formula retail so it's on the retailer not the department this is a new non-es terrific of the 9 findings in section 7033 of the existing planning code 4 deal with the size and structure of the company while only two addresses aesthetics. supervisor breed appreciates the work on formula retail i don't want to sound like a nitpicker but your department has done a great job navbt the issue by on subsidies supervisor breed strongly disagrees with our staff analysis that was endorsed by the has a valley association and the has a valley association as >> heard a minute ago and now from christen the hate ashbury is asking for the same change

the small business commission endorsed that and supervisor mar is proposing to adapt the same changes norpdz the writing is on the wall if planning didn't make the changes the board of supervisors will we encourage you to do this on behalf of supervisor breed. thank you. >> thank you. >> good afternoon, commissioners i waited to the he said and have little to say i'll endorse the comments like the has a valley and kathleen and her comment about considering ways to deal with local small chains more effectively. and the proprietary book smith

kyle from the v c m a covered the points and then some. i'd like to raise one point i hear the phrase he why grazing i want to compliment the staff it was a very good progress but one thing about the comment of its not a wide-ranging faxing impact it's such and simple a percentage when we talk about the neighborhood commercial district a citywide statistic is almost meaning also i can be talking about a small ranging impact that is an immense impact on the community. that's sometimes is getting dropped to the cracks that recognition when we talk about the wide-ranging impact the

issue of foreign chains in the fillmore we've seen the foreign plaza chains i wish we saw the interesting chains to expand internationally what we see are the folks like the cooper's and if you look at the map of europe you can't see it because the dots open the map are two big the hypothetical and the two big >> thank you is there any further public comment seeing none, public comment is closed. commissioner fong >> well, well, well. there's so much to try to comment on and thank you all for coming up with your opinion i want to start off and thank ms.

burns for organizing the subject matter and the other departments for working with his and point out it was about two years ago the commission asked the department to pend time and money on collecting the data and what's could be is helpful for us to understand. where we've been and possibly going and by all means where we are in and out now is not the end all it's not a one-size-fits-all policy we should ref review this as online sales change and the environment of the retail will change. the number one goal in my thought we need to keep san francisco vibrant and our streets active and the vacancy low that means choice and

balance of choice means formula retail and sometimes small businesses i come from a small business background and opened more businesses than i can list understand the landlord tenant relationship and the competition and understand that, you know, running a small operation didn't mean you have small departments to combat. it's around formula retail the underlying thing is to protect the neighborhood commercial districts i think we're taking steps forward there were opposition and positive remark but we're better off right now with this particular policy so i think those are pretty much the comments and support of it moving forward obviously there's

room for more tweaks but in general you're going this formula to think that citywide there are great streets in the neighborhood of san francisco that are unique and i wouldn't want to necessarily use blanket policy for those unique areas across the rest of the city that wouldn't be fair >> commissioner antonini. >> well, thank you to staff and all a who commented today on a complicated issue i have thoughts on balance i'm in favor of it and will be supportive of initiates but first of all, the most thing is increasing the number is appropriate it's not ash tracer it only captures another 5 doesn't capture

another 5 percentage we're not only looking small businesses like the soup or san francisco soup or phil's cfo or blue bottle but a number of others smart phone companies that given in san francisco. if the company begins in san jose new mexico and looking to location they're first outlet in the west coast we want them to come to san francisco not to someplace else like san diego or palo alto we want them here and not make it difficult so hard for them they're to take the easier course maybe they have only 14 or 16 outlets throughout

the region and looking for a new one. so i'm in favor of that it could have been a little bit higher only 4 percent fall into 14 or 20. we want uniqueness nobody is going to care if someone comes from something else in the united states we want the people to the local stores after they've heard about a store from san jose. we don't want companies with, you know, as due 50 percent of the formula retailers have over one thousand 45 and 45 percent over 51. we're trying to capture the ones we see everywhere else.

on the issue of subsidies i think one point no speaker brought it up the logical one instance they bring up a case if a rich anyone were to come up with something else totally unrelated to restaurant he's the owner as i think 14 different restaurants which are super duper there's instances that are very hard to monitor and so i think that most of the big the larger formula retail companies are going to fall under the barrier of 20 outlets and r i

mean porty barn have thousands of pottery barns that will be that you could that's the mid sized company that's going to be saved from the process and perhaps in a more favorable light i agree with staff there were a couple of concerns the limited financial bagging being atms and he make a makes a good point that seems like every time they want to put up a atm perhaps a dr or handled administratively and the public will have the ability to bump it up to the commission if there's objections silicon valley's also they're going to be spending a lot of time supporting atms they

have to follow the right aesthetics to be monitored by staff to make sure higher approveable and they look okay on the other hand, and not drag from the neighborhood. another thing that was not brought up this doesn't have to be a criteria as we evaluate for different companies if their san francisco based on companies that are headquarter here and employ thousands of san franciscans we need to give them, you know, a leg up. i know we have to taking into consideration often those companies binge as single stores they're not lights a good use and still has to go through the ccii regardless of size we

should give favrm and might pull some businesses like jimmy john by a juice probably for reasons they didn't want to be here. 50 firms have left san francisco for a variety of reasons and not make it less business friendly for all businesses to be headquartered in san francisco and bring new ones in. i like the idea of looking at the long term vacancies and we want to promote those in neighborhoods their did you say they're also included oh, i misread it we want to look at closely because most not all

markets but month that come into the challenged areas are probably going to have more than 20 we have to think about that. and the other thing president cedillo up the process that's very important i think we should aim for no longer 90 days from the cu application to when it, it's heard it helps everyone to move along quickly and when we deal with the larger scale super stores we have to be careful not to completely discourage them the orchard 0 hardware is where people drive away from san francisco.

and i've heard concerns about one person bringing a cu i think that's a little bit of a trigger we need protections for the public but i mean one may be one person could trigger a hearing at planning to see of it a cu is necessary an item on our calendar you without hearing the whole case but address it and let us know why it should be a cu and they have to go past another step so we could be spending forever on administrative. so i generally am favorable to most of it i had a couple of the global part i don't want to belabor this i think it's complicated a global store that

has a lot of outlets like more than 20 perhaps the number should be thirty or something like that and require a cu and be exempt from cu if they have less than 5 in the united states. we should encourage them to come here we trust our administrative staff to make sure it's appropriate you signage and it would be a benefit to commercial areas if they bring in a store from another part of the world. so i'm okay with adding local generally but make exceptions. those are my main thoughts >> commissioner hillis. >> i have a couple of questions for staff. first of all what's your secret everybody is complimenty how to do that human resources on the

subsidy that's the ones that both me the most we've seen issues and there have been issues with subsidies like jake spade do we know if that is captured under the sub subs. jake spade will be formula retail because of the worldwide it gets into the questions of the distinction of a subsidy and what's the structure and i understand the policy issues and policy concerns for having it my

biggest concern is simple with the implementation but i think the use ability 9 and the value of the ordinance goes as far as to implement it and, of course, if we have requirements that are not enforced effectively that diminishes the valve of the ordinance >> but i mean, i agree with the sxhooemdz office you can turn it back on the applicant and have an affidavit saying they don't or do. they knowed have subsidy they have to have outlets that are not the same people will look

for loopholes and we've seen it happen like the get store i don't know if that falls under it because they don't have other brick and mortar stores but that's where we see formula retail like jake spade and others fall through the cracks it's typical i hope to see some variations it is a real problem that we don't necessarily address i agree >> thank you, commissioner for the question one of the issues it's to complicated we not seen any proposed language from my elected official that captures the jake spade with the initial definition the parent companies

need to be naeflts established retail so in the example ms. burns gave the brick and mortgage stores a- that the owner company if you have more than 50 percent ownership if you're a formula retail then everything you own is formula retail that's whether or not it's at&t's an individual they're not formula retail if they're a holding company and own a lot of affiliate retails then you are. one last thing not mentions is that then if we do have the definition that could change as

the ownership structure changes then we're evaluating a formula retail establishment and looking at the concentration of other formula retailers in the neighborhood we'll have an affidavit from them but not all the district that changes ownership on the retail. supervisor breed's office did oh, they could accept only looking at the ownership structure of the applicant and not taking into consideration >> but starbuck's could say we're going to open starbuck's but legally they - >> legally if it doesn't city

target a different than target it's within the same parent company but the clever mind could very structure that so it doesn't fall through the cu process. we haven't gotten the real examples >> if i can weigh in this is a complicated issue we've had a lot of discussion i'm more concerned with a less tangle reason it's setting us up on a slippery slope certain types are acceptable and certain are not. the issue with formula retail its effects open local businesses the visible characters of the store all the things the ownership structure

sets up a whole megabit what is appropriate in the city or not that's a very frankly dangerous precedent that's my main concern it's a concern about the less tangible >> i'm less concerned about the 11 to 20 it's somewhat ash arbitrary in both numbers it would be good to get more facts do we know over the 10 years looking at cus how many entities we've looked between 11 and 20 and how come we've approved.

>> we would not know how many applied between 11 and 20 they've not captured it all they've not applies for any and some for 15 would have had to apply. >> we could look back and see how many establishment but we establish that through an online research it's impossible to see how many at the time of application. >> how long does it take to go through the process for a formula retail. >> 6 to 9 months it the timeline. >> i've got people who is we've sat in the hearing with phil who had to sit through the 9 month

process if we can't speed up that process for folks another 15 i can't remember where we've regretted or had a controversial cu of anyone below 40 so looking at it historically if we've run into issues opposed at the 15 those are the facts you know of what's happening. and then on administrative review is only concern is the starbuck's i get it if one person could trigger it back to us but if a current occupant has over 15 i think the current one is are or are you not a formula

retail but starbuck's that may be one that renovates through and no opposition it self-have to come to us. and then finally, i know we've added mid-market i agree with. did you think or have any thoughts on other areas that may want to come under the cu legislation. there's like mission street south of where market street is i can't tell from this map wouldn't - and it's a neighborhood commercial district it currently has formula retail controls are you talking about in the sylmar >> i'm looking the map. >> the mixed use areas in sylmar i'll take a look at the

map one thing that is a concern over fisherman's wharf area and the wavt and the northeast corridor has the controlled for formula retail we've talked about that and there's concern about isn't it true that control and talked with the district supervisor didn't express an opinion it's critical on market street and not recommending to expand it geographyly anywhere else. >> this is similar to europe market. i'm looking at this map in, you know, down third south of dog patch that's included perhaps the new development the other day would be katrero hill area i don't know if there's

consideration >> we were careful about the concern and didn't look at that area. >> i know that might be, you know, people i get like downtown selma and union square some of the other places i don't know we may run the risk of having neighborhoods not wanting formula retail. >> so the south of market is part of the eastern area so that went through a thorough discussion. >> then the 21st and castro and upper market did that go away. >> our current report we've reached out to dna it was supportive and working and staff has heard concern from the

commission that's not appropriate everywhere where staff recommend approving or disapproving and from the staff prospective we want to use a wider discretion but the neighborhood group wants to keep the policy in place. >> i don't think it really i mean, i think it was thoughtfully done but not work it overturns more of an art instead of a science. >> thank you commissioner sugaya. >> yes. in the discussion one of the reasons for expanding is to try to capture some of the local businesses. so ones that are sided like

phil's cfo goes to 11 and 20 some of the businesses will be able to open without a cu but we're not using local as a definition correct because blue bottle is part of san francisco but not headquartered in oakland >> part of that is correct and part not we can't give preference to businesses that are locally owned or here it would benefit the start up and local businesses some examples that are locally started was shthsdz you're familiar with who would be effected. >> that's good i don't like blue

bottle anyway and the band like has a valley and north beach and the special controls and cds. >> it will stay in hayes valley if we change the distinction like supervisor breed wants it changed it will focus has a valley the definition we'll change universally. >> and then under the administrative review the potential for someone if the director as indians okay to the changes of one formula retail existing and another one coming in they could appeal that at the building permit stage as a