where the neighborhood that are more affordable not see that harassing as much so the retail that those neighborhoods attract but in turn of local stores you'll attract as well more upscale technologies that have higher levels of income. i think what is interesting and the report starred to talk about this there's a trend we hear a lot from the small business community the online issue is a large issue about the loss of shoe repair and other stores because the change in the nature of the retail. it's true you see the amazon fresh trucks and you can get whatever you wanted we hear it over and over about minimum wage and other things one of the

changes that the small businesses are having is competing the low margins competing against online retailers to provided i provide the necessities so that's something we'll have to look at. the future of rail is more complex. i remember that there's an organization called street sense based out of washington, d.c. for local people to gal in his how to repair their cooperated they a tool kit but they did a lot of research to look at what people want they want experience they're no longer brand loyal and so it's not a chain or otherwise their local to experience so a retail that whether or not you can play with

the items there or sit on the furniture they're doing what is in demand not the things like computers they're not that expensive so being seen there but the other thing that is in their research when they looked around the world they had about 65 percent food and bachelor that's the trend they find that 85 percent of americans figured out what they're going to eat after 8:00 p.m. when they pick up something from the grocery stores or actually go out to eat that's the changing dynamics. ss made their bith area of local merchandising would be food based businesses so the trend is

toward food and beverage maybe in a restaurant environment but a multiply lard environmentalist we're ponding this because at the end of the day we might be looking to solve a problem that doesn't apply to the future. in terms of going back to the approach when i talk about international folks whether it's a chain popper in europe we don't have here that's why they're attracted to come to san francisco or various environments. there's a multiple lard amount of information looking at the national trend in retail is important it didn't meaning maple with we have to do anything in particular but there

are new problems not anticipated >> very well pit commissioner borden and coming from someone from the restaurant industry. my comments are retailers ras as this city gets bigger and living in micro units like tokyo people treason outside of their homes like in small businesses we enjoy the combination of going some nights to different places. i was happy to be part of the group that called for the information gathering but it is pointing out what beak to balis balance. we need a little bit of both in

the city. there are southern groups that have a need for small stores because the health care person provided it's a convenience to walk to get their needs. so, yeah i'm looking forward to the rest of this multiple series report and hearing from dr. eden as well it's coming down to not one blanket policy or one-size-fits-all for the city but this commission is thus far in my 3 and a half years we've made people happen and some happen and some not happen >> commissioner moore. >> great comments i've been part of the focus group and for the public this is not a study

that's been cooked in the backroom the commissioners have actively participated to create a discussion around formula retail not for the purpose of offering flowing existing rules but creating a process that indeed is responsive to the public's concerns as well as our own. the one thing we're mostly concerned about is the sameness experience which sometimes an over bans of retail shows in other cities that's at the core of how much formula retail is defined it's not just formula retail their smaller entities to the ones that are large and dominant and present. this is a work in progress only an update not policies that are

discussed or formulated we're all here listening and observing and what i can say from my prospective summarized by the lady with the chamber of commerce is that that's about balance and flexibility. she's participated in this focus group for the same number of months as the three of us. it's a work in process it was a great presentation the work is not done. we're here updating you and standing by to really take it now into the realm of policy frmgs which is a major step nothing has been said or written down we are trying to absorb as much of your concerns as we are finding a common base this is

active participation we'll define it unnecessary of us knows where retail is going. some of us are concerned about the sucking out of life in the retail experience in the neighborhood corridors by just being on line that's a death of some industry and we're trying to find balance and thank you for formulating that. >> thank you. commissioner hillis. >> i just wanted to add that i think even people who want to loosen the restrictions see that generally, the process it is working like the starbuck's or express battle it's doing what

it's supposed to do. and we're approving a lot of obviously new formula retail shown by the chart but giving neighborhoods a voice. so i think it's good we're doing this. i'd be supportive of this tweak in the process not necessarily an overhaul >> thank you let me add a couple of thoughts. we heard concerns about culture preservation and the hire of the diverse workforce they're interested in how formula retail can hurt or help those goals it's not a one fits all solution especially with the name to commercial districts. i like the introduction of this daily needs serving business

this helps us think about services. with regard to think about international or not i think there's needs to be a balance if we include the international balance we should be thinking about upping the number of formula retail stores. the international stores what provide a sense of preservation like stores from asia. i wanted to ask staff if they can give us guidance on vacancies if there's a percentage at which it's a red flag it will help us in our deliberations and lastly i want to ask commissioner antonini's concerns to the egan study maybe it will help address some of the

issues >> just to answer our question about vacancies we explore the 10 percent of the district and when we looked at the issue about real estate there are is notice information in the section of the commercial districts. >> okay. thank you. so with that, i think the commission will take a 20 minute break. >> on item 14 for the next case. at 21 market street conditional use authorization >> good afternoon michael smith planning department staff you have before you a request for

conditional use authorization to amend an motion at the ground floor retail spaces of a mixed use building for this address on 2175 market street to created east create a ground floor market spaces into a single-space and adding additional restaurant spaces the restaurant use that was applied will not change in the upper market street in the commercial transit strict and in the octavia plan area it requires the conditional use authorization planning sections for an individual ground floor retail number one residential space h that covers 75 linear photo and the use feet for 2

hundred and 49 gross square feet. it requires additional use for a bar and restaurant use. as stated earlier this is for a market rail expect that will create a one-stop marketplace featuring local business in a shared space to a similar to the ervin space it will feature local businesses that employment each other. no one of the vendor have been which you will to you'll be approving a concept. the department is okay with approving this and it is eloquently to allow the owner to

look at those spaces to number one retailed firmly business owners. additionally, any tenant needs to come back to the commission for the conditional use authorization approval. it includes a plan b neighbors expressed concerns regarding this plan b concept that permitted a bar use restaurant the use to address those concerns the project sponsor has agreed to eliminate plan b so i've had the secretary deliver to you pass out to you a revised motion on a sheet where things were taken out of the motion before you.

we can discuss those really briefly. so the first paragraph on page one we removed the respect of the secret and on page one in the preamble deleted alternative or restaurant after the 2 hundred and 99 square feet and on the peculiar page the reference to the restaurant at the 2 thousand 49 square feet and on page 4 finding number 5 once again another reference there and on page 5 finding number 6 c once again another reference to the larger restaurant. so those have been removed and

that's what you have in your revised motion important the department is recommending the changes for the following reasons it's a unique way to create he lower cost business tint for smaller businesses for sharing retail space and the project will provide a unique shopping experience not in the dignity and the project will not lead to an over concentration of eating places in the district and lastly the you've received the materials we've received letters of support from the castro merchant and the castro cv d and two nearby residents that concludes my presentation of the project >> thank you pardoning -

>> good afternoon. thank you for your time in hearing this item. i want to mention this is a project that of those approved. in 2012 a project with more is that a >> excuse me. you need to turn that up. >> okay. there's my building showing so this building is 88 units with 44 parking spaces we have this approved in the octavia plan and is it has a higher standard. michael did a nice job of

describing the market haul and the specific c u items. he mentioned the community outreach i think what you may have letters already if those community members but i provided another copy as well. i've been meeting with the community since 2011 as a project of a whole and came back with the additional cu i've been working with them since december of last year. i worked closely with various community groups that expressed interest in the review and the castro cv d and the castro merchant and some street that neighbors. worked with them to fit this within the perimeters of interest to them they should issues with the retail discussed so i wanted to assure that them

we'll create a space that meets their needs. i worked with them to craft a paragraph at their request it's the condition 13 in your packet in the conditions of approval it addresses some of the concerns making sure that the vendors are limited to the size so i want to mention the outreach i did perform and it was helpful to get their feedback to make sure this project was a success. now for the fun part market hauls have proven to be successful thought the country and world frankly this is an old

world concept of having multiple vendors in one place to allow the vendors to survive you're familiar with the market building like the ferry building this is more like 4 thousand square feet so a smaller size. another example of san jose and san pedro they converted a building it cleared a lot of spaces for people to gather and spend time together whether for a cup of coffee or, you know, a sandwich or whatever it's a place to bring together something we want to create for people to meet and gather. the second act in the european hates it's opened up with

smalle smallers. the market is another example we took from. so i realize we're sort of going the extra effort to get the cus we could have left the more traditional but more valuable for the vendor for us to do the lions work we're doing it because we like to do creative and interesting projects that bring vicinitycy to an interesting community and i feel lucky to have worked on and created this project in this neighborhood and i hope it adds to the community. thank you for your for your time i'm here for questions >> thank you. let's open this

up for public comment (calling names). >> dear commissioner president wu and commissioner fong and commissioners and director i'm ted olsen a neighbor of the region i'm here to compliment you and to ask you grant this request we we met with them that xhofdz the development on market and 15th street they've met about other associations and innovative retail space with the agriculture parking and a large bicycle garage to help.

the rooftop and enclosed rooftop is another benefit their exploring benefits not maybe restaurant bar but other multiple vendor their latest concept stations in their retail space already approved for restaurants and bars continues to innovation it allows others to get a foot hold. and this will allow 2 or more alcoholic vendors to share the space that's proven successful in accountability areas it's inclusion her open upper market street it needs a new rental along the district.

because at the intersection alone we're gaining 2 hundred residential units and this could provide more nutritious food. in conclusion i've observed all aspects of the construction and daily complimented the crew. they've been careful with their demolition and construction as well as the effects on their neighbors. forest city has been a good neighbor and granting them this conditional use will help as they manage their property. they continue to work closely with the community to enhance our dynamic neighborhood thank you >> thank you. >> good afternoon, commissioners ryan patterson for both the triangle association. d t n a a happy to support in project today.

this is an nooflt and great edition to the neighborhood. i want to thank katie o broin and the forest for gage the neighborhood. i think this is going to turnout well. we also appreciate this late change eliminating the plan b option. plan a has a market idea but plan b was to continue large restaurant and bar we want to make sure it's understood looking at exhibit a on page 12 of the conditions of the approval this refers to add additional restaurant and bar use want to make sure this is understood and perhaps staff what clarify this is plan a to have a restaurant and bar but if

the concept fails we're not talking about the second restaurant use. thank you very much we hope you'll support this project and thank you to the do you see the person in court here today and staff >> thank you. >> thank you. next speaker, please. >> good afternoon, commissioners david treasurer of the triangle association. i won't repeat everything this ryan said we only have one concern and if the things were to change at some point in the future if the market hall concept was not pursueed then the entitlement will revert back and subdivided. i have not been involved in this

project but looking at the motion i saw something that was surprising is it really the intent that this only be entitled to operate 6 days a week? that's number 12 on page 15. i don't think d ta recollected has an objection but thank you >> thank you is there any additional public comment. seeing none, public comment is closed >> commissioner moore. >> it's exciting to see this on the heels of formula retail because the businesses of something that looks same and can be seen every where else it's indeed to have a concept that will take hold on other

neighborhood it couldn't be better than sticking to the delivery of this project so i'm comfortable and delighted to senator this cu. >> thank you commissioner antonini. >> yeah. i have a question for project sponsor katie. i see the building is rising quickly so what kind of when do you think it will be implemented and ready tore leasing and occupancy. >> we plan to have it implemented in september of this year and hopefully mathematic in the fall. >> there was an article in today's chronicle it talked about a similar project i'm not sure if it's in the twittering building there's no reason why

not having two of the same thing. >> it's gained popularity. >> sound thank you. >> thank you. >> commissioner moore. >> move to approve. >> i want to ask staff to clarify on the days of the week. michael with the planning department staff so on conditions 12 and the motion specifics 6 days a week that's an error it should be 5 days a week >> thank you. >> and the maker and motion there are amenable to that correction. >> thank you. >> on that motion then commissions commissioner antonini. commissioner borden >> commissioner hillis. commissioner fong and commissioner president wu. so moved, commissioners, that motion passes unanimously. and places you on item 16 a and

b for the request for conditional use authorization and variance at the 2198 market street. >> good afternoon, commissioners michael smth with the planning department staff you have before you a project to construct a new to 65 story building with 87 dwelling units along market street a portion of which would be occupied by a restaurant use. and a basement level garage that contains off-street parking parking spaces. the project is on 2891 market street. it's within the market