important to us. those there are 0 those who have been successful and unfortunately two things the age of the internet and the immediacy of the goods is a crippleing thing in the recession we're looking for the pdr in the business plan that's the core of our business nor more than thirty years. >> so what's itself occupancy rate of building. >> about 90 percent for the 2 henry adams and the galleria less than 20 percent there's a financial occupancy that's below that. the occupancy numbers i stated are the obtain cyberspace

>> their active businesses in the space and you said the galleria is 20 percent or less than 80. >> yes. >> that's a pointed question it it stems from feedback from our tenant have you refused to represent new leases for the building other than the first floor. >> we have month to month leases and spoken and addressed many of those concerns about what is this transition looking like we can't have a to my left because it continues to have all those approvals but we have and will continue to work with each one and ideally it's across the

street and at the same time keep the ground floor very viable and the continued with ouroint of view that ground floor pdr be really active space so again, we're not seeing the building switch to office and that pedestrian experience be lost those show rooms they do everything to make sure that's viable so we're working with each and every tenant those contraction and those that are have already vablthd and those who need future space. >> okay. so i understand you've made the offer to relocate the tenants. in the building of one of your other properties and i'm curious to know how many tenants are you

going to relocate i believe on one 1 henry adams >> for the buildings the two buildings we have together we have had a number of discussions upwards of one hundred discussions with tenants on how to make the space available for them i do not say the street from the galleria there's been more than 20 discussions with specific individual tenants how they can be relocated not at their costs to the galleria. those space requirements range from 10 thousand square feet down to one thousand square feet. and it was only with those approvals and the subject at 321 we can america lists that but that's the intent to work with each and every one of them

>> so where i struggle we talk in an abstract and big way you're in the building i know you know exactly numbers to our vacancies and because through this long confidence we've had i haven't been able to get those numbers from you it's hard basically you're saying trust me we're going to take care of the tenants and i'm having a problem with extending the trust to the project manager. i'm going to continue i think it supervisor jane kim has a few as well. so what's the current occupancy of the building >> the occupancy. >> how many are we talking how many taser spaces and leases so i can do the math i need to know

how much. >> let me going get to specifics we have over one hundred leases in two henry adams so you want to know specification about how many leases in place. >> so you have over one hundred how many on the first floor that won't be loss. i'm going to defer to council woman >> 11. >> so how about the responses to be on the mike for those watching sfgovtv. >> so for interest of the time martha. >> i've been there 3 seven years. >> you handle the leases.

>> there's 11 on the top floor. >> that's okay. you've got 3 seven years and in the entire ugly you've emigrate 11 leases. >> could a i interrupt. >> so one hundred leases doesn't make it 11 hundred tenants. >> we'll talk one in leases and talk tenants and so how many aents in the overall building. >> in the shell place building. >> in 2 henry adams >> probably about 61 tenants. okay >> how many on the first floor. >> about one hundred and 11. >> and okay. the first floor

is the only tenants or a lawrence leases that are going to maintain in place. >> no, this is a pleased occupancy 321 applications is requesting 2 hundred and 34 thousand feet you'll have showroom tenants in place friends in the hughes he's on multiple lease up to 5 spaces one represents 5 tenants and they'll be in this building through 2024 even though this designed tenant will be co-habitati co-habitating. >> and so your tech tenant do you have will you be signing a long term lease. >> it will be a 10 year lease.

>> okay. so ms. martha could you talk about the lease it's over one hundred lease and 61 tenants approximately >> approximately, yes. >> are the rents in the space commemorate with the current tenant space. >> no. >> how do we - >> for instance, you'll hear from some of the people today they don't want as itch square footage they're down sizings one tenant is down seeing from 8 to 5 thousand. >> what floor. >> when does this person's lease exterior. >> september 13, 2016.

>> a couple of years away. do you have other buildings to looked on this area >> supervisor kim. >> supervisor kim. >> i didn't put myself on the register i didn't hear the percentage of the building occupied. >> i thought i answered that. >> i didn't hear that. >> if you could speak into the microphone. >> for 2 heroin alzheimer's its 90 percent occupancy and tennessee percent vacancy for the next the occupancy is 80 percent vacancy of 20 there's an economic vacancy that further reduce those numbers. but that's a different topic.

>> you know, i want to hear from the members of the public i've certainly got a number of females in opposition to this landmark designation and there's a lot of concern from the existing tenant how their needs are going to be mediating met and their future is at stake this designation will allow you to go to the next step in terms of use i want to hear from other folks my initial concern we want to hammer out our comments with the existing tenant today before we move forward. that's a really important piece to this the landmark designation is before us but we're hearing very clearly if a lot of the attendants not only in our

building but about the incredible commercial market and the diversity for business occupants we have in san francisco there's a lot of concern about what this means for the neighborhood and the city. as much of that would be worked out and the board moving forward with the approval process i'll leave that and if we can open up to the members of the public i'll have no more comments >> calory one thing. so you've indicated that thought 50 tenants that are i guess there are 61 tenants so 50 other whether tomorrow or, you know, promptly or 10 years from now are going to have to move on you look at that and has there been an analysis of the square footage of the tenants that may want to downsize or may be able

to downsize vs. the 20 percent vacancy in the other building how many square feet i've heard from the tenants there's not nearly enough space in the other building and that means not everyone can go there are other displaces of employment in that building. i've heard from birthday representatives i forgot there's one hundred vacancy square feet of category in the area i don't have no more specifics has this analysis happened >> yes. we have stacking the 2 hundred and 45 square feet of conversion to office how this that will take is roughly a 7 year period with multiple phase.

this building is occupied today under any circumstances that's not simple to take the tenants from the tenth floor and replace them and i it's sprinkled. one space allocation need for the tenant that's the design tech partner but at the same time looks at the square footage requirement of cellist show rooms that contract and to figure out how we can make space for them in the galleria yes theirs available space we took a cross section on a 3 block radius and this is what we consider the core of the design district those buildings that are represented here are not

landmark buildings none of them are eligible based on the criteria. those buildings represent you, you know, almost 3 hundred thousand square feet of available pdr space so those show rooms that were not able to house in the galleria in the transition whether in the year 3, 5 or 7 it's hard inform have a crystal ball to talk about who will happen but as they continue to contract and, of course, we'll place them in the galleria that's consistent with the phasing plans required and look to the surrounding neighborhoods to make sure they find a home in the district whether it's larry wasser man's building over and over the 2 hundred kansas or all

the landlords in the area are relationships are very close with those landlords we've meeting met with a number of them to make sure they're aware there's good quality tenants that might need square footage and have a home for them >> the 3 hundred thousand there's a variety of pdr space that's a large warehouse i think that's a smaller number that's property not the 3 hundred thousand. >> that's the total aggregate area. >> do you know if the owners have property owners have said anything about are they going to be charging top of the market it's different now then before. >> it is and so we've tried to do on the graphic for ourselves

and also when we have this dialog it gives them a indicator of the residence those lrndz are requesting some cases yeah. their more than what the tenants are paying in our building we find a traditionally showcases that are 5 to 15 square feet maybe a thirty there's rage and that's at times commemorate or more expensive but similar quality it may not be ground floor space as opposed to second or third floor. what's the range of rents in this property on 2 henry adams i'm sure there's a rankle from month to month leases do you

know what the range is >> i'll defer to martha but we have tenants only paying things that are not rent up to tenants paying $30. >> we have tenants pga $60 if you include the 4050 cam depending on the building. >> per square feet. >> what my on an annual bases per square feet. >> thank you. colleagues any other questions >> noted for the project manager. >> so we'll now - open up to public comment will be two minutes i want to thank the

mercedes benz members of the public we've had quite an agenda so i'll call out names. (calling names). okay. mr. gallagher and good afternoon. i'm jim glal gesture he run antics in the henry

building i'm here we go to urge the committee to vote no on the expansion there's several places in the galleria that have not had their long-term leases instead of they've been business owner puts on thirty days nos several have been fearful to speak out publicly this is not so subtle this will begin the process of removing the pdr protects for the last 40 years the showcase building have been supporting the pdr jobs there's a network of designers and electricians and workers and several others all over the city those jobs provide above average pay for people that don't necessarily have college degrees

the pdr protections were to safeguard those and this is exactly the situation we're fatiguing this is a backdoor for the company to break down the pdr conversion and convert the 50 showroom buildings to tech spaces they have barrel survived the recession don't allow them to pull the rug out from under us the reason those buildings 0 could fit into all the grammatical rae is bugging bogus. it would mean the demise of san francisco good jones for many san franciscans

>> thank you very much. next speaker. and with we're will trying to provide the services to the extent the bay west can help to guarantee tenants will be relocated and the project will help maintain a vital showcase area with plenty of the pdr jobs that are important to maintain the diversity of economic uses both in our area we're

supportive of this project, however, you brought up some things about the mobility to move tenants and tenants to remain viable the o supports this project to the extent we're able to maintain the tenants uses within the space and tenants can be moved thank you very much. >> thank you. next speaker. . good evening. i'm jose gonzales an owner of the small minority business i'm part of morgan and company i've been through this once at 888 brandon we were promised and promised and evicted with no ceremony at all. i'm now finally getting back on my fiat through the revision through the move we don't have a

lease we're on a thirty day notice i can't trust them to move us the mass doesn't add up theirs not enough room you've indicated it doesn't make sense for us we need to stay together we're monthly minority businesses and female owned businesses this is a huge company from chicago that doesn't care about san francisco preserve the building but what about us the small tenant that can't get a long lease they will not help us. where will we go how can i hire two more people i want to hire in august if i don't know where i'm going to be how can i go to the bank and extend my line of credit i don't want to go to the

east bay i'm in our district. i plant trees i do everything i can to go ma this city work why are we going to be pushed out that has nothing to do with high interest design. >> thank you very much. next speaker. >> supervisors jim kelly i'm the historical consultant that wrote the nomination for the building. i feel like i'm at the wrong meeting because i understand the issues that are being discussed but i want to focus our attention you know the building itself on kwebl is qualified as a landmark both architecturally and historically one other point

i'm make in our research and in our physical safer of the building in preparing the nomination i'll have to say that the landlord the owners have been very good stewards of the building that's difficult to maintain >> thank you very much ms. walker. >> good afternoon supervisors. thank you for carrying on this meeting. it's somewhat like da shall have you we've had this before the city is beautiful place to live and work as we scale our skyline we see dozens and dozens of cranes building housing yet we

have a crisis part of what happened in the middle 80s in the dot.org calm bust to accommodate dot coming we give building owners expansions so they could build even under construction we needed them yesterday now the need for office space is encroaching on pdr. and we have gone through many of us sitting in the eastern neighborhoods meeting for decades to terminate how to protect those pdr jobs like mentioned the pdr the jobs across the mid connecting section that don't require multiple degrees this is the job lost we're experiencing it again

now. so what happens with this landmark it makes conversion to officer easier so i suggest that what is appropriate right now is praugz and asking the planning department what is the need for pdr certainly there's a lot of pdr spates it's going to stay empty when our asking spaces for pdr they have to contract there's a loopholes now i ask you to stop did madness and ask the planning department to do their job. thank you >> thank you, sir. >> supervisors mike pecuniary trades council i've been a long supporter of pdr under an

understanding it has two aspects one passenger door either produces something that produces the needs of the city or the other aspect is that it employes a imply collar wells fargo like supervisor kim's. this building whatever it's supposed pdr function if house that function right now and it may support that or enhance f it in the city i think it's telling in the planning department's description of the building that it did service the function at the beginning of the last density but a preforklift type of building. i think then upper left with choosing between biz businesses

that serves as one of the proponent testified high-end wealthy yours and businesses that are tech biz businesses that's not the kind of choice the board of supervisors makes they defend the uses that serve the physical uses of the city but the other sort of decision is a decision that belongs to the marketplace >> thank you. next speaker. >> i'm the owner on one of the