go to item 2. >> hearing other than the six months hearing and requesting the controller's office and mayor's office to report. >> so real quick we'll continue open up for public comment seeing none, public comment is closed. >> colleagues, can i have a motion to continue to the april 15th full meeting okay. a a motion by supervisor mar and supervisor tang we'll take that without objection. >> all right. madam clerk call item 2. >> item 2 for the city's economic strategies and requesting the office of economic workforce development to report. >> thank you madam clerk colleagues, i called for to hearing to have a dignities as we talk about the budget this report serves as one of the 12r07b8g9 reports to derivative our economic policies and thank you oewd for this update for

2014 strategy after thirty years of stagnation our city is seeing it's share of a regional and national growth we're having an opportunity for the full spectrum of san franciscans but there's a ton to do to make sure our economic boom continues for san franciscans of all strips and background there is a ton of work supporting the industry and our small business community as commercial rents is revising and office space scare reserve this will continue to serve as a guidepost as departments cross our city as they work to implement policies to strengthen our local economy thank you oewd and welcome todd to present. >> thank you supervisor farrell for calling today's hearing in

2004 the voters approved proposition i did mandated the creation of apple economic development strategy in 2014 the city realized the cooperation with the office of economic analysis retailed that in 2007 proportion i talked about this we're before you to present the 2014 update to the strategy that was done in collaboration with the office of economic workforce development and the office of economic analysis in coordination with mta and arts commission and many others across the city to give you a sense of the structure of today is presentation i'll give a belief overview and innovative you up our colleague who lead this in the office to implement

the goals and recommendations of the report ted egging on is going to speak on the economic performances and talk about continuing barriers to job growth in the city i'll be go balk e back up to talk about the conclusion so briefly one the 2007 strategy.org the city's economy into 20 ports driven by financial services like software and advertising and architecture design and tourism and the exploring of coming to san francisco equally important is the second budget is local services industries as health care and retail and construction, manufacturing and train and transportation those are industries critical to supporting and serving the city

of san francisco and serve the local market one the key finding the economic strategy those two key areas did local and export industries are linked that having the export distresses and serving the market is critical but they don't think the math to fill the goods to the businesses. >> the economic strategy included 3 key goals the first was obviously to create job opportunity that draws on the city's strength we need to insure the second goal we are increasing the levels of inclusion and equality in the job growth in driving down equality and make sure that the economic is driving the resources to invest in its priorities the economics strategy that includes is 9

total across 5 key areas from education and nomination and invite up you laura to talk about what the city's efforts are across the 40 policies and the work we've done for today. >> hello supervisors i'm going to cover some of the actions taken inch breakdown down by the action areas the first is education and training oewd oewd we've been successful in construction and health care hospitality and implementation and technology we focused on a streamlined path to access our workforce programs workforce partners and clear educational program added them to the report

this allows the school district and allows the city to have our academies with the school district curriculum with the pathways to the employment industry. >> finally every 20 percent of broadband the city focuses on the digital literacy and establish and advanced 14th century tech labs in tech centers it serve our seniors and expand the obeyed over several miles of cable and extensions to our park the north waterfront and treasure island through the civically and through our other facilities action area addresses the governors and climate the most

visible thing is the transition to the grocery tax much like our workforce alignment assuring our businesses have a single point of contract in city hall to address their nodes this not only helps to build the riderships but strengthen relationships with group see like the chamber of commerce and spur and sf made and others lgbtq chamber of commerce in 2008, we launched the one stop center providing small businesses one-on-one assistance in the first 6 years we've served more 16 thousand businesses we launched the online portal school which will provide comprehensive information and allowing them to say in the comfort of their home throughout the business

community and self-reliant feedback we've been able to refine our tools for businesses the number one complaint was access to capital we launched the $800,000 loan program that provides loans up to $150,000 for businesses for more capital we laundry a fund that loans up to 50 and $100,000 and focusing on small businesses we launched the program with interests up to a certain amount the diverse neighborhood 9/11 in neighborhoods and dedicated the staff working with the community a specification action plan to suit their district needs strengthen and opportunities this road map allows to so are a better scrape and the

improvement inform our corridor many create cvs and to provide ongoing funding for many of the businesses as well the 2 percent art program funded projects exceeded $4 million up from $245,000 creating new infrastructure but employment opportunity for art professionals which are over 50 percent of the resident we have deeply roads organization amazed to half a million dollars in addition to the $5 million with the bay area opera house and capital maintenance funded by the art commission on the city cultural center when we tube the quality of life the rec and park department has increased revenue

from the leasing of progressions and san francisco voters support it to fund the parks and the nonprofits stepped up for sports fields and community centers action four talks about the robust plans for affordable housing and the commercial has one hundred and 20 thousand additional jobs awhile insuring the industrial phases and insuring we have room for the good middle-income jobs the planning department and the department of building inspection has worked with a you supervisors to address ceqa providing for applications and shortening the timelines insuring the responsible timeline is accommodate san francisco but was we hear from you often we have to pay attention to the transit it is a system wide moma

efficiency for the mta leading to faster more greater access to san franciscans if so on top of the transit projects including the van ness brt and the transbay center and the list goes on and on we've attracted incubators not only for technology but for manufacturing and biotechnology as well those phases allow a person with an idea to give it a try and provide them with a collaborative environment to test out their businesses business this helps to innovative san francisco in 2007 strategy emphasiss when it says we have expand academies in san

francisco looking at mission bay we've succeeded a reach institution and startup that go to large companies and create the secretive environment we're working on this looking at hunters point we're focusing on continuing to drive development and driving the development of our talent as a anchor for commercial development with that i'm going to turn it over to talk about the industry how it performed based on those are actions. >> good afternoon ted where the controller's office as todd told we were asked to assist with this strategy update by focusing on an analyzed of how the city's economic and supervisor farrell you said the recent years the

performance is strong across the board we over took a different time period 2004 to 2010 the reason we picked those points they were economic low points in the business cycle one of the reasons our economic economy is strong we have about in the recovery so if you compare where we were 5 years ago some of the growth because of the business cycle and maybe in a different economic cycle and difficult to separate those we want to see how the growth to the same period this is one of the long term economic development and this give us the long term prospective over quite a long period to look at data an economic performance in san

francisco in the late 60s to 2009 san francisco's employment didn't change in fact the peak in terms of the employment was above the peak in 2008 nearly thirty years later it's been a different story but for many years the san francisco overall employment level was understated phone call focusing on the 2004 to 2010 we estimated the economic performers of the 4 sectors of city's economy are the creativity industries and financial and professional services and local serving industries what this chart indicates the size of the bubble the relative number of jobs in the said industries where it is open the light axis from the bottom of one recession to the

next, we nevertheless, say rapid growth this is, of course, before the tech growth we've seen this decade and seen rapid growth in the experience sector 9 financial and professional services sector was flat we lost the local serving industry todd made an important point they depend on on the export industries and in the sentenced we have a recession to say often buzzed the export stridz industries take the rest of the economy when we come out of a recession it pulls us up but not all the economic will grow at the same rate from 2004 to 2010

a couple of industries it naturally grow and other industries don't what do i mean is they columnist with a set of industries that relies on highly skilled landmark those businesses succeed because of the critical mass because the talent the talent comes because of the jobs and clustering in which for whatever reason the bay area economy in san francisco is the most successful and competitive cluster in the world so that's a set of activities as long as theirs growth b will want to grow in our region secondly, the extremely committees we're

consistently ranged as one of the highest in the wormed we have a 20u6r9 attraction we're going to get growth into the economic and the critical mass factor around the arts and other things strengthens the tourism program so those two derivatives of our economy hass have a lot of factors that make them want to grow in san francisco they're not tied to the technology it pays higher wages of anywhere in the country and is the faster it's a testament to the ability to grow here the financial and professional sector is a set of companies that have generally been here a long term over the long period we're looking they're basically

holding employment constant and not really a source of growth or decline their set of activities that the city is strong if and basically, the companies that can at least hold constant given the high cost of doing business in san francisco now the local serving industries are a different story they run the game even though from health care to construction wholesale and retail trade, beauty parlors and laundry mats they do don't necessarily have a competitive process but face the prurdz from nearby community and increasing resources off the internet we're seeking a growth they simply do

the same as the creativity industries have this different performances has important implementation for lots of things that about san francisco particularly or starting with the types of people who are able to find jobs because they offer different types of jobs this is a chart that shows we breakdown the workforce of the people that work in san francisco bill which of the four sectors they work in how much education level and what is their afternoon hourly wage that shows the two industries that derivative our economy that the knowledge industries and the experience open the other have different employment the experience sector about 70 percent of the jobs in

that sector pay less than 1750 an hour and the jobs are concentrated among the folks with less than a education on the other hand the creativity industries and the financial services about 70 to 75 percent go to those folks with a 4 year degree only 40 percent of san franciscans have a degree that's the highest in the country but still on 40 percent the creative financial industries that basically means the two sectors that are the biggest sector of job growth offer hive wages with people with a lot of education or low wages the industries that offer the low wages are the locally serving industries when you

brake to down they have the medium sector going to people with less than a 4 year degree and one of the implementations of the incarcerate that source of middle-income low wage sector is going away because those businesses are not competitive in san francisco this is the demonstration this is the demographics broken down by the categories from extremely low when is less than 50 percent of area medium income over one hundred and 50 percent of medium income and from 2004 to 2010 we have growth at the low and high-end of the spectrum if you look at the low and mirrored it had look at of growth and the other went down

it's not a mystery the industries hiring the people at the bottom and top him or her leading to geographic you difference. >> the economic development stream prop i calls for a way to do a barriers to job growth. >> can i ask you a question we've looked at the graphs and thank you for everything through 2010 where are we today would you imagine is looks at geneticly. >> i'll go chart by chart this one's in the one looks at different we're at 2013 at the all-time high in terms of

employment and i'm sure that 2014 will be higher we have broken out of the mold of treading water for thirty years this chart is going to be different for the recent years all four sectors are growing. >> then relative growth because whether it's medium or audits the tech seethes drawing the attention around san francisco a lot of talk gets you know mentioned about well, the multiplier effect many people are talking about local i think people who are opening up sandwich shops as individuals or serve industries can you talk about where you think this is gone relative to each other are through the roof it is much more an out liar. >> first, let me agree with you

about the multipleer effect when we say it is driving growth the tech and other export and the tourism industry generate the multiplier effects in terms of that have this i think the creative industries the tech sector is the faster growing sector in the earlier part of the recovery 2011 to 2012 the most growth we've seen in the temple percent range two to three times faster than the rest of the city but the chart is different through other upswing so far have been growing that's the departure whether we've

solid. >> if the chart was 2010 to 2014 i assume creative industries will be the one to the right would you think that local industries would surpass the financial and professional. >> financial and professional maybe grown but a they've not recovered in jobs and headquarter are not a major source of job growth owe local experience are probably pretty close on the right axis in between the other two. >> got you thanks. >> so just to come back to the barriers to job growth a survey that staff conducted to ask basically businesses what they how they experienced san francisco's local compliment and what they found were barriers to their expansion we in the controller's office supplemented this by trying to

actually construct what types of businesses costs the different types of businesses experience in san francisco versus others cities in the san francisco bay area how much for labor or office space and how much to pay for taxes in terms of what the survey said those are the 3 points the businesses pointed to a difficulty of finding releasing that is probably since this research observations of labor costs were high and the this is sdouj job creation and also difficulties related to business taxes and things came out of survey when we look at the numbers ourselves we found that labor costs are the biggest

between alternative locations that a business might stick within the bay area we didn't compare san francisco to metropolitan areas or move to a metropolitan area in texas it maybe cheaper but not all the benefits in terms of the workforce and the quality of life and everything else but if you move to other places in the bay area looking at how san francisco ranged compared to other places in the bay area was important in general san francisco and places are the high cost places and the bay area is the less extensive the office space to a lessor is we have relatively high taxes in

san francisco but the relative to backdoor costs is relative this is due to housing costs not because our workers take home more or take it home and give to the bank or landlord. >> so quick question when you talk about labor costs it's not about things that maybe those of us in city hall pass or mandatory literally the employers are paying more out-of-pocket to keep competitive or an employee in the city and other affordability questions. >> we're showing the compensation that businesses and employees get some of the things in terms of regulation that the city has added open my ad to labor costs but don't turn into worker money those are not

reflected. >> those are not. >> no. >> okay. thank you. >> supervisor mar. >> thank you supervisor farrell mr. egon i was going to go back to 2012 when you presented to the land use committee but the housing country is different the labor cost barrier related to heirs costs is the biggest number one barrier and it is roughly equal to 5 times the payroll tax and now we have an even much worse housing crisis speaking from a lot of the fears out through about people being displaced because artist cost of housing how has this changed or the number one barrier. >> i haven't redone the math supervisor but i'm confident it is the number one barrier

several times the tax difference this is it would be. >> supervisor tang. >> thank you. i don't see it on the charter specifically but in terms of probably supervisors office and the small businesses we come across or worse the businesses the costs and the amount of time to get our proper permit is a huge barrier for entry i don't know if this was something maybe slithering high on our survey but occurs how that factors into the entry. >> it was quite high on the survey that is something that todd will speak about it is hard to quantify but certainly in terms of what the businesses said it was near the top the easy of permitting the ease of city regulations. >>