significance in the community in which they are located. of course, this legislation does not reference architectural features directly, but it does have the requirement in the application form which will be developed by the office of small business to demonstrate in some way significance in the community in which they are located. and one of the case studies in the report, the assets of community value program in london which enables citizens to nominate -- pub have actually been the most frequent type of place that has been nominated in that program. they are also required to demonstrate community significance. so, there are lots of great models in term of existing application forms youed in london and other cities that i think san francisco could draw from and what types of evidence are relevant in establishing community significance. >> i notice that, for example, there are quite a few cell

phone locations. i what just kind of curious as to how that -- >> let me just -- do a little bit of clarity. so, what we did -- just to kind of give you an idea, this is nothing definitive, we'll go into a little more detail. i just wanted to give you an idea based upon pulling together the data from sf data, the tax and treasurer's business registration. we did not delete or pull out anything that does not necessarily fit in one of these categories. so, they are defined, so, like if you're talking about cell phone, define -- in the legislation in terms of what types of business sectors will be part of this program. just to kind of give you an idea and to -- i think before i start making a decision on who is not in there and who is in there, i think it needs more

eyes than just me. so, the list that you have is just the class code 08, which kind of covers retail, restaurants, it doesn't cover manufacturers or other categories. but just to kind of give you an idea a to who might be there, we're going to have to scrub through the entire list because there are businesses that are misidentified in their classification on their registration form. >> so, you'll be refining -- [multiple voices] >> and dr. hudson is going to go a little bit more into how we're going to work on that. >> commissioner tour-sarkissian. >> i have a question about the transfer tax in the context of a sale, correct? >> yes. >> okay. that is the -- if a purchaser's

-- purchaser buys the building, then he or she would have a rebate if he or she keeps the business in question, okay? >> yes. >> now, is it not possible also to consider the rebate for an existing owner who would be willing to extend the lease beyond the initial period? i mean, is that something that you considered in your -- >> well, for an existing owner, of course, you're not going to have the immediate transfer tax from a recent transaction. >> yes. >> now, what we have also been investigating with the supervisor's office and the office of small business is the possibility of extending novack property tax abatement benefits to existing property owner that

house a legacy business. it's worth noting that some of the bars, for example, on our own list are also city landmark, places like twin peaks tavern or sam jordan's bar. certainly those properties can already qualify for mills act property tax relief. if you have a building that houses a legacy business that is owned by a third-party, i think a strong argument can be made for allowing the mills act to include a term that would require extension of the lease in order -- in exchange for extending, extending the lease ~. >> that's what i meant. that is something you're considering, correct? >> it's something the -- [multiple voices] >> pendling the legality of, the mills act is implemented pursuant to state enabling legislation in san francisco and i believe the city attorney is looking at whether or not

that type of term, a lease extension, is allowable under the state enabling legislation. me as an advocate, as an advocacy organization, i think an argument can be made certainly in the case of legacy businesses that are already city landmarks, that that should be an allowable term. >> so you would be in favor of that? >> absolutely. >> the other thing that i've noticed from your handout, quite an interesting handout, a to what other cities are doing. london is quite proactive about, about the protection. and as -- on page 3 of your handout, the community right to bid program places a six-month moratorium on any proposed sales of assets of community value. >> yes. >> now, is that something that was discussed with the city attorney a to whether these moratoriums could be placed? >> we have not discussed that and i don't believe that the

supervisor's office has discussed that either. our recommendation in the report is an incentives based approach rather than restrictions or moratoria. so, we included that example as well as -- an even more extreme example in pares where the city actually purchases the real estate and then leases it back to these businesses he to ensure their longevity and the diversity of uses he. so, we just included the full spectrum of what's out there. i do think there's -- you know, the london program is innovative and certainly the recent case of marcus brooks, something similar actually happened there where there wasn't an agreement to allow time for the community to come up with the funding to purchase the building. that was ultimately, of course, not successful. but -- >> and the community arts [speaker not understood] trust is specifically to secure space for art organizations, correct? >> art, arts and nonprofit

space. [multiple voices] >> and the mid-market? >> in mid-market, although caft is i understand looking at expanding its geographic boundaries. so, an example of a legacy business that might benefit from a caft type approach would be the rocksy theater which operates as a business is run by a nonprofit, is certainly a cornerstone of the mission that, you know, that is facing a lease renewal next year. where assistance with purchasing the building from a land trust and a combination of other types of [speaker not understood] might make a difference to making that transaction work. the cast is really a great innovative model we have here in san francisco and that's why we highlighted it. >> it's a good tool. >> yes. >> that's why you put it [speaker not understood]. >> [speaker not understood]. 1968.

i don't see any dates prior to 1968, any of these locations. and that's just -- [multiple voices] >> no, i think it's -- the date that we started the cut off -- we didn't include any businesses that were with after 1984. >> okay. but the oldest location start date, as far as i can tell, is 1968 and i know that some of these businesseses here [multiple voices] >> oh, that is because the tax and treasurer's office has, in term of their record keeping ~. >> just curious. >> their systems, i think that's when they transferred over to their current system. so, we made -- >> is the 30-year cut off, is that something that's been widely used elsewhere? what's the magic around 30 years? >> no, it's not. i think laura can illuminate this a little more as well.

in the stakeholder meeting we par participated in in craft thing legislation, i know in concert with the geller center, 30 years is obviously shorter than our 40 year for san francisco heritage's own criteria, is identified as an important kind of time when there is generational transfer from the first generation business founder to the next generation and it's often a time when these businesses face the most acute challenges. >> we operate on internet time now, so, 30 years is a long, long time. [laughter] >> and he said something that was i thought very key. these business he are thriving. they're doing great, but something comes up ~ where they're being forced to relocate and that business can go away. i've seen that in my own neighborhood and i just feel it's very important that we do something to maintain these businesses. so, i really, really like the work that you do. so, thank you. >> all right, well, thank you

very much for your consideration. >> and then, commissioners, in your binder before you get to the list of businesses -- laura, did you have something you wanted to add? >> i wanted to add on the 30-year issue as kind of the stakeholders looking at different things along the way. the change of, like, okay, how are we going to do [speaker not understood]? there were advocates for a little bit more than 30 years, or advocates for those that were less than 30 years. and, so, 30 years we felt was kind of at that transitional stage a little bit beyond the transition generally between the first generation business and the second generation business. but long enough to really color the feel of the neighborhood. there's no magic to this number, but we believed it what long enough -- business longevity to make an impact into really color the neighborhood. >> great. monica hudson, did you want to come up to say anything?

>> yes. >> come on up. >> i'd like to have dr. hudson kind of walk through the program that we're going to -- that she's outlined with her students to help our office create some of the criteria to dot research and analysis. >> the geller foundation, again, does fantastic work. so, thank you for everything that you do. >> thank you. good afternoon, chairs and fellow commissioners. i just wanted to briefly walk you through a proposal that we have made to the office of small business to really assist in moving forward with the implementation adoption modifications to the legislation. just very quickly, if you're not familiar with the university of san francisco's geller family business resource center, we were established in 1994. we are the oldest, as far as we know, university-based family business center. we primarily work with family

business he in three areas. similar to what you just heard from san francisco heritage, we promote family businesses he, really try and recognize them and heighten the profile of the impact of family business has on a community. two, we provide resources to family businesses, specifically around issues of succession and wealth management. and finally, we are very engaged in training the next generation of family business leaders. in our family business classes, we tend to find that between 80 and 90% of the students actually are children are family businesses. so, very high involvement of family business in our school's management program. what we have proposed after having consultation with supervisor campos's office and with the office of small business are five projects which we believe will allow for further refinement of the

legislation and/or information that ultimately has to come back to the commission in the end. so, let me just briefly talk to you about those projects. the first is a information campaign, and specifically it's the development of an info graphic once the legislation is put together. one of the things we know with the advent of info graphics is it is a very easy way to communicate to individuals information that otherwise we'd have to take a lot of words in some other mode to transmit. so, we are looking at trying to have a base info graphic together for you by december 9th where it will at least hit the key points of the legislation, talking about the benefits of the legislation. that info graphic we should have where there are language pieces or words translated into

mandarin and spanish for you. the second item that we are looking at is something that you just discussed, and that's this whole refinement of the numbers of businesses that categorize the way it is catalogued. we are specifically looking at having a student teamwork with the office of small business on the refinement of the information, the matrix. we have received the work that has already been done by the intern that is there. we're looking at additional information regarding gross receipts, generation of ownership, as well as other facilitate i have numbers, [speaker not understood] codes, et cetera, so there is a comprehensive index put together. the third project relates to legacy history information. and toward that end i'm going to be joined by a colleague who is a business historian who will be working with teams,

hopefully two teams, who will be looking at having and collecting some stories from some of the legacy family businesses. not just the family business owners, but also neighborhood residents and adjacent businesses, in essence, trying to assist in defining what you have said, what makes this legacy business so critical to a community. the first project we're looking at is what we call a legacy best practice project and it specifically is picking up on some of the work that is done -- was already done by san francisco heritage, but trying to expand that out in term of identification of international best practices. but we have a small twist in this particular category, looking at since we know that acquisition of a building is often something that triggers the need for a legacy business to move.

working with sba, utilizing and gathering information through their 504 acquisition program to actually see how that model coupled with maybe the land trust models, cast, and other models might be used to assist these businesses in being able to stay, perhaps because they own their facility. and then the last piece that we are interested in doing is furthering the analysis which was done by the legislative analyst, looking at commercial rents and putting together an inventory there that may be of informational assistance to the commission. so, those are the five projects that we worked through with the office. we are hopeful that we will have some progress on this by december 9th and you may wonder why that date is so important. it's the end of the college semester for the fall. but we are looking at knowing

that there are some thing that we can actually accomplish by december 9, but other thing which will actually need to occur and continue into the spring. and because we have a family business course that is what we call the practicum where students are actually out doing things, we believe that, in essence, at least three of these projects will be able to continue into the spring past whatever was accomplished by december 9th. so, that concludes the information that i wanted to very quickly share with you. i'm happy to respond to any questions you might have. >> commissioner dooley. >> i just wanted to add my great thanks also for getting this going. i'm seeing in my own neighborhood every day businesses leaving because they're forced out. these are valuable neighborhood assets, successful businesses that just simply can't pay, you

know, when their landlord quadruples their rent. and anything we can do in this area, i consider of great importance. >> well, we he want to thank you for the opportunity to actually work ~ with the city on this program. i just wanted to share with you that our students conducted a student-led study on the ordinance as it is being proposed to make sure that they understood it as a prelude to even starting these projects. one of the conclusionses of one of the students was, this is why i am here at this university because i'm actually starting to get my tuition worth by actually working on something that's real ~. so, i want to just say to you that this is a win/win from our perspective. it is in line with the university's mission, but it's also very clearly in line with the desires of our students to have a real concrete impact. so, thank you. >> great. any other questions?

okay, let's go to public comment now. do we have any members of the public who would like to make a comment on item number 6? please come on up. welcome. hi, my name is martha sanchez from [speaker not understood]. thank you for having me here. we're a five-generation family business from 1923. my grandfather came with a 20-pound iron tortilla press, determined to make a tortilla factory. so, we opened up on steiner street where we sold tortilla -- i didn't, but he sold tortillas wrapped in paper, string, and they were delivered in model-a cars. then in 1960 we moved to fillmore and pine where they opened a jazz club and it was on the same block of [speaker not understood] where they were very instrumental in the jazz scene from the fillmore -- in the fillmore.

up until -- around 1970, mid 1970s we moved to 24th street and i went to st. peter's after school. i'd have to go to work and [speaker not understood] customers standing on milk cartons or i would have to put labels on the containers for our products. around that time there was a tortilla war and there was a tortilla cartel -- [laughter] that's another story. so, we decided to get into the salsa business. [speaker not understood] was the very first to make salsa to be sold in supermarkets in the country. now we are the highest selling salsa in california based on kneel son reports. ~ we sell 5 to 1 the next business, all private label combined and there are just numerous statistics. so, we were the first to do that, but i also want to acknowledge other businesses in the mission that were the first. most of you may know that la

taqueria in the country and my father had the first burrito in the country. i was in buddha testimony and they were ~ budapest and they were supporting [speaker not understood]. voted the mission district as the number one neighborhood to live in. and i can safely say that san francisco is at least partially responsible for salsa replacing ketchup as the number one condiment. [laughter] that is how important we are in the city. there what another promotion you tattoo the logo, you get free lunch for life. people went bananas for t the media went crazy for it. we were in forbes magazine as the top five, cover story the

top five best marketing idea of the year. i have to mention, he we had about 75 people that got the tattoo, and nearly half of them were tourists. they wanted something to remember san francisco by and they wanted something permanent. so, again, san francisco is very much a part of all the creativity that comes here. but we are going through growing pains and we've been looking for over a year and a half for a new location. we're over by bayshore and we just have not been able to find anything. we keep getting a bid or the place is just not big enough. so, that's why i really wanted to speak on behalf of this because we desperately, in particular desperately need a place to move into it. ~ and this would be very, very helpful to us, so, thank you. >> thank you. i love your chips and salsa. >> and guacamole. >> welcome. that's a tough act to follow.

i'm [speaker not understood], san francisco merchants and neighborhood association and [speaker not understood] latino culture district. we're just here to really, you know, emphasize the importance of this legacy legislation. on 24th street we have 20 legacy businesses in 12 blocks. we have three buildings right now that are for sale and includes 13 businesses that are at risk of being displaced. and two of though 13 business he are our legacy businesseses on 24th street ~. this is another tool to be able to help these small businesses stay, especially this businesses that have been around 50 year. we have some that are been around 60 years, even more. casa sanchez, tamale parlor. i think it is important for us to expand it even further, asking the commission to look at other ways to be able to protect small businesses from being displaced, especially

around development on 16th street, development that's coming in that is going to displace three small businesses he and these are three family-type businesses. also, the 13 businesses that are at jeopardy, there are new businesses that have been established in the last two years. so, it's old and new. so, we have to look at different ways to really help stop this exodus of small businesses. the rents are too high. some developers are asking the particular business -- or offering them to come back, but it's not feasible, it's not realistic. it will take-two years for construction. these businesses have to go somewhere else. they're not going to be able to find another space. the rents are too high, and won't come back. so, i think it's something that we need to look at, to think about, and hopefully, you know, the commission can really engage and be active in helping stop this stem of eviction of small businesses he.

so, i hope that you really support this legislation and work with all of us to be able to stop them. thank you. >> thank you. >> thank you, eric. next speaker, please. welcome. good afternoon, commissioners. [speaker not understood]. we have been on the 24th street corridor for 42 years, for those 42 years we have been on a month-to-month rent lease. given all the changes in our community, this is something that we really need to check with them, we need the support of the city. we really support this legislation and we hope to count on you. [speaker not understood] has been one of those space that has helped create and shape the view of latino art on the national and international level. we have the [speaker not understood], [speaker not understood]. we have been instrumental in shaping this corridor and this city and we are a jewel and we

need your support. and it's many organizations like [speaker not understood] that are still facing that in our corridor. dance mission is in the same predicament. maybe they haven't been around for 30 years, but they're facing the small issues of small business and rent increases he. and we need to come together to really address this instability. every day that i drive by there, i think of marcus brooks store. if i see a sign on the door, i'm thinking, is that my 30-day notice? so, i really hope this is like a step in the right direction, that we can be at the table to provide more information, and to look at our history where we have to, you know, make it permanent. if it's not on 24th we're willing to look for somewhere else, but this has to be addressed immediately. it what devastating to he see the news last week that [speaker not understood] is closing, another sort of staple in mission. after what, 20 years they're going to shut their doors. so, i really beg you to look at this, to add the resource he to include us in the dialogue, and

anything we can do to support it we're here. so, thank you. >> thank you very much. next speaker, please. welcome. thank you, good afternoon, commissioner. my name is pete [speaker not understood]. i'm one of the co-owners of green apple books on clement street, been there since 1967. me and two other long-time employees bought the business from the original owner. i would also like to thank the geller foundation and san francisco heritage for developing this and to supervisor campos for initiating the measure. i support this on multiple levels. first as a small business owner. obviously it gives me hope and a potential opportunity. our lease is up in 2019 and i'm stressing out about it five years early. it will be our 52nd anniversary then. as a representative of the san francisco locally owned merchants association, i also support this measure. it helps to buildedth local economy. more monday is circulated in local economy when people shop at locally owned merchants as

opposed to the chains on the internet. it also keeps the diverse appeal businesses that tourists love and all the money that small businesses and locally opened businesses like mine make we respend in the local economy. finally, as a citizen, i see small and legacy business he donating to school auctions more than chain stores. i see them helping each other through networks like the small business network, the district merchants associations and i think this measure would keep san francisco much more interesting city instead of a solace town of chain stores. i do urge you not to take architectural significance into account. there are businesses that are in pretty mediocre looking buildings that are nonetheless integral to their communities. i think this is a great start. i would urge the city to do more still. but a a starting point, getting these businesses registered i think is a wonderful start. thank you for your time and go giants. [laughter] ~ as a >> thank you. next speaker, please.

good afternoon, commissioners. my name is de ray smith and i work with san francisco heritage. i'm actually here on behalf of greg johnson. he asked if i could read some comments from him. he's the owner, co-owner of marcus books. and he says, dear commissioners, [speaker not understood] to voice our support of the pro poed legacy business registry legislation which will strengthen our local policies to help preserve the city's long-time business he. marcus books greatly appreciates the support we received during a period of uncertainty. we are all in this together and respect others who have tirelessly devoted their time and energy in moving this piece of legislation along. supervisor campos, mark farrell and everyone else who has worked on this legislation deserves tremendous applause. without doubt if passed the new political legislation will help a host of legacy businesses including the [speaker not understood]. as legacy business owners and

native residents of san francisco, we promised the community we would fight injustice, keep our doors open at a long-term site and serve those concerned over the weakness of our current policy that govern historical designation of legacy businesses he. san francisco marcus book stores trial and tribulation to remain in place constitutes a strong argument that it's critical for city and county government agencies to adopt stronger legislation designed to keep legacy assets in place so that they may continue serving future generations of san francisco residents. in our case the building was foreclosed on and bought by investors who had no idea of the building and business significant history and meaning to the community. a trend is taking place in san francisco that allows investors to enrich their personal wealth by buying property and evicting residents who have worked there for years. unfortunately it's as though people acquiring -- people acquire amnesia and forget the relevant of these activities that take place within these buildings.