From 220 post. The likelihood that a Retail Business would want a stand alone third Floor Office Space that is accessible from an alley that provides minimal foot traffic, marginal street visibility and has some Security Issues is in our opinion simply less than minuscule. On the overhead, i want to post one more image which is looking at the alley from grant street and if you see the orange box, that is where the third floor business is. Pretty tough to see. Pretty unvisible. So with all that said, nothing prevents the third floor and the upper floors being turned back into retail if at some future point that becomes viable. Project does not include any physical changes that would preclude that, so i am going to let the project sponsor speak about the actual efforts to lease this building, but before i go, in your packet, you have support letters that collectively include 41 signatures in support of the project including a leter from members of the Street Building at 210 post which includes 33 signatures representing 18 different businesses. I will turn it over to mark. Thank you. 220 post, we have been marketing that building for three years. And we have been talking to tenants both retail, quasiretail, and even Office Subject to a conditional use permit. And we found no taker. We talked to prada, lulu lemon, lewis vuitton, maz ratry, ralph lauren, tesla, and we talked to probably 100 tenants and not anyone that would take the upper floor spaces. And in fact, what we foresee happening is that were going to have to because the second floor cant be converted to office, we have a 50 foot store front and we will have to carve out an entrance for the second level to get up to the second level off post street. And to carve out three entrances on that, none of them will be viable and give enough identity for the amount of space. The floor plates are a little over 6,000 feet. On the third floor t quasiretail are not 6,000 feet useers. At best they are maybe 1,000 and mid block with windows just on the north and south which if we try to break up user, users with no window, no light, no air, and i dont want to rent space to people who dont have light and air. The other thing is i can tell you that we talk about economics, and the rents have on the retail areas in the streets are down probably almost 30 around union square just to signify the structural change and that is on the ground floor i am talking about. We tried. We dont have anybody interested in leasing this building. And i have seen this not just in San Francisco, but in los angeles and new york and miami. Its a global phenomena, really. And appreciate your listening to our concerning and are here to answer any questions. Thank you. We will now take Public Comment. I feel like its the same cast, same call. Very supportive of this project as well for similar reasons as 146. Again, we want to fill the upper floors. And bring people downtown and that will frequent the businesses and bring vibrancy to union square. We are particularly excited about proposing an entrance on compton place and we have been trying to activate that alley for a long time with art and two different grants to put art on the back streets and food and entertainment down there with the possibility of another entrance down there would really contribute to the vitality. Very much in support. Thank you. Next speaker please. Richard lee and this is a different spin. I am actually representing owners on each side of 220 post. Compton alley that is not very pretty. There is no foot traffic and the foot traffic that is there is undesirable. It hasnt gotten better in the last 10 years and actually gotten worse. The proposal is a very transformative proposal that is very welcoming and just look at the signatures. There is quite a few signatures. And back to the project and approach often. And i am on each side. This is awful. And what will happen here . Is anyone coming . Mr. Sfeffen expressed to you there is no takeers. And i dont know what to say because i am not from mr. Steffens office, but all i say is lets cross your fingers and see what happens. And its been about five years since saks fifth avenue for men vacated 220 post and he already explained to you its never been the same. And is another year and talking 2020. And feel like that is my property. Take that and following up what is happening closely and internationally and not just union street. And rates have come down. And information on that and i dont need to see much more. And there is no question about it. And also contributes to the city coffers and occupancy tax and with occupancy, the landlords hopefully can Start Playing the property taxes on time and basically its not just money, but there is foot traffic and lights. And ms. Hester talks about lighting. And he made it and. Thank you. Next speaker, please. Sue hester, i was hoping that he would make me happy by talking about the abundance of lighting in the building. And so he didnt make me happy. 2 the Building Owner by compton street as well as post street. And dark alleys are a problem. And they are unsafe and people dont want to wonder down them. If they feel safe and i am sure you do as well. The Building Owner, not the tenants, has to provide these conditions. And you are giving the value a lot of value when you are declining market and prices for retail and exploding increase in presents for offices. Owners are evaluated by rent entitlement. The owner will have the benefit and should have the obligation in perpetuity for lighting the street and the planers should go over the plans and make sure they are part of the plans and the supervisor should as well. Thank you. Any other Public Comment on this item . This issue with the retail disappearing is going to get worse and worse and seeing formula retail vacating very come innocent spaces and that is a huge sign to me that business is not looking good. Near my office the g. M. C. And a sees candy with huge parking lots literally went out of businesses and vacated the premises and next to a starbucks that also vacated. I respect this is a fivestory building and the recommendation may not be to take over half of the building, but i literally dont see an opportunity for the even three floors to be rented. The 6x6 center literally still completely vacant as far as retail goes, and that is a huge, huge building on fifth and market primetime. I would be in support of giving i never want to take away the first and second stories. I will give you that every single day of the year, but i dont see the places getting rented out by retail. I would be supportive of granting the third, fourth, and fifth story with the other condition of installing the lighting in the rear alley. Commissioner moore. We are just experiments with the perception of the retail square and the office and i would like to keep a balance and i do strongly support the departments analysis that no building should be more than 40 of office at this time at least. We can change that policy if the policy and sitting there and that only candidates like chanel and the highest end stores are being considered to occupy the spaces. I dont think that bodes very well for how we look at more inclusive offering of retail spaces in downtown. So i personally would at this moment be very measured in my support for office. I do believe we have created a strong legislation that is balanced are the objectives. My recommendation stands with the department and i can only support two floors. Again, there are other opportunities to revisit this after a while. We have many buildings which will try the same and plenty of space becoming available and i believe in looking at it in a measured way. Thank you. Commissioner diamond . Could either staff or the project po point explain in more detail why you cant do a retail entrance and why it has to be three individual entrances as opposed to combining them . To make it viable, tenants want their store front identity and is all about identity. The minimum size is 25 feet of width to have the store front and attract customers and for a larger floor plate, they want a larger identity to signify it is a larger space inside. If your idea is to have unelevator up to the second and third, it is not individually branded and most of the tenants want more branding to show off the wares. Beyond that, second floor and we might do an escalator because it is a direct access. And put an elevator to the third floor is longer. Beyond that, it is going to be tough to rent the second floor. We have been trying to lease just the second floor at 146 and 220. We dont have any takers. We tried that. And to speak to ms. Moores comment, we have talked to promotional retailers, to discount retailers. We talked to the real real and they are selling secondary merchandise. And we talked to everyone about this. Were inclusive. Anybody wants to rent, we are happy to went, but the vn identity and not a lot of 6,000 foot tenants. That is the real problem, retail tenants. It is hard to find 6,000 foot tenants on the ground floor, let alone the second. Customers are lazy basically. They dont want to go upstairs. If i could speak to that and there is a misunderstanding that we are requesting we have retail and there are other opportunities for retail services. As long as you are open to the public, that is a permitted use and would not require a conditional use authorization. I did see that in the staff report and cure i dont say about the viability of the compton place entrance for that kind of retail. I think its a through property, and so its i am not sure why they are choosing just to have the compton place entry. That is Property Owners decision. I am not sure what is behind that and what is driving that. I am a little confused. How would you see people getting to the third floor . It is a through lot and extensive work being done on the building. And entry off post street. Thank you. Commissioner richards. I guess when i want of the third floor of hair salons and are destination places because people have the favorite hairdresser or whatever. I think people have the destination places that could be suitable for a third floor and you go and have your color done every month and favorite barber and hair stylist. I think i like the measured approach. Lets go with the upper two floors and see if we get a taker that is not prada or somebody who would probably never want that space and market to, like staff said, something that is open to the public that actually would be needed. I dont know what the concentration of hair salons is and just picking on what is that . There is one hair salon in town now that is about 10,000 feet at 77 main lane. And almost all the rest of them are 2,000 feet and about 6,000 feet is a really large hair salon. So one of the things that we keep telling new project sponsors when they come with New Buildings is you will have to start thinking in smaller increments. The problem with that is that this building is mid block. And it has windows just on the north and south. So divide that into smaller increments, some of the tenants wont have access to light. So you have 3,000 square feet. Which is still larger than most of the useers. I dont want to put somebody in a space where they dont have windows. Commissioner moore. I still see jewelry appraisal, watch repair, and that can be downtown using the spaces and kind of like the third floor retail culture of pedestrian which i would like to keep concentrated in downtown to such time. Commissioner koppel . I have to disagree and this landlord has been trying to rent the space for three years. I dont think its going to fill up. Commissioner richards. When my swiss walk breaks, i go to a building on the ninth floor and half the building seems empty. Mr. Seuss is probably 85. I dont know if there will be a son of mr. Seuss. But i dont see 6,000 square foot spot even though i would like watch repair and i dont see a bazaar where you have little offices because a watch repair and the office is like 100 square feet. It is tiny. So there is kind of an al ba tros. And a good job about the less than minuscule chance for the third floor. I am going to support on this specific property to allow the office use on that third floor. Commissioner koppel, did you want to say anything . Just quick. That is also taking into consideration the third block and to aprooef three and four and five with the condition to taud expeer yor lighting in the back alley. And with the exterior. I wanted to speak to the lighting question. I apologize to ms. Hester for not going over this. This is approved by the Historic Design Commission and on compton place it shows 15 to 20 light fixtures on the soffit and this is a recessed store front and to span that width. And with the plan from that clarification. Is this truly an albatross because of the configuration of the building or is this going to set a precedent for future building . An i currently have probably six additional applications to convert at the third floor to office and they are all generally coworking spaces and i think this is a trend. I think this is a precedent. I think that this i would i am not saying that we should keep everything vacant and there are a lot of different factors that are playing into the vacancies in downtown. And there is a lot that is going on. And the Square Footage that office space demands is much too precious, and that will never go back to retail. So im not quite ready to let go of the third floor retail. I am not convinced. Last year a presentation and before i take that plunge which will waive the way, i need to see hard data accompanied by the price per square foot that is being requested. And what can be supported by different the hair salon and maybe restaurant and there cease so many things that i would need to see some data on. So i am ready to vote on the staff recommendation and approve it on the fourth and fifth floor. However, since we know that there is high demand for coworking space and that it is not just in union square but adjacent chinatown, and i am really worried about doing this lightly without any hard data. So thats where i would fall. We are not making the recommendations lightly. We like to have data to back it up and at that time the data was showing a demand for retail and a matter of getting education out there about what types of retail is permitted. It is not just selling shoes. I would make a plug and to have to revisit that site and to get new updates and the world of coworking space has exploded since she was here. I am interested in that. And i also realize that as commissioner koppel that has spated the world of retail has dramatically changed. It is perhaps not a world where saks fifth avenue took up all six floors. But what is the new world . I am not sure that i understand that. And yet i am not ready to say turn it all into office because we know that we can rent that out. That has profound repercussions for union square and chinatown. A commissioner diamond. I am really sympathetic to the arguments that the project proponent made, but i am really uncomfortable doing this as a one off and this feels like we need study and to apply in it a fair handed way. I did read that report and it may be dated and that different recommendations are in order, but i am really sympathetic to that argument. Commissioner, there is a motion, but did not hear a second. U a didnt you second it . I did. Very good. Shall i call the question . Very good. Commissioners, there is a motion that has been seconded to approve with conditions amending the conversion to allow it on floors three, four, and five. Also requiring back alley exterior lighting. On that motion, commissioner diamond. No. Commissioner fung. No. U a commissioner moore. No. U a commissioner richards. No. Commission president melgar. No. That motion fails 24 with commissions diamond, fung, moore, and melgar voting against. Is there an alternate motion . Commissioner diamond. I would like to make a motion to approve the project as recommended by staff. Second. Very good, commissioners. There is a motion that has been to approve the project with conditions as recommended by staff. Commissioner diamond . Aye. U a commissioner fung . Aye. U a commissioner moore . Aye. Commissioner richards . Aye. Commissioner koppel. No. That motions passes 51 with commissioner koppel voting against. That will place us on item 17 for 2018007267ofa that is an Office Development authorization. Good afternoon, or good evening president melgar and member bs of planning commission. Before you is a request for an office allegation from the Office Development limit authorizing up to 49,999 square feet of General Office use. I would like to submit a revised motion for the for the record and looks like changes to clean up language pertaining to sponsors contact, parking, and the recording of permit a and drawings. I have hard copies on hand and happy to go over the specifics if desired. The project 865 Market Street is at the southeast corner situated within the c3r Zoning District three blocksout of union square with the distinct portion of the larger Westfield Center completed in 1988, this specific portion of it. The proposed project will convert 49,999 of existing retail, accessory office, and miscellaneous space at floors 7 with the entry along the ground floor at fifth street. Exterior work having been done by the Historic Planning Commission due to the location and article 11kearnymarket. Masonsuter conservation district. And this includes replacing bronze sconces with glazed skwonss. It would add class one and two biking and showers and lockers and the amount required by code. While the project is largely limited to the conversion as defined by the planning code, it would rut in an increase in the gross floor area of approximately 7,870 square feet as the property already exceeds the base floor to ratio allowed under peks 2. 10. 2, this will require the purchase of Transferable Development rights. The department has received two letters in support of the project and nonexpressing opposition. The project is on balance consistent with the objectives and policies of the citys general plan and finds the project to be necessary, desirable, and compatible with the surrounding neighborhood. It will create Additional Office space at the top two floors serving to bolster employment and in an area immensely well served by transit, office us