Transcripts For SFGTV Small Business Commission 92616 20161017

This is regular meeting of Small Business Commission Held on october 3, 2016. This meeting is called to order at 535 p. M. The Small Business commission thanks Media Service and sf gov tv. Members of the public take the opportunity to silence phones. Pub luck comment is limit today 3 minute per speaker unless otherwise established. Speaker are requested but not required to state name, completion of the sparking card will insure proper spelling. Deliver speaker cards to the the commission secretary. Additionally there is a sign in sheet at the front table for those that would like to be added to the mailing list. If you can please show our slide. Alright. We begin each and end Small Business Commission Meeting with reminder the office of Small Business is the only place to start your newbeds in San Francisco and best place to get answers about doing business in San Francisco. The saufs of Small Business should be your first stop and have a question what to do next. So, if you need assistance, Small Business matters start here at the office of Small Business. Thank you. Alright. Item 1, call to order and roll call. Stephen adams is absent. Dooley, here. Dwight, here. Ortizcartagena, here. U, riley, here. Toursarkissian, here, zouzounis, here. General Public Comment. Any members of the public who would like to comment on anything not on tonights agenda. Seeing none. A men. Public comment is closed. Itedm number 3. Discussion and action to approve legacy business registry application squz resolution. Discussion and action item. The applications under consideration are the booksmith, dog eared book, green apple books, henrys house of coffee and zeitgeist. The presenter is Richard Kurylo good evening. Richer kurylo Legacy Business Program manager. I have a Powerpoint Presentation today. Today we have 5 legacy business applicant before you. The legislation and Administration Code section 2 a rks 242 d says eligacy business is a business nominate bide a mb of the board of supervisor or the mayor and Small Business after a hearing determines and meets the following critee ur. One, the business operate in San Francisco for 30 or more years with no break in San Francisco operation exceeding 2 years. The business may have operated in more than one location. If the business operated in San Francisco for more than 20 years but less than 30 yearatize may still satisfy the subsection if the Small Business Commission Finds the business criblt today the history or identity of a particular neighborhood or community and it is not included in the trejistry the business would face a significant risk of displacement. Critearium two, the business contributes to the neighborhood history or identity of a particular neighborhood or community. The business is committed to maintaining the physical features or traditions that define the business including craft, culinary or art forms. The Small Business commission makes finds tgz includes the business and registry as a legacy business. Today we have 5 legacy businesses starting with item 3 a, the booksmith. 1644 hate ight hate street in district 5. 3 b, dog eared books, address, 900 valencia street and 489 castro street and thats in district 9. 3 c, green apple books. Address, 506 clumeant street and 1231 9th avenue in district 1 for 506. Henrys house of coffee, 1618 nor ega street in district 4. Zite gite in district 9. Books, beans burgers and beer. That is awesome. Have the applicant operated in San Francisco for 30 or more years with no break exceeding 2 years the determination is 3 a, c, d and e. The determination is no for 3 b, which is dog eared books. Has dog eared books operated in San Francisco more than 20 years but less than 30 years. Contributed to the history or identity to a eneighborhood or commune ity and face significant risk of displacement, the determination is yes. Criteria 2, have the applicant contribute today the neighborhood history orioid of a neighborhood or community. Determine is yes. All 5 applicant were recommend bide the Historic Preservation commission. The app competent committed to maintaining the physical features design including craft, culinary and art form squz the determination is yes. Staff recommendation is that the Small Business include there 5 businesses listed in agenda items 3 a3 a in the legacy business registry as legacy businesses. There are 5 draft resolutions for consideration by the Small Business commission, one for each of the legacy business registry applicants. And ill entertain questions if you have them. It is another great group of businesses and i want to thank each of you for going all the effort to fill out your application squz qualify. This is a fantastic. I see familiar names on the list so delighted to have you join the registry. Commissioners, any questions for richard or comments . Richard can you elaborate on 3 b . Dog eared books. 29 years rather than 30. The legislation allows to be included in the registry if they face a risk of displacement so they are trying to negotiate thait lease which is up in 2018 and having difficulty with that so we are thinking that the listing on the registry will help them negotiate the lease with the landlord. Making a exception then . We allowed exsemgzs in the past. We have done that for one of the applicant in the first round and there are a few more in the pipeline that are also within the same category. Thanks. Youre welcome. Any other comments . Okay. Well, thank you. Well open up for Public Comment. Do we have speaker cards . We have one speaker card. There are other additional cards. Standard that you announce the first speaker is pete [inaudible] good afternoon commissioners. Morning somewhere. First wanted to thank you for your service. Thank you for volunteering your time to support smaum business in San Francisco. Green apple was founded in 1967 with a credit union loan. We opened a second store in the inner sun set so we support 38 employees. We did math and think we have done about 5 million transagzs actions in the last 49 years. If there is history in a few of them i think there is history in all. Connecting people and books 5 million times i hope is impressive. The building is [inaudible] the book squz people chaisked over time but if you shop twnt or 30 or 40 years ago it would have the same feeling. Books are important to every community. They help couples conceive, survivors grieve, kids learn to read, learn new perspectives. [inaudible] recirculates money nin community. [inaudible] pays cax out to customers which they respond in the local community. Unlike our online competitors. Ory books evolved with the times. We expand and contract sections based on what is selling. We have all most 1300 yelp reviews 12 hundred are 4 or 5 star squz say this to show the Community Support for the store. No other book store has that many. We have won a lot of awards including publisher weekly seller. We live here. My partners and i live here and xids glow to Public School squz vaulten tear and referryed the basketball games around the corner and green apple is a source of stability on clument street. Many merchants told us they opened near us because we were there. We also participate in the community and helped found the local First Movement educating business and consumers about the value of shopping locally and active in the murnant association but humanity happens at green apple. Wie had fires, earthquakes and death and also marriage proposals. New stores have grown from ours. At least 3 other green apples started their own store in San Francisco. The only reason we are still here is 4 or 500 people every day decide they rather have locally owned independent book store. We thank you for your consideration and support. Thank you. Anyone else . We have mr. [inaudible] good afternoon. My name is [inaudible] Third Generation coffee roast in f is. The business was founded in 1965 but my fathers uncle andy and my father purchased in it 83. I remember being 12 years old woken up on saturday and dragged to work to help my dad with the business. I hated it and it wasnt something i wanted to do, i wanted to swatch scuby due. 3 years i made the switch from corporate world into the business. We are in the Coffee Business because it is part of my heritage not because it is a Good Business. I love what i do, i get to work with my father. I get to roast coffee and have conversations with the community and my hope is the legacy business continues and respect and honor what you are gibbing giving us and be around for another 50 yoors. And y hope that one of my children willp want to be in my business. Next speaker is kat rosen burger. My name isicate roseenburger. I have a letter from my tax guy supporting our financial liability. That is something i can submit. This is nervewracking. You nervous . You are only on sf gov tv broadcast world wide. Thank you. Yes. Late night. My name isicate roseenburg. We opened in 1992 at 1173 vulens lu. After a new land lady bought the build{moved to 900 valencia at 20th. We had 5 landlords since occupying the space. The new landlord is instead of renewing leases to long established viable tenant giving 45 days eviction notice and raising the rent as much as 5 timeathize current market rate. Dog eared book saz financial viable business. San francisco has been a center of literary innovation and tradition. The [inaudible] our authors write world class fantasy adventer and [inaudible] robert Lewis Stephen [inaudible] ann rice. Those are just the authors within international reputations. Our current poet laureate [inaudible] another. We were once known as the city ofpo poets. Neither authors or book stores or the city of San Francisco operate in a vacuum. We have a benefital relationship. As recently as 10 years goy there were 9 book stores in 9 blocks. Abandoned pant, adobe, [inaudible] forest books, [inaudible] modern time squz valencia books. Now, there are two book shops in two blocks. Dog eared books and borebder land. Boarder land nearly closed shop last year due to minimum wage increase. They subscribed [inaudible] signed up 600 scribers in 4 days. The Community Support is here, our neighbors old and new love and support us. We are a International Tourist destination. Please allow us to be honored as a legacy business and what i call the little city that could beloved San Francisco. Thank you. Next speaker card is kristin evans. Im the owner of the third book store, booksmith. It was a treat to see 3 book stores on the list today before you. I am a relatively new owner of our store, 9 years. The book store was founded over 40 years ago and it was a pleasant surprise to be nominate frd the legacy business designation by our supervisor breed. We were hosting a 4th Anniversary Party in the store this summer and had a huge turn out and she came and said i nominated you for the legacy Business Award and said great what does that mean . Just a little about the booksmith, it was in the application gary frank and debbie [inaudible] met at the uc berkeley book store and they set out to establish what they thought would be a sustainable viable business to raise a family and they opened their first location on haight street in 1976 below the i beam club with the puchck rock scene and they were fortunate to be able to buy a building on haight street in the early to mid80s. Gary invested in library lightjug custom shelves which are there today. My husband and i took over the store in 2007. Gary had advertise d the business for sale starting in 2001 and hadnt been able to find a buyer. It speaks volumes to the change in brick and mortar bookstores acured over that period of time that we have been between the first and second dot com boom. Frchinately he saw and trusted his legacy to my husband and i and we have been proud to continue offering a general selection of books to the local Haight Ashbury neighborhood made up of color people can makes it part of the intrest of going to work every day. Thank you very much. Great. Thank you very much. Zeitgeist is next to speak . You came all the way over. Laura [inaudible] the daughter of the owner of zeitgeist. As you may have seen zeitgeist started in 1977 and founded by man names hauns [inaudible] embodied a lot of what you may recognize. A bit of a grungey dive bar that appealed to a wide group of people. What you may not know is he is home osexual so it was a place a lot of people could go which at the time in San Francisco didnt have a lot of spaiss in the community. When he passed in 1998 my dad took over the bar. There is a mural in the backyard that is there to remember him and we tried very hard to keep that legacy in place. One thing that we are facing a challenge we might have in the coming month is there a Development Across the street which is 5 stories high that will shade our beer garden so wree doing everything we can do to maintain the business and be what is for the last all most 40 years so we really appreciate your considering us for this special legacy business designation and we hope we will be able to sustain that as it comes. Thank you very much. Alright. Are there any members of the public that would like to comment . Seeing none, Public Comment is closed. Any comments . I want to say it is a another great group of people and embody the independent Small Business, something that we all need to hold fiercely on to in this town and delighted to be here to help you in any way can and bravo to all you. Yes, thank you very much. As i said observe, i appreciate you taking the effort to go through all of the application process and to be here tonight as well. Thank you and thank you for your word. Any other comments . Alright. A motion . I move. I second. Okay. All in favor . Aye. Any opposed . Welcome to the legacy business registry, thank you very much. [applause] that motion passes 60, 1 absent. Now get back to work. [laughter]. What is next. Item 4, discussion and axz to made recommendation on board of supervisors file 160960 planning code temporary homeless shelters in certain industrial and mixed use district. Allow temp laer homeless shelters in production and distribution and repair the west soma mixed use office and Service Arts Light Industrial Zoning Districts subject to conditional use authorization affirming the planning commissions determination under the California Environmental quality act making findings of public convenience necessity and welfare priority code section 101. 1. Discussion and possible action and our presenter is sam dodge, deply director department of homelessness and supportive housing. Good evening. Emily cohen and here hi, emily. How are you guys . I assume you presenting the next as well. I wont call you sam dodge again. Okay. Im not sure how to make this sf gov tv will turn it on. Thank you very much for having us. Like i said, emily cohen with department of homelessness and supportive housejug here with paul from department of public works and we cani have a short presentation prepared about the navigation sent squr the legislation that correspond and paul and i can answer any questions you might have. Um, so, San Francisco faces sorry for the interruption. So is injust want to make sureyou will talk about theis that file number 160961 that is the presentation is targeted to . Both. Mr. President should we call both items together . Yeah, can you call both together. I need to read into report. Discussion and action to make remation on board of supervisors file 160961 summary street vacation 25th street temporary Navigation Center for homeless rez dent. Ordinance ordering the summary street vacation of portion of 25th street bounded pie assesser parcel block 4241, lot number 002, to seawall lot 355,. Lot number 001 and assessers parcel block, number 4300 lot number oo 1 to the south. Michigan street to the west and 356 seawall lot assesser parcel block number 1399 lot ooo to the east. To facilitate construction of a taemperary Navigation Center for homeless resident authorizing on 24th street pursuant to Administration Code section 106. 3 b. Afirming the Planning Departments determination under California Environmental call act. Consistent with general plan and the 8 priority policies of planning code section 1071. 1 and authorizing official acts and connection with this ordinance. Discussion and possibly action item. Thank you. As im sure you all know San Francisco face as straight homelessness crisis. We have about 6700 people homeless in San Francisco on any given night so thats a single night Homeless Census and estimate it is between 14 and 15 thousand a year who experience homelessness. We also estimate there are about 3500 people unshementered in unsheltered in San Francisco living on our streets. The Navigation Centers are a innovative approach to sheltering people coming off the street and proven to be successful in San Francisco. We open the first Navigation Center in march 20 15 and the sect in june of 2016 and both have proven to be assets moving people off the street and into permanent housing. They are a interim place for folks to stay and with intensive Case Management connect them to permanent solution. We have one navigation in the Mission District at 1950 mission squl the other at 12 and market. We are charged by the board of supervisors to open 6 sites in the next 2 years so the Central Waterfront location is the third possible Navigation Center site. Just to go back to the successors because this is a big deal. The Navigation Centers are doing well. Just in Navigation Center 1 alone we brought in 700 people off the streets since it opened last march and 80 percent existed to more stable housing so we are doing well in terms of reaching folks who havent previously utilized shelter and on the veets as well as making Long Term Solutions to their homeless ness. Navigation centers are [inaudible] in a number of important ways it is important to understand. The target population is folks who dont traditionally use shelter jz on the e street more so we have done changing to atracktd them in. We are targeting in encampments and long experience of homelessness. We like to say we operate with hospitalality in terms of really welcoming people in and those who havent felt welcomeed before and allow pets, partsners and positionerize 3 of the things we have found are barriers to traditionally accessing shelter so removed the barriers. We have on Site Services provided fwhie Service Manager as well as colocating other services on site. This is where people go to Central Office to get enrolled in public benefits, we bring the services on site. The sites are much smaller than a traditional shelter thmpt site for the Navigation Center at the water front is 70 beds. It has 24 7 staffing and staffing ratios and has a Great Village design public works created for us. We have gone through a fairly Expensive Community Engagement Process leading to this point beginning in april we began dialogue with the dag patch and outreach to Small Business, door to door and mailings to the community. Mark is a big part of that effort and appreciate his leadership on this. The site that we selected for the Navigation Center is not the original site but based on Community Input and conversation with the neighbors business we opted to move one block over to a site that was more aligned with everyone in the neighborhood wanted from the nerks door neighbor business and community members. And then in terms of support we had tremendous support from the board of supervisors the Port Commission and dogpatch neighborhood association. The specific pieces of legislation that you all invited us here to des cuss is a pair of legislative proposal that allow the navigation sent toor go through. The first is temporary street vacation for the end of 25th street east of michigan and that would allow us to use that space temporarily to host the Navigation Center and the second is planning Code Amendment that allow temporary shelters in [inaudible] and wmou Zoning Districts so conditional use authorization required. This is the timeline, i wongo into. The process began last spring with community out reach and conversation and hope to center open in early 2017. I have a few images here of what the Navigation Center will look like. So you can see it is a interiorthe entire Navigation Center is built with monural unit on a platform above the street so dont have to turn into the street to deliver utilities. It is delivered under the platform. So, all these modular unit are built on top of the platform and all be ada compliant and folks will be able to utilize and have bunks, officer for service, showjure laundry facilities and paul can go into more detail if you have more question about the physical site. Thats a overhead shot of what the campus will look like. J thank you. The only thing i would add is we have been developing this with the temporary street vacation and it is a innovative use of that resource. It is a deadened street and it de doesnt have through access to the site behind it so our impact especially use thg modular unit are minimal on the site and designed this in such a way that is very easy to put and remove and leave things as they were for future use so it is a temporary intervention but it makes the lives of these peachal a lot better. Commissioners. Thank you for the presentation. I have a question about the 42 months and so talking about temporary, why 42 months . What is the magical so it was something3 years was what was arrived in various discussion with the communetry especially the dogpatch neighborhood association. The fact it is temporary is driv bine the board of supervisors ordinance creating the Navigation Centers. They must be temporary. That is what the it has to be less than 3 years or around 3 years . The temporarydefinition of temporary . The Building Code has a definition of temporary tha that isnt what this is. The 3 years was arrived at in discussion with the Neighborhood Group in specific on this site. Other sites they may be 2 and others more, case by case basis. 42 months low as 3 months of set up and 3 months of removal. We cant do work with human occupancy on the street without it being vacaitded so need the vacation period to allow us to construct and remove. You would budget 6 months frl installation and removal and and between housing that is 3 years. That is a achievement to finish construction in 3 months. One key is all the modular unit are fabicated off site so delivered in tact essentially. The work we do is construct the deck, put the fire sprinklers and hang the utilities that connect them so we have been working extensively to try to minimize the time frame of construction to get in and out of there as quickly as possible. It talks about 42 months from the Effective Date of the ordinance, what is the Effective Date . That is once it suproved by the board of supervisors kwr signed by the mayor. We dont have time to burn to immediately start your construction. Thank you. Good luck. Thank you. Anyone else . Okay. I have been involved in the discussions about this for quite some time as both a resident and Business Owner in dogpatch and can vouch for the support of the neighborhood. I have been somewhat lengthy negotiation process but everyone i think has come to terms with it and think we are excited to be part of the solution hopefully to helping work the edges of the problem we have in San Francisco. Well open up for Public Comment. I want to thank you for having us and thank you very much for your support. Thank you. So, any members of the public that like to comment on this item . Yes, please. Kristin evans from booksmith. I have been working closely as part of the member of the Haight Ashbury Merchant Association for Haight Ashbury and has been a up hill battle so kudos for accomplishing it. I can say i live in work in Haight Ashbury and know one of the Biggest Challenges we have is people that are basically have no place to go. Through Solutions Like the Navigation Center and creative Solutions Like to the streets which basically gives young People Housing in exchange for street cleaning service, i think these are the answers to us addressing the perpetual long term challenge of homelessness. Again, congratulations to dogpatch for accomplish this and do hope your support this navigation model. It is so important because it does reduce all the bay area for getting long term homeless folks of the streets. The 3 ps, pets, partners and [inaudible] thank you very much for supporting this. Any other members of the public that like to comment . Seeing none, Public Comment is clouzed. We vaopportunity to support or not both of these of that particular street and the authorizing of Navigation Centers in pdr zones. Motions . Move to approve. We need to take each item separately. The first item is the allowing temporary homeless shelters in pdr zoned areas. I move to support. First motion. Second. Should i do role call. All in favor . Aye. Any opposed . Okay, the ayes have it 60, 1 absent in favor. The second item is vacate 25th street to make way for this particular Navigation Center. I move to support vacation. Alright. Temporary Navigation Center for homeless. Vecd . I second. Okay, all in favor . Aye. Opposed . That motion passes 61, 1 absent. Thank you very much for coming out tonight. Appreciate it and good luck with the rest of your journey. Alright. Okay. Moving on to item number 6. Presentation and discussion regarding new office of Small Business departmental logo. Discussion item and presenter is imgen speer. Before you start commissioners this 15 long journey to finally get a logo for the office of Small Business, so pleased and want to thank commissioner dwight for his input and stewardship and so i think we have avery pleased with the product we have today and so anxious to turn it over to imgen to talk about the process and how we came to the design and logo. Thank you for the introduction. Good eve chck, my name is imgon spear and contracted through lowercase production to help creation of the new logo. I also brought a powerpoint when chi tyke to take you through the Identity Development process that we did. Everybody recognizes this. This is the logo for the San Francisco business portal which is one of the departments that works along the side of the Small Business office and this is a great logo. It is fresh and modern and these were some of the things the Small Business office was looking for as they rebranded. They wanted it tobe clean, fresh modmodern and wanted to have governmental gravtaus. They need today integrate with the peer squz be a clun new clean new look. Without further ado let me introduce you to our new logo, which is a little on the screen. So, how to integratethank you. How toant great a unique identity with the other departments. The office of Small Business works in collaboration with business portal we thought it is a good idea to draw influence from their design. In order to do this, we kept within a blue pallet and also wanted to keep the intentional overall arch to the logos shape. We have the inclusion of the city hall icon which of course is integrated to both departments and similar shape treatments in the buildings as well as similar type treatment and layout. There is also the additional of windows which makeatize more approachable and also [inaudible] so, i wanted to figure a way to design a image for the San Francisco Business Office that had a unique id related to them. So, seems we are important to the representative thofz department as you heard earlier that is would be a starting place. It is first step toward running your own Small Business and it gave the impression of beginnings. We also cht it to have a strong sense of independents that the Small Business was one that could sur vive in the big city surrounded by the city as it were and make ing it on its own. We show this with the unique size and the lights are always on which draws your eye immediately to the business first. It also gives the sense people are always working hard there and it is a welcoming place. So, while it has its own indupendence we didnt want it to feel isolated and integrated with the community. Weshowed this by having itstill connect today the other businesses on the block physically and not just leebing it on its own but integrating the other city horizons with it so it felt like it was still a part the city and not just on its own. Additionally i wanted to give sense of the Small Business office in the role of support. City hall is always available to the Small Business as a resource so here it is in the logo in the background. While still allowing for the indupendence of the Small Business to thrive. Also wanted to give a sense of possibility that while it was contained within the frame the community there is the sense of exspanseiveness and the exspanseiveness is representative of the potential. So, you can see that we have other treatments. There is a gray skill perched out in black and white and you can use this on youras your letterhead or of course as your business cards. So thank you. Thats the end of my talk. Thank you fl opportunity to work with you and appreciate it. Thank you very much. Fun project. Any comments, commissioners . I fiend the logo beautiful. Thank you so much. I have a question, technical question. It is beautiful. Just want to know why you picked blue . I thinki know maybe why but i want you to tell us why you picked blue . Blue a calming and reasuring color. It is color of authority and already in the pallet of the other departments we work would and wanted to make sure it was all able to still be integrated and have the same voice. I think that is a good choice. The other thing is you have 3 shades of blue that i find beautiful. It is dark and then is that the horizon, is that the background . You focus on the business exactly. We wanted the business to be the first that your eye is drawn to and the strongest in the foreground and proceeds to the horizon. Great job. Thank you. Thank you so much, i appreciate it. I like it a lot. I have seen other designs before but i like this one much better because it really represents San Francisco. Not only you have city hall but big business and smaller business. The one in the middle i assume that is chinatown. [laughter]. Thank you. When will we get our hats . The one and only embroidered hat at this time proud to say. Put it on ebay tonight. There are [inaudible] in the packet as well. I also have a embroidering machine, so just one more comment about the lighting, i thought that was a ingeneerous yid to keep it lit on the time. I thought that was a [inaudible] an idea that came from him. Tells you that the windows are supposed to be white and not a drop out because the first hat the windows were black and said that is so great. Thank you very much. I appreciate it. Thank you very much. Any members the public that like to comment on our new logo . Seeing none, Public Comment is closed. Commissioners any further comments . Alright. I forgot to thank imogene and daniel from lowercase productions for their work and it fs a pleasure and so im very excited and very pleased and that we have our logo that we can work with now. Lets a motion to officially approve the logo. Moved. Vecd. Second. All in favor. We cant because it isnt ajndized. Rules rules rules. Cool. Lets move to the next item then. Okay. Item number 7, final review of legacy business registry and Business Assistance Grant Program documents. Discussion and possible action. Presenter is regina dickendrizzi. Xhipgzers we will take some time to walk throughfirst start off with the registry, so, as i noted at last weeks meeting for proposition j, we have to submit the rules and orders up for the registry to the board of sfr visor squz have not done that even though we are operating under the rules and regulations and conducting the business so just again sort of reaffirming what we have and that is first is the instructions for the nominators, so zee the instructions for the nominators in terms of what they are required to do and providing a letter of nomination to the office of Small Business. They are also charged with insureing that who they nominate fall within the criteria established by proposition j and that there are no more than 300 nominations made within a calendar year. There is no for prop osition j no allocation for supervisor or mayor so first come on a first come first amtered so to speak. And just to300 nominations within a year and then the Legacy Business Program manager will contact the nominated legacy business, make sure that they are informed of the legacy business application and what the process entails and what is required of the application. So, and then for the process for the nominees we outlined the process for the nominees. Again, sort of afirming what the criteria is to be a legacy business and then making sure that they ruwear that to be designated they have to be nominate bide the mayor or board of supervisors. Upon being nominated they need to then submit their application and thir application and cover sheet. The nominees also to submit a non refundable application fee. Once the application is deemed complete by our legacy business Business Program manager, then the application is forwarded for to the Historical Preservation commission for input. The Historical Preservation commission has 30 days to review and respond and then thatthe application theoretically they get a copy and we keep a copy, come back to us withory input and their recommendation to you as the commission as to whether they are recommending whether it is advisory recommendation as to whether place that business on the registry. Then after the hearing at the Historical Preservation commission then we have a notice meeting. At the Small Business commission and where nominees, the applications are presented and you hear testimony from the Program Manager and the businesses and any members of the public as to whether to place them on the registry or not. And then from there the Commission Takes action. Once the Commission Approves the legacy business, then the legacy business is placed on the registry. So, and then lastly i want to review for the registry portion we have the application, so again the front sheet talks about what is required to be a legacy business and the filing fee that we identified there are 5 sections of the application that need to be completed and we are to snd the application. And who to contact in the avebt of question. Section one provides the critical information, who is making the nomination, name of the owner of the business, kraes address of the business, business registration, if they are register would the state, what their state secretary ebtty entity number is, and section 2 lists the different locations of the legacy business may have been located in and the dates that they operated out of that location. Section 3 is a disclosure statement where the business is affirming that they are curpt with all their obligations to the city and that they have no outstanding issuewise the office of labor standards and enforcement. And that they understand the information that they are submitting is subject to the public record. And that there iswe do have a clause in there we do have the ability to be able to revoke a business from the registry. Section 4 consists of the historical narrative and this is where for many of those businesses that were not nominated in the first round are still working on their historical narrative so the historical narrative needs to reflect and address the three points as part of the criteria established. And then we alsowe have some guiding questions to help them address those 3 areas. We also recommend and then section 5 is providing historical documents. So, could be business registration, it could bewe had one business that you saw where the business provided the contract of which they purchased the business from the previous owner. We have a section for photographs there are certain photographs required the Historical Preservation commission recommend being part the packet. Also may show the historical narrative or suggestive. Then zee instructions for submission is the last item for the registry. So, i think with that ill ask any questions if there are any questions . Commissioners. Blessed by the City Attorney, right . Well, this is great. This is a culmination of a lot of effort on your part so much appreciated and now if any other city wants to have a legacy business thing they can look to us. Next we are going move into the legacy business Historic Preservation fund rules and regulations. We do have some changes before you for you to be able to act on affirming in item 8 is a resolution which you afirmed the rules and regs for us to officially move them forward to the board of supervisors. I need to walk you through the rules and regs so if you could help with the handout. Is this relate today item 8 . This is related to item 8 but done under item 7. Per our City Attorneys direction i need to walk you through what the red line copy which is actually a blue line copy for your copy. Im first going to do you recommend doingokay. Our City Attorney has advised to call 7 and 8 together. Item 8, discussion and action to adopt resolution regarding final rules and regulation for the legacy business registry and Business Assistance Grant Program. Discussion and action item. Considering item 7 and 8 together. Number 8 is the resolution. So, for the rules and regulations the edits are relatively simple but there is a item of consideration so that i will give that to you at the end of going through the rules and regulations. Just to talk through what we arethe changes that are taking, so for the members of the public and for you in your binder, if you want to take a look at what the publicly noticed rule jz reg jlgz what we propose for changes. We are striking the second paragraph under item number 1 scope. This is a little bit redundant. Okay. Then, under item number 5 certification of full time employees in the first sentence we are striking the word employee hours after it says applicant must verify the number of full time equivalent employees employed in San Francisco, employee hours as of the immediately proceeding june 30th sowe are striking employee hours. Under item number 6, we corrected the wordinstead of saying questions, questionary and then we rephrased that paragraph to read the office of Small Business shall prepare businesses assessment questionnaires for each applicant to complete as part of the Grant Application. Solicit information related to financial status of the business and whether the business is receiving other grants, nonprofit mitigation fund, sf shines or sf biz fit. Keep individual questionnaires response confuadditional but may use responses to identify programs that may help businesses and in the regular reporting to the business and board of supervisors. We are striking item 7 which talks fwht business stabilization grant because that got combined into item number 6 and then for item number 8, which is now going to be item 7 we strike in the first sentence to approve applications to qualify legacy businesses. Then on the third page under item which is now be 7 the second paragraph, when total grants are in a fiscal year collected by all qualified legacy business and then abbreviated office of Small Business, under itemsthis is9 should be 8 so can you correct that . We received a grant payment is number 8. And reapplication requirement is 9. Um, and then we modified that paragraph so it says, to be paid grantees must be b come a city vendor and Legacy Business Program manager shall assist with requirements for becoming city vepders. Applicants who cannot or refuse to become vittae vendors are paid through a third party y vendor and strike there may be a administrative fee. So, those are the changes. So, commissioners, there was discussion at the last meeting about the commission being the entity to a approve the grants and so since the last meeting manu identified for me proposition j does not require that the commission approve the grants through your rules and regulations, you can del ghait that responsibility to staff to do to the department to do. If you do want to have if you want to be the business that does the final approval we need to add into the rules and regs awe need to move intoadd into rules and regs a paragraph that stipulates that. So i just want to be mindful of the fact that probably the first time around we may have for this year we may have 30 to 40 Grant Applications but the next year we could have 340. We could have 150, so it may accumulate so you maith want to give consideration as to the time and what is allotted. Of course we will definitely report to you what the findings are and what the grants are. I would recommend that we not make that a requirement because it wasnt in the original legislation. I recommend the first cohort of the grants comes to the commission before staff approves them just for a review so we can understand what staff is planning to approve. Anybody have an objection . It is not mandatory for the approval, but i think just as a matter of practice for the first round so we can make sure that there are not any other considerations that as a group we mightjust as we would hear or review any potential legislation. Mr. President and fellow colleagues, this is just a question, would it be wise because this is fiduciary responsibility that we just randomly select maybe one in some kind of format just to see the process once in a while . Yeah, i think on a periodic basis we should check in on the process. I thinkstarting out we are all going into this with flow prior experience, so interesting to see what happens and from there on we can maneuver however we think is appropriate in termoffs what the review process should be but dont think we should go for awe should implement a rule about approval here at this session. Do we havedo you have a anticipated time wise over the next several years how this will effect the office of Small Business time wise . Your adminivating so, for the first rules and regs to be drafted and submit today the board of supervisors in terms of not surei think in terms of doing some estimates, we will know what through this first round of applications we get, how many of the businesses that are nominatedon the registry actually submit a application and what they submit for. And then as after the application period new businesses coming to the registry we can start having early engagement to find out if their intection is to file for a application during the application period to understand and be able to project what that demand will be. So, i think part of our Due Diligence to you is continue to keep you aprized as to the demand of the work and the volume of the work. Well, i think the number of applicants will relate somewhat to the success of applicant or not. If there isif we do get people through the application process we give hope to others and provide a guidance as to how it is actually done. I think it is a wait and see at this point. I think this document is fine as it is. As it is modified. Commissioner ortizcartagena, did you have a question . Sorry. Just raise your hann. My thing isnt working. So, City Attorney leewith the commission not making a specific requirement but just as a informal presentationnot informal but not a formalized means of creating as a staneredized not an approval process chblt we merely want review for purpose of understanding the process. Thank you very much. Good evening commissioners. Matthew lee City Attorneys. I understand why that make sense as a practical thing for you guys, what i would suggest is because as i think you know there is nothing in the ordinance that would make that kind of report preqec for approval. To aprovide having a special regulation there is just for the information gathering and something to make your lives easier and less cumbersome. Rather to produce a new regulation for something that is really meant to make the process work more smoothly for everything wn could we structure it as just a a report from the office of Small Business at a mormal meeting andthat sound fine. I would counter it on your regular agenda as a report from the office of Small Business mptd that is my request. If anyone else has comments. Graitd, so we dont need to add anything in specific for the rules of order. Alright. Great. Now, moving on to the application. This is item actually has had some substantive changes, mostly in the ordering. So, what you have is in your binder you have what is posted, so for the public and on ourpublic notice. Then at the top document is the red line copy and then a attached after that is a clean copy of the red line copy, so how it looks now. Rather than go through in tedious detailyes could we be aprized of major changes to thinsh things mpts we condensed on page i think 3 we are h a list of eligibility having the applicant say im current on all my applications but at the end of the application we ask them to verify that, so we condensed that and it is at the end orphthe application where they verify. Then we have pulled out the listing of additional grants, stabilization grants and Business Assessment question squz the information on becoming a city vendor as a addendum since those items are not specific to the grant and specific to receiving the grant. Alright. They merely effect how the grant is administered . No. We just did a little of language clean up as well. So and we took out the section on official use. Figured businesses applying do not need 92 see that page and doesnt need to be part of their application document. That is just for our internal use to make sure the application is complete. So let me make one other clarification. In the addendum we did put the business stabilization grants where we want listings of that is required and a reasoning but the section 2 where the Business Assessment section is optional and we made it very clear that this section isthe osb treats the following information as confidential and exempt from disclosure under the public records act and sunshine ordinance. That is a important thing to provide businesses who provide information to insure that it is not subject to public disclosure. Those are the key changes. Okay. Commissioners, any comments or question about this document . Thank you i was dreading today, but that was very condensed and clear and from a Small Business owner perspective this looks a lot more cleaner and more manageable. Thank you. Alright. Well, so the contemplated action tonight is approve these, is it . To adopt the resolution under item 8, but since we called the two items together i guess we will correct me City Attorney, be able to ask for Public Comment on item number 7 so proposed rules in order and the resolution as well. So, to adopt the rules and regulations in the application forms is through adoption of the resolution. First Public Comment. Do we have members that like to comment on item 7 or 8 . Seeing none, Public Comment is closed. So, please advice the first action required. The the action requires is adopt the resolution approve thg rules and regulations for administrative code section 2 a. 242 legies business registry section 2 a [inaudible] Historical Preservation fund grant to legacy business. Do we have a motion . So moved. Second. Should we do roll call or all in favor . All in favor . Any opposed . That passes 60. The rules are adopted. Fantastic. There is a milestone. Nice work. Thank you. They think commissioners for your time and assistance with helping get through all this. So, now we will move on to item number 9. This isim going rereview based upon last weeks meeting what is proposed for the rent stabilization grants. Actually, City Attorney matthewnot sure you got a copy of that. Should i read into had record first . Item 9 discussion and possibly action on proposed rules and regulations per taining to Legacy Business Program, rent stabilization account program. Discussion and possible action. Okay. We have been through this in tedious detail already. So, just toi provided a list and now just for the ease of for you being able to read it there are application rirems one that is stipumented in propersition j. We are still working on the definition of the landlord and legacy business, related. That definition. And then lease requirements and think this is i would like togo through the items on this one. Leases are signed by the landlord intenant brf applying for the grants. The lease identifies the Square Footage of the business. Leases with the option for renewal to meetleases for option for renewal for 10 years and must verify it the tenet that initiates the option to renew. There is the lease contingencies so that if a landlord must show whether the lease does or does not contain a contingency clause that stipulates whether the lease is contivant on the landlord receiving a grant from the sate city they can have that clause but they need tofor it to be approved they need to demonstrate if it is in our out of the lease if they include it or not include it. If they do include it the lease does have another contingency claus that the lease must contain an additional provision that the clause not apply if the landlord isnt awarded the grant due to non paid financial or league obligationwise the city. The landlord fail tooz reapply or takes intentional action to disqualify the application. Did that capture those 3 things . Okay. That the landlord that does have a break in application will be considered the same as a new application for funding purposes as long as there has not been changes to the lease originally presented at the first application. Additional requirements for emergency grants, just to make sure we are very clear for businesses that risk immediate displacement and insufficient funds in the rent stabilization account and displaced grantdisplacement grount under the section, would prevent the business from being displaced. Staff will bring to the Small Business commission for you to make determinations whether that legacy business does face immediate displacement and upon the sbc determination and the sbc find a grant will prevent displacement the sbc may request a supplemental appropriation from the board of supervisors. Im not stipulating in there and mandating and it says may in the proposition j, is that correct . Lee . So, and well verify that but i do not mandate you is to ask for the supplemental because it is not mandated in the proposition. Um, and that upon the supplemental appropriation the osb will first pay the grant to had legacy business and that if the boardif the commission directs in the supplemental for theto ask for additional appropriation more than what is needed by the legacy business then any additional funds will go to fund the next round of new applications. And there is gran renewals. Landlord must reapply annually with a 30 day grace period. Certifying no changes in the lease and it is current on all financial and league obligationwise the city. Tonight we cant take specific action, but because we did have some discussion at last weeks meeting around whether with the rent credit whether it is hundred wn percent or to use as sort of a incentive to keep the renewal amount to reduce thekeep the renewal amount low, tont, i like to get a little bit of direction from you. I asked rick to put together a presentation just a little of review around a chart so that because at the october 24th meeting what i would like to do is have pretty much the rule jz regs finalized if youwe dont get a consensus tonight then what i will need to do is present a option a and option b or option ab and c dependent on your direction on how to how lan lords can use the grant funds. Alright . So, with that rick can you just what is the purpose of this . So the purpose was to help incent vise in the lease renewals to keeping the percentages low as opposed to still going for market rate or a little more of market rate and still utilize it. But have the grant go to do atax credit the idea is if a landlord goes for a High Percentage increase they will forefit some of the benefit as a threshold level which appears to be 4 percent. The idea is that the amount of the grant goes for rent credit. The higher the increase the lower the increase, then the Property Owner is able to retain the money and as it retain the grant because they kept the renewal low, which is one of the things that we hear from businesses is that it is about the cost of the rent increase and so we dont know if wewe dont know if we will always continually fund the rent stabilization grant, so would it be a good option to incentvise a lease renewal at a lower percentage for more of a stability for the legacy business. It is just a question and thought and so im having rick provide a presentation to think through this a little more and give finalized direction. We have talk today a few people and think it is a okay idea but we need the direction from the commission as to whether to flush this out more for a presentation for you to decide upon on october 24th. Good evening president dwight, commissioners. Richard [inaudible] Legacy Business Program manager. I have a brief Powerpoint Presentation for you today. Today we are discussing the use orphgrant funds for the rent stabilization grants. The Administration Code doesnt specify grant funds by landlords. It says the office of Small Business award a annual grant to a landlord that enters into agreement with legacy business that leases Real Property for legacy business for term of at least 10 years or extend the existing lease to at least 10 years. Fm there were no restriction on the use of grants funds the positive is it create as strong draw tr land lords to apply for grants and result in 10 years for legacy business. Negatives of not having restriction on the use of grant afunds is it does not discourage rent increase that are exsenseive or unfair squu wards public funds to landlord if they increaseerant by unfair amounts. Gran funds for rent reduction is proposal that the Small Business commission is considering. That is 100 percent the grant is subtracted from the annual amount of rent oweed. Positives for that is it lows the rent burden for the legacy business but there are negatives that i want to bring to your attention. Eliminates or decreases the draw there fr landlords to apply for grants and will rument in fewer 10 year lease frz legacy business that do not support the intent the legislation and may encourage landlords to raise rents to benefit from Legacy Business Program revenue which the legacy business are benefiting from. I have spoken to about 3 different legacy businesses and one landlord and they are excited about the rent stabilization grant and i am concerned that the negatives may factor into the proposal. You are referring to the grant being deducted from the rent as opposed to being paid to the landlord. Exactly. There are positives and negatives with both. So, having a rent reduction tied to rent increase is something that the office of Small Business staff is proposing as a idea. Based on the percentage orpherant increase between the previous lease and new lease of required percent the rent stabilization grant must be provided in the form of a rent credit. The methodology is that it is percentage of rent increase is 5 percent or greater. Provision in the new lease would stipulate the legacy business receive a portion the rent stabilization grant in a rent credit as indicated on the table. Here it shows rent increase on the left column for example, if the rent were to increase by 10 percent recollect 75 percent of the rent stabilization grant goes to the landlord and 25 percent would go for rent reduction. If was a 30 percent rent increase then 25 percent would go to the landlord and 75 percent to the rent reduction and so on. When you say to the rent reduction it is rent credit. It goes to the legacy business as a rent credit. That is the rent. How would wefirst what would be in the hybrid it seems heavily administrative and how would you follow up with the tenant who spends the mun atowards jebt not pay roll . We inform the legacy business about the amount and percent so it is part of that who discussion to follow up with the legacy business to make sure. So, when it started being given back and the hybrid to the legacy business who would be responsible for just gibbing giving the credit. The landlord has to sign something saying i returned 25 percent as a rent credit . How would that work . Um, i thinkwellsimilar to if we were not considering this proposal and it was just i think prior to just the assumption that what the landlord gets in the grant amounts would offset the rent as 100 percent rent in credit. If the rules and regs are passed and this is in the rules kwr regs passed this is publicly noticed and part of the criteria and just as the 100 percent type of rent credit consideration would need to be part of ahead of time between the Property Owner and the business. Again, you know this who administers this in your department . Who takes the time do all this . It is part of the application process. Part the application process would be that they would need towhich is not in the first part of the rules and regs because we need to make a determination if we go in this direction but it would be in the rules and regs that they need to stipulate theif they go for a lease renewal or extension they need to stipulate the percentage of the rent increase and that would also need to see the old lease and new lease. I do not understand this concept of aerant credit. If im a landlord and want x dollars and want x amount of money in rent and we arethe original concept here is that im the landlord z want x dollars in rent and the tenant and cant afford to pay that much, im going to set a fund and the government will bridge the gap. Landlord wants the money, tenant doesnt have it, landlord still wants the money and government says well pip in and landlord you will get your money and the city will takeput on the shoulder of the taxpayer s to help some qualifying tenants. The idea of a rent credit to me sound like funny money. Nobody gets anything. The lan lord is a nice guy getting a credit no money go tooz the business or lamd lord. We can build a scheme on rent cred. I understand t it is dependent on the threshold of the intrees. This in theory would encourage landlords not to increase the percent object thferant that much up to 4 percent because then i landlord keep 100 percent of funds, but as i increase the threshold more i get less of the fund and somehow we actually give the money the difference if you get 75 percent the tenant we give you the difference to offset the increase. Is that true . How it would bethat is where im gettingthere other money changing hands; so your chart is if i increase on your landlord and increase by 10 percent i only get 75 percent of the potential grant money. The other 25 percent goes directly it the tenant through our administration. I would not say we decide at this point where wl it is through us or through the lease. It says i increase the rent by 10 percent, therefore, contingent on me being fully funded through the rent stabilization account your rent is less 25 percent a month. For me this is very confusing. It is heavily Administrative Burden sum and question for the City Attorney, lee, my econcern with this is does this somehow constitute or employ in some way in hindsite we get sued because a tenant says you guys said you signed off on this and the business goes belly up and the tenant blames us for you approved that lease somehow and we held libel . We are getting too deep into leases and i dont like that. I understand president dwight says landlord you want this, here. Go away. That seems easier because it is yes or no, but thisi dont know. It feels on the surface volved on our part with a lease. Would it mean the grant would be literally dwighted like two checks, is that what we are saying . That is how i understand. That isnt what i hear the drether say though. Can you answer my question first . Just make sure im clear. The concern is that the city would be opening up to liability by approving lease between landlord and tenant. Im not aware of anything in the scream that would amount to the commission of office of Small Business approving the substance of the lease in terms of it being a Good Business idea. But dauz it employ that . If we issue the grant it is implied we signed off on the lease and held accountable. We are not signing a lease. It is a term, i know we are not signing anything but just saying is there a possibility . Im not aware of anything that sound like it expresses a view on the business merits of the lease. It sounds from what is described and what i read here that we would bewe are requiring the existence of a lease. I dont see anything in here at first glance that looks likelooks like us spressing a opinion on whether a lease is a good deal or not. So we require in some capacity like a 10 year so what i inback and say i failed because i on needed a 3 year lease but need thd grant to keep me alife and the economy is down and can move into the awesome building down the street but you made nee sign a five and 10 or 5 and 5. You made me commit to 10 because i need thd munhy money for the rent. Speaking off the top of my head just to respond to that concern, this could be idea incorp raitded init rules and regulations and may be worth emphasizeing this is a volunteer program. No one is forcing any business to be a legacy business and no one is forcing leg as businesses to apply for this form of assistance so could be worth making that explicit so that is something to keep in mind during the drafting process. So, with this table i think what we arewhat may not have been stipulated is this is all understood and somehow reflected in the lease. Lit lets take this off the table and maybe we havent had a thorough discussion but the assumption with proposition j is that the landlordthe lease is sign squd agreed to, the landlord then applies, gets the money and the assumption of that money is to help office off hp set the rent payment so it makes st. More affordable for the legacy business. This doesnt change that, it just sort of makeatize a little more detailed in the sense that the business will know when they negotiate a lease with the Property Owner whether it will be a 5 percent, 10 percent, 12 percent and so if this is codifyed in the least it can be codifyed in terms of what the rent stabilization grant will mean in terms of how much of the funds go to offset the rent. I think we are over complicated this. The ability for a tenant to stay in a location is exclusively dependent upon their ability to pay the rent that the landlord wants. That may or may not be market rate. The landlord can be a benevolent landlord and say i value the long evty of our relationship and think i have a stabile tenant so dont want to go into a period where im unsure of leasing the business or i have a tenant and dont know if they will be a great tenant sothey will strike is a deal and this fund is for closing gaps that may exist between what the landlord wants and the tenant can pay. Or feels they can pay. We are in no position to tell a lond lord how to spend the rent. The mechanism of giving the rent credit to the landlord assures it is spent on rent and rather than giving to a tenant and say i just got the money. The fact is thenant has to pay the rent and other bills so it goes into the money pot but this assures we have done a deal with the landlord. Right . It goes specifically to rent. But the business still has to make a determination whether it can meet its expense base even with this grant. They have to do their own calulous. I think any ofgetting more involved merely makeatize more complex and frankly is a disincentive. The simpler the better because it is already too complicated and require application and annual application and most landlords wont go for that so we have to make this as absolutely simple as possible to assure that it has some hope of being effective. I would advocate we not go down a path of creating tables like this because that is just a big red flag. I agree. If i go to a landlord and say, here. They will be likeill get somebody else. I think that the idea of this is to incent the landlord to go for 10 year lease. So we stabilize the legacy business, but if we make it go through the chart the maex maximum they get is 5 thousand square foot is 22, 500 if you divide that into 12 months we talk about a couple thousand a month and we talk about percentage and as the landlord they may want toyou dont know what 2 percent equivalent to so you dont know how much the rent is and how much 5 percent is to. It could actually be more than 22, 500 they are getting so think implementing the chart will discourage the landlords extending the lease for 10 years. Can i finish the presentation for the record . Okay. So, we do have real numbers here based on the 5 thousand square feet. So, we have sample with real numbers based on 5 thousand square feet and as you mentioned the maximum grants amount is 22, 500. You see with the 10 percent rent increase example, the landlord would get 75 percent which is 16, 875 and the legacy business rent reduction would be 25 percent which is 5625 and you can take a look at the numbers to see how they work in the real world. In the real world at least for most Small Businesses we think about dollars per month in rent and we break it down into dollars per square foot. When i talk to a associate and we say what is your rent . I say, it is 4. We all know what im talking about. 4 per square foot per month. So, the basic math here is that this amounts to a maximum of 37 and a half cents per month per square foot because that is 4. 50 divided by 12. 37 and a half cents may or may not be a meaningful amount orphmoney in a rent negotiation. Letssorry. Some of the positives with this is it creates the strong drop of landlordss to apply for grants which is very important and results in 10 year lease for legacy business which is the intent and encourage to minimize rent increase and lowers rent burden for legacy business when rent increases are higher. The negatives when which you are mentioned are more comment plex but that seems to be the only negative we can think of. Some notes, the proposal only takes into account the rent increase between the last year of the old lease and first year the new lease so land lors and legacy business mutt negotiate annual rent increase. Ovtimeatize is 3 percent or cpi. The percentage we mains the same throughout the grant timeline. Fiver 0 percent for the landlord and 508 percent for rent reduction. If it is a 5 year lease with 5 year aumgz to renew the rent increase at the 5 year period would accept the percentage accordingly. And then at the meeting on september 26 commissioner zouzounis requested feedback on the proposal and the City Attorneys office says consisten with prop j legislation. So far all the initial feedback is positive. Staff recommendation is you would just still continue to consider in the rules and regulations the inclusion of this proposal and well look into it further. If i may, so the pro posal the rent increase between the last year of old lease and first year of new lease, i get that, however it is renewed every year so what hanned if im under 4 percent in my lease renewals so i meet the criteria and the following year i jack the rents up 10 percent . We are look ing at the last year and they to negotiate that. So when they come in for renewal which they have to do every year and the tenant says i was over a barrel last year and wouldnt have made it to this year had i not got a grant and face ag10 percent increase and cant afford that. You signed a lease. Yes but i was looking at my immediate survival not long term. Any lease regardless of the [inaudible] so, then we are in a position where potentially thewe may say that is just not sustainable why would we give you a grant if you face a 10 percent rent increase and you tell us now you wont sur vive . Would we not grant that grant . Then, again that goes back now we are like reviewing leases in some capacity. I know, im just sayal i dont like that i dont see why any landlord will into into this agreement accept purely looking at the grant and saying, that is enough for me to satisfy my appetite for rent today. Based on all the considerations i have for this particular tenantch it seems like the appeal will be somewhat limited. In this hot market they will i thinki dont want to say mu churty but many landlords would review this and say i would rather raise the rent to 40 percent. Yeah, or whauv i raise it. The landlord will look at what i want the rent or need the rent to be. Can i add for all the landlords or Small Business owners watching this, we want to make it simple and get that money as fast and simplest way possible to the landlords so this has bite. Everybody in the Small Business world knows the more complex you make things, the harder for Small Business and like aevd in here says landlords will be like i can get somebody that will 40 percent without reading. Time is money and so the more time you spend working on the agreement, time is money. What do you think it is in our Due Diligence looking that economic viability of the business in requesting the actual percentage that the new lease is going towe will review the lease and if we award a grant to someone who is lease is going up 20 percent shouldnt that also be considered for us in terms of how so, again, when the landlord goes to apply for the grant the lease is already signed so it is agrud to. Part the Business Assessment that we are asking when the legacy business applies for the Business Assistance grants but we offer the Business Assessment to all legacy business and dont have to apply to the grant it is to get a insight into their Financial Health so that if there is other assistance that we can provide we can do that. We ask the question in the Business Assessment, are you coming up for your lease renewal . Thinks of that sort. We can ask them do they want some help negotiating their lease and we work with Legal Service for entrepreneurs who can provide that assistance. We are trying to sort of flush out any maybe asisance assistance for the business through the Business Assessment if it is needed, but fl rent stabilization if a business says my slees coming up and need help with this, well provide Technical Assistance but when thatwhen the landlord applies for the grant that lease has to be signed and those two parties have to have agreed on what their financial relationship is. So, when we ask for what we are looking for in the lease there will be very specific things like we have to see the Square Footage documented to assure that we aresomebody is not leasing a thousand square foot space and the landlord saying it is 2 thousand. We have tothere is some things we will ask to see in the lease to verify. I guess what im not understanding is how can we levolog a lease that the percentage of the increase is already signed and how many will be it would be saying youhow can we levolog this . The same way taz is leverages with the rent stabilization grant that the information is out there and the tainl is out there and known ahead of time brf before the negotiate the lease. The catch 22 is you have to show up with a signed lease and negotiate a leasethe purpose of this legacy business in distress so how do i seen a lease saying this i with work with this if i getif youif there is 450 dollars coming from city hall and i can make it work and sign a lease and come here and say i cant get you that. Im obligated to the lease count toog get the 4. 508 and not happening. You can sign a lease with contichant city approved your application. Going back to the thing isstaff, you have done an amazing jobism in theory this is a beautiful thing. If the landlord plays hard ball we give the credit to the Business Owner so they can play. In the real world and especially in San Franciscos Real Estate Market they will be put off. This puts you off and gets too complicated. We want smj like the landlord is this cool acan you sign . As seizee as it is for the landlord. That is the realistic facts Small Business face. Ideally this would be awesome but not in San Francisco. In north dakota landlords take their time to sign a lease like this. My assessment is it doesnt matter which hand the money is in so i am kind of not sure i agree with the notion that giving the money to the land lod or tenant it is maximum amount of dollars. It is 4. 50 and it is all in the rent equation. So, in fact there is probably tax implication why i dont want it to come to me. The landlord wants it because the cap rate on the building is dependent on the rent he can charge. But that is only if you go into sale or borrowing money against it but many landlords borrow against their property. Very early on the landlord it is not to their benefit. This is only for a landlord who is neroli ar nice and says i only plan today raise your rent 40 percent or up to a certain amount, up to maybe 10 or 14 percent but any landlord who contemplates over 10 years it would bethey want to ask more why would they do this . Rents go up so dramatically in the last 10 years i cant fathom a rational landlord wanting to lock into a demin ms increase. I dont know can we just think about this . We dont need to debate any longer. The question because i would like to as much asunless at the october 24 meeting myi would like to have rules and regs that we can adopt and move forward because we need to get those to the board of supervisor for the 30 day count down. So, we can continue to sort ofput in the rules and regs an option a and option b, which is considering this or just considering that it all go towards the reduction in rent. Personally, i cumind staff on their effort and having seen what this looks like in all its glory, i recommend staff spend no more time on this because i think this nownow that we see it, presents a level of complication that will be a disincentive to carry out the program. That is just my opinion and so i dont know whether the other commissioners feel the same way or would like to see more effort put into it but i feel like it iswe have seenenough effort has gone into see what it looks like we have one option the scale option and i guess like somewhat ree agreed like what is the simplest way to get the landlord the money type of option. To your point regina there is a ab, you just have to very simple somehow just drafting it. For the sake of moving on i think if we go with the simplest way so we can in the future if we feel there is a need to go into the percentage and all that can we add that later on . Uhhuh our City Attorney has said that rules and regs in the future can be adopted and changed. We still have to do the public notice, 10 day public notess, then adopt and have to send to the board of supervisor for the 30 day. I would save this for year 2. Where will that leave us if we dont adopt of this . It all go tooz the landlord. Dinner at 8 oclock. In terms of people applying now our new crop, our right nobody can yet. Only impact the landlord . Right, so where this leads us now which is why imthe 1024 is where i would like to get the final rules and regs adopted then we have that 30 day before the board of supervisors then we start taking applications. Now we cant take applications until we finalize rule jz regs and know whether the board of supervisors will not take action on them. Have you run some of this by some of the supervisors . Yes. They like this . They like the concept of it. I think the concept incent vising the initial percentages and renewals are low, people support. Have we plented in the full detail . Of course they like the idea that we would come up with a scheme that restrict rental increase but that pie in the sky. Now you dpet down and are like this doesnt accomplish that. No supervisor has studied this yet and say this sounds great. Limit the percent increase that is fantastic, go for it. That is not approval. We cant the lease is already signed when it gets to us. We cant. Further more we cant impose that because that would be commercial rent control. Thats illegal. So, again, i would advocate that having seen what it looks like and in the interest of getting to the starting line as fast as possible that we table this for a later date to get to the starting line of this program with the simplest structure possible and see if that is of any interest to any landlords. That could be option one, which is just the grant is hundred percent given to the landlord. I just cht want to make sure that it is clearly understand, the hundred percent amount of the grant goes to the landlord in this option. It is just that we are saying based on the percentage increase that percentage doesnt have to go to offset the rent. So, it is all of it go tooz the Property Owner, it is just whether it is hundred percent offset or graduated offset. We can talk about this all night, but so they only get 75 percent because they raised the rent some percentage but where does the money go . It goes back to the renter . The business . If the rent is 100 a month so if the renter get 5 percent so25 percent goes towards 100. The tenant only pays 75 but the 25 is offset to the difference between the [inaudible] so who gets the 25 . That is what i dont understand. The landlord gets it as a rent credit. Maybe we didnt clearlythis proposal would say is that if it is 10 percent the landlord keeps 75 percent of the grant for whatever they want to do, 25 percent goes to offset the rent. That benefits the business. That businesses the business. Whos bank account does the 25 percent go into. We cannot talk about a credit where there is no money. I take 100 out of my wallet and divide it up, if that money does want end up in someones pocket it doesnt make sense. We are talking about unless im completely miss thg point here, that credit evaporates because you just told me it doesnt go to the tenant it go tooz the notion oof a rent credst. It has togo in someones bank account and they use it. It doesnt. It goes to the thing call adcredit and the landlord has to get the 25 bucks. We are saying credit in the sense it offsets the rent that the business owes to the profit owner jerks r so you center to give to the Property Owner. It all go thooz Property Owner but we say what the proseal says if you raise the rent 10 percent then 75 percent doesnt have to go to offset the rent only 25 percent goes to off set. It is just money. Somy understand sg now the commission is suggesting 100 percentf that go to rent credit. This commissioner want tooz know how the landlord gets 100 percentf that go to rent credit. This commissioner want tooz know how the landlord gets his hundred dollars. I get 75 bucks from city hall because it says so and somehow i get 25 percent in the form of a credit but it does want come to my bank account and go to the tenant bank account so how did i get my hundred bucks . What we will doso, when a legacythe landlord apply frz the grant the grant is approved and we have the full 450, say for the business is in a 5 thousand square foot and we are able to fund them, we will write a check for 22, 500 to the the Property Owner. Under proposition j right now the assumption is being made that 22, 500 the landlord receive from the city is deducted from the rent that the business owes to the landlord. My understanding isto do what they want. I guess what is the intent of all legislation . And y think intent is it was offset the rent. It merely influences a negotiated rate. It says i get 4 and a quarter, whatever it is, i get my 4 bucks from city hall instead of the tenant but still get 14 dollars a month instead of 10. So the minute you start sayingnow i get 13, where do i get my other dollars . Im going to get 14 and extract it from the tenant directly or get it in a combination of tenant and payment from city hall and so when we start obligating it with credit making my number that i get go down and then telling me that somehow there is a credit in there i dont get that at all. I want my 14 dollars a square foot. The commission is suggesting 100 percent go to the rent credit. That is what we are hearing. The intent of the legislation is be able to offset the rent increases that businesses were experiencing. The legislation actually says there are two buckets. One bucket is specifically for rent, so just uhhuh. Give it to the landlord because that is you get your 10 bucks period. Rent is rent. How you spend the rent iswe are not hear here to talk about that. Landlord rent build{get paid gent buy food and whatever they buy. And staff and anybody watching we are all experts in lease negotiation squz look how confused we are all here. We help develop the wording and it is confusing. Take to a landlord and especially if president dwight was a landlord, oh man we are used to reading this stuff. Anyway. Sorry. And just dont understand it so cant make a determination. Im frustrated by it because it is standing in the way of keeping it simple and getting to the starting line. We are not at the starting line and criticized for not being at the starting line. Forget about this whole chart, the third option. The landlord gets the money, can they do whatever they want with the money or do they have to go a certain thing . It is rent. It is part of the rent equation. If they dont stipulate as rent credit not just to the landlord. Yeah, but it is just money to the landlord. The fact is it has to be influence the rentit has to influence the rent offered to the tenant to make that rent attractive to the tenant. So, yes, if i say i was going to charge x and now will charge x minus the grant that is fine. It is influencing the lands lord to enter . To agreement with the tenant by saying you st. The grant money and do what you want. It is already signed, how are we influencing the leasing by offering grant money . That is what happened is a couple businesses have signed leases knowing this is coming up. Contingency based upon approval of grant. I get it and know what you saying but what is confusing is give the money and the landlord doesnt reduce rent but the legislation this is supplemental. What i hear from you in the rules and regs that we definitely have to see sections in the lease that the amount of the grant goes to offset the rent amount . I think the lease would read your rent is x and x is this plus this. But it still is x, so if this goes away you still owe x. It is the base rent plus the grant but i want that total amount and if that grant goes down or disappears, i still want that total amount so the contingencyi cant imanlen a landlord thinking anything other than that. How is this written, intend to incent the lan lord to extend the long term list like a 10 year lease or is it supposed to be the money go to rent credit or offset the rent . My understanding is the policy proposalthality we are talking about are consistent with the goal with the goal of proposition j. A goal of prop j is to incent vise these longer term leases but how you achieve that goal is more a policy question and i dont the law did not say that money has to go toward the offset the rent, right . In theory im a landlord and because i gave a 10 year lease regardless whatever i wanted i get the 22, 5 because i signed a 10 year lease. We should get verification on that because in terms of the initant of the legislation and how it was marketed and promotedso, well work with manu knows this a little bit. Shall we consult with manu and get back to the commission . So, i think my understanding of what we need tonight is really just for sense of the policy direction the commission would like the rules and regulations to start to move towards. I think from a legal perspect ive it sound to me like any of the policy options that we discussed are consistent with the law we have and which policy option the commission feels is the best way to achieve the policy goals is less a legal question and more a political and policy question. I would apply both because if im a strong soled business and 10 year lease is what i want i dont need month to month and get 22, 50 it works for someone business but it offsetathize Square Footage per month. If rent is 14 and only pay 10 the city backs for 4 but you still center to pay 14 come rain, snow or shine so it is both ways. Right. The the other complication has two tenants. City and the tenant. Is this a one time payment . It is one time payment. I think just to make sure that youre comfort is one of the things that has to be clearly understood in the Grant Application is it is demonstrated the tenant knows that in the event we cant meet our obligation with either the full amount or partial amount or there is no funding put into the rent stabilization account the business knows that theythis is not guaranteed, that they are subject to paying the amont that negotiated. So, i agree with president dwight i want something on the next meeting but can we see iterations of this prayer prior to give feedback so when we do meet here is approve and get the ball rolling . Yes and i think with the one week window was a little challenging with trying to get Grant Applications through the process, so yes. We have three to the 24th so well get to you a week ahead of time. I welcome a explanation about credits that i can get my head around and will study it more. Maybe we need to just remove the word credit from our discussion. Alright, i think we have enough direction to work forward on to present to you for the next meeting. And think with that we will conclude item number. Do we have members of the public that would like to comment on item 9 . Seeing none, and having exusted myself Public Comment is closed. Any other comments . Lets move to item 10. Okay. Item number 10, approval of meeting minutes. This is for the september 26, 2016 and february 8, 2016 draft regular meeting minutes. Any comments on either of the minutes . Okay. We have a motion . Do i have to move eech one or just one . The two together. Move to approve. Second. All in favor. Any members that would like to comment on item 10 before we vote . Seeing none , Public Comment is closed. I move again. Second. All in favor. Aye. Opposed. That motion pass es. 50, two absent cht directors report. Update and report on office of Small Business and Small Business assistant ser, Department Program jz paults legislative matters and announcements from the mayor and announcement regarding Small Business arkativities. We are a briefing on article 7 planning code. The Small Business commission will hear it on the 13th. So, as of the 13th they may approve those changes. There may be additional changes and ill get that information. So, if the planning Commission Approves it it will be introduced at the board of sfr visors and come back before the commission asaficial item for you to hear. On october 27th thei mentioned a couple times that we are working on a space at 1650 mission to house the Small Business Development Development center and have a satellight office for osb. Initially we thought the hearing would be in january, but it is actually now scheduled for october 27 so we are pleased bet thabecause it will be able to move up the timeline to start working on the space. What men cupassed out to you is she has been atunding Task Force Meetings around proposition 64 which is the adult marijuana act. The legalization for cannabis, so it is pretty complex. The implication of it should it pass, so we have been discussess providing informational briefings for you to start wrapping your head around all the potential implication and what will bewhat not all about a good deal of potential ledge slaishz that will come before the commission as the rules and laws need to be adopted and put into action. So, this schedule is here, we put together a schedule to kind of help sort ofwe took a look at the different categories and to understand the implication so that schedule is before you. We do have the list of the new business items that you have provided us and so ill provide once we get our rule and regs passed for the legacy Business Grant then ill be providing you with a list of when we will provide those presentations as well. And i think that thats it for right now. Unless you have any question . Are you prosing we will hear presentations in this order for cannabis legalization . Is there a reason to hear anything before the election . Um, it will be a pretty fast escalation process starting to work on the rules and regs. It f it passes i think fl Business Owners that are trying to do Business Planning this would be helpful. There would be just one presentation prior to had election and Everything Else can be canceled if legislation does not pass. Okay. And also we do not havei think the next meeting we only have 4, rickwe only have 3 legacy businesses, so this would be a good meeting to do that introduction because the future meetings we may have more applications. Lots of time to talk about pot. Alright. That concludes my report so we can call Public Comment. Any members of the public that would like to comment on item 11 directors report . Seeing none Public Comment is clozed. Item number 12 commissioners reports. Allows president , Vice President and commissioner tooz report on Small Business activities and make announcements that are of interest to Small Business community. Dogpatch Business Association the newly formed dogpatch Business Association had its first mixer last week and so we are officially getting launched so have a new Business Association in San Francisco to join the cdma. Im a cofounder of that. I have been working extensively with aaron star from the Planning Department on the proposed changes to the mcds and trying to go back and forth between the general planning code, how those would effect with these changes. Some are fairly substantial but we have spent lot, many hours working through all the changes to make sure they line up and will be working for the mcds. Thank you thank you because the planning is not fun. [laughter] i think it is kind of fun. [laughter] any other commissioner reports . Lths. We have Public Comment on commissioner reports . Seeing none, Public Comment is closed. On to item 13. Item 13, new business. Lows commissioners to introduce new items for future consideration by the commission. This is not new but just reused business. Again, the tabletslook at all the paper we just spent. Uhhuh. We should get tablets. I go to many board meetings. The terminals are dying and may soon have tablets. I have no objections. Like to propose staff do a analysis how much the cheapest tablet and benefit. It is better to get on a constant basis and uploaded easier. Is there a legal reason why we could not be our binders couldnt be we just center togive the tablet back. They email all this stuff to us. We can specifically present items out. You can have a tablet and one of these and these. In the mean time we could allow a opt out system. Lets investigate what is involved and report back. I would be thrilled to go binderless. Unless we have paper boat making competitions in the city that i dont know about. Alright. We have other new business . Any members of the public like to comment on commissioners ortizcartagena suggestion . Seeing none Public Comment is closed. Next item could you please show our slide. We begin and end each Small Business meetic with remipeer the office of Small Business is the only place to startd your new business in srf is and best place to get answers about doing business in San Francisco. The office of Small Business should be your first stop when you vaquestion about what to do next. So, if you need assistance with Small Business matters, start here at the office of Small Business. Thank you. Okay. Our final item, number 14 adjournment. I move. I second. All in favor. Anyone opposed . The meeting is adjourned at 758 p. M. Really glad to have you here for this dedication ceremony for the new air Traffic Control tower at sfo well begin our speaking portion and spanned a welcome to michael administrator. clapping. thank you very much and good morning San Francisco and. Morning. Im delighted to be back in any home state of california and i want to begin by welcoming everyone who took time out from in their busy schedules to join us today what were celebrating a significant milestone it is a significant milestone for the faa and San Francisco International Airport city and county of San Francisco and for the millions and millions of travelers that pass there to at t park every year it is undertaking and completion was the result of something unique a unique Partnership Im wondering talk about that in just a moment before i do that i want to recognize some distinguished guests wave or youre all standing wave when i call your name alice if Nancy Pelosis office alex there he is. clapping. Karen Chapman for congresswoman aaron. clapping. okay kathleen deputy for jackie spier and, of course, my great friend the honorable mayor ed lee. clapping. and mayor, i have to take a moment and thank you for eyes and ears to represent the u. S. Conference of mayors as we look at the next century of aviation my history with San Francisco at t park goes back a way to the 1980s and early 1990s when i lived here and executive director of port of San Francisco San Francisco is changed a lot since then and so has this airport those days you even though emigrate feeling when you come into that building you stepped into an architecture digest spread as stroll through certain parts of airport including the spot were gathered in with this incredible view of the tower that is rising upright behind us here now San Francisco has proven that infrastructure can be fundamental and eloquent at the same time as faa administrator i objective find myself reflecting on the big Infrastructure Projects as much as how important that these investments are to our National Economy and aviation and era space are 5 percent of the Gross Domestic Product some 12 million american jobs that is working in the aviation and era space industry to say for those Investments Continue because they contribute to great jobs for American Workers and help to insure that our Transportation System is going to remain save and plea of for many, many decades to come i also find myself thinking about all the core graphed work into planning, designing and building those structures and id like to acknowledge some of the groups whos close collaboration insured the process was moved and efficient and it was safe our air traffic managers and kroerldz and the national air Traffic Controllers association those people not only operate this tower but are involved in the planning and design and the functionality of this tower from the very beginning our technical Operations Managers the technicians and the professional specialist who are responsible for maintaining this facility in the infrastructure in it the project Design Built Team architects and others and, of course, our faa Engineering Services personnel and the leadership right here at San Francisco airport and the Construction Management team now faa and sfo are not strangers to working collaboratively with one another in the last few years weve worked closely to improve runway safety and skis in more arrivals when the bad weather comes in not a problem today but this control tower to the collaboration to a new level what we added at the faa was a no air Traffic Control tower that met the schematic standards and which met all of our operational needs sfo wanted a tower that reflected the city its unique culture and distinguished itself from every other air Traffic Control tower in the era space system do you think theyve succeeded. clapping. now on top of that the structure had to be integrated into the existing airport terminals that is no easy feat in an air Traffic Controller that at t park that has as busy and come pack as San Francisco bus because of the unique circumstances the few agencies shared the costs of this project and in a striking departure from the faas normal way of doing busy 70 designed the tower and oversaw United States construction work while insuring the twoeb tower was built to faa specifications and so i really have to sweat shirt to the team here at San Francisco airport that did a great job. clapping. now this was a pretty ambitious undertaking neither of our agrees are used to doing business were controllers we like to be in control. laughter so to make this collaborative approach work each of the agencies need to relinquish some of that control to the other now our Engineering Team told me earlier today when i was Walking Around the facility this approach they didnt know there approach would have worked with any other Airport Authority anywhere in the country and at the is that the key to the success here at sfo was an exceptionally professional trust worthy and flexible partnering at San Francisco airport i know your to hell in a hand basket at tower that is 200 he 21 feet tall the cab is 6 hundred and 50 square feet and gives our controllers unobstructed views of airport runways and take ways contains sfpuc air Traffic Controller equipment a a host of green features that reflect the faa and San Franciscos shared commitment to responsible Environmental Stewardship that reflects the similar culture of our two agencies we both embrace tough tasks and embrace pushing the envelope to see what we can accomplish when we see a challenge we dont not only try to that how well get it done safely and get it done efficiently so id like to express my sincere thanks to all the remarkable people at the faa, the San Francisco International Airport and everyone who played a role no planning, building and outfitting this now tower the work you did and the work that you are all continuing to do is going to help make San Francisco the safety, and the most efficient airport possible for many, many decades to come thank you very much clapping. thank you thank you administrator and now its my pleasure to welcome the mayor of San Francisco mayor ed lee. clapping. thank you good morning giants. Yeah. This is a great day and i want to again welcome the administrator michael who has a history with our city but he said it all it is he is absolutely correct i truly building and am thankful what we described the faa wouldnt do this with any airport you have to have the right team the high barrow to the 70 team and the faa team put together with interests, with the h n t B Corporation and pencil phelps creating that team that had the faith and shared cost is incredible to have this new control tower done it is one that i know were going to be proud of for many decades as the administrator said it sits between two airport runways here the terminals between one and two and see iconic views at the top ive had the pleasure to do an unobstructed view of the entire airport that, of course, was ultimately needed in this modern facility it is modern not that radar system that will be able to get introduce any fog no matter how thick it is to be able to see the airport by the way, 16 Million People coming every year with all the planes and the way we configured them the type this is have to be contingencies thank you to the air Traffic Controllers everyone for keeping our airport save everyday and flight everyday tight and were not to be to be expanding more runways well be Environmental Partners through the entire area and figure out outlet ways to increase the flight that want to be here in this great city and region he is to the entire Team Congratulations i say that you know when you think about this tower is in and of itself the way it is constructed and designed it is invite and creative it has the environmental sustainability and ultimately that i think it is iconic whether you think about it weve got iconic symbols in San Francisco golden gate bridge, the accosting and the cable cars the way this was done i have to say in my own words this adds to the iconic facility our control tower and sfo now another place people will come and see and marginal i cant wait to see it lit in orange congratulations, everyone. clapping. thank you, mr. Mayor now, please welcome the airport correct of 70 i vary and thanks doug it was orange and been orange more than a couple of days and i hope in weeks it will be orange a lot of work and talent but thank you all for being here today that is really a wonderful event and it is 6 years in the making and it took such a Collaborative Partnership with the faa and with our Design Partners and Construction Partners that is a proud day for us i want to also acknowledge some important people to our airport if i could Vice President linda is here linda. clapping. thank you for coming it is wonderful to have you, you here and also i want to thank the administrator for being here that is a pleasure to have you here and show off our wonderful facilities thank you for the kind words and mr. Mayor for our tremendous support as well and this has been such an amazing collaboration it took the faa as an organization to help to put 3 program together im appreciative of work with the folks bad actor in d. C. When we were developing that the local a v o office and the project staff that were completed and compassionate to two cultures