to realize their financial goals. i've worked with my nonprofits helping them with technical assistance to help them manage a better strategy around fundraising and diverse their funds. i got called upon how this money will be used i had questions about supervisor yee and other supervisors feeling shape geography specific. i'm satisfied with the comments that supervisor kim made about the nexus of money to where the need is for this particular nonprofit. i'm happy we've got thoughtful resolution but to reiterate to the nonprofits for public comment i'm interested in hearing with the long term plan strategy will be.

thank you >> supervisor campos >> thank you, mr. president it's been a very informative discussion but i want to sort of look at it from a different prospective. i certainly agree there is a need that nonprofits have and i'm inclined to support the item but i want to step back with context. as i see it we're talking about the impact that the tax break the mid-market tax break is having in the neighborhood but the impact in other neighborhoods. i can tell you it's not just mid-market that's impacted clearly a that's a big focus of the impact. neighborhood like the mission for instance, that i represent have become ground zero for the

displacement. i think that, you know, we have to be careful about how we try to address the impact of this tax break because one way of looking at it it and someone said this to me it's an interesting prospective is that we're talking about trying to encourage companies to come into this geography area by giving them a tax break that's funded by san francisco taxpayers that in return is impacting the taxpayers and we're asking to address the issue by asking once again that taxpayers step in and help those nonprofits. and yet we're not doing anything in terms of asking the people the companies that receive the initial benefit. so i think as a matter of fairness we need to the even if we move forward with this item

we need to revisit this idea of what's the impact of this tax break and not only that is there a modification or amendments that should be made to assure that's not just taxpayers footing the bill to the extent there's impacts but it's also accountabilities who have benefited from the tax breaks that are playing they're part. i don't know that simply asking taxpayers to foot the bill is enough. and the impact goes beyond the nonprofits. the impact goes to the residents to the merchants and i'm glad that supervisor avalos added the arts related nonprofits but since we're talking about art what about the artists? the artists probably need more stabilization than anyone in san

francisco certainly in my district artists are leaving in droves. and i appreciate the fact that we want to support the arts community and the organizations that i think are doing great work and deserve that support but if we're talking about impacts of a tax break impacts that go beyond this neighborhood i don't know we're doing enough to fully address the issue. i wasn't planning on doing this today but i'll be presenting a request to figure out what the different ramifications have been in this geography areas but in surrounding areas to get a better response not only specific to nonprofits whether their art related or not but their response relative to

merchant and communities like artists that are being forced out of san francisco >> supervisor kim. >> thank you shall we vote son the motion first. >> why don't we votes on the motion and mr. gibner clarify again what the language would be we'll be amending. >> deputy city attorney john gibner again. on page 2 of the ordinance line 21 provides that the funds shall be placed on budget and finance reserve and rather than budget and finance committee reserve the ordinance will read board of supervisors reserve and the title of the ordinance will change according >> okay. so that's supervisor yee's amendment described by the

city attorney and second by supervisor cowen once this is amended one of us will introduce a motion we sit as a committee as a wholesome weeks later and we'll make that decision collectively. any more discussion on that amendment without objection >> supervisor kim. >> i want to respond to some of the colleagues first of all, thank all for this robust 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