definition are under housed. by affordable housing guidelines, you're allowed to have a number of residents in a unit equal to two times the bedroom plus one, so in a two-determine it would be two times two bedrooms plus one, so that would be five. we have some 11 and 12-person households today, and i think one nine-person household in a three-bedroom unit. so these are households that don't meet the affordable housing occupancy standards, but if they were allowed to split, then, the two resulting households would be a size that they could fit into an affordable housing unit. the second is that it may benefit some nonfamilial households that have been

roommates for a number of years and are at that point that they want to split in multiple households. if they both qualify for an affordable housing unit, then that is -- would be a potential option for those households. and then, also, in terms of the potential exposure or cost to -- to tida, implementing a program like this would not increase tida's market rate housing -- market rate replacement housing obligation because this would only apply to how's holds that were electing into moving into affordable housing units. so these are options that we're exploring so far, and we have a number of other topics where we're developing some implementation procedures and we'll continue to update the board as we adopt those going

forward, again, targeting a march 2019 implementation of an extension of an early in lieu option. we're working to plan for the premarketing purchase opportunities. ticd is planning to deliver the first building on y.b.i. in 2021, and they'll probably begin their marketing to the general public about a year prior to that. and so we'll need be to planning with them to fill our premarketi premarketing obligations before that marketing to the general public begins.

we're -- [inaudible] >> and with that, i'll take any questions that you have. >> yes. thank you, bob, i know we have some questions. commissioner dunlop? >> yes, thank you for that. i was wondering, do we have any potential numbers of who is what is where? do you have -- >> yeah. i've presented some of those demographics previously, but i can come back and present again. i believe that in terms of out of our 203 pre-d.d.a. -- pre-d.d.a. and mixed households,

that we have 44 households that potentially would qualify for -- to be able to purchase an affordable unit. again, that's based on the income that they've reported, they would still need to go through the certification process to verify that. we have -- now i'm going to be very rough in my numbers. the 44 was the number that was stuck in my head. but i think we have roughly 35 households that did not indicate what their income level was, and roughly an additional 35 that -- that reported that their income was over 125% of a.m.i. so if you assume that those who didn't report their income are also over 120% of a.m.i., that means roughly a third of the existing households are probably

in a position that they'll be seeking market-rate housing, whether that's a market rate rental unit, a transition unit provided by tida or potentially pursuing a market rate purchase of a -- of a unit constructed by ticd. but then, we have -- on the other end, we do have, i believe, 23 of our existing market rate households are section 8 voucher holders, and so those households would qualify for placement into an affordable unit. and then, we have -- again, i believe it's roughly another 40 households that although they are currently in market-rate housing, based on their reported income levels, would potentially qualify for affordable housing -- rental housing. so it -- as i said, i can -- i

can provide you a more detailed recap of those figures at a future meeting. but off the top of my head, those -- that's the rough figures that i recall. >> and none of these are with one sf or the housing with -- >> no, these are strictly the households that have been interviewed as -- that are villages at treasure island residents. these are all households that are in market rate housing -- market rate rental housing, but as i described, a significance percentage of them potentially qualify for affordable housing, as well. >> you know, we've presented this a lot to the residents, but is it possible to toss on something on -- at the november on island meeting, just a little informational bit, if that's at

all possible? >> yeah, no, we can definitely look at including a look at that on the on island meeting? >> commissioner lai? >> yes. is the intent for the rental -- the thrr eligible rental population for their rent to remain the same after transfer? >> yeah. so under the transitional housing rules and regulations, those households that elect a transition unit would move into a newly constructed unit at a rent that is essentially equal to their -- their current rent through the villages at treasure island. now, one of the challenges that we've discussed i mentioned at prior meetings, because some of these residents have moved in

in, say, 2002, and we've only adjusted their rents perthe allowable rents perthe san francisco rent board as if these were controlled apartments, that some households, quote, market rate rent, is actually very close to what an affordable rent would be. and so people have the option to -- to pursue an affordable housing unit, and the thrrs is kind of written procedurally with the assumption that if someone could qualify, of course, they would take it. but when you look at it in the -- because of the passage of time, the financial difference between a -- our current market rate rent that someone is paying and affordable rent may not be that high. and then, of course, they have

different occupancy standards, where, if you moved into an affordable unit, you might have a different number of bedrooms than you would under the thrr. so it becomes a complex choice for people whether to just take that market rate replacement unit or to go through the process of income certification to potentially qualify for an affordable unit. >> mm-hmm. yeah. i -- i feel like it's a little bit hard for me to even follow through all of stuff because i suppose for even the actual inclusionary qualifying households, they would have to go through, like, the mohcd process to qualify for the unit, and there would be basically a mechanism to, like, monitor, right, because if their income level kpieds a certain level at some point, they would no longer be eligible. if that's the case at that point, because they were a

pre-d.d.a. household, would they then transition to -- be eligible to transition into a market-rate on-island unit? if you income qualify to purcha -- >> if you income qualify to purchase it, you don't need to continue to recertify. the bulk of the market rate construction that t.i.c. will be doing will be for sale, so these inclusionary units will be for sale. under the d.d.a., they're required to develop 10% of the housing as rental. >> yeah. i think i'm trying to think through the rental scenario because that seems more complicated to me? because i think if i'm correct under normal mohcd rules, there's, like, annual reporting

of evaluation of income. but also if your household changes, your minors age out, they would potentially be transferred into a smaller unit. so in this case, how would that work? would the same rules apply? >> i believe -- i believe they would. and so we can kind of recap those for people, as well, so we might sure we're advising them of the full picture of what it means to take an affordable unit. >> and it sounds like there's not too many families that this would apply to, so we'll be able to track that. >> yeah. one of the benefits of the advisory sessions that we've had is we do have a sense of where households roughly fall with the knowledge that their circumstances change year to year. someone may get a promotion or

get a new job, income levels go up, graduate from school, but knowing where they start helps us start focusing the conversation with them. >> okay. and then, the question about who should be eligible, i understand the minors and all that, but what about the dependents, you know, like, an elderly parent or something like that? >> the thrrs don't provide for other dependents other than, you know, domestic partner, spouse, or minor child. >> okay. >> so -- yeah. >> i wonder how much of an impact it would be to us if we we were to include an -- other dependents? i don't know if that's -- >> we would not be able to do that legally because those

pre-d.d.a. were stamped -- time stamped. those that were on the island at system of record. so if you change that, you get into some legal issues there because then, the other residents would be -- so of i can't, i don't -- we -- we cannot do that. in fact, i was going to talk about that once you finish your question, i was going to expand on that. >> okay. okay. thanks. my last question has to do with those extra large households, the 11 and nine-person households that you mentioned. what is their composition? are they just basically two different families that have been in a roommate situation? >> they differ, but they tend to be multigenerational familial households, so some of them may have started with a couple and their kids, and then, their kids have gotten married and had kids

of their own, so it varies, but i think that's one of the things about -- through the advisory sessions that over time, households would have gotten smaller. but certain economic factors in the bay area, some households have gotten larger over time, as, like i said, they've become multigenerational households. >> are there any building code occupancy regulations around maximum number of people? >> there are. i don't think we're at those yet, but there are. there are health and safety limitations, as well, but i'll like into that. >> okay. i am definitely supportive allowing those families to split

into separate eligible units if we can afford. thanks. >> thank you very much. you know, bob, let me try to -- just like we did before with the transportation presentation, i think it's extremely important that we also kind of pull back a little bit to educate the public what it is we're talking about here. they're hearing about transition and rules and regulations and wondering what we are doing here. when the navy vacated, the city went to the navy and said, rather than just shut things up, i think we can provide -- use this for affordable housing san

francisco. and so at that time, i think it was a wise decision. and at that time, that's when the city started entertaining residents on treasure island. and so we need to establish for everyone that no one, no resident of treasure island that are there now that were there -- that were moved there are being displaced. no. this is where they came in. the city, through its generosity, decided that for those residents before the land disposition development agreement, a d.d.a. -- d.d.a., for people listening, is a developmental agreement, this city, knowing that no one has been displaced from treasure island out of its own goodwill, decided to identify these

residents that were pre-d.d.a., that were living in treasure island, to give them some incentives. i think we're talking about 224, less than 300. those are the ones that we're talking about today. those residents were captured, they were captured as a system of record, and the rules and regulations bind them. and what are we trying to decide here is what are the benefit for those members? now, all the ones that came after the d.d.a., they were known as post-d.d.a., and they -- again, they are those -- don't have this special kind of arrangement that we have. so we are talking about the pre-d.d.a. my question here, treasure island is also bound by city and

county of san francisco regulations. some of them are prized and privileged to how the city is treating resident of public housing as they are rebuilding public housing in the southeast, in the bayview, in chinatown, all over san francisco. their policies is one and one of placement. however, all residents in affordable housing, city policies and are also applicable to treasure island, they have to go to their income certification because we're talking about subsidized housing here. we have a disposition, the thrrs, to make sure they get housing. but we're also obligated to make sure that the city regulations are also, you know, enforced. what the city has said they will not be displaced.

we are trying to provide housing. and we need to elaborate that because that does not preclude them from housing on the main land, also, from the way that i'm interpreting this, as long as at the end of the day, this to privilege, some of them might want to get in lieu amount. say, hey, i don't want to continue to live in treasure island. we have a provision for them to get some specified amount. it's called in lieu of payment. they also have -- they don't have any restrictions if they want to move off the island. we also have those stipulations there. and so at some point, we need to be cognizant that even the city have all this housing out there, i want to ask, are we actually promoting this to some of these people, the san francisco housing development corporation that we hired to be helping them, also are doing and being involved as to some of these other nonprofits in trying to

the city b.m.r. all the time, that should not even preclude treasure island residents, so let's broaden this discussion. i'm looking at the definition of benefits here, and i want to make sure that the definition, that we are very clear what the definition is is the system of record. we need to be clear about that. we can't stretch that because of the legal implications here because we said that these 224 are pre-d.d.a. and we're going to provide them with benefits. and any time you're providing benefit, there is a likelihood of some legal implications, also. so our definition must be very clear, what, who we deem. for instance, if you are single, and you are on the system of record, okay, even if your

family -- in case point, if your family has increased now, how do we treat that because you are the holder. in san francisco resident, the head of household is clearly defined. so that system, the person that is in there now, they're the -- that's the one, a case study, that we really need to look at how -- how we're doing that. and it should not be that complicated. if we really take the time to break it down to that level, so we know what a household look like. if you bring some household's -- you know, members, the first question i'm going to ask you is who is the system of record holder? that's going to be very important before we even get into anything. and once you're able to define that, and that is very clear,

then, you might be able to, then, be able to look and answer some of these other questions that we are obligated to be asking. and then, number two, every year at a certain point, are we doing the income certification required? it should be at a point in the first of the year that we're able to do that. and the reason i'm asking this is because you mentioned we have about 30 households that are not that income. well, as to be a part of this process, it's hard-core as part of the process to really know your financial capability so that we can be able to determine them where you fit in the system. so they're going to have to go back now in this process, in order to continue discussion that's now open-ended, you're going to have to be able to

provide all of this information in order to help us decide how we're going to be able to place you in the system. and then, lastly, i asked that before: how are we engaging with this household? how are we engaging with them? i know that the last presentation, there were some he that we could not reach. well, after we approve engagement, the burden is on us to prove that we are engaging with this household. so you send a flier, but you also -- you know, also send a certified letter. that is your proof that you're engaging. at some point, we're going to ask this process to move to the next level. because again, all these houses are going to be built, and again, we also need to make sure that the other opportunities are available to some of these households, land and everywhere, so that they have an array of

opportunities that they can explore. when we do that, i think that's how people are going to see that, you know, we crossed all the t's and dotted all the i's as mandated for us and before we can really say that we've done the best we can. and i'm going to reiterate that here, that, you know, bob, so far we are going about this meticulous is great. but i think at some point in 2019, we're going to have to move the milestones. so you can come up here and give us some -- a spreadsheet or whatever, and then, we will know that out of 220 something, we only have maybe five households that we are dealing with now with some of these variations, i think that's where we wanted to go. that is my statement. commissioners, are there any other statements?

none? statements from the public? none. okay. >>clerk: item number six, retail planning. >> so kevin griffith with ticd is here, and he's going to give an update on the -- their -- their efforts -- they're beginning to do some retail planning efforts, so -- >> commissioners, kevin griffith, again, from ticd. so i know retail planning has been a topic of interest to the board, and that's why we wanted to make -- just give a brief update, basically, on the process that we're going through right now. this is kind of a time to refine our thinking on the retail. we have a plan -- you know, a loose plan that's baked into all of the documents that we've been working with so far, but right now is when we are working on

the subphase application for the island center area that encome passencome ---encompasses that. i wanted to just briefly update what we've been up to over the last month and then update that exercise in november and december. so again, this is an opportunity to kind of reevaluate where things are when the planning documents were put together several years ago. you know, retail has obviously changed a little bit -- quite dramtly, actually, in the last few years. we want to make sure what we're putting together is feasible,

sustainable, serve the residents and also allow merchants and entrepreneurs who come to the island, open up shop, to sustain -- survive and have is y y you -- sustainable businesses. we have people that have been involved from day one. we're bringing into the process some kind of retail specialty architects, designers, and kind of retail economyists and brokers who understand day-to-day where the market is and what's working and also folks who have experience in similar -- there's nothing like treasure island, but retail in a

newly developing kbrar aarea ano make it survive. the scope of the exercise is actually bigger than just retail. it encompasses the entire area, so how do we interact with that area there, and how do we interact the marina? we want the -- that's where we want to focus the energy, but i would expect that we might come up with some more subtle changes as to whether retail wants to spill out towards clipper cove or into the plazas, how people move in and out of the area. also i know there is a trend now for smaller and smaller or

microretail that seems to be more sustainable for businesses. i think we'll be looking at that and whether it applies to treasure island, and i expect that we'll get some good thinking about the sequence of how we bring retail on-line. we're going to have the subphase application come in and get approved, but when we build things and time them so we can look at the success of the businesses as the island fills up with residents. it also serves as that kind of central place. you want a gathering place, you want the neighborhood identity, and we want to make sure that's preserved, as well, but we want to bring it on-line in a way as the island builds out in order to have all the amenities

together, working together. so again, i'm sort of predicting what might come out of the conversation. it's just starting now and we'll come back when we've kind of processed through this thinking and let us know what kind of conclusions we're coming up with. >> thank you. this is really great. i think the two approaches to looking at this is that treasure island, you will have about, what, 18,000 people living there, so that is really great. but it is also a destination, a destination, so it's a mini city within a city that we're talking about. so the kind of retail that we'll be looking about is to satisfy the residents that already live there, and then, for the visitors that are going to be coming to visit the island. and there are successful models even in california. i travel a lot to san diego. i know their waterfront development and how they've

tried to, you know, bring a retail -- we can look at some of those successful models to look at, and i'm sure when we go to new york, we'll see some. let's see how other places are treating, and there's some -- you know, some parts of europe like in amsterdam that i visit a lot that i also see some emerging retail, and we can look at that, what others are doing and introduce that even more. because now the motion of -- notion of retail is even changing. brick and mortar is dying. sears just filed for bankruptcy, and we might need to change what we look at in the new definition of retail. c.m.g. with all those architects

and also here tida, and building things from scratch, so will be able to be able to be helpful. so yes, sir, we would like to have you back and tell us so we can look at your plan. commissioners. >> thank you. >> very good. i can't wait to -- i can't wait to hear as it progresses, so i appreciate your time. thank you. >> thank you. >> but can you remind me what is the size of retail square foot age that t.d.a. same calls for? >> it's just over .5 million square feet of retail space. it's reused space, building one, hangar two, and hangar three. i think the important reason for this look now is that all of the

mixed use zone property is in the major phase one, in the zone that was just approved that's moving into construction now, as well as in the subphase that ticd is preparing for, so this is a really important time to kind of take this look at retail planning and how it's best distributed throughout that -- that major phase one area. >> yeah, i absolutely agree, this is super important because again my idea this has to neighborhood serving amenities. so this retail study, are we generically saying -- is that supposed to mean all active uses or are we just specifically saying -- looking at retail? like, the strict definition of retail under the planning code? >> yeah, i believe it's all

uses. >> okay. >> because, like, conceptually, hangar three has been kind of entertainment oriented, but not strictly retail. >> yeah. >> the thought is these commercial spaces are going to be neighborhood serving, be neighborhood focused. and consistent with our conversations earlier about transportation, minimize those number of reasons that would draw you off of the island by -- by meeting, you know, that -- a large percentage of those routine need that the residents of the island are going to require. >> i'm really happy to hear that it's not just strictly looking at retail uses. it goes beyond that, and that would have been my comment, to encourage the retail consultant to look beyond the strict definition of retail services or type of, like, transactional type of uses.

because i think most people recognize for san francisco, we have a very vibrant commercial environment with a lot of urban, like, very usable amenities for visitors and residents, but there's still an increasing amount of retail vacancy. and i think as other commissioners have already mentioned, it's just a reality that the traditional format of retail is changing, and the experience needs to be curated. i hope at the end of, i guess, before you said, i guess, december, that there would be an actual retail study. is that the product of this group, this work be group? would there be an actual study? >> the study -- i think we will be generating more than that. a study report will follow.

it doesn't need to be part of the subphase application, but for our purposes and your purposes, i think we need to take it a little bit beyond that minimum requirement. >> thank you. let me ask any, you know, public comments? seeing none. >>clerk: item number seven, discussion of future agenda items by directors. >> none? okay. all right. let me just take this opportunity, again, you know, to thank everyone that are here and watching us. this has been really a vibrant, robust discussion. we all get excited here at the wonderful opportunity to develop, you know, these two islands, yerba buena, treasure island. what we do here have implications for the development in the rest of the region, the country, and definitely for san francisco, we are doing things a

little bit differently here in trying to utilize the state of the art, and we are highly environmental conscious and climate conscious, and that's why the development has already won the highest of its kind of platinum lead. so, you know, the work's in progress. see you next time. thank you. bye.

[♪] >> i just don't know that you can find a neighborhood in the city where you can hear music stands and take a ride on the low rider down the street. it is an experience that you can't have anywhere else in san francisco. [♪] [♪] >> district nine is a in the southeast portion of the city. we have four neighborhoods that i represent. st. mary's park has a completely unique architecture. very distinct feel, and it is a very close to holly park which is another beautiful park in san francisco. the bernal heights district is

unique in that we have the hell which has one of the best views in all of san francisco. there is a swinging hanging from a tree at the top. it is as if you are swinging over the entire city. there are two unique aspects. it is considered the fourth chinatown in san francisco. sixty% of the residents are of chinese ancestry. the second unique, and fun aspect about this area is it is the garden district. there is a lot of urban agriculture and it was where the city grew the majority of the flowers. not only for san francisco but for the region. and of course, it is the location in mclaren park which is the city's second biggest park after golden gate. many people don't know the neighborhood in the first place if they haven't been there. we call it the best neighborhood nobody has ever heard our. every neighborhood in district nine has a very special aspect. where we are right now is the mission district.

the mission district is a very special part of our city. you smell the tacos at the [speaking spanish] and they have the best latin pastries. they have these shortbread cookies with caramel in the middle. and then you walk further down and you have sunrise café. it is a place that you come for the incredible food, but also to learn about what is happening in the neighborhood and how you can help and support your community. >> twenty-fourth street is the birthplace of the movement. we have over 620 murals. it is the largest outdoor public gallery in the country and possibly the world. >> you can find so much political engagement park next to so much incredible art. it's another reason why we think this is a cultural district that we must preserve. [♪]

>> it was formed in 2014. we had been an organization that had been around for over 20 years. we worked a lot in the neighborhood around life issues. most recently, in 2012, there were issues around gentrification in the neighborhood. so the idea of forming the cultural district was to help preserve the history and the culture that is in this neighborhood for the future of families and generations. >> in the past decade, 8,000 latino residents in the mission district have been displaced from their community. we all know that the rising cost of living in san francisco has led to many people being displaced. lower and middle income all over the city. because it there is richness in this neighborhood that i also mentioned the fact it is flat and so accessible by trip public transportation, has, has made it very popular. >> it's a struggle for us right now, you know, when you get a

lot of development coming to an area, a lot of new people coming to the area with different sets of values and different culture. there is a lot of struggle between the existing community and the newness coming in. there are some things that we do to try to slow it down so it doesn't completely erase the communities. we try to have developments that is more in tune with the community and more equitable development in the area. >> you need to meet with and gain the support and find out the needs of the neighborhoods. the people on the businesses that came before you. you need to dialogue and show respect. and then figure out how to bring in the new, without displacing the old. [♪] >> i hope we can reset a lot of the mission that we have lost in the last 20 years. so we will be bringing in a lot of folks into the neighborhoods pick when we do that, there is a demand or, you know, certain types of services that pertain

more to the local community and working-class. >> back in the day, we looked at mission street, and now it does not look and feel anything like mission street. this is the last stand of the latino concentrated arts, culture and cuisine and people. we created a cultural district to do our best to conserve that feeling. that is what makes our city so cosmopolitan and diverse and makes us the envy of the world. we have these unique neighborhoods with so much cultural presence and learnings, that we want to preserve. [♪]

>> hi. my name is carmen chiu, san francisco's elected assessor. when i meet with seniors in the community, they're thinking about the future. some want to down size or move to a new neighborhood that's closer to family, but they also worry that making such a change will increase their property taxes. that's why i want to share with you a property tax saving program called proposition 60. so how does this work? prop 60 was passed in 1986 to allow seniors who are 55 years and older to keep their prop 13 value, even when they move into a new home. under prop 13 law, property growth is limited to 2% growth a year. but when ownership changes the law requires that we reassess the value to new market value.

compared to your existing home, which was benefited from the -- which has benefited from the prop 13 growth limit on taxable value, the new limit on the replacement home would likely be higher. that's where prop 60 comes in. prop 60 recognizes that seniors on fixed income may not be able to afford higher taxes so it allows them to carryover their existing prop 13 value to their new home which means seniors can continue to pay their prop 13 tax values as if they had never moved. remember, the prop 60 is a one time tax benefit, and the property value must be equal to or below around your replacement home. if you plan to purchase your new home before selling your existing home, please make sure that your new home is at the same price or cheaper than your existing home. this means that if your

existing home is worth $1 million in market value, your new home must be $1 million or below. if you're looking to purchase and sell within a year, were you nur home must not be at a value that is worth more than 105% of your exist egging home. which means if you sell your old home for $1 million, and you buy a home within one year, your new home should not be worth more than $1.15 million. if you sell your existing home at $1 million and buy a replacement between year one and two, it should be no more than $1.1 million. know that your ability to participate in this program expires after two years. you will not be able to receive

prop 60 tax benefits if you cannot make the purchase within two years. so benefit from this tax savings program, you have to apply. just download the prop 60 form from our website and submit it to our office. for more, visit our website, sfassessor.org, >> in november of 2016, california voters passed proposition 64. the adult use of marijuana act. san franciscans overwhelmingly approved it by nearly 75%. and the law went into effect in january of 2018. [♪] >> under california's new law, adults age 21 and over can

legally possess up to 1 ounce of cannabis and grow up to six plants at home. adults in california can legally give up to 1 ounce to other adults. >> in the state of california, we passed a law that said adult consumption is legal. if you are an adult and in possession of certain amounts, you will no longer be tried. you will not be arrested or prosecuted for that. that is changing the landscape dramatically. [♪] >> to legalization of cannabis could bring tremendous economic and social benefits to cities like san francisco. >> this industry is projected to reach $22 billion by the year 2020. and that is just a few years away. >> it can be a huge legal industry in california. i think very shortly, the actual growing of marijuana may become the biggest cash crop in the state and so you want that to be

a legal tax paying cash crop, all the way down the line to a sales tax on the retail level. >> the california medical industry is a 3 billion-dollar industry last year. anticipating that multiplier as 20, 30, 50 times in the consumer marketplace once adult use is really in place, you could go ahead and apply that multiplier to revenue. it will be huge. >> when that underground economy becomes part of the regular tax paying employment economy of the bay area, it not only has a direct impact, that money has a ripple impact through the economy as well. >> it is not just about retail. it is not just about the sensor. is about manufacturing pick a lot of innovative manufacturing is happening here in san francisco in addition to other parts of the state as well as the cultivation. we should be encouraging that.

>> there is a vast array of jobs that are going to be available in the newly regulated cannabis industry. you can start at the top tier which a scientist working in testing labs. scientists working at extraction companies. and you work towards agricultural jobs. you have ones that will require less education and you look towards cannabis retail and see traditional retail jobs and you see general management jobs. those things that are similar to working at a bar restaurant or working at a retail store. >> we are offering, essentially, high paid manufacturing jobs. typical starting wage of 18-$20 an hour, almost no barrier to entry, you do not need an education. >> that means that people who do not have college educations, working-class people, will have an opportunity to have a job at cultivating cannabis plants. there's a whole wide array of job opportunities from the seedling to the sale of the

cannabis. [♪] >> last year, they said 26 million people came to san francisco. >> the tourism industry continues to be very robust here and the city and county of san francisco is about a billion-dollar industry. >> if we use a conservative cannabis user adoption rate to 15% that means 4 million tourists want that means 4 million tourists want to purchase cannabis. and we need to be ready for th them. >> in 2015, as adult use legalization efforts gained momentum in california, the supervisors created the san francisco cannabis state legalization task force. this task force offered to research and advice to the supervisors, the mayor and other city departments. >> we knew that adult use legalization was coming to the ballot and stat that would bring with it a number of decisions that the city would have to make about zoning and regulation and so forth.

and i decided at that time, at a know it was a great, that rather than have a fire drill after the ballot measure passes, as suspected it would, we should plan an event. so i authored a task force to spend a year studying it and we made it a broad-based task force. >> we prepared ourselves by developing a health impact assessment and partnered that with key stakeholder discussions with washington, oregon, colorado, to really learn lessons from their experience rolling out both adult and medicinal cannabis. >> within days of the passing of the proposition, ed lee called on agencies to act decisively. >> he issued an executive order asking the department of public health, along with planning and other city departments to think through an internal working group around what we needed to do to consider writing this law. >> we collectively, i would say

that was representatives from g.s.a., as well as the mayor's office, met with a lot of departments to talk through what prop 64 and the implementation of prop 64 it meant to them. >> the mayor proposed an office of cannabis, a one-stop shop for permits allowing operators to grow and sell cannabis. >> he wanted a smart structure. he wanted a regulatory structure that ensured that kids didn't have access and community's were safe and that consumers were safe. and he wanted to ensure, more importantly, it was a regulatory structure that encouraged diversity and inclusivity. >> this is an office that will be solely charged with a duty of wanting not only the policies that we create, implementing and enforcing them, but also executing the licenses that are needed. we're talking about 20 different licenses that will put us into

compliance with what is happening on the state level. >> this is a highly, highly regulated industry now, at this point. we have anywhere from 7-10 departments that will be working with these industry participants as they go through the permitting process. that is a lot of work at a loss of coordination. we are creating a permitting process that is smart and is digital. it is much easier for the user and for community input, and is less mired in bureaucracy. >> for the first time ever in san francisco history, standalone licenses are available for all aspects of the nonretail side of the cannabis industry. now, a cultivator can go in to the department of building inspection and to the department of health and say, with this first registered and temporary license, and then what will eventually be a permanent license, this is the project, this is what i am going to do.

>> very rarely in city government do we interact with industries that are asking to be regulated. these guys want to be regulated. they want to be compliant. they want to work with the city. that is rare. >> san francisco has created a temporary licensing process so that the pre-existing operators here in san francisco can apply for a temporary state licensed. >> we have taken teams of up to 12 inspectors to inspect the facility twice a day. we have been doing that with the department of building inspection and the department of public health. and the fire department. >> it is really important for the industry to know that we are treating them like industry. like manufacturing. like coworkers pick so that is the way we are approaching this from a health and safety and a consumer protection network. this is just the way practice happens with restaurants or manufacturing facilities.

>> because there are so many pieces of industry that people haven't even thought about. there are different permits for each piece. you have to set up a permitting system for growing, for manufacturing, for testing. for delivery. for retail. you have to make sure that there is an appropriate health code. certainly the regulation of alcohol in terms of restaurants and retail it's probably a model for how this industry will be regulated as well, both on sale and consumption. >> it is completely uncharted territory. there is a blessing and a curse with that. it is exciting because we are on a new frontier, but it is very nerve-racking because there's a lot at stake. and quite frankly, being san francisco, being the state of california, people are looking to us. >> we hope that cannabis does become more of an accepted part of society in the same way that alcohol is, the same way coffee

is. >> it is a very innovative fear, particularly around manufacturing. san francisco could be an epicenter. >> san francisco can be a leader here. a global leader in the cannabis movement and set a bar just to other communities and cities and states and this nation how it is done. [♪] >> good morning, everyone. good morning. thank you all so much for being here today to announce the launching of the rising up

campaign to reduce youth homelessness here in san francisco. as many of you know, every night, there's over 1200 young people in our city who are experiencing homelessness and our goal is to cut that number by at least 50% in the coming years, but to do that, we need pard partnerships from all levels of government, from the provide sector, from our nonprofits, and we're excited that so many people have come together to launch this