Cost per square foot of 5. 92, as determined by an appraiser from the cost of acquiring these easements is 426,000 and funding was previously approved by the board of supervisors under the sf puc water system improvement program. We recommend you improve these proposed resolution thank you. We will now open us up to Public Comments. Anybody wish to comment on item number 11 . Seeing none, Public Comment is now closed [gavel] i move that we move this item forward to the positive recordation thank you with a motion by supervisor mar on item number 11. Weekend we take the boat if we need to would you like me to call item 12 toilet supervisor tang so the motion by supervisor mar to move item 11 oh we can take that without objection [gavel] madam clerk, you now call item number 12 item number 12 hearing to consider proposed Initiative Ordinance submitted by four or more supervise to the voters at the november 13 entitled ordinance amending the mission of code to modify the definition of the legacy business to establish the legacy business Historic Preservation fund, which will fund grants for legacy businesses equal to 500 per fulltime england employees in San Francisco and plans for landlords that extends will property leases to legacy businesses for terms of at least 10 years equal to 4. 50 per square foot of the improvements in San Francisco lease to the legacy businesses. Thank you. Hobbies, this item was sponsored by supervisor compost and heres here to conduct this hearing, although not i [gavel] to come back from recess. Where regular schedule budget and finance subcommittee from wednesday, july 8, 2015. The clerk has just called the last item on our agenda, item number 12 help turnover to supervisor compass to conduct this hearing judge thank you. My apologies for being late. Im going back and forth between this meeting and the mbc. I want to thank you for this opportunity to have this matter heard in committee today. This legislation is ultimately about protecting what we love the most about San Francisco. Its about protecting those places that matter to most of us as san franciscans. I personally think about what i love about San Francisco, for me, a number of things come to mind, but three things i want to highlight today are, one, i love the diversity. The people of San Francisco. Priestley, i love the Natural Beauty of this incredible bay area. But i also think that whats so great about San Francisco is the unique character of its neighborhoods. The milk used to say San Francisco is a city of neighborhoods. We, at San Francisco are not a cookiecutter type of city. Were not a city that was full of chain stores. When you look at our neighborhoods we have unique commercial court orders that are made up of Small Businesses, cafes, bars restaurants, nonprofits and retail stores. These are stores that often sell products that are made in San Francisco, and i think were very proud of that. Our city really, i believe, is the city that it is, the beautiful place in such a top tourist that destination because of that unique character that our neighborhoods have. Unfortunately, right now were starting to lose the character of some of our neighborhoods. One of the reasons that changing is because you have outstanding healthy successful businesses that are closing. The closing, not because they havent been successful. The closing due to astronomical rent increases that are happening in the city. It is the hottest commercial Real Estate Market that we have seen. Recently, my office commissioned a study to look into this problem. We asked our budget and legislative analyst to do a report, which was very thorough. What was shocking about the report is that it shows that in 1992, the number of established businesses, and by established, we mean five years or more, that closed or moved at that point was 518. In 2011, that number increased to almost 3700 businesses that close. Thats an increase of almost 6 in percent. Not necessarily a long period of time. Let me be very clear. The intent of this law, this measure, is not to prop up on healthy businesses, but what scary right now in some of the businesses the city is known for. Businesses that have been around for more than 30 years, but were calling legacy businesses these businesses successful as they have been are being pushed out by skyrocketing rental rates. But me just mention a couple of those that have unfortunately been lost. The empress of china. Joes cable car, the lexington club. So many others. I get calls to my office from businesses over time in my distant and actually, other parts of the city asking for help as these commercial enterprises face increasing rent rental rates. So, what we have before us is a Ballot Initiative that is aimed at helping these businesses, these legacy businesses stay in San Francisco. It is about preserving these businesses and in the process preserving the character of our neighborhood. Phase 1 of this process was something that we have already done, and i want to thank my colleagues on the board of supervisors, because earlier this year we passed unanimously a legacy business registry in San Francisco and we are actually diversity in this country to do that. Other countries have done it but no one has done it in the us. The way that works is that members of the board of supervisors were the mayor can nominate up to 300 legacy businesses a year to be included in that registry. Hearing a Small Business theres a hearing before the Small Business commission where they must prove three things. One, they been in existence for 30 years or longer. They have contributed to the culture and history of the community, and that they are going to agree to maintain their name and their arts and craft. We are happy to note that this registry will launch in september of this year. We want to make sure that all of us on the board of supervisors are aware of this and that we are engaging our favorite legacy businesses and respective districts to make sure that they apply for this registry because it is on a firstcome first serve basis. The second phase of this effort to help these legacy businesses is what were talking about today, which is a Ballot Initiative. Its a first of its kind legacy business distort Preservation Fund that creates incentives to preserve businesses on this registry, and this fund essentially, has two parts. One, the legacy business distort preservation account, which provides annual grants to legacy businesses based on the number of fulltime equivalent employees at that business has. The business is eligible for annual grant of 500 per employee, with a cap of 100 employees so that the focus again, remains on the Small Business. The second keys of this fund is what we are calling the legacy business rent stabilization fund, which provides incentives for building owners, those that are housing a third to a half of the legacy businesses that do not own the property whether located. This would offer those Business Owners incentives to provide a longterm leases to these legacy businesses. If they provide a lease of 10 or more years to legacy businesses , then, that owner will be eligible for an annual grant of about 4. 50 per square foot capped at thousand square feet. We know that this legislation will have a major impact on keeping longterm businesses in San Francisco and serving the character of our neighborhoods. Not surprisingly, this legislation is actually getting a lot of national attention. We are the first to do this, but we know that places like los angeles, new york they are already drafting their own version of this type of effort. This legislation will send a message this measure will send a message to Small Businesses and nonprofits, that it comes to commercial real estate and this market, that they are not alone. That we as a city believe that we that they as legacy institutions and legacy businesses, that there worth preserving and more partly, will send a message we want to Work Together to do what it takes to preserve a character of our neighborhoods. The legacy business Preservation Fund is created with the input from Small Business leaders, preservation activists, nonprofit workers, small property owners. I especially want to thank at the heritage as well as the National Trust for Historic Preservation, which is been instrumental in developing this legislation in the ballot measure from its inception but im very excited to be here. I want to thank all the folks who are in the audience who will be speaking on this and i also want to thank my staff, my former staff, whos been working on this a couple years as well as my chief of staff, hillary rowman, whos helping lead this effort. With that, i will also note, by the way, that there is a report that came out from the controller that talks about the Financial Impact that this effort will have. For the first year, would talk about a Financial Impact of about 2. 1 million3. 7 million. When you look at the larger context of almost 9 billion budget, i believe that this is a pretty small investment that we are making, and the bottom line is this. We helped Companies Like twitter be in San Francisco, and if we can do that for those large corporate players, its only appropriate that we also help our treasured legacy businesses and nonprofits that have given character to our neighborhoods. That we give them a fighting chance to stay in San Francisco. So, before i turn it over to Public Comment, or make sure i get my colleagues and opportunity to say a few words. Supervisor mar thanks to supervisor compos and has that bit i also want to thank my for several years of work and technology that supervisor avalos and kim and i are cosponsors really supportive of supervisor compos is leadership on this. Im really inches in what buenos aires london and barcelona are doing in similar ways and the other cities that supervisor compos mentioned. From sf heritage work in 2013 and other business i think important that we college the research that we did that came out in the report in 2014. I believe it was called San Franciscos living history. I think the framing in the report their strategies for sustaining sentences goes Cultural Heritage and living history is really important. I love the Six Strategies that brought out him and i know the Arts Commission and other agencies are already utilizing the strategies, but i especially like the quotation at the very top of the report from rebecca and i think im going to read it because i think its that i found. Rebecca, one of San Franciscos premier writers and globally acclaimed authors says, culture is not only economically beneficial to cities, in a deeper sense is what cities are for. The city without poets, painters and photographers is sterile. Does in the dana mears of its own inner workings in the form of creativity or cultural memory. Its undergone a lobotomy. Thats from rebecca from a few years ago. I think the example that supervisor compos gave us whats happening to different neighborhoods but commission, parts of richmond as well, as businesses close, people are displaced and the whole waking weight of the living history, and i think we think of history often as something from the past but i think as the report points out, theres tremendous assets in Human Dignity resources that we need to preserve and protect. I think this legacy fund does that. I like, also, that its not only looking at businesses like trader enrichment were that mentioned in the report but also communities nonprofits like bush township were nonprofits that were talking about preserving. So im really pleased with all the work thats been done in district 6 and nine, but also other areas that will benefit tremendously from these grants and the support of the living history of symptoms. So thanks to supervisor compos. Mr. Buehler, and sf heritage and other Coalition Members will be working on this. As a move to the bow. Supervisor compos i just want to go china were to hear from mr. Buehler and other folks as supervisor mar said. Easter buehlers role in all this, and the store Preservation Agency that we mentioned has been critical. I think it makes sense that we in San Francisco are leading the way on this issue. We have always been trailblazers on a number of fronts, and i figure make sense to do that with this issue. I also want to thank the City Attorneys Office because this kind of outside the box effort, which is really what this is is, is not easy to put together and it took a lot of creativity on the part of the City Attorneys Office. I see that we have a number of young folks who have come into the chamber, but the bottom line for me is that i want this young generation to be able to live in a San Francisco where these treasured legacy businesses and legacy nonprofits continue to be a part of this city. It would be sad if we lose more of these institutions and to my colleagues who are cosponsors of this Initiative Im very grateful for your support to supervisor mar im a supervisor avalos, and supervisor kim. I welcome any other supervisor to join in our effort to promote this. With that i dont have any questions at this point or any more comments. I also see, by the way, we have the Mayors Office of Workforce Development and the Small Business commission, Regina Dickens received we would not be able to do this without their support. So, im very grateful for making that happen. So, with that, mr. Chairman, we are ready to open it up to Public Comments. I know we have a number of individuals that are here. My colleagues once it supervisor cane wax i want to thank supervisor compos and cosponsors for bringing this item work i have to say i agree with giving you stated. I know we want to do our best to preserve businesses here in San Francisco that really contribute to the Cultural Heritage of our city. One of the things that i mentioned before the previous ordinance that we can all support, but is something that i wish could have been addressed in this particular amendment, that although this particular one focus on legacy businesses, i would love to see more that we can do for you and you businesses that are coming into our neighborhoods, were once hoping to expand. I know that from our offices perspective we have come into contact with many many businesses that are locally grown my residents of our neighborhood who want to come here and some of the problems that they often encounter the fact that they cannot pay rent while theyre waiting for our cities permitting process to go through. For example client had to get up commissioners punted with a scratch on it how we can help them with such a competitive rental market, i know all the landlords, its much more difficult for new businesses or once try to expand to do that in a neighborhood. So, im just wondering him either from your perspective or maybe if any of the speakers whether its office of Small Business or oe wg, can speak to this, but i like to see if theres other ways that we can actually help support businesses that again, may not be legacy but new ones that come and transform some of our neighborhoods in very positive ways, at least ive seen in the sunset district at least. So, would love to have a little bit discussion on that as well. Supervisor compos just briefly, on that, thank you supervisor ccane wax. I think something that should be done. When you have a ballot measure is to make sure there is one subject matter they are focusing on. Quite frankly for me, and for the folks involved the loss of these legacy businesses is such a time sensitive issue that we wanted to begin the work by focusing on that. What i envision, supervisor tang and love to work with you on this we would expand this concept to include new businesses, to include some of the existing businesses that are not necessary legacy businesses because legacy businesses to very specific definition, and i also think that with respect to legacy businesses and other businesses, another issue that needs to be tackled is how do we help businesses not just with the rent also purchase properties because theres nothing like actually owning a space to provide stability. So, i think all those are things that need to be explored and my hope is that between now and the time that ive left on the board of supervisors that we will be will to expand on this work, and i think this provides a model for how to do that. We wanted to make sure that we tackle some something there was manageable. Thats how this became the priority. Look forward to working with you and my colleagues some of the other issues you raise. Thank you for that response. I was a that one of the things that we talked about as well mentioned earlier the permitting process and how that can provide difficulties for some businesses. I know that we are doing at work right now with oe wg various other city agencies as well. So, in terms of this particular program and this the grant so provided to the businesses would be 500 per employee up to a maximum of 100 employees. Then, adjusted for cpi each year. I think one of my concerns though, again, although fully support the intent behind this, i just wonder how impactful it would be if we had a bookstore, right, as five employees. They were qualified as alike as it doesnt get up to five dollars per employee that about 2500 for the year. Im a business person so i cant say how much how impactful that to under 500 is, but im just wondering if theres other things we could do the sides these grants that could help a business be able to survive. I know that there are divided it but i do know they have extensive working with some of the businesses that have either struggled to stay open or whatnot or actually had to shut down. Its this type of Grant Funding or maybe do some other message we can employee to employee took these businesses continue. Tribe was so director ww didi. In situations where agassi businesses longtime Small Businesses, face charges of displacement or risk one of the first things we do, supervisor, to your question, we do an individual assessment but the needs are that individual business. But that gives us the ability to understand what exactly their needs are. In some cases, this liquidity need mages need cash. In other instances theres a citizens around real estate. Were we strengthening or legal assistant. Or in other cases some folks need is this planning and strengthening of their ability to grow their market. So, based on those individual needs, through the program that this committee has been very supportive of, does structures the right tool to meet the exact needs of that individual business. So, thats one of the things as we look at this proposal and i think very positive proposal. I think theres strong elements in it. I think one of the recommendations, to your question, supervisor, would be to provide some folks ability for us to do those types of individual assessments. So that we can assure its tailored to your exact needs of the business. Thank you. Another question i had about the i believe on page 3, it says that nominations for the registry are limited to 300 businesses for fiscal year. But then, later on, it says theres no limit on the number of nominations made by the mayor were board of supervised. I wonder if that was a typographical error there, meaning that the register we limited to 300 businesses we can still nominate up to as many. If i may, we do not want to eliminate the total number of nominations that could come out of the board of supervisors and the mayor. Because again, we want this to be an an Ongoing Program that does not have a sunset or termination date. The 300 number was to address two issues. One, looking at the capacity of the Small Business commission, which has kindly agreed to manage this program. Our estimate is that 300 would probably be the maximum amount, in terms of number of hearings that would take to go through that process, and so, i think in terms of where the capacities right now that seems to be a reasonable number. The other issue with the number is also we wanted to have some control over the number that are designated each year for purposes of managing the impact on the general fund. 300 is a pretty i think, aggressive number. I think it would be it would take a great deal of work on the part of everyone involved to get anywhere near that number, which is why one to make that as high as possible. But, we also wanted the flexibility so that there is no limitation on number of businesses that each provides ergonomic. The reality is that we each in our respected districts have businesses that could qualify as legacy businesses. But, some neighborhoods perhaps have more than others. Though, that could definitely change because we know there are number of businesses that may not qualify to be a legacy business today, but they could qualify in the very near future. So just to clarify this note limit on the number of nominations but the registry would be limited to 300 businesses per per per fiscal year . Yes ill check with you later, but i think there might be one work that might be striped from that. I think that given this, i mean, i speak into what i said earlier, i think this is one component cant help our Small Business community, im definitely more interested in seeing how it is we can take other approaches that really make our efforts more comprehensive and really address some of the other challenges that our Business Community is facing. So, i know that the office of Small Business or Small Business commission are going to be issuing the rules and regulations following this measure passes about this good so ill be very interested in seeing what those recommendations were those rules and regulations will be the structuring of this program. But, i want to make sure that whatever it is were doing is very impactful for Small Business community here in San Francisco. Thank you. I just want to say since i worked with supervisor compos on this for a while. I love this idea. I think you for putting it for. I think one up close to Chestnut Street in the marina a number of Small Business from allstar donuts that weve lamented last year to other places that define our neighborhoods, i think its a great idea. You look at the potential cost potentially astronomical and i we have some concern about the bound will be talking about that. So they want to do things to set up the fight between the board and Mayors Office to appropriate funds, but i think the idea behind this is awesome. I think well continue talking housing and other things that meeting our character and our neighborhoods and our city for what we believe it is what defines us. I think some of the Small Businesses and legacy businesses for my perspective. You would define our neighborhoods. Which make it so special so i do love it. Again we will see i think down the road whether the kind of book implementation of this and certainly look forward to doing that. And i think mr. Ms. Dickens b work on this. With that, when we open to Public Comment period for people who wish to comment on this item, please come up to speak in a microphone that you will have 2 min. Each. Is there anybody that wishes to comment on this item . It is more than one person, please line up against the far wall id by the so we can get people up as quick