ipo which is speaking that day after the same families to help that happen and now an ever widening circle of friends. of course, well deeply in debt to chuck schwab for his incredible leadership. his commitment to excellence in everything he does good we all blessed by your leadership, >>[applause] >> to the fisher family, what a remarkable thing. doris, it's all beautiful. it's a beautiful good i agree with bob, john would've had some other little thing going. but you to all the fisher family, thank you so much. to neil-are we blessed to have him? isn't he just wonderful? >>[applause] >> i saw the opera house and ballet in oslo how beautiful and now how beautiful this is good we are so honored that your cultural minister is with

us today and counsel general. let me just say this. the mayor talked about how important this is for the city and what an important date this is for the city and it is indeed, but the important day for our country as well. president kennedy said the life of the art are very close to the core purpose of our nation. this is true and even our founders recognized that way back when. john adams, just about four years after nation was established, you go to abigail and he said to her i must study war and politics so that our children can study agriculture and commerce, other subjects, so that their children have the liberty to study music and art and painting and porcelain and tapestry. he went on. but that was about our country's commitment to make i think giving more opportunity to future generations. that is the core of america. but even at that time our founders john adams saw that more opportunity in the arts with central to our

country. so, here we are on this day. this great day where san francisco once again continues to affirm its leadership in arts and culture. much as in the nation but the world. i love what i heard what chuck said, chairman schwab said in his remarks about the children, the mayor as well. the opening of this building in san francisco sf moma has made a commitment to children so that they as john adams would have loved to hear, can have access and be exposed to the beautiful world-class art. the incredible collection of doris and john fisher and her family being central to it. those children will see freedom of expression and learn to appreciate it around them and inside of them. that freedom of expression is also manifested in our city by having so many artists. greg, with so many artists in san francisco in fact san francisco

is the city that gets more grants from the national endowment for the arts than any city except new york but there 10 times bigger than we are. but that free expression in our city is just a continuation of the value that we placed, and i can't help but thinking of the poet shelley said the greatest force for moral good is imagination. imagination. to see things in other ways. here we are, this living temple of imagination. an inspiration for all of us to be creative in our lives, in our work, for our country, for our children. a champion of all of that creativity and inspiration is a great director, neil-glad the privilege pleasure to bring him back up. >>[applause] >> congressman

-congresswoman-sorry, what beautiful an absolute inspiring words. thank you so much that i like now to do is invite chuck and bob, mayor, craig, up to the podium. we don't cut with interior sf moma. we do things a little bit differently. okay. what's up with open this museum. >>[drumroll] >> >>[loud celebratory music

>> ladies and gentlemen let's

give a warm welcome to mayor ed lee, san francisco unified school district [inaudible] and mayors 2016 teacher of the year award winners. mr. mayor. >> thank you runel! you are such a lead er in our community.

thank you to the san francisco ginets and all of you who support the teacher. i want to thank deputy superintendent gureeo, the supporters and principle of the year awardees joining me to honor this years winneroffs the mayors teacher of the year award! [applause] it is my pleasure to acknowledge and honor the dedication of our sue purb public school teacher ez in san francisco. the 5 teachers being honored tonight were nominated by parent, student, peers, and community members who understand the value of a excellent teacher. the teachers standing

here have a exceeded all standards and dedicated themselves to creating classroom environment that fosters learning, diversity and character building. these teachers are shaping this generation of youth into leaders who will create a better world. they have one of the most important jobs in america and this award is the symbol of our emanse gratitude for their work. in collaboration with san francisco education funds, thank you a teacher campaign, it is my privilege to present this years teacher of the award winners. >> thank you mr. mayor and fans join me in congraltulate our winners from presidio early education school,

raundsa jefferson. monroe elementary, mark rosenburke. argoney elementary school, cathy angs. from james lick middle school, hell nu[inaudible] george washington high school, [inaudible] congratulations to all of you. now, san francisco unified school district deputy superintendent quadloupea [inaudible] >> congrat ylshzs to mayors teacher of the year. these 5 teachers standing out here on the field are incredible educators. they are our mvp. they are dedicated, hard working and innovative and our student benefit from their talent in the classroom. to all our educators in the san

francisco unified school district, that is teacher, paraprofessionals school leaders and support staff, we thank you for your dedication to our young people of san francisco. we are very proud of and. because our teachers of the year are such team players zee a baseball cap for each of you to commemorate this very special night. i want to also thank on behamp the san francisco unified school district the giants oreg nation and wonderful supporters of the san francisco public schools. let's go teachers! let's go school principles! let's go giants. >> one last roundf of iapplausees to celebrate our teachers tonight. thank you and congratulations again.

>>[gavel] >> >> there is our slide.

>> this is a regular meeting of the small business commission held on monday, june 13, 2016. this meeting is being called to order at 5:30 pm. tonight's meeting is being televised live in a small business commission thanks media services and sfgtv for televising and airing live the commission meeting. they can be viewed on speed tv channel to channel 78 or live stream by going to sfgtv.org and click on watch sf the of td two. members of the public please take this

opportunity to silence your phones and other electronic devices. public comment during the meeting is limited to 3 min. per speaker. unless otherwise established by the presiding officer of the meeting. speakers are requested but not required to state their names completion of the speaker card while optional, will ensure proper spelling of speakers names in the written record of the meeting. these deliver speaker card to the segregated additionally there's a sign in sheet at the front table aa to be added to our mailing list. >> before we get started i will just do our normal preamble as is our new customer we begin and end each small business commission meeting with a reminder that the office of small business is the only place to start your new business in san francisco and the best place to get answers to questions about doing business in san francisco. the office of small business should be your first stop when you have a question about what to do next. it is also the official forum for discussing policies projects and other items that affect small business in san francisco. so we invite everyone from the public to come here and express any issues or concerns you

have. best of all, all of the servers of the office of small business are free. so if you need assistance with small business matters, start here at the office of small business. thank you. >> item number one, call to order and will call. commissioner adams, here. dooley-she's on her way. commissioner dwight, here. ortiz-cartegena is excuse. commissioner tour-sarkissian, here. riley, here. transgress , here. mr. pres. you have a quorum >> great. if i may, general public comment [inaudible] for those you been here before we sometimes begin the meeting with public comment but we are going to let general public comment is item number 11. just fyi. item number two >> item number two, approval of the july 27, 2016 draft regular meeting minutes. >> commissioners? moved and

seconded. all in favor >>[chorus of ayes] opposed? >> approved. five aye and zero nay. item number three, approval of the september -parting >> september 14. >> yes we should take- >> sorry. so, we are taking care of some past minutes here approving them. if there's anyone who like to comment on item number two, which is approval of the july 27, 2015 meeting minutes, you may choose to at this time. any public comment. seeing none, public comment is closed. on to item

number three >> item number three approval of the september 14, 2015 draft regular meeting minutes. >> commissioners? >> we should take public comments. before taking a motion. >> any members of the public like to comment on item number three? >> all right seeing none, public comment is closed. commissioners? moved and seconded. >>[chorus of ayes] opposed? >> passes unanimously >> now that we done that anyway like to comment on this item? so public comment is closed. item number four >> item number four approval of the april 25, 2016 draft whether meeting minutes. >> when anyone from the public like to comment on these minutes ? seeing none, public comment is closed. commissioners? moved and seconded. all in favor >>[chorus of ayes] opposed?

passes unanimously. when anyone in the public like to comment on this item? seeing none, public comment is closed. sounds all little weird but got to do it. item number five. >> item number five, presentation and discussion on board of supervisors file number 160639. initiative ordinance business and tax regulations code 3/4 cent sales tax. our present to be jason elliott deputy chief of staff at the office of mayor ed we lee. >> welcome jason. >> there we go. >> no, not yet

>> testing. testing >> there we go >> good afternoon. my name is jason elliott on the deputy chief of staff to san francisco mayor ed lea. thank for having his presentation today in the hopes that you can see the second half of the game. i'll keep my comments short and reserve your time for questions. as was described,, the mayor, along with supervisors john avalos, weiner for whom a representative is to address you briefly as well, supervisor mark and joe and jane kim sent several months working on drafting a proposal for this november ballot to increase the city's sales tax to fund priorities related to transportation and homelessness, and we are happy to have put forward a consensus measure and we know seeking the support of this commission, many other commissions. the board of supervisors and ultimately the voters of the city to raise the city sales tax by 0.75%, the currently sales tax is .8 .75. the state

will be reducing their portion of the sales tax by .25 and then we would intend to increase the sales tax by 0.75. after all that is done, we would be looking at an effective rate of 9.25. by way of comparison, even with these increases were proposing and i'll get into the uses in a moment-even with the increase we are proposing, we would still rank fifth of the nine big cities that surround us including oakland, berkeley fremont, san mateo, daly city and san jose. certainly, we know san francisco likes to be number one. when it comes to tax rates. that's maybe not something this commission would seek in this case we would not be the highest effective sales tax rate of our major bay area big-city neighbors. so, the tax itself, as i mentioned, .75, would raise approximately $150

million a year and growing by inflation and by growth in the economy. we are basing all of the uses off of 150 million-dollar round number just to help the conversation. so, within that $150 million were looking at spending about $100 million more on transportation related improvements on the city. broadly, that's about $50 million a year to the mta for a variety of things including a bus is commanding facilities, and service expansion. about $35 million a year to street repaving, good old-fashioned street repaving and pothole repair and about $50 million a year to fill some of the city's regional transportation commitments including two bath and caltrain. at approximately $100 million for transportation and the remaining $50 million will be to fund expansions of

the city's spots to homelessness. they're not use categories specified the way there are for transportation, but within the homeless bucket per se, we would look to spend most of that money on expanding the navigation centers, on solving the family homelessness, on creating more housing exits as we: an permanent supportive housing building. that's really the broad breakdown of course am happy to answer any questions about those categories that commissioners have. i will just mention that the mayor has a-i'm sorry. i should also state proposing a 25 year sunset on the stack. in 2042, it begins in calendar year 2017 and would sunset in 2042. i'll just mention in california, jurisdictions can only add 2% above whatever the state tax rate is good that's a cap. we would not be--there are 11

jurisdictions that i've actually received legislative approval to go all the way up to 10% and we are not one of those jurisdictions we don't intend to seek that approval. those jurisdictions that allow to go to 10% include alameda county contra costa, la county, in several cities, hayward, union city we go, rivera and southgate. those places all proved to be a 10%. we are not as i mentioned were not seeking that approval. so, before i answer questions, they to invite any time and from supervisor scott weiner's office to make a brief statement in support. if that's okay? >> sure. >> i could on any from legislate away from the scott weiner. i will highlight our office has been working closely with supervisor avalos and supervisor farrell beginning the expenditure plan. in addition to just a lot of making sure this gets on the ballot smoothly. putting a lot of time into this without biggest interest of being seeing that there is dedicated sustainable dependable secure

funding for transportation. having a secure revenue source is important especially in these longer-term infrastructure focused master plans. money going towards part. money going towards caltrain bagels. towards the muni equity strategy, towards preventative maintenance for muni vehicles. money going towards mission zero and complete streets by safety, etc. so, definitely in support of the sales tax for transportation and, i'll answer any questions. thank you >> all right. i have a few questions. so, presently, the state of california base rate is 7.5. is that correct? >> currently, the state base rate as of april 1 of 2016 is 6.25%. >> >> 6.25% >> correct

>> so are already above the 2% cap? >> the locals raised sales taxes 1.25% and the special use tax which includes parts and schools which is not general fund, is about >> those those were not-and those were not instituted by the county is san francisco. those are regional? >> there is a dude by the county of san francisco but they don't fund general government purposes from the general fund such as homelessness. >> all right. so there's been a lot of emphasis on this theme dedicated phone. my understanding this is a general obligation bond. is that correct? >> if the general-the way that we have chosen to move forward is to propose two pieces of legislation and i don't know technically which are hearing

today but there's actually two different files. first is an initiative ordinance to raise the tax itself and then there's a companion charter members which is supported by the same group of elected officials, there were actually great expenditure categories and would act as a baseline for the earliest social uses i mentioned ashley two separate measures. >> so we asked the public to vote on dedicated funding we require a different percentage to pass that. is that correct? >> yes. there's an option to have a two thirds vote threshold measure, which is a dedicated tax get what we propose is a general tax. >> but we, so we are going to pass a general tax with 51% vote and they were going to a charter amendments to dedicate this funding? >> that's accurate >> a lot of and this is on by your colleague there on the making sure that we preserve funding. well, what you do that is two thirds vote for dedicated funding and charter members can be rolled back by

the subject of administration, cannot? >> no. only the voters can change that charter amendment. >> only the voters >> in other words if the charter amendment was to pass which really doesn't know future administration or board of supervisors- >> the charter initiative is a ballot initiative? >> yes. i'm sorry that was not clear. >> okay. i am new to this so it's interesting to me that we are trading two thirds votes for two items that require a simple majority. is that what i'm saying? >> sorry for interrupting. we have done this in the past including with housing trusts created $1.5 billion housing fund in the city back in 2012. there is precedent for this. >> okay. the other thing is, and i don't know if will hear from anyone from our merchant community as to whether they have an issue with raising the sales tax for that much. so, we

are basically taking-particular quarter percent but california's rolling off this proposition 30 is some setting that quarter percent. we will take that for ourselves because what goes to the state [inaudible] because it's parsed out across all the entire state. so we will we claim that and add another half a percent rather than seeing it decrease in our sales tax which we would see this did not exist, we will see a half percent net increase. that's the net. >> that is accurate. would look at pain have a similar dollar for your cup of coffee. >> okay. commissioners, any questions? >> i have a question. this reduction is going to take place one? >> at the end of the calendar year, december 31 >> these two pieces of

legislation have to pass at the same time. if one does not pass-x ln. that to me. how was i going to- >> sure. the intent of both on this november's ballot. in the charter amendment, which great expenditure categories there is an option for a unilateral option for the mayor to cancel the baseline. to cancel the charter amendment, if in looking at the city's revenue picture the mayor doesn't feel those baselines are fiscally booted. so there's an option for the mayor to, in other words, the sales tax would you not have server some other reason the mayor would have a one-time option to not have the baseline expenditures move for. these are scenarios which we are losing and will to win these measures. >> you will to win. >>) >> i just want to know how that's when to work. if you have to pass at the same time, for your goal to be reached, correct >> that's right >> also, with these take effect

simultaneously with the sales tax with the reduction of the city government waived not personal tax goes down and goes back up again? >> that's a good question for the controller's office which i cannot give you a definitive answer to. >> burgess will need to know,, and all of us will need to know where selling online, red brick-and-mortar to adjust the tax tables in concert with whatever changes are happening. will need some guidelines on that. >> i will make a note of that. >> actually entered-i actually two questions. one was about a sunset provision answer you're building a 25 year sunset did i won't be around for that one probably. then, provision for release of california were to raise its base rate but i guess that's implicit in the 2% cap unless we were to pass more dedicated funding. is that correct? >> if the city were to pass

the measure that were proposing for this november ballot there would be no more room in the city's ability, local ability, to pass new tax it. >> but in advantage of this being general obligation tax money is it contributes to the 2% cap >> that's correct >> if we make this a two thirds vote dedicated tax, that would leave room for additional tax general obligation tax within the 2% >> that is possible. if were to be a tax that were run through the county transportation authority for example. so it sort of, yes. to answer the question >> i'm just trying to-i think my concern is a merchants and is a vocal citizen is that we are creeping up on 10% here. i

don't want to be the first one to go there. >> and we are not, commissioner, opened as an effective rate right now of 9.5%. as i mentioned, a number of our neighboring cities including berkeley and fremont are also up at the 9.5. i read off the cities and counties that sought legislative approval to exceed that cap, as i mentioned we don't intend to do that. >> all right, commissioners? commissioner dooley >> have you done a report on possible impact on big-ticket items in the city that might be impacted by those dollars leading us to go to another area that would have a lower sales tax? >> we've asked those questions. there's a use tax oh sales and use tax not an expert on tax law. i do know there's a controller's office person who can help me out on this one, but as i understand it, it's a sales and use tax and if you buy a car in this vein,

wherever those car dealerships out, and you intend to use it in san francisco if it paid that san francisco use tax. that's my understand is just that question. also, the point i was trying to make is that there's a number of cities that border us in the bigger cities around us that don't have a effective tax rates that are significantly below ours. we might see on the state border where the taxes is 8-10% lower 20 min. away. we simply don't have that situation. >> the old buying in your car in oregon, chad. >> that old trick. >> commissioner riley >> i mentioned the 25 years. why 25 years? is a reason for that? >> that was a product of discussion between the matter supervisors i mentioned earlier to create a revenue stream that's long enough to make some of the investments we want to make because this tax has been discussed is intended to fund infrastructure projects the purchasing of new vehicles, many things that we look over a long time horizon to fund as was the number of years exactly

25, that was simply a point of discussion among elected officials and that's where they chose to link it will be happy to take any feedback the commission thinks that that's too long or too short. we welcome feedback. >> well you are saying it takes 25 years two, which we want to accomplish? >> well, i think it would take longer to question everything we want. i think we always have to keep working to build a better immunity system and fund parts and build more homeless housing. certainly, these are longer-term investments that we want to make and so we have one of long time horizon to look out over sort out trying to buy a ton of stuff in your one and two and having it sit around on use. it is as a longer planning horizon. >> thanks >> commissioners, any other questions or comments? okay so thank you dennis. will open this up to public comment. any members of the public that would comment on this item?

just a reminder public comment is limited to on these items, 2 min. is that correct? >> 3 min. unless you- >> okay 3 min. just so you know you'll get a gong 30 seconds left. when not trying to be rude but if you start to get the gist we have certain rules to follow here and so 3 min. is the limit and it will interrupt you at the 3 min. and use my proverbial hook to pull you off the stage. we encourage people if you have comments in advance i come down and read them into the rut. you're here to get it on the record so you don't get any demerits for reading here. it's not the academy wants. just get it on the record. >> my name is eileen broken, parkside resident. i'm opposing the three-quarter cent sales tax and its regressive and impact low income people the most. also, it's not clear at least that one point mta was paying for their own, you know,

proposal for a half cent sales that. it's been combined with something else or is this in addition to what mta is asking for a have sent? that's not really clear. so, whether there's one or sales to taxes. but, did the proposed sales tax initiative are in addition to in november will be a parcel tax for trees and this would be in addition to the recent parcel tax for dave restoration, so we just seems that this feeding frenzy when it comes to new tax. >> thank you. next. >> stephen cornell. i just want to point out that proposition 13 was passed. a lot of us think it might be a bad thing, but it was passed. that's the will of the voters it was real specific. you need two thirds vote to pass a tax.

this is a way to get around that a little bit. i think, in the spirit of the law, that something we should be thinking about. i didn't i lived here all my life. i can remember unfortunately when it was 3% sales tax. remember, it's a percentage. it's not $100. it's a percentage and every so many years ago is up and up and up taking more bigger piece of the pie. sometimes we might have to live within our means. thank you. >> any other comments? seeing none, public comment is closed. commissioners, any other follow-up? well, we can take

action or not. i think even this is the first that we've heard of this, great, thank you very much. appreciate you informing us those numbers who showed up today. so, if we want to discuss this further awaiting with the meeting we can agenda. >> perhaps we should get the timeline of when you could provide the commission with a timeline of when this need to be decided upon to be on about? >> survey. both of these items are now for the board of supervisors and i'll follow the normal election calendar, and media can ask sonny to me because i don't know exactly but it sometimes at the end of july the measures need to go. i'm sorry. i didn't ask you. it sometime in the end of-i trust some. she says july 12. it sometime around that timeframe maybe i can e-mail you the exact count. i'm sorry i don't have an answer >> no problem get one or two meetings the penning on one that is i had a bus so if there is an interest in having us on the agenda, it is now stimulates some interest in

the broader community and they want to discuss this item here and will consider that. >> be happy to come back anytime >> thank you. all right. next item >> item number six, discussion and possible action on board of supervisors file number 160102, planning code weighting formula retail and polk street neighborhood commercial district 1 but cementing the planning code to branded formula retail industry will street neighborhood district open the planning departments determination under the california environmental quality act making findings including findings of public necessity, convenience and welfare under planning code section 302 and findings of consistency the general plan and the priority policies of planning code section 101.1. discussion and possible action item. >> our presenter is sonny angelo of an a to supervisor peskin.

>> hello. good evening everyone. thank you, commissioners for having me here this evening. and for considering supervisor peskin's legislation. so, just to give you a little bit of background and some context of the legislation that is before, in 2005, supervisor peskin legislative successful formula retail controls the north beach and he's been a strong supporter of the committee's push to preserve the character of chinatown. to similar measure did a decade ago neighborhood groups like the lord polk neighborhoods, neighborhood association and cathedral neighborhood association began organizing efforts in the general polk cd to connect issues of public safety transportation of small business preservation. we are appreciative of their combined leadership now more than ever as several major transportation

infrastructure projects, many of you may be familiar with, the polk improvement project, and a very large hospital project are all taking shape within the polk street and city were very close by. in february, after initial meetings with many of the stakeholder groups, supervisor peskin introduce formula retail controls tailored to the unique needs and market pressures of this people street and city. it intended to be a tool in the future community planning process this very vibrant neighborhood recently named one of the city's top 10 most trendy neighborhoods fyi in case you're looking for place to roll revoked. the last neighbors in the city that still retains a diverse mix of middle income families, low income seniors and sro tenants, ethnic specialty stores, pedestrians scale boutiques and beloved neighborhood legacy businesses as well as a very vibrant and still thriving lgbt heritage district. it's a neighborhood that people want

to live in with a very strong cultural fabric will continue to be attractive to chain stores as projects like the polk improvement project and the -will forget we party or permitting folks at this is a very desirable place for them to locate. i mean the pedestrian traffic combined with all the transit improvements are really going to bring a tremendous amount of people to this part of the city. with many small local businesses still struggling to compete in a market prioritizes large non-local corporations for long-term leases, a small businesses need our support and they need our help. my surgeon supervisor kim's office we passed successful formula retail controls in limited market area neighborhoods not known for small business john but actually full of struggling small businesses. we saw the success of those controls because they were designed to disincentive i swim boards from even entering into negotiations with large-scale corporate

entities. they were designed to even the playing field and ensure our small businesses have a fighting chance negotiating a reasonable lease agreement with a commercial landlords enjoying every hot real estate market rainout all throughout the city but particularly in neighborhood commercial district. they were successful and they work. his out-of-control work. with beach controls that work. chinatown has been able to preserve its neighborhood and cultural character because of smart planning controls. i was recently at a monthly cleanup a community cleanup there was sponsored by local grocery store inaugural some you may be familiar it's called-marketed joel-the owner has been operating this beloved cornerstone market since 1986. he knows every resident. he sits on the police captains community please advise reported he takes to two residents who are sick. he

hires from the neighborhood. he sponsors neighborhood events and community cleanups when he's an integral part of the fabric of the model neighborhood. this really is the kind of small business we are working to preserve and keep in the neighborhood who will be unable to compete with the large-scale chainstore in his immediate vicinity. this account of neighborhood culture we should be fighting for. local residents and small business owners look out for each other and are engaged in the day-to-day culture of the neighborhood. this is what our residents love about the neighborhood they live in. although this legislation is not intended to target any one specific entity, we've heard from many but constituents their desire to see grocery about at 1600 jackson st. which is within the polk ncd and has a pending application for a whole foods store and those of you who may have watched the planning commission meeting a couple weeks ago, that was still continues to be a hot topic and i'm here to reiterate once again supervisor peskin's intent is to grandfather and we've stated that publicly not only at the planning commission but in-he put forward about a

month ago in our negotiations with both bob isaacson and bob twyman, we stated plainly that their project, although it's not small business, and i understand this does not covered under the local jurisdiction but when you got to be considering, because it is a pending application a day like any other pending application will be able to have their day before the commission so to speak and have an opportunity to make their case to the process. this legislation is not intended to address any of those pending applications. so, with that i just want to thank the very broad coalition of both neighborhood leaders, homeowners association, small business and merchant associations. we've received a tremendous amount of support throughout the city from the small business community and i think many people can agree that polk street is one of the last horizons for commercial

preservation, legacy business preservation, and really helping to model what our efforts are as a city to ensure not displacing small businesses that were really standing up for them and making sure their voices are heard. i know that-is here from the middle cole nickerson is a video he would like to play but maybe it's actually queued up, i'll be happy to play it. is it? it isn't. both you want to queue it up? okay. i would love it if we could entertain, if we could see that brief video. the different neighborhood residents and folks engaged from creating a community benefit district in middle polk. i spent a lot of time interviewing folks in the neighborhood and trying to get at the charm and neighborhood character of middle polk. i

encourage you to take a listen to that and i just want to thank everyone that has been instrumental in helping to shape this legislation moving for. thank you very much. >> thank you. are you going to show the video? i have seen it. so, while that's coming up, we will n no doubt here some support for this. i've been involved, some of us have been involved in other discussions about this specific matter at the council district merchants and other venues. i think that it is somewhat telling that we are choosing to grandfather this one exception, and my own opinion is that their band and we have a conditional use process in this city to take care of things at, in the neighborhoods that we may or may not want and for the neighborhoods to make those decisions. i think that when we implement bands, we basically

hobble future generations for making decisions on their own. we may decide tomorrow that something that's good for the neighborhood, but falls into the category of what we call formula retail, were chain stores, is actually a great benefit to the community. either observation is that these bands are slipped a negative impact on certain success stories that we've had in san francisco. so, it's copy today paulson the formula we don't category as does the san francisco soup kitchen at both companies founded here in san francisco, continue to expand in san francisco and frankly, should be allowed to expand to perhaps the favor of certain ones outside our community. light blue bottle coffee for example. so, the blue bottles

of the world and the-are getting huge amounts of venture capital behind him so it's not the just the starbucks of the world that some about local success stories. were making decisions to make that affect not only our own, but people from the outside. so, with that, when we listen to the video and commissioner adams has comments ensure we have other comments. >> we do first need to do questions in public comments. >> before we hear the video? >> after we hear the video. >> okay the video than other commissioners can ask questions. >> are happy to address any of the points commissioner dwight has brought up. >> when we have questions. >>[video]

>>

>> thanks. great video. commissioner adams >> my question is, we voted and i supported the ban on formula retail and the conditional use process when we went to the palace several years ago. and, we voted in the time the-neighborhood, north beach in certain sections of the city. my neighborhood was involved in that which is the castro. but it's worked. if we

don't want somebody in our neighborhood, if we don't want a big retail in our neighborhood, it goes to a conditional use, and why are we coming back to this neighborhood now. if the neighborhood doesn't want something in their neighborhood, you know, the conditional use in my opinion has worked. we did want a trailer chose on market street. the neighborhood got up. we said no. planning set up your we do not get a. i feel like with commissioner dwight says, the hands are bad. because guns you can something its permanence. i'm all for small business. i love that video. i do nothing but shop at small businesses and spend my money at small businesses, however, when this when the formula retail came in we all voted on it now supported it.

let's see. it seems to work. it works all over the city. what is not working in middle polk that's not working anywhere else in the city? >> a discretion to likely to address? >> yes. on valencia street we didn't want certain businesses and we came out and we voiced our opinion and the neighborhood are deciding in the neighborhoods. so, i think why now with this particular street? >> excellent question commissioner adams. again, this legislation was absolutely informed by our small business community. this is something that i take directly from small businesses that constitute the majority of the commercial tenants within the polk ncd. i think there's a couple of things. number one, i think

what i mentioned in my earlier comments, is that many-i lot of what this legislation is intended to his level the playing field from the very outset. i mean, when we get to a point with this and application that is pending on a particular site, we have already lost half the battle because that applicant has artie entered into a series of negotiations the property owner has been able to offer cash up front for a long-term lease among other kinds of tenant improvements, i think as one of the small business owners there was interviewed in the video pointed out, these are the kinds of things that are local small businesses are really not able to do. they just don't have the capital,. the city unfortunately, doing the best job we can to offer subsidies to offer technical assistance to upper resources to support

small businesses were not doing enough in this is one the reasons i think a lot of the small businesses in this neighborhood have come to us and said, hey, were being pinched out. to commissioner dwight comment about how telling it is that there's this one entity that were grandfather now, i want to read rate this is not something that's intended to just take care of whole foods. that is-is about pending applications and it is anyone in the pipeline. there's other people in the pipeline that are also going to be eligible to take advantage of this grandfathering. what i would say is that there's other applicants from the small business side there not formula retail they can't disclose who they are or what lot numbers they are after what ground floor retail looking goat into with her in active negotiations with the property owners for these sites and they are just getting obliterated. they just do not have the resources available to compete in this highly competitive market. the other thing i will say is that with respect to the cu process, and having been a part of on both sides of the organizing

efforts, foresee use, whether it's for or against, it takes a tremendous amount of capacity and takes a tremendous amount of organizing, really both political capital and powerless and allow and frankly, money. a lot of our small businesses in particular, do not have the capacity, do not have the money to hire a lobbyist or campaign organizer to go out i mean, dear isaac together and

campaign work together any kind of a campaign that's going to be essentially a marketing campaign for that cu exception. that is just something that also applies to our residents. some of the residents of a lot of time on their hands. they both take the day off of work and come out and say this is what i want or what i don't want i do want this in my neighborhood. a lot of our residents actually don't have that luxury. their audio to take up the day off of work but able to participate in the community process. a small business merchants are very similar to what other merchants are working all day that require hardship for them to engage in a kind of a process. again, this legislation is intended at the outset upfront be able to lay the groundwork for an even playing field to recognize the unique pressures that small businesses are facing here in the city right now but particularly in a very hot very attractive very desirable neighborhoods like the polk ncd is going to be experiencing a tremendous amount of development. the of 13 residential projects in the pipeline right now that are on the way to being realized in the polk ncd. mostly market rate. unfortunately, and it's going to be a kind of pressure on folks to have a lot of upscale, you know, upscale chain stores and places that are going to be able to service people, either that or they're going to be ordering things online. that's the other trend we've seen that except in

competing with. everything from mike cellophane wrapped individually wrapped potatoes to getting their toilet paper hand-delivered straight to their door. these are the kinds of pressures that folks are dealing with. they need brick-and-mortar spaces where they can create community, where they can get to know the residents in the neighborhood and get to know who their clientele was really set up a community like-at knob hill mark. that's the kind of business were really looking to help preserve with this legislation. >> first off, again, dan into my question. i get the small business party. what makes this neighborhood different on national use than my neighborhood? were my neighborhood we have small business. got to take a timeout. i did take time out of my work to go fight something in my neighborhood. when i talk about an even playing field. that's an even playing field. as to bands, hayes valley has the highest gross retail in the

city right now. they have a band. so if you sit there and tell me that a band in middle polk is going to create lower rent, your only joking. you're only kidding yourself because hayes valley is so competitive with a small businesses over there, and because you can't have a formula retail over there which i agree with. i love the charm in hayes valley in that. i get everything you're saying about the small business. but, the rents over there are the highest in the city and in a lot of cases it's double than what it is in the mission, in the castro, even in north beach in other parts of the city. i know that for a fact. so be very careful what you wish for. >> thank you commissioner >> commissioner dooley >> i have a question. a lot of people bring up hayes valley can you address the effect in north beach, in chinatown? having form of the retail

control? >> you know, with respect to those district 3 neighborhoods that have really put small business protections on the map as a priority for the city, we've heard nothing but good things from our residents and from the small business merchants that have benefited from those formula retail controls. i spent a terminus amount of time and the district walking around. i know supervisor jim peskin does as well. talking to a lot of the merchant. again, these are people-and i also want to be clear about this issue of rent. i mean, i understand that we can't control commercial rent. we do not have the power to implement commercial rent control here in san francisco. that being said, i think there is something-there's something to having local small business

owners could i mean, i'm not familiar with everyone small-business up here on the commission, but i know you've all had varying price points were different constituencies that you represent. but you are local. your people interested in the community and i think the north beach and chinatown, that's very important for polk street. it's very important to be able to have somebody that is point to sponsor that little league team and donate to other uniforms made. that's when to be able to sponsor a community cleanup and the neighbor is consulate on the please kevin's advisor board and go to public safety meetings and actually going to engage in the community. i think that is something that you absolutely will not find with chain stores with formula rita. >> i think you're preaching to the choir on down. nobody here is contesting the importance of small business. small business owner. i understand as well as anyone the intense gross pressure. i live in a fastest-growing neighborhoods in san francisco.net and my

business is located or have a factory in regional president could either factory in san francisco. when the most expensive neighborhoods in san francisco which nine years ago in the recession was not one the most expensive neighborhoods in san francisco and wasn't tripling its population in the next four years. so, i get it. we are not here to argue we don't need to argue any more about your small business. what we are here to ask good questions about is legislation and whether it serves the public or not. small businesses are one constituent in a neighborhood. the residence are another. so, legislation is, i just want to warn people, legislation is a poor substitute for community engagement. the notion that it's difficult to come out and make time to make yourself heard is top. it's democracy. we have to come out. that's what we all volunteer our time here to sit at this twice a month. that's why most of us are

invested in our communities. we are working on behalf of small business here. were not here to derail anything that makes the world a better place for small business. that being said, we are also we are to make sure that we pass good laws. that the supervisors and the mayor benefit from our expertise, not only a small business owners and advocates, but as advisors to lawmakers. the observation that you're hearing from some of us, not all of us, perhaps, is that legislation, legislative bans, are prohibited. they are bans. we have developed laws in the city to allow flexibility around

what we want and what we don't want. also, don't be too sure about the small business that's opening a restaurant in your neighborhood. most restaurants they are so exorbitantly expensive to open their millions of dollars of private funding behind them whether their eventual capitalist or angel investors. it takes a tremendous minor money to open up it group up, a restaurant of any size. not only that, many small businesses are using san francisco is a leaping off point as a springboard point. today, it so difficult to open a small business that when you see a business opening, sometimes you want to scratch the surface and say what's going on it.-in a cell is a perfect example but they got to the conditional use process because they were not a form of the retail but they lined up already 20 locations outside of san francisco they were going to open whether they open in san francisco first? because they wanted a location and prevented they knew they would not get one if they win the other 21st. they knew that san francisco is a key place for them to be. so they opened here

first. they got in under the controls and then they went off and started their growing enterprise. so, there's ways to get around the conditional use process. there's ways to deal with it. these bands, they don't level the playing field. they created a one-sided playing field for small businesses in san francisco, but they preclude present and future generations for making decisions in their own neighborhoods is a combination of both small businesses and residents. you do have to come out. you have to lobby your position but as we've seen in neighborhoods here, those who do come out and copy their position, they often, not always, often prevail. isn't always going to go away a small business. it isn't. in the case of polk street i love local marketed microphone and i shop there all the time. then tested enterprise. great company was wonderful owners you've ever met in their life. quickly, they will not be negatively impacted by the neighborhood desire, if it goes that way, to have a small whole foods in their neighborhood. >> that's not what this is about.

>> specifically, i hear what you are saying, but the fact of the matter is, there's a tremendous outpouring of sentiment both ways about the whole foods thing, and clearly, were navigating that. >> and we've listened to that and they will absolutely get their date before the planning commission absolutely >> of course, they were. no future situational because the playing field will be blocked out to those people might want to come in and put in-as well get older we might decide we want a walgreens in our neighborhood so we can go get the medication we need and all that subject and don't have neighborhood pharmacy and the longer to go to. but are you going to get one quick not if you have a formula we tell them. no way. you have to go on a bus and go to the one nearest to you >> where you have to inform the policymakers

>> or find someone who wants to spend the money to open a pharmacy which is highly unlikely. again, i'm not advocating-i'm not-i'm just proposing to you this is a double-sided coin, to answer them however you want to call it. so, we'll have comments from people. i'm totally fine with that. the commission, i just wanted to the know the commission is not advocate a small business but also an advocate of good by making good commissioner adams >> yes that i just wonder reiterate what i was part of the castro merchants i was in favor when supervisor weiner and john lamb of the planning department, we decided we were all freaking out all foods came and market and dolores. i was sitting with your city now and we've got to ban the use formula retail stores coming in. they're going to earn all our businesses in the neighborhood. that was five years ago. problem we have now,

the rents have still gone all in him looking at but a lot of vacancy the market octavia, all the way to castro street rate now. it's just sitting there. now, do i want from the retail in all the spots? no. >> this is on market street? >> this is on market shifted moxie tonight >> that zoning is similar to the van ness, am i correct? >> yes. we have special market and church street to boston other side we have a special area because of the safeway and whole foods came and that supervisor weiner and ram on this board of supervisor we all came in with this. were still in our test period. >> got it >> one thing about it is the rents have still gone up in him looking at a lot of vacancies. one of the things i've learned is, sometimes it formula retail can especially in the new

developments, now in an old building,, i don't know if there can be something tailored to older structures, but in new buildings, because you're going to get these new buildings and a lot of retail space in these newer buildings, if maybe you can write something in where the formula retail can actually subsidize smaller businesses. like at market, no we, 16th st. we have a bank of the west in the development building. the bank of the west is a formula retail. they are paying top market rent. also helping the developer pay that building, and in the meantime, the for individuals small businesses at below market rates. they're all thriving. and have long-term leases, two. very favorable leases that keeps them in. so, maybe if you can construct something like that and still

preserve the character. when i first moved here, i lived in lower polk. when we tell you is the most charming neighborhood and it's really what got me into the whole small business shopping because there was nothing there. that's all i had was polk street. i feel like i grew up on that street and learned a lot >> a kind of ethnic businesses. specialty grocery stores. >> i get where everybody in this room is protective. then i seen the other side of it, too. maybe if there can be a compromise like in the newer buildings 12 smaller buildings with businesses when they come in. maybe i can live with that, but an outright ban, like i said, in my neighborhood the on castro and 18, the formula to

conditional work works. we take a timeout and i've had some battles with some major players coming in and jack spade wanted to comment on valencia street. we knew that would be bad over there and we thought that and one. so, >> what i hear you saying the hands preclude not only flexibility for creative solutions. so, the notion their creative solutions that will allow quote-unquote chain retailers to create a solution to subsidize other retail other local retailers is an interesting proposition because the dance will not prevent rents from going up. hands will not stave off the internet. don't put yourself the internet is marching at its own pace. regardless of bans on formula retail. so this is not the solution to that problem. the maybe others but this is not it.

>> that's not what this claims to >> we made the statement yourself. >> but i am just-it is one of the many issues that folks are facing >> commissioner tour-sarkissian >> i have a question. my office is in the hayes valley since 1986. i've seen it grow. rents are very very high. so, i see formula retail is not permitted in my neighborhood. yet, the rents have gone up and most businesses-i'm an attorney, so my clients cannot afford the rents in my neighborhood. it's out of the question that i don't want to go into space that specifics because i don't know the square footage rental value of the space. the question that i have for you, maybe hayes neighborhood commercial transit district is the exception. tell me how much beach neighborhood and the chinatown retail

district fairs as compared to other neighborhoods in rents. did the fact that-was not allowed in these neighborhoods get the rents down allowing small businesses to an easier time? i don't think so, but i want to see your opinion about. >> what was the question again? >> the question again we have prohibited work it formula retail out of these three neighbors. i know about his because my office is there. the question is, i would like to ask you, what happens in north beach and in chinatown? that's all i want to get your opinion as to whether that helped the prohibition, helped? yes.

>> yes. again i'm only representing the small businesses is in artistic. not being a small business owner anymore myself, i used to be a small business owner though in district 3, i have heard from many folks that the formula retail controls have helped them to be long-term tenants. i mean, these are folks that have basically been able to secure long-term leases and become literally acres of the community. they have been there for years. they feel protected and they recognize that, even though north beach, for example and chinatown, really tourist hubs. tourist destinations. the frankly one of the two neighborhoods that put san francisco on the map as a unique destination, that tour is some culture has still not been allowed to completely take over the entire identity of the

neighborhood. that includes the residential as well. so, those formula retail controls absolutely help to ensure those neighborhoods remain unique, they remain culturally sensitive. that they prioritize the existing tenants, and that were not just-when up-and-coming fisherman's wharf. patient's what has a distinctive identity it was because a very special identity and it's a blend of a lot of different cultures, ethnic heritage is, a lot of different legacies in the polk street ncd, i think one of the things we are fighting for is really our lgbt community. a lot of the businesses pushed out and described for commercial retail spaces are becoming very attractive are our lgbt businesses. >> but, if the rents go up, whether you are a small business were larger business, your can be pushed out. my question to you is,

>> that's why we have other tools that can help with that. those are tools that-all of these things are part and parcel. the city for all say it again. this really about leveling the playing field. i have helped businesses at the outset of their negotiations with the landlord's many times and ultimately, there's another contender in the running that can pay four times what even asking prices, there's no point in even negotiating with a small business owner zero local get it doesn't matter whether they can bring to the table what other assets when other improvements are planning on making. it doesn't matter. they're going to go with a formula retail guy every single time. >> maybe commissioner dooley can comment on the vacancies in north beach because there seems to be an awful lot of them in my recent tourist. >> i would say having been a merchant in north beach for many years and currently working with merchants, he's

formula retail ban has been entirely positive. it's kept the rents down. it allowed smaller businesses to come in. yes, they may compete with each other, but they're not looking at some in coming and who can pay you huge amount of money, and because of that, we are continuing every single day to have new and interesting businesses come into our neighborhood. i would say, if you asked the residents, everyone would agree it was a good thing to get we've retained other local services. we've got new restaurants. were not really lacking, and there is not a lot of vacancies in our neighborhood. i have a couple questions >> thank you commissioner. >> now, what is the recommended percentage of formula retail versus small businesses in the code?

>> that i do not know off the top of my head, commissioner. i'm happy to get that information, though >> i believe it's about 80%. i think something like that. around there >> around 8% sounds about right >> so, i want to ask, >> under 10 >> how many formula businesses and services are there already in place on polk street we pick other things seriously lacking besides the grocery store? >> you know, i've heard from folks that they would like -certainly more family oriented things like child care facilities were child programming activities for kids, for youth. i think, also, ground-floor retail space that serves as the arts. i know that-and really, this might be questioned that are put to the folks that have been organizing around the potential community benefit district because that

did do a survey of a lot of small business owners also residents ask what it is they would like to see in the neighborhood that they would like to attract and center buys. i do know arts was definitely high up on the list. also, >> that's not really my question. i question is, just for example, other any formula retails pharmacies in the neighborhood? >> yes, they are >> just try to figure out- >> there's walgreens, starbucks, there is a pete's coffee. there is formerly, a radioshack. i know there is potentially another form of the retail outfit looking at that site. i mean come i can get you the full list of existing

formula retail sites that are operating within the polk street ncd. >> do you know-you know- >> of course, brownies of 11 harvard store the many many moons they recently been acquired by ace but they still continue to have the same employees. >> okay, thank you >> actually a question. is there any provision in the band for the community to come forward and say actually everybody wants something. is there any provision in the band, if the desire is unanimous, is something that the community can bypass the band? >> there is not currently a provision that speaks to- >> for example let's say the community wanted child care and childcare. extraordinarily extensive to ensure so the only childcare provider is a chain of childcare providers that is licensed by the state and

insured to provide child care, and the community agrees amongst all of themselves, we must have childcare. otherwise, we can have fun ways and our neighborhoods. the community cannot overturn the ban to allow for private for-profit child care provider that happens to be a chain or from the retail to come in and buy that service. is that correct? >> number one, i've no idea what eight form the retail childcare center would be >> there are many >> i will look into that but typically in these type of situations where i will look into that. typically, in these type of situations where there is a planning control in place that is an out right planning control, you can legislate three special use district could that is something that if all residents were-brought something to us and some unified consensus,

>> there is a mechanism you could legislate around it if you had to >> correct >> that's important to know because my assumption if you ban it and you ban it and there's no exceptions the city could enact a special piece of legislation and we have, i gather, special president for that to allow something that is otherwise precluded in general. just try to get it out there >> right. policy is not a static thing. i mean it's constantly evolving, constantly fluid. right now, this is the number one ask that's been brought to us by the small businesses within our district and so this the policy we have shaped moving forward to address those concerns. certainly, four years from now, six years from now, eight years from now, who knows what that will look like. were not to be

policymakers for you at her but this is the policy that we have crafted in concert with the community. >> understood. commissioner zouzounis >> thank you for your presentation could i do? some of the conversations you had with the city attorney's office for my own curiosity since i was part of the formula retail control and formula retail subsidiary control working groups before. the thing that i kept hearing from the city attorney's office we can interfere with the market and we can't give priority status to some businesses over the other. so i am just curious as to the prioritize versus the band, and what is then legal in terms of supporting small businesses in a proactive way and i'm just curious what the conversations around what we could do and could not to came up in discussion with this legislation? >> really, this legislation

was modeled off of legislation we asked before the north beach control hayes valley control. so, this is something the city attorney has bedded and determined to be completely within our legal boundaries as policy. >> commissioner riley >> yes, this came up before in the previous discussion about banning from the retail. the purpose is this because you mentioned conditional use process does not work. so, can we look at fixing the cu process instead of banning? once the ban is passed what does it take to undo it? >> once the band is passed? once this legislation is passed , the question is-okay, so you

are saying how long would it take for a new piece of legislation to be introduced-or >> how do you see that is to do it? >> really, passing legislation is a simple as what we have undertaken here today. we've introduce legislation. it will go before the board of supervisors for a vote and if someone else wanted to introduce legislation, they could do that. absolutely. i don't know if the question is how easy is it to completely wall back the legislation or >> the situation has changed in the future. people don't want this anymore. they may have to go through the process two- >> just like any legislation we can amend. like i said, it's not static. i mean, if the commission has recommendations that they think the legislation can be improved, i am

listening. i am happy to take those back to the office for consideration and, please do share them. thank you. >> commissioners zouzounis >> i think i guess whereas try to get out terms of the solution thing in the more proactive especially since we qualified with the fact that the rent situation doesn't really get affected and impacted by legislation like this, i know personally i been seeing it happen with my family's business formula retail does pressure distributors not to sell to small businesses. the all these subversive ways of setting the market in different ways. when i think about more proactive approaches, and this is probably a conversation with to have more off-line with merchant groups and whatnot, but bulk buying power is really a huge issue for small

businesses having to go up against one were talking a different walgreens. even though petitioner may deliver more tour one tiny store than they do to a little walgreens, 13 middles able to purchase more that is a competition or purchase at a lower rate that is a competition piece that i was curious about like legalities of how can we get creative and more proactive approaches for small businesses like merchant independent grocer associations were ways that the city could support more proactive approaches like that. i am curious, maybe we can have a conversation about that off-line. >> i would love that >> looking at more proactive privatizing is a conversation i thought we could have

>> that's great feedback. thank you >> thank you. is the enabler commissioner, and so will open up to public comments now. i presume we have some members of the public >> we have speaker cards. stated once again public comment >> can you read the speaker cards? >> public comment is limited to 3 min. i will give you the houck at 3 min. please be respectful of the other people are lined up behind you would sell many. so, we will take the speaker cards and cough names >> so, we will have speaker cards of first and then those that did not fill out your not required, but >> the speaker is speak on tape one of you read off three in a row so we know >> >>[calling names] >> if i may, w obligated to fill your 3 min. if you're reiterating something someone else said you be read into the

record of being supported. there's obviously, security in numbers so it will be reported that you are one of those supporting or not the proposition. so, if you have new things to add, that's fabulous, but all of us on the schedule here so let's get to as quick as we can. thank you >> commissioners reminds michael's: the good i live in the neighborhood for since 1997. i'm against this ban. we need both quality and affordable retailers on polk. commercial property owners must participate in this discussion. read attraction not dissent of static. polk street can maintain the same level of traffic and attacking mrs. 24th

st. the shopping districts thrive with independent retailers and formula retail. the formula retail band is not the solution for polk about his. please, reject this legislation is unneeded and formula retail can and does value. it is unwanted governments should not pick winners and losers and lastly, no majority support from the residents. the residents were involved in this petition from supervisor peskin's office. believe me. so, please ask supervisor peskin to address the lack of incentives for property owners to lease these vacant properties. we have year after your storefront like. give absentee and offshore property owners. it's time to rethink the future retail on paul. we need to incentivize these property owners to modernize and upgrade to move in and incentivize these property owners to offer pop-up shops. the current status of storefronts in my neighborhood,

with 11 vacant storefronts and seven box going from broadway to california. we have 10 foot massage and many petty thousands going from broadway to california. we are the many petty capital of san francisco. the common good ashes of these vacant storefronts other antiquated and single and double date. they're not modernize. there's no backstreet for deliveries. the exorbitant rents and their poorly maintained residential façade above street level could believe me, formula retail does not want to go into these storefronts. if you look at the right curtains about what we have is not involved 10 overs. the newest tenants are the cheapest cheapest go that's hence manicures-pedicures and for massage. kevin guy in the planning department has got a new job. he's managing airbnb

rental. we need someone like that to manage vacant storefronts in san francisco. if you walk walk along my neighborhood are using a butcher block paper. you'll see a single sign. why? these property owners have no interest in marketing the property. the jamaica mandatory. if i'm a perspective -walking down the street i be much better served to see a sign that says, here is a storefront. was here before was a café. this is the amount of square footage here. you are leasing agent. thank you >> thank you very much. appreciate it. next speaker, please. >> fell. on gail boss. i've come here before actually to talk about some other things but especially by the call to action on supporting small business and san francisco after a high-profile appeal to declare kids and james were to

the board of appeals and i was rejected. the chains were now sits in hayes valley supportive of local artists and businesses promised before the planning commission remains unfulfilled. at that time, i call for specific agenda items list of them to be placed before your commission to explore ways to support small business in the face of new developments, retail brokers, who may not engage san francisco small businesses as a retail leasing strategy. i would still like to move forward with those agenda items but before you last year. meantime, today, i am here as the president of the hayes valley neighborhood association to represent the cochairs of our hayes valley merchants group, which is within our neighborhood association. our organizations force the establishment of a formula retail band in those neighborhoods have chosen to do so and of course that's the key point, they choose to do that. we help create the formula retail band and its implementation in the hayes ncd. it has allowed many new businesses to flourish our

neighborhood is experimented with various types of retail, including temporary retail on sites destined for developments. by having the formula retail band in place, we believe our commercial district has served as an incubator for new retail concepts on temporary retail sites managed by envelope a+ b, your garden, smitten ice cream and brick-and-mortar stores along hayes, at katie, doc and franklin street. you concept we killers are attracted to this ncd because the formula retail ban. rents though high for small businesses, would be even higher if the were not for the chainstore ban. we work closely with many of our developers are building housing the

street-level commercial spaces or neighborhood and they have confirmed to us that they would've charged even higher rents the opportunity to these two agents were were allowed. the hayes costs ncd did not have much character at the beginning of the fight to take on the freeway. it's apparent -it became apparent soon after and not before, the 40 foot elevated freeway you know obviously it was important. the incubator-the incubation of new business is a key element to making this district first. chain stores is that in the environment. we urge you to support the polk street ncd as proposed without modification. but the neighborhood how decide how research he develops in the coming years. we would there's many business opportunities that were flourish in neighborhoods like the polk street ncd the formula retail band to support the growth of new businesses in those neighborhoods. >> thank you. next speaker,

please. >> good evening commission. my name is paul warmer. i am actually, i want to the polk neighborhood a lot but i live over on california by fillmore. i've observed what happened on the upper fillmore district. it was listed as sort of a nice place to visit. a good mix of formula retail and him. that's slightly misleading. virtually, all of the new retail on the upper fillmore is formed the reach of. restaurants, and those few owners who are still there are not good all of the new retail is formula retail with a couple of exceptions. the real venture capital funding but there from massachusetts, not here. oh well. what i see is at my gym, which i've been going to for many years, it's they got hit with a 39% rent increase. that

is in part a response to the perceived value of the rental property based on the rents on fillmore, rather than half a block off where there's no pedestrian lead to bring pedestrians were shoppers to that site. we lost barry's for pets for my very valuable bible neighborhood pet store because the landlord look at the rents on fillmore but the formula retail folks were paying and said, well, you can match that i'll get someone else to replace it. it's been vacant and for rent for nine months now. in this hot retail environment why? because of stress off the path. it just out of where the walking traffic goes. formula retail doesn't want it. the landlord learns that now overvalued neighborhood retailer was driven out by exorbitant price increases the were not justified because landlords get

inappropriate expectations. i have had calls from realtors trying to find space on fillmore for a local person but they can't get the landlord to talk to them on this listed property because they were only talking to chain stores to formula retail. chain stores are not just the gaps, the walgreens, safeway's, the big names the big brands, etc. there places like scotch and soda. they are places like-. they create incredible pressures when they move into a district where there are are small storefronts that work for that particular business model. the local players are not going to be able to compete and not going to be able to start all. i thought this eu controls would work. i cannot trot out the same number of people the

consultants like barbary coast turnout for the corporate clients. >> thank you very much. next speaker, please. >> the next three. >>[calling names] >> good afternoon commissioners. master point of order question before my time starts? >> what is that? >> just a process question >> yes >> i represent russian homemakers and wondering if the future if we have a video to present, is that time in addition to our public speaking? >> this is to anyone who would ever like to present anything to this commission, please simply let us know in advance we can put it on the agenda and give you all the time. don't cram it into your 3 min. because treatments are limited to 3 min. by water of law. by all means, let us know in advance. anyone who wants to

anything before the commission as long as we get it on the agenda and it's appropriate for our commission. a lot of videos we don't want to see. but we will get it on the agenda and for discussion >> point of clarification. the presenter also chooses what is part of their presentation as well. >> i was just curious >> if you do, in the future, please, approaches that of them so we can clarify the details. >> we absolutely welcome you. that's why we are here everybody in the richer the content the better the experience >> i appreciate that because i was curious about the mta video shown earlier. >> now the sand ongoing. >> good afternoon commissioners. thank you they must my name is richard gardella. i live on russian

hills since 1983. also a small business owner and the son of a small business owner. so i do appreciate the challenges of running a business. i'm here to speak against the formula retail ban on polk should. first, however i'm curious i'm one of those kind of people, in your package there was the statement from supervisor peskin stating this at past that the planning commission. imagine you are all aware this was not passed in favor at the planning commission. in fact, the planning commission voted to not approved and not recommend adoption of this ordinance for the board of supervisors. i am just curious why what was in your pocket >> we can't comment. we just have to listen to you. >> sorry. also at the planning commission's hearing the representative of the planning to five and stated that 7% from the retail makes 7-93% with a very low amount of formula retail in an ncd that in fact,

10% is considered healthy. also, the planning commission discussed they have been three conditional use applications for the polk street area, to which were approved. one of which was denied, so that tells me that the existing conditional use process does work. as you likely know, the sponsor is stated that the surprise introduction of this proposed legislation was motivated to stop the application process of a specific project, the whole foods 365 store at 1600 jackson street in polk street location. the community wants his neighborhood serving business. such a business could well be a draw bring in more customers to the polk street neighborhood commercial district to the benefit of other merchants in the area. russian hill neighborhoods conducted a

survey: shows our members and other russian hill residence clearly and overwhelmingly want and need the neighborhood serving grocery store and they support it being at the location of the former lombardi sports building. it's been suggested ms. angola said again today, that the legislation would carve out whole foods. we've not seen anything in writing and we very much appreciate some concrete language that carves out grandfathering in that whole foods could we not seen that. it's been stated but we've not seen it. would you cherish the long-established businesses which serve our area. we also welcome new businesses. the ncd conditional use process works and thank you so much >> thank you very much. next, please. >> by the way i very much appreciate audio slave you people got to the end of the time of not got i appreciate

you ending without me having to interrupt you. >> good evening. my name is- lindberg. i'm a resident of the avenue on the corner of polk. i am also a member of russian hill neighbors. i'm also a real estate agent. recently we heard whole foods was considering a new concept store at jackson's. i'd be very much affected by the traffic there but i'm here to absolutely oppose a ban on formula retail. it spurred me to think about what many now call the whole foods affect on real estate second. i researched numerous studies on the topic and have come up with the following point i like to report to you. whole foods as a bellwether. there's little question that whole foods has consistently been able to identify neighborhoods

undergoing rapid upswing. i can tell you that they take an unusual approach when evaluating a neighborhood for their market. unlike a typical retailer, and contrary to what you might expect, whole foods does not focus on household income but rather, on education levels in a potential trade area. they usually require a minimum population of 200,000 college education. but, what does whole foods due to amplify growth? research has found rigorous analysis of what amenities like all foods do for growth. property values increased an average of 17.5%. after a specialty grocery store opens nearby, although that

varies per location. there's no doubt whole foods is a valuable amenity for local residents and workers. it point anybody in real estate industry or those little common sense would take as a given. and drives real estate economics. in the real estate industry the term anchor is used to describe a business a department store cinema or eight major traffic generators and creates value for the surrounding area because it's considered a destination. meaning, it will draw customers from significant distances was coming especially for that business. this large customer base will often shop, eat, and spend money at the surrounding location. they can proximity to an acre very valuable. but among, whole foods is an anchor one of the best there is. a new location on polk street with ring tones of new consumer traffic to the area which is the real estate sector which is

good. it means many more customers for local businesses. in turn, this leads to a plethora of new stores opening in the neighborhood >> thank you very much. just a brief update if i may. the warriors are winning 49-48 in the second quarter with 5 min. remaining. so, if the nailbiter. you don't know what that is good for the long and will find it with the game score is laid get well, >> good evening. my name is sara taylor. i been living on russian hill often on. actually, my husband took me away for a few years but since 1970, i have been shopping on polk street 412 blocks of it because my churches at the other end from where i live continuously since 1970. i treasure the small businesses on the street but i cannot think -they seem to be really that

formula retail will destroy them. frankly, i was struck that planning commission hearing which we've been mentioning which, by the way, had four hours of testimony, was much largely-much larger representation from the neighborhood. the neighborhood was-had two major points. they do not want this ban on formula retail. they wanted to have a chance to have a say on what was on their shopping street. that was very strongly said. they thought every one of them thought conditional use process works. the planning commissioners went on to state that, quite frankly, in the last two years there's only three formula retail

propositions brought to them and one of them was dismissed and only two of them were approved. i want to stress what richard said, that they said right now we only have 7% before the retail and that 10% is considered to be the ideal. in fact, commissioner antonini thought the formula retail band, he made the comment was like a solution seeking a problem. which i thought was witty of them. very astute and very right. we do not want have our ability to shop the limited by a total ban. i do think the conditional use process works and could keep out that things from our neighborhood. i don't know why our small business people are so concerned about this supposed it competition winner bring more foot traffic

to polk street. it would already have a lot of stores that are empty. i didn't put that of two greedy landlords. i do put that of two offshore landlords, but a situation of three years ago was when the polk street florist heather rent almost doubles and there were spaces across the street. she moved across state she's there and moves and is very happy in that sort remains empty because of the greedy landlord. but they don't seem to care. they seem to leave their places empty. the looking for the high rent and i don't think a formula retail band is going to necessarily help. >> thank you very much. next speaker, please. >> the next three speakers. >>[calling names] >> good evening, commissioner.

my name is john don turned, cofounder of the middle polk association and the chair of this group for nearly 11 years until this january when i retired. in this capacity, i came to an old middle polk and the surrounding area six or may well having worked very closely with both neighbors and our fine merchant. polk street is the very core of our neighborhood. plural. it is a very unique san francisco only experience. the middle polk banners, which looks something like this, which were funded by investing neighborhoods program called a village in the city not a mall in the city a village in the circuit thus received another grant for these and these bags are to be used when the up coming road

construction happens on polk street to keep our small businesses up and running. they will donate promotional materials, coupons, etc. into the bag. we've got a map showing you how to get to polk street the at every possible way. middle people neighborhood will distribute these to visitors and other neighbors. there's a close connection between neighbors and merchants. last week at the planning commission, it was decided as has been mentioned tonight, the cu process works. however, the statement fails to understand the extent and put into small merchants in order to attend a long line at a 30 day hearing. it also fails to recognize the expense to neighbors who must take time off of work to attend these one by one cu hearings.

the cu process is, in fact, genuine hardship to the neighborhood. conversely, inappropriate businesses such as large formula retail are paid their full salaries in order to attend a cu hearing and as of the lobbyists and their expensive lawyers. it's not an even playing ground. the very character of the polk ncd is a uniqueness about web are small businesses. supervisor peskin's retail band, minus planning session, which moods seriously the band, states what is. polk street is already a unique one-of-a-kind san francisco experiences and we as neighbors want to keep it that way. we do not want to lose our treasured legacy small businesses. these are the businesses we want to keep.

thank you very much and go warriors >> thank you very much. next speaker, please. >> good evening, commissioners. my name is jamie whitaker. i live in lincoln hill were we have developments going up of 1000 residents at the infinity and so on but retail space are empty. so, we don't have any existing businesses were very few existing business because it's all railroad tracks to transbay and warehouses. i like to encourage retailers that are looking to relocate or open spaces in san francisco look at lincoln hill. we have plenty space looking for folks to serve the neighborhood. i'm very much in favor of the ban

that's being proposed here. his first single street as far as i know. it's a street that has a consistent history, wetherbee lgbt destination were as a dining destination. i go there myself. the cable car just for kicks to ride the cable car and i think it's easy to forget van nuys chainsaws are more than welcome to locate on van nuys. that is a block over. most of downtown as far as i know there's no ban on commercial stores. the thing about democracy is people have to have time to participate and in my neighborhoods i'm sure it's going to happen in middle polk as the new developments are going up, young families, especially, don't hear from young families. what are they

doing after work? they're taking care of their family, taking care of their kids. your disenfranchising the families of san francisco.. a lot of people are working much more than 40 hours a week. again, those folks that work 60-70 hours work there not to make time for this bull malarkey for coming to city hall for two, three, four meetings in the middle of the day. i appreciate the desire to have a case-by-case call but there seven existing were nine existing bands and this is a temp. i guess the question is, about long-term perspective, polk street one of those does it deserve to be the 10th area where we try to preserve san francisco along this street and let thti