Skip to main content

tv   [untitled]    May 11, 2015 6:00pm-6:31pm PDT

6:00 pm
>> commissioners? >> commissioner white? >> thank you so much. i actually happened i'm in the process of opening up a second location and using the business portal for all of my permits and licenses and i know this very well and you have done just a really good job. is the restaurant permitting process the only one right now? >> yes. >> as as far as the mapping. >> it is a lot of work. i do know personally you can attest to this. it's up to 26 permits working with 24 agencies. >> yeah. >> so you know the majority of them are all city departments there's also a couple at the state and one at the federal level that we're looking at so the intent is to you know, let's tackle the toughest ones and i really wanted to come out strong and make a
6:01 pm
huge impact right away and once we tackle restaurants everything else will be simple and let's say you have a retail shop at another physical location and we've looked at building and planning and it it can be easily replicated so restaurants are the first step and the most challenging. i've been told by people that i was crazy for wanting to tackle restaurants and i said you know what? i've seen how much pain our restaurant owners go through and why not go for the biggest impact right away? >> that's great i'm glad we're leading the pack. >> commissioner adams? >> i just want to say congratulations this has been a long time coming and we've talked about this for oh, my god 5 or 6 years ago and seeing it now come to this i just want to say congratulations to you and your team. >> thank you very much
6:02 pm
there's more to come there's a lot more to do with this and again thank you for all of your support. >> great this is fantastic i feel like i'm a high tech venture capitalist instead of a government agency we always hear about them being over budget but you have done a great job and i think you have established a model for other departments and agencies to do the same so spread your good practices across the rest of our organization here. >> thank you very much. government workers can do great work as well and we're here to make an impact. >> you have done a fantastic job. any other questions. >> congratulations i think it's a wonderful site. i have a question about early on we talked about mainframes and what is the cooperation or communication that you get from other agencies to update your site? how does it work? explain
6:03 pm
that. >> thank you. that's a great question and when we first started, our maintenance manual, you know i think i explained to you last time it's very difficult to get the departments to come to you with an updated form or an increased fee so initially i thought it was going to be very challenging so what we implemented in our maintenance strategy is we, ourselves, would take on the all on the auditing on a quart er ly basis and which we're still doing but over the last few months other departments have seen the success of the business portal and now proactively reaching out to me saying hey we've got a new form, can you put it in the in the business portal or we have a new process and make sure it's in the business portal and that speaks for instead for itself and i still put the
6:04 pm
responsibility on my team and i to do the auditing of every single form. >> great. >> fantastic. >> all right. >> thank you very much. >> thank you very much. do we have any public comment on this item? seeing none, thank you jane, that was fantastic. >> thank you jane. >> all right. brian, let's move to item number 4. presentation and discussion on the university of san francisco school of management and it's gel gel gel art gellert.
6:05 pm
>> welcome and thank you for coming the for coming tonight. >> we introduce this collaboration to you in october of last year and in december you had a report from the teams that worked in the fall on various aspects of the legacy business ordinance and at that time the ordinance had not been adopted and as you know it was adopted in march of this year. we had 3 teams this semester working on various aspects of the ordinance and specifically trying to enhance and put a face on the issues that hopefully will be addressed through the ordinance. we had three teams who worked on this this semester; one who looked at issues of displacement particularly along commercial corridors and we selected five for study. we had a team, well, it was a very large team that looked at
6:06 pm
developing 2-case studies one of the business that owns its own building and one does not and you will hear about those two businesses and finally a team that looked at incentives that might encourage legacy businesses and legacy business landlords to participate in the program and it's my pleasure to have the students who are the leads in that particular program offer comments to you and they have broken it up into 5 minutes for one of the teams and they will go ahead and present i'd like to call ian ian to the foreright now and he will present for the for the displacement team. >> how do we get? sfgtv, if we could have the powerpoint displayed, please? >> welcome, don't be nervous. >> i'm not too nervous.
6:07 pm
hello everyone on behalf of our class and u.s. f school of management i'd like to share our findings regarding commercial rent increases across several key corridors of interest and i'll be representing the displacement group. >> we have willy and frank they are also members of the group and 3 others who are not able to join us but they are there. and our original assignment was to identify rent trends and retail space over the past 20 years within 4 commercial corridors and as as you can see here we have third street, 24th street valencia street and castro street. possible reasons for these trends -- it's important to understand the impact of these trends on the businesses and it's
6:08 pm
also important to realize the impact it has on the surrounding communities with these businesses so along with collecting the hard data, we conducted interviews with businesses to gain a greater understanding of how it's impacting the community around there and a good example is an interview that i had with an employee in the flower shop and he was forced to move to the east bay and has to commute every single day due to rising rental prices. first the city-wide overview san francisco general trends -- business closures have risen by over 800 percent of all businesses from 1992 to 2011 and in 1992 the number was 1298 total businesses were closed or had to relocate and in 2011 this number rose to
6:09 pm
to 12, 767 and the same trend we found was for established businesses meaning businesses that had been open for five plus years are also feeling the same impact and this number is in 1992 went from 518 to 3657 in 2011 and yes, this is less than the general trend of the entire city it's still great. additionally, the rate of closures and location changes for established businesses increased to to 20.6 percent and this is much greater than the the median wait and the rate of commercial rent prices is increasing at an increasing rate the more years we go into the future the greater the increase is each year and
6:10 pm
it's it's attributed to rent prices and the average price per square foot was 119 $119 and rose to 675 $675 and and this is according to the assessor's office data and if these trends continue it's estimated that 4370 established businesses will close or change locations in 2015 alone. so for the most part, the price per square foot collected is increasing but the price per square foot in 20 in 2010 is lower than 2005 and had this recession not have happened all of these prices would would be inflated even more and new businesses are able to afford these inflated
6:11 pm
prices and if you are a landlord and you are given the opportunity to receive more profit you will give the others the boot in exchange for the new money coming in largely due to the tech industry that's coming in. based on our research and the data collected our team came up with the following recommendations -- any legacy business looking to relocate must consider the possibility of rising rent prices and the effect it will have on their business and businesses open or relocated that are geared towards like families or those interested in preserving the community aspect should open up in the castro where people are willing to spend more money on increased prices than the businesses that had to raise their prices
6:12 pm
to preserve their rent and businesses should consider the third street corridors because their rent is lower by a significant amount but it's still pretty significant and it's hard for these old legacy businesses to compete with the new tech industries that can come in and afford these higher rents and another recommendation is legacy businesses should be allowed to purchase the properties where they are located and have some sort of permit so that these people can stay and rent is going to keep increasing and if they can purchase these places they won't have this continuing issue and now i'm going to introduce our next presenter. darren cavalero. >> welcome darren. >> good evening ladies and gentlemen. again, i'm
6:13 pm
going to speak to you today on behalf of the case studies team. we have cheyenne here and will say hi. our team was given the task of studying and observing two businesses on different sides of the coin in terms of displacement issues as mentioned by the previous presenter and first we have bell mar meat market and bell mar is the one staring displacement in the face and was established in the eighties by mr. vas can vas mr. vasquez when you order a burrito for example this charming old lady comes up
6:14 pm
to you and mashes av ocado's for you in your face and it's unfortunate however that both customers and neighborhood businesses have expressed their concern of the long-term viability of belle mar in that area of the mission with customers especially saying like they should really find a way to help them stay in that corridor. their situation is in stark contrast to the situation at castro with cliff's. cliff's has been around the same premises since the early sixties and customers believe cliff's is an institution in the castro and if it closes in the next few years the castro as a neighborhood will lose a lot of its
6:15 pm
identity and it specializes in selling items catered to the citizens live near the castro area and it's also known for it's party like items like party costumes and the like and referring back to the displacement issue, they do own their premises and don't feel this pressure to again, be in the area they have control and in terms of key findings our findings were there are key demographic changes and we found these businesses could do a better job in taking advantage of these changing demographics in these neighborhood and seeing an influx of demographics we can describe as young and mull can you recall and tech fluent and we're recommending that both these businesses get get
6:16 pm
technical assistance and with better assistance we're confident that these businesses will be able to convert these new demographics into returning customers for the future and we also recommend going in-depth with the the case studies more and we need to find ways to help businesses like del mar and we strongly believe this will increase their business viability in the long-term future and i'd like to to hand it over to lindsay. >> welcome lindsay. >> thank you and thank you darren and case so i see case studies team. i'm speaking on behalf of my team members. throughout the semester our team focussed on finding and
6:17 pm
treating incentives for both businesses and landlords alike and hope to decrease the burden of increasing rents here in san francisco although some of our ideas could have potentially aided small businesses or legacy businesses the program creation that would have been needed could have taken months if not years to create an impasse and the condoization. the programs provide loans to businesses in mixed use buildings to purchase their commercial property from their landlord if the landlord is interested of course and the small business association program gives loans of over 5 million $5 million and and provides 90 percent of the funding for purchase provided specific requirements are completed by the business itself and
6:18 pm
these requirements are that the business must provide a 10 percent down payment and a cash flow statement a business proposal of what will be done with the funds and ownership of at least 51 percent of the commercial building and in order for the businesses to purchase solely the commercial aspects of of the building , the residential and businesses must must be separated. depending on building size and usually takes from 6 to 12 months and we learned that commercial condoization is not a difficult process but requires a large amount of money up front and it's our recommendation that the san francisco government explore the opportunities associated with the the 504 and 7 a programs and
6:19 pm
commercial condoization and create an educational campaign where landowners can learn what it is and about the process and the benefits they would experience like making a large sum of money quickly while having the ability to still own their residential condos on top of the commercial space and could also learn of the benefits and abilities that they can have in converting their space and owning their own property or develop a a consierge process. minimum wage subsidies along with others and encourage the sbcd to develop no and low cost marketing programs that legacy businesses could iota utilize. i'd
6:20 pm
like to thank you for listening and now open it up to any questions. >> thank you. commissioner adams? >> this is great and professor hudson, you did a great job with the staff. i actually got to help participate when we talked about the condoization and actually, tenants in common with commercial spaces which i'm starting to see more and more now in the city and i was very encouraged by what your students had done prior to our meeting it really blew my mind what a great job they did and i just want to say this is great information and i think this is something very important and you all did a great job on this i mean i'm very very impressed at the level that you guys dug into this. it's mind
6:21 pm
blowing i think it's awesome. good job. >> i'm going to need to have you speak into the into the mic. >> would it be possible to have the chart come up again? >> i think this is really important it was really a driver for the students. when they just aggregated the information in terms of per square foot rent increases particularly looking at what's happening along 24th street and you can see with a 203 percent increase literally from the from the 2010-year to 2014, it really brought home for our students some some of the challenges that they were, that the businesses were facing and you heard the love that came through when they went to the bell mar meat
6:22 pm
market and got burritos to really understand that from the perspective of what it's really meaning for particular businesses. it was really important. >> small business is tough. we deal with all kinds of challenges. commissioner dooley? >> what a great job you have done and i'm anxious to see this information disseminated further out there into the world and the condoization process i've seen a few examples of it in north beach which is where i am, and it's definitely the way to save legacy businesses otherwise you know our neighborhoods are going to have no personality it's just going to be whoever the highest bidder is and usually that's a restaurant and i really applaud you for what you have done and let's get that out there for the public to see it.
6:23 pm
>> we're happy to work with regina dick ens and it is our hope that we'll be able to continue this project into the fall expanding the research to other commercial corridors and accepting direction as appropriate to to delve down in this and take the business knowledge and actually see what it means on the street. >> commissioner white? >> yes, i just wanted to say great job i love seeing this kind of work being done in our city as a native san franciscan i've seen this city transform from one thing to the next whereas i used to go to go to the mission and have my little spots that are no longer there and north beach and they are no longer there and i hope we can continue
6:24 pm
this work further and good job. got some city leaders in here right now. >> that's right future leaders. >> future leaders yep. >> commissioners any other questions or comments? okay take public comment on this. >> sure. let's take public comment and i have a few things i'd like to say. >> okay. any members of the public want to comment on this item? okay. seeing none, public comment is closed. >> well first i really appreciate dr. hudson and dr. jiles and the students for all of the work they have done and the participation with our office. so from this information here, part of what the commission will be doing between now and september is sort of in addition to creating the registry program making some decisions on which you would like to have the
6:25 pm
office focus on developing programs so commissioner dooley, if you really, you know, one program that we could really work to develop is the commercial tic or condoization or you know we're calling it condoization for a lack of something more specific because we wouldn't be able to condoization the resident above we'd have to do a vertical subdivide in terms of making it two separate pieces of property and that's something that we could focus on creating as a program look to see if there's any other incentives but even just sort of having as, like, putting it on the business portal a very specific map and path and i think taking the recommendation that was provided here in terms of creating a consierge service for or
6:26 pm
legacy business so this information is to help provide you some information and help sort of help direct some -- help provide information to a direction to developing some programs. >> that's great and of course one of the biggest challenges for small business is unpredictability and anytime we can get predictability on what we pay the agencies of san francisco to be in business clearly that's a benefit to any small business so ownership as in home ownership eliminates that particular unpredictability and there's a lot of great work to do here to take out one of the largest of course the two most significant resources here for any small business is labor and real estate and both of those are increasing at pretty significant rates so if we can get the rents under
6:27 pm
control by owning our businesses or our spaces that's one less thing to worry about and thank you very much and we'll looking forward to how it evolves great class project. thank you. all right. let's move onto item number 5. >> mr. president shall we call the two items together? >> yes. yes, i see five and six. let's call those together. >> item number 5 is discussion and possible action to make recommendations to the board of supervisors on file number 141303 planning code massage establishments and item number 6 is discussion and possible action to make recommendations to the board of supervisors on file number 141-302 massage practitioners and establishments and
6:28 pm
associated fees. >> all right we're onto my favorite serial program here at the sba. >> [laughter] so commissioners we have this agendized in terms of of the legislation changes to the legislation that were before you at the last meeting to what's before you today, really not substantive changes well i shouldn't say that there's one substantive change to the health code amendment but it was brought up at the last meeting and that, so if you turn to your binders i think under item number 6 is this document provides a list much of which you probably have already reviewed. do you have that? i think it's under item number 6. >> i have it under 5, actually. the first page
6:29 pm
-- >> thank you. thank you. my apologies. all right. so. this is following what supervisor tang's office provided at the last commissioner hearing in terms of what was in the original legislation and then substitute the substitute legislation, the changes that were there i think the key thing that much discussion happened around the elevation of creating the healthcare massage industry was around the discussion of the practitioner, the healthcare practitioner and in the substitute legislation supervisor tang removed the healthcare practitioner as defined in division 2 of the california business and professional code from the list of exempted
6:30 pm
businesses that would be exempted from having to get a massage establishment permit for having massage as an ak accessory use and removed the manicurist as defined in chapter 3 but i just wanted to bring to your attention -- in the land use committee which was held on on may 4th, both pieces of legislation, the health code and the planning code were heard, and at the time of the meeting, supervisor weiner had decided to file for the planning code to continue on some amendments. he has since decided he's going to reintroduce new legislation for the amendment and i want to highlight what he is thinking about and if