. >> and on that motion to forward to the full board with a positive recommendation vice chair dorsey and dorsey i remember in cardio and cardio i chair and i janai we have three eyes thank you and the motion passes and mr. clerk please call item number two. >> yes. item number two is a resolution approving the ninth amendment to the contract between the municipal transportation agency and texaco llc for services related to the towing, storage and disposal of abandoned and illegally parked vehicles to increase the contract amount by 15.3 million for a total contract amount not to exceed 136.7 million for the balance of the second year and the last three years of the five year extension with no changes to the term of april 1st 2016 through march 31st 2026 effective upon approval of this resolution. >> madam chair, thank you. and of course we have a to hear. yes, hi. good morning. >> my name is lorraine fukui. i'm a manager with the parking group. today's item before you is a tow contract amendment with texaco formerly known as order return requesting approval for an additional $15.3 million in sp

vice chair dorsey and dorsey i remember in gado and gado i chair can i can i we have three eyes the motion passes and with that mr. clerk please call item number four. >> item number four is a resolution approving and authorizing the general manager of the san francisco public utilities commission to execute a water capital program management contract with hdr stantec javy to provide program management consulting services to support delivery of the water enterprise and hach hetchy water capital improvement programs and the water system improvement program for an amount not to exceed 80 million and with a duration of ten years with an anticipated timeframe from april 2025 through march 2035 pursuant to the charter. >> madam chair, thank you. >> and today we have the public utilities commission here. >> good morning chair chan vice chair dorsey and supervisor and garcia i am katie miller, director of water capital programs for the sfp you see today we seek your approval to authorize the general manager of the sfp to see to execute contract number pro 205 water capital program management cont

vice chair dorsey i dorsey i remembering gado gado i chair chan i chan i we have three eyes the motion passes and with that mr. clerk please call item number eight. yes item number eight is an ordinance amending the administrative code the one wave competitive procurement and certain other municipal code requirements for contracts, grants and leases necessary to accelerate the city's response to homelessness drug overdoses and substance use disorders, mental health needs, integrated health needs and public safety hiring are the core initiatives. number two delegated to department heads the authority to approve certain types of contracts, grants and leases for core initiatives under the charter. if the board of supervisors has failed to act within 45 days three delete the requirement under chapter 23 of the administrative code that the board of supervisors approve leases if the lease is for a court initiative for authorize the city to accept gifts, grants and other donations for core initiatives. five clarify the authority of the comptroller to transfer surplus funds to support core ini

chair mahmood vice chair mahmood i member salter high member salter i chair dorsey i chair dorsey i have three eyes. >> thank you madam clerk the motion passes and congratulations to the applicant. madam clerk, can you please call the next item? >> yes. item number two is a hearing to consider that the person to person premise to premise transfer of a type 21 off sale general beer wine and distilled spirits liquor license to dapper hill llc to one businesses dapper located at 1198 pacific avenue will serve the public convenience or necessity of the city and county of san francisco. >> thank you madam clerk and i think now i'll welcome up officer froines from s.f. pd's abc liaison unit officer florence the floor is yours. >> thank you. good morning. you have before you a pc and report for dapper hill to operate as dapper they have applied for a type 21 license and if approved this would allow them to operate an off sale general package store at 1190 1198 pacific avenue. there are zero letters of support zero letters of protest . they're located in plot 136b which is considered a low crime

. >> and on that motion to continue this hearing to the call the chair vice chair dorsey dorsey i remembering cardio and cardio i church can i can i we have three eyes the motion passes and mr. clerk do you have any other business before us today? and that concludes our business. thank you for the meeting stream >> i used drugs from the age of 15 till 29. i had no friends. i had no family. i wanted to quit because i didn't want to die. since i have been in recovery i could write a novel. i have finished college and held great jobs. by dad was back in my life. [indiscernible] it is never too late to go. >> shop and dine the 49 promotes local businesses and changes san franciscans to do their shopping and dooipg within the 49 square miles by supporting local services within the neighborhood we help san francisco remain unique, successful and vibrant so where will you shop and dine the 49 >> shop and dine in the 49 promotes local businesses and challenges residents to do their business in the 49 square files of san francisco. we help san francisco remain unique, successful and right vi. so where

chair dorsey vice chair mailman s.f. governs sharing my slides. >> as chair dorsey mentioned we were awarded this $20 million community change grant from the u.s. environmental protection agency for a package of transportation projects for treasure island in december. we have an award agreement and the grant is considered obligated. no local matches required and the period of performance is three years starting in this past january. the grant is funded through the environmental and climate justice program of the epa. so funded by the inflation reduction act. so there is some uncertainty around it at this moment. however we're moving ahead with this action item in anticipation of being able to move forward. the treasure island connects program delivers priority recommendations from the treasure island supplemental transportation study that we conducted with one treasure island which was funded by the transportation authority. we work very closely with one treasure island and the treasure island community to review existing services and how those could be improved as well as new initiatives that would benefit the existing resi

chair melgar. >> commissioner chan, aye. >> and a commissioner chen, aye. >> commissioner dorsey, aye. >> commissioner engardio, aye. >> commissioner fielder, aye. >> commissioner mahmood, aye. >> chair mandelman, aye. >> commissioner dorsey> commissioner sauter, aye. >> commissioner sherrill, aye. >> commissioner walton. >> there are 11 ayes the motion to vice chair melgar is approved. >> congratulations vice chair melgar. >> we're going to do some technical switching around. >> you let me know, which. >> okay. thank you colleagues very exciting. um, nominations are now in order for the office of vice chair. >> and i will take a moment to thank you for giving me the opportunity to do this and to nominate someone has expressed lots of interest in transportation and understand how crucial access to accessible and affordable transportation is to the climate to the equity our colleague commissioner fielder today i have a second? >> chair mandelman as segmented for commissioner sauter and i accept the nomination. >> okay. we now have to take public comment on that nomination. >> you have beautiful and now wasn't (unintelligible) recently honestly (unintelligible). >> you said she wants she - and now responsible for the transp

chair melgar. >> commissioner chan, aye. >> and a commissioner chen, aye. >> commissioner dorsey, aye. >> commissioner engardio, aye. >> commissioner fielder, aye. >> commissioner mahmood, aye. >> chair mandelman, aye. >> commissioner dorsey are 11 ayes the motion to vice chair melgar is approved. >> congratulations vice chair melgar. >> we're going to do some technical switching around. >> you let me know, which. >> okay. thank you colleagues very exciting. um, nominations are now in order for the office of vice chair. >> and i will take a moment to thank you for giving me the opportunity to do this and to nominate someone has expressed lots of interest in transportation and understand how crucial access to accessible and affordable transportation is to the climate to the equity our colleague commissioner fielder today i have a second? >> chair mandelman as segmented for commissioner sauter and i accept the nomination. >> okay. we now have to take public comment on that nomination. >> you have beautiful and now wasn't (unintelligible) recently honestly (unintelligible). >> you said she wants she - and now responsible for the transportation. seriously. okay. no way i'm going too sign off. >> what in which. >> a mayor your

dorsey and again by supervisor sartor who are both co-sponsoring this item. so i will let supervisor dorsey have the floor first. >> go ahead. thank you so much chair melgar . colleagues, i am pleased to bring this item to you today. along with mayor lurie and supervisor sartor, we are all well aware that san francisco's downtown continues to face major challenges and this item is the latest step to address one of the key strategies for downtown and citywide economic recovery. converting vacant office and commercial spaces into much needed housing. now currently san francisco has an historically unprecedented 37% office vacancy rate that is about 32,000,000ft2 of vacant office space. and even the most optimistic projection projections suggest that it will take many, many years to get back to a healthy office market. meanwhile, as we all know, we also face a state mandated mandated arena target to facilitate the production of 82,000 units of housing by 2031 and the arena is the regional housing needs allocation. this is why office to housing conversions are a key element of our downtown recovery efforts. they not only contribute to our housing goals but also reduce the supply of vacant offices which helps to stabilize the office market and by extension our property and business tax base that supports everything we do in the city. however, we are not currently seeing those projects move forward at the scale or the pace that we need. from the beginning of my time here my office has worked with the office of economic and workforce development and the department of planning or planning department to identify policy options to support these projects and we have identified three main city imposed costs that are holding them back. the city's real estate transfer tax which was waived by proposition c last march. property taxes which the city can now begin to address under the recent state legislation ab 242 2488 by our own assemblymember ting. and the city's inclusionary housing requirements and impact fees which is what this ordinance seeks to address. this ordinance would help lower those costs by waiving impact fees including inclusionary housing requirements for downtown office to housing conversion project projects. i believe this waiver is appropriate for this targeted set of projects. commercial to residential conversions in the core downtown areas which is the c three and c two zoning districts because these projects address two of the city's most pressing needs housing production and economic recovery. and i believe it is a reasonable tradeoff to make when we are currently not getting any impact fee revenue or inclusionary units from all these projects that aren't getting built due to the high costs. this ordinance is about stimulating housing development in downtown. both these conversion projects and new housing projects downtown and citywide. so i would also like to propose a couple of non substantive amendments that my staff has circulated with you. they are clarifying the definition of gross floor area on page six line ten simplify ing the language concerning modifications for pipeline projects. this is striking language starting on page seven line seven and replacing it with new light language online six. and finally i'd like to amend the ordinance to include the planning commission's recommendation that this waiver be included in the inclusionary tax regular feasibility study of the inclusionary program. this would add a reporting requirement for planning to the inclusionary tack on page eight line 21. i want to thank supervisor mahmood for agreeing to move these amendments today in committee. we have from planning or we would and most read here for questions. so once again i want to thank you chair melgar and i look forward hopefully to passing this out of committing today. and thanks also to mayor lurie and supervisor sartor for your partnership on this. and before we hear from planning staff i know my colleague from district three and co-sponsor supervisor sartor would also like to say a few words to marcelo. chair melgar thank you and so presidency thank you for all your work on this and the collective work of this body to hopefully advance a vision of downtown as thriving and reimagined with more residents and more homes some of the most attractive buildings for conversion in our order office buildings many of which are sitting empty or underutilized and in district three as we speak. i want to stress that each conversion is significant. it will awaken a vacant spot, activate a block, generate a stream of foot traffic and economic activity. each one of these matters. and i believe that this legislation helps more of these become reality the conversions that are facilitated by this ordinance would be in areas that are already dense, close to transit and around commercial areas bringing more housing to these areas is good for small business, good for our transit systems and good for our environment. these buildings already exist. >> their footprints are there and for many they have already paid these fees when they were first constructed. we all understand the importance of inclusionary units for our supply of affordable housing but those who need affordable units are not being supported when no new units are being built as long as new units are economically infeasible. we will continue to have a housing crisis. the cost of inaction is too high. voting against this delaying this is saying that the status quo is fine but it is not our status quo of a sluggish recovery a hollowed out downtown and a continued housing crisis is not acceptable. >> thankfully this is avoidable with legislative action like that before us today. i want more san franciscans to have the opportunity to experience the magic of living in district three and district five in district six. so i hope you all join me in supporting this vision for the future of downtown and vote to move this bill forward today. thank you. thank you. and vice chair chen, if it's okay if we can have the presentation from the department first and then we can have discussion before we go to public comment if that's okay. okay. >> good afternoon chair melgar supervisors lily langlois planning department staff. i'll just give a quick update of the planning commission hearing that took place on december 12th. as supervisor darcy mentioned, this legislation would waive impact fees and the inclusionary housing requirement for certain adaptive reuse projects in downtown. >> the planning commission voted to recommend approval with the following modifications as first to modify the language for the calculation of space. >> so that is consistent with the gross floor area definition that currently exists in the planning code. >> the second is to extend the pipeline date from january 1st to april 1st to align with when the ordinance would be in effect. >> and the third is to recommend the inclusionary housing technical advisory committee, the tac to include this inclusionary housing requirement for adaptive reuse projects in their work program. >> the department has worked with the city attorney and supervisor dorsey on the additional clean up language related related to pipeline language and that concludes my update from the planning commission and happy to discuss anything broader around this legislation and the adaptive reuse work the city has been underway for the last year. thank you. thank you miss lengua. >> okay. i see your ten. yes. i think affordable housing is also very important especially in our community to make sure that we continue to have the financial capacity and then also continue to get the appropriate fee that it's from all this impact fee and inclusionary unit to make sure that we all community continue to have the resources to support especially in cultural district in district six and also the our city also had committed in part prior to this is to make sure that our equity geography are also being evaluated in this process. so i do want to have a concern and i know that we will all go to public comment and then i would like to have a motion after that too. >> okay. thanks

dorsey and again by supervisor sartor who are both co-sponsoring this item. so i will let supervisor dorsey have the floor first. >> go aad. thank you so much chair melgar . colleagues, i am pleased to bring this item to you today. along with mayor lurie and supervisor sartor, we are all well aware that san francisco's downtown continues to face major challenges and this item is the latest step to address one of the key strategies for downtown and citywide economic recovery. converting vacant office and commercial spaces into much needed housing. now currently san francisco has an historically unprecedented t 32,000,000ft2 of vacanthat is office space. and even the most optimistic projection projections suggest that itle man many years to get back to a healthy office market. meanwhile, as we all know, we also face a state mandated mandated arena target to facilitate the production of 8200 units of housi by031 andhe arena is the regional housing needs allocation. this are a key element of our downtown recovery efforts. the supply of vacant offices wh h to sbilize the office market and by extension our property and business t base that supports everything we do in the city. however, we are not currently seeing those projects move forward at the scale or the pace that we need. from the beginning of my time here my office has worked with the office of economic and workforce development and the department of planning or planning department to identify policy options to support these projects and we havedentified thain city imposed costs that are holding them back. the city's real estate transfer tax which was waived by proposition c last march. property taxes which the city can now begin to address under the recent state legislation ab 242 2488 by our own assemblymember ting. and the cs incon housing requirements and impact fees which is what this ordinance seeks to address. this ordinance would help lower those costs by waivingpact fees including inclusionary housing requirements for downtown office to housing conversion project projects. i believe this waiver is appropriate for this targeted set of projects. commercial to residential conversions in the core downtown areas which is the c three and c two zoning districts because these prts address two of the city's most pressing needs housing production and economic recovery. and i believe it is a reasonable tradeoff to make when we are currently not getting any impact fee reven or inclusionar units from all these projects that aren't getting built due to the high costs. this ordinance is about stimulating housing development in downtown. both these conversion projects and new housing projects downtown and citywide. so i would also like to propose a couple of non substantive amendments that my staff has circulated with you. they are clarifying the definition of gross floor area on page six line ten simplify the lguagecernin modificationorine projts this is striking language starting on page seven line seven and repngew light language online six. and fina ie t amend ce tohe remmendation that this waiver be included i the inclusionary tax regular feasibility study of the inclusionary program. this would add a reporting requirement for pnning to inclusionary tack on pageight line 21. want to thank supervisor mahmood for agreeing to move these amendments today in committee. we have from planning or we would and most read here for questions. so once again i want to thank you chair melgar and i look forward hopefully to passing this out of committing today. and thanks also to mayor lurie and supervisor sartor for your partnership on this. and before we hear from planning staff i kw my colleague from district three csorupersor sartor would also like to say a few words to marcelo. chrelgar thank you and so presidency thank you for all your work on this and the collective work of this body to hopefully advance a vision of downtown as thriving and reimagined with more residents and more homes some of the most attractive buildings for conversion in our order office buildings many of which are sitting empty or underutilized and in district three as we speak. i want to stress that each conversion is significant. it will awaken a vacant spot, activate a block, generate a stream of foot traffic and economic activity. each one of these matters. and i believe that this legislation helps more of these become reality the conversions that are facilitated this ordinance would be in areas that are already dense, close to transit and around commercial areas bringing more housing to these areas is good for small business, good for our transit systems and good for our environment. these buildings already exist. >> their footprints are there and for many they have already paid these fees when they were first constructed. we all understand the importance of inclusionary units for our supply of affordable housing but those who need affordable units are not being supported when no new units are being built as long as new units are economically infeasible. we will continue to have a housing crisis. th cost of inaction is too . voting against this delaying this is saying that the status quo is fine but it is not our status quo of a sluggish recovery a hollowed out downtown and a continued housing crisis is not acceptable. th legislative action like that before us today. i want more san franciscans to have the opportunity to experience the magic of living in district three and district five in district six. so i hope you all join me in supporting this vision for the future of downtown and vote to move this bill forward today. thank you. thank you. and vice chair chen, if it's okay if we can have the presentation from the department first and then we can have discussion before we go to public comment if that's okay. >> good afternoon chair melgar supervisors lily langlois planning department staff. i'll just give a quick update of the planning commission hearing that took place on december 12th. as supervisor darcy mentioned, this legislation would waive impact fees and the inclusionary housing requirement for certain adaptive reuse projects in downtown. >> the planning commission voted to recommend approval with the following modifications as first to modify the language for the calculation of space. >> so that is consit with the gross floor area definition that currently exists in the planning ce. >> thesecond is to extend the pipeline date from janua 1st to april 1st to align with when the ordinance would be in effect. >> and the third iso recommend the incluonary housin technical advisory committee, the tac to include thislusiony housing projects in their work program. >> the dtment worke withhe citttor aor d odional clr telin languand that concludes my update from the planning commison and happy to discuss anything broader aroun tsion ane re underway for the last year. thank you. thank you miss lengua. >> okay. i see your ten. yes. i think affordable housing is also very important especially in our community to make sure that we continue to have the financial capacity and then also continue to get the appropriate fee that it's from all this impact fee and inclusionary unit to make sure that we all commuty continue havrces to support especially in cultural district in district six and also the our city also had committed in part prior to this is to make sure that our equity geography are also being evaluated in this process. so i do want to have a concern and i know that we will all go to public comment and then i would like to have a motion after that too. >> okay. thanks. sounds good. than you. let's go toublic comment on this item please. >> mr. clerk. thank you, madam chair. land use and transportation will now hear public comment on agenda item number two please come forward to the lectern ne up to speak along that western wall if you are waiting for your opportunity to address the committee please begin. >> good afternoon chair melgar and members of the land use and transportation committee. my name is jackson napier speaking on behalf of the san francisco chamber of commee. the san francisco chamber supports the proposed amendment to the planning code to exempt certain downtown projects converting nonresidential uses resential from development impact fees and requirements. we believe this ordinance will incentivize adaptive reuse of underutilized commercial spaces thereby increasing housing availability in our city by facilitating such conversions, san francisco can ass housing affordability while revitalizing t downtown aawbm9 . we commend the inclusion of provisions that streamline the modification process for previously approved projects. this flexibility is crucial for developments navigating changing market conditions. we urge the committee to approve this ordinance to promote sustainable urban development and economic vitality. >> thanks. thank you for showing your comments to the next speaker please. good afternoon supervisors alex landsberg with the■zelal dustrys gs consider this want you to remember that eliminating or adjuing impact fees and really subsidi projectss up being gifts of public funds to t procts as well. so when you think about public benefits, i want you to make sure to keep in mind wage levels for the people who are actually going to be building these things. there was legislation that was vetoed by the governor in the past legislative session i think 31, 68 or 3068. remember there were four numbers that was carried by assemblyman haney. my understanding is it's going bce and that established strong labor standards for these types of projects. i encourage you to incorporate those into these if they haven't been already. >> thank you. >> thank you for sharing your comments. let's have the next speaker please. good afternoon supervisors. my ne is zachary friel. i'm ad5identnd i work with a south of market action network. in 2023 this body moved for two significant pieces of legislation the constraints reduction ordinance which streamne the housing approvals process and the housing fee reform plan which reduced inclusionary housing requirements in developer impact fees. >> in addition, sb 423 kicked in last june further streamlining the approval process. but providing pathways for ministerial review. >> and yet in spite of all of these measures that are supposed to result in more housing developmentsthe city approved only 1200 new units of housing last year less than half of the 2500 units approved in 2023. before any of these pieces of legislation took effect, it doesn't seem like the problem is that there's too much red tape or too many fees and requirements. th problem lies in market conditions with inftion and rising construction costs resulting in low prot margins for developers and no desire to build. with that in mind, i'd like to ask you how many more giveaways do developers need before they housing?tually building remove the social obligations that developers sulesmpacted byw endeoin ints per theity's chinatown all included in this new zone being proposed are considered priority equity geographies meaning that these are neighborhoods where i quote the city needs to expand permanently affordable housing investment where zoning changes must be tailored to serve the specific needs of the communities thacommunities and y needs need to be prioritized. and in spite of this no effort at engagement oriscussn of this legislation was made by the district office to our communities which include the small filipinas and transgender cultural districts. we are opposed to this legislation unless cultural districts in priority equity geographies are removed from this legislation. >> thank you so much. thank you for sharing your comments. so t ntpeaker please. >> good afternoon supervisors. my name is crystal bonio i'm a d5 resid a ucator for ten years in the missionad man sdents that would commute to sl i progm from the somaany familyiscussions musn't meion tt the soma hbor parks for residents. their d6 has the least amount of parks per capita out of any district in the city. cote a facility■b needs assessment in 2021 that found so much infrastructure is not enough to support current residents especially families with children and will be significant and significantly strained with the influx new residents who will live in these new housing projects thus removing impa fees will hinder the city's ability to maintain and build community serving facilities for a growing and diverse soma neighborhood. we need to mention the city's current budget deficit we should not be cutting more potential sources of revenues to maintain and upkeep our neighborhoods. as such, we ask that the priority equity geography fees be removed from this new zoning plan. >> thank you. thank you for sharing your comments. so the next speaker pleas. >> good afternoon commissioners. my name is jack silva and i'm a principal at sdg and a spur board member. i've spent quite a bit of time over the last couple of years contribute inghe effort to catalyze downtown revitalizati spec only through the strategy before you converting functionally obsolete office buildings to residential. we've learned over the last few years for our city to thrive our downtown needs to be transformed into something more diverse and more activated to become more resilient at facilitating people living downtown is an essential strategy in getting there. >> commodity class b and c office buildings which is about 25,000,000ft2 of san francisco's office stock is languishing and ireasingly functionally obsolete by some analys it could take 40 to 50 years for this set of office buildings to get back to a normal vacancy rate. >> many of these buildings are opportunities for conversion and in addition to these buildings currently not generating any foot traffic activation or diversifying the downtown, these largely vacant and dormant buildings are n and will not generate fees or affordable housior theity in enacting the policy before you the city is not losing anything that it actually has or would ever get from these obsolete office buildings because this is simply changing the interior the city's infrastructe ed i think it's also really importano pnt outt conversions will hap the ectingf legislation coming that supports or enacts some state legislationhat was pasd.and flyf long time planning commissioner catherine moore whose support for affordable housing has been prettynwavering, this particular legislation is an express speaker's time is concluded. >> thank you for sharing your comments with the committee. let's have the next speaker please. >> good afternoon chair melgar members of the land use committee tim rice field rep carpenters local 22 the carpenters union is here in support of the proposed legislation. the members of our union have been profoundly affected by the downrn in the econo economic activity in the downtown core. many of our members who once worked on the tenant improvements and remodels have been out of work as office vacancy rates have clied to nearly 40% at the same time our members continue to be squeezed by the ongoing housing which have forced ma tmuterom hours away just to get back to san francisco making these types of projects of■ñ critical importane to our members and all construction workers. ve, this will only work with the inclusion of strong labor standards that include prevailing wages, health care and training opportunities. these labor standards will help lift up the construction workers across the city while also ensuring that we have the workforce necessary to undertake thesean enhanced infre financing district as permitted in ab 2488 and we expect to see the adoption of strong labor stanrdsaf. we lookwa t working with the board and staff on developing these standardse spae residential one is a win win for our city, our downtown and our construction workers. we thank the board and the mayor for their ongoing work on this issue and look forward to continuing our work to revitalize downtown san francisco. >> thank you for time. thank you for sharing your mments let's have the next speaker please. >> hello. i'm brian davey, president of preconstruction and shareholder for build group or a general contractor here in san francisco. founded and headquartered h we are signatory to the carpenters and laborers and over the years passed we'veun about a thousand trade per trade trade workers in the field. we're down roughly 60% and one thing we've been doing as a general contractors working with all the local developers and pushing adaptive reuse that's a discusight now and i've personally wd millions of square feet that is just begging and waiting for revival with this adaptive reuse and we'rey, ver close to unlocking these projects and creating new homes and helping revive the city. and i urge you to approve this legislation to help support us and we're ready to continue to build san francisco. >> thank you for sharing your comments. >> so the next speaker please. >> thank you supervisors for ur wor■x in pushing forward this very important legislation to help spur housing creation in the city. my name is tom chen and i represent xrp, a major commercial landlord in downtown san francisco. >> the city faces a very differt reality today than before the pandemic with rising construction costs and interest rates as well as significant commercialacancies in downtown. we're only startingo see the impact of these changit the looming fiscal deficit, lack of new housing starts and a closing of closing of small and local businesses in downtown. counity is a ptnero theent city in helping to address the housing crisis a revitalisco. tlity is that economic challenges coming out of the pandemic have made it difficult to attract capital investment needed to build additional housing stock at the moment. impact fees and affordable housing requirements are unfortunatelyouod to housiatio especyvers projects. >> just cannot get off the ground. we support the proposed legislation to enable more housing creation and thank you committee for taking another step today toward showing that the city is on the right path towards recovery. thank you. hankou for your comments. next speaker please. >> afternoon. my name is eric colitis and i'm the housing planning and policy manager at spur which is a public policy organization dedicated takingan francisco and the greater bay area prosperousequitable and sustainable. commercial to residential conversions particularly redeveloping obsolete office buildings intoousian help solve two is hav ed dntown francisco'secover a the lack of diversity ofd uses and the lack of workforce housing near empen transit opportunities. othermecan and ternational cities have used fiidentiversio and adapteuse tra their cal busess districts into mixed use4 seven social hubs with housing entertainment cultural institutions. and these cities haveade this happen largely by providing incentives including lowering clusiory rates and fees and reducing property here these conversion projects could create workforce housing in an area that already has high quality transit connections in place and will bring new residents to help support the ggli with feweeopleeenultural and ls activity downtown siec. >> we commend the planning department, the mayor and the board of supervisors for their work over the last year identify buying and mitigating barriers to these commercial and residential conversions along with real estate transfer taxes and local property taxes. inusionary requirements represent policy levers that the city can adjust to make these conversion projects financially feasible. >> speer supports reducing these fees and requirements temporarily to incentivize commercial to residential conversions at least for this first phase of conrsion projects until the downtown mark is aittle healthier. >> thank you. thank you for you. >> hello my is christina lennox i coounder of brownstone shared housing and we ced place that's affordable for $700 month to foerly vacant bank and thenrly we were hit with an affordable housing fee of $306,000 which stunts our growth and it actually puts us at risk of having to pack up all of our furniture and move out of the city. >> but without this affordable housing fee we're able to create not just tens more housing for people but hundreds more in a few months. so i am in support of removing this affordable housing fee. >> thank you. thank you for sharing your comments. next speaker please. >> good afternoon. my name is p.j. eugenio and i'm with som can completely exempting conversion pct from all impact fees hurt existing rdents in the saddle market and set a dangerous precedent reg ctment o existing residents. the impact fees support desperately needed affordable housing child care, school pa serving irastructure. it feels like the city is doing whatever it can do to push low income working class families out of the city. is legislation shows who the city wants to serve and who the city wants to ignore. we are opposed to this legislation unless amended. we would like cultural district and priority equity jailed. >> geography removed from this new zoning plan. thank you. thank you. next speaker please. >> good afternoon supervisors. i'm mark babson. i'm president of emerald fund. we are longtime san francisco housing developers. we've built thousands of units here in the city over the decades inclung an office residential conversion at 100 venice just a block away or we took an obsolete office building converted it to 418 homes which stands today. things have that was in 2015. we completed it. things are different today. that same building would cost us 70% more to build the exact same building and rents are pretty much where they were in 2015. projects don't pencil that's why we see no tower cranes here . we have less housing being built than anywhere in the countr we have been looking at possible conversions. we've toured 15 buildings at last count. we bring in architects, structural engineers, mechanical electrical, plumbing engineers have a contractor price it up, look at market studies and run performance. and what we've learned is that with the right levers and thers three osnd pervisor dorsey'sd them with those three levers we actually would see conversions in about a third to a half of those 15 and it's it's transfer tax which was on the ballot st mar property tax which assembly member ting passed in 2488 still needs action by the board but that big one last one is is affordable housing fees it's about 75,000 per unit that affects a market rate project. so with these three i think we're going to see we're going to see tower cranes, we're going to see conversions sta■7rt to happen and we're going to see activating downtown. that's what this is about. it's it's bringing life to downtown and people do go to the coffee shops restaurants. thank you for your comments. >> nex speak please. >> good afternoon. excuse me. good afternoon supervisors. my name is louis morante i'm vice psident of public policy with the bay area council. i'm here to align my comments in support of this item with spur and several of the developers who've already spoken. >> i want to emphasize a couple key

dorsey and again by supervisor sartor who are both co-sponsoring this item. so i will let supervisor dorsey have the floor first. >> go ahead. thank you so much chair melgar . colleagues, i am pleased to bring this item to you today. along with mayor lurie and supervisor sartor, we are all well aware that san francisco's downtown continues to face major challenges and this item is the latest step to address one of the key strategies for downtown and citywide economic recovery. converting vacant office and commercial spaces into much needed housing. now currently san francisco has an historically unprecedented 37% office vacancy rate that is about 32,000,000ft2 of vacant office space. and even the most optimistic projection projections suggest that it will take many, many years to get back to a healthy office market. meanwhile, as we all know, we also face a state mandated mandated arena target to facilitate the production of 82,000 units of housing by 2031 and the arena is the regional housing needs allocation. this is why office to housing conversions are a key element of our downtown recovery efforts. they not only contribute to our housing goals but also reduce the supply of vacant offices which helps to stabilize the office market and by extension our property and business tax base that supports everything we do in the city. however, we are not currently seeing those projects move forward at the scale or the pace that we need. from the beginning of my time here my office has worked with the office of economic and workforce development and the department of planning or planning department to identify policy options to support these projects and we have identified three main city imposed costs that are holding them back. the city's real estate transfer tax which was waived by proposition c last march. property taxes which the city can now begin to address under the recent state legislation ab 242 2488 by our own assemblymember ting. and the city's inclusionary housing requirements and impact fees which is what this ordinance seeks to address. this ordinance would help lower those costs by waiving impact fees including inclusionary housing requirements for downtown office to housing conversion project projects. i believe this waiver is appropriate for this targeted set of projects. commercial to residential conversions in the core downtown areas which is the c three and c two zoning districts because these projects address two of the city's most pressing needs housing production and economic recovery. and i believe it is a reasonable tradeoff to make when we are currently not getting any impact fee revenue or inclusionary units from all these projects that aren't getting built due to the high costs. this ordinance is about stimulating housing development in downtown. both these conversion projects and new housing projects downtown and citywide. so i would also like to propose a couple of non substantive amendments that my staff has circulated with you. they are clarifying the definition of gross floor area on page six line ten simplify ing the language concerning modifications for pipeline projects. this is striking language starting on page seven line seven and replacing it with new light language online six. and finally i'd like to amend the ordinance to include the planning commission's recommendation that this waiver be included in the inclusionary tax regular feasibility study of the inclusionary program. this would add a reporting requirement for planning to the inclusionary tack on page eight line 21. i want to thank supervisor mahmood for agreeing to move these amendments today in committee. we have from planning or we would and most read here for questions. so once again i want to thank you chair melgar and i look forward hopefully to passing this out of committing today. and thanks also to mayor lurie and supervisor sartor for your partnership on this. and before we hear from planning staff i know my colleague from district three and co-sponsor supervisor sartor would also like to say a few words to marcelo. chair melgar thank you and so presidency thank you for all your work on this and the collective work of this body to hopefully advance a vision of downtown as thriving and reimagined with more residents and more homes some of the most attractive buildings for conversion in our order office buildings many of which are sitting empty or underutilized and in district three as we speak. i want to stress that each conversion is significant. it will awaken a vacant spot, activate a block, generate a stream of foot traffic and economic activity. each one of these matters. and i believe that this legislation helps more of these become reality the conversions that are facilitated by this ordinance would be in areas that are already dense, close to transit and around commercial areas bringing more housing to these areas is good for small business, good for our transit systems and good for our environment. these buildings already exist. >> their footprints are there and for many they have already paid these fees when they were first constructed. we all understand the importance of inclusionary units for our supply of affordable housing but those who need affordable units are not being supported when no new units are being built as long as new units are economically infeasible. we will continue to have a housing crisis. the cost of inaction is too high. voting against this delaying this is saying that the status quo is fine but it is not our status quo of a sluggish recovery a hollowed out downtown and a continued housing crisis is not acceptable. >> thankfully this is avoidable with legislative action like that before us today. i want more san franciscans to have the opportunity to experience the magic of living in district three and district five in district six. so i hope you all join me in supporting this vision for the future of downtown and vote to move this bill forward today. thank you. thank you. and vice chair chen, if it's okay if we can have the presentation from the department first and then we can have discussion before we go to public comment if that's okay. okay. >> good afternoon chair melgar supervisors lily langlois planning department staff. i'll just give a quick update of the planning commission hearing that took place on december 12th. as supervisor darcy mentioned, this legislation would waive impact fees and the inclusionary housing requirement for certain adaptive reuse projects in downtown. >> the planning commission voted to recommend approval with the following modifications as first to modify the language for the calculation of space. >> so that is consistent with the gross floor area definition that currently exists in the planning code. >> the second is to extend the pipeline date from january 1st to april 1st to align with when the ordinance would be in effect. >> and the third is to recommend the inclusionary housing technical advisory committee, the tac to include this inclusionary housing requirement for adaptive reuse projects in their work program. >> the department has worked with the city attorney and supervisor dorsey on the additional clean up language related related to pipeline language and that concludes my update from the planning commission and happy to discuss anything broader around this legislation and the adaptive reuse work the city has been underway for the last year. thank you. thank you miss lengua. >> okay. i see your ten. yes. i think affordable housing is also very important especially in our community to make sure that we continue to have the financial capacity and then also continue to get the appropriate fee that it's from all this impact fee and inclusionary unit to make sure that we all community continue to have the resources to support especially in cultural district in district six and also the our city also had committed in part prior to this is to make sure that our equity geography are also being evaluated in this process. so i do want to have a concern and i know that we will all go to public comment and then i would like to have a motion after that too. >> okay. thanks