people. it's a fun afternoon and you learn so many things. >> this is so much fun. i go to parts of the city that i don't come to. this will make the city a more susta. >> all right. well good morning to all of you seven hundred and 50 of you welcome to our annual san francisco structures forum i'm mar i'm the publish of san francisco business times i have someone i want you to meet this is our breaking news of this week i want you to meet corey wee bit beggar our new real estate resort he i've been talking to several of you so corey good job for the advanced

work you've gotten stories going now have you have a face call him and we consider you all sources this is corey we're happy to have him he's smart and curious again call corey real estate is an important beat to the san francisco business times back to welcoming all of you, we have a great program good morning and thank you for being here on behalf of our spokesperson mr. hampton we're going to hear from our mayor this morning and from a group of developers who will discuss the force and projects that are shaping san francisco they're to give us insight into current and coming challenges maybe things that have made the

headlines as early as today and faced by the ralph transforming city the challenges that are faced by the people like them that build and develop the projects that shape us we're going to dove into how san francisco is dealing with the friction and the conflicts of this growing how we're dealing with an inadequate affordable housing and space with the skyrocketing costs are driving companies and families out of san francisco and how is this city dealing with the backlash against the tech companies that are flooul the growth and the developers that are in some ways preventing from it as the developer continue to transform this city they gravel with old foes with old and new

limitations and with the need for sound planning to match the growth so those of you who have been coming to the structures our plan today to have a little bit less of a presentation you know the show-and-tell and more of a conversation with the panel of developers they each have some great things to show you and specific areas they're developing. >> put that in context and we're going to have a great conversation we'll invite you to send up our questions before we get to our discussion we'll hear from the mayor he'll look at how to build affordability into the equation thank you to our sponsors they come every year we we appreciate

them thank you to shepard mullan we know that his lawyers have complex actions and hear from joe real estate partner in a few moments. >> thank you to our sponsors ac could systems and also right in front of me, of course, eco designs hundred and 50 types of projects including the iconic projects like san francisco general hospital the mission bay hospital of ucsf benny hoff and the exploratorium we it thank echo for being here and defining witty wanting thank you and

halfway has designed the interiors from the san francisco to the silicon valley they're doing our new office space so such iconic so thank you to halfway dunn witness and the architectures with the health care education this group offers steps if all disciplines and how 80 today's employees want to with work work and shift those biefrz into positive clients our table sponsors if you look at the screen we appreciated they're being part of the program too i want to thank our partnering associations of san francisco with mark and s i o and if you are i also want to thank the san francisco chamber

and dennis cunningham from the center of economic development thanks to all the groups from by the name of i promised i would mention an important initiative even with the development boom there's a challenge it is a real estate talent crutch with baby boomers retiring and many professionals not filling the jobs and they're they've developed an initiative they want to involve you you've teamed up with san francisco state university with the real estate and many groups are joining by the name of it's called create i real estate alliance for tomorrow's employees if you want to get involved get in touch with mark it's a really great effort to

get the workforce in this competitive investments you'll see our sponsor logos on the edition i hope you've read it published a little bit easily on june 27th copies here today hopefully, you've seen that you've subscribed to the business times and we do it in french and a special savings offered today, if you want to check with with the folks we have a real estate commercial real estate newsletter that comes out twice a week we do it 23450u7ks with the silicon valley's business journal that's free if you wanted to sign up for that and we're with tweeting this morning where's crystal it's on the screen okay. so

join in the conversation now to open our program set the stage for our personalities please welcome the folks if shepard mullan. >> there you are shep (clapping.) >> thank you, mary and well, on behalf of the shepard milling listens it is one of the most farther events of the year it confuses an opportunity to look at what's going in the city and industry but more than it give us an opportunity to step back and consider how real estate development is shaping the city and how people of the city and the social dynamics they're creating and it's constantly

changing and shaping our economic there's a policy geek in all of us this is a perfect opportunity to look at it so the san francisco best estimates thank you for preparing this opportunity to us every year and to our other sponsors and speakers for making it possible i was thinking about what to say today, i of the remembering that 7 or so years ago i made the observation that the population center of san francisco was clearly moving south and east at this point the main drivers were mission bay, hunters point shipyard, yes. the new transbay terminal was on the books and in the works many vacant caltrain lots but i don't know that any

of us expected the kind of explosion of development we're now seeing driven in large part by the tech industry by their desire to be in the city to be a part of this city and in the real estate needs both the residential and office and other that's generating i have to laugh we've come a long way from the point in time we were trying to lure office development south of market but offering development rights nobody has talked about that concept in a long time more recently i've made the objection that bicycles are part of our world to developers need to consider bicycle parking in

residential and office structures it is rapidly bam more than that that's not a fad it's going away but very much a part of urban culture and planning for bicycles and pedestrian safety is a part of our streetscapes and very much part of what our departments are dealing with we see evidences of the continuing changes around us some of them happening far more quickly and it's a very petty environment but mary pointed out it brings a number of fundamental questions primary among those is how do we meet the housing needs of an economically diverse population and maintain it with the diverse population and accommodate new ways even if doing business

airbnb, lift uber who knows what's next in terms of new registration and a w where do we draw the lines on the new registration those are a few of the challenges all good challenges facing the city i looked at it to to what the mayor and distinguished panel has to say and i know you do too (clapping.) thank you gene and thanks to shepard mullan we are also delighted to have mayor ed lee with us to guide us with this violation vision and look at the priorities and outline some of the solutions in the city he's been proud of the thirty i lost track of the cranes in the air

and the innovation hub of san francisco they're concerned, of course, about housing and what we can do to keep our economy vibrate i've seen the discussion that is up for this morning we love you ma mayor ed lee e mayor ed lee so welcome and thank you for being with us mayor ed lee (clapping.) thank you, mary and thank you to the san francisco business times for the invitation to speak about the city we all love you i was asked here this morning to talk about what i've been thinking about late i've been thinking about a lot of things and issues in the city and so some of the issues i want to share you with this morning first of all, god help those

gientsz they're already talking about what is magneticallyly possible i thought with the home run with the boom gardens let's give month guarantee you do not to the gardens that's been on my mind i saw steven curry and graduating congratulated them for bringing home the basketball cup and thrnd ritual for usa home for usa and the riders cup that's what i've been thinking about that's it mary thank you very much (laughter) you've asked me to talk about the issues of the city and affordability let me first of all, point out and is thank you if you want to talk about affordability it's

easy to understand look at the men and women who are serving you this morning in their excellent service they'll tell you what affordability champion it in san francisco. >> for serving us this morning (clapping). you know when i took office i pledged that san francisco would remain the city for the one hundred percent and since this time i've protruded an affordability agenda affordability we'll talk about housing it is not just housing but affordability is good jobs and good education system a low cost way of moving around our city with a strong economy we can definitely help those in need so housing, jobs, education, and transportation

are all connected in our economy when we lost strength pursuant to suffers that's it let's start with jobs i came into this office where i started in 2011 many of you know unemployment rate was double dignity now 4 percent our city employees more people in this time then in the history we've made progress in the city since the recession job growth is occurring for example, in our technology seethes, of course, you all know that over 23 thousand jobs since i took office have been created by the tech sector and that tech multiplied letter is true it's responsible for an additional 52

thousand jobs since 2010 we've added jobs and targeted sector like health care and hospitality and construction and we have, of course, seen a birth in manufacturing it's a model for the rest of the country and today, we have more than 36 thousand industrial jobs in our city and those local manufacturing are providing jobs for low income and moderate families in the city, of course, with all our help we're seeing an unprecedented demand in the marketplace 82 percent of the office space is all right. preleased that's an incredible amount 82 percent and even with 23 large office developments that totals

11 million square feet of office space that's not enough i i know that many of you here have prop m on our minds for the first time since 1980 we've got more demand to build office space then under the prop m for companies to relocate here is a good thing but one of the consequences for the office space is that rents are up and so far there's so far up from nonprofits and other small businesses their finding it hard to keep a footed hold in the city that's why i need our help for a fair and practical solution to help those vitality organizations to stay here where they belong we need to be thoughtful about our approach to

prop m we'll begin to look at the office space we've lost in the past years we're lost some office space to conversion something in between a million to 3 million square feet so if we're going to be fair about this we ought to begin with a fairness question i'm looking forward to hearing from our planning commission i know our director is here he's going to be available to talk about prop m but we are carefully looking at all the issues leading up to it but most importantly particularly with you in this room that are great business people we have to have a great conversation with the whole city about prop m housing observing to keep jobs coming here we've got to talk about

housing and every growing company from manufacturing to tech we need more housing to support the few range of the workforce and for the growing workforce to sustain our economic growth well into the future you know we've seen people returning to city and counties cities nationwide when all the jobs were going to the suburbia we're a great beautiful urban environmentalist a vibrant community and diverse groups and we're going to have more housing demands we're naurg to meet the demand because we didn't do the rings in the past and pent-up demand means higher prices right

now, if you imagine those folks in the market a 2 bedroom apartment can't rent for less than $4,000 a month that's clearly not affordable and clearly we need to increasing that supply to meet it and bring down the high confidence in june i made a pledge to create thirty thousand new units by 2020 and at least a third 10 thousand of the units to be permanently affordable to low income families and oath 5 thousand to be within reach of middle-income families between january and june of this year we produced for homes than all of 2013 by the way, 2013 was not a

bad year a good year for building affordable housing we'll continue this process and our pipeline is dramatic just think we have over 50 thousand residential unit at some stage of development 25 thousand of osmosis likely con online before 2020 and have over 10 thousand under construction or nearly to start sea 9 thousand units at some stage of building and approvals and another almost 6 thousand units master plan in areas like park merced and the shipyard that will con online by 2020 the city is funding projects like this we've completed seven hundred affordable homes and another 65

open soon there are a lot of people in the room that helps to meet the grave housing we're delivering affordable housing on site and off sight and in creative ways for example, month mesoso eric is providing 32 bedroom units at selma and after 28 happen at that time, in ocean view habitat was partnered to nearly double all their affordable units and bryan spear has created an off site project on market street this has challenged my office to think more creatively to help meet our goals we're making progress

also on the pledge i made to fix public housing earlier this year we welcomed families to one hundred and 7 new high quality homes in hunter's view they'll build over one hundred and 50 units and mrs. affordable housing and market rate homes and continue with alice griffith and sunnyvale to replace those distressed housing units with mixed use homes in addition to our sustainable editions we're addressing the urban capital needs across the portfolio under a new hud program called rental assistance demonstration we call rad and under rad the city will rehabilitate or preserve some 3

thousand 5 hundred units of important stock and learning the funds to deliver more and by the way, if you've read the paper we're trying to take care of our homeless the veterans yesterday we announced the opening of 250 kearny streets one hundred and 50 unit dedicated to our chronic homeless in the next two years we're going to end chronic homelessness for our veterans how about that for fleet week and doing that with great partnering (clapping) not just the veteran vouchers but having our tech agencies to help fund and provide fortunes for the veterans i've emigrate sf city and airbnb they're coming in and putting in the furniture on kearny street today, i want to focus on two of

our major growth areas transbay and the waterfront at transbay center we've been able to build a brand new inclusive neighborhood 35 percent of the housing will be affordable to very low and moderate income homes one thousand 2 hundred homes in that area by 2020 and even though transbay is not a housing focused plan together with roipt this will accommodate 8 house homes by 2040 and, of course, it's workforce will troid provide 35 percent of our employment and the southern waterfront is another place with changes 22 percent of our

residential growth, thirty percent of our jobs, and 6 hundred and 74 acres of new open space will be from the central and southern waterfront mission bay will complete one thousand 3 hundred and 40 residential unit this year with over 20th century 2 thousand more in the coming years that's not only exciting news to the neighborhood there's more exciting news for that particularly areas the golden gate warriors are coming home to san francisco the san francisco giants are working to entitle new homes and offices and retail space to serve mission bay and this november voters will have an opportunity to move pier 70s development forward and south of pier 70 the energy company is

4r50r9d to a power site and build inc. is working to develop another plan linked to open space along the bay and i and all of this new development will enter sect with the hunters point shipyard and candle stick point we'll added over 12 though new homes within reach of our working families so i told you it's not just housing housing is the only thing that working families need it's not the only thing if he wanted families to say and biz businesses to come we need to work on the public school system we can possible have we have one of the top performing urban if not in the nation, we need to continue our

investment that's why this november we're asking san franciscan to consider renewal of two incredible resources the children's fund and the richmond fund by bringing those two funds together we'll drive a children's agenda for the city and by the way, it's great in news when businesses step up like benny hoff with their contribution to the any idea and sf and companies taking a one year pledge of allegiance to currently all our schools in the city and county of san francisco to make sure that no teacher and principle has to reach into their pocketed to buy school supplies for the kids and transportation too is a key factor of affordability that's

why we were making tricks we have traffic projects if you're neighborhood and add some 10 miles of new and improved bicycling bike lanes and 50 additional miles by 2018 we proved our bike share program 2 thousand san franciscans members plus and short term memberships we day viewed the bike progress we should be able to do this not only in san francisco but regionally and construction is well underway from the spa and it's on time and within budget contrary to you all the negative media that we've received this is going very, very well and that central subway will definitely reduce the traffic times and increase ridership