reconclude it from going into pdr districts. we have chocolate on valencia street they choose to be in the neighborhoods why prescribe that from happening we've closed gaps in the past. we support new pdr businesses we be are recently came here for legislation for pdr businesses there's pdr reduced fees and we sensitized new work and work with sf dot made on behalf of the pdr sector no sf repair we're happy to work with them but on behalf of the sector it's important to have an organization before there wasn't a unidentified voice to speak to

the needs of the sector. what are our next steps we're working with supervisor cowen's office to support legislation to protect pdr if landmark buildings you'll be seeing support pdr new projects that is a graphic of the new facility on pier 48 as part of the giants new development as well as the rehabilitation of the new buildings and health department. i have a guess you'll hear about this. this is a picture of the flower mart part of the discussion do i want to see the land redeveloped make sure the flower market is on site that's part of the conversation we're mulling all kinds of idea inquiring new development making sure that

central soma maintains an industrial presence because they permitting provide 3 percent of the pdr land but enhances the national feel to the neighborhood. we have legislation to protect pdr there's legislation that allows large retail and there are some spaces at risk we've talked about this to supervisor campos office. the next steps the enforcement they're important topic around pdr space. the did not like most planning department's in the world is complaint based and it is overstretched by the amount of complaints to the useful to be talking to folks not having pdrs replaced and finally the

recreational study here we're talking about pdr like any conversation it's a recreational topic we're trying to solve all the recreational problems i've been talking to uc berkley where the protected land are they all at reflex and so we can have a more informed conversation. with that, i'm going to turn it over to ken rich from the office of economic workforce development they are exist this topic is here and requested a couple which minutes >> i'm ken irish standing in for the director of oewd i wanted to say something ems i spent several years on this i think we largely got it right and glad that we were able to see the results in the hearing.

pdr is a topic we care deeply about today unemployment in the city is down to 4.4 percent down from 9 percent every sector is growing trade and transport and merchandising is growing faster than the national afternoon and mayor ed lee is supporting the manufacturing sector a priority as part of the 17 point jobs plan oewd launched an initiative for the merchandising businesses this included first hiring a sector manager to manage the work and if tiffany can raise her hand she helps businesses to

in fact, city government and helps them access resources and connects pdr businesses to other pdr services and develops sub sector like the food and beverage sector perhaps i'm going to give out tiffany's phone number you may want to phone number (5) 540-6559 sorry no home phone number. the invest in the neighborhoods and the off office of small businesses we're reaching out to the select auto body shop in college hill for example. the second piece of the 5 point plan is the technical assistance for mrsz those are capital

activities those businesses took place we've developed did plans like the loan program and the revolving plans they've received 6 millions in funds and in addition to the city allocation fund for the produce market to help with the food sdrishts and the fourth is workforce tiffany works closely to get them hiring assistance to the jobs program part of workforce we have the youth made program we've worked with sf made and another is program called the sf mrsz and

as part of that we've got to the biological projecting program and the budget to promote locally made goods and services this is an area where mark dwith is focusing. i want to close what one final pot as steve mentioned the 2007 economic strategy tells us the export tourism and others drive the services like pdr. i wanted to give an example of interconnection in production we have a tech company on the distribution side the wholesale produce market to expand to meet the demands providing the foods to the restaurant in san francisco so that's the tourism

united cold food storage move forward to san francisco from south sf and another example called ideal restoration jack are carpet move forward if south san francisco to be closer to consumers and want to be closer to hear consumers. that concludes any racks i'm happy to answer any questions you may have >> thank you. okay open for public comment >> john. >> good afternoon again, i'm president of tax could group we've been working with our

program parallel to the department to identify possibilities that we really hope the department endorses and essentially implements. it's good we endorse where they're headed but you have to turn good intentions into scoping and other provisions that generate results that's what we want to talk about. first of all, it's important to highlight that artists are actually part of the pdr universe this is not normally thought of but the same epidemic displace of employment of pdr uses in the district is effectively the artists for the straightforward reason that both of them accompany the same kind of older smaller, you know, unimproved building that

historically characterize both neighborhoods the second things pdr is changing it's viewing being so kinds of small start ups that employ the digital technology and respond to the modern economy much different than the pdrs of 20 or thirty years ago when we planned for the south of market. that's going to continue those smaller start up need less than 5 or 10 square feet so they can afford higher rents the reason they want to sty in south of market it's the proximity of their services to the customers. and if that happens to be closer to the south central district they don't want to be across the bridge in oakland to fight 9

traffic. there's a real future in pdr south of market if you make sure it happens. we proposes to use inclusionary pdr space were any conversion for 660, third street we propose that the pdr system for historic buildings be capacity and adapted to make that economically attractive for some owners to sell their air rights but keep the pdr building. we proposes there must be a wanton replacement of my pdr removed as part of some district and the flower market is the key example for that position thank you very much >> thank you. is there any additional public comment.

>> again good afternoon jim from south of market. i continue to question the inconsistentlycy of the planning department promoting the construction of new pdr space with so much office included at the same time there participating in the distribution of so much existing pdr space by converting it to office oozed uses. pardon me for reading a lot here but i'm relying on the planning department documents. pdr business accounts for half of the all the jobs in the eastern neighborhoods. those businesses also apply the most people in western selma my neighborhood. 43 percent of total jobs just under a half of pdr employment is located in the eastern

neighborhoods and western selma. approximately a dozen blocks from western selma have been incorporated into this central corridor planning area. this is where the office of economic workforce development has declared it is city policy to prioritize office use. in fact, it's where the planning department recently has chosen to ignore the zoning that's on the books to promote more office space. quoting the eastern neighborhood eir again, the more than 10 thousand pdr jobs in western selma represents nearly 11 percent of citywide pdr employment. thus western selma while not part of the rezoning is a key component of existing and future pdr employment. the plan eir for the army

neighborhoods specifically calls upon the planning commission and the board of supervisors to quote place a priority on the maintenance of land use controls to accommodate pdr uses and to recycle potentially incomparable uses such as residential and office development to minimize conflict and the final pdr as well as several of the commissioners have asked for a no flet net loss policy the planning department wrote the planning controls could incorporate at a minimum no net loss of land designated for pdr. the planning department is in hot prostitute of incapable land use to pdr zones for conversion to office. zoning pdr as a right of use in mixed use zoning is what is

threatening them to the wolves >> thank you. >> thank you. next speaker. >> sonya community advocate with todd could i'm just calling i'm here to speak about the loss of pdr south of market where i've living for over a decade i'm compressed with the planning department has proposed about trying to save and continue to increase pdr south of market and it's a good place to preserve and to keep pdr uses in south of market. thank you. >> thank you, john as.

>> sue hester again. the handouts made me think characteristics of pdr low square feet can't food to build new space i look at the package what the planning department is their approach. i live in the real world the real world is the financial initiatives to convert a pdr building is so numerous it's happening under our eyes i would give you the buildings that have been processed at the permits that have been processed at the 660 third street how many have been rooted to planning. every one that does a tenant

improvement permit is kind of exempt from planning department's staff review. if every tenant and every improvement had been done factored there is industrial had been rooted to planning and someone with a cynical trained ice not someone retired 3 weeks ago but sxerns in planning actively looked at the plans they'll really is is this still m-1 or two use that's historically the use or pdr s o i use i can take you to the buildings that be being converted floor by floor what's the incentive to the owner he buys a building virtually never

assessed again, if he can convert the building from low rent space to office use he may have an evaluation that is based on did purchase price 20 years ago. at that is rock bottom they're not paying the rate of property taxes or the freight for converting space to affordable housing that should be paid they're not paying for the additional transportation that needs to be paid. so long as the planning department is hiding from looking at all of the tenants improvements period in the pdr zones in the industrial zones and the area you are basically putting on blinders and saying if that will be office and we're

going part of the process of cheating city taxed transit and affordable housing. that's the reality. i hope you're going to do better but i'm not holding my breath >> next speaker. >> (inaudible). >> i'll try to be concise. executive director of sf made i want to start by personally thanking all ever you for the support you've given our efforts in the community to be as creative as possible to stuff murgz into the city and commend our planning department staff we

couldn't have done this without the collaboration of the city family. we currently represent 5 hundred and 489 manufacturers and all the continued refinement we're in support we think it makes sense to continue to look at every stone for keeping space so looking at what happens to pdr space when they're in a landmark building and looking at the special use district on 16 and looking at more pro-active messaging as well as enforcement to do everything we can to make sure those property owners that venting as ms. hester described in making a buck if we have stronger communication out to

property owners that are pdr spaces that will actually be a good step. i'll share one bright spotty know you've read several articles no so long ago google was going to take over a beautiful historic building the old mission creek building i'm pleased to tell you we found out that one of our own daniel chocolate has bought the building and opening a chocolate manufacturing in that building this was not to say that transaction was not a hard one who've had challenges to struggle to find spaces for manufacturers but we've married made progress and holding the ground and thank you for all

your support >> thank you is there any additional public comment okay seeing none, public comment is closed commissioner antonini and i'm glad to hear there's a demand for sf made businesses in san francisco and certainly we have to be supportive wherever we can to make sure their accommodated if they want to be here. some of the flight of pdr from san francisco has nothing to do with land values or opportunity to make more money i can talk about 4 instances i know many of those are people i know the buy right wholesales the people who moved off alabama street to brisbane and dave from bay area to south san francisco.

i can't remember the beer stwhoerlz but they have he they've he moved to the east bay 0 it makes sense they need to be close but they were driven away by fees and controls by taxes and a lack of security in san francisco we have extraordinary taxes and it's particularly hard on manufacturers we got rid of the payroll tax but have to do more to be business friendly to firms particularly those who are able to leave because of the issues and security is an issue many of the locations have to have virtual for the trees to keep their places from being unprotected. so again, if we can help to

provide security that will keep businesses here. a lot of this has to do with moves to have firms that had their business boosz basis outside of san francisco if you're nationally you've not going to have to ship our products out of san francisco but the ones i've brought up are firms that have almost all their basis and work in san francisco. however, i think the move from some of the areas in the europe mission or that area having to move a little bit further south still within san francisco where we have available land and lower property values makes sense we should talking about talk to firms that are thinking of leaving san francisco try to find places for them to go you

can't change the values. the values are there it doesn't matter what we do. i think the things that were brought up by staff reaching out to firms before that he leave makes sense and giving them incentives and diminishing their takes those are the right steps. >> commissioner moore. >> hand to hand was our attempts to find solutions for affordable housing i believe that the continued protection of pdr is essential. because i don't believe while we're housing people in affordable housing that the jobs all of a sudden can move miles and miles away particularly if we want to be the diverse integrated community of future having said that, i'm happy to

hear the department take a strong stand what it is trying to do and strengthen pdr support, however, i'd like to see consistency by which you use that policy when making recommendations and dealing with the conversions of pdr to office. building that the policy of no net loss is essential to what our doing in order to increase pin our conclusion that rent the pdr can't really compete on rent and build new buildings your position has to be a consistent one at least on the recommendation on the level of where your guiding people that are either in violation of what

they can have in their pdr building as well as people wanting to convert the building so other uses. pdr is the zoning and sally is the overlay you need to tell people. i'm very, very happy to here supervisor cowen considering protection for pdr in historic buildings. i've followed the discussion historic preservation had a few weeks ago about the economic incentives off the remaining buildings and not using office as the only way that a conversion of an office building status can occur i know they'll continue to refine that discussion it's a very important topic which i hope that the planning commission and historic

preservation will talk with each other to help in terms of policy and rules to implement something like that. it's difficult for me to comment and chide you on fees but i believe particularly mr. restrict next to you that examining the potential of collecting correct fees when conversions occur is indeed a way to have pdr as well as achieving net die loss or replacement one-on-one replacement >> sorry this thing is. >> we've having technical difficulties. >> thank you.

i think we should talk directly about those issues coming up in many conversations my mike is not working president chiu. you know, it's important to talk about the historic when we look at the eastern neighborhoods plan about how we look at pdr generally across the city. at that time and when we move forward there was a pretty strong discussion will where pdr was to be protected and not protected and encouraged even 7 years ago when this commission reviewed the plan we talked about the fact that central soma was not necessarily be an area we would fully protect pdr but encourage it that's part of the planning process.

i think we'll we all agree on the goals of encouraging pdr and encouraging the growth of that particular sector of the economy but we also have to be clear about the issue of where we have high capacity high transportation and where certain types of jobs are more appropriated to go that's the issue in central soma. i think there's no question the fundamental character of south of market includes pdr types of uses we agree that maintaining some of that character in that district is appropriate. but to fully protect the pdr in that neighborhood is a different question that's the issue at hand and whether we should change it to effectively pdr zoning that's the most protection for pdr like i