hearing. good afternoon, commissioners, my name is chris. i work for [speaker not understood]. before i talk at all about the nature of our business and how we operate, i wanted to address a couple of misperceptions that have swirled throughout this process. the first is that chipotle is owned by mcdonald's. we are not. we've been in business for 20 years. for 7 of those years mcdonald's was an investor in our company, but they've been entirely divested since october of 2006. and the other is that somehow we magically outmaneuvered or outbid local restaurateur for this space. we did not. there was an independent restaurateur interested in the space prior to chipotle and when their negotiations got so far as exploring the very convoluted circumstances surrounding the liquor license associated with this space, they withdrew and that's when we got into the space.

with those sort of out of the way, when we think about the variables that contribute to making an outstanding food culture that we very much enjoy in a city like san francisco, the things that come to mind are access to the best of local foods, beautifully or produce grown by local farms, animals raised in humane ways by farmers who emphasize the use of care over chemicals, food artisans who are making cheeses and cured meats in very traditional classic ways and always trying to elevate the quality of what they do. those are the kind of things that are the an advertise sis of what one would expect in a chain restaurant. ~ they're exactly what we do at

chipotle. we are a chef founded and chef-run company. while we expanded beyond our original vision of having only one restaurant and now having many and meeting the definition of formula retail, the company still very much runs around the ethos of a chef owned or chef-run restaurant. so, our business is really built on finding the best sources, more sustainable sources for all of the ingredients we use. we began that quest when we started working with bill nyman here in the bay area who was one of the pioneers of the sustainable food movement. and since we began that, we've accomplished a number of things that are firsts for a chain restaurant. we are the first chain restaurant to serve all naturally raised meat from animals raised in a human way without the use of hormones or antibiotics. 3

we're the only chain restaurant commit today organic and locally own produce. we used more than 2 million pounds of produce grown by local family farms and we're the only national restaurant company committed to using dairy products for us, that's cheese and sour cream made from milk from cows that are raised on open pasture. in fact, one of our primary cheese partners is not far from here, the petaluma creamery which is an outstanding award winning artisanal cheese company. similarly, the way we hire, train, and develop people flies in the face of conventional chain restaurant wisdom where ours is an industry that's really characterized by providing low-waged dead-end jobs. that's not what we do. we promote 97% of our managers from within the ranks of our crew and regardless of one's position, we offer competitive

wages and benefits that include health care, access to 401(k) participation, paid vacation, and bonuses. and the way we market our business is very, very different than other chain restaurants. it's not aggressive discounting efforts to steal share from other restaurants. it's more evangelizing for a movement, sustainable food movement. in fact, we hosted an event in golden gate park just a couple of weeks ago where 40,000 people turned out and enjoyed food not only prepared by our team of chefs, but by some of the best chefs from the area and a number of food artisans from the area. these are really the hallmarks of our business. while under the math we very much qualify as formula retail, the way we run our restaurants and the way we behave as a business really flies in the

face of most formula retail. certainly in terms of the way most chain restaurants are operated. so, with that i will conclude my remarks. i would also add that we do have other members of our project team here, actually one more quick point before i conclude. when we began this process, we knew that there would be opposition just given the character of the neighborhood and the nature of our business, but we've also been really pleased by the level of support. the opposition we've seen has been in no way overwhelming or universal, and in fact, the support we've received has been truly remarkable and very, very strong. and in the opening remarks you heard the figures, numbers of petitions signed and merchants immediately surrounding the site signing on in support of

our project, dozens of letters and e-mails submitted in support of our opening a restaurant in the castro. with that i will conclude my remarks. we have additional members of our project team who can help address any questions that you may have. thank you. >> thank you. okay. opening it up for public comment and there are a number of cards here. so, i'll call a bunch of names. if you want to line up on this side of the room, -- >> there is a request for an organized 15-minute block. ~ thank you, commissioners. good afternoon, my name is pat tura. i am president of duboce triangle neighborhood association. first of all, i want to acknowledge as we just heard, chipotle is a very successful $2.8 billion enterprise with

very successful stock that closed at $350 a share today. chipotle definitely struck the heart of america with their organic marketing and positioning, but i'd also like to read you what was posted -- reported in the huffington post this morning. chipotle can't escape gmos. the recent chain became the first fast-food chain to label the ingredients used to contain gmos. the list is deep. in its website, not in its store, 12 out of the 24 ingredients listed on the site indicate gmos. the organic positioning has allowed them to open 1200 restaurants across the country. however, like every other formula retail restaurant, they depend on quantity to meet the demands of their business. while we all know that petaluma

creamery is a wonderful place, how many of these 1400 stores can they supply and to make a $2.8 billion business? >> please stand by; change of captioners

>> we have $25,000 square feet of new commercial space coming on to market street. we need a vision for market. if we run after every vacantcy on the street and say that we got to rent to this chain regardless of whether the neighbors want them or not, what are we going to do the other 25,000? this is similar to starbucks, which you denied the permit. we have cvs which is a good use of that space and you approved

that project. and this is another blieted building and it has been vacant for two years and it smells, and it is filthy, and there are people sleeping in the doorway. and that was not the landlord's fault, i know that. >> they have done nothing to clean the building, they are holding the land hostage because they want formula retail. we know that supervisor weiner introduced the look out at 16 and this market and very successful business and they called the landlord and the landlord barely wanted to talk to them. we know that star bellies and i have an e-mail here and i will read you what they say. yes, we wanted to come to the neighborhood for its unique character and we already have business theres and it has been a good relationship with the neighborhood. we wanted to offer a proven type of road house cuisine that we thought would be a good addition and not available in

the neighborhood. the only answer we got is that they decided to go somewhere else we were actually willing to pay what they asked but we still did not get it and i would like to submit this so that you understand. i also know that another restauranteer tried to rent it and there were 34 letters in your packet that it said were sent from merchants who were in support of this. and i called planning to say who are these 34 merchants because i talked to many of the merchants on church street and there is like a land full, not 34. and we don't work with that neighborhood or know that neighborhood. they are not in support of this project and some of those

merchants, could not be here today, some of the merchants who could not come here, they do not stand to win anything, to have chipotle come, a music store or a photo store or a music venue.

>> i want to play for you... >> in terms of development and raise development and i am however, very distressed to see the chipotle restaurant so that (inaudible) the neighborhood is coming around and becoming more attractive to the small businesses and grassroots small businesses and the corporation... and just, make this unappealing to those kinds of people that will make this neighborhood thrive. i have been here, a long, long, time, and i know what works in the neighborhood and i know what doesn't. and so i saw the boston market attempt. and they failed miserably and i

feel that chipotle will support it and i think that we need to support it. and it is approved all over the city and we really don't need (inaudible) government.

>> speaking out in opposition to open another restaurant in castro at the corner of church and market street. (inaudible) >> so, i ask you to deny this project. i don't think that when we worked with the planning, and the commission to put a policy in place to make sure that we

have controls, the goal of that was not to pass a parcel that would take up to 36 percent formula retail and i hope that this is not your vision for upper market. and i'm going to turn it over to wendy. >> i'm wendy and i am a member of the san francisco locally owned merchant's alliance. and i have been a local business owner for 20 years and for the last two years a merchant within two blocks of this as co-owner of sweet inspiration and i am strongly opposed to the idea of chipotle taking this spot for several reasons and the first being the locally owned mexican restaurants that are right there and again as pat stated, it is not going to draw anyone new in the neighborhood. i really don't think that at the believes that.

it a high level place. they are drawing business that is already there away from what is going to be there, if more people come into the neighborhood, it is not for the chipotle and those people should they want mexican food should go to the businesses that have been there for a long time and hanging on a small families. my business partner and i took our family savings and invested in the neighborhood because of the unique character of the neighborhood and because of the future vision layed out in the upper market place and in recent policies like the one that we are talking about the 20 percent adopted by you. we see, the in-coming residents and the in-coming smaller business fronts bringing more and more opportunitis for small businesses and for it to be a thriving neighborhood. and the neighborhood is booming. in yesterday's examiner, they talked about nine vacantcies

that were reported in the district, in the short time that i had a business in the single block where i am, the 2200 block, i can name nine new businesss that have come in. and there is the title, and canel, san francisco collective, and high topps and slider bar and eight of those nine are locally owned. the locally owned businesses, the small business people are identifying the space and they are coming in, so the fear around the vacantcy and what do we do? it kind of start to sell it off to formula retail is actually baseless and there are people looking at this space in particular saying that it has been empty for two years what is going to change? all that we have to do is turn to the development that is coming in the neighborhood and say this is what is changing, the business is coming, and the people are coming, and the money is coming, and the small businesses will follow, in

fact, as pat told you, we have evidence of several offers of small businesses on this fight in particular, whether or not those deals ever come through, the offers will keep coming, a restaurant space, in san francisco near the castro, near all of the foot traffic and there is no reason to expect that this can't be rented. >> now, when we are talking about the numbers, the 29 percent, the 20 percent and the 36 percent and do you include the parking lot and do you include the entire district, it is all kind of moot. if you don't include the safeway which is parently you don't in the 300 foot radius you are ignoring the obvious, if the argument is then let's ignore the safeway and therefore the parking lot, and take that out of the picture, and let's look at the entire district, in fact, in our last discussion, commission antonini when we were talking about the starbucks you were talking about 300 feet being such a very small area to look at and

we ought to look at the entire district and take a broader view. if we do that, the formula retail concentration right now, it is closer to 43 percent and so we are talking about establishing a balance. and setting a balance and this point that we established of 20 percent, we ought to be saying, no to a lot of formula retail for a while and getting the small businesses in to establish that balance. right now, we are out of balance and it is not time to consider giving away, this prime corner to yet another formula retailer. so for all of these reasons, i do hope that you will follow the recommendation and deny this request. >> good afternoon, commissioners. my name is michael and i am a member of the emta and the sf nono and all in the upper market district and i am also the business business church hill, adjacent to this project

at 2100 market. vy been in this location for two years, and so 15 people and support my wife and two children and all from this business. not only do i own the busy own the building as well and, but i am speaking by your decisions today. >> i will ask to deny the approval. and super market and castro so unique are the locally owned locally operated. i hear every day how people love this neighborhood because of the uniqueness and originality but those rare features are threatened very threatened very severely by large businesses with almost 30 percent of the street frontage occupied the local flare is quickly getting stepped over, by allowing them to occupy another prominent location, it

threatens this fabric that is wo ven through the neighborhood and the integrity of the community and the back bone of the city and we quickly will give you an example of why i disapprove of this project. is there an issue or a program that comes up on the block, vandalism, threat, violence, noise, you can call me, and you can call my cell phone and you can call me house and i will answer the phone >> your time is up. >> one sentence. >> what do we do if this issue comes up? do i come and talk to the ten dollar an hour. >> your time is up. >> thanks a lot. >> you can be done if you want. >> you can leave your notes if you want to submit your notes. >> okay. >> great. >> leave them there on the counter, thank you. >> okay, so that concludes the 15 minute correct? yes. >> so i am going to call some names if you want to line up on that side of the room and come on up in the order that i have called them.

victor haviez, daniel ceser, seria, jay davidson, sean burgen and demetrius margin, silvia agar come up if i called your name. >> good afternoon. i'm president of the castro up power market community benefit district and i am also on the rainbow honor board and i am vice president of the san francisco commission on aging and adult services and i am a pass president of the neighborhood association. and the castro market community benefits the application, to open a restaurant at 2100 market street. so do the merchants of upper market and castro. let's learn from the past. the last two occupants of 2100 market street were independent restaurants, both failed, one

was the moderately priced home and the other was the high priced john frank. >> that is why no independent restaurant has made a viable offer to rent this property. chipotle has made such an offer. it is a building that once housed formula retail and it was a bust in the market years ago. i have lived in the neighborhood for 35 years andvy seen how the things have changed. >> this situation is different from starbucks, and because starbucks was going to remove an existing business, this location has been empty for two years. and the alternative to this is an empty building in an area that currently is a magnet for inappropriate budget behavior. sleeping on the streets, and public defication and urination and substance abuse and general litter.

let's not let the ideal get in the way of the good. it will bring a healthy foot traffic to the neighborhood, and employ individuals, and thus, enhance the area. this cbd will request you to support this project, thank you. >> hi, my name is pj put and i will keep it under 3 minutes. i leave in that neighborhood, and i'm definitely, for chipotle to go in there, they have a limited menu and so they are not a competition for the smaller mexican restaurants. besides there are so many vacantcis in that whole neighborhood it would be nice to bring life to that spot

again. thank you. >> commissioners? my name is victor and i own (inaudible) and a mexican restaurant located at 235 church street and about 70 feet away from the proposed mexican. and my restaurant just closed in the street and i have the mexican restaurant in the same location for more than 23 years. and my specialty is mexican food and the same as chipotle. i have 12 employees and some of them have been working with me for more than ten years, i am married and i have my only daughter, she is 4 years old and for the past 34 years i have worked almost every day to support myself and my family. i am with the san francisco market. and i buy my meats from (inaudible) in order to obtain

(inaudible) which is a (inaudible) technique. and i make the tortillas by hand and i am one of the locals and i always use the local to help me, impart part of the community. and my way to help with the healthy way as possible. the restaurant owns their own meat at chipotle and they produce their own produce and they have ranch and farms and we went to one of the presentations in which they probably set that they owned thousands of restaurant around the world and of the united states. when we went back to try their food, we asked the chef and the manager, what do they give on the meats and i said, could you please show me the... (inaudible) they say that we don't have that we own our own ranch and farms that is what

they answered to me. this is one of the many reasons that this why they lower their prices i cannot compete with them. it is impossible for me to be alive there. what they do is exterminate the local businesses. what we are three mexican restaurant in a 17 foot radius already. and i sell the same food that they sell and i invite you to try my food. it is very hel ygt and it is the same food that they sell. and i am here today to ask you to deny the permit and the company. and i appreciate that and all the way, i will have to close my business, and the families will also be away from work, thank you. >> thank you, sir. >> next speaker please? >> my name is daniel and i live a half a block from the

proposed site. and the previous speaker was right, his restaurant serves delicious food. but that is the basic point is that i understand that you can grant this conditional use permit if it is necessary and desirable to the neighborhood. it is not necessary, as you heard from many people, but that there are two restaurant and there is chilango which is a step up and it is not desirable simply because it would make us look like something else, and actually i have been to chipotle, and very nice, but i live in san francisco. and i want it to be a unique san francisco thing, and i am very well aware of how seedy that corner is and as a resident i have live there for 25 years on that block i am willing to take the chance that if the commission does not

approve this formula retail that there is a good local merchant that can come in and whether it is a restaurant or anything else that will preserve the unique local character of our neighborhood thanks. >> next speaker, please? >> hello, commissioners, my name is sean, and i am the owner of black bird bar on 2124 market street and just two doors down from the proposed location. first off i want to state that i am against another chain business from opening in the neighborhood. and i do agree that it is an eye sore to have a blieted building at such a visible location. however, scrambling to fill a vacant building with chipotle is a bad decision that will only create a domino effect, allowing other formula businesses down the road. we already have three thriving tacos, restaurant, la taco, and