discussion. our office supported this nonprofit dismramentd work group this is only one piece of the fund and this is not the only thing they're looking at the planning code and pro bono services from realtor and rents throughout the city so there's a lot of avenues we're looking at point. we're looking at the funding and bryan shoe is here to address the process they've been go going through since october. this is the first non-profit piece during the discussion we'll have a long-term discussion how to continue to support the is cycles. this is not the only time back in 2000 mayor willie brown

supported this and it was cast the community arts stabilization artists 14 years later we've acquired 2 building now, it's going to be the hospitality house and so forth. of course, in the long term we want to be able to see we're property owners so we're not using the tax to go back to property owners. the largest beneficiaries of the tenderloin market area is the property owners they're the ones that have seen the tremendous growth in their bottom lines as tech companies have moved into the areas but they're fully paying their taxes and they're addressing one the outcomes of the thought rising represents

but particularly south of market. i apologize. i focused so much on my area but that's one area i know the mission and particularly it's impacted by the economic growth. the one thing i want to add if we're going to have a hearing we should look at the the stock option tax break that it was granted a couple of months offered by another supervisor that has had huge impacts in the city of san francisco. the last thing i will just is oh, to address supervisor breed's companions on the organizations that were funded in 2000 the first cycle the organizations that we granted were the art of refugee and the chinatown organizations and

filipino-american is a small nonprofit and 9th street consortium and the theatre and the family connection and rafael house and the san francisco historic society and the todd could and tenderloin neighborhood corporation and museum of afghan projects. there were a lot of grant while smaller organizations that represent community throughout the city i want to give director chiu an opportunity for comments >> good afternoon bryan chiu of the mayor's office of housing and community development.

we are rapidly approaching the final meeting of our four months process with the working group we had the first meeting in december and our final meeting this friday at which point we'll be discussing the final draft of our proposal as supervisor kim mentioned the actual disbursement relics or reflects only a small portion the solution is a citywide solution and i want to reassure the board when we did our special survey we sent out our survey to every single nonprofit that was funded throughout the city for at least 25 thousands or more it was much boarder than the mid-market corridor we wanted to make sure

we reached every nonprofit throughout the city and indeed some of our solutions reflect the possibility of citing some nonprofits in other parts of city as supervisor cowen said in our report we discuss the possibility of the shipyard and treasure island. we look at the possibility of extending the nonprofits up to balboa but we have to be creative it's a very big difficult problem. i'm encouraged that the budget committee for this report traditionally we've only look at those departments that provided the fund. we brought together the controller's office and the real estate department and the

various departments i think who need to be part of the overall discussion in terms of planning you'll see sections on draft all the times and matchmaking between available spaces and the organizations that may be able to acquire that space or put together capital. i do feel a if a that i have it may take four or five years to come up with a permanent home he don't want to repeat what we did with the spuldz and as soon as those supplementals ran out we had the same problems. i think that will need

creativity on our side. there are some groups that have to stay where their clients are there are some groups that are more flexible. we be looking at one-on-one technical assistance stunts because each nonprofit has its own special characteristic in every location is unique. we may not be looking at some opportunities for store front we need to look at the entire corridor. we may be looking at opportunities for second floor space and putting people in building to combine the social service organizations. to let you know we're looking every single opportunity. we're coming before the whole board because we're comfortable

presenting it to the board as a whole we need all our support in order to make this a successful effort. thank you supervisor kim supervisor wiener >> thank you first of all, i want to thank supervisor yee for the amendment to send this to the full board or place it on the full board reserve. i do have some questions for commissioner chiu. ideally this supplemental will be coming to us after the report is come out and after mow missouri and the arts concentration has put our their criteria. i and some others expressed concerns about the four and a

half millions which is really nothing underlying it we have a major problem in our nonprofit community and we have to help it was a little bit premature. having that come back to the physical board we'll be approving the supplemental today but in reality it will be only approved after we release it from reserve. just a few questions. first of all, would all nonprofits be eligible for those only nonprofits that receive city money you made a comment that received 25 thousand or more. >> we recognize the needs of the larger nonprofit that community tyler approximately, six thousand or so in san francisco. i think our working group recommendations will recommend

the prioritization of the city funded contractors. again in the 2013-2014 there were approximately 14 hundred nonprofits that received funding from the city of those about 5 hundred of the 9 hundred received $25,000 or more. so we do need to do some type of prioritization and those organizations that have shown the effectiveness of their services because they've received the investment by the city will receive the first priority >> i think there are plenty of extremely effective nonprofits that don't see the city money and they maybe at risk. i don't know if that i agree with that kind of - so we have a

lot of wonderful nonprofits some receive city money and some don't. again, this is criteria that the agency would set forth. we don't make that determination in the legislation. so i guess in terms of when we come back when this comes back for release requested release from reserve i don't know when that will be in a few guess so or months what will you have to present to us? will you have the structure in place including the criteria in place? and yeah. so we're completing now is the report itself which talks broadly about the overall policy

recommendation. what we anticipate is bringing the full report. we were also planning on bringing to you a description of the overall criteria with some degree of specific sit if we went through a mediciney if we provided the 2.15 and it initially went out to a immediatey and they distributed the grants we would come to you how our rfp would be structured and within that rfp and within the response we would be able to delineate the kinds of priorities. for instance, should it be a city funded contractor if it was should the contractor have x number of years should it have a track record of successive

exorbitance or experience if you look at 2000 they required those quite a few criteria you had to show you had successful operations we didn't want to invest in an organization that run in the red. we thought the report should be a recommendation but we wanted to bring a second portion and yeah. i request that missouri and the arts legislation you provide this information before we release this what the criteria is going to be and the rfp process is going to play auto and so forth. i won't be comfortable without ongoing the structure what it was going to be. and then another question and i

know that supervisor kim and i went back and forth there are no restrictions geographyly this is not joy for nonprofits but part of this conversation today as well as previous statements was the situation of the nonprofit in mid-market i think would have been one of the spill appropriations but we know that's a fact real estate prices and commercial rents are exploding in parts of the city and putting this aside whether or not the tax program is responsible for the ellis in san francisco is somewhat applied and but whatever the reasons are you think there are quite a few of the reasons and some predate the tax legislation we see

exploding rents in a lot of places. so what - what assurance can you give me that all nonprofits in various parts the city are going to have equal footing because we could saw off this supplemental applies to everyone but in the administration could be focused on a certainty geography. i want to make sure we don't have this kind of geographic situation >> in our internal discussions have focused on citywide contractors that point aside we have been looking with departments to examine one - well, one item we're looking at the situation.

in our survey for example, what's the timing of each organization lease coming to terms. so if there's an organization that is expiring in two years in front of an organization who's lease is expiring that 3 months from now that's totally independent of the geography but we'll be looking at the major of the their funding and talking to the funding departments and what's the grants working with the nonprofits are they a nonprofit that's in good standing. the discussion is so far been about the quality and the nature of the program they're providing. so it's separate from the geography. those are the elements we'll be looking at so we'll not be

prioritizing a situation >> so your assuring me there won't be geography favorism. >> so colleagues i'm given the shift to have this harder at the full board for a decision whether or not to release the funds but this week and next week the votes are preliminary and we won't release the funds until we've had a working group report given that i'm comfort in supporting this today we're in an emergency situation with a lot of the nonprofits. >> supervisor breed. >> i too am comfortable especially with the item come back to us.

i do want to bring up a couple of points as a former director of a nonprofit supervisor chiu and i have worked together in the past and most challenging is a lot of technical work required in order for nonprofits to actually quality whether they submit an r f x or rfp and the process we went through the extensive process that goes into what folks need to do to quality. what i've seen and this is one of the most frustrating most of the organizations that receive funding are the same organizations with the capacity to continually apply for those funds and they get awarded. so their organizations that get left out. i know you mention technical avoidance you and i both know as

much technical assistance as you provide some of the organizations do have the capacity to implement the requirements of the money that they've received from the city. so what i'm looking at here and i've looked at the part of the broad spectrum of organizations that received it in the past there may be a board contingent of companies by not a board funding that the museum got a planning grant they got $400,000 that's a huge difference. i know that we had a lot of challenges the redevelopment agency came in and expected them to be a organization they were not and they made is difficult

for them to keep the property to provide a theatre space. the point i'm getting at from experience as great as something may look on the surface and around the rent stabilization and port support and organizations sometimes the same organization that are not necessarily in trouble are the ones that benefit in the meantime the ones that are the grassroots organizations or even the artists for example, that are losing their homes and losing out on the fabric of our community because the larger institutions not the arts and simplifies they get left out of the process. i'm trying to understand how a small artists and a small artist in the community that used a place like is sylmar and the

african-american community how can they benefit from this opportunity. it might end up being organizations business as usual or new organization with the infrastructure to prepare a decent application >> he appreciate your comment. and it is something we've looked at. and that's actually, one reason why this fund we do not anticipate the specific focus on acquisition and rehab as we did in 2000. the number of organizations that can magazine a $400,000 grant is relatively small. we've worked together on capital

campaigns and they need to manage it kind of large project which is why we want to focus on a range of solutions. some organizations can never acquire a building so we want to look at a variety of displacements even if it's antonio a long term organization that has a practices to stay permanently. we're also looking at the opportunity to create an entity like cast but perhaps there's a cast for nonprofit organizations we can't expect every organization to be able to handle that acquisition but can we create a vehicle to pair up with another organization where the small organizations we put

them with an organization that manages those kinds of issues so that variety of solutions it's not perfect but we're trying to take advantage of those situations. the 2.5 would go like this if we gave out grants in that amount that's why we're shooig away from those kinds of grants >> the last thing i have i don't know if this is something we can look at in the future it involves the city owned cultural cities that will be excluded from the $2 million so mr. city attorney i was hoping at the later date we can put the language that and include them

being able to apply for those funds with the arts commission or not. because that's the process that it is now because those particular organizations one which is in my district and supervisor kim's district and supervisor cowen's and supervisor campos district those city owned facilities yes there open the capital plan and fatally apart but the city keeps delaying and delaying and delaying to a point if those facilities close down we lose artists and access to arts space again, we're just not taking care of those buildings the way we should especially the latino cultural center and the other facilities i don't want to see

them included from applying from either pool of money as a way to maintain their facilities so they continue to serve the arts community in the way they have. most of the time those are not well established organizations those are not people who are using those facilities w that can afford to pay rent. this is where artists first get their break. i don't time to see them included so i want to see the changes necessary for them to apply for either pool like any organizations in the city. oh, and lastly i'll say again, i'm more comfortable before the funding is released that a plan will come back to the board to have a clear understanding of what that trial means and

whether or not at that time, we can decide if that plan will be effective. i'm hoping when it happens the in addition information as far as the city owned cultural facilities that they don't necessarily have that limitation of not being able to apply for other arts commission funding >> supervisor mar. >> thank you very much for kneeing and to the leadership of supervisor jane kim and david chiu for thinking about a strong ultimatetion program that's helping us to address the eviction crisis that's hitting residents and artists as supervisor campos said and community based orchestras and arts organizations. i think the work you're doing with the work group will be

informative for a lot of groups i didn't want supervisor campos comment we're not letting the tech companies off the hook but to pay their fair share they're part of as well. i want to thank the budget analysis for the eye-opening report they did that points to the sharing of resources at facilities and a lot of other resources that supervisor chiu is going to help the artists organizations to utilize their resources but i'm hoping we can share that and to talk about the displacement crisis that's increasing in our community in mine as well >> supervisor campos. >> thank you president chiu.

first of all, i thank supervisor breed for adding the points will be the community arts center like in the mission and the mission cultural center their struggling with basic things in terms of the nodes of the building and, you know, unnecessary they just got a new roof recently but it took time to get to that point i want to see them become a part of the process. i know that probably chair farrell of the budget committee may not be happy to hear this but once we begin the displacement of nonprofits i think that the number that we're talking about could very well grow especially, if you're looking at some of the other folks that are impacted, you know, in the context of the arts community artists themselves.

and i would say that going back to the point it supervisor kim made i think that as we look at the twitter tax break we should look at the stock options tax break and understand the consequences of all the acts we need to pay attention to the tweets and to do that. but i do think this is an opportunity to have a much larger conversation about whales happening out there and the decisions we made are creating some of the challenges so i will revise my comment to include the twitter tax break >> thank you, colleagues any additional discussion. with that, and we take a vote on the underlying measure as

amended madam clerk, call the roll >> on item 11. >> supervisor breed. supervisor campos. supervisor chiu. supervisor cowen. supervisor farrell. supervisor kim. supervisor mar. supervisor tang. supervisor wiener. supervisor yee. supervisor avalos. there are 11 i's. this ordinance is passed on the reading from. colleagues let's go to our 3:00 p.m. madam clerk, call items 24 and 25. as >> that's a special order the board of supervisors will known for a whole meeting for items 25 e