comment? >> good afternoon john taco 0 group whatever else you do it deny the request for the small cap any request small cap large cap don't you realize having readily available recap is a place for speculators to let the leases for the pdrs or arts people inspire and once demands they ask you for office space approval you'll envelope vices another dozens of these you have to say no, they, still build up to 25 office to convert not to

49 thousand you must say no it will cap sisters and spread everywhere. >> is there any additional public comment? >> yes. good evening, commissioners i'm with the richard association i'm not from the district again san francisco is such a small city i think we need to support each area especially, when there is a valuesus cause i think in this case concerning the preservation historic preservation not just the how's by the culture and art and people that is a critical element here so, please do not approve that prestige as it is thank you.

>> hello commissioners, i took the liberty of taking a translation course and is translation in truth i'm an artist that just rent-controlled unit space i lost my space i was going to get evicted i'm speaking in favor hi, i'm a tech company illegally renting space ♪ building for years it is a lights industrial space and the landlord hi, i'm the owner i'm trying to legally convert this to office space to retroactively approve the erase hi i'm the retail guy that's been here for years and years and trying to make good on the new leases i'm i'm the city attorney and there's a law protecting light industrial space but i woentdz

say anything if you won't there is a project that needs to be reconsidered the loss of pdr space >> (clapping.) thank you. >> good afternoon, commissioners i'm eric request the coordinating district and i want to say we truly look at the big picture what is go on in the mission district and the mission we've lost pdrs space that was promised for businesses to grow the building was sold we sponsored the project we were going to get the space for small businesses now they sold the building that is one case 24th and mission they're dealing with

the rent increases that was talk about converting that to office space and 16th street and mission we need to look at the history of the mission district and the district. >> what it has really produced you know what is coming out the neighborhood it is the arts and culture that is a what brings people to the neighborhood we have to look at technical tech and office thank you. >> hello, i'm jake i've been serve my country with the peace korea and found myself displaced i'm an engineer and work downtown like a lot of any tech employees we came to san francisco we appreciate the artists and want to have it

continue so like to also all around or around the country black lives matter in san francisco and i but also the artists that built the city that's why i'm here thank you. >> good afternoon, commissioners i'm part of the san francisco latino democratic club i think dennis richard i remember yeah. >> i was here yesterday for my trump pin i cannot. >> so commissioners as i said i'm part the latino democratic club the latino community has 20.8 unemployment rates that's super high compared to the city so i'm here to say please don't

approve the project for real what is the pdr replacement policy for the mission a question how much office space is permissible and how many latinos do they employ will that solve any problems thank you very much. >> is there any additional public comment? okay public comment is closed. are opening up to commissioners commissioner richards >> okay what i'm going to do is start and commissioner antonini is behind me i'll ask a lot of questions first just so let you know i took a tour on every floor walking pretty much and engaged that is helped me understand the differences between the fourpt floor and two

or three and kwhaepd in the basement is a bit scary if so close and from the poles close if i don't want to be here one of the questions is mr. holman here do you come up a second people were you know saying things as fact and throwing things in terms of what has happened and your question gone question i keep coming back i asked the gentleman when you bought the knowledge did you thinks there was fraud in the retrofit that wasn't was that discolored to you were you aware of it?losed to you were you awa of it? >> the people that gave us the

building it says this is retrofitted to prevent the major earthquake i sent pc b o building inspection to when we asked this is what we were told. >> did you have a contract inspector look at the building and say in was a plywood and plastic bolt. >> we looked at the steel foundation see and opened up the floor the mud there was not cement foundations. >> we know i sxhu there was some work to upgrade we didn't realize the platinum amount of useful stuff that was pained madam chair whatever we assumed some work i want to correct the record we bought it for $16.8 million not 5 we worked to put in but didn't realize the

vast stent. >> question to mr. holman this retrofit is playing central in my mind this is public safety is incredibly important given that it wasn't quite what you understood it to be it is legitimate what kind of recourse to go after the fraud. >> the day i walked from the building i saw a notice the elevators we are unsafe from 2010 what did we do we went and basically rebuilt the elevators to be safe like everything else when in the building we tried to repair the elevators the state of california levied fines we looked at the surprisingly system and got permits to repair it the city came after us your

supposed to have those things done we're going to give you a punishment he talked to the owner you should have filed and gotten permits to fix the surprisingly system i'm not somebody that sits around and sues someone for what happens before we bought the building would we have bought the building today i don't think so toby and i have had a lot of issues a lot has been done to us i'm not sitting around and blaming someone else when i was in the building everyday all kinds of things should have been done. >> sorry let me say if we were going to sue the prior owner it would take years and years all sort of thousands of paperwork it would be hard to collect that

example needs to be done now the likelihood the attorney said it is dubious it would take years to get to court we chose not to do that they can rely something on the city said the city should have been inspecting it the municipalities never have any responsibility and you can likewise prior owners point to the city as their jurisdiction. >> one other question mr. holman a letter somebody read you apparently wrote was a factual letter. >> at the time, we got the building the people that are living in the suits 204 that we did evict and i went in and there were 18 people living

there with one toilet and one shower and i would hey that is unsafe and i finally got into there when we bought the building and i said i found space for them to legally live they said we'll stay here and fight you so my experience in building is that whenever you try to help someone that often is an unhappy experience the children's network was not legal they said we're not legal on the fourth floor i said okay. she said you need to rebuild did building i said april i couldn't do this but what i did i sent here a lease for another year and helped her to find a place and primarily april is happier

now. >> she's in the bayview. >> yeah. that's where they moved a man a really nice man we used to have coffee he said i'm tired my lease let me out of that. >> this is for the space our mission street. >> the guys a and a said they took things on our account i started to pay for sodas i don't take from my tenants and it came time for the renewal okay. you've not had a rent increase in 10 years we want to rent reduction that makes sense no sense people that moved in across the street they under charge we're losing money their

afghans i was no africa it is an their experience in the building you you know you feel like things after they happen horrible experience and descent people. >> gone last question i kind of understand the economics of the coffee development you know there is a costs you have 0 amnesties and costs from the rents and things there will be incomes and a targeted percentage that is sit down some are 20 percent for the development just a question the developers tell me the question i think the solution will have a mix of spaces as you already proposing we might nibble around the edges but based on the commissioner richards where you are if we ask for a person some other type of arrangement more

artists in different locations how had 0 you from the economic. >> we did a multiple analyze you've been given the analyze. >> did we get those. >> got it i remember. >> so first of all, i'm not a developer. >> okay. >> i'm not a developer i don't know you know we don't do that thing the second thing given what we've gotten into this project will be jason said we can get a 6016 percent return. >> 16 as is. >> as we proposed and proposed. >> part of the problem someone is upset we're herd they're paying 90 credence per square

feet they susdz us 3 times they're paying a lot of rents i have someone that sued me 3 times under there until 2018 not black and white a second scenario so we also-ran the petition and that shows a 2 percent on economic i can't do that i'm not in that position we ran a scenario we basically as the thrift pointed out to vacate the building it is unsafe we sell the entry building and jason said you did 12 or 13 percent basically, you don't pay the city one million and a half you only vacate i come across

real estate people we almost sold the building as katz nicaragua oils can tell you the reason they reviewed to - the artists are in the building i care about the artist he said we have enough to get to we don't need that and we didn't sell the building that was fine i kind of feel like the concerns like it is a no win situation for us. >> sure. >> would we have bought that building no each of the elements i turn around i find with bad things. >> the 16 percent on the project prototype. >> i don't think that is accurate that is high i'm a business person and i normally do startups cost 57 nothing ever

goes between the malls those are models they do oh, yeah, yeah, yeah i've had enough experience we give you optimistic scenario what happens for example, we basketball the building did we think we this had to spend hundred and $50,000 to rebuild the elevators did we think every latch was broken in the building did i think the sprinkler system needs to be rebuttals it was inspected when i look at small business owner something how did they do that why what a human being do that i'm sorry we take responsibility. >> sure. >> i'm not the going to ask the prior owners. >> that's a notable thing. >> not notable just. >> i think that is notable take

the compliment (laughter) the last question i have is we may come up with a situation with the x thousand square feet we want that an additional artist space but that changes the 16 percent or the run return. >> we'll just vacate the building that's not an option remember we have a tenant occupying 11 thousand square feet and the office tenants paying $0.90 per square feet it's not economic and that was critically i'm glad you come up that election location is on the map that i sent i mentioned this morning on the displacement project it is an advanced state of gentrification and gent identified between 2000 and 2013

as recorded by uc berkley there is a migration of people coming in i get it for the art person i have a question and michelle. >> i think so can you elaborate think the result. >> we put out a survey start the artists to get releases data on who was displaced or facing some level of vibration this survey was sent there channels i think the first round of responses over a hundred responses and just didn't feel like that is a good examine we did several efforts of outreach and got 5 hundred and 40 actors

a lateral in san francisco facing a level of displacements the data is agree invade and the reports is out this month i'll be happy to when it is ready. >> my first touts on the results i'll say the narratives it is kind of consistent. >> thank you. i guess, sir i'm having a hard time there were issues raised with the admin services can you help clear that up for me good evening corey assistant sdvrp yeah, it's important to make that distinction the administrative services that is an office space can't be tech or

back of large office space it can't be office space that is, if you know for it's own good and not providence any others services i mention the services by definition from the neighborhoods district are designed for businesses to businesses in the districts not open to the districts the administrative services must provides services to others businesses also known as to office functions for its own gain and so in terms of the office attendance the flower and the other one your clarify those. >> those were evaluated as administrative services. >> we've heard ryan was mentioned is o ryan a trade shop type of business and obviously

the planner can speak to this more that space their occupying is speculated as a trades shop based on the information we've determined they meet the dpichgs e definition of a trades shop if more information is needed we'll look at multiple kinds of trades shops artists do all of those need a trench of products produced or art galleries with no presence. >> can you restate. >> you have o ryan he shoulders the trade shops any retail space on if mission district does o'ryan need a trade space or any old trade space. >> equal basically to qualify

you have to have a retail space as proposed the grerp gallery on the ground floor is the retail space and o ryan needs many kind of recap as well. >> okay. that's interesting the other question - and they, be open to the public anywhere okay got it thank you within other question there is so much stuff flying around maybe toby on the sponsoring how many. >> on which floor. >> excuse me. fourth. >> prior to it being vacated and i think the whole fourth how much do the network on the fourth floor for simplicity that is the homeless children network about 6 thousand square feet there is roughly for simplicity

sake 25 thousand square feet per floor roughly and so if you and who else is on the fourth floor. >> the artist space on the fourth floor 3 cases 402 a large space 9 thousand square feet that was in suit 4 hundred was packed and occupied 19 this is tending to prove or disprove but the artists were in the absolute about 9 thousand square feet. >> i'm trying to make. >> yeah. yeah, i know. >> so i'm trying to go higher proposed by floor. >> right so i can that in 405 homeless children's 404. >> with 8 hundred and 29 square feet you're getting confused

within boo ma. >> can we get an estimate of fire and fourth floor proposed artist. >> i'm not as sort familiar with tenants and the okay. we can - >> toby. >> i'm just trying to get this. >> judgment multiple voices) if you need to calculate it we'll come back to you that was office. >> that was office this was homeless children's network is did i understand by the office space use. >> how much office use. >> this was the office space. >> 4 feet. >> that had two units in that

okay one 19 hundred square feet boo ma that was packed with the technology company in the front another 12 hundred square feet 12 hundred plus. >> 9 thousand that's 9 thousand that's it that's boo ma and the other issue excuse me. excuse me. folks if in the automobile accident allows people to speak otherwise we'll have you go downstairs to the light court and catchs proceedings over the tells us in the interest of time. >> great after that proposed zero third-story third floor. >> there was is. >> is so red brick is currently

affordable housing my city attorney that's pretty impressive is red brick is there 3 thousand square feet moving them into office space. >> this says that a crown flower and crown pleasure is here this is the contractor that is the contractor yeah think the third floor. >> no it's terry and oh, keri love and this is the space. >> 3 thousand. >> who is there. >> that was elsie 17 a lot of tech. >> that was part of ronald's. >> how many square feet. >> the problem guys are tenaciously the revisions we've talked about how much the space was artists and technology and

robert was blending the tech yours of a higher rents and i'm trying to get a proximate on the third floor how much. >> 3 thousand. >> just 3 thousand square feet. >> on the third floor and the second floor the prior artists was zero. >> zero. >> and the proposed i've been calling about 6 thousand that is 5 thousand something or other are the first floor is the deter before. >> right now 6 thousand and the basement nothing before and there's like 29 hundred of storage space. >> it is only assessable from the arts space to basically happens from there the pdr space i'll let another commissioners speak. >> you want to add that up and understand the shift it maybe

less desirable space. >> allen the seismic ask her is here needs to leave in a few minutes this is the time to ask. >> commissioner antonini. >> thank you okay. a question first for brittany to substantiates the larger picture we're looking at about 49 thousand in retail and 48, 7 in office allocation or administrative and around 32 thousand 4 hundred in trade shop are on the job figures accurate. >> correct. >> good so my point is you know the main thing is trade shop and all the trade shop maybe art but the big categories we have to look at that's the decision between the owner and who is

renting at the beginning about the administrative use and he is trades shop needs conditional review not legally in there. >> correct. >> it's the artists under the category of trade shops. >> correct. >> you spoke about them being legally there nobody was legally there except the. >> by keep that in mind without the necessary approval and by studying the scope of conditional review had previously been approved in some ways they force the initial 10 thousand square feet we started at zero. >> quarry going above the 10 thousand to a lot higher than number for the use and it is

like 16 thousand if i'm not mistaken. >> i believe that 16 thousand is specified as below market rate the rest designated to trade shop could be one day be artist or another type of trade shop. >> the more than we have is the 10 thousand may have been exceeded if ten to 16 and legally permitted arts space has a low ends and the rest of the trade shop which is up to 3 to thousand could be art space no necessary commits that would be rent space. >> correct. >> pdrs has not been allots for a long time. >> that's innovates correct the trade shop use is a pr's use one of the if i pdrs use types that is allowed in the mission and ct

zoning all types of are relates relate this is not a good fit this is a historic resource. >> the pdrs has innovate been allowed a furniture manufacturing and then furniture storage many, many years ago i think by the 70s or something those uses no longer were allowed in there. >> rights nothing has been you know being demands that was legal there so that's my main question for you i think the other thing that is more for probably the gentleman or the project owners when i looked at our performer i didn't believe that includes the cost of interests for the 9 millions for the improvements sfwls an center

cost and it shows that is over a period of 9 years if i'm not mistaken. >> i think jason. >> sir, urge to have to come up to the microphone or you cannot. >> jason cbs but i assume the sale. >> that's the sale but the other other two scenarios of the performer a which you throw in the interest on the money you'll be below zero. >> zae we have an interest we'll continue to pay the problem you see the debt verses equality with what you're talking about mr. richards.

>> the question you're asking guaranteeing do you get return on your equality for the work. >> for a long period of time from the 2 percent is accurate. >> if we go with the plan prototype by the activists then, yes it becomes uneconomic to do it that. >> that makes sense thank you. i have a lot of other comments so as we've established the amount of trade shop which is going up considering and the amount of art space is going up and will be legal which it is not so, i mean there maybe discussions as to what floor the artists are on but this is something not our plays to dictate that is between the property owner and his tenants and you know, i do want to exempting comment on a couple of

things it came up the arts commissions suggestions are good allowing the artists first right of refusal very good and they suggest a master tenants that makes it easier and they don't want any tenants to play tenants improvements those are good things i wish i were a tenants with those conditions it sounltdz good things are being done we had a gentleman with information on the seismic i understand the seismic is $8 million to do; is that correct more or less. >> i'm the one so - >> just verify the fact that you know in round. >> we've had four bids and the one from plant was over $8 million the problem is the foundation of the building literally is in mud we have to

literally put micro piles and put in whole new latches so the building didn't sink okay. so this is millions of you have to the new contract keeping it at $0.80 per square feet keep them open we're trying to keep our tenants they're very nice people. >> you have to vacate the fourth floor with the steels. >> the work was done in 2000 you have the steel beams go up they didn't do that we have to take off the roof. >> i'm sorry. >> i think you've answered which i need in basic terms $8 million has to be done and none can occupy the building until the specific is done; is

that correct. >> we need those approvals we need the paralyze to do the. >> we're working around the attendance that are there we're innovates removing the tenants now. >> i'm talking about legal occupancy as opposed to tenants that are allowed to stay there for a elementary solution without schematic no afrlts at all and that would be a big loss for the artists communities and other trades uses and is business uses began in 1987 so those people that are saying we're creating business uses were not there before those best open table was there in the passive and leave businesses some of them are tech businesses not like by approving know we're creating there already in the building and all we're going to do it legalize it and make that

feasible economically for some people to stay if it didn't work but none will be anywhere unless we pass this thing that's the big problem you heard the only eviction was the peep who were camped out and it's to the permitted for using it as housing that is what the a established. >> can you give you guys one last warning if you continue with the outbursts we'll have to stop those procedures. >> we'll talk about the owner not the lease our who had sub tenants may not be there, there are two different things i'm concerned about what is going on with the owner their passerby one $. million in development selfies as a result of our

approval which will not be paid without that be being approved and 2 hundred and 10 people are working in the whole building they'll innovate work anywhere if it didn't margarita approved there is a lot of good things and i do not see why we shouldn't approve that immediately i'll see what my fellow commissioners have to say but not our position to be doing the micro parking garage who is going to be on what floor this is a good compromise pleasance of artist space and business space to make it possible he getting the continues retail space on the ground floor is in the real worlds it make sense but question don't zeal if released. >> commissioner hillis. >> all right. i'll try to deal with reality just a question on the zoning brittany what is as

of right here on the second floor what can people do? besides >> trade shop and those require fees reporter. >> general retail is permitted on the server a bar or other treatment medical services and business and professional services institutional uses and other uses. >> this is a what we see mostly open is second floor. >> right of. >> this is a unique scenario because of the size of the building really not in scale of the buildings last on admitting usually see those. >> and then can you talk about more about trade shops still i'm not clear what else qualifies somebody showed a picture what

the trades shop looks like it looks like office space. >> right i've got to expediting photos with a tenants photo and with an that actually has the tenants moved in. >> what is - >> a trade shop. >> repair apparel and household goods and awe penicillin and awe posting and office for building i mean electrical painting and roofing and painting a minor progressing including the membership multiply copy and taylor and art and crafts uses that's how the artists. >> got it a question for the project sponsor i don't know who to ask you show on the should not the

difference fine artist studios not a huge difference in dollar per square feet a $0.25 difference in terms of the market rate innocent looking at the numbers commissioner johnck's commissioner richards was talking about there was about 20 thousand and three thesis square feet of artist space. >> 21. >> 21. >> why not take some is of the trade shop that is clearly for the office space and make that artist space there are two things the important thing about the artist we're not subsidizing it so. >> we're not required. >> there is nothing footing in the zoning. >> we can afford some things but the low republicans on the retail space and the on the

outlines. >> we're approving land use jurisdiction you know category but why not take some of the other trades shop and get back to at least where we were on more of artist studios not a huge difference in income the uses don't sound like their office in nature you'll get higher paying rents maybe higher rents with the artists. >> on the overheads 20531 hundred square feet we're willing to dedicate that is art space we'll bring the totals up to 19 thousand square feet. >> what's your point with our pencil. >> thank you. >> okay. that makes the entire second floor of the artists you.

>> my question back to any question in general kwhas is difference you know you can do more artist trade shop in the economics are not difference why not do it all. >> certainly expands the pool of potential tenants they can come into the building and it gets more flexibility in the i believe thinking building to find tenants that what pay the rents as it gives us more flexibility. >> i understand that. >> they're not that difference. >> although there are a lot of artists looking for space. >> we've actually been posting the space we have not all pool we keep on posting and if we get permits we'll quick add space but needing need it our permit

was held up weigh do it quickly once and a we get a permit. >> all right. thank you. >> commissioner wu. >> so i have a question i think staff is about to answer. >> what i was going to get at commissioner hillis seemed to be talking about trade shop artists verses other use you are not approving the trade shop category this is a whole laundry list of trade shop vehicles for the craft the building contractor your approving the trade shop category which you know artists subscribes that. >> that's helpful part of the challenge that is set up a different way the conversation what is artist trade shop and trade shop other and office everyone assumes the trade shop

we've been talking about the retail component what constitutes been westbound open to the public whether you hit a buzzer and it is a ground floor space or what. >> preferring that is has to be open to the public or would be on the ground floor what is what we're proposing originally as you recall 10 thousand square feet that was the original approval think the upper wlefl not other than the ground floor that was an understanding that go be open to the public preferring in that scenario right now with the ground floor this is the ideal recognition. >> to be code compliment would you need everyone have to access to to gallery o ryan has their space they're not in the gallery

how to comply with the retails component. >> as it worked out with the conditional use authorization that's why we lumped and designated it as artist trades shop as a collective space that will be represent in the ground floor gallery within of the problems with the o ryan we're looking into whether they have a retail component one of the things the communities raised we're limiting questioning and then there was also a headline headlines headline shares think is ground floor what i had they had a similar issue it turns out that wasn't an apparel use but not selling. >> so partially the division is for enforcement purposes for the

planning department staff to see. >> this is to micro manage that. >> it runs with the lands there's no way it distinguish you know it could be become all non-artist trade shops legally. >> well, that's one the reason we have the annual reporting position to look at it is at an annual basis and make sure that it is compliant with whatever the commission decided to approve. >> mirena burns the excision is approving one or 3 i guess of the designated land use categories that are establish by the planning code the category your discussing is trade shop in our approval all you'll be doing it approving the trade shops there are a number of uses that

fall within the trades shops should you approve a square feet of trade shop is legal it is maybe artist uses today maybe some other form of trade shop use that qualifies under the planning codes few minutes ago in distinction under the trade code versus the trade shop categories we've been talking about i want to make it clear what you're approving today is trade shop not trades shop artists or other things. >> so for me the issue is about office i want to see if if there is possibility to reduce the amount of office dramatically you how to come up with the number i don't want to come up with a random number necessarily but the displacement factor

around the newer use this administrative use there's a number of permitted used in the building the crisis is not on this trades shop there is professional internal revenue that commissioners, on that motion comes to mind that is feasible so i'll see whether is the commission is going. >> commissioner johnson. >> so thank you city attorney burns for clarifying that that was one thing that is confusing me this entire discussion and the last times we spoke tomato he think we were talking about trade shops to me i don't understand why we'll be looking at the trades show uses we don't approve tenancies and the reconfiguration of walls noted part of the infrastructure of

the building you can put up a partition i want to ask a couple of question questions and want staff to answer we want to cumbersome if we approve the uses today that doesn't touch the ability of the owner of the building to continue to negotiate with the tenants over how they use the land use; is that correct. >> correct. >> i feel we're getting outside of the boundaries what the planning department could do should there be more services or other educates at the end of the day whether the fourth floor trade shop used for artists are not we really can't impose anything on those negotiations i want to put that out there for the commission thank you for we

are going that question my second question is staff is just another big question should be an you've been e objective u obvious answer and the city attorney take some time what happens if we don't approve the conditional use and this office allocation. >> well, we will continue enforcements on the building and they'll have to come up with a proposal that includes the permitted uses or some sort of modified cu composition now before you is 3 different types of conditional use authorization you have a cu trade shop and a ccii for any tenants in the building that is of thousand square feet or larger yeah. >> i'll leave it at that.

>> to further clarify the option to no to any conditional review we'll precede with whatever is in violation their option to come back with a different conditional review and say okay. we've proposed something different than on the table today to try to legalize the use or change. >> it and legalize it in a different form >> it could you describe to us. >> right. >> this is a obvious question don't approve that and i don't know we have it option we need to make a decision today, i'm disappointed not more of an agreement between the last hearing we had and then we've got it on our plate it through you guys back into chaos i'm going to come up with someone

that something that will not make anybody happen that is. >> this is up to the owner it is not up to us to negotiate each within the leases. >> can you put this on the calculations on the trades shop i guess the woman in the green hat. >> so you were indicating before indicating more trade shop that looks like there was 21 thousand square feet based on the estimates of what is actually being used now to 16 or 17 thousand. >> there were 21 to us square feet for studio 17 and the red brake it's what gets the numbers

up higher what. >> red brick it two or three feet blow 24 thousand and jim. >> recidivism an actual 4 thousand square feet and 47 yeah. >> can you comment the evidences is a good square feet of studio 17 not being used for trade shop but with studio 17 sent e-mails he have an e-mail correspondence. >> why not look ats the question he have if you can put that back in the screen the only lever the office allocation and let the project sponsor figure that outs their accountant i

guess my question back to you there was a lot of space for the subsidize rent $2 and the qualities of the space is lower so at what point you the artist community accept less space. >> we'll accept less space the qualities arts space and the other noticing not having 38 thousand square feet of office space in the mission yes, we have numerous options how to slices and dies it for emotion we never got to that we spent so much time of using about the numbers we sent them a form beforehand and never got filled out. >> whatever we come up with the office allocation the project sponsor will fourth what to do

with it. >> our position is one-on-one is a lot ofly thing to be doing. >> if we assign less office allocation it will be filled you by someone else. >> if we got creative together we'll support them pubically. >> thanks thank you. >> thank you. >> that's all i have to say. >> i think we should be looking at the office allocation and a office allocation. >> project sponsor you said you'll be willing to give it up to 19 thousand i know we're not approving that but as a part of trade shop up to 19 thousand. >> we're. >> subsidized 19 thousand. >> the totals trades shop is over thirty thousand we're proposing. >> 32 thousand more of that

could be art they have to pay a little bit more this is a pretty good deal what would you like to say. >> so first of all, the basement if quality. >> we're not talking about. >> i want to make that official. >> yes. to have fourth floor space could be a higher cost not tremendously higher but definitely higher second we understand wait one thing i wanted to say well, what was the last thing i said before. >> we were talking about 19 thousand in low costs rental space for artists less space. >> is other thing if we get a nonprofit there are two options we want to make available how to get costs back and one of them

if they get a nonprofit to manage the overall space then they can gift donation in a tax thing. >> oh. >> is the other thing the city we've talked about doing this we've been sdraj open scramble to create something like the legacy business for businesses that subsidize other businesses to they can get we can have anyway. >> do you thinks. >> i understand my point is this i'm trying to reach a compromised to satisfy everybody we've talked about the amount of space for low rent arts out of the 32 thousand trade shows i can talk to the project sponsor is interest any square footage

to get it off the fourth floor for trade shop in any price you want. >> okay all right. well. >> sir i'll have to accompany to the mike. >> we've done the market the way we built the financial model we looked at the this is an informational item and fourth floor looking at the administrative services we're calling it professional services market rate for that and if you start breaking that up the value goes down and it is hard to get assess it is not going to work i we have the miss fortune for two years that's how i feel about it is it a missable experience the most logical opposition we can't get the

conditional review for the square feet vacate the building that will end the concerns that the planning department having illegal tenants they'll be closings their businesses i'm in thrift town every day i know the employees they're nice people do i want to say it on my conscious in those minimum wage jobs no, i want to keep those jobs. >> thank you. the one thing i want to ask you we've established the amount of space that is artist space. >> 13 thousand. >> it was more than that like 21 thousand before but i'm not as concerned. >> is is didn't make too much difference what is the amount of square feet for office space. >> open tackle from 2000 to

2000. >> in general terms the 10 thousand square feet of artists space war or was 20 from 2000 to 2000. >> i'm trying to establish. >> 4 thousand plus. >> they have been (multiple voices). >> everyone that is moaning about the office space it is going if to 40 thousand they have as much right to be in the mission and they'll allow this building to be retrofit and remain and provide artist space so i'll prepared to make a motion to approve that with the designations of the various space retail administrative, and trade shop as was presented to us by staff with the understanding of finding as part

of our record that the project sponsor has said he will rent a anytime of 19 thousand square feet at low rents which is give me the amount. >> $2 or less. >> well all right. okay but it is beginning at 2 bucks a square feet so that makes sense to me because i've established already the increase in the amount of real office is relatively small from what was under before and all we're doing it legal listing what is already in place and guarantee a sixth amount of art space and trades and others artists some of the at artists can continuing of the trades shop for the 13 thousand square feet at a higher rents that's my motion to approve. >> commissioners do i hear a

second and deputy city attorney mirena burns if i may jump in with a question i made comments about the rental amount we can't dictate rent in buildings we can't have anything deemed rent control. >> that was not part of my motion i wanted to establish for everyone here kind of what we're limiting talking about which you say low because they've committed a certain percentage essentially i need perimeters we're not making that the right of the motion. >> you're clear not a condition of prevail. >> a finding everything has heard this when every year whether we check to see how much artist space in the this i think so there is an annual check that

has to be at least 19 thousand square feet that's my motion even though this is not a condition. >> i'm sorry you can't say dictate why artists versus any other type of trade service and not have the finding abducting the amount of the prophet. >> maybe the project sponsor can say something not as a condition but one more time i've heard that spoken about the 19 thousand square feet. >> for the arts commission to pass to the artists in the building the artists want to come back to the building that that is square footage which start 165 we're willing to go to

195 we'll rent we're pubically making that commitment. >> you were at 156 now the offer is at 195. >> it is basically zero rent. >> okay. but even though basement is not considered artist space with no light and. >> sorry it is zero rents space. >> what's is square footage of the basement. >> 29 hundred. >> the footprint of the building is roughly 25 thousand. >> correct. >> okay. and made a motion other comments that may be helpful commissioner hillis. >> just back to the issue of tread shop and the subset of artists trade shop i get the

advice we're getting but still courage us to include in our motion because it is called the artists category of trade shop is called out 7 types of trades shops none are similar to the artists so to me the most important thing to if we're going to approve 32 thousand plus square feet of trade shop i want to see what was there before the 21 thousand square feet used for the sub category of artist and morning 29 beyond in the basement level so of the 32 thousand plus of the trades shop at least 21 thousand be used for category 7 of other arts and no longer than 29 hundred

square feet being in the basement. >> so this is a my kind of opinion on trade shop it would keep us where we were as far as the artists and the sxht with the property owner we've heard it and then for the office space i mean, i'm less concerned about that designation knowing what is existing allowable use is it is the administrative services versus the accountants they rents from innovate that much of a designation for me so that would be all to see that in a motion what i said before about the 32 thousand square feet of trade shop with 21 thousand. >> i'll accept that as an amendments the clarification i need is with be 21 thousand

total go again, we're not can't say make a motion to that amount i think we can continue it. >> with the city attorney we can't. >> we've put all kinds of things to limit people's hours telling them to put things on the door that language it is important to put in. >> city attorney. >> deputy city attorney mirena burns i apologizes i was consultant with the staff about a different question i'll have to finding out find out what the question. >> i made a motion we had the project sponsor make a commitment part of my motion didn't include the sub educator of artists in trades shops commissioner hillis wants to include a sub category in the motion of trade shops being 21 thousand square feet being arts along that trade shop can we

have a sub category. >> i'll let staff speak to the carbon but mines that the zoning educate designated under the planning code is trade shop and one of the uses that qualifies as a trade shop are the artist studios but a number of categories. >> if i may there is the planning code does specific under a trades shop artist is one of the committed uses. >> along with other uses. >> didn't list those other uses. >> i'm not changing the code we say at least 21 thousand within the category of trades shops there are enforceability issues we're determining what is the trades shop not carpentry those are distinct categories.

>> again, if i may section 790.124 under number 7 it says specific others artists and craft and fine arts can on this fall under a-7. >> the concern we've been discussing with the city attorney is that it is no different under the retail category distinguishing been a bookstore and hardware store we were looking at possible trying to tie it to the ccii sxhoents of that specific tenants pace at the end of the day your approving the trade shop that is a trade shop tenants space with the higher size. >> if i'm hearing he said the concern and i understand the

legal concern but the difference there are 7 distinct sub uses if i can call them that under trade shops lilsz in the code the question why the commission can pick out one this is different the code didn't necessarily say every possible use of trades listing out it there. >> we have definitions that clear define the titles and subdivisions right those are listed in the trade shop not tied up to be not intend to be their individual uses only springs of trade shops from a planning code prospective they're still a trade shop maybe a retail category that has many types of retail and the code may

include a shoe store or bookstore from the land use prospective that is still a trade shop and advise given that we can't separate this out. >> yeah. they're pretty distinct you'll have to make a determination whether an artist studio is a trade shop it is a trades trade shop i get did maybe not the most i know kind of cleanest way to do that we do a lot of things that are not clean i want to put it both the conditions. >> deputy city attorney mirena burns you'll take an motion of intent to approve and provides

important legal advice i'm not prepared to give us advise 0 on whether or not that is combooshl. >> commissioner richards. >> so would you be kind to put the breakdown of the building on the overheads the 3 thousand square feet for the additional trade shop does it come out of the trade shop notice. >> out of other trades shops. >> because it's the same thing. >> we don't know or think that is. >> i'd rather it cut of the officer. >> the configuration doesn't lends itself it that. >> we're going to got out of think office space the existing use given up 11 thousand square feet that will solve a lot of the issues and we can't say agree it that given the

economics of that building we can't say agree to that. >> okay. thank you arrest commissioner johnson and thanks. >> so i agree with the sentiment of commissioner hillis unfortunately, i can't say agree that that only we have seen public comment and focused on one gifgsz of fine arts but there are pleasance of other arts and craft uses that fall under the dpifrgz of a trade shop any kind of sculpt that could be considered carpentry or whatever printing or considered other one of the other arts i have to go not because of the city attorney legal advice not make sense one trades shop versus another we hope that

space will be for the artists and tenants and the kind of art they do i cannot be present to splitting hairs it is not helpful. >> commissioner antonini. >> yeah. i was going to i have one motion maids i've not heard a second on the monoxide for that approval i'll okay with a intent to approve it sounds like that is what you're advise is from the city attorney. >> and then it also could take into account maybe ask the burning to have a possibility of taking a little bit off the office allocation i know you didn't like that i'd like to get this thing passed if we could shave 2 thousand square feet off

that it might make that doable my motion would be i'll wait to hear if you. >> my clients with indicated that within a third year with an will be available to add ta to the trade shop for the trade shop in number four. >> how much square footage. >> that would work my motion of the approval of the office space and allocation would be 46 thousand 60660. >> second and that's new i want to be clear this is a including now adding the thirty 1 suit. >> taking it into office to trade. >> got it. >> did you not take my language. >> this is a separate motion because there are two separate

things front of the you have us 42 thousand plus and brilliance the office space down we took 2 from one and down to another. >> what is that. >> as far as the other motion i'm fine with your amendment commissioner hillis. >> okay. >> just based on the city attorney's advise is that a motion of intent to approve with those conditions. >> the office allotment is a motion to approve. >> only one motion. >> only two motions right two separates the office development and the conditional use authorization just. >> i'm separating them i don't see any reason not to approve

the office allocation and maybe an intent to approve the other. >> if i may i can summarize perhaps to approve the allocation and is office space for the remaining to go for the additional trade shops recidivism 32 thousands of trade shops with the use of approvals as is and with the finding you'll courage the project sponsor require not require but courage the project sponsor to use the trade shop space for artists. >> lease 21 thousand. >> that sounds like it is good. >> is that to encourage the first. >> i had the original motion i think you know if we do courage we could have less of a problem the project sponsor what we're

saying i know it is something we're novelists making it parts of the motion but speaking to it. >> i'll courage to you to pass the motion. >> if so it doable i'm fine with the motion as prepared. >> is if amenable to the folks. >> that's my understanding from the maker of the motion. >> absolutely. >> commissioner johnson. >> sorry i'm actually sorry can we restates the party in motion in the finding are you zigzagging we courage the pardon to includes up to 21 enthuse square feet of artist space. >> yes. >> or 21 thousand.

>> a minimum of. >> a minimum of. >> no less than than i want to make sure we stated the position a couple of times. >> excuse me. excuse me. we're almost there. >> (laughter). >> commissioner richards. >> okay. so let me summarize what i think i'm hearing taking some of the rail storage and assigning it to trade overall in the building i'm just playing with the numbers so the fuentes of the alleged office and trades in the retails basically, we're going off of 8 thousand square feet down from office again and retail and i'd like if you can do it in 30 seconds ma'am. >> do you have one comment

we're having a suits and how much square feet. >> it is 17 hundred something. >> one question i have is that the reds brick studio they talked about them extending it in the proposal that is all office just the last piece of communication their considered all administration. >> go ahead. >> so what we're planning to side since we want if i get hit by a truck we want them to be and $20 we want to move them both the 5 years space with to dollars with 5 percent increases we do pink e things question do it so we actually set those people up with the $2 if someone else comes look they're not stuck doing it you understand

what i'm saying we're morally trying to do that. >> so we'll move red brick into the artist space. >> sir i'll give you the courtesy. >> commissioners we have a eastern neighborhoods plan that accepts the pdr plays trying to preserve those pdrs spaces we're limiting asking for stabilization plan a within for one we want to think long term if you want those hearing go on for hours about the 2 thousand square feet it is not acceptable to the community that's what you're heard. >> mr. medina from 24 thousand square feet of trade pdr trade to 33 we're actually combup 34. >> commissioners we had an

opportunities to negotiate and the square footage came down from 24 to 16 thousand it the not no good faith we said more time to negotiate in good faith the artists are eager to bring all kinds of creative proposals they've had this building with seflt years with a lot of illegal used for years without enforcements we're trying to have an elements blue print policy to we're trying to safe you the tribunal we're coming together not just foyer housing but for office and retail space if i look at the plan we've had a 4 unit loss of store they've evicted the dollars store across the street has a p t a a i've heard from the developers i'm

looking for a long term policy we're very tired our tired we want to elementary policy commissioners and director ram can you comment on the fact that the policy and what it is. >> we're working on that you you know that gabriel in the meantime we have projects we have we can't ignore the situation we have there is buildings out it there and issues to address in the in the meantime that is the fundamental issue we're dealing with i agree we have to come up with a longer solution not north america gating before and after this is the realties of the life in san francisco we're not going to come up with a magic bullet. >> i respect that you central selma has a compromises a one

for one replacement. >> we're close it that gabriel in the meantime we're trying to say less get as close as possible. >> i disagree the typewriters two are artist space now in the basement floor. >> i think we're arguing over a few thousand square feet. >> we're arguing over a precedence we don't want to have sponsoring for all building. >> our office. >> (multiple voices). >> i appreciate the conversations and the mission 2020 plan will continue it while that artist group is here what will happy you guys have to buy a little and take destiny in our

own hands i don't know how you do it but another building maybe filed with folks like you, i love you but protect yourselves and try to call your own spaces commissioner antonini. >> oh, yeah. i was going to make a points we wanted to try to preserve the space being bused and the artists on a pdr is permitted we're not replacing you may give legally permitted but trying to establish 21 thousand square feet or of use that is now not illegal interest this is the purpose of the motion. >> excuse me. >> please okay. i've never had to clear that room i'm opposed

to doing it tonight all right. commissioners there is a motion and a second to decrease well, to approve the project as proposed decreasing the office allocation to 46 thousand plus square feet and increase the trades shop square footage to recidivism 34 thousand plus square feet okay with the finding courageously that no less than 21 thousand square feet of that trades shop square footage be allocated towards artists okay this is a what i have. >> commissioner moore. >> i have a question do you have is numbers and the percentages up and down i want to see is relevant distribution did you do the numbers.

>> the numbers goldman's i want to see the absolute numbers. >> 46 and 660 and the trades shop is approximately 45 thousand plus that includes the artists and trade shops and other trades shops the retail stays the same 49 thousand your 345 and did trades shop 345. >> yes. >> okay commissioner johnson. >> yeah. just want to make sure we have two motions 3 motions to approve above 6 thousand. >> this is a part of conditional use authorization i thought that was a separate motion. >> one for the conditional use authorization and the office authorization. >> i thoughts there was two

cus. >> shall i call - and commissioner moore. >> that is the most difficult thing i've ever deny we're trying to went from we're devising numbers what we are doing the best compromise we probably can talk about tonight by far from policy there's the policy too late and the legislation too late probably the comment commissioner johnck's maids about the degree of gents cancelation in the area 19is more than a red flag a titanic halfway underwater and not sure what what we are doing it is not necessary i hope that director ram we will work as quick as we can on formalizing firm policies that leads directly to legislation by

direct communication because if so almost too light and not everyone will find a space will agree to submit rents either because we can't say enforce that in residential such as we would like to do that. >> commissioner johnson. >> sorry i hope it gets to the motion i know i sound tested i didn't i supports pdrs and other uses in office he think the unfortunate thing about doing project by project we can't say make legislation here we have to continue to side our work and you guys continue to work with the policy to we can't say exteriors we can make it exist i don't think that is dwoolt this building will be here but tonight that's not what we're

dealing with thanks everyone for coming out and staying so late. >> call the question. >> okay. is everyone done (laughter) there is a motion and a second to approve that project as proposed with the modifications of the office allocation be reduced to 46 thousand square feet plus and the trade shop increased to 34 thousand plus square feet courageously that no longer 21 you thousand square feet commissioner antonini commissioner hillis commissioner johnson commissioner moore marry no commissioner richards commissioner wu no and commissioner president fong so moved, commissioners, that motion passes that that item passes 5 to two with commissioner moore and commissioner wu voting against. >> shall we take a brief break. >> that's

allocation. >> all right. good evening again and welcome back to the planning commission regular hearing for thursday, september 3, 2015, commissioners we're still under your regular calendar on items 14, 15 abc d and e for says numbers at 45 howard street a certification of the final environmental impact report accepting the authority adapting the vntdz of the california environmental quality act

depreciation of compliance request for the discretionary reviews and a requester for surveillance please note that the public hearing on the draft eir is closed the public hearing end on 2013, the public comment will be received during the comments, however, comments are not submitted in the final eir. >> commissioner moore. >> commissioner president fong i need to ask for recustodial on items 14 and 15 a through e i have a long percent and have an ongoing w relationship with the firm with the city attorney has advised me to ask for recustodial. >> okay. is there a motion. >> move to recuse commissioner moore.

>> on that motion to recuse commissioner antonini commissioner hillis commissioner johnson commissioner moore and commissioner president fong so moved, commissioners, that motion passes unanimously 5 to zero good evening, commissioners depends on with the planning the item is a environmental impact report for the proposed project obtain 45 howard street a motion before you and the draft eir was pushed and the public hearing and the draft hearing was helped in 2013, the public comment closed on september 23rd, 2013, the response document was distributed an jill 82015 since the publication the project sponsor has indicated the proposed project as described in draft eir is no longer the preferred project the prefrdz project is codes compliant alternatives that is similar to

the alternative that which is analyzed in draft eir the design code compliant not alternating any of the xurgsz conclusion it meets all applicable after publication of the draft eir it was amended by starting the parking impacts the residential mixed use residential employment center project logged on within transit prior area of this project should not be significant therefore the impact on the aesthetics and parking were removed from the eir and the discussion under the tops was for determination the planning department's updated the approach for the sea level rise no sea level project on the

site with the impacts of the proposed project in the draft eir was for the code compliant to less than a significant level, however, the shadow impact often that rincon hill park and on spear and how are you intersection will rain under oath the commission needs to look at this pursuant to ceqa should the commissioners approve that is the code compliant i have the shadows initiative that was k34u78d with an updated shadow study at the request of the project sponsor and unrelated to the eir the shadows analysis makes use of requirement and shadow technology to model the refusal screen will use the shadow on rincon hill park, and, secondly,

that adds the shadows under construction that have been built based on the conditions of the eir in 2012, the results presented do not change the conclusions are presents under the eir the staff represents the commission adopt that that certifies the constraint and the file was complying with the ceqa guidelines in the admin code public works i'm available to answer any questions and tina chang is next to presents. >> to merge 270 approximately 20 thousand square feet plus in size for the location

approximately 3 hunters point and plus square feet under the rincon hill plan area the new construction of a new 20 story over the garage 2 hundred and 80 thousand square feet plus with approximately 58 hundred square feet of retail square feet and bicycle that concludes my remarks the residential units will have 36, one bedroom units and 72, one bedroom units and 3 bedroom and 4 bedroom units it is located on the howard locations it is located on the south west corner with the s p zoning within the discount trillion transit downtown and transit

center a small triangle portion the lot 35 is rumored to lot 35 for the development plan falls under the office of communities development and ocii the pardon will provide a design the project first i'd like to to touch on regulatory issues in order to proceed four action by the department includes one adaptation of the ceqa finding and two the commission acceptance into ocii so far the requirements on the 3 hundred plus on the southeast corner site and finding of the compliance with south beach development review are include in the drafts section and conditional use authorization please note the subject property on the rincon hill is for the 3

hunters point plus square feet rather than the entire site it was approved nauchl by the investment & infrastructure on july 7, 2015, the commitment was constituent with the draft resolution to accept it in your says pauktsd submitted in july i have a revised draft of the resolution here for you the only change they reflect today's today the are the third action item the dounlts authorization under the section thirty 9 for the granting of several exemptions from certain finding the project last requirement for the rear yard and upper tower extension and both lemons the compliance for each section is in the motion in the packets but

the department believe the requests are warranted and established in the code fourth the the conditional use authorization for the provision for principally permitted amazes and section code for every parking space and the conditional use authorization is for up to 3 patricia's for every 4 dwelling units the proposal is for 67 are pertaining permitted and 3 are cu compliance with the criteria per section 157 f included in the draft packet but again, the department finds those are satisfaction and it is necessary and desirable but it adams hundred and 33 new housing stock it has configuration housing and replaces the garage an increase

utility and present more than that active and professional streetscape the project also requires the planning code to allow 39 of the hundred 33 units to have exposure under a third private terrace not considered the code compliant rear yard and section 4445 into 27 feet which is more than 20 feet as permitted by the subsection the zoning administrator the assistant zoning administrator will excuse me. provide thought after the commission provides the determination of conditional use authorization request. >> with respect to public comment staff has received had 9 letters of sport from the chamber of commerce and housing action coalition and healthy and

san francisco building council and the bayview council staff has received 3 letters of opposition from the rincon hill favor the park that is containing 3 hundred pulse signatures and stuart street and the embarcadero association it should be noted in the recent memo their character as a letter of support they calls and clarity that was an informational letter only therefore staff get one letter of opposition from the heights association in 2013 this letter was reference not in the packet that was referenced the project not the subject project that is proposed today with the exception of the letter from the billiard project the boulevard