providing the necessary information to us about their future plans, existing environment, et cetera. but the other issues will have its day and have their forums to be heard. i hope -- it sounds like there has been a rocky path. i think many in the audience recognize that there were very positive developments in the more recent work that's been done at the university. obviously while some of you may not have left the neighborhood, there have been changes at the university and it sounds like this is' progress in the direction of really meeting your concerns and i'm very hopeful that when this project comes forth to this commission ~ that there is a good consensus around a way to work together. >> commissioner moore. >> the institutional massive plan as presented to us today was really a presentation only and nobody should expect from us to take definite stands one way or the other. i think in the general world of institutional master plans,

this institutional master plan does significant amounts of disclosure and description of what it does ~, and the messageseses we are getting from the public are really quite mixed. but that is at this moment not as much of our concern except to encourage all of you to come closer together as you move forward because otherwise i think it will create insurmountable difficulties when it really come for us to look at those determinants by which we approve or support the approval or ask for modifications of a project. and i think this is the time to come closer and indeed move forward together. so, i think all comments are on the table as equally important comments for, against, or in between. and the only thing i would like to ask when it is directed towards your planning team the diagrams which indicate the areas of where your future

project would happen are drawn as very specific building outlines which create specific responses to people and look at them as buildings rather than as diagrams. [speaker not understood] can happen and then there are alternative ways of how a program can configure itself as simulated building footprints or zones within those shaded areas. and i think for the sake of having a broader communication or platform for communication, i would suggest there is some additional information be provided of other alternatives exist to provide and locate buildings. because this is a very definite stand you are taking and i understand why you are doing that, but i think it would help everybody else to feel a little bit more invited to discuss the options. >> thank you. i would also urge the members

of the public who stated concerns today to make contact with the representatives of usf that were here today to continue the conversation, with mary woods on the student housing project in particular. again, that project will come to us and we will look at the project on its own merits in the future. so, seeing no more comment from commissioners, i close the public hearing. >> very good, commissioners. shall we move on? commissioner, it will place you on item 10, a item 9 has already been considered and taken out of order, for case no. 2013.1896t is planning code amendments related to production, distribution, and repair uses. those members of the public could leave the room quietly,

we would appreciate thats as we continue with our hearing. >> good evening, commissioners. steve wertheim, planning department staff here to talk about our pdr legislation. thanks for having us back again. i'm going to introduce some of the members of the team who will speak for a couple of minutes and then i'll come back and give more of the presentation. so, hopefully ken rich from the mayor's office of economic and work force development. >> good afternoon again, commissioners. ken rich with the office of economic and work force development. i can't resist just taking a moment to remind some of us who were there when we were going through the eastern neighborhoods process and we

were called every crazy name in the book for thinking that it was important to preserve room for pdr space in the city, industrial space in the city. and people thought we were crazy and they thought that was a dying industry. and we persevered and i think we caught a pretty good balance between opening up areas for housing and preserving some areas for pdr uses and here we are seven, sick years later or so dealing with a pretty you are gent need to provide more space. it is a nice feeling for that. ~ i want to remind everyone the mayor came into office around with a 17 point jobs plan. point number 7 is to revive local manufacturing and help it start, stay, and grow here in san francisco ~. we have 530 or more manufacturing businesses still located in san francisco. that number is increasing by

more than 10% a year. those job or those companies provide over $1 billion in direct and indirect revenue and to our local economy, and they provide quality blue collar jobs for san francisco residents, currently more than 4,000 jobs. and we want to capture more jobs for manufacturing in the city if we can. we are currently running urgently out of affordable appropriate quality space for manufacturing and we are just now beginning to lose manufacturing companies who have tried to stay in the city and could not find space and are moving. so, this all sum up to say we strongly support the elements of this legislation as a sort of very sober, well thought through and conservative set of tweaks to our existing zoning around pdr zones and things that will enable not existing

manufacturers to better utilize the space they have and create new industrial space for san franciscans, the first time we've been able to do that in years. these tweakses to the code are based on actual data ~ and input from a lot of businesses and with that i think i will turn it over to andrea [speaker not understood] from supervisor cohen's office. >> hi, commissioners. i know you've had a long afternoon and we did have an informational item on this a couple of weeks ago so i won't rehash the entire purpose of how we arrived at this point. what i will spend a little time talking to you guys about is a process that we've had since we had the informational item a number of weeks ago and how that's made its way into your case report in the item before you. so, we had an informational item about a month ago and afterwards we heard a couple of concerns raised by additional community activists in the eastern neighborhoods. we've had a number of meetings since that point and have probably made close to a dozen changes to the legislation.

most of which were included in the substitute version and are already incorporated into the ordinance that you have before you and those included thing such as clarifying the definition of how we share accessory retail which is the recommendation of the small business commission who approved and recommended support of this legislation, adding parcel numbers into the legislation for those parcel that may qualify and meet the requirements for the new construction program. just to be abundantly clear which types of sites we were talking about at that point, as well as clarifying potential other uses under the institutional uses definition that could be located in the zone to make it abundantly clear we were not permitting any residential uses he in the new pdr airs i can'txthv. and then there are a sear i of additional changes that we have agreed to make that are contained in the modification section that we're asking for you guys to recommend to the board of supervisors which was the result of a number of conversationses with community activists and eastern neighborhoods folks and they

include doing the new construction as a three-year pilot program. we heard a lot of potential concerns around just wanting to make sure we were getting good projects who were providing affordable permanent good quality pdr space in these areas. and one of the ways to do that was given the limitations we have on thing related to commercial rent control and development agreements, we thought it was fair to do it as a three he year pilot program and take a look at it in three years and decide whether or not it's a program we want to expand into other areas, if we want to take a look at additional tweaks that have some sort of check-in function, that in three years we would take a look at and evaluate its successor potential changes. the other big modification we have agreed to and are asking you to make is the deletion of ipdr from the code. i think that there was some concern from different community folks about remaining in the code because one of the original conversations that we had when eastern neighborhoods

was formed was that individuals who were going to take advantage of ipdr were really committing to strong work force development requirements and given the disappearance of the state enterprise zone program and the way that subsidy worked as a function to the actual property owner developer rather than the business owner, we didn't -- it wasn't succeeding as an actual work force development mechanism and we have not seen ipdr projects come forward in any significant measure or way. so, we thought that was a fair recommendation that was raised by the community folks in our conversations. there are also a couple of a difficulttionval tweaks, but we have agreed to make around the pdr business plan proposal ~. so, we spent a lot of time building out that as a requirement to the conditional use authorization application to submit for project sponsors to submit details around the types of tenants they're looking to target for pdr, what they anticipate their rents to be, how they're going to collaborate with community organizations and then how they're going to report

annually on the effectiveness of their pdr business plan and tenanting strategies. so, i'm here for questions if you have additional questions for us, but all of the modifications in your case report were the result of our continued conversations and our things that we have agreed to incorporate at the board. then i think laura lane from supervisor campos's office wants to say a few words. >> i won't take too much of your time as it is getting late in the evening. i just wanted to reiterate we are extremely pleased we were able to bring a number of stakeholders to the table to discuss this legislation to discuss the compromises that we brought to you today. at this point, i mean, the only conversation that is kind of remaining is related to the sew work space. at this point we've not proposed any changes to the legislation in front of you, however, we do know that some of the community is still concerned about the potential outcomes for not having a cap at this point, and is something that a we move forward we're

committed to looking to and to readdressing if there becomes a need to add a cap at a later date. and just finally, i'd just like to take a moment and recognize and validate the concerns of some of the pdr community and stakeholders that have come to the table to discuss this. that's dealing with the kind of -- the loss of pdr space due to the central soma plan and because at the moment this legislation is not meant to in any way invalidate their concerns, but to move pdr forward. and that is a different concern for a different day that we all well share and want to continue dialogue on. and if you have any questions, please let me know. thank you. >> thank you. >> again, steve wertheim, planning department staff. since everything i wanted to say has been said, i will end my presentation. thank you. [laughter] >> thank you. >> thank you. [laughter]

>> so, i believe that we had agreed to give sf made a small block of time to give a presentation. >> thank you for having us back. we know he it's late so we will try to be brief. i think all of you probably have already received our letters of support and thought process. you know that we are no manufacturers are very much in support of this legislation. we also want to recognize the collaborative efforts of those who had ideas that we've now worked hard to incorporate into

the modifications that you see before you. we were asked by a number of folks that it would be helpful at this point to make sure that you all have a clear understanding of the nature of the kinds of manufacturer we have and the kinds of spaces they need. so, briefly i'm going to give you a quick overview of that and then we brought three of our powerful manufacturers to you today who collectively employ between them about 150 people and we will let them speak for themselves. they are ohio design which is our largest current furniture manufacturer in the mission. heath ceramics in the mission and northeast mission and timbuktu. [speaker not understood]. so, briefly, sf made is a nonprofit. we were founded about four years ago by 12 local manufacturers. and just to give a quick overview of the kinds of

companies we have, we have quickly grown to be the de facto [speaker not understood] to support manufacturing. we have 542 organization and it represents about 95% of the sector in san francisco. so, we're very prectiontionveded that when we're able to come to the table with data and feedback and information, it is very much from our real life experience being 100% focused full time on working with the local manufacturers. the largest sectors that we have, and they are all almost focused on consumer products, are garment and other kinds of phone products and that is largely powered by what we have still in the city as a very skilled garment manufacturing sector. some of those individuals work for companies like timbuktu and others are organized into factories who work with multiple manufacturers here in the city. freedom beverage is the second-largest sector, although i will give a shout out that our breweries were the largest hiring force in the sector last year.

and then we have a whole set of emerging products around everything from bikes and other kinds of green transportation manufacturing to building products, furniture, jewelry, and more. the work force ranges pretty broadly, anywhere from 2 to close to 200 employees. so, these are still all small businesses, but they are very able to fit in the fine grain context of the city and i think that is important to know that many of them already operate in close proximity to residential areas and to other office types of uses and they do it very well. and when we talk about the work force, at the end of the day the reason sf made exists, the reason we do so much of what we do is about creating a diversity of jobs through the manufacturing in the city and we collect detailed work force data every year from the companies. and based on that data, we know more than 75% of the work force are individuals from low, moderate income households, they include veterans. they include immigrants from both hong kong and main land

china. they include under employed youth and adults. so, we're very proud of the fact that this sector continues to create those kinds of jobs. and when we talk about job growth and the opportunity to keep companies here in the city, this is the demographic that we are very passionate about ensuring has a job at these kinds of companies. i think ken already talked broadly about our economic impact. so, this is actually one of our 32 garment manufacturers now in the city. they employ 10 individuals and they've actually been growing for the last couple of years. this is circa. circa makes private labeled boats. they are in the bayview and they have over 130 employees right now. cut loose is another one of our large cartv manufacturers. they do much of their production in-house and they recently moved into larger space in the bayview after a long search that we're quite pleased they wanted to stay here. anchor brewing, i want to point

out the individual you see here actually came to anchor brewing through our apprenticeship program [speaker not understood] and she is now actually working there as an employee. this is one of our newer types of manufacturers making devices for desktop manufacturing, and this particular company was founded by a single unemployed woman scientist from arkansas there in the mission. they employ nine individuals. when we talk about nine individuals these are actually sort of test technicianseses and assembly folks who have learned and trained on the job. i think that is key to under when you deal with a technology product the kinds of jobs that are created are not all for ph.d.s and engineering. space [speaker not understood] because i know you may want to talk about small enterprise work space, we actually have two manufacturers right now in active space which is often the prototype held out for small enterprise work space. and we've had many more than that cycle through active space.

the good elements of it and why we feel strongly that the sew product is important to continue to consider is that people are able to really walk in and sign a lease and have month to month availability and not have lengthy credit checks. so, the product itself works well. the size of the space don't work well at all for manufacturing. and the reason people cycle through is that 500 square feet or less is really simply just not workable for any kind of a practical industrial use which is why we proposed both space constraints go up and at the same time folks aren't looking for 2,500 square feet in a small building like this so we're actually very comfortable seeing the upper limit be reduced which is the current proposal in front of you. which is one of our companies currently macking products in active space. second tipology which we believe this will support is shared equipment spaces ~. so, this is tech shop from the outside, tech shop has three

stories of machine, equipment, space, and we've actually seen many s.f. made companies now incubate themselves at a facility like tech shop which is technically an industrial facility, but it is housed right next door to office. this is one of our companies that incubated themselves at tech shop at the height of their employment in san francisco. they had grown to 19 people and they just signed a lease last month in san leandro because we couldn't find them growth space to expand them to. and the american industrial center which remains the best example we have of a true multi-tenant, multi-story space where the start up space was 1500 square feet and up and companies can grow in place, we believe that the part of this proposal that allows for new pdr construction is very much we're looking for these sorts of very dynamic, very flexible spaces to be built as a result of that. this is one of our companies in the industrial center, [speaker

not understood] who came from la cosine a and graduated and produces ~. and another one of you are fast producers who started and moved twice to expand space in place in the aic. last but not least our dedicated spaces were largest manufacturers can be and these among many are probably the hardest to find yet these are the very spaces we need when we talk about growth. i'm sure you all have read now the headlines they have chosen to move to berkeley and they're taking with them about 40 jobs. but there is a bright spot. we have other companies that have through their own duress and we will let them talk to it themselves, managed to find space and finance and build their own construction. this is heath ceramics and i'm going to at this point turn this over to the companies and let them say a few words themselves. >> thank you. good evening, i'm tony

[speaker not understood]. i'm the chief operating officer of timbuktu and we've been manufacturing bags in the mission since 1989. and if it's okay with you, i'd like to tell you the short brief story about a conversation i had with one of our employees a few months ago that i think really brings home the importance of this issue. i was at a company party where families were invited and one of our [speaker not understood] who had been with us a little over 20 years came up to me and brought her daughter. it was clear she really wanted me to meet her daughter and she was proud of her. rightly so, very impressive young lady. she went to gal lay ojai school here in the city and this may will graduate from berkeley and wants to be a school teacher. we chatted for a little bit and the woman said ~ you know, i just need to thank you. thank me? why? and she said, my parents came here more than 20 years ago from southern china. they didn't speak any english and they expected to go to work in a restaurant washing dishes and busing tables and that is in fact what my father has done for the past 20-year. my mom has worked at a sewing factory in southern china and

because you guys gave her a job and the job was just a short bus ride away from her home in chinatown, she could come home at 5 o'clock, she would be with us, make us dinner while my father had to go to work in some of the night shifts and on weekends she was there with us the whole time. and as we were growing up she would tell us all the time, tell all your friends, don't buy a north base bag, buy timbuktu. it is helping provide for this family. it provides health care. she was very proud of that. she was proud she had a 401(k) since day one working at timbuktu, thing that many of most of her friends did not have. and, so, i just need to thank you for all that. and sort of hit home the whole issue of what we're facing now and how important it is to have these kind of jobs here in san francisco and keep them here. because a i think about our factory and the workers we have there, that story is repeated many, many times. >> thank you. ~

>> how do we bring up the slide here? can we bring up the monitor again? good evening, my name is robin [speaker not understood] i'm the managing director and co-owner of heath ceramics. we manufacture ceramic tile and [speaker not understood] it was a company thats was started in san francisco in 1948. since then, soon after that moved over to marin county and to find former industrial space in the former shipyard and has been manufacturing there until last year when we opened our second factory back here at our roots in san francisco. so, we're located in the mission district at the corner of florida street and 18th street, and we're at a former commercial laundry building, 60,000 square foot building. and we want to be there if its wasn't able -- if it wasn't for pdr.

we have about 50 employees at this one location ~, we're a 160 person company overall. out of those 15 employees at our mission location, 34 of them are what you might call blue collar jobs. ~ you can see the crew right here in our facility over there. they're involved in production. they're involved in warehouse distribution. they're involved in facilities, all in related to making ceramic tile. a number of these employees came with us. a number of them are new. a number of them are residents in the neighborhood. a number of them are residents of san francisco. it's a very difficult verse work force ranging from anywhere -- education to people that grew up in san francisco, went to high school, some even went to college working with manufacturing industry with us. we are able to, you know, pay people quite well, continue to provide health care, and this

year we're able to start a 401(k) matching program for all of our plant staff. the staff you see right here is actually represented by the reunion job, represented by the ilwu and that's something we bring with us to san francisco. if it wasn't for pdr, these jobs would not exist and this group here would not have these jobs, these san francisco residents would not be able to have these jobs that they look forward to with a good future. if it was not for pdr, this building, a former commercial laundry that was vacated by a company that moved to sacramento, was pretty ripe for being turned into more tech offices or more live/work loss, so much of what has happened in that neighborhood we are in over the past decade or so. but because of this kind of zoning we were able to create a facility like this resume manufacturing in san francisco, and we are here to support this pdr legislation and moving pdr

forward. thank you. >> thank you. if you begin speaking, sfgov will put it on. >> i have worked fortive buck toutoungi year. i am currently the factory manager. you can see the picture in the factory in most of the timbuktu team. just to expand a little bit on what tony said, ~ i think manufacturing in s.f. is supremely important to our brand. it's something i'm really proud of. i work with 20 of the most hard working people i have ever met. they come in every day to support their families. we're able to provide them with good jobs, benefits, something

to, like i said, support their family with. and people ask me all the time, timbuktu is such a cool brand. you make so many cool products, all these thing. and i think the thing i'm most proud of is being able to say, we have been in san francisco since '89, 4 of '89. that is like amazing. we are able to provide good jobs and i would like to be able to continue to do that. i would like to be able to continue to be here and we cannot do that without the support of this legislation and pdr. it not only employed me, but these people, like i said, that i love working with on a daily basis. >> thank you. >> good evening. my name is [speaker not understood]. i'm the director of op raytions at ohio, inc. we make modern furniture in the [speaker not understood]. it was started by david pierce. he started the company about 15 years ago in the mission working by himself in a very small room.

>> please continue. >> okay. and he was making [speaker not understood]. since then we've grown to have 18 employees, alvare i had backgrounds. we have folks that served in the marines. we have guys that were architects in their past. we have guys that were sculpters and artists. and we continue to grow. it's scary to me because we're at max capacity in our space in the mission at 19th and treat. and without program to help preserve manufacturing space, it really creates concern because where do you go? and we hope to grow. we hope to be 40 employees in a year and continue manufacturing furniture here that really speak to the city and is meaningful. so, consider everything that [speaker not understood]. thank you. >> thank you. okay.

let's open up for further public comment. tom radulavich and gabriel medina. good evening, commissioners. tom, [speaker not understood], executive director of livable city. i was part of the conversation of this many months ago and kind of got dropped from it, but a lot of this is great work and, you know, a lot of these definitions of industrial uses go back to 1960. they really don't reflect the way manufacturing works today. eastern neighborhoods there is a lot of guesswork. we're going to create these new types. do they work or not? now we have five years experience with eastern neighborhoods and a lot of data that's been provided by s.f. made and so on. and i think a lot of this makes a lot of sense. there are areas where it could have been further. the light industrial definition, for example, you should drop those horse power limits for equipment. this came up with your discussion that you probably recall that is of the trade shop use.