and community development and the approval of this resolution furthers the purpose of providing affordable housing for low-income households in need, thus, to have the lease in the code section 101.3. and we are joined by bridge housing and the city attorney if you have any questions and we ask the committee to recommend the resolutions to the full board. >> chair cohen: thank you very much. we are going to hear from the budget legislative analyst on item 7, is that right? >> correct. >> chair cohen: thank you. >> the proposed resolution as stated would amend the -- sorry, would approve a 75-year ground lease with, one 24-year option to extend. and at 490 south van ness avenue, to construct 80 units of

multifamily rental housing for low-income units. and to have environmental findings and authorize the acting director of real estate and the director of the mayor's office of housing to execute the documents and make certain modifications and take certain actions. and on page 18 of our report, in table 1, we include the key provisions much th of the groun, including that the city could receive up to $1,835,000 per year in residual rent. it was equal to annual rent minus base rent or $1,835,000, that's $1,850,000 minus the $15,000 in base rent. and it could be paid from surplus cash, should surplus cash be available from the

tenant after payment of our operating expenses the city may receive that residual rent. but the department do not expect to receive that residual rent as a result of serving house holding at 60% below the median income and the debt repayment obligations associated with the housing. and we do note that under policy considerations on page 19 of our report that administrative code 23.3 requires a third-party appraisal for transactions over $10,000 and exceeding $220,000. and -- $200,000. and the review must occur no more than min nine months priord the appraisal was in june 2015 and as the department has acknowledged or three years prior to the date of the legislation. so we do actually recommend that

the board approve the resolution but contingent on the director of real estate submitting an appraisal review and an updated appraisal to the board of supervisors. >> chair cohen: let's hear more. and what are your thoughts on that? >> good morning, chair cohen and supervisors. thank you for allowing me to speak to you this morning. we are well aware of the section 23 of the code that would require under section 23.3 an appraisal and possibly a review appraisal, however, in my opinion we should be relying upon section 233 2330 which alls the director of real estate to forego an appraisal if an authorized lease below market -- if it is for a proper public purpose. in this particular case the

lease is for 100% affordable housing. so by definition we know that it's below market. an appraisal in this circumstance would only give us information on how much subsidy we're giving to this tenant in order to provide affordable housing. we know by definition that this is a below market lease. so getting an appraisal would not tell us anything more than we already know. i urge the board to allow me to exercise the authority granted me under section 2330 and that you approve the resolution without the need for further appraisal. >> chair cohen: thank you. b.l.a., what reason are you suggesting that an appraisal be given on this property? >> it was based on the residual rent that could be due to the city from the appraisal. >> chair cohen: you heard the response from the director, so

what are your thoughts? >> correct. so given that information, it does sound like there's a limited impact of an additional appraisal and that property is probably worth more than three years ago and the impact sounds minimal. so i would say that at this point it's a policy matter for the board. >> chair cohen: all right, thank you and thank you for your answer. colleagues, i don't know if you have any questions for the staff. seeing none we'll go to public comment. any member of the public that would like to speak on items 6 and 7 come up? seeing none, public comment is closed. thank you. so just real quick, the b.l.a., your recommendations are -- do they still including the recommendation for appraisal or do you want to amend that? >> well, we do want to amend that to make it a policy matter.

when we were drafting the report i was understanding that the real estate division was working on getting an updated appraisal. so this is new information for us. >> chair cohen: all right. so are there no more recommendations. >> correct. >> chair cohen: so we don't need to amend the legislation. great. thank you. so i'll make a motion to approve and send to full board with a positive recommendation. >> clerk: madam chair, i believe that miss chan indicated that she would like to amend item 7 to include the findings. >> chair cohen: she did say that, all right, thank you very much. and so i make a motion to amend item 7 to accept the findings and this is again for item 7 and we'll take that without objection. thank you. and then we are going to move item 6 forward with a positive recommendation and item 7 as amended with a positive recommendation to the full board. thank you.

items -- call item 8 next. >> clerk: declaring the intent of the city to reimburse the proceeds of future bond indebtnesses and the mayor of the director of housing to submit an application to the committee to have the issuance of the mortgage revenue bond in an amount to not exceed $80 million for 691 china basin street. >> chair cohen: thank you. we have adam cray to speak on this item. welcome, adam. >> good morning, chair cohen and committee members. i'm wit here to support the development of mission base south block 6 west. the bonds of the city will eventually issue for this project will be conduit meaning that the city will not be required to pledge any funds or property or assets towards their

repayment. and with the project description, mission bay south block west is all-affordable property at 691 china basin street east of third street in miss bay. all of the projects and the residential units serve households with no more than 60% of the median income and the buildings will be one and two and three-bedroom configurations with a handful of studio units. the community amenities include a child care center with -- 45 children approximately, and a large community rooms and commercial space. podium parking garage and off-site car share spaces and on-site laundry and bike parking. no residents will be displaced as a result of this development as the site is currently vacant. the sponsor mercy housing california, submits an application by year end. and if awarded they'll return to the board for issuance short

three there after. and here in support of the project are annie wong with the department of infrastructure and william ho from mercy, and on behalf of them we'd like to thank you for your consideration here today and we look forward to having your support for this project. our colleagues and i will answer any questions that you may have. >> chair cohen: this is pretty straightforward and an easy item. and any member of the public to comment on item 8, come on down. seeing none, this item is closed. i off approve this and send it a committee report. without objection. call items 9 through 12 together. >> clerk: item 9, approving the amendment number 1 to the domestic terminal food and beverage program lease between the bay restaurant group and the city to extend the term for five years with an option for early termination and no change to the city minimum annual guarantee of

approximately $169,000. and item 10, resolution to approve item 1 for the terminal food and beverage program lease between the city to extend for five years with an option for early termination and no change to the minimum annual guarantee of approximately $146,000. and item 11, resolution to approve item number 2 to the electronic and technology stores in terminal 2 and 3 between inmotion and to extend the term for two years with an option for early termination and no change to the minimum annual guarantee of approximately $402,000. and item 12, resolution to approve item 2 to the specialty coffee facility lease between gotham enterprises and the city to extend the term for three years with an option for early termination and no change to the minimum annual guarantee of approximately $154,000. >> chair cohen: thank you.

our speaker is back for a cameo appearance here at the budget and finance committee. thank you. >> thank you, chair cohen, kathy widener with the san francisco airport. the airport is seeking your approval on a series of lease amendments and in this case four leases in our terminal 3 boarding area f. but the proposed lease amendments between the airport and the bay area restaurant group operating as gordon birsh and the yankee pier, in motion entertainment and gotham enterprises as pete's coffee and tea will allow for the continuation of retail and food and beverage options for airport passengers in terminal 3, boarding area f, while the construction takes place to renovate the pier. with the proposed extensions the airport would receive $1.6 million in combined minimum annual guarantee rent from the four tenants.

all four tenants have currently been paying on the higher percentage rent formula and that is anticipated to continue through the proposed lease terms. the budget analyst has reviewed the lease amendments and makes recommendations to approve after amending the legislation for retroactivity and to make some clerical changes to the mag amounts in each of the resolutions. the airport is supportive of these amendments and if approved i will provide copies of the amended legislation to the clerk. >> chair cohen: thank you. so this is just a group of concession leases for terminal leases at s.f.o.,. >> correct. >> chair cohen: and the area of the terminal is to be shutdown and remodeled soon so these leases are very short term. so b.l.a., have any thoughts? >> yes, chair. the proposed resolution would approve amendments to concession lease agreements between the airport as a landlord and their restaurant group j.v. and the

l.l.c. inmotion entertainment group l.l.c. and gotham enterprises l.l.c. through december 31, 2020 for the planned construction in terminal 3 west. in table one on page 23 of our report you can see the breakdown of the key terms of the lease extensions. and the minimum annual guaranteed rent would not change for any of the leases but adjust annually based on the consumer price index. and they pay the greater of the guaranteed rent or the percentage rent based on gross revenues. and over the approximately two year and seven month term of the extensions the airport would receive at least $1,601,088 and minimum guaranteed rent as shown in table 2 on page 24 of our report. and as the airport noted we do

have some technical amendments to recommend. the first of that being to amend resolution for file 18-0210 to correctly state that the minimum annual guarantee is $412,485. and second to amend the resolution for 18-0211, to correctly state that the minimum annual guarantee is $152,104. and third to amend files 18-2028, file 18-2029, 18-2010, 18-2011 to provide for retroactive approval and to approve all of the files as amended. >> chair cohen: thank you. miss wides diner are you in agreement? >> we are. >> chair cohen: public comment

on items 12 through 9, seeing none, public comment is closed. supervisor fewer you have something? >> supervisor fewer: no, i would like to make a motion to move these to the board with a positive recommendation. >> chair cohen: let's accept the b.l.a. amendments without objection. and then we're going to move -- to move this to the committee report and we'll take that without objection. okay, fantastic. and please call 13 and 14 together. >> clerk: and 13 retroactively approving item 2 to the domestic terminal food and beverage program lease between the bay area restaurant group joint venture and the city extending by two years and since months and no change to the minimum annual guarantee of approximately $85,000. and item 14, resolution retroactively approving amendment 1 to the terminal food and beverage program lease between lady lucky and the city extending the term by one year and eight months and no change to the minimum annual guarantee of $66,000.

>> chair cohen: thank you. these are lease amendments for businesses at the san francisco international airport and both are short-term leases and they are to replace -- to be replaced by a full set of new rrfps. and once terminal one renovations are complete. when do you expect those to be complete? >> the first phase of the terminal renovation project opens next summer so hopefully june 2019. >> chair cohen: would you like to present on these items. >> chair cohen and i'm kathy widener with the san francisco international airport. these are similar to the previous items that you just approved and these are for two terminal one concession lease amendments that would extend the terms through september 30, 2019, it accommodate the t1 redevelopment stage construction and the proposed lease amendments between the airport and the bay area restaurant group doing business as max's eats and lady luck, operating as

go bistro, will allow for the continuation of food and beverage needs for passengers in terminal one boarding area b through the end of construction. over the proposed lease, the term of the lease extensions, the airport will receive at least $229,404 in combined annual rent guarantee from the four tenants. again, these two locations have always paid on the higher percentage rent formula and we expect that to continue through the term of the extensions. the budget analyst has reviewed the lease amendments and recommends approval after amending the legislation for retroactivity and again for clerical adjustments and the airport is in support of those suggested amendments. >> chair cohen: all right, thank you. b.l.a., you have any thoughts on item 13? >> yes, chair. the proposed resolutions approve the concession lease amendments between the airport as landlord

and the bay area group joint venture as tenant, extending through september 30, 2019 and adjusting the minimum annual guaranteed rent to $86,875. and as well as retroactively approving the concession lease agreement for lady luck l.l.c. as tenant and extending the term by one year and eight months through september 30, 2019 and jawchting the annual guaranteed rent to $96,648. and table one on page 28 of our report outlines the key terms of the proposed lease amendments. and table 2 on page 29 of our report shows the minimum annual guaranteed rent to be paid by the tenants under the lease amendments. totaling $229,40404 over -- for both leases for the entirety of

the amendments. and the proposed resolutions would approve the amendments to the leases with bay area restaurant group joint venture and lady luck retroactively extending the term of each lease through september 2019. and the airport is renovating terminal one and construction is expected to be completed about that time. and the airport we've been told is currently undergoing a request for proposal process to select new tenants to occupy the new concessions in the renovated terminal one. as the department noted we do have recommendations for technical amendments and the first of which is to amend resolution for file 18-2042, $86,875. and the second to amend the resolution for 18-2021 to have the guaranteed rent of $96,648 and we recommend approving the

proposed resolutions as amended. >> chair cohen tim: thank you vy much. and to the b.l.a., you had amendments, is that right? >> correct. to -- yes, technical to revise -- to correctly state the guaranteed rent for both of the files. >> chair cohen: okay, thank you very much. and public comment is open. seeing no public comment, it's closed. colleagues any questions? all right, this is also another matter that is pretty straightforward and i make a motion to accept the b.l.a. amendments without objection. and let's approve and send forward with a positive recommendation as a committee report. thank you, without objection it passes unanimously. all right. and moving on, please call 15 and 16 together. >> clerk: item 15, to the voter for an election to be held on november 6, and to amend the

business and tax code to propose the gross receipt tax january 1, 2021, on gross receipts from cannibas business activities but exempting the first $500,000 of gross receipt and the retail sales of cannibas. and 16, to have an election to be held on november 6, 2018, and to amend the code to impose an additional growth receipt tax starting january 1, 2021 on gross receipt from cannibas business activities but exempting the first $500 how to of gross receipt and exempting the sales of medicinal cannibas. >> chair cohen: this is the third time that this committee has heard this particular proposal. and i appreciate your willingness to engage on this issue and i think -- and to think about the policy implications of this legislation. the cannibas industry is a new one in san francisco and we're still finding our footing.

there's still a lot of fear and misinformation out there about cannibas and not just across the country but also in this city. we as a board try to educate ourselves about the supply chain and the land-use restrictions and about the workforce of the cannibas industry and about the compassion programs, i think that we need to bring the city along with us, again, as we educate ourselves. and the industry has shown that they are not able to do this alone and they're going to need our assistance. and if you don't mind i would like to briefly go over how we got to this point to where we are today. this tax discussion started in 2016 with the passage of prop 64. and last summer mayor ed lee convened a cannibas tax working group comprised of several members of his staff, including the office of cannibas, and the budget office, and the senior health advisor, my office, and the office of supervisor jeff sheehy and the office of the controller. we examined the rates and

structures of our neighbors, neighboring counties, cities and counties, and we determined a few things. first, that we an adjustable rate are -- that adjust annualae rates are essential to have the data-driven approach given to have a data driven approach, give how little reliable information there is out there at this time. and, second, that a dedicated tax would be premature. given the ambiguity around revenues, around the number of businesses and around prices and around the spending needs of the industry. it's just not enough solid information. we've decided that medicine should not be taxed and that we would go to the extent of our legal ability to keep medical cannibas taxes at a zero percent level. finally, based on the advice of

our city attorney and in keeping with most of other jurisdictions in or around the city, we would move forward with a gross receipts tax. now in may my office presented a group -- my office presented to a group of industry stakeholders with a plan that had a rate adjustable up to 10% starting with retail at 5%. and upstream businesses at 3%. and small business extension. and a super majority required to change the rates. this would go into effect this coming january. the feedback that we received from those meetings was not so much on the actual rates but more on the concern about the black market and the unlicensed operators. and i want to just underscore that because that is a real concern that this body now as

well as future bodies will probably have to still grapple with and we don't have a concise answer again to address the black market and the unlicensed operators. the industry has expressed a desire to want more time and space to settle into and to gain their footing. the less that we introduced in june reflected this request. it delayed the start date to 2020 as opposed to january 2019. and it had a phase-in with a lower rate for the first year. again, a lower rate, a lower tax rate within the first year. this phased in approach would give the industry more time to get into compliance. it would give the city some time to coordinate and implement an enforcement strategy. and after introduction we heard more from cultivators and manufacturers. cultivators had a unique perspective, they pointed out that they were -- that they are

price takers in the market and like most other agricultural products and together with -- together with the manufacturers, most of these small businesses represent a union and represent a p.d.r. labor force. unlike retail these businesses are more likely to move outside of the city and i think that it's a goal of ours to want to keep p.d.r. and union jobs inside san francisco. as such, in committee on july 12th we lowered the introductory rate for all businesses and lowered the tax rate for upstream businesses. and then the next round of industry feedback is that the industry craved normalcy and they pointed to the tax overhaul which will be conducted in partnership with the san

francisco chamber of commerce and this overhaul is doing to take place some time during 2020, and the industry has asked that we not put a tax if place until after that point. last week we amended to delay any tax implementation, tax rate impelection, to after that -- implementation until after that process was completed. i believe that we have been very responsive, we've been open and thoughtful about our approach as we continue to move forward. we have worked with the controller's office to understand the impacts of this on the tax industry and i want to thank again the controller for their thoughtful report, and we have worked with the industry to understand more about the black market, to understand what is necessary to help normalize this industry. and wanted to publicly affirm that we're not going to stop that conversation and we'll continue to move forward. and i want to also indicate that we're committed to working together on a compassion program and a compassion program, some of you may not be familiar with exactly what that is because

it's very much of a colloquial term but it's a program that is set aside within the industry where people understand that not everyone has the resources to pay for cannibas. and so a compassionate program discounts the cost of cannibas for those that are in need of this medicine but do not have the resources to pay market price. and the other portion that we are working -- committed to working together on is the workforce development. supervisor safai had consideration that we continue as we normalize this industry to begin to educate and create programs such as partnering with san francisco city college to educate a workforce that is then going to be poised to jump into the workforce and allow us to have a meaningful equity program. but we need revenue. bottom line is that we're going

to need revenue to do all of this work. so what i am doing is asking the industry to come to the table and to help us to figure this all out. and i want us to be good allies but that doesn't mean no taxes. so, colleagues, this week i have received a counter proposal on rates from the industry. i have sir circulated them and u have them before you and i was uncomfortable to make this decision myself so i'm bringing them to the committee so there's a discussion around what the new proposed rates are. the industry has suggested a new three-year phase-in starting in 2021. and ramping up to 2023. and eventually arriving to 3% for retail and 1.5% for everything outside of retail which is also identified as upstream. as you know our limits to ballot initiatives require a continuance. and i appreciate the industry engaging on this issue but given the two-month public process that we have been working

through i believe that it's a little bit too late. as a reminder these are just interim rates that will appear on the ballot and the board can revise the intro rates down at any time after passage before this goes into effect. i want to make sure that we consider the options. however, if any of my colleagues believe that this is inappropriate to do so, please, let me know. the amendments today would require that we have a special meeting on tuesday morning, july 31st. and with that i open up the discussion to colleagues. supervisor fewer. >> supervisor fewer: yes, so after review of what we have received today and actually i am of the belief that the board has the ability to amend this by ordering it to later on. and that it isn't imperative that we conclude this today. i ask the city attorney for his professional opinion on that and whether the legislation proposed allows the board to have the

ability to actually make these changes later on. >> deputy city attorney john gibner. as i understand the roposa proco lower the rates for retail and non-retail and scale them up over the course of three years. between 2021 and 2023. >> chair cohen: that's correct. >> if this ordinance is not amended and you place it on the ballot and it passes the board of supervisors can legislatively lower the rates by adopting an ordinance in the future without going back to the voters. so effectively you can accomplish what this amendment would do after the measure passes by adopting an ordinance at the board. >> chair cohen: okay, thank you very much. that's helpful. supervisor stefani, you have any thoughts? no. okay. all right, seeing that there are

no thoughts -- >> i would like to say that i also believe that because it's actually more prudent to actually do it after this has gone on the ballot because then the board would have more data to choose from and to review and to actually make a sound judgment on this. and, actually, the legislation allows for that as we heard from our city attorney. >> chair cohen: okay, appreciate that. thank you. so we can go ahead and open up to public comment. i see that we have mr. lazarus here who would like to speak on items 15 and 16? >> i am a licensed cannibas distributor in san francisco. and i want to make sure that

everyone is clear on what the impact would be on a gross receipt tax. as a distributor i have three responsibilities -- transport, test and tax. i pick it up from the grower. the lab tests it to make sure that it's safe for consumption and i deliver it to the retailer and i collect excise and i collect cultivation and i give it to the state. my business operates on low margins. anywhere from 3% to 10%. a 10% tax on gross receipts, if i buy something for $900 and i sell it for $1,000, a gross receipts tax means that i make zero dollars. i have two options -- i can charge more or i can go out of business. or i can work somewhere else. i'm just part of the value chain. every other business that i sell

or buy from has to do the same thing. gross receipts tax is bad tax policy and it's a depression era policy. there are other ways to gain tax revenue. i'm very grateful for my permit and i'm hiring through the s.f. jobs portal. i know that it will be a very impactful business. please reconsider how you tax with gross receipts. >> chair cohen: thank you. colleagues, i want to acknowledge that the distribution is exempt from the tax and that we are not discussing or considering a tax at 10%. >> jim lazarus, san francisco chamber and i appreciate your work on this and certainly supervisor cohen. we urge you to proceed with the amendment, proceed with the special meeting next tuesday and to put a measure on that will have the support of the industry and the broader business community.

we believe that a tax rate that is excessive comparing the legal cannibas industry to the underground illegal industry will do nothing to move forward the type of changes that we want in this industry and to bring being it out of the shadow -- bringing it out of the shadows and taxing it and regulating it and having it available to the public in the following way. following state of california and following other communities' misguided tax policies is not what we should be doing here today. this industry pays taxes today, and the city's gross receipts and payroll taxes apply to this industry today. but the rates that you add to that -- and, remember, these are additive, may hurt the legalization of this industry and i know that is not the intention of the board or the industry. so the chamber urges you to take seriously that proposal put forward for a further year delay

for a phase-in during the start-up years of this infant legal industry. allowing the board in the future -- we don't want to appear to lower them -- hopefully this is successful enough that under your provisions you will be able in the future to raise these taxes on an healthy industry. that's what we ask you to do. there's time to do it and we request that. thank you very much. >> chair cohen: thank you, next speaker. speaker.sfgov, can i have the overhead, please. president cohen and supervisor stefani and supervisor fewer, thank you for hearing my comments. i would like to congratulate jim lazarus and myself for being 3-3 and batting a thousand at the budget and finance sub-committee. i am pleased to hear that you are considering additional amendments. i worked with the california

growers association and the chamber of commerce to create rates that this industry could get behind and support. the rates as proposed when you look at the rest of california are, in fact, reasonable for a cannibas tax. but not reasonable from a tax of any other industry. so the rates that we propose up here on the overhead, have no tax for 2019-2020 and then phase-in for retail and non-retail. i point out that retail will pay double the tax of non-retail in our proposal here. because on retail they have a lot more hurdles than us. so consider the amendments that we've requested, consider the special committee hearing, and thank you to everyone for their very hard work on this very important matter. and if anybody is interested in learning more about the retailer alliance, alliance our website.

>> chair cohen: thank you. next speaker. >> hello, my name is brandon brown, the treasurer of the sfcra, and i appreciate the board allowing us to speak on this issue. i don't want to sound like a broken record but i want to just remind the board that the reason that we tax cigarettes and alcohol and other drugs is because they kill people and cannibas hasn't killed anybody, it's actually curing people. and so i'm not going to say that the tax isn't justified but i would love to know more about why we're getting taxes on top when no other industry has a social equity program. thank you, president cohen, for kind of spearheading that. and so compassion programs and the other industries have that.

we already have pretty high tax, state tax. there's already a gross receipts tax for businesses. and so i think we're really just asking to be treated like every other business in san francisco. i guess that also the main difference between cannibas and other businesses is that we cure people, we cure ptsd, and we cure cancer and we cure child leukemia and other various basic pain allmentpain ailments that e quality of life for a number of our elderly and the military coming back from war with a lot of issues. and pharmaceutical companies as we all know are not a big help in that respect. and so i would like to just bring some of those more emotional facts to the table when we talk about who's going to really be affected by this. it's going to be the consumer, like the distributor here pointed out, it's raising the

price and they'll go out of business. so the cost will be handed off. >> chair cohen: thank you. and also i want to say, mr. brown, medicinal is not going to be taxed and recreational is what is taxed. thank you, next speaker. >> hi, i am jolene enns and i'm here as a worker in the industry. for the last 12 years i have been supplementing my income or completely supporting myself in the cannibas industry as a worker, as a trimmer, just doing labor. and for a long time that was enough. those jobs that you used to pay $25 an hour or the equivalent are now gone. i'm fortunate that i got a job with a small cannibas company in the city. we occupy 4500-square-foot facility in soma and we have a 25,000-square-foot cultivation

facility that had to be moved to oakland because we just couldn't afford to do business in the city here. i'm here today because i am worried about my job and the jobs of others like me that are going to be squeezed with more taxes on our industry. it was pretty clear before the regulations came into effect that when prices were low for wholesale product and rents were high, the only way for producers to make up that difference was to lower the rates that they paid for their workers. so i can toitle totally see that happening in this industry too. there's no margin right now and we're really scrambling to get products on the shelf that are compliant with all of the regulations that are, you know, still shifting. so i'm here to speak for the workers that are trying to make a living in this new industry. thank you.

>> chair cohen: thank you. next speaker. >> good morning, supervisors. my name is dr. chris emerson, the c.e.o. of the manufacturing company here in san francisco. we operate at a severe disadvantage already against the illicit market and so we can have runway and the state will start enforcing that, the high tax rates are destroying the companies that are trying to be compliant within this. so not only 15% excise tax but lease taxes that we have to account for. and so upstream and downstream we have a heavy tax burden. there's also 280-even so as a business in san francisco or federally i pay roughly 30% more for taxes because we're not able to take a lot of writeoffoffs tt other businesses are. and we understand as an industry that we'll pay higher tax rates but the tax rates proposed at 1.5% with the ability it go up to 7% over time is untenable for companies to really survive or

that want to remain in san francisco. and i would like to draw also to your attention supervisor cohen that there's a very significant possibility that the medicinal market in california is going to be gone in a few years. the state of california doesn't want a two-tiered system and most retailers and operators in this space, almost everything is going to quote/unquote, a recreational market. and it's just that there's too many barriers for the medicinal market to actually survive. it's something to keep in mind. so as mr. lazarus suggested we urge you to consider this procedural needs to have one more special session so that amendments we propose could be considered, thank you. >> chair cohen: thank you, next speaker. >> my name is elaine brown and i'm here to really talk about something else. we have been trying to reach you, supervisor cohen, for some time and i have gotten emails from my office putting me off and saying you're in budget

hearings and i'm here with a number of delegations from your district in hunter's point who are suffering from cancer and so forth because of the radiated land. you chose to not only expand the reach in hunter's point shipyard but said this is a dream to come true to build on that and then put the big scanners out there. i'm here to ask you can we meet with you to tell you what we want to talk about since you won't come to hunter's point and talk to the people there, that the people had to come here. i can't believe that you called all those police to come here. i watched you text them, two minutes later they're showing up like we're enemies of the people. you have shown yourself to be an enemy if you don't have a meeting with us and give us a date for a meeting. i would like to introduce you to someone that you know well, danielle carpenter, whose husband lost his life because of that radiated land. that's my time. >> two years ago on march 22n 22nd, you and i spoke and we talked about -- you said that you would reopen the case because another whistleblower

had come forth. i have not heard anything and now this is going on. we would like to schedule an appointment with you to sit down and figure out what's going on. plain and simple. >> (indiscernible). >> good morning, my name is william dolan and i'm here to speak on behalf of two applicants right now. i represent and work with two applicants that have applicants in the office of cannibas for retail licenses and i would like to first say that we support the proposal put forward by the san francisco chapter of the california growers association, the san francisco cannibas retailers alliance, to adjust the rate schedule as proposed earlier by the gentleman that put up the schedule on the screen. and we would also like to speak in support of a cap on the tax at 4% instead of 7%. and specifically i'd like to

address the issue of how this is going to impact the equity on businesses and after a two-year extremely challenging process of getting license and trying to open up their doors and dealing with the costs associated with that, securing real estate and renovating the real estate and then opening to a very challenge being competitive environment. so i'd like the board to consider the impacts that this will have on equity owners trying to operate in this small business environment and if there's a potential for an additional grace period that asupplies to equity owned cannibas businesses. something to exceed two to three years. that would make their tax plan kick in around 2023 or 2024. and any type of additional grace period would be greatly be appreciated and extremely helpful for equity applicants trying to open up a business in san francisco. >> chair cohen: thank you.

>> good morning, supervisors, my name is ryan ingo-warren and i work in the cannibas industry and a san francisco native. i thank you for your consideration on this issue and as i came in i heard about possible continuations to continue the amendments and i support that. and i apologize in advance if i repeat myself at all. i want to just offer some context. in october 2016, oregon's issues came in effect and the supply chain backlog was so severe that it brought their cannibas industry to its knees and resulted in temporary layoffs of 70% of their workforce. and it's not that bad here yet, but there are some similarities that are alarming. and that sort is the broader context of the big part of that problem was poorly written statements that were requiring

testing accuracies that the labs themselves were not yet certified to meet. unfortunately, that is identical, that particular factor, is identical to what is happening in california. so given that most of that is beyond your control i hope that you will take action where you're able to by reducing the impact of these new regulations on local san francisco businesses, by mitigating the gross receipts tax. as may have been mentioned earlier the proposed taxes are 5% to 50% higher than those leveled against other businesses and we're just proposing a little consideration there. also we have seen higher taxes force patients and consumers back into the unregulated market which may raise public safety concerns with untested product and reduces your overall tax revenue. so i close by echoing the recommendations of pie colleagues and i'll leave information for your reference. reducing the cap to 4%.

and encouraging the state to lower both the excise and the cultivation tax. and doing something about the unregulated operations. >> chair cohen: thank you. next speaker. yes. next speaker. >> hi. i am a resident of bayviewpoint. and i'm here with... (indiscernible) i really want appreciate if you give us a time to meet with you. i have been at hunter's point for a very long time and i now have a clot in my left atrium and i have had a heart transplant and i'm waiting on a kidney. and i do believe that it all came from living up there for 50 years. that's all i wanted to say, thank you. >> chair cohen: thank you. all right, public comment is closed.

thank you. so, coa colleagues, i'd like to table item 15 and approve item 16 and move that with a positive recommendation and send this to committee and cent i send it asa committee report. supervisor stefani? indicated yes for the record. and if you have any clarification on anything let us know so that we can get to the information that you need as well as a timeline and answer whatever questions that may persist about the proposed tax measure. and we will take that without objection. thank you. all right. madam clerk, any other business before us. >> clerk: no other business. >> chair cohen: okay. thank you, we're adjourned.

>> my name is kamal lane, and i've lived in san francisco for 30 -- let's say 31 years. i lived there a year february

29, 2017, my grandma's birthday. the thing that's cured my home is the mayor's office. when my number was called, i was excited because my number was number three. to rent a home in san francisco means that i'm able to be with my family to support me, me to support them. then, the opportunity for my daughter to get a good paying job. my favorite thing of my new home in hunters view is the view of the bay bridge, oakland, and a piece of the golden gate. it's peaceful and quiet, and they have a lot of activities for families. they have art class, where you can paint, they have trips, where they take the children. we went to a black art museum, we went to a jazz festival, we went ice skating.

there's a lot -- they have a lot of activities up here, and that's one thing that i really love about it, i love my bedroom. it's peaceful, it's quiet, where i can think, play, and just have my quiet time. i love my bedroom. this is my home because this is where i live. me and my children, we love in here, we -- just being with my grand kids and loving somewhere and having somewhere is home. we love being together, and your heart -- wherever your heart is, that makes it home for you. . >> the san francisco carbon fund was started in 2009. it's basically legislation that was passed by the board of supervisors and the mayor's

office for the city of san francisco. they passed legislation that said okay, 13% of the cost of the city air travel is going to go into a fund and we're going to use the money in that fund to do local projects that are going to mitigate and sequester greenhouse gas emission. the grants that we're giving, they're anywhere from 15,000 to, say, $80,000 for a two year grant. i'm shawn rosenmoss. i'm the development of community partnerships and carbon fund for the san francisco department of environment. we have an advisory committee that meets once or twice a year to talk about, okay, what are we going to fund? because we want to look at things like equity and

innovative projects. >> i heard about the carbon fund because i used to work for the department of environment. i'm a school education team. my name is marcus major. i'm a founding member of climate action now. we started in 2011. our main goal it to remove carbon in the public right-of-way on sidewalks to build educational gardens that teach people with climate change. >> if it's a greening grant, 75% of the grant has to go for greening. it has to go for planting trees, it has to go for greening up the pavement, because again, this is about permanent carbon savings. >> the dinosaur vegetable gardens was chosen because the garden was covered in is afault since 1932.

it was the seed funding for this whole project. the whole garden,ible was about 84,000 square feet, and our project, we removed 3,126 square feet of cement. >> we usually issue a greening rft every other year, and that's for projects that are going to dig up pavement, plant trees, community garden, school garden. >> we were awarded $43,000 for this project. the produce that's grown here is consumed all right at large by the school community. in this garden we're growing all kinds of organic vegetables from lettuce, and artichokes. we'll be planting apples and loquats, all kinds of great fruit and veggies. >> the first project was the dipatch biodiesel producing facility. the reason for that is a lot of

people in san francisco have diesel cars that they were operating on biodiesel, and they were having to go over to berkeley. we kind of the dog batch preferentials in the difference between diesel and biodiesel. one of the gardens i love is the pomeroy rec center. >> pomeroy has its roots back to 1952. my name is david, and i'm the chamber and ceo of the pomeroy rehabilitation and recreation center. we were a center for people with intellectual and development cal disabilities in san francisco san francisco. we also have a program for individuals that have acquired brain injury or traumatic brain injury, and we also have one of the larger after school programs for children with

special needs that serves the public school system. the sf carbon fund for us has been the launching pad for an entire program here at the pomeroy center. we received about $15,000. the money was really designed to help us improve our garden by buying plants and material and also some infrastructure like a drip system for plants. we have wine barrels that we repurposed to collect rain water. we actually had removed over 1,000 square feet of concrete so that we could expand the garden. this is where our participants, they come to learn about gardening. they learn about our work in the greenhouse. we have plants that we actually harvest, and eggs from our chickens that we take up and

use in cooking classes so that our participants learn as much as anybody else where food comes from. we have two kitchens here at the pomeroy center. one is more of a commercial kitchen and one is more setup like a home kitchen would be, and in the home kitchen, we do a lot of cooking classes, how to make lasagna, how to comsome eggs, so this grant that we received has tremendous value, not only for our center, for our participants, but the entire community. >> the thing about climate, climate overlaps with everything, and so when we start looking at how we're going to solve climate programs, we solve a lot of other problems, too. this is a radical project, and to be a part of it has been a real honor and a privilege to work with those administrators with the sf carbon fund at the department of environment. >> san francisco carbon grant

to -- for us, opened the door to a new -- a new world that we didn't really have before; that the result is this beautiful garden. >> when you look at the community gardens we planted in schools and in neighborhoods, how many thousands of people now have a fabulous place to walk around and feel safe going outside and are growing their own food. that's a huge impact, and we're just going to keep rolling that out and keep rolling that >> president wolfram: calling this hearing to order. good afternoon and welcome to the san francisco historic preservation regular hearing for wednesday, august 1st, 2018.