is 2 hundred and 50 businesses and the storefront to help with the storefront vacancy and the job squad that continues to facilitate communications and continue to talk with small businesses it's hard to get out of your offices and sometimes to learn about what is going on so a tool for small businesses to access so that go is to the increase of the small business services win city hall we're using sales force and see what each other a dog and what programs their assessing and we've also again continued to work with our department of workforce development organizations to streamline our complying client referrals sometime is the fact

we have a federal grant and moved that in house you'll see the businesses have a much more streamline exercises with the small businesses and constantly accessing ca a number of programs with minimal in takes we all know the city is one of our birth vendors and access to the spending it is important so the contract monitoring division it has done a lot of work to bring more businesses into local business entrepreneurs and to connect with subcontractors through that program they host monthly yumdz and targeted focus on women owned businesses to increase the women owned businesses that that on the list to bid access to the city

spending so that's been a invites thing we looked forward to more of that finally a little bit outside but looking at the small business purview and the neighborhood commercial areas that's been our work to promote the neighborhoods to visitors with the travel association partnered with a number of merchant associations to do a better job of information around the neighborhoods to the travel associations website and into they're meeting plan to insure better access and launched the 25 key neighborhoods we're focusing on to really connect to the different programs available for small businesses and we've worked to spend money on beautifying our commercial districts $6 million in sf

grants across 47 businesses and our investment investments team working with the city to coordinate different projects for where we'll have the most emphasis beautifying in a prioritized away way that benefits the neighborhood that's my coverage of things we've done since 2007 as a result of the strategy now ted will talk about isaac how those things are impacted our folks. >> good evening. i'm ted el gone the chief economic it as prepared this spread they've asked us to help with the economic performance we've done see i'm going to briefing highlight that but want to make

sure there's copious detail behind the slides so if you have questions i'm happy to go-go intot details we've lushthd 2004 to 2010 a lot has changed since 2010 it was the depth of the revision and 2014-2015 we're the fast growingcy if the united states and we have a record in performance but 2004 to 10 was a complete business cycle looking at the trough we were in at the.org crash and the height thought or the debit of the great recession so the same points you'll see what structurally changed not only when things were down or up or vice vs. but apples to apples

from that prospective not an opportunity like we don't know where we are where we a compare to the past although your performance has been unprecedented so beamed when we talk about 2004 to 10 this is not an update but a result of a longshoreman prospective of the economy was it faces we've made a lot of progress since 2010 we'll talk about those issues but the long term issues this is a long-term planning effort intended to be yund again and again and this performance which sets the stage for the city's long term challenges no doubt we've made progress but issues that still remain when we look on the city's performance with job creation through 2010 and since 2010

there's a different story the city's job performance has for the most part been flat the peak in 2008 before the recession was lower that's a history of thirty years of flat economic performances as far as jobs are concerned that total number of jobs didn't change what was in the jobs changed a grateful we've changed a lot within the composition but 2005 and mr. taylor particularly since the recovery of 2011 the city's share of the regional job performances has increased from the mid 1960s through 2005 so one of the things we're witnessing in the bay area economy the importance of significance for san francisco relative to some of the suburban

initiative but the challenges we've talked about that picked up during the thirty year period we were times when it was flat remains to be seen at the simplest level in that kind of overview flat number of jobs changes within the economy and the simplest way to describe the city's economic driver industries that compete globally and tend to cluster in san francisco and thrive that based on the kind of businesses in san francisco officers those types of businesses like the creative industry sector and the tech sector and other mediums on one hand and the experience for visitor industries on the on those are strong for a number of years particularly like a lot of

growth it the technology sector but another piece of our economy the local sect that is growth slowly the trade and manufacturers industries and a lot of sporting neighborhood services during the period we looked at 2004 to 2010 those industries lost jobs 0 while the creative industry and the visitor industry gained jobs that's the simplest way to describe it not only from 2004 to 2010 but over a long term that change in the industry composition is data active for the groemz of the city our two strongest cluster in the experience industry cluster has very different employment

profiles virtually everyone that works in the industry has a 4 years degree or a bachelor and has a high wage over $35 an hour and that's meeting the profiles by craft only 50 percent of san franciscans don't have a 4 year dressing degree and others less this is creating job opportunity for people that are well educate experience cluster creates the jobs for people who are occupied by people with less education and low paying industries like restaurant that serves food and retail trade that in many seeshlths of the city sports visitors so when those two sectors are the ones that grow you turned at the end to create

job opportunity at the top and bottom not in the middle the industries that are shrinking in san francisco the local industries are the ones that are fairly well positions to offer that middle strait to of jobs but overall the economics are not growing it's accounting for the disparity and private jobs of the city and ultimately reflect in the will determine graphics of the city so we're seeing the grow gross e growth in the lower parts of san franciscans and even with the housing as expensive as it is to low population in the city and it's a high ends the upper income population is growing it's really the moderate or low up to 50 percent up to one hundred percent of average that

is climbing where people are moving out of san francisco and many areas within the bay area what that means another way to look at that industries that can thrive in san francisco business climate are doing so not creating a boo balance of opportunity of jobs the industries that offices these kinds of jobs are struggling i'll not say about this recovery of 2014 it's balanced we've got manufacturers since 2010 that was not something we saw before the 1980s we've seen the job growth across the board that in a gates a lot of things we're talking about but i have a concern the city's sustained growth will run into the

constraint we'd like talk about in the next slide that makes it increasing difficult for the industry to continue to add jobs that's why i think the strategy in what we're trying to calling your attention to proposition i requires the economic development plan to conduct a survey of jobs whether there are barriers in san francisco way i did this when of the streaming was being developed in the controller's office combined the survey routine with our strategic analysis how san francisco ranges with other barrier locations on different categories of businesses what we found is san francisco relatively high in 3 types of businesses compared to under the circumstances the commercial and real estate costs are not only

high to other communities in the united states but by various standards by the housing costs i'll talk about a second barrier but relatively high rent and ultimate office employment space locations within the bay area that gap is widening so our top disadvantages are commercial real estate and not able and their increasing and even bigger category than real estate is other costs many businesses spend a lot of money on labor our labor costs are directly tied to the housing costs disadvantage that means it's more expensive to create a job in san francisco like other places like in alameda-contra costa county and the bay area that aligns to the pattern we've

seen in what a types of industries are growing the industries that don't thrive in san francisco are the ones that are growing up and doing better in other parts of bay area other areas are doing a better job of offering jobs to san franciscans that's why the business captains is important real estate is wan and labor is bigger and the third one that comes in third when you run the numbers is the business tax issue so san francisco's is a high relative tax location within california it's in the top 3 it adds to the additional costs of doing business but let's in the premium that is tied to heirs and less than the commercial real estate costs so over the

long run the city's economic growth is making progress on the barriers so that will allow the businesses of every type of to allow opportunity for people in san francisco and begin in time to reverse the pattern of inequality and to talk about the future and the future plans streaming i'm going to turn it over to todd now i'll be happy to answer any questions that you have. >> and see the economic stream is focused on where we go from here todd's - we've grouped those into for the most part is the focus on housing and the cost of housing as with relates and passed on to smdz to costs

you know the mayors has proposed an aggressive housing strategy for thirty thousand housing 20 percent are 0 low income folks and 50 within reach for the low income san franciscans and the competitive for about and the ability to connect san franciscans to passageway for crazy and jobs i'm sure you're aware of small businesses are the drivers and creators of jobs the challenges is in fasting the following has the skills and training so that through our academy whether city build or our housing academy we need to remain focused on those passageway and insuring that people have the lards of

opportunity that's not it if you deserve to move up you have the lards of opportunity to take advantage increase our earning power and third as was mentioned the business portal you've seen the briefing from jane and close work with regina we're not rest with the first phase of the business portal we're working on the second facing phase it will look at how to streamline the progress the portal makes it easier for the businesses to see that you hear if our constituents and people in the commission we need to do better to make the process easier not only easier to navigate wear moving forward and it's a key priority we're also focused as ted mention during one the key barriers on the cost of rising

rattling while 9 city if directly control the cost of real estate we're through zoning powers and others how to insure that enough space is developed and made available for all sectors of the city's economy and pdr businesses the mayor laid auto a key provision in building new pdr new 12ri8 space in the city not only the tools of economic development but but power of zoning and land use we're focused again on number 5 supporting the local industries not only the retailers and smshz but the neighborhood commercial coordinate and focusing think outside the box 25 corridors you

see those strategies being revolted out across the city and attacking the challenges that those neighborhoods have with consistent and interim think community engagement to address the real needs on the ground we're focused and didn't spend a lot of time but focused on transportation from and capacity this is the challenge whether you're a measuring e manufacturing business in district 10 or trying to get in on bart to work downtown whether its employees or customers transportation capacity is a key focus of us that's ultimately a limiter how much the city can be able to support the needs of the convoy we're focused on

transportation a number of key areas we didn't spend too much time but i'm happy to talk about finally the economic strategies laid out 4 areas that are priorities strengthen the infrastructure that's manufacturing industrial businesses as the key foundation for the economy people that are moving the goods and distributing food from the wholesale market to the hotels and restaurant we need to upgrade hotel and tourism and ted laid auto in the economic strategy a vision where the neighborhoods are a driver for tourism people want to come to the city to experience the hate and see the mission and go to chinatown and go to the sunset and we also need to continue to retain large sectorors whether banking and finance and

professional services those businesses have is to know multipleers that cascade through the knew one that is cut off on the bottom of the screen is the startups new businesses to create environment so again, a that's a lot of ground to cover commissioners in a short amount of time we'll be happen to take the discussion now. >> any questions commissioners. >> well, my particular sector manufacturers has been a beneficiary of your efforts with sf may and your efforts on the pdr side i know there's a number of developments currently under construction that has pdr contemplated that's terrific

so - does anyone have any questions or comments oh, you. >> (laughter). >> commissioner president adams i want to say thank you. this is a very good report and as someone in banking and lives this stuff everyday i really appreciate all the work that's been done with this and want to allude something you said ted about you know for the port that's getting bigger and housing and the services and stuff for the upper class they're the ones buying the millions houses the one thing that worries me is the middle-class there's more and more i see like my own employees moving out of the city and i know that's something you all

are working on we're all working on i'm happy that you address that that is something i'm seeing and something that deeply concerns me when i talk to people in my district and some of the small businesses like a lot of them s are having a hard time jobs, jobs and trying to hire people can't hire people from the city because they don't live here anymore it's something of a concern i'm happy you addressed that this is a kind of eye opening recorded. >> ted. >> it's interesting we've seen a shift in our office staff from that renting places in san francisco to almost all of my office staff is commuting from oakland into the city and, of course, the public transportation issue raises its head because you know every

morning i'm getting texts oh, problem on bart and muni i didn't they're supposed to be arriving by 9 and it's 940 bylaw before we get assembled we live in our micro coming all those issues i appreciate they're all on the list. >> commissioners to that point mr. chairman recommended to employees and hiring one of the reasons why our workforce initiatives are important the city's unemployment in inform 3.2 percent 20 thousand unemployed sfomgz that are given up looking for work or wish they had a better job so the focus hearing commissioner president adams our point will people that need to hire and wish they could fill those jobs that's good news

for us but refirms the challenges there are people in the economy that need investment training and connecting those to those job opportunities that's a key point of our strategy. >> yeah. commissioner tour-sarkissian. >> thank you for your presentation i have a question about the demographics and the fact that the very low wages are increasing as well as the high wanlz after a flat period out of curiosity how fast is the low, low wages as compared to the high wages and how can we accommodate all those low wage

earners i'd like to hear that. >> 0 i don't know why are extremely low income people moving to the most expensive places in california appears to be an attractive move for people that are immigrants if we don't elevate those are some other locations in the united states but san francisco as a place of residence they have a network compared to a location they were living before so it's a different way of looking at alternative places how they manage in san francisco appears to be by living in extremely crackled quarters there was a really revealing newspaper story in the chronicle about a family 6 that were living in a hundred square feet

room waiting for affordable housing they were spending one thousand dollars a month for this one thousand square feet room that is $10 a square foot per month that's about 23 and a half times when a condo went for very low income people will consume very small parts of housing to live in san francisco and lights spend a large amount of income we were looking at the housing burden and how people were spending for the limited population it's over 60 percent of their gm. goes to housing if you're life-threatening to spend a lot of income on housing and share housing with a lot of people that's how it's working i don't think it's what people want to see in the city that's why affordable housing is so urgent in the city. >> the request about poverty in

the city are we setting up such a invading poster levels of poverty is is higher. >> i believe the recited rate a higher but the distinction of poverty didn't fit our city we have another problem a number of people and it's hard to kind of get the demographics but people that are lower income to move out of the city it's reasonable to look at the data and conclude that people come to san francisco when they're very poor work here for a few years and move out it tend to be the people that move out tend to be lower income than the people that move in thank you. >> commissioner dooley. >> i wanted to go back to the housing situation

with the middle-class housing in terms of it's hard i know in north beach my area for people to find employees that don't want to commute i have seen all the traditional housing that will house those people say boric acid out and being sold to people who don't live there and the merchant in my area are noticing that also those folks are not getting their dry cleaning done they have a house in new york or london that lack of community is hurting small businesses we have perhaps restaurant don't by the people that's one of the few things people go but i know say for my part of north beach i would say 8 out of 10 buildings are now been sold and are not virtually

not occupied so that's another issue in terms of the middle-class housing those would traditionally go to the people that live and work in the neighborhood that fill those middle-class jobs i think that middle-class heirs is the most important thing since traditional housing is being taken away. >> commissioner dooley i totally agree that middle-class housing is a priority one of the key pieces of the thirty thousand units the housing goal is 50 percent of those housing houses to be within reach of the middle-class san franciscans there's a number of vehicles of interest to the commission do an in depth strategy but a number of key areas that the mayors administration laid out was the issue of the geobond he