from the tax revenue from the area or the total amount. >> president chiu. >> so the increase the initial 2 and a half million is the today is values for those properties so in terms of the city is a benefiting from the tax property revenues we're heaping it will go back dot into the nonprofits. >> a hundred percent. >> yes. for that particular area. that being said our controller had fairly reasonable estimates on what the taxable properties are and it's likely those number t is going to get bigger as the construction is completed and try to take a more conservative approach

>> but at this point your oracle for a hundred percent only for rent stabilization. >> well, we've estimated i'll ask the controller but, yes it's the taxable interest in the area and i want to clarify if it's one hundred percent. >> the amount is pure a tax increment in the areas that's one hundred percent of our general funds property taxation and just the tax component it's hundred dollars percent of the tax component that's been requested is the four-point - >> sorry not initial supplemental was 2.5 million was pegged to the estimate of the property tax increment generated in the zone as of today. >> and we're adding 2 million.

>> upward of $2 million. >> so it exceeds the existing tax increment based on the entire figure. >> if. >> putting those numbers today yes as of today. it's worth noting as a legal matter the board of supervisors and mayor can't decade property taxation any use so this is an estimation your drawing from the general reserve >> i got that i was trying to thinks since it was brought up those calculations were made in order to determine a specific amount to allocate. this is what supervisor tang and supervisor wiener both said in their comments earlier but i know as a former commission of

the san francisco redevelopment agency when we look at the at the time of the accident increment we're not doing this from a legal prospective the tax increments how is works for the city is was never dedicated to one purpose to job growth and so forth. i realize we anticipate that there's expected growth and expected tax growth in the booming areas so the city will generate specific tax revenue but at the end of the day there's more thanks than that there's transportation needs and support around police presence and there's also personal affordable housing and other issues. i'm not suggesting that we put one issue against the other but i just, you know, have a concern

with moving forward in a direction without clear understanding of exactly, you know, what's actually going on in the area the data there's a resolution, there's a budget analyst report increase nothing i have in terms of data or information it demonstrates to me there is a clear concrete need. there's her, her say and i'm familiar with the organizations in the mid-market area. many of the arts organizations and some in particular are in city building where significant dollars are need and we've not investment the appropriate amount in selma its fatally apart it's a art center and it supports the mid-market area yet

we are choosing to focus on rent stabilization rather than taking care of the facilities that need support of this nature. i do understand what's being proposed i have a lot of concern with the fact that there's no data to support this. there's no clear plan to support this. i don't feel comfortable supporting an stem without knowing what's it is going to be used for. i've seen abuse additional a lot of organizations get funding because they write great proposals and this is not giving me the satisfaction because of the listed organizations that have received funding in the past they have a clear

organizational structure to receive the funding but what about the small organizations and the organizations we're trying to help hallway u how can they get access to the dollars. i'm not seeing the connections i think what's being prospered is admiral but it doesn't have enough concrete information that gives me is comfort level to assure me the people because of the rise in rent in the mid-market area that they're actually going to be the ones that benefit from the support. so at this point, i can't support it but i want to in the future with a more detailed plan >> president chiu had a response. >> just a couple of quick responses there is significant data around the nonprofits i'll

point to the budget analyst report on page 4 it says that commercial vacancy rates have decreased by 25 percent over the last 2 years. and at the same time, we know that the average city commercial rate has increased by 33 percent that's a sense of what the pressure is >> with respect where's the information where's that data i know what the rents are you know what's happening in the mid-market but what about the artists. >> before you cut me off the draft of the report is in the file. the other thing this is not the first time that that a program like this has been implement admiring admiring the first.com area we have several things that

implicated this program and we put things in place to help nonprofit organizations and specifically arts organizations. we got the idea looking back from the 2000, 1 and 2 timeframe to see where this is coming from. the third thing i understand colleagues that folks are wondering what's going to happen once the report come out and supervisor yee and having i have had the conversations right now this is draft this will go to the budget committee for their review. i want to hear in supervisor yee about a different process that will give you more comfort so with that i'd like to defer to supervisor yee

>> supervisor yee and just for the record he knows that mr. bryan chiu from the mayor's office of housing is here. >> supervisor yee. >> thank you first of all, like other supervisors i want to commend the effort like supervisor breed has run a nonprofit i did 18 years of running a nonprofit with 7 sites i was around when the.com hit us with the rent. so the panic that people have running nonprofits especially, when their lease it up it's a real feeling that dramatically impacted other organizations that were around at the time they went under. in the nonprofit world for those who are not from that world most of the expenses you have are

pretty much going to remain standard you might have increases in saliva you build it into our budget. two things in the nonprofit world that are inbe predicable one of them is insurance. when we got hit with an insurance hike about 20 years ago it was doibl and tripling we didn't have the money and another one how much you're paying for rent if your paying 2 thousand for a space and they want to raise it to 35 hundred a month for certain nonprofits it's a big chunk of changes. i appreciate the effort we're moving down and i'm glad also that when we talk about the 2.5 million or the 4.5 million

it is not the total increase of going 0 into the coverer of the city and we'll have opportunities to look at the rest of the funding. for me i think i'm echoing some of the comfortable level i trial building there is an issue with rents for nonprofits. so that's not a problem. there's no argument there. we want to help them out they're the backbone of many communities. the issue for me is well, i feel like i have a lot of expertise in you running nonprofits and understanding the rent if it goes to the budget committee i'm not on i feel i'll be left out which the decision. i want to feel comfortable about

the plan. there's something that's allowable in this chamber but hadn't been done rather than having the reserve go to the budget committee i want to recommend that the reserve go to the full board of supervisors for release. i believe the process wouldn't be a long-drawn-out process but maybe the city attorney can explain that better >> mr. gibner to the chair. deputy city attorney jonas the board mention they've placed the reserve on is reading from and hadn't been done in many years the process for realizing that the supervisor would introduce

another motion to schedule a reserve as a whole and at following boards meeting the boards sits to take public comment and adapt a motion to release the reserve >> i'm comfortable with that process. if we were to go that route and end up being a long drown u drawn out process so i don't know which i could maybe ask for an amendment >> a motion and make a motion. >> i make a motion that we change the statement where we're putting the money in reserve for the budget committee to put in the reserve at the full board of supervisors. >> we have a motion any supervisor yee and second by

supervisor cowen any comment. >> we obviously have a lot of comments so we do the public comment at the full board of supervisors for decision. that is something i will support i know there's been a level of discomfort and obviously we're going to have recommendations so i appreciate supervisor yee asking this question and our city attorney suggesting a different ways to go about this >> okay supervisor kim on the motion. >> yes. on the motion i'm happy to support the motion i want to reiterate it doesn't mean we'll be hearing the public comment so we'll all be subject to listen to that. i'm happy for all the full board of supervisors to hear what our nonprofit organizations are going through and a lot of of the concerns to provide services

on site many of geography dependent and still in oakland they provide the services for the community throughout san francisco so if the board will hear from them i'm happy to support the motion >> great. supervisor cowen >> thank you very much i wanted to acknowledge the city attorney and supervisor yee thank you for that suggestion. the motion that i am happy to support. it brings more comfort as we begin deliberating. i have one concern to express to the sponsors of the legislation that the legislation felt as to it was inclusive. i represent a lot of neighborhoods in the southeast people want to move into we have space and it's one of the more

affordable for nonprofits to make their homes in. that there- this was very mid-market specific and selma inclusive so this ability to hear the matter before the entire board is very, very attractive. i'm interested and you can begin to communicate i'm listening for long term planning. this is a short term fix so a very, very large and systematic problem how do we assist or partner with nonprofits on long term planning to help them begin 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