filed to enforce the stipulated agreement and the superior court entered a judgment on behalf of treasure island four winner $246,000 which is the accrued back rent interest and penalties at that time and the court ordered a 10% interest per annum be applied to that balance. in january 10th of 2007, notice eviction was served and the locks on the sony were changed and in january and february of that year the voice of pentecost was offered opportunities to enter the building and recover property. at that time, communication between voice of pentecost and the city discontinued. there was no further communication between treasure island and voice of pentecost for a period of several years until 2014, december of 2014 when the voice

of pentecost approached treasure island and specifically, myself, at this point i had joined treasure island to discuss the judgment against voice of pentecost and the lien that it placed against the property on ocean avenue. with numerous conversations with course of 2015 and into early 2016 to discuss scenarios under which the voice of pentecost might satisfy or discharge their obligations under the judgment, or format for a settlement that johnck to recommend to the board of supervisors for approval. when in february of 2016 we learned also from reporters at the chronicle that the property had been sold, it auctioned by the lender in november of 2015--so if that point the lien against

the property was extinguished with the sale. the judgment against voice of pentecost is still there and we remain open to dialogue with the voice of pentecost on how that judgment might be satisfied, but we have not had further communication since february. when we are informed of the sale the property. >> so, at this point mr. back, there is no more opportunity to actually collect any of this from the voice of pentecost? >> i think the opportunity exists . however, the judgment is no longer secured by the lien against the property on ocean avenue. but the judgment against the voice of pentecost is still outstanding can

however, we don't have any assets that been identified yet do we could attach. >> i am just curious, this is not completely related to this topic, but it is related. how do you vet potential ec's? >> for vcs on the island they do provide certain financial information to show. credit worthiness for the leases that they are entering into. also, they are required to provide insurance for the facilities and property which they are leasing. which, in the case of this was a fairly substantial insurance policy that they covered under their umbrella

coverage for their church and their facility on ocean avenue. >> i guess this is all hindsight stuff. what else could we have asked in terms of information that could have foreseen something like this happening? >> yes. i think, you know, again, i don't know in detail the depth of the credit check that was done in 2005, but perhaps more in-depth credit check good also, we do carefully monitor and promptly send notices to tenants of nonpayment of rent so that we try to avoid the accrual of significant back charges of rent. so, we do try and stay on top of rent is there due to make sure that tenants are not falling into a situation where they have a large obligation accrued.

>> so, you mentioned that you have attempted to reach out to them and communicate with and what actually have you done to do that? >> as i mentioned, over the course of 2015 we had a number of conversations with representative of voice of pentecost. they represented that they do not have liquid assets to fulfill the obligation and so we were having alternative discussions about alternative ways in which they might be able to fulfill their debt obligation, including potentially allowing a portion of their facility on ocean avenue to be used for community-based organizations or other purposes. but, we did not-those conversations did not reach the point where we had a specific proposal to bring to the board of supervisors for

consideration. >> when was the last medication with them? >> last medications i had with voice of pentecost was in january, just prior to worry about this we were having a dialogue and then, when i communicated with them after learning about this, they said they would get back to us and we kind of have not had further to medications since then. >> is it worth trying one more time or two more times? >> i think we can continue to reach out to the voice of pentecost. my understanding is there current focus has been on trying to retain or reclaim their property if at all possible. if it's possible that the settlement of obligation could be part of a solution like that, we certainly are open to discussions.

>> maybe this is for a question for the city attorney, but if we were to purchase it back are they still obligated to the lien? >> that may be a question for the city attorney. i don't think the lien would snap back but i believe the lien could be placed against any asset whether it's this church or another real property that we were aware of. >> i'll ask the city attorney later i guess. well thank you for your presentation. i hope that you continue communicating with them and see what you could retrieve back from them. thank you. any questions? the next person i would like to ask to present it would be the city attorney by deputy city atty. john gibner >> deputy city attorney john

gibner. i'm here today with two colleagues who have more background on this particular case is matthew rothschild is the head of our claims team and virginia how also on our claims team. we are planning to just run through the background mr. back primarily ran through all of that good i'm not sure how much more we can add but certainly, in terms of answering your questions about how we got here in the unlawful detainer and the logistics of the lien, looking backward and looking forward, so i wonder if mr. rothschild can speak on the background and maybe ms. ho on the snapback question that you asked about the lien. >> that's fine. >> thank you. matthew

rothchild chief of the claims division for the city attorney's office. and virginia ho is a claims adjuster on the team who worked on the abstract and filing the lien in this matter. happy to answer your questions. >> so, what can we do legally in regards to if the church were to purchase or repurchase. is there anything we can do legally? >> well, i mean i would be speculating but we were, as bob

said, we were in discussions with them and they were not exactly candid with us about they were not paying rent and they were about to foreclose on their mortgage. so come i think there's a lack of trust at the moment. i'm trying to be diplomatic because they do not cause they were not paying their mortgage. so there is that just as background. number two, the city has always willing to consider to talk to people we are in litigation with or have judgments against to try to resolve it and what's in the interest of just. am sure we would always consider that. but, as we speak, we have a judgment. it is valid. it can be run in five years-every 10 years-after five years it can be renewed to add additional interest and we are entitled to the taxpayers are entitled to those funds. if they wish to, if the credit report is on a network that was to go forward our lien will show up. anything else to add?

>> go ahead >> the lien is valid and if voice of pentecost decided to the purchase, if they need to refinance or get a loan, it would show on the credit reports and have to pay the city first before the loan would go through. >> i mean, i am just-i guess where the committee and myself including, asking questions how did this happen? this would've happened without anyone noticing? can you think of-what can we do legally or are their suggestions in terms of policies where we can maybe strengthen this so this does not happen again? >> well they could have paid their rent to treasure island and they would not be in this position. what were they could have during the time when they were not paying the rent on

fisher island they could've tried to renegotiate the lease for what they could afford to pay or when there was an opportunity to work with them in 2014, when the lien was renewed, we did send them a document as required to under the law, that we are about to renew the lien and they could've come forward at that time and i'm sure if they had come forward with pain the principle that was do we certainly would've looked at that kindly. but they did not do that. >> yes. so, regardless of this particular situation, in terms of having entities of foreclose like this and none of us knowing that this was going to happen or happened, is there something the city can do to require maybe the banks to let us know? i just want this to be a recurring-spit

>> debbie city attorney john gibner again. that's a question that we just started looking to add your request supervisor, and i think the best way forward is for my office, perhaps mr. rothschild are probably others on our real estate team to continue look into what's possible. there are some are sections under state law that a hamstring us, and then report back to you about what options are might be to pursue legislation on this topic. >> do you have a comment on this? >> happy to work with you on a timeline. the person who will would handle this is out of the office this week. so i could not talk to him in advance of this meeting to figure out kind of what how complicated this task will be but, i will i'm

happy to talk with you later this week, next week, to figure out a specific, so we can give you some options. >> okay. >> just been added, supervisor, we learned about the foreclosure at the same time you did. in the newspaper it was sold at christmas at the steps of city hall. we were hoping that there will be funds available for the city to collect somewhat on eileen. there was not. so, we were as disappointed as you are. i do think there are-i agree with, john and we will research for you i think there are some state preemption issues about entities that don't pay their rent and there's foreclosure in city hall. i don't know that the city can say we want to know about it before it's sold but we certainly will look into it for you. >> yes. arduously come i think this is one of these things people knew it was in a cell for only $1 million it's worth

a lot more than that. whether the community were the city would step up to purchase it as an asset for our community. it could've been done especially at that price. >> the other question i have, which is totally speculation on my part, supervisor, is why they do not sell the building. i mean, they do not have to foreclose on. they could have sold it for more and paid the city arlene and perhaps had some funds left over for the voice of pentecost that they chose not to do that. >> i understand and that's why i think we need to continue to monitor whether it's 20 be flipped back to them. it doesn't seem very proper whatever was on. i guess i've been better not say any more than that. >> thank you supervisor >> thank you very much. any

questions? no. thank you very much. walking tours from oewd, and do a short presentation. >> good afternoon mr. chairman and supervise. the pleasure to be here walking tours from office of economic and workforce development. i want to provide a quick and brief overview with regard to our work with the community and assessing and a level of engagement with the el rey theatre as part of a larger program referenced earlier. our neighborhood as it activation program that looks at underutilized sites that have a positive neighborhood impact it activator across the city and particularly invested neighborhood corridor. we selected the el rey for a few reasons. one is because we blog setting working with the ocean avenue community through both

invest in neighborhoods and the community benefit district program. we knew that was underutilized into disrepair with bacon looking storefronts and news community desire to see more activated and potentially allow for some additional community use. we thought that maybe was going to be way to work with the building owner on these issues. however, we began assessing it like the rest of us, we learned it been transferred to a new owner the option after foreclosure by private lender. after as part of the assessment process, both our partner northern california community loan fund and our office is out multiple times to engage the new owners to learn their intentions engage them positive with you we also reached out to the church and community stakeholders to find out what their intentions were for the property as well. the church nor the owners have been very willing to engage at all and they are pretty adamant they're not interested in engaging in a

conversation with us today. despite our repeated attempts. we've included multiple offers of assistance to property owner to open pursue any kind of renovation redevelopment plans. in march we have learned through i think is important process here in terms of how we monitor these types of sites it takes a lot of kind of gumshoe work in partnership with people of eyes on the street in our community partners let us know issues happening related to construction or renovation that had been properly permitted so we were able to work with your office and your staff on the community to make sure we assigned dbi right away to people that work there was taken an improperly. this work inbox is another development we been looking at. we do this both to raise public awareness of the value of a site like this and also it will inform the permitting process that we go through this when marking job leave a draft proposal is nearly completed writenow. from our community stakeholders. so

that we can have the permitting process with any kind of alteration construction were potential demolition informed by landmark in process. were a much looking forward to working partnership our office with the committing of pursuing that process. i think that would be the best kind of update i can provide at this time. again, we are always very open throttle when marking process to continuing talks with the property owners. should they wish to accept our calls. and have a conversation with us. we have also advised although not required for the community stakeholders to reach out as well to make sure that the property owner can be involved in that when marking process as well. >> thank you very much. at this time, is there any public comment? come on up, dan. >> good morning. thanks for having this hearing. my name is

dan weaver and him representing the ocean ave., association good almonds executive director and el rey theatre is the biggest thing on the ocean avenue. it may in fact be the biggest thing, biggest building west of twin peaks for that matter. it's been there a long time. when the church bought it in 1978 they proceeded to do the wrong kind of restoration. systematically on the front, fortunately, the inside is remarkably intact oh according to the preservation consultants we hired, it's hard to proceed from here because what i am hearing from the city attorneys staff is that there is no need or law that says the senior

lien holder has to notify the junior lien holder when there's more than one lien on the property that's going to be auctioned off on the steps. as a consequence, it just the way it is that san francisco no one in san francisco government learned that this was going to be auctioned off. that's not my understanding of how the law works but are not a lawyer. so, it would be interesting to delve a little bit more into that to understand whether, in fact, the city was noticed or i don't know if this city knows if it was noticed. thank you. >> any other public comment? come on up. >> ace washington. i just happen to be here at city hall today. on some other business. i could peek in here and see this item coming up. just listening to the back-and-forth rhetoric that the city and

county gives me just give a parallel piece of property in the western addition, which oewd and all these departments are involved with. this is parallel with the same situation is where a property went bankrupt and city and county went haywire into it they want the we in our community the building is still run by the city and county we don't know what the hell is going on. i think it's ludicrous. i think it's disgusting the way we are treated in the western addition . that alone on ocean avenue pier on very familiar with the building i used to congregate there years ago to my church used to fellowship years ago and had changed ownership. but just a parallel to its going on in the western addition of a building that went bankrupt and the city took back over and we the community try to get some parts of it which we can get nothing, can't get information

about it. we don't know what is going on from wendy to another because the city and county in the department they are talking about right now is overseeing it. this same department was in here last week with a least [inaudible] yes, they damn sure need oversight on that department as well as others. now i speak parallel speaking that the department and if the owners are here, i would not look at the department get the hell out of it if the city and county does not on. if they do own it they don't manage their own business. they'll manage the buildings they have. what al is going on here? at city hall. i call it silly hall. where accountability is needed >> thank you. next. >> my name is neil ballard

anglicized resident. the el rey theatre is the most iconic building on ocean avenue and the most prominent art deco theater in the whole city. it should be preserved and dedicated to a community use but instead it was sold for the cost of a house i think is the real issue here. so, why that happened is still unclear and if every city department by god about this in the newspaper i think somebody who knows what really went on i like to hear from them especially. thank you. >> good morning supervisors. i'm alex mullaney and him and angle side resident also good i also publish the neighborhood newspaper. i lead say the el rey when i and other neighbors found out it was old we were very concerned. because as you know, we could eat without for development when it's a landmark and its farthest work product of the neighborhood i

interface with a lot of neighborhoods and community. this like conspiracy theories about what happens. there's a lot of concern that people want to feel like the city is on top of it and hoping this hearing could really put a cap on it. i wish the department of real estate had been your two kind of explain the process and i believe this post to monitor foreclosures were they have to the ability to anyhow. anyway, i do appreciate having this hearing and i look forward to coming back bringing the land marking application. >> thank you. any other-come on up. >> yes, my name is robert creed and i would leak with very closely to the el rey theatre. i'm also the owner of

the victoria theatre on 16th and mission. i just want to let the city know that that they had, or did have or may have a golden opportunity to enrich the lives of everyone in san francisco. i took a theater 16 mission st. in 1978. it was boarded up. since that time we've had programs from schoolchildren to musicals to stageplay two dramas and this year we hosted the san francisco international film festival. i mention this because this is a similar thing that could happen in the elegant in fact, the el rey zone was 10 times better than the victoria theatre and how no one could see the vision behind that and what it could do to enhance not only the neighborhood but the whole city, the school district, it's just beyond me. >> any other public comment? seeing none, public comment is closed. >>[gavel]

>> it seems like this hearing was to try to get some answers and certainly we do not get too many answers and none of us seem to know how this all transpired until after the fact and moving forward, i would love to see us emendations, in regards to policies preventing such an action to take place again. i think it is true when of the public comments why the department of real estate was here. i don't know if they would have given us any more information, but it was something i should have pushed for a living more for them to be here. in regards to this particular item, el rey, i'm looking forward to working with the community in terms of this land marking and the historical

aspects of this particular property. and hopefully this will come sooner not later so we can actually move forward with some things where it may benefit, not only the community, but also the whole of san francisco. without any further comments, then can i have a motion to file. >> i will move to file >> no objection. the motion passes. >>[gavel] >> thanks for coming. mdm. clerk please call item number three >> yes. item number three, >>[reading code] >>

>> okay. ms.- >> thank you supervisors for hearing this today. good morning supervisors. for the record my name is mary and ms. ago thompson and i'm speaking on behalf of director todd with photo. we are here today to follow-up on the june 2 gal hearing regarding the legacy registry. we've come a long way since june 2 but we recognize that we have a way to go. for the past four weeks we have been focused on creating the policies, the procedures, around the legacy business registry. we've been building the of the structure for the program and putting systems into place. prior to the june 2 hearing, director with cocaine to me and asked if i would take the lead on this project and we

could on board a manager. without hesitation i said, yes. i believe in supporting local businesses and by way of background, i am the project manager for shop and dine in the 49, by local campaign. it was just one small hitch. that was my vacation. i'm a single mom of two teenagers and i went home and told him that the vacation was on hold for just a small bit of time. my daughter asked me, mom, what are you going to do on this project? i told her the first thing i was going to do with to meet with all 37 of the businesses would yet submitted their applications. legacy businesses deserve the best customer service and that's part of what i am focused on. so, on google maps is 16-year-old daughter who insisted that she come with me, we went on an adventure.

that is to say, we shopped and dimes are way too 37 businesses in san francisco. each and every business and every business owner had incredible story to tell. from roseanne from the anchor oyster bar to billy, from the castro country club canada from fog city market, victoria door restaurant oceanside sheet metal, yes, i even took my 16-year-old daughter to this cinch, why not. these businesses are woven into the fabric of what makes san francisco unique and each merchant corridor is different from the next. when i walked into swan oyster depot tom -yelled across his customers a ms. ago how is your mom. those were the days when my-used to go to the nine are games. i had to pause for a moment deeming candlestick park or did he mean [inaudible]. then it was gypsy rose lee. the woman who used to

style my grandmother's hair. i was struck at this moment with the profound thought it's not the brick and mortar that makes the businesses legacy businesses. if the people and the owners who are the businesses. the owners who took a chance to grow, start, and stay in san francisco and maybe when my daughter goes back to school and she is asked, what did you do this summer, she will say, i got to explore the many treasures of san francisco and i got to touch its history. so, here we are today having completed a significant amount of work on the registry knowing we have more work to do. but now, as we this city family, can focus on our legacy businesses we can share the

narrative and show residents and visitors what makes san francisco so unique. i want to thank each and every one of you. i especially want to thank you or aids. darlene in particular who was always helpful and always willing to give me more information or to send me more businesses. adam who was always willing to help me with these businesses. aides who allowed me to stop into their offices unannounced and help me get i really want to thank them because as a city family that we really came together to unite and to bring for this legacy business registry. so, with that i'm quick to turn this over to regina dick and jesse from the office of small business who certainly helped to move this forward. thank you. >> thank you marianne. i really want to extend my appreciation again to talk with and to marianne thompson kazuko four being able to assist and

dedicate their time in really getting the registry up and going and launch. as then in the amount of time that's needed to the spring the process to our businesses. with that, under move on to providing updates from the last gal meeting in terms of what transpired to date. so, most importantly, we have now hired the legacy business program manager. i would like to introduce to you richard carrillo, who is part of the invested neighborhood steam who is now the legacy business program manager could richard has a stellar reputation in terms of program management and grant management and just the type of person we need to move this program for work. so i am

very excited with having him on board and starting monday, july 11, he will be officially handling all the applications that marianne and i have been handling. then, on june 8, we held a marianne and i held the legacy business registry application training for the board of supervisors aides,. just to walk through with the nomination process, with the application process and just to make sure they're very clear. then, the legacy business we've updated the legacy business website so that it has all-it has instructions for the nominees good in case you are aides need to refer back to the process if there on the osc website. are we not on? thank you. excuse me one moment.

>> can somebody help with that and you continue with your presentation? >> yes. then we had all the applications translated into english, chinese spanish and that is up on the website. again, following the last meetings we continue to reach out to all the nominees, especially those that have not yet submitted applications to make sure they're clear in the process they receive the information and be available to answer any questions. so, all

the businesses again that were on the initial list are deemed officially nominated and we do have a new list of nominees. there will be-so the nomination process that we are able to accept 300 year and so all the nominees that were submitted that we have on our list that is before you are deemed submitted through last fiscal year and so we are now able as of july 1 to accept new nominations. then, next week were starting and meeting with the legacy business grant program. so, as of today, there had and 79 nominations by the board of supervisors. 26 of these nominees have submitted applications some form of another. 53 have still yet to submit applications. of the 26,

received, 18 are deemed complete and ready for the hpc review. so, eight haven't submitted to hpc on july 20. 10 will be cemented on tomorrow's, the eighth. and then five on august 22. there were three that the applications that still need some additional information and if we do get that in soon we will be able to for that on to the august 22 meeting. then, just to provide you with an update of windows applications when they come back from hpc window be heard at the small business commission for their final hearing and to be placed on the registry. so, for those-okay,

for those businesses that will be heard at the july 20 hpc meeting, they will have their official hearing the small business commission on august 8. are those that are being heard on the august 8-august 30 hpc meeting, they will have their hearing on august 22, and then for those applications that are heard at hpc on august 17, they will be heard at the small business commission on september 12. so, just to reiterate the priorities for the legacy business registry, which rick will take on, it's really working to those 26 applications getting to the process and onto the registry. completing a branding program and getting that launch by early november. we are currently working with oewd to codify a list of nonprofits who will fit small business with

crafting their historical narrative. some has expressed this is a bit of a challenge for them and you need assistance. then, the legacy business program manager will provide with monthly updates on the status of your nominees. so, the next step is the historical preservation fund so there's to fund programs there's the business assistance grant program and the rent stabilization grants. these two programs be mr. guidelines will have their official hearing at the small business commission on july 25 get they will be forwarded to you for your 30 day i think you have 30 days to review and provide comments or make any changes and then because the businesses assistance grant to proposition j the filing,, to file for that grant is between july 1 and

september 30. because we are delayed in the registry process in consultation with our city attorney, to a ordinance we were able to extend that grant timeline and so i will be soon submitting and ordinance to the board of supervisors to extend that grant period for an additional three months. so that those businesses that are currently in the process where the ability to be able to apply for the grant program. >> could you quickly just state largest amount for each category of grants? >> so, the largest >> or the range? >> well, for the business assistance grant the largest amount that can be awarded based upon the number of businesses and the number of employees that end up in the

grant application is $500 for full-time employee up to 100. employees per business, full-time equivalent. so it's $500 and for the rent stabilization grant its four 50 ft.2 up to 5000 ft.2. >> okay. >> attached in your package if you have any questions feel free to ask me. is just a list of those that submit the applications, the right-hand column is the schedule which they'll be transferred to the hpc. this is not the date they are scheduled or the date the application will be transferred to the historical preservation

commission. then, the second list is the list of nominations and were still waiting to receive the applications. so, with that if you have any questions away happy to answer them. >> do we have on the website somewhere we're rehashing publish beyond the september 26 for this year i guess, application? going forward so people know when to hand in things? >> we will be placing information on the application in terms of the list of businesses that been nominated and those that been submitted in the process. we are still trying to figure out the best means of handling that information, but we are in communication with those with the businesses. >> which one are you referring

to? there is the 79 that is currently going through the process, 26 of them will be looked at maybe >> 26 will-we have applications. the majority of them are complete and ready to be forwarded onto the struggle preservation commission and some, we are still working with the applicants and get a few bits of additional information. so, the remainder of the applicants, the ones in the second sheet there's 53 that are denominated by the supervisors and we are still waiting for those applications, and so, i think-yyes? >> were real specific about the dates of the hearings and

everything for the first 26 i guess. we have specific dates, deadlines and so forth for the other 50-ish >> we don't until we have a pretty clear idea of when they're going to be ready to summit their applications. i think with richard moving forward will be able to start reporting out to you those nominees. the status of where they are with completing their applications.. part of it is doing the written narrative and providing some supplemental documents and we have identified at least five of the businesses that you need them, some languages systems and drafting their narrative. so we are working with oewd 12 provide a. >> i guess i'm trying to push the dates a little bit because if the next set of applicants,

and there's some that would have completed everything and have to wait around forever for the dates to be set it seems unfair and also if you set the date that's reasonable hopefully a few of these applicants will get things done quicker. >> i think i will work with richard, hearing your feedback on what is the best means for us to ensure that those nominations get their applications in as soon, as quickly as possible so we can get them scheduled on the registry. i'm just a little bit hesitant to forecast a date for an applicant and if they're not ready but another applicant may come in earlier than that would take up that slot so but i

think what we'll do to hear what your concern is supervisor yee, is really get a good assessment and idea and recommendation to you in terms of how will work with those businesses. >> okay. thank you. any other questions? seeing none, any public comment on this item? >> always great to come down here to city hall because you never know what you run into. with all these new positions in all these new programs, it is hard for you guys, the board of supervisors to keep up with it. let alone for the community it affects. with these characters are doing. excuse my french condom characters i would say something else. i'm just appalled. oewd, spa and all the

rest of the so-called groups that recently got together could always seven just request for a new program, new positions, new money, when we don't know where it's going. i'm fully requested i like to know everything about this new legacy. it sounds good. but if you come to western edition there's no letters. everything is closed up to the african-american black negroes are here in san francisco. where have you heard about the city by the bay? my name is ace, on the case. the outmigration, the fillmore corridor, something's wrong with everything that you do. but i've not heard jack dougal about nothing. i am appalled. because were bringing in new programs, bringing in new staff members and were going to be affected. we don't know jack about and i am sick and tired of being sick and tired of this

bs with a call politics down here at city hall. i call it silly hall. almond with a program together in the western addition and ain't nothing coming to the fillmore. unless i know about it so i can tell my community. i want to smell every fark and home who did it. i want to know everything in the fillmore. from this day out or file an injunction to stop everything get my name is ace, dammit and i am on this case. >> any other public comment? on this item? seeing none, public comment is closed. >>[gavel] >> could i-i want to thank the presenters for coming today. i know this a very important item for the business to have applied good as you know, many personal businesses seem to be living our city and this is one way we can be helpful as a city

to keep our small businesses which is really the economic engine in san francisco. because the two authors of this hearing were not able to come today, but to have a motion to continue this item to the call of the chair? supervisor weiner okay. there is a motion and without any objection that motion passes >>[gavel] >> mdm. clerk anything else be one >> no further business. >> so, meeting adjourned. >>[gavel] >>[adjournment] >>

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