>> people know in san francisco, first thing they think about is, let's go >> good afternoon and welcome to the san francisco board of supervisors land use and economic development committee. i am scott wiener the chairman of the committee. to my right is supervisor kim the vice chair and to my left is supervisor cohen and we are broadcast today by sfgtv. madam

clerk are there any announcements? >> please turn off any electronic devices and please turn in cards and documented part of the file should be submitted to the clerk. the items will appear on a future agenda unless otherwise stated. >> thank you and public comment is two minutes for public comment and this are cards in the front of the room. madam clerk will you call item one. >> item one is a resolution approving the acquisition of 28 avigation easements for the noise insulation program. >> and number one was sent to the land use and economic development committee. it's for the budget and finance

committee and my motion after public comment to refer the bottom to the budget and finance committee. if there are no comments we will open it up for public comment. any public comment on item one? seeing none public comment is closed. [gavel] colleagues could i have a motion to refer this to the budget committee? >>i am happy to make the motion so this say motion we can make. it doesn't have to happen through the president? >> madam clerk. >> yes. >> so i will make a motion to transfer to the balance budget and finance committee. >> yes. >> and we will take that without objection. >> yes. >> clerk will you call item two. >> number two is addressing the planning code for the production, distribution, and repair zoning to facilitate the establishment of uses. >> thank you and supervisor cohen is the lead author of this item and madam clerk it you would add my name as a cosponsor as well i would appreciate it. >> thank you very much for

hearing this item today. this legislation is actually a long time in coming. when the city adopted the eastern neighborhoods plan many thought we were making a mistake for zoning portions for pdr uses and no longer a demand for manufacturing in the city and i am proud to say those people are wrong. data shows that we have an increase of need for space in san francisco. the legislation does a number of things to support and grow our manufacturing sector in san francisco. specifically it removes the requirement to obtain a conditional use approval from the planning commission for common pdr uses who want to locate in those districts. it also allows small manufacturers to pull their resources and share accessory retail space which are central to their businesses. it supports the development of new

manufacturing spaces in conjunction with the rebuilt self storage use. it facilitates the development of small develop work space in a greater number of areas and is an incubator and incentive for new pdr spaces on vacant or under utilized parcels in the industrial district. we worked for more than a year with input from several supervisor's offices and with key community stakeholders to incorporate feedback and recommendations. specifically after hearing from several stakeholders including representatives from the eastern neighborhoods citizen's advisory committee the council and we have met substantial revisions to the ordinance which follow. adding a requirement that developers of newly constructed

space submit a detailed business plan that specifies purpose, proposed tenants for the space, measures to ensure it's user for the users. efforts to work with the community and hiring disadvantaged workers and disclosure of information about their anticipated rents so we can make sure the space will remain affordable. it establishes a two year pilot program for new construction requiring evaluation by the planning department to determine if we want to modify or continue the incentive program after two years. added language to encourage the use of hiring programs that are commonly used by organizations such as meta, including jobs now and state and federal tax credit programs. it eliminates ipdr from the code which was not being frequently

used, and relied on the benefits of the old enterprise zoned tax credit program. legislation also specifies the number of parcels that would be eligible for a new construction program in the legislation so that there is no confusion about later who can and cannot qualify. and more than a dozen other changes have been requested by the small business commission as well as the planning commission and community stakeholders. the legislation has been the result of significant collaboration and i am proud to say it was supported by all of these commissions and the advisory committee. i'm going to ask a few individuals to provide further details on this proposal so we have a few short presentations and first i would like to bring up the mayor's office to speak on this item. thank you. >> thank you supervisors. mr.

chair, john lou with office of economic development. given the supervisor's overview the presence of department staff here that is available to talk more about the specifics on the legislation if there's need or desire i will be brief. the mayor was pleased to introduce this legislative package along with several supervisors including chiu and campos and supervisor cohen of this committee and working in coordination with our partners and the executive director is here today with important partner in putting this together so lend support to local manufacturing sectors always been a key element of the mayor's 17 point job plan so it was in this vain over the last year we were able to produce

this package with the cosponsors and industry sponsors and it's because we're part of a national trend that seen growth in manufacturing. san francisco is now struggling to find space for small and medium size businesses and those that wish to locate here in the city so in that vain this package was produced and the goal is two fold to ease the regulatory land use process around certain operations in the city and ultimately to incentivize the production of new manufacturing in the city, so as the supervisor mentioned it's really worth noting how far we come in the past 10-15 years both in the nature and tone of the dialogue and hearing rooms throughout this building at that time, and really trying to answer the question as to whether there was a need for the

eastern neighborhood zoning to accommodate any industrial zoning at all whether a demand for the operations in san francisco in the future, and now the conversation as evolved to a much different place. we're now discussing how better to support these businesses allow them to grow, and provide new space for the years to come, so in closing i just want to point out again and extend thanks to supervisor cohen and representing the district that hosts the majority of the pdr -- remaining zones in san francisco and an relationship and thank you for the leadership on the issue and thank you mr. chair and i am here with staff to answer any questions? >> thank you. next we will hear from the planning department. >> good afternoon supervisors.

i will keep this brief because supervisor cohen did a great job summarizing the legislation. we created the neighborhood in the bay view and created sanctuaries for these issues and banning households and office uses and this worked exactly as we intended and providing this and we have seen the pdr sector rebound and particularly the manufacturing sector and affiliated with these companies and we noticed aspects of the zoning that could be changed to help these businesses based on real cases we have seen. this legislation is our attempt to make the changes and do four things, promote the creation for more businesses, make the spaces function better, make it easier to be a priewld and controls more comprehensible and we're

excited to support these changes from the planning department and support the well being of pdr businesses throughout the city and we're happy we're able to make this a collaborative effort. i am happy to answer any questions in this hearing. >> thank you. next we will hear from kate and the executive director of sf made and she will give her perspective and how this benefits manufactures in the cities. >> this is a collaboration. thank you supervisor cohen for your leadership in the process and it's been very much collaborative across multiple supervisors offices and supervisor campos and yours as well and the planning department, the mayor's office but more than anything the legislation was informed by the power and data for 540 local

manufacturers and many are here today and designed to protect what we have and we're at a crossroads right now and both growing the sector but we started to lose manufacturers for the first time, not because they don't want to be here or because of the expense of being here, but simply because we can't find the space, so this legislation colleagues have described is intended to both preserve what's working and certainly not throw the proverbial baby out with the bath water but look at inspicive approaches including new construction on the 16 parcels that have been identified and it is also a type that we haven't seen use of and the small enterprise work space that we believe it result with the changes in the legislation that you see will produce a small number of additional multi-tenant buildings that can handle early stage

manufacturing and other uses. we urge you to adopt the legislation as written. we will hear from some of the companies that will benefit from the legislation and for them there are so many others that couldn't be here today. the men and women who couldn't take time away as those here did and explain why this is important us to. this vote sends a message to this sector we care about this sector. we recognize this sector and provides jobs to the people that we are worry about and affordable housing and this is where they work and thank you and i am humbled to represent these companies here today. thank you. >> thank you. that's a great segue into public comment. is that okay mr. chair? >> great. we will call a handful of names and you don't have to speak in order that i call you but if you could line up when i call you, and if

anyone needs special accommodation for whatever reason let us know and steve cooklyn -- i apologize for mispronouncing names. (calling speaker names). sorry, i cannot read the last name. michael giewtenburg. autumn [inaudible]. hi. >> good afternoon supervisors. i am steve and representing the owners of an existing storage sight in the bay view on gerald

avenue. we think the goals are of the legislation are laudable. creation of this space is critical to maintain blue collar jobs in san francisco and cross subsidy with other uses is the most efficient way for the city to construct new space. in 2011 my client submitted a planning application for mix use pdr and storage facility to do just that and create 28 spaces averaging 1400 feet along with wholesale and public storage on a site that contains 68,000 feet of public storage. the new storage would make it affordable and provide flexibility space for the manufacturers raw material and equipment and inventory. over 50% of the existing facilities are loosed to pdr uses. we strongly believe that a mixed use pdr and storage

facility would provide a economic viable model for the space in the proper ratio. unfortunately the proposed simple replacement policy for these projects is not feasible. if you really want to create this type of pdr space we request at the very least 1/3 to two thirds pdr to public storage similar to the proposed ratio for office space. we would be thrilled to use this as a pilot project under the plan. thank you. >> thank you very much. next speaker. >> good afternoon dr. espinola jackson here. i would like to say i have lived in hunter's point, bay view hunter's point for the last -- since 1948, and i have a concern with the pdr, the zoning change, because what occurred is someone applied for a change with the pdr at 3453

street and we in the community oppose that area being set up as a clinic, but guess what? it's a clinic there with babies coming there, and it's very toxic there. if you don't know the area you shouldn't be voting on this. i'm not talking about the storage. i am talking about other areas because the cac that you just set up a couple of months ago i went to the last meeting they didn't even have a quorum so they couldn't vote on this, and i have a concern with this rush through dealing with the shipyard because this would even include the hunter's point shipyard what they plan to do in that area and there hasn't been an environmental impact report in that area because we got

jury to rule in our favor against the board of supervisors, and the city planning department of having the -- the fact they were saying the area was clean and san francisco health department so you have people who you think are support you, supposed to be looking out for the health and well being of the community is not doing that so i am just hoping you don't approve this entire portion. i agree with this young man that spoke before. if you're talking about just storage space fine but if it's other than storage i would disagree. >> thank you. next speaker. >> back in 2002 when mr. green was the planning director we discussed every detail about pdrs. we now have a district supervisor who is bringing about some changes, and kind of sending mixed signals. not too

long ago she rushed to the planning department and to the land use over 15 blocks from industrial or pdr so they could accommodate users like a hospital. now, i see that there's some general language, but where you going to get the space? the problem is if anybody wants a space for pdr especially in district 10, the bay view, there is no space, so how you going to accommodate people from somewhere else? now, when we first discuss about pdr we embrace the latinos, the chinese, those who couldn't speak english and got their input. i wonder if that was done this time. people are trying to rush through

legislation because the elections are near. people are not representing the community. their heart is not in the right place, so i know that if an investigation is done, and i don't mean a legal investigation by the fbi, but i mean an investigation on space, pollution, transportation, other quality of life issues and you link it to this mickey mouse and set here so it sounds great but it's very difficult to enforce and most importantly the problem there is no space. thank you very much. >> thank you. next speaker. >> thank you supervisors. my name is ray mosely. i am with [inaudible] and with my colleague rachel and we are here in support of the legislation

primarily because of the legislation we're able to create real jobs. we have a manufacturing -- time manufacturing facility at 18th and alabama that has 23 people on the production floor. we form glaze, fire and qc close to thousand feet of tile a day that we ship worldwide out of that facility. we also have a separate shipping crew that ships -- of five people that ships in essence of 30 packages a day again out of that facility and being frank without the legislation that facility couldn't exist. those folks couldn't have jobs here in san francisco so we absolutely support the legislation. >> thank you very much. >> and i'm a huge fan of your spot on alabama.

>> next speaker. >> hi. good afternoon. my name is holly caan. i am with timbuctu and a manufacturing manager. i have my team leaders behind me. we have been in the mission district in san francisco for 25 years and both these ladies respectively have worked for years with the company. they live in san francisco. they are proud to be employed in the city, be able to give back to the city, have jobs they can easily get to and support their families in the city. as timbuctu continues to grow and they're part of this growth as the manufacturing is responsible for 40-50% of the business we can't continue to grow without the space and we have total of 60 in our company.

we are the only timbuctu manufacturer in san francisco and it's just really important to grow and have the space to help these women support their families and it's not possible without the legislation so we're in full support of the pdr. thank you. >> thank you very much. next speaker. >> good afternoon supervisors. i am robin esveedo with [inaudible] mattress company with two of our workers. we have been in san francisco on market and [inaudible] and happy to have a space to accommodate much more square footage so we're interested in seeing that the legislation protects space for manufactures like us and with me are two of our employees that live in san francisco, work in san francisco, and have for

15 plus years, so they like working in san francisco. >> yeah. >> and living here and we really like manufacturing in san francisco so thank you. >> thank you. thank you for running such a great business. next speaker. >> hello. my name is autumn [inaudible] and i have dark garden [inaudible] in san francisco and [inaudible] who is our production manager. we have been manufacturing in san francisco since 1995, and have a production staff of 12 people. we also have a retail store in hayes valley where we sell and represent several san francisco based artists. we're interested in this because one of our --

one of the people that we represent has recently lost her space and wasn't able to find a suitable space to work in and now is moving her business to the other side of the country because it's easier place for her to work in the fashion industry. that's all i have to say. thank you. >> thank you. >> i am christian and have been working in textile manufacturing in san francisco for 30 years and i think we have lost a lot of our manufacturing spaces and have the opportunity with a lot of creative people to add more jobs in san francisco. thank you. >> perfect. thank you. i will now call the next batch of cards that i have which is the final batch. (calling speaker names).

those are all the cards i have although i see one more card madam clerk right up there. go ahead. >> thank you supervisors. i am gabriel medina and i want to thank everyone's work, supervisor cohen, supervisor campos for pushing this so far. we really like the inclusion of a business plan working with the workers, disclosure and the pilot plan implementation. that's very help helpful. i had a aunt that worked at [inaudible] for many years but as you heard from speakers the demand for manufacturing space is great. san francisco only has 6.8% of the land designated for industrial and manufacturing, the least of any city. i like this legislation and how far it's coming except

the small enterprise work spaces, sew, and [inaudible] latinos try to get jobs. it's great as a pathway if you don't have a degreer english proproficiency and it's active space and four blocks from our office and unfortunately in testimony from sf made and other organizations only two of the units are manufacturing so they have 20 therapy counseling offices, nine skin and hair salons, nine design offices and 4e commerce and tech offices and only two of the 43 are actually for manufacturing, so there's real data. active space has been there for years. it's a new development. we want to be sure that the space is used for manufacturing. we think that is more than economically viable to make sure you have a cap of 50%

of office space at these locations because that way manufacturers don't have to compute against tech companies that might necessarily want to use that space for something other than manufacturing. we have so little space. we don't want to lose anymore so please support the legislation. we need a 50% cap on the spaces however. thank you very much supervisors. >> thank you. next speaker. >> good afternoon supervisors. my name is fernando [inaudible] with the community of housing organizations. i want to thank supervisor cohen and campos for how far this legislation has developed. there was a number of issues that were programmatic and a number of issues that seemed really good. as you heard from the manufacturers a lot of clarification in the laws how pdr happens in the pdr

neighborhoods is clarified in the legislation. there were three issues that we raised and two of them i think have been well dealt with in the amendments. the first was the question of kind of unintended consequences. in the section that potentially creates new pdr space and in that section potentially we could seeing at full build out 2 million square feet of tech spaces in the manufacturing areas. it might be a -- give or take and we get million space of pdr spaces. however, there's some funny math in the studies that assume the tech spaces are paying $8.50 a square foot which we know is completely different these days so i think this legislation has preceded by saying let's make it a pilot program for a few year

and how well it works and next is a category that nobody has built and that has been dealt with and the third is a question of the sew spaces. potentially we could see buildings like active space completely taken over by start up.coms. the kinds of businesses that we're moving into the spaces in the late 90's that lead to the creation of this sort of category and so i think that's a pending issue that still needs to be resolved. putting an office cap on those things so they don't turn completely into tech spaces, a 50% cap seems quite in agreement with it elsewhere in pdr. thank you. >> thank you. next speaker. >> hello. i am david pierce. thank you for having