well as our condition reflects a high end operation mpt i don't see the premises creating blight on the community and don't see it creating amunity program and don't see it creating a police problem. i will read the l condition mpt condition number 1, no nysnotable [inaudible] condition 2, no person under the age of 21 sell or dlerfb alcoholic fweverages. 3, no wine is sold greater than 15 percent by volume accept for dinner wines [inaudible] condition 4, wine shall notd be sold in bottles or containers smaller than 750 ml. condition 5, beer and malt beverages and wine coolers 16 ounces or less are not sold in single

containers. condition 6, exterior of the premise is equipted with lighting and power [inaudible] not disturb the normal privacy and use. condition 7 and think this is important, this is the first time we use thd condition. this was a condition drafted by the alu and are the first in the state of california to use this condition. i think it sets the tone we are recognizing and trying to anticipate impacts down the road because as wy know when legislature makes changes it is grand fathered into existing licenses. with regard to powdered alcohol in this condition will read the sale service and consumption of

powdered alcohol or like non liquid alcohol products is prohibited. this is a condition we request on off sales muchbing forwards until the state legislature resolved the issue. now powdered alcohol is >> can you explain what powdered alcohol is >> absolutely. it is chacktually around for a long time on and off. it was primarily viewed as a food additive and believe that is how it slipped by the state legislature. it is podeered form of alcohol. you can take a 7 up, you can be at at and t park, order a 7 up, pull out a packet of powdered alcohol poor it into your seven up and now you have a bourbon and 7. these come in all flavors. ironically i see this being a

splar trend to what we talk about e cigarettes. there are bourbon jun and vodka and cause osmopolitan and fruit flavored alcohols. i think it will get fixed down the road but see all types of issues and think it is important thaz as a city set the tone for the rest of the state and really start restricting this because like i said, once it hit distribution and there is nothing i can do blt existing licenses but it is prudent moving forward-i don't cease this licensee being a candidate for this product, but think we are remisto not do something >> thank you for being ahead of the curve. it is impressive. this is like the first within the state looking at the issue on a local level yrkss and spoke with abc and concur would ourb language and we are the first in fact to produce this.

moving on let me read in the record our last condition is that is condition number 8. sale permitted between 9 a.m. and 10 p.m. each day of the week. if i can very quickly just speak to the opposition. just a few things. some of the protestants speak about over concentration. that is correct, it is a area of undo concentration, but i think it is important to speak quickly to the fact that the step they are using may be accurate, but not a legal argument. we have >> student -we when we have to be license specific. we are talking about off sale license. the protestants reference there 164 alcohol beverage licenses in the census track and i don't dispute that but they accumulate whole sale and

on sale license squz the abc act doesn't speak to that. high crime, absolutely this is a area of high crime. the last is regarding proximity to other liquor stores. this operator is coming to us with a very specific plan, cleely you can see we are noot recommending a liquor store. this place isn't operating like state law allows 6 a.m. to 2 a.m. we are doing 9 a.m. to 10 p.m. with regards to access to youth, i don't see this being attractive to young people. this isn't a place selling candy bars or beef jerky. this is a high end adult premises. with these conditions we recommend the license for aprovel >> thank you. sproovisor campos >> thank you. just a quick

question about understanding how this license was bought by the individual. is this a license that was brought from another neighborhood or is this something coming from within the area? >> it is coming from outside the area and let me explain first what state law says. what the state law speaks to is within the county of san francisco licenses can be moved throughout >> i said understand >> this license is coming out of district. sminels when we come up with inturnt guidelines that say i onlt want licenses to come within the indistrict it has unintended consequences. i am working on a file up grading the license. all he wanted was beer and wine because of pressure that he geds feedback about buying

within his district he is coming back wanting a dist tilled spirits component. i'm just cautioning that i think we have to look for where the lice nss is coming from. there are opportunities to take license out of areas that as a city we may want to move >> i understand that. in this case if this is approved will this inclees increase the licenses in this district >> yes >> could this applicant bought aortlicense within the district or was that not a possibility here >> i think that is a bettergression the applicant. the liquor license is controlled in the private market can & we are getting tite in san francisco because off sale license ucan't get a original so we don't have a lot of inventory now >> thank you >> supervisor christensen >> i think you covered

objection letters you got. redid receive a couple calls on this, but the complaints were vague and general so-this is the hotel location, a vacant place. it is a place of entertainment and high end, were there any complaints you received that seemed pertinent? this is likely to do harm? >> the short answer is no. i would tell you that in all my years of doing this there tends to be 2 types of complaints or protests boneifyed community opposition and industry or competition driven opposition. i think this one appears to be a mixier of both >> as i understand it supervisor kim has-is not protesting this? >> from our communication to her office she is not opposed

but not supportive either >> thank you >> lieu tenent i did want to ask, this is a transfer of license from 16 west portal avenue to this spot within market street and what is the concentration of either type 21 or type 42 within district 6? my understanding is south of market and tenderloin have the highest concentration in the city now. that my guess >> the technical is actually the central if we look at census tracts, but you are correct, very close second running up is soma and the tenderloin >> west portal would have maybe a lower percentage of liquor licenses and we transfer from a low percentage to a high

percentage area it seems like even though supervisor camp pose raised the question of whether the operator could have acquired a permit from district 6 or the general area, is that right? >> it very well may be the case, but where it starts getting rather tricky fl businesses is if we start establishing guidelines as a city government, it starts creating a bit of a lottery system or a premium on liquor licenses. a good example would be often with planning code we have done liquor license moratorium and talk about how we have the local support of the licensees. of course we have their support because their license doubled in value and we guaranteed no competition. what i try to

focus on is where the licenses land. if you guyerize seeing it differently i welcome input but my primary focus is not worried the where from because that is basely defunth business, but where they land >> i know working with a number of youth organization on tobacco permits they surveyed and analyzed the city and south of market and tendser loin have the lion share of stores and businesses that sell tobacky prckts and lots to youth. i see this splar parallel of public health policy concern if you center too many transferred licenses in n to a overly saturated area whether for tobacco or alcohol permits-i try to think of the issues you are raising and broader public health public policy that guide or think on issues like this

>> i would absolutely agree with you, but i think at some point we have to take a look at the business plan. taking your su-air in a irio we are talking about a high end place, not a conventional liquor store. i think if we were talking-if this was a application for a off-sale liquor store 6 a.m. to 2 a.m. the police department would have opposed this application and be before you with a deninel. that is what i trying to focus is what is the business plan and what is the impact be on the community and in this case i just don't see a impact. sleckdly police services. >> another public policy concern is if we privilege elite high end type wine businesses or versus small mom and pop potential business-i'm

thinking out load >> let me point out this is a mom and pop . i'm not making a distinction of multichain big box retail, where focus more on peoples business plan. i love to see small entrepreneurs. we have all kinds of them. will come here soon to present in supervisor christensens district a place wanting to come in and gear deli square and don't recall where this license comes from burkts it is a sfamly run business hands on and koospecially vinker gers, spices and import lick ors from europe. i'm not speaking of big box formula retail, i'm talking about the business plan >> maybe zee a different definition of what a mom and and pop store is but i hear

what you say, it is a family run business and east coast location and thist is the first west coast >> correct, one of the partners is mubing with the family to run it so it is local hands on operation >> thank you for the all issues that are raised. if all are no other questions let's allow nutosha [inaudible] or the licensee for flat iron wines >> thank you very much, nutosha can't be here. my name is josh cohen and a partner in the business. i'm here with flat iron wines with my colleague [inaudible] who is nem who will move from the east woest co-esto the west coast with the family to operate. he

is the general manager. joshtia peero is a former employee on the east coast who lives here who will be the [inaudible] you will hear from bow today but not josh. you asked a question about the transfer of the license and i think our attorney will address that in some detail but the short answer is we did everything we could keess the issue and she can give the details. i thought maybe i would take a few minute to talk about who we are and wrawherewe come from and what our business model is. speaking why we are interested in coming from new york to san francisco given we are small family operators. we started to learn about wine and learned the business of wine operating boutique wine stores

in bookland. these are not liquor stores like package stores in new york, they are small shops that are devoted to small producers. a focus on artesianal procts. we don't so tobacco and no products of abuse. after a few years we had the idea it would be fun to try and take everything we learned and open a bigger one in manhattan. we wanted to go deeper into wine and wine education. we found a space on broad way between 21 and 22 street in the flat iron district. >> isn't that where the first sky scaper >> exactly. we are one block

south of that. that is neighborhood gone up and down over the years. it was one of the most fashionable neighborhood. this building had huge potential but was abandoned for maybe 10 years. it was a former joke shop, nauvalty shop. the block had a bunch of empty space squz it was the kind of block people cross the street to avoid at night. we saw the potential, our landlord rehabilitationed the build{did a build we are proud ouf and laurched the store and now the block is-the neighborhood is transformed from there up through the next neighborhood up through nomad. our contribution to that has been opening the shop. as i said before, the shop which is

the model for what we want to do here is not what you consider in 94 new york a package store. it is devoted to small producers, lots of sustainable wines, biodynamic. in particular we have become the advoicate for what people call the new california wine. i don't know if you are familiar with that term [inaudible] called innew california and this is [inaudible] we have very close relations with many of those producers, a couple submitted letters of support which should be in the packet >> we may lose our quaurm if we don't move more quickly >> let me try to cut to the chase. so why san francisco? beau or general manager decide

to relocate his family here and will tell you about that. josh was here and another key employee andrew chin is from here and moving back. we are talking and they all want to continue to be in wine and realized our model is something we thought would be perfect for san francisco so started to look for the space and found the spot in the palace hotel which we think is brilliant. we began the process of out reach to the community and spoke with lieu tenent [inaudible] the think i think i need to make clear most of all is that where ever wree unbusiness we are family operators and part of the community and never want to do anything that would in any way 30 community. we want to help the community so it is important not only to know zee the support of the sfpd but to

understand what the issues were and know wree up a we are in a position to help and not hender. we spoke with supervisor kims office and they gave us various sessions to meet associations to meet with and met with them. we spoke with neighbors and sent out mailings to over 1 thousand neighbors and got lots of support. we have-wree in [inaudible] and also next to the financial district and you'll see we have numerous letters of support from people there because they feel that is a vastly underserviced market. there is no store that does what wree doing there and it is to their benefit their veerns to have us there. they want to

be close to the growers and want in their lives. it is i think a wonderful opportunity for the city. >> just a quick question. on this issue where the license is

coming from and the idea of not wanting to add another liquor license to this area, why not get a license from within the neighborhood? >> we tried to do that. we spoke with several brokers my attorney will be able to speak to this in more detail, i wasn't party to that. the other thing i would note is the location itself, the number of licenses technically may go up. the location itself was licensed before so in terms of square footage there isn't an addition licensed area to the neighborhood. >> thank you. >> thank you for your time and consideration >> did your attorney want to make a comment? >> just briefly supervisors in deference to your time constraint. we did attempt to locate a license within

district 6 but there were no none available so we were not able to purchase within the district. >> thank you. i will call the public speaker carbds. rudey corpus, michael nolty, king john, marks vuleanao and jaims jamess creak >> thank you commissioners for giveing the opportunity to speak and share my humble opinion. for the record, i don't want to have to keep coming down here and stating my message and comment about what i feel about safety in the community. this will probably be the first and last time coming to speak about this for the record. i'm born and raised in the south of market and the devastation of what i have seen to my community and the city what alcohol has done

is twhouchb reasons why i push and do what i dproo had kids in my community. i understand they say it is high end alcohol powder alcohol, alcohol is alcohol to me. i know what it has done personally to my family and my life. i buried a good family member last week behind alcohol and numerous family members. i don't blame nobody but at the same time we don't need no more alcohol or lickal stores period. i don't quer cheers and applausee irif it is district 1, 2 ol the way to 12 and that is my stance of safety for the city and the community. i just want to share this before my last final thing is, may the 2 in liver more they had a wine festival.

the guy had wine there and took off there and went a mile away and ran over a whole family. killed them. >> thank you. next speaker >> good evening commissioner. i'm against the whole alcohol stuff because i fmlies members that died of alcohol i stuff but i'm getting tired of everybody building [inaudible] tear them down and build them with alcohol [inaudible] try to make alcohol for people to drink. that ain't cool. alcohol and s alcohol. it gives people bad livers and get craze squae stupid. the homeless people that don't know whether whereto go, these lots

need to be filled up and buildings filled up with people that have somewhere to stay, not buy something to drink. >> thank you. next speakers >> good afternoon, my name is marks [inaudible] from unit players and i just wanted to say i'm against-i oppose the project because it creates a opportunity for more bondage for the community >> thank you >> my name is draiv ud[inaudible] i have nothing against alcohol, i like it. my mine is more toward the political and fairness side ooch the ist. is simple to me. if you didn't go through the right choochnl to get your liquor license the answer is no. we have a couple other places that offer and sell the same things and them coming here will crush those businesses literally. it is a relatively

in the same neighborhood so to me still the answer is no. other than that that is pretty much it, that is all i have to say >> thank you. if there is anyone else that would like to speak come forward >> my name is ben [inaudible] i'm see aglot of changes. mosely good changes. changes for the better. as one of the previous speakers said south of market was pretty dodgey. i know we have the most beautiful stadium in the world. embark dairy was blighted with a horfic freway and now the water front is gorgeous and market street to me is an anig mu. it is beautiful on the ends and hideous on the idamal. if you were a tourist and saw this boulevard you think it is world class like the nog [inaudible]

i don't want a be a preegz or londoner and want the city to be world class. from third street to the the castroit isn't too pretty. it needs improvement. another liquor store is not a step in the right direction. i live up on bush and mason but my neighbors to the south are not fortunate to not have liquor stores in the neighborhood. they are all over the place. i have children in my building and they don't have problem being out on bush street on their own. firth rb down you wouldn't let your kids be unsupervisors and it is emblematic of liquor stores. one more liquor store won't help anything >> thank you. next speaker >> good afternoon.

appreciate the opportunity to talk to you. my name is nob nab at flat ion wines in new york and plan to move here as owner and operator of flat iron wine san francisco. i'm moving here because a couple years ago my wife and talked hch we lived in new york 9 years and most years i worked with josh in the wine industry and want to move back west to be closer to friends and family. my wife graduated from business school [inaudible] knowing that i went to josh and said i love the wine industry and it is what i do and love. how can i make this work and work with you and go to san francisco so this is the project we came up with. we flew out here many times thoerfb past year and met with the people including rudey and

i understand where they are coming from with their concerns, however i think what we are doing, what we did do in new york and what i want to do here in san francisco is a business that completely is different from what they are talking about. nothing to do with a liquor store. this is a world class business i want to put here. i want to be a part of the growing community and how the community grows in [inaudible] and downtop town. i want to be deeply involved and think our business is superate [inaudible] we actually will be able to really help [inaudible] that community into a great area. i'm excited to do my job in san francisco. i hope you give me that opportunity. thank you >> next speaker >> i have a item to pass into the board. a copy for the clerk. my name is michael naulty. i'm