. >> welcome to the smraul business commission meeting on monday, january 26. it is 2.09 and we are starting the commission meeting. this meeting is televised live and we want to thank sfgov tv for televising the meeting. please for the public turn off all cell phone and pagers. item no. 1 is roll call to order. commissioner adams, here. commissioner dooley here. commissioner dwight, here. commissioner ortiz-cartagena said that he would be running a little late. commissioner yee-riley, here. commissioner

tour-sarkissian, here. and commission monetta white has an excused absence. . >> item no. 2 is general public comment. this allows members of the public to comment generally on matters within the commissionary purview and suggest new agenda items for the commission's future consideration. >> do we have any members of the public who would like to make a comment on items that are not on today's agenda? seeing none, public comment is closed. next item, please. >> item no. 3 is introduction to the new small business development director angel cardoz and we have him here today. >> welcome. >> first off let me say thank you for allocating the time and the invitation for me to introduce myself. my name is angel cardoz and as of jar

january 5th i am the new director for the san francisco small business development center. if you are not familiar with the program, the program is dined to help entrepreneurs both start and expand businesses by providing one on one consulting and business training. business training ranges from marketing, book keeping, strategic development and actually currently we're offering a restaurant series focused around helping entrepreneurs start their own restaurant or expand it. the one on one consulting ranges from access to capital, developing pro formas, business plans or currently working with a list of 8 specialized consultants that offer these services and waiting on two more so hopefully we'll have 10 total consultants soon to be offering services to small business owners.

the program is partially funded by the small business administration and currently is a program of the office of economic and work force development. currently my supervisor is joaquin torrez and i'm excited to be here. just to give you a little bit about my background, i have been in small business development for 10 years. i owned my own business, helped my family start our own business. after that i started doing business consulting and the last 3 years i served as director of the coachella vaef womenase center. that gives you a little bit about my back grupbld. i'm excited to be here, i feel that san francisco is the ecosystem for entrepreneurial development based on the number of

programs, the support within the city, the university surrounding us and what we're already doing for small business owners. so i'm excited to be here i've been working with the office of small business, i am currently housed in the office of small business and i have been working closely with regina, martha and nagar and bruce to support, i feel it is strategickally good hoer horizontal integration that can add value to small business owners. >> commissioner white. >> congratulations on your new role. are the services you provide via these consultants pro bono or at a reduced rate? >> the one on one consulting

is absolutely free. there is no cost to small business owners, that falls within our budget. >> are the individuals providing those services being paid or does it fall within --. >> those individuals are being paid within our contract. >> sounds like a great program. >> any other -- commissioner yee riley. >> does your service include different languages? >> yes we are offering services in english, spanish, mandarin and cantonese. and it is based on the individual need. if we know there's a specific need within a language we will make sure to match the small business owners with that consultant. >> all right, thank you. >> welcome. >> thank you. thank you. it is great to be here. i'm excited. i think that there's plenty of opportunity and i'm glad to be a part of the team. >> one last question how many staff members are there?

>> staff members, currently there's one, we're working on -- amy. but total consultants we have 10 and we're working to bring one additional person on board soon. >> good luck with that. >> i'd like to add that i'm excited that we have the opportunity to have angel housed at osb he's just getting here, the lay of the land, meeting everybody, meeting the consultants he's working with and we're going to be working out our internal process for cross-referrals but sbdc is managing our program out of the office of economic and work force development and as we move into developing the legacy program the sbdc may be something we incorporate that as well. we have worked closely with sbdc with our business counseling so it's

exciting for us to have it a little more integrated. >> angel, are you an employee of sfgov >> yes, i am. >> but you are going to be housed in your office? >> well, it's all fluid. if you recall i think it was december of 2013 the commission passed a resolution encouraging, you know, the city to go, to apply for the grant program. >> right. >> so oewd manages the grant for hosting the sbdc, but since it's dealing with direct client services and we have a little bit of space available right now it makes a little more sense to have angel working with us, housed with us. so as with these multiple serve support systems we're working together and, you know, as best we can to provide -- we're working together in a very sort

of fluid manner. >> uh-huh. >> to provide services. >> great. >> commissioner tour-sarkissian. >> i have a question for you about the one on one consulting, can you describe quickly what it entails, how many hours, a synopsis. >> the process you just have to go to our web site or give us a call. our web site is sfsbdc.org to fill out an application, to be one of our clients. after that we set up a one on one meeting to talk and identify your specific needs and assess what those needs are. those needs might be access to capital, trying to obtain financing for your business, to expand your business, it might be marketing, book keeping services, there's a range of different services we offer. once we make the assessment and identify what the area of

need is i coordinate the connection between the small business owner and the advisor to support this need. it might range, depending on the specific problem to solve, we develop a scope of work where we identify the action items we're going to do to accomplish the business accomplish that next step. on average these projects, these plans, tend to take no more than 8 hours but in the event that we do go over 8 hours, that's absolutely okay as long as the business is moving forward and growing. >> these meetings take place in your offices or on site? >> we currently are offering the one on one consulting in the small business administration office. however, we have identified a location in room, in the third floor to have these private one

on one consulting sessions. >> thank you. >> i wanted to welcome you also. are you ready to roll now? we can start referring folks? >> absolutely. we're ready to go, the lines are open and we're ready to start working with the small business owners. >> great. >> thank you. >> next item. >> next item is to update and discussion on osb's preparation for the legacy business program. so commissioners, i thought since we have a light agenda this might be a good opportunity just to have some open-ended discussion about what's ahead of us. at the december 8th meeting we had some presentations from professor isabell at usf about considerations and from the students. i have re-included some of that information, i have re-included that

information into your packet. so to give you a bit of background, so the legislation has not officially gone through committee so it will be soon. some discussion that we are having and consideration that we are having is to just move forward the registry component of the legislation and not move forward with the tax credits for the transfer tax. there's discussion both with supervisor campos' offer and others to see if we might develop more carrots and want to explore that and also explore some other things that may need to be legislated. but there's no reason why we can't carry forward with just

doing the registry. with the registry, though, that does mean that there will still be the requirement for our office to do a survey and to develop some programs, whether it be a marketing-based program that businesses can utilize a designation that they are a legacy business to help, you know, icon on their web site at their business, and then also if there are legacy businesses that we are -- that may need some support either utilizing usf family legacy business support work helping families transition from one generation to the next and running the business or programs that might help businesses where the employees might want to -- such as green

apple books where the owner retired and the employs bought the business from the owner. so developing some of those programs and that's why with the sbdc we could they would be helpful in helping us construct some of those programs. that said with the registry program, there will be some criteria and application. in the legislation supervisor campos' intent is really around small legacy businesses in our neighborhood corridors so this legislation doesn't specifically state that at this particular point in time, but it does state that in terms of business categories it's a bar, restaurant, retail store, art space, performance venue or business primarily engaged in

production, distribution and repair activities as described in the planning code. but there are other criteria where it says the business has contributed to the neighborhood history or identify of participation in the neighborhood or community and the business is committed to maintaining the physical features and traditions as divined in the business including craft, culinary and art forms. so the last two bullets are quaul litative and have some quaul ul quaul litative components. we could have it set as the first two items as a means of registry or if the registry also requires the additional -- to have the registry or if it's a marketing component to have the last two bullet items. it is up to the commission to provide some direction in terms of how we

want to work with the registry. one thought i had is that the business can submit an application and the application ask for some information in terms of the last two items, and then the commission can review the applications and make as your regular meetings, you could set it once a month, the commission reviews the applications that have been submitted to the office to be designated as a legacy business. i just wanted to open it up for some discussion because in the next month i need to start really focusing on this and getting something solid to begin to prepare for the board of supervisors. once the legislation passes we have already started being contacted by businesses that want to be contacted when the legislation passes and then if we do want

to devise any programs around it, will there be some funding that needs to be attached to it. >> sort of like a historical landmark designation in real estate of sorts? >> yes. >> which would, ultimately the idea is that there would be some financial benefits to having that in terms of either generational change in ownership or even -- well, generational change of ownership within a family line or even selling the business to new owners but that there be some accommodation so they don't just go out of business. >> correct. >> so the tax possible incentives, when will that start coming into play? will that be ready to roll for them when they are able to apply? >> at this point that's not known yet. that will not, we're looking at separating out the legislation so we move

forward the registry. the tax refund in terms of the transfer tax for the tax credits, that's on hold. it's not that it's not going to be under consideration but i think we want to look and see if there's a more substantive package to incentivize property owners to retain or sell the property to the business. so we're going to be having future meetings taking a look at, meeting with property owners, realtors, things of that sort to see if they have some ideas in terms of incentives that we're not thinking of. >> so any timeline in mind of that, like the last half of 2015? >> i think so. i think so. we don't want to have it too far along but, you know, i can't say specifically. but i think definitely by the end of 2015 we want to have a solid

program in relationship to those types of incentives established. >> you've set a deadline to yourself, to the commission, february-march to develop rules and regulations. is this part of our mission to do so? >> yes. currently as the legislation, in terms of that specific deadline in the current legislation -- excuse me, commissioner tour-sarkissian -- it is specified in the legislation that the commission is to develop a program, to come back before they have a public hearing at the commission and go back before the board of supervisors to present it. and that is at the end of june, by the end of june. currently as it's written in the legislation. all of this may get adjusted depending on the timing of when the legislation gets passed. so

i'd like to stay with this internal time frame because again as soon as the legislation passed in april but we kind of have a program idea involved in what may be needed in terms of any additional budgeting or support to fund a program, if it does need to be something that's added to our budget then i need to have a good idea as to what that is by the end of march or early april in terms of meeting the budget cycle. >> okay, so we going to do this in the time frame eventually. >> yes. >> and you have that planned? >> yes. so i just i guess maybe open it up to you if there's things that you need from me to help make some decisions, if there's any guidance and direction in terms of, you know, when we ask a business about their contribution to the

neighborhood's history and identity, i mean we've established some minimum criteria with our business recognition program. we've established a minimum criteria with the annual business -- during small business week that we make suggestions to the board of supervisors when they select their small business honoree, we can work with them on that, but in terms of businesses that are operating in neighborhoods maybe, it may be helpful to hear what you may think of as, you know, substantially contributed. not that they have to be all of those things but an idea. so if somebody, if a business is coming before you to say they they would like to be considered for a legacy business and this is one of the criteria, in terms of has contributed to the neighborhood or history or identity of a particular neighborhood or community, what would you be

looking for for them to say that they have or to justify that, if that makes sense. >> what incentive is there for a business to want to be in the registry if they are not at the point where they are considering change of ownership? is it just the designation so that people see it and go, oh, they are a historic business? >> i think it's a designation. for the office of small business to create some kind of identity around that, it's a marketing -- it's a branding. it's something that we, just as the historical preservation society created some marketing materials around legly restaurants and bars. >> uh-huh. >> you know a similar kind of thing that we can -- to develop, something additional for them in marketing and promotion and something for us to help market and promote them.

>> the contribution, the way i see it, is either effective contribution to the community within that neighborhood, what type of services that business provides. that's one aspect. and the second is more aesthetics, you know, the precedents, how long the business has been in that neighborhood, what architectural unusual, you know, kind of setting it presents. i think the service it provides and for how long is quite important as to how long they have been and how long they have been providing that service is an element they can take into consideration. second, of course, is the way that business fits the history of that neighborhood. i think elements around these two poles in my opinion should be developed. if that's answering your question. >> yes, it does. >> also a business'

contribution to the neighborhood and unrelated to their business, through thur philanthropic outreach and other things that go on in the neighborhood. some of the most important businesses are those that play an important community role in our community. you could be a stationary store and that's kind of mundane but i've been the anchor and at my stationary store has been a meeting for the last hundred years that's kept this thing going on. whatever it is, it could be all kinds of scenarios. i think one interesting thing will be is there a hard line in terms of how old this business -- because clearly tenure is part of the equation and whether that is just a weighted number or whether it's to be an antique you have to be a hundred years old and if you're not you're just retro. i don't know. >> the designation is 30 years with no more than two years with break in operation. there

was some discussion that there have been businesses that, you know, if they have had to relocate, either growing or something that there may be down time during that period of time. >> or simply went out of business and got resurrected by some clever person who wanted to resurrect that name. that happens a lot in consumer products. a business can be defunct in 50 years and suddenly you see the name oh, where did that come from? somebody bought the trademark. >> does that meet the criteria of a legacy business if something like that comes forward or does it not. >> i remember you saying that they don't need to have been in the exact same location for 30 years. i'm thinking of original joe's in north beach who was there and then they went away and then they came back, but that's -- things like

that to qualify --. >> yes, uh-huh. >> it's been 30 years. >> we don't necessarily want to disqualify businesses that have grown, they started out in one tiny space and then they had to degree so they had to relocate or -- yes. so it's really about business continuity. i think the business years is business continuity in business, but those are things that each individual circumstance may be of consideration, may come under consideration, i'd say, but if it's really the same business owners --. >> what's the genesis of this idea? where did this come from? >> i think with supervisor campos the genesis was especially in the lower 24th in the mission district around the preservation of some of those businesses. and looking for a

way to say these are businesses that have been in this neighborhood, you know have been in business for this amount of time, are important to the community, to preserve. >> this is not a veiled attempt to address formula retail, is it? >> no. no. >> i would say no. >> so we have a number of criteria here. now are we going to say that they need to meet all of them or, you know, a percentage they could be --. >> i think that's what we need to think about. >> a store that does a lot of contribution or the jewelry store that was the first one to do whatever it was. i'm just -- can't really necessarily say they did all of those things. are we going to say two out of three? i think we need to work on deciding that. >> yeah, i think it gets

somewhat subjective. you are a legacy business. or i am, no, you're not. well, i'm going to call myself one anyway. >> go ahead. >> one question, it says business has contributed to the neighborhood's history. so we're talking more about neighborhood than community at large. that contribution has to be brought to specific neighborhoods. >> in the city of san francisco it gets hard to differentiate sometimes because it's such a small place. >> it says neighborhood or community. >> it can be wider. >> it could be wider. it could be either. >> moved around the city at large. >> it could be the community at large it could be the community of the industry, it could be specific sort of ethnic or demographic community beyond just the neighborhood. >> i mean clearly some businesses are historic no matter where -- like booty and bakery, it doesn't matter where it is in the city, it's a part

of our city and has been for 120 years so that would be one i think that would obviously you wouldn't maybe fit some of the criteria because it moved a couple times, i think. >> right. >> now at fisherman's wharf, probably has other fa sits but that's something very. >> there's some very old businesses in the union square area. are they to be considered or is it strictly neighborhood commercial corridors? >> it isn't specifying a specific geographic area so, i mean --. >> lichtman, jones could have been part. >> i think the commission, these are some things for us to think about. >> interesting concept. >> or i could, you know, go back -- you could ask me to ask

the supervisors in the finalizing of this legislation do they want to get more specific or not so that there are some broader parameters to allow the commission to work with, you know, to allow the commission to work with. some discussions that i have had with nate alby and supervisor campos' office is if you include an entity a large, let's say we have two founding very large retail entities, levis and gap, right? they are still headquartered here. if they are part of the registry but then they may not necessarily be eligible for the program but then they may have means to help fund a marketing program, you know, so i think

professor isobell sort of alluded to some of that. i have asked nate to see what supervisor campos' thoughts are on that to provide direction to make sure that he is the legislative sponsor to make sure we're following his legislative intent. but if it's still relatively broad these are things up for the commission's consideration. >> are there any other cities that have done --. >> no we're the first. cities like new york and seattle are interested in what we're doing to see if this is just another step to help doing some preservation for the small businesses. >> the way i see it there are four points, two of them, the first two are objective and two are subjective, correct? so objective, the first two will be the entry door and then the subjective element will be developed --