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 synjust. >> thank you very much. next speaker. >> hi, i'm greg scott pr i'm in support of project from a number of perspectives one of being a katrero residents and oath being an architect in the dog patch and a professor of architect at california college of the arts. i think for one of the many buildings i've seen put up foyer prospective landmarking this one seems worthy of that designation

in terms of it's substance and merits becoming designated a landmark. but the conversation of interest from what i understand some remaining pdr use on the ground floor level it what i've heard is part of the plan would be the best of both worlds in terms of this coming together with the new and old economy of all the tech companies penn truce seems well sited to add life let alone an economic injection to the district that is by no means public of those buildings in terms of who is able to go into them. i believe that that kind of thing that the building is considered a high-end showroom would be countered by the

popular interest and penn truce can co- exist in the building >> thank you. >> thank you. next speaker, please. >> i'm john i'm a tenant at 2 henry adams. been there for 24 years seen the changes in katrero you've heard a lot of points of view and a lot of lies. but quickly i'd like to say that penn truce is a good company this is not about penn truce they could be in india but coming to the design center they don't need phasing you've heard a lot of things about how great penn truce is i used them in my art gallery they're not the

issue it could be state farm insurance it is about pdr spaces the two things i urge you number one don't allow this landmark plan to go through it's a looking like loophole for greed and urging the supervisors and the land use commission varicose veins the board of supervisors get together to put a citywide plan to deal with the shrinking office spaces in san francisco that's happening in your district and your district it's happening all over san francisco. we needed a comprehensive displaying tenants from those two buildings is a travesty i

urge you to vote no on the landmark and urge you to public health together a commission to look at that thought san francisco >> thank you very much. next speaker. >> hi, i'm erica i'm an owner thank you business on 2 henry alexander's i wasn't prepared to talk but i fell expelled i moved to the building in january south of market on third street between mission and market i specifically moved to the building to be part of the design community knowing i'll be having 4 floors of businesses i was primarily a retail location and wanted to maintain my retail and this allowed me to do that.

i don't think that converting the building to office space cutting off the main entrance from the first floor is going to be beneficial at all i'm worried about remaining in the building i think it's going to turn into a ghost town. the retail public will not be visiting penn truce i have nothing no disagreement with penn truce but there are other buildings they could go to you looked other things there's no space to be had so to allotment tenants that's an combokt in the community. and certainly not in the rents we're paying so helping us find space won't help us with the years of increased rents we

inner incur and it would be difficult for those businesses to recoup and regain their businesses so i urge you to vote no. thank you. >> thank you. is there any additional public comment on item three or four? my apologies. >> i'm steve i've lived in the city 34 years and retired from the pacific bell spent years of commissions under 5 mayors i admire supervisor cohen your efforts to work with the mayor to protect pdr and the designer district was created in the 70s and is one of the great examples of pdr in the country that is an effort by a multiple billion

dollars real estate firm to bypass the local zoning laws to make a whole a lot of the money. i think it's hilarious the design of penn truce and how this will help. understand what we're talking about we're talking about recreation and parks department people for people that make furniture and sell it and fabricate and replace that with photos of what they were creating. someone said india it has no relationship to the strict it is a combination of groups coming possibility together and working as the previous lady talked about. i think you should reject this and perhaps send it back to the

landmarks board and ask them to hear from everyone they didn't hear from the first times around >> thank you. next speaker. >> i'm warren i'm a designer. i walked by those show rooms and into the show rooms on a daily basis. i'm only one designer i do over $10 million a year for those show rooms that's a lot of money. marketing was sort lying through her and she knows she was. some people when they get on the line they've got to go one way or another if space could be located in other buildings why doesn't penn truce relocate why

break up a community that's been here over thirty years there is no need for penn truce to be in this area they steal our ideas its will breaking up and busting up an industries that's been here a long time i urge you to take 20 pounds in one hand and now 5 pounds in another hand and walk 20 blocks there are a great great deal of of us over 35 it's difficult to walk one block one way and 3 blocks another way and

5 blocks another way willie brown where are you when we need you. don't do it >> next speaker >> good afternoon, supervisors steve i'm not here to speak on 2 henry adams but item 4. i apologize. i represent several owns of building in pdr g not pdr d. i'm asking you that consider one amendment to item 4 on page 3 line 21 right now line 21 says that excited uses of an existing uses bandit for 90 days you lose that use in the pdr use >> can you tell me what line.

>> hold only. >> on item 4. if i may take a moment i have an updated legislation i want to circulate to you. >> so hopefully, we'll resolve this issue simply that 90 days increased to one hundred and 80 days. the current period is one hundred and 80 days to make that consistent >> is there any additional public comment on item 3 or item 4? supervisor cohen how do you want to handle were you going to have the project sponsor come back up >> i'll be brief i want to clear up the leasing numbers at

times we refer to the design center as two buildings to be specific henry adams there's 77 leases in place and 31 are month to month. since our last hearing and subsequent to meeting with supervisor cohen we've been able to convert those to longer leases now have the 31 there's 15 remaining. the maximum displacement for the project with penn truce is a total of 8 tenants that represents less than 21 thousand square feet. as we continue to see contraction in the galleria more space will be made available in addition to those tenants there

are 5 tenants that have subsequential debt collection average 10 and a half thousand dollars in awe rears. we're going to pay for relocation costs to make sure they find a home in this district. i want to touch on briefly what is katrero boosters we agree the viability of this district is important to us. so with this project moving forward with its landmark and understanding the conditional use this project will be before you again. we plan on working specifically with each and every tenant with leases so conceptually those tenants find a home in this neighborhood. it's also important to note that after this conversion this

project that recommendation 80 percent office and 20 percent pdr this ground floor pdr is being preserved will be single-handly important to us. and i think we've i will strutted we've show the importance of this neighborhood through the long term and lastly i want to ask you to approve that landmark so we can engage this body as well as the community to work through with the tenants >> thank you. is there any additional public comment on them three or four seeing none,

public comment is closed supervisor cohen. thank you, everyone for coming out to the project sponsor thank you for your time and fort in reaching it out the tenant and the to the tenant and designers everyone this is part of the conversation i applaud you for getting this together quickly your autograph heard me and i've expressed concerns about the tenants not being part of the conversation. one of the - so there's a couple of things first to decouple the notion this is an item we're dealing with had to do with landmark designation has little to do with penn truce per say. you've heard in the public comment it can be any company. but i still think that there's still a significant amount of

confusion about what will happen with the tenants. the project sponsor mentioned 8 tenants total displacement lost i disagree with that, i think there will be more tenants lost and don't believe that the i believe that the market has con transacted die to the downturn of the economic placate but it's coming back the journals and perils have indicated this contraction that the project sponsor is describing happened across the country and the industry but has documented it's coming back and i believe that