me, commissioner moore. >> aye. >> commissioner sugaya? >> aye. >> commissioner wu? >> aye. >> and commission president fong? >> aye. >> so moved, commissioners, that motion passes unanimously 5 to 0. if those members of the audience standing in the door could find a seat or if you prefer standing, you can stand on this side of the room for fire safety reasons. i would appreciate it. commissioners, the next item on your calendar is item 15 for case no. 2011.1404c , request f

conditional use authorization. we do have a number of speaker cards and we have made accommodation $for an overflow room if we need one. so, again, for those who just walked into the commission chambers, if you could find a seat, please, or if you prefer standing, stand on this side of the room for fire safety reasons. i would appreciate it. thank you. >> good afternoon, president fong and commissioners. doug wu, department staff. the case before you is a request for conditional use authorization to establish a new formula retail limited restaurant doing business as star bucks at the ground floor of the existing commercial building located at 2201 market street. the building is currently occupied by the industrialists, a local independent business that sells salvaged case goods, glassware, and custom made

steel furnishings. the proposed project would include interior tenant improvements, the installation of a new store front, and structural upgrades to the building's apron where proposed outdoor seating would be located. the existing commercial space would not be enlarged and is approximately 3,000 square feet in size including 2600 square feet of interior space that would provide seating for 50 persons and 400 square feet of exterior space that would provide outdoor seating for 28 person. the proposed hours of business would be from 5:00 a.m. to 11:00 p.m. daily. star bucks coffee company is based in seattle, washington and has 71 company-owned locations in san francisco. the nearest star bucks locations are approximately one-third of a mile from the proposed project at 40 94 18th street in the castro neighborhood and at 21 08 market street in the show place shopping center. the project is located at the southwest corner of market and sanchez streets within the upper market neighborhood transit district, a

two-block commercial corridor between church and noe streets bound by an nc3t corridor to the northeast and the upper market street ncd to the southwest. collectively, these neighborhood commercial zoned areas along market street provide limited convenience goods to adjacent neighborhoods and serve as a destination for a broader area. due in part to its proximity to the castro district. land use is located within a subject block includes predominantly two and three story buildings that contain a range of commerce uses on the ground floors and upper floors including retail stores, eating and drinking establishments and financial, medical, professional and personal services. several buildings within the block also contain multi-family dwelling units above the ground floor. as noted in staff report, the department has received 59 letters in support from the public, nearby businesses, the merchants of upper market and castro, and the buena advice that neighborhood association in addition to a petition

containing 453 individual signatures. the department has also received four letters in opposition to the project from the public, the duboce triangle neighborhood association, and the castro upper market community benefit district. in addition to a petition containing approximately 4200 signatures. since the packet was published the department has received additional communication including 20 letters in support of and 21 letters and phone calls opposing the project. the letter from the owner of the subject property was also received which clarified that the current lessee was not intended to be a long-term tenant for the commercial space. the department has found the project to be on balance, not necessary, and undesirable for the following reasons. the project is not compatible with the existing mix of city wide and neighborhood serving uses because there are four other independent and formula retail coffee houses within the same two-block zoning district that offer similar rg

food items including pizza coffee, sweet inspiration, church street cafe, and cafe floor. ~ in addition, there are also three other star bucks locations within one half mile radius and eight within a 1-1/2 mile radius of the subject property. the project would be detrimental to the neighborhood by occupying a prominent corner lot with a formula retail that uses standardized color schemes, decor and signage that would detract from the distinctive character from the neighborhood which includes primarily local independent real tail businesses. formula retail businesses have a competitive advantage over independent retailers because they are typically better capitalized and can absorb larger start up costs, pay more for leased space, ~ and commit to longer lease contracts. this puts a pressure on existing businesses and potentially price that new start up and independent businesses which tend to be unique, nontraditional and contribute to the character of the neighborhood. the commission recently adopted a policy that established a standardized method for

determining the existing and appropriate concentration of formula retail uses in the upper market neighborhood that extends from octavia boulevard to castro street. the policy requires the planning department to recommend disapproval of any project that brings the concentration of formula retail within 300 feet of a subject property to 20% or greater. although the commission still retains the discretion to approve or deny the project. there are currently five formula retail uses within the vicinity of the property. and the proposed star bucks would bring the concentration of formula retail to 21% within 300 feet. based on these findings and those outlined in the case report, the department recommends disapproval of this project. this concludes my presentation and i am available for questions. >> thank you. project sponsor, please.

good afternoon, commissioners. my name is phil burnett. i'm the director of store development for northern california for star bucks coffee. first off i'd like to thank you for giving us the opportunity to present to you our proposed location of 22 0 on the corner

of market and sanchez. ~ 2201. i'd like to share a little of who star bucks is. i think sometimes this gets lost in the conversation who we are and what we do in our communities and what we are part of. first off i'd like to share with the commission that we provide health care services, insurance for all of our partners who work more than 20 hours per week. we have paid time off and we also have stock options for all of our partners. we offer tuition, reimbursement for our pareners. we provide health insurance for domestic partners and we've been doing this since 1995. we are a founding members of the current jobs usa which provides loans for small businesses. we have been voted one of the 100 best places to work forever since fortune magazine started creating a list over a decade ago. we are a local supporter of marriage equality. we are international advocate for ethical sourcing for

environmental stewardship and resource conservation. and in 2012 the efforts of partners, customers and civic leaders and nonprofit organizations star bucks contributed more than 6 13,000 hours community service in 33 countries generating over 2100 projects in 30 days. we are the only organization in the world with 133 lead certified stores and the star bucks foundation has made over 400 grants to nonprofit organizations in 2012, coming in at $13.8 million. star bucks within san francisco we opened our first store 21 years ago on union street. one of the first stores outside of seattle. we maintain -- we had maintained and still maintain a regional corporate office for over 20 years in san francisco. we have all of our leadership of operations, operation support, support services for northern california. we employ over 1400 partners in san francisco and whh 85% li within san frci

we are a long-term member of the san francisco work force investment board. we are a founding member of the united way bay area road map to cut poverty committee. last year we were supporter of the mayor's summer jobs youth program. this year we are as well and recommit today adding 50 more partners in 2013. april 27th this year we worked with the san francisco giants and dpw to have a san francisco clean sweep. we have 1400 partners, families, customers and businesses and working together contributing 500 hours to clean up the city in nine different areas. our partners participate in monthly dpw events. star bucks also supports charitable nonprofit organizations to cash and in kind donation. some examples are united way of bay area, bay area scores, community growth, friends of san francisco public library, san francisco aids walk, and the lgbt community center and glide.

that's a small slice of what we do in local community and regionally wise, too. now to talk about our projected site at 2201 market street. currently this is what the location looks like right now. the building requires fundamental improvements. accessibility upgrades, structural improvements, could met i can work, basic internal infrastructure has also been cited by the city as well. the property currently has ongoing issues with trash, graffiti, vandalism, and overnight camping. what exists today is not the match for the community vision for the upper market street. here is a rendering of our proposed site. we believe it will be

beneficial and desirable addition to the neighborhood. the store was designed by the current san francisco architectural firm ginsler. with feedback from the merchants we designed the store. [speaker not understood] development design guidelines and incorporates the upper market community vision recommendation plan. the design would create an open interactive pedestrian friendly space and provide welcome and safe atmosphere for everyone in the neighborhood to enjoy including unique store front with distinctive interior that we [speaker not understood]. large windows with visibility on both market street and sanchez street. and open and interactive outdoor space. the store also will be lead certified and green building specs. also we will be using sustainable and local resource material. we will be using led lighting, front resistant plant, low water fixtures, low energy function equipment and the first neighborhood store in san francisco in over 7 years.

there are a few questions that have been asked and statements we've heard over the course of this cup process. hyde is the neighborhood need 2201 market street? our customers have been asking for more space in the neighborhood. people need a gathering area. they need [speaker not understood] being used for meetings, for individuals and also for mobile office space. we do have our two locations at church and market and 18th and castro and we do have the life store operated by safeway inside the safeway center. but if you have visited 18th ask castro store, they did an incredible job with the store. currently at capacity and looking at ways of meeting our existing needs and our future needs as well. as of right now we have a thousand new units of housing, currently under construction in entitlement. demand will put a heavier burden on that store as well. star bucks pays for rent, will increase neighborhood rents. this is false.

we are paying less than the asking rent of 7 of 8 spaces on market street right now. if you just ask any of our current landlords they will tell you we do not pay top dollar, we do negotiate. star bucks investment will revitalize and activate this corner. also what makes this desirable for this neighborhood? this would create 20 to 25 new jobs that are open from a wide range spectrum candidates. everywhere from entry level jobs to management jobs as well at a time that is much needed jobs in san francisco. we need adaptive reuse and we have existing building. and we will be moderating the area for graffiti and general maintenance. i do have a concern i want to bring to the attention of the commission. the timeline of the conditional use permit and also to do with the formula retail use. star bucks filed the cup application in december 15th of 2011. at that time the planning

department used a 25% concentration of formula retail use within 300 feet of the guideline for evaluating projects throughout the city. part of the lay of this project coming before you was a zoning issues for clarifying restaurant use. then we find ourselves april 11, 2013 where the planning commission department adopted a policy change and review, 20% for formula retail use concentration. respectfully we ask the commission that if we could be -- we could be grandfathered back to the spot we were as the process has been going for 17 months now and the last month is when the changes happened, we feel we should be at the 25%. also, we conducted community outreach and support. we held two community open houses at the sanchez elementary school. we provided feedback from tenancies and incorporated into the store design. you'll see it where thon sanche

market windows, patio was arranged as well, too, with the seating inside. we met with over 250 neighbors and a dozen community organizations as well. some of our supporters are the heart of the triangle neighborhood association, the san francisco council district merchants associates. buena advice that neighborhood association. we also have over 1200 letters, petitions and e-mails from community supporters including neighbors. our supporters represent over 20,000 individuals and merchants. commissioner, i thank you for your time and consideration and if you have any questions. >> thank you. we may have questions for you. thank you. >> commissioners, we did receive a request from three community organizations to have a block of time to speak in

opposition to this proposal. the commission president has granted that request. are those people here? okay. commission president granted that request hoping that you would represent your members of your respective groups in this presentation. yes? yes. >> okay. thank you. hi, my name is hunt random and i represent two organizations, the san francisco locally owned merchants alliance and the northern california independent book sellers association. i'd like to make just a couple of quick points. first of all, as already been noted, i think this is not -- this particular site is not an under served area for coffee or baked goods. it's arguably not even under served for star bucks.

in seeking this location, i think star bucks -- legally star bucks is following a really tried and true predatory tradition. chain research shows that it's much cheaper and quicker to open a store, a location in a well served commercial area and punch customers from existing businesses than it is to locate in an under served neighborhood, for instance, and build a customer base from scratch. so, in this situation where we have two coffee shops literally a half a block away and many other establishments in the neighborhood, star bucks will have an immediate negative impact on those retailer sales and will inevitably cause job losses. it's interesting that they talk about the number of jobs they will create at star bucks. they don't talk about the number of jobs they will cost at other stores they will compete with. we would argue this is not only a bad deal for the neighborhood, but for the city as well. and the impact will largely be

felt by locally owned and operated businesses. and that's important because they contribute significantly more to the city's economy than chains like star bucks. studies done in san francisco five years ago and around the country show consistently that independent businesses reinvest in the local community at 2-1/2 to 3 times the rate of chains. so, this isn't just trading one coffee shop for another potentially. it's hurting local merchants whose contributions to the community, social, cultural, and economic are far greater than seattle-based star bucks will ever be and i hope you will take that into consideration. thank you very much. >> if i could interrupt you for one moment. the members in the audience that are standing on this side of the room near the doorway, you're creating a fire hazard. if you could please find a seat, i believe there is plenty available, or stand on this side of the room. i would appreciate it. thank you very much.

you can go ahead now. >> okay, thank you. good afternoon, commissioners. my name is pat [speaker not understood]. i am president of duboce triangle neighborhood association and i am here today to ask you to deny star bucks' application to operate at a prominent corner in our neighborhood at sanchez and 15th and market street. i stood before this commission a month ago with a proactive policy to contain and control the onslaught of formula retail in the upper market corridor. this effort had the backing of the planning department, supervisor wiener's office, the local merchants, and the neighborhood. the commission passed that policy unanimously by a 0 to 7 vote. before this vote, the city lacked quantitative data defining how much was too much

formula retail. where should formula retail exist and what size it should be and how much branding for branding sake was unacceptable in san francisco's neighborhoods with unique character. now that we have this policy in place and you have a not to approve recommendation from the planning department, this is the time where good policy implementation is made. there is no doubt that star bucks is a world class brand and provides services to a number of people. however, they have opened an average of two stores on a daily basis since 1987, and we don't want our neighborhood to be one of their statistics. on october 27th and november 1st of 2011, star bucks came to our neighborhood for their official pre-application meeting.

the requirement for pre-application meeting was to allow interested community members to learn of a project in advance. and to participate in an open discussion in which concerns are shared and questions are answered for everyone to hear, everyone being the community. while the exact format of these meetings is not well defined, we believe that the star bucks event met neither the spirit nor the letter of the law for this pre-application meeting. i would see no reason for grandfathering since dtna still believed that the requirements of the pre-application were not met. it was definitely not a meeting, but instead a promotionally engineered event. attendees were not allowed to ask questions and discuss the project as a community. the only project-specific

information was a table displaying the existing facade. dtna asked the planning department to disallow star bucks' promotional event from being considered a legitimate pre-application meeting and to require the sponsor to host a proper meeting with an open and transparent public format prior to the acceptance of the project's application. planning nor did request nor include this in the procedural issues in your commissioners' packet because they said that the issue had been dealt with. well, we have never received a complete response, nor do we consider the issue dealt with. i'm submitting a letter to the commission that we submitted to planning in 2011. i believe aaron starr addressed the issue -- addressed the fact

that a pre-application meeting is for the community. however, as we have described in our letter, that is not what happened. star bucks, to their credit, is the king of formula retail. there is no doubt about it. their corporate intent and their power, their marketing machine, and public relations is enormous. star bucks new media campaign converts wanted, extend their marketing tactics to our neighborhood. so you know, their corporate mission is to inspire and nurture the human spirit one person, one cup, and one neighborhood at a time. our neighborhood does not exist to meet the corporate mission of star bucks.

this particular parcel also is a perfect example of a landlord waiting for formula retail. there was a possible tenant about i want to say two years ago, year and a half, two years ago who it was a service that the neighborhood has asked for that type of business in the neighborhood. they went to the landlord and the landlord gave them a price for the rent that was out of the world, out of this world. and, so, the vendor obviously said, we can't afford that type of rent. and he said, i am happy to keep it vacant. that chain link fence that you saw in the photo, i find it interesting that we had that chain link fence in the photo because it, interestingly enough, went up about a month and a half ago and we were told it went up because -- that the

awning is not compliant with building code and that the landlord was going to fix the awning. i didn't realize that it was made so that the place could look worse than it possibly could. already does. when dtna and the planning department asked the commission to pass the policy that establishes a method of determining concentration of formula retail and appropriate levels of retail concentration in the upper market, the intent was to save our prominent corners and preserve local businesses and safeguard the community against an over proliferation of formula retail, just like star bucks. this is exactly why we came to this commission for situations like this. it is for these reasons and many more that you will hear from other merchants and neighbors today that i ask you

not to approve star bucks. the mission of our neighborhood is not to deliver on the corporate mission of star bucks, but to maintain neighborhood character and live ability. i also -- angela allelo [speaker not understood] asked me to read. so, she asked me to read something for her. this letter is to express the castro upper market community benefits district opposition to star bucks conditional use application. the castro cbd board of directors deliberated carefully about this application. the board weighed the potential for more traffic on this corner against the displacement of a unique -- existing unique small business, increased rents that formula retail will bring to that block, and the need to keep the upper