commissioner antonini. no arrest commissioner antonini and commissioner moore and commissioner fong. commissioner president wu. so moved, commissioners, that motion passes 5 to one with commissioner antonini voting against. commissioners that places you on item 13. formula retail controls today and tomorrow this is an informational presentation.

>> go ahead. okay. >> good afternoon, commissioners planning department staff. today, we're providing our 3rd

of four presentations in the formula series. since july we've been analyzing the formula retail and the effects on the city neighborhood we've presented the report and wanted to give the commission and the public of the overview thoughtful report. after diaz hearing we'll continue to welcome the comments through mid may and at the end of may we're moved with the recommendations of the data and professional analysis and public input. the report is a dense come a time i'll take you through the highlights. the first section how many formula rarities are there and who are they. citywide found 12 hundred

establishments that's 12 percent and nationally they're part of chains that include 10. and there's 31 percent of the retail square footage. the problems with the formula retail varies by business type 80 percent are retailer. and on average the formula retailers come up more spaces nearly 85 percent of formula retailers occupy 35 thousand square feet and now we'll look at where the formula retailers are located what we what they look like. they're highly in areas that accounts sorry places without control. this includes the nc d and

concentrated in you downtown and the north eastern water front their shopping centers that requires regulations. this is new material we're going to share with you it represents the in depth issues. some retailer formulas draw significant shoppers around the city have hire concentrations of formula retailer and it is based on on the issues like the customer traffic sales volume as he visibility and assessable of store for the purposes. retailers benefit from clustering and the concentration of the activity creates a designation that attacks more shoppers. open fillmore have the is one

example. the relationship of formula retail varies depending on the type of district. we saw this clearly in geary boulevard and the upper fillmore and the ocean avenue. in the upper fillmore retailer formula their neutron vindicate tarnl building with limited park and the fact when they have people that are likely to take transit. in crafting the ocean boulevard and geary is located in single buildings. many building go shoppers prefer to transport in car. this is the formula retailers that cater to recreational

shoppers depending on our their areas. in areas with the formulates are not regulated this serves shoppers and investors. the common retail include the apparel and height and beauty stories. in general the banks and other services that serve the customers needs are in districts with controls. this is the direction of impoverishes of dial needs. some parts of the city with lower incomes appear to be underserved so for the most part the formula retailers have distribute equally. some are immersing like in the upper fillmore it has clusters of duty stores and other

merchant but they report a decline in the services. on this charter it's stationary stores and art galleries and the like. comparing that retail mix to the ocean avenue mix the ocean avenue has other retailers and that includes the fruits and vegetables and framing stores and other stores. and in this section we'll be looking at how the railway formula effects their willing and able to pay higher rents that serves tourist. landlords in the city most attracted city market like the fillmore they require letters of 10 to 12 months of rent human

resources they've reported landlord keeping the vacancies up until a national tenant what about found there are not that consistent directions of local vacancies. the trends are up for formula activity it's strongly co- related with other things that happened after the recession. formula retail establishments have the resources to improve the store front and can serve as anchors but can be changed with communities organizing outreach. we understand that the public is interested in the formula in benefits of diverse hiring

unfortunately, we have a shaurl of data. and the data that is provided is limited to provide the privacy of folks so the daily is permeate vs. full-time is only through the sources. adding to the challenge the definition of formulate retail is very specific and is never reflected in the literature that is possible to reciprocate the data resources. we can say that the practices in san francisco vary by firm size as to whether a business is formula or retail. they employ significantly for workings in firms of the different locations. for example, multiple site firms

hire more part time or temporary workings. we can talk about the effect of labor laws firms with fortune 20 employees are less likely to offer health insurance. however, san francisco labor laws raises the floor that they require to offer higher pay compared to counted parts in elsewhere in the country. we'll be looking at the formula retail controls. it's important to understand that the planning code regulates the height and size and quantity of signage. exuding pending applications 75 percent of those have on

approved. this approval rate may under represent the impact of the controls for formula retails as the police station itself discourages some retailers in district that are controlled. the process combrpz well organized merchants to keep out certain retailers. we have cu authorizations that have been denied and in general the applications appears to depend on factors like the potential impact on businesses and whether the landlord have keeping the vacancies up. the relatively low concentration of formula retails says their successfully keeping the retail concentrations that is effected

and before the controls went into effect the various commercial districts are served. by creating the disincentives the start up cost maybe lowered by making the - the city's formula retail controls maybe a contributing factor for large storefronts. the form rite aid is that a has been rented by walgreen's they pay rent but not occupy the space. the space retains vacant it maybe ideal to subdivide or divide the retail uses the bottom photo is a former walgreen's that's been vacant

and petco went through that earlier this year. the space is now released to a sports facility known as high 5 sports. in this final section wealthy we'll look at the approval process of formula retail uses. changing the definition to include international chances of 11 or more retails will unlikely effect businesses citywide. with 11 are corporate members their headquartered outside the u.s., however, they have a long established process in the u.s. keep that in mind the controls to other types of land uses what effect the businesses in san

francisco and make it more challenging challenging to fill the vacancies. as they've come consolidated number one retail uses are playing a role in filling the vacancy places and seeing the retails it's likely to effect new businesses. based on the businesses that are located in san francisco this proposed change is unlikely it have a wide range effect subsidies only accounted for 12 or more corporate places they have 12 or more locations with the same trade name in the u.s. the appropriate concentration of commercial directed vary

significantly. the existing concentration of formula retail you see in this map we looked earlier you'll see did county react differently it's not possible to define an ideal level of the concentration that would be applied. changing the definition of formula retail to businesses with at least 20 other establishment will exempt some face growing teaspoons company. so start ups in san francisco like the soup company those changes are over the they recalled of 11 their significantly smaller than well established chances that concludes my report. now you've heard the full content of the report we ask for your the comments from you and

the public. this is by community experience and developed knowledge. the work to date is to meet the timeline of the legislators it's crucial to understanding a broad understanding of the issues we're looking to continue this engagement process through the commissions hearings. so prior to hearing the ordinance on june 5th. thank you >> thank you wonderful we'll open this up for public comment first. i have a number of speakers please line up on the screen side of the room (calling names) you can leave it in the container please. good afternoon, commissioners. >> i'm richard i'm a resident of

chinatown. i favor nor liberal listed policy for national retail store coming to our many neighborhoods specifically chinatown. currently only walling great and subway have a staff in chinatown and well, i don't know what happened no chinatown those merchant use the they're busy and they're in chinatown but their employees are underpaid and overworked. i believe those at least the national chance stores they will pay the minimum wages or more they will follow the rules and regulations of our, you know, labor standards. we too have a very good office

on the labor standard but they understand and i hope they will hire more people and bring everything up to code so our low income wage earners will have a better chance to make more money and contribute to, you know, up keeps and then if we don't pay enough we don't think the hospital or health care and many and school lunch and so forth. for all those reasons i favor that you liberal lists more chance stores coming to our neighborhood. thank you

>> thank you. next speaker, please. >> good afternoon commissioner president wu and commissioners i'm ilene i'm here today on behalf of the builders and managers coalition. we're going to talk about the district 3. we know there are interim controls on proposed formula controllers that exterior next february we're concerned about the proceedings as the policymaking those controls don't go got 3-d district i ask you to look at the correlations between formula retails and large spaces there's a correlation and if you think of the mega district the consumers shop there we don't want to have

an absent with the kind of retail personal service kind of goods and activities would use when they're working in the city and saves them a trip. i think the other thing to be mindful of the formula retail controls it puts the heavy hand of zoning on the market effort you'll see the number of vacant store front their co- related with formulate retailer. to be mindful and not do a kind of change we'll recommend the least 20 or other establishment because this allows a lot of low san francisco homegrown stores to get in but you'll get the kind of variety in the store

front we want to have occupied we don't want to have vacant. thank you >> thank you. next speaker, please >> good afternoon. i'm dee dee workingman from the chamber of commerce. the chamber of commerce has been working for the last two years on the formulate retail controls and we're pleased with what we see in the study we think it captures the current conditions of affairs regarding retail of all kinds of in the san francisco commercial districts we agree with the conclusion for the most part in that you can't have a one side fits all policy citywide that will work with the unique commercial corridors each one is different and has different needs what will serve one neighborhood best and so on

we have to fine-tune those to work best in each neighborhood depending on the needs of the neighborhood. i'm happy to see the suggestion of about increasing the threshold the number of 11 between what you are formula not formula retail and lifting that number to 50 pr it's important we support local businesses and san francisco stature up organizations we we don't want to punish successful we love the mom and pop places we love them; right when tyler two or three and suddenly we want to open their 12th one we punishment them because their going to fall into the definition of formula retail. we can capture the majority of

formulate retailers but allow the small businesses to grow and succeed we're supportive of that that's an intrith suggestion. i feel less supportive of the suggestion it's okay to expand the definition of formula retail to 11 or more locations worldwide. the argument you're not going to capture that many businesses this is called formula retail controls today and tomorrow. tomorrow you don't want to put a policy in place that discourages international chances from coming into san francisco they want to open their flagship store but their discouraged from that that would be a mistake

that's a policy we won't support. that's a recommendation that couldn't of that study but germany think the study speaks to flexibility and balance and is really great and we're pleased. thank you >> thank you. next speaker, please. >> good afternoon, commissioners i'm technically can brown i'm here on behalf of myself more importantly for the people i serve i'm a health aid i've been in the bus for public service a a long time. it's important to me. the people that i serve i'm passionate about it. the report was beautiful but i want you guys to remember that the seniors they don't have

access to get a lot of places because they have to depend on their family and friends and paratransit and other forms of transportation. i myself that's where i come along that would effect them and my job as well. i do a lot of walks with senior citizens to cvs to give them a sense of independence and quality of life. a lot of the sentencing the baby boomers are able to stay at home longer they have people like me to come and take them on walks or pickup their prescription or walk around the neighborhood and see what is the go on. ii want you to be mindful it's not about the business the

business the business about the people. seniors are part of the community a lot of times we if the record could reflect about them and their needs. so i guess i want to say if they can get here a lot of time are not aware of what's going on i make it my business to talk about current events with them so - thank you >> thank you. next speaker, please. >> good afternoon, commissioners i'm paul wormer. i'd like to take the observations i have in the upper philadelphia district and first note that the percentage of formula retail in the upper

fillmore is very small 28 percent for the clothing, however, if you instead count formula retail dipped today and looking at the multiple national companies it's subsequently higher because it's a highly desirable street and when you have this people want to go there because there's customers. this is an interesting district in san francisco i see a lot of relating low priced stores. it's repeat happening it's an exciting place called the mission. how many of those cost effective stores serving low income populations are going to withstand the competitive threat the trigs e pricing threaded bleeding i can't get into the

fillmore anymore because their taken by national contributor but there are a lot of little groceries on corners and there are a lot of other businesses they can't be paying much rent because their customers are not that wealthy. think about how that plays out when you define formulate retail there are a large number of companies that are not captured by the definition which i find that an extremely appealing area maybe i'm paranoia we z don't have to worry about those that are using those merchants in the area.

thank you >> if you want to come to the podium i'll call important names. >> hi i'm here on behalf of the youth that use those stores for jobs year around we need those jobs to keep the kids out of trouble it keeps us businesses. we're all young adults we need to know how to work and we need the working experience you put all those small businesses there won't be enough work for us they won't hire us i've worked at targeted and safest way if you take away that stuff where will he go. that's all >> thank you. next speaker, please. >> hi commissioners good afternoon. i'm here to speak