businesses were coming back and their businesses were booming is there an interest in renegotiate. >> in terms of further vavnz we're sooepg tenant that are contracting so for example, a number of tenants that were able to extend leases to there will be some we'll not be able to but part to 0 pay and hire a broker so they can stay here he understand the vitality of the district. >> all right. mr. chair if you guys don't have questions we can go to public comment. >> the relocation passage can

you describe that what you're offering to the tenants you're not proposing to henry adams what exactly are you going to be proposing to do for them. >> maybe we can talk about that and break it specifically apart. the passage essentially is how far u roughly $3 million of relocation costs for building out spaces for the tenants and relocating into the gallery our o those tenants we're not able to have in the gallery for a long term basis they have lease expenses that are being put in place or hiring and paying for a commercial real estate broker that's not supported by

brokerage it, it's a small subset of yours we have engaging a broker to go out to the landlords and see did pdr spaces we'll pay for their relocation and moving expenses and pay for the commissions that's in addition to what we're offering two months of rent providing they stay in the neighborhood >> how realistic is that obviously you don't control other property owners in terms of they're willingness to lease in terms of the rents they'll charge and so on and so forth how confident are you they'll find other spaces. >> i'm confident we have spaces

that vary from tenant to tenant some tenant are not paying rents only expenses so there's on a case by case basis the situations will vary but there's good quality space within here i'm convinced that the tenants that want to stay they will be allowed and others contracting or closing their businessess down. >> i personally have met with two of the building owners it their representatives are below $2 per rent space area we're comparable. >> do very know what's going on here. >> yes. yes. >> have they said anything about getting priorities tenants in terms of getting into their buildings? are they going to be 16 players

here or something else >> it depended on the tenant like in a shopping center not every product or store fits their looking forward to having more tenants in their building but selective about it. >> why is there signature square footage available so close i know that the pdr zoning is a complicated thing why is this a desireable area why is it. >> this neighborhood is distinctly different there's pdr units that come up about the creation of now pdr space this is very specifically specific to

show rooms and wholesale so there are many traditionally pdr makers bus that's a much more industrial fabric they're not housed here as martha was saying most of the rents are in the 2 and a half to 3 and a half dollar range this recession occupied with the age of the intersect has retracted this industry that's one of the reasons there's so much vacancy in the neighborhood martha has reached out and touched the neighbors we've met with those landlords on multiple occasions and there's good quality tenants that maybe dislocated as part of

the project that should be able to find good homes in the adjacent properties we're using our o those relationships to make sure those tenants can find a home in their neighborhood. >> thank you so public comment. >> public comment yeah. >> great we're going to open open this up for public comment (calling names) sorry if i mispronounce that. >> i'd like to have a card. >> the cards are over there (calling names)

mr. gallagher you can come on up. >> good afternoon. i'm jim gallagher i'm here representing many of the employees and designers that were at the meeting they were not available to be here. i'm here to ask the members of the committee to vote no on henry adams street this is a shining example of what pdr space should be it's 90 percent full of viable businesses i ask that the historical committee stop the rush to convert the pdr space throughout the city to the landmark loophole conversions were we're going under 17 percent in my major city mayor ed lee and you supervisor cohen recognized this to stressing the

expansion and growth of the manufacturing and light sector unquote why would you consider giving up pdr space the pdr l were to provide assistance for people that needed financial saunsz it was showcased by the previous owners they collect $3 million a year from the current tenants this is 90 percent vacancy this is you can't what a pdr building should look like the pdr owners are looking to make a profit knowing it was a pdr building and converting it into office space we have to close this loophole please don't let this conversion

happen thank you very much for your time >> (clapping) >> we have a board rule that we don't allow clapping boeing and cheering it disrecipients the hearing if you want to do a thumps up and down or jazz fingers or whatever so. >> next speaker >> good afternoon. i live in the neighborhood right down the street from the showcase i'm a member of dog patch katrero hill association i work in the neighborhood and i really feel if we've been negatively portrayed the many media has misrepresented us there be great for your neighborhood. we've lost great educates e

assets to other cities ii ask the board not to lose another one >> to the. >> next speaker. >> i'll call the last names (calling names) go ahead. >> i'm a tenant in 2 henry adams the designer center t is no the commercial resident the loss will effect the entire city it provides a diversity of blue and white collar jobs. it's an indicative network of jobs throughout san francisco the up holders and cabinet makers and metal workers they depend on the service and pdr jobs are so important they

provide above average pay for ethnic backgrounds that don't necessarily have a college degree we need great job diversity this this city please vote no on the landmark decision as a burning we need our help thank you very much >> thank you very much. next speaker. . >> thank you good afternoon, supervisors i'm rudy corpus i operator a violence prevention program that's been providing services all over the city for 20 years now. i'm here in support of pen trust to move forward this project i'm only going to speak prosecute i hear heart we have a program

called silence to violence 250 kids come out to support us. i believe that their genuine about building their relationship with them we looking forward to building with them we look forward to our moving forward on this i think it's important that grandmothers organizations and tech organizations combine and start working together we've been working citizen will i and i look forward to worker with them >> how long has your relationship been with penitentiaries. >> about a month and a half. >> thank you. next speaker. >> good afternoon, supervisors i'm the president of the katrero biz i want to restate our position we sent a letter to the

committee on july 14th we have sympathy to the pdr environment in the requests by two henry adams that said we even more are protective and sympathetic as a result we'll support in if they can guarantee another locations in the showcase area and to help provide the relocation expenses necessary to keep the businesses viable we don't believe that the permit uses should result in the reduction of pdr businesses in the area today. with respect to penitentiaries as a tenant we don't see that the benefit of the existing show place tenants of those use is

enhanced by proximity of the interests whether penn tries is in that area or not it's an encroachments into the easier this creep is not able to be you think dunn we support of the diversity there the microscopes of the pdr spaces while there's not a loss of pdr if 2 henry adams is landmarked it might be become a tool to replace the pdrs and this is rhine in opposition as a salt we support the protection of the further e restoration of our stock of pdr in the city >> thank you. >> thank you. next speaker. . yeah, you can come up >> i'm sorry, i didn't realized

you want us to - you the former mayor can come up. >> i'm not a candidate but have a history with this project when i was young assemblyman what i could stand in lines i helped henry adams and clara create them help have their provision of a historic center for this kind of work it's been fulfilled. what i sense is a commercial version of an ellis act you can't use the residential form so we're going to use a loophole to ellis act some 0 people how by simply saying there's an

opportunity to put office space this has an artistic design name and bring in high tech workers they should be here but not at this site we're replacing people working in blue and white collar jobs that are distributed throughout the area as reholders and this is not a district issue but a city issue of a graphic icon that's threatened by another ellis act kill the bill and come back and fix it and maybe there's something to talk about but we shouldn't be using high tech ellis act techniques to get rid of jobs where they're making money and what we're seeing here is a multi billion dollars trust fund using a local

manager to do their dirty work >> thank you. >> thank you. next speaker. >> hi, i'm roberta 0 i own a small tech company in katrero hill i transmissions into tech and oppose the henry adams this is not about landmark but to mislead this is a flash in the pan and here today, we're seeing that now the design history is some of the oldest lighting they house their product based in the design showroom so if we e vehicle those tenants the people

in phone call that have minority owned businesses and lgbt businesses and based on conversation the america institute of aeblthsdz and the design association are reporting increased europeans yes, the recession hit us hard but the on shoring is jobs being brought back to the united states from asia we're not going to have a place to have is a business without the pdr. we sent out a petition and within 7 days we've received several hundreds of subscribes one lady said we can't do everything on line and we ate at

fine hotels and building in changing the status is a huge mistake for the designers and the city if someone from ohio can recognition that >> you said elaine san ducky. >> offering elaine from san duck can i ohio. >> thank you very much. next speaker. >> thank you very much for this i'm nancy i'm an tenant on henry adams i was in another building that was converted from pdr space and excuse me. offices moved in it's taken me two 98 to recover my business from that move one of the things we need to remember when i displace people and they scatter

the same customers don't continue to come so i'm afraid if we're moved again and all those people we won't recover that loss maybe ever but not for quite a bit of time. if we go under the freeway that's dangerous abuser the homeless encampments and our customers don't like to go there there this is not a reasonable situation to be put into. i don't support the landmark status as it is if we could look at closing the loophole it will be in our best interests. thank you >> thank you very much. next speaker. . hi, i'm lisa i'm a resident of

katrero hill a businesses that owner in dog patch and an architect i work with tenants of the building at 2 henry adams as american people architect. i encourage this board to vote in favor of the project i think that the neighborhood is changing we can potentially slow it's progress but also not be shortsighted in the katrero neighborhood given the rare opportunity working with a design oriented business that supports the community and the work in this place it's an unusual coalition of things coming together i support the effort i want to mention i work in dog patch and go under that freeway that's not a dangerous

place and what upstairs to henry adams i'm not familiar with the up hoerltd of the place it a high showroom for conversations thank you very much. >> thank you. next speaker. . good afternoon brooks solomon with the urban academy. i feel compelled to speak on behalf of the boys at the academy that is a land use issue san francisco also has been a forward thinking play the resolution to this issue should be a complimentary strategy not

a replacement strategy. show rooms are a shrinking sector i mean with the absolute lowest density of employment and it's tech today and this project is a balance, if you will, between accident two worlds and offers co- location of tech showroom and approval provides a channel for katrero hill actually district 10 to e evolve with tomorrow our boys are most severely impacted by the digital divide we've been fortunate to work with by the time at that and penitentiaries that's demonstrated their alignment with itself community and offer a mechanism for combrpt that our

boys about be able to cal capitalize in employment and education. thank you >> thank you. >> thank you. next speaker. >> i'm rich steven a 27 year tenant of show place we occupant about 38 square feet our lease is through june of 2016 i'm here to speak in support of the project i believe it will bring jobs to the area and bring jobs to the people of our company many are skilled laborers. more than half of our people live in san francisco and the vitality will be the best interests of bringing change to the design district i realize that came in contact is

uncomfortable and i embrace it as the best opportunity for the design center going forward i'm here to support it as a member of the show place thank you >> thank you. next speaker. . thank you, supervisors i'm a tenant in the subject building. i want to say the facts 7 years ago our business operated in the san francisco furniture mart it was converted to offices and once a pdr building is home to twitter. other filipinos had similar experiences during the conditions many businesses fold and in san francisco more than 80 percent of those businesses went out of the business.

the same thank will happen in the office conversion is underway. the san francisco had the lowest conversions but it's already a fragile pdr economy. what the landmark designation know our businesses are under seize you can't operate with this level of risk extend over a period of time. uncertainty by itself will eventually force a undesirable outcome in the 090 percent occupied revenue for $10 million a year the design center brings a compliment to each other and it's hard to break that system that may not recover and as

lawmakers you'll keep in mind the true intent of the labored and i urge you to vote no >> thank you very much. next speaker. . good afternoon. i've been a tenant in the showcase building for 15 years now i hold to my comments i'm in favor of this project. i'm confident that it will revitalizes the design district. our describing industry is changing and the recession on the web just about do us in when the energy is starting to die in the building people don't feel good it's in the showcase building and the related tech business will wake us up and

make us feel alive and the owners the buildings will realize else additional income and it will be allowed to keep the design center on home furnishings it's happening in the marketing areas in chicago it is down to - they're still there are only the building is 95 percent rented and mothering role is the tenant and the life is returning the high design community is recognizing the invincible and this property promises >> how long has mothering role been the tenant. >> the deal was struck about two years ago the other tenant that is large is i don't even

know the last part it is called fish something to another high tech firm. >> thank you. thank you very much. next speaker. >> hello, i'm crista i own a coopering design consulting i'm a tenant in the galleria building and i'm partnering with penn truce on this and bringing in a technology company that's focused on design it brings new energy i think it changes the way we're able to community with interior design includes many of my includes work with a journeying generation of interior designers they start their design interests on pep

truce it's no substitute for the brick and mortar it's definitely the first area that people start to do the research and since 2008 people are starting from the consumer end rather than the designer end pre2008 it was driven by the designers they walked around and did concepting but now by the consumer on the web it helps us to influence the design tech the design tech has shown interest and having penn truce in the building has given us influence and it's a nice syn