Joined by representatives from the city departments that have cases before this board. Sanchez is going to be representing the Planning Department and Planning Commission pr and well also be joined by joe duffy who will be representing the department of advised the ringing of and use of cell phones and other Electronic Devices are prohibited. Out in the hallway. Permit holders and others have up to 7 minutes to present their case and 3 minutes for rebuttal. People affiliated with these parties must conclude their comments within 7 minutes, participants not affiliated have up to 3 minutes no rebuttal. To assist the board in the accurate preparation of the minutes, members of the public are asked, not required to submit a speaker card or Business Card to the clerk. Speaker cards and pens are available on the left side of the podium. The board welcomes your comments. There are Customer Satisfaction forms available. If you have a question about the schedule, speak to the staff after the meeting or call the board office tomorrow we are located at 1650 mission street, suite 304. This meeting is broadcast live on sfgovtv cable channel 78. Dvds are available to purchase directly from sfgovtv. Thank you for your attention. Well conduct our swearing in process. If you intend to testify and wish to have the board give your testimony evidentiary weight, please stand and say i do. Please note any of the members may speak without taking please stand now do you solemnly swear or affirm the testimony youre about to give will be the whole truth and nothing but the truth . I do. Okay. Thank you commissioner president lazarus and commissioners one housekeeping item we just received a withdrawal of item 6 appeal number 1014 dealing with an alteration permit that matter will not be heard moving to general Public Comment is there anyone that wishes to speak on a matter within the boards jurisdiction not on tonights calendar seeing none, item 2 is commissioner questions or comments and commissioners. Id like to wish our missing commissioner happy birthday today. Okay. Anyone else. Thank you. Is there any any Public Comment on that item . Seeing none, well move to item 3 the boards consideration of the minutes important the august 12, 2015. Additions, deletions, or changes dleekz to the minutes if not may i have a motion to approve. So moved. Thank you. We have a motion from commissioner Vice President honda any Public Comment on the minutes okay. Seeing none commissioner fung commissioner president lazarus arrest commissioner wilson thank you and commissioner swig is a absent so that that motion carries 4 to zero item 4 a jurisdiction request for santa fe avenue we have the requester taking the jurisdiction over the permit application issued 0 on may 22nd the appeal period ends and the jurisdiction request was filed on august 10, 2015, the permit holder to remove two residential Living Spaces for storefront at the ground floor and rove a stove from the first floor and the basement level the street floor level to be returned to commercial use with the application well start with the requester please step forward. You have 3 minutes to present our case to the board. Thank you. Well as i stated in my letter my landlord never contacted me to let me know he was seek a permit for demolition if i had known i would have begun done a. Could you speak directly into the mike. Sure i received no notice from the Planning Department had this is a requirement for the code the Apartment Building is registered as africa rh2 two Family Residential two addresses 6865 and 3 built in 1908 and under rent control my landlord previously. Im sorry to interrupt you it came back came to my attention is there someone representing the landlord okay commissioner fung thank you for brooishg it is if you could stop the clock he might not intend to be here would you want to continue . Why dont you finish. Okay my landlord has previously requested a permit to diminish demolish it and turn it into a storefront none of the other units many my building are effected i believe the permit should not be granted because the entire building is registered as residential not commercial so is cannot be illegal turned into a storefront built in 1908 and it is a rent controlled building if any landlord forces me to move out of my apartment this would a illegal move to make it a storefront it is registered as a reciprocal and would constitute an illegal eviction. How long have you lived there. 3 years. 3 years. As it you. I have one roommate. Thank you. Mr. White horn the permit holder brief indicated he was going to pull excuse me. He was going to do have this permit. Cant move. And reissue it so you can appeal the full permit instead of asking for jurisdiction. He did say that he sent that letter as i said he got the proof of the permit on may 22nd i founded on june 17th it was about two weeks after he sent the letter i was pretty much behind the game i didnt know i had no choose to file regardless. Okay. A good clarification on the building so mr. White horn thank you you can sit down anyone on behalf of the permit holder well like to hear from inspector duffy. Yeah. Mr. Sanchez as well. Connect correct. Scott sanchez Planning Department the property is located within a rh2 Zoning District the permitted to remove a between didnt trigger a be neighborhood discretionary review authorization and possible removing it the jurisdiction requester raised concerns about the unit may convert to the permit indicates some of the print shops and on the two dwelling units and given the fact within an Residential District would be concerned because any there could have been a commercial use permitted and it would have continued on providing concern conditions but to restore it the location will not be permitted under the code well have concerns and were not opposed to the board taking jurisdiction to investigate this further and the permit holder intend to withdraw the permit that would be probably better thank you. So one question two illegal units he wants to remove one. The permit shows that it says the existing legal use is two dwelling units and the print shop and the two units it is removing two illegal units on the at the unit 665 first floor commercial so we have concerns what that goes to and the concerns to return to commercial space per photo and planning land use approval i think we need more information it is possible that maybe permitted but if it is more than 3 years then the nonrestricted performing band has not enough information at this point to say the permit was properly issued. Mr. Duffy. Good evening, commissioners joe duffy from dbi i kind of agree with mr. Sanchez in that i havent seen any drawings or the plans not sure what theyre talking about on the ground floor but theyre indicating someone is indicating two residential units 665 storefront and basement and then the basement per 817 is an administrative code we use for commercial occupancies theyre not saying final until the appellant has filled the basement it is unfortunate that the permit holder is not here to answer questions probably looking at the plans would be beneficial and im sure if it came with a visit to the property we may have to do as well just to clear up what it is. You know what the status of the permit is at this moment. The permit is issued i did not check the history but if the applicant wishes to cancel it with dbi no problem and get a refund it takes a couple of weeks for this to happen weve not received that not that im aware of. Thank you. Any questions okay any Public Comment on that item . Okay. Seeing none commissioners the matter is submitted. I have a question i think so their concerns about the permit this is a jurisdiction request i dont know if it meets that standard or not in terms of notice to the occupant obviously i dont want this mr. Sanchez if you have an answer. Thank you Scott SanchezPlanning Department i think so our concern how to applies to the sidewalks before you separately the jurisdiction requester has raised concerns about the permits well investigate in this matter but certainly on first review there could be a permit if we find a flaw they could cancel the permit and require the corrective action. The question becomes was the city caused the applicant the appellant to not get proper notice i dont know if this is the case. Well, if the permit allows something i mean it is unclear pa what is available now it may offer something if at all possible requires a conditional use authorization and whether or not a notice was done more fatality flaws. If it is band for 3 years. Exactly to restore a limited commercial use if band for 3 years with a conditional use authorization to reactivate the use thats the concern we are supportive of the jurisdiction request to allow time but separately if it is denied well investigate the matter. I dont know if this is a question for you or mr. Duffy are you able to suspend the permits. Weve done it before. Well perhaps without having enough information we could continue and the development of any information that either planning or building needs planning, of course, can act on its own with respect to this permit holder. Mr. Duffy would like to sorry commissioners just wanted to add in the cancelation of the permit is probably option because suspending the permit creates appeals on the suspension and if the permit holder wants to cancel the permit maybe it maybe indicated to the office that was what they wanted to do i can accommodate that we havent done inspectors so if the permit holder wants to take that permit away and not do that this was the best solution. The problem hes not here we dont have any assurance that is what he wants to do. So shall we continue it. If we continue this is a jurisdiction request that means we could. Do you mind commissioners, if i ask the appellant a question. No. Could the appellant come back to the podium please. Mr. White horn. Two questions, mr. White horn one in the permit to remove two illegal units is there another tenant that be affected or is that space vacant that stays space is vacant that was the x landlord son. Is there any work that was started. None whatsoever. Can i add one more thing. No actually. Okay. Whats the best course of action. Im going to ask to continue it or to allow for the jurisdiction request. I probably am leaning towards continuing. Okay. Make a motion commissioner fung. Move to continue this madam director. Do you want to continue it particular to allow the departments to do investigation or thinking the permit holders will come forward with more information. Ill expect both to occur. Okay. What do you think october 7th . That is actually a very full calendar with. November 14th. Yes. Move to continue this case until november 14th. Okay so theres a motion by commissioner fung to continue the request to october 2015 to allow time for a dbi and Planning Department to investigate the status of permit further and to ask the permit holder to provide more information on his intentions is that the goal. Yeah. On that motion commissioner president lazarus arrest commissioner Vice President honda commissioner wilson arrest commissioner swig is absent that that motion carries 4 to zero mr. White horn if you have any questions get in touch with us. Next is appeal number 5 versus the department of building inspection with the building approval on pen people avenue protesting the issuance on june 15th to add a permit to erect a building for a 5 story with 14 hundred square feet of a i need to make a disdisclosure i have an existing relationship with reuben, junius rose and ive retained it as council and reuben, junius rose representation is appearing before the board will not have any effect on my decision today. Well hear from the appellant now you have 7 minutes. Good afternoon i need guidance im the appellant i understand we need 4 out of 5 votes and Going Forward id like a 5 Board Members to hear my case which do we have a fifth member here. Theres never a guarantee to have 5 on a given evening so if i were you id precede. Im sorry, i cant hear you. Theres envelope a guarantee on a given evening to have all 5 members here we encourage you to state the merits of your case. Id like to address 5 Board Members and whatever there is 4 out of 5 you know id like. The standard procedure is that should be the discussion among the Board Members need where the additional vote would effect the outcome well continue it otherwise well precede it here. Did you understand his point. So mr. Gonzales the point is if the boards missing member the vote of the missing member makes a difference in the procedures little board will continue the merit matter and theyll review the video what another procedures to participate in the final vote but they would like you to proceed. Ill precede anyway . Yes good afternoon im Robert Gonzales mooens live on pennsylvania avenue 25 feet from this project one block away ive first time learned of this project in april 2014 and filed the application on may 2nd the developer makes allegations i want to respond to briefly on page 1 paragraph two he says i misunderstood section 311 and the discretionary review authorization process and quote projects that may qualify for a variance for certain planning code requirement as in the case with the projection garage door are code compliant for the section 311 unquote he provides no authority for much exception, however, the Planning Department says the planned are not complete with the code compliance and put the project on hold and told the developer if we wants double doors seek and get a variance on page 2 the last a pagers and similar soundproducing Electronic Devices are prohibited at this meeting. Participate the develop quote the only changes those requested by the appellant and underscores requested by the appellant ive not asked forces changes on the contrary it is clear quote the project should, scaled down in keeping with the neighborhood characterization it would be of interest to know what the developers makes no notice of the planning requirement which ordered all the changes 33 he retired to in the developers brief i requested no changes whatsoever as i said in my brief all Residential Construction in San Francisco must be in compliance with the planning code at the time of the 36 notice on april 2nd the proposed project was not complete or considered code flient on april 2nd the Planning Department was without planning Code Authority to send out the notice but did so in a direct violation of the planning code and making the notice void the Planning Department can use its discretionary powers this is discretionary review authorization is premised on the existing existence of a quoted flient project that didnt exist with that on august 7th or october 9th or any other time during the process on october 9th the department did not have any power over the noncompliant project on august 11th the department sent the project sponsor a notice and plaza played a hold on the project the department ordered the application revised within thirty days and if not the Planning Department threatened to cancel the application as for the 311 notice on april 2nd the Planning Department was out planning Code Authority to order any revisions new plans were filed open november 25th i was provided hard copies on october 9th the notice for discretionary review of the april 2nd plans was called before the commission i argued again, the project without notation the Department Took discretionary review and ordered it without conditions and ordered the permit some weeks after october 9th the department had a dr ruling and paragraph 5 it states quote with the proposed notifications the garage entry would be code compliant and allow for permitted landscaping isnt setback the commission admits the project didnt comply with the planning code and so if never compiled with the planning code the commission if have the authority to use discretionary review on october 9th there is a difference between the plans of september 25th the april 2nd plans never met the standards of planning code the september 25th plan has 20 pages of new plan and i represented as meeting the standards of planning code how have those new plans are not a notice to the neighbors the new plans are not in compliance with the code theres a privacy violation it is violated by the revised fourth floor deck that has a direct view into my master bedroom from 25 feet away in conclusion id like to say that board of appeals should confirm the Planning Department never had the authority to exercise any time and the project plans were not because the project plans were no according to to board of appeals should deny the application of june 12, 2012, 2013 i is you to do that may i have another minute. You have rebuttal also, sir. Thank you. Thank you. Well hear from the permit holder now. Good evening members of the board tom of reuben, junius rose here on behalf of the appellant also with me the project sponsor larry and our architect jeff were available for any questions you may have i just like to make a couple of points in the materials we submitted to the board first, this section 311 and the discretionary review process were both proper under the planning code and were consistent that standard Planning Department procure no new section 311 notice was required typically in the building envelope is expanded in any way a new notice is required thats innovates the case here it is proper for the Residential Design Team to review the frontage project for design issues that is what happened the rdt considers the issues of its own and issues race by the discretionary review request which in this case it did. Variance are available to project sponsor those are considered after a section 36 a notice is issued in this case we considered seeking variance but instead decides to modify the project no variance were needed this section 311 process worked exactly as it should the appellant had ample opportunity to weigh in concerning the project he communicated significant amount with the project sponsor and Planning Department staff several the changes were you incorporated into the project the Planning Commission had a hearing on october 9th considered the project as a whole and considered this specific issue of the 311 notice i think we can agree theyre the authority on interpretations of the code and Planning Department process they considered this issue and decided the section 311 notice was proper the Zoning Administrator also determined that the notice was proper as the dr procedures im not the he can weigh in with that, ill conclude we urge the board deny the appeal and again, were available for any questions you may have and thank you for your time and consideration. We have a question you indicated you had incorporated some changes request do by the appellant i believe you said he never made in convicts requests. Among his requests were the initially double proposed garage door be a single this was incorporated he asked for more landscaping isnt front that was incorporated and he and the adjacent neighbor requested that the lightwell that was expand at their request the Planning Department asked for a 3 by 5 dimensions lightwell we actually provide close to 5 by 8 in that lightwell. How were those requests made in hearings or writing. After the 36 notice was issued the appellant submitted its discretionary review request and in that request he enumerated his concerns with the project we then respond to those and the rdt evaluated those as well. Okay. Thank you. Mr. Sanchez. Thank you Scott SanchezPlanning Department you dont know i dont think there is too much to add on this item because the notice was subject to the process through the 311 neighborhood notifications and the question of hearing and being appealed to a hearing on the Building Application the project is code compliant the appellant raise concerns of the 311 notification which they respond to by filing a discretionary review having a full hearing by the Planning Commission the Planning Commission dont care the discretionary review added minor tweaks and ultimate that was approved my understanding the appellant wants you to deny it essentially send it back through the process for a new 311 notification to the same project can presumably be approved by the Planning Commission in if a new discretionary review is filed by the appellant i think this matter has been properly vetted the 311 notice went out perhaps issued a bit premature and didnt have our review comments and made revisions and the changes would not have triggered a new notice in and of itself theres a process this as been appropriate and i believe the commission was within their right to have a discretionary review heather and not vetted to the Planning Commission under 311 as your discretionary is not delegated do you under the 368 for the tax code i think they properly had the matter before them and you have it properly before you and alu youre finding the project is code compliant and meets the guidelines with we respectfully request i uphold the discretionary review on this matter ill be happy to answer any questions. I have several questions. The by way of it is kind of difficult to go into our website and look at it profess hearing as of sfgov i dont know why this is neither here more there. The webbed was down today but difficult to look at sfgov video. From the website anyway in terms of i read the staffs dr analysis what do the commissioners say about the scale of this building and the inspection. I dont have quotes but report from the dr they ultimately took the discretionary review and they where i reside that the stairs near the Property Line be moved to the external and the windows have to be meet the requirements those are the two concerns of the intrusion into the rear with the stairs which were required to be made internal. Was interest any discretion and hearing this building a larger and taller than those surrounding it. I unfortunate was not at the hearing i cant repeat it other than they approved the project. Perhaps you can run through the changes that occurred the drawings that were provided shows the Double Garage door. Uhhuh. I believe three or four items changed the lightwell. The staff outlined that in their report as the that the project was revised for a 10 foot wide compliant door so i cant explain why the project sponsor provided plans that didnt show that. It also shows that the ground floor and basement occupied areas occur right after the double car garages so i presume there are changes there. Any other questions i can research for you. Are you finished commissioner. Why not you go ahead and are they at the max density for this particular project. Yes. They are. And the other question the rent representative for the approving or disapproving the revised plans from april to september are completely code compliant with no variance. Thats correct i believe the variance were filed at a point in time but not sure that is pursued. Commissioner. Why not hear the rest. Thank you. Thank you anything inspector duf duffy. Commissioners joe duffy guy i didnt hear any Building Code issues brought up i think the permit was reviewed properly by dbi through the proper channels where the Building Engineers planned checked im sure reviewed it thoroughly i dont have any questions. Any Public Comment on this item . Please step forward. Good evening president and Board Members im shawn i live across the street from the the proposed project and im also an architect ive practiced in San Francisco for roughly 27 years and when i first started practice a couple of notification process started with the interim controls in 1988 it was codified with the 311 process and the 36 process has a simple basis when the project is essentially presented to the public through the notification process that it has been reviewed by staff and that it meets the Design Planning code this is the public trust that this project and all projects need to meet the Design Standards of the code prior to 36 notification that way we dont have crisis when it comes to arguing whether or not a project meets the code or not im troubled with the almost casual nature that this issue has been treated with because it truly is a trust issue and if we dont have projects that meet the code when the notice goes out the 0 notices dont mean anything their invalid not worst the paper their sent out on and as architects we go through a lot of heartache to try to get the projects code compliant through the process one of the main things that happens with the planning process rdt the Residential Design Teams they typically with new construction review all projects prior to notification going out i mean rdt they review sometimes really minor issues and planners bring it to rdt this project never went to rdt by 311 and i come back to the 311 process it never really happened with this project because a code compliant project never legally went out to the neighbors and so the recommendation with this typically is renotification ive had to renotify on projects before if theres a dimensional error on the plans or a planner missed something and it wasnt right the notice goes out it gets renotified ive had to redo preapplications this one clearly has the mraif not limited to in the may 28 and august letter it if comply with the code. Your time is up any other Public Comment . My name is Stacey Morris my husband and i live on pennsylvania next to mr. Gonzales were kind of late to the game we didnt understand the process and procedure i received a card in the mail saying this appeal was on i wasnt aware of everything leading up to this point well on to the character of the building not fit into the neighborhood there are any buildings including ours this doesnt fit with the neighborhood it is the wrongs building for that space. Thank you any other Public Comment . Seeing none, mr. Gonzales you have 3 minutes of rebuttal madam president and members it is voigt section 311 is described as prematuring that is to say this project had violations with the planning code 311 says very clearly that if it violates the planning code has a violation and Double Garages no driveway imprint the landscaping was nonexonerate those are planning Code Violations right on the plan that says if it is a violation dont send out a 311 notice the department knew the project explicit comply with the planning code they have discussions about the double doors the department hold the developer you can only have one door the developer says i want two this conversation took place in september of 2014 and discuses it until april 2nd when it sent out a 311 notice those plans didnt comply that was a deliberate act to violate the law now i got this notice in the mail i didnt know i looked at the if i dont take action the department of city planning will approve this monster project 25 feet from my house youve got to see it it the the ugliest i found the things in my brief i hope you read it the Planning Commission didnt they didnt discuss at all the height and anything nothing was discussed in my brief theyve heard me and want me to accept the plan and issue the permit after they issued the permits theyve put on the conditions so you know 311 is the law of San Francisco and how you build and it says clearly that residential new construction must they didnt say may or perhaps premature shall comply with the planning code it is mandatory. Ive got 30 seconds either the law assess what it is or those guys did away with everything me deliberately and intentional put out that notice and they said if i dont do anything theyll approve that and in the project they go and they send out nos and tells us i didnt get a notice and you better provide those because it is met thank you. Mr. Sunny 3 minutes. Just a couple of comments concerned about the allegations that somehow the approving or disapproving and department deliberately deceived the neighborhood and the public somehow the public trust was violated this project was just from the section 311 notice to the discretionary review hearing reviewed for 6 months and there was 6 extensive input including the appellant about the project we talked about the residential design theyve promised it and as the Zoning Administrator state this project was excelling reviewed and the public trust was maintained thank you. Mr. Sanchez. Thank you Scott SanchezPlanning Department. Yes. To reiterate again, the plans as they went out to notice they were sent out and prematures the correct word to use obviously it was required as the department noted in the testimony that review was performed and changes made to the project they didnt themselves require a notification did not shift mass around and brought the project into compliance with the code requirements those are the plans that were reviewed by the Planning Commission i do notice what is listed as told them a were not the plans reviewed by the Police Station their plans that predate the Planning Commission that show the two doors you may want or maybe the project sponsor can clarify that the plans were ultimately approved by the department and the Planning Commission are not before you. I have a question. Go ahead. Those changes occurred following the Planning Commission hearing some of them. So there were changes after the 311 notification the discretionary review was filed and oats concerns raised staff worked with the project sponsor to address those and bring the project into experience compliance and then tomatoes to the heather and the Planning Commission had additional changes and it would be revised future before staff approved that but the plans that were reviewed by the Planning Commission i pulled it up on our website the materials and docket shows a single garage door. Refreshing my memory if someone applies for a variance than the 36 can go out it is as soon as you have the hearing in front of you. Well tests general not a requirement we encourage the permit and the 311 notice go out prior to having a hearing or decision on the variance so that the public can be informed but, yes i mean, theres no way to read the language of section 311 strictly to say only projects compliant can go out but some projects are needing a variance requirement certainly the department make an error yes this shouldnt have gone out to 311 but the issues raised during the 311 notice about the code compliance were addressed by staff and other issues recommended to the unbelievable the size of the building and the privacy concerns those are not strictly code compliance i think so about the privacy but this has been reviewed by the Residential Design Team and found it to be compliant. You somewhat answered my question how often does this occur. Not often this was a team a member of the department there was miscommunication at a time. I think so this project has been vetted but you have a problem with the timeline. I understand and this is not the way the project should be processed. After the 36 notification unusual you want the project their discussing to be before the boards reporter and then this doesnt seem like it is quite there. There were issues about the code compliant thats one of the reasons we have neighborhood notifications there it happens from time to time maybe new Information Available that the project may not be compliant but in this case you know certainly there was new information we respond and brought the project in compliance with the code those changes doesnt in and of itself trigger a new notice not the dimensions changing having to renose because of dynamics thats not the issue the primary issue were the garage doors and the landscaping at the front those with provided meeting the code requirement and that action didnt require notice. So the appellant had mentioned the four story master scoot loobtd into emphasis master suit was that on the original plans . And i dont know exactly which window your referring to and maybe i can talk with the permit holder. I have a quick question the fact there was a dr hearing on this project allows for additional Public Comment correct. An additional moral limited notice for the discretionary review hearing and the for the purposes of this hearing essential the same radius as a section 36 notice. Thank you. I have a question, sir. Im the architect on the project the appellant mentions design changes regarding the master suit on the fourth floor. Correct. Whats the difference between the original drawings. The original design had a fairly consistent straight wall along that privacy the Property Line and during the dr request mentioned that there was a sargent at the neighboring property we felt should be addressed in our project so we setback that wall thank you position of their setback and then creating the lightwell we added that. They removed most of the windows and in the final review because what happens w what happened we have a solid wall so we pieshd the 411 by 8 and it seemed silly to have the windows we put the windows in and substantially all the views are kind of towards doirnl do you want we moved the internal lay out so two slots were there used to be a full window shown. Okay. Thank you. Unless there are other questions the matter is submitted. I have a question for council. Does the premature notice make the notice as a matter of law. Well, ill think if the premature notice was such that it doesnt have information that would inform the notice of what the project would be in terms of that somebody didnt have enough information to know they should protest or raise a concern then it would be a problem if theres no denial of an opportunity because of the notice ill say thats not a problem. It is a matter of whether or not a person was denied due process whether or not that makes a difference. Thank you. Perhaps question, discuss it on an issue by issue basis as far as my thinking i dont see that as a due process i think the project has been properly vetted not perfectly vetted but properly vetted in terms of being able to present what the impact is of the proposed to the neighbors and the community at large the there are two other things that are principle issues to the appellant one is the question of how this building looks at and ive resisted getting into that both in terms of my career at planning and my career here it is difficult to apply our aesthetic likes and dislikes on every project that comes before us im not prepared to tackle that the last issue with the larger issue for the scale of this building and the inspection within which it sits in terms of the neighborhood there are no doubling doubt that believe is taller the question is whether it exceeds the level of difference between what is exist and therefore ill think compelled to do something this is close im not sure if this is compelling in terms of trying to modify the scale but close. I feel the process was a little bit out of order by the main concern really is that the neighbors were able to express their opinions and those opinions were taken by staff and the department i feel that i would approve this project. Night i for the benefit of the commissioners ill read it to it sort of helps section 311 purchase the purpose of this to stash permit building proclamations to determine the capability and for providing. Nosenose of Property Owners and residents and neighbors for the proposed project and to address the concerns that may be identified it doesnt change what i said it is sort of laidback. Proper notice. Im inclined to go in the direction youve stated commissioner Vice President honda. Commissioners. Ill make a motion to deny the appeal and uphold it was properly issues and code compliant. Thank you 0 a motion from the president s to deny the appeal and uphold the permit on the basis it was properly issued on that basis that motion. Commissioner fung. Commissioner Vice President honda commissioner wilson no okay. And the commissioner swig is absent so commissioners that motion carries with a vote of 3 to one thank you so number of has been withdrawn and will not be heard well move to item 7 appeal Valley Neighborhood Association association versus the Zoning Administrator on protesting the owners on july 8th a request to resend revocation asking the department of building inspection receive four Building Permits that after further investigation the Planning Department buildings those permits were properly issued under the planning code well start with the appellants and id like to ask twhoefr is standing when the room clears to take a seat we need to make sure those hallways are clear for fire thank you for that is the appellant representative here please step forward this is your time to speak. You have 7 minutes. I havent filed out the speaker cards. State your name. Good evening Board Members im lawrence the current wanting of the hayes Valley Neighborhood Association. Would you speak directly into the microphone and raise it up if you need to. Launder the current president of the hayes Valley Neighborhood Association and we thank the board for hearing our appeal the hayes Valley Neighborhood Association commend that ace is a formal Retail Company such formula retail establishments are prohibited in the hayes valley transmitted compld it fits the formulas use as a type of sales establishment and has 11 or more on the sales establishment or local land use or entitlements located within the worlds ace state in their declaration of june 1st have 7 operations for the hayes street april 8th this declaration was the basis to resend the previously revocation of the permits for the site, however, reach showed that kitten ace has entitlements in place for at least 7 other domestic locates and even more internationally in the period of april 2nd it through june 25th thats exhibit a those local entitlements include the certifies certificates of occupancy and the domestic locations within their jurisdictions indicate their intended use as retail as the locations of the land use were already approved by april 8th in previous locations of Retail Businesses i refer to our exhibit b and kitten aces marketing clearly show their intention to be a International Chain fitting the formula retail on the kitten and ace website on august 4th they stated theyll open 1 more locations within the 2014 calendar alone each quote openly soon in north america unquote mentioned the length to a map with the street address to the stores this public announcements showed that kitten and ace are in the process of securing those locations exhibit c more over on their websites kitten ace. Org they character is themselves as a formula retail they fit the definition of formula retail in the planning code they meet all the criteria for the definition of a Retail Business in addition to the number of stores our local land use and entitlements requires the business maintain two or more of the features the standard device facade and standard sister color scheme and signage a trademark or landmark it has standardized decor and scheme and signage those exhibits are photographs and in addition 31 they have the word kitten and ace a trademark our exhibit e based on the photographs of the kitten ace stores and the trademark operating application must be concluded they are formula retail. Future the planning code says the burden of proof is not a formula retail we feel kitten aces intention is clear they have awning uncontinual intent to meet the formula retail prior to their application for you hayes street matt haney ive planned and secured locations statewide and in the process of meeting hiring needs clear from the announcement of the upcoming locations whether or not they were formula retail at the time of the permit is mute theyve already in place a clear plan to meet the criteria for the above reasons the hayes Valley Neighborhood Association contends it kitten ace is a formula retail under the criteria of the planning code the hayes Valley Neighborhood Association requests the board of appeals to run state the rest indication of their permits thank you. Thank you. Thank you and well hear if the permit holder. Good evening commissioner president lazarus and members of the board im the ceo of kitten ace i wanted to tell you a little bit about me and my company i penalty the last 5 years companionship a cause that cause is the shifting of capitalism away from if the Profit Education and towards a mandate of delivering associate back to the communities in nodding i founded an institution of a benefit corporation who mandate was to help social minded businesses grow in 2011, i delivered a talk on the generosity and business and not living with governance in the face of being business i produced a documentary to promote the cause of community toiftsz entrepreneurs and that film generated hundreds of thousands of viewers i was privileged to be honored by the nonprofit of the b corporations with the 2014 b korea champion award this was my cause that the members of the communities are advocating for today im the cfo of the company it the h bs or organization is protesting i joined kitten and ace i was given an opportunity to build a Community Business in our short life weve invested in the communities and this will not change today and this will not change tomorrow it is a privilege to be part of this conversation we know that is an important one we do not take it lightly were approaching that this the respect and we as a Corporation Corporation are ambitious we share the same values the laws are clear by your definition of the law kitten ace with in compliance if the law dedicates right and wrong were right by your definition kitten and aced was not formula retail we followed our rules whether or not today you want to change the law we respect the process and respect this conversation my diver to was founded on principles of due process we would like to be part of Hayes Community id like to invite jason to speak on the legal matters. Good evening carr here on behalf of the appellant our legal arguments are and so forth from the brief so we respect request the board of appeals uphold the Zoning Administrator determination didnt qualify the formula retail with the Building Permits on hayes street were issued bids Planning Commission on april 8th lets be clear thats the relevant date the planning code establishes a bright line for what is or not formula retail use that line was drawn by the elective branch in 2347 after multiple hearings of 16 months the planning code is now clear that only locations that are in operation or local land use or permit sdwiements are approved counts the thresholds of 11 locations now worldwide examples of local land use entitlements and permit stimulates are conditional use authorization and Building Permits for the tenant improvements thats the case here as explained by the Planning Department and various Staff Reports regarding then pending 2014 formula retail legislation and an entitled or permitted location is one that has been approved by a local jurisdiction the prototype establishment would have invested of time time and money in operations and further entitlements and permits are Public Record and can be individually look at pursuant to the sworn declaration that is independently verified kitten only has 7 locations at the time of the permits issued for hayes that includes the trailer so thats a conservative number and in addition a Building Permit for one other location the total is 8 well under the 11 threshold the current planning code is clear that mere job postings and marketing and stayed goals are not relevant to the test of whether and when a business becomes a formula retail use kitten ace didnt qualify when the permits were issues for hayes street so the Zoning Administrator determination is supported by the planning code and should be upheld by the board of appeals thank you for your time and the variance kitten representatives if you have any questions. I have a question. On april 8th how many leases were secured by kitten i didnt see. Ill answer that question but ill emphasis that is not what the planning code relies open it is over the 11 will threshold. Were you planning to use that those leases for storage. I doubt it kitty but in 2014 the planning code was revised to clarify we do not count that instead it should be relied on the stores in operation for which an entitlement or permit. And the other question is since San Francisco is the the place that people want to be and people with Large Companies plan to be here why wasnt the conditional use looked at prior to since this was questionable. So theres no discretionary review authorization component to that. Okay. Okay thank you. I have a question as well understanding that april 8th is the relevant date you said there were 8 locations and. So 7 locations and including the trailer which is just for marketing purchased we wanted to be conservative and additional leases but as relevant and okay. In addition they had one Building Permit for a location not opened. Okay. So thats 8. Just users arbitrary has h that number changed since april 8th. Yes. Theres no dousht that kit new wants to succeed we believe the question before the board is whether or not the Zoning Administrator errored or used his discretion. Understand. Well hear if the Zoning Administrator. So it is leaked wven the hayes valley rezoning within the rezoning theyre prohibited no process that allows legalization of this use if it were determined to be a formula retail use the subject permit Building Application there are 4 ive requested a revocation in february and january of this year those were approved an april 8th and the contradiction began and i was informed by h n a i was informed of a company killing kitten i was not familiar i did research on the website found information that appeared to indicate there they would be a formula retail use as defined under our permit requirement as state of mind e statistics the code was classifying the trigger what you count for the 11 stores and that is the local ludicrously approval prior to that as the result of the decision of this board i had implemented an interpretation that triggered it based on leases but that was rescinded and moved because of the code change in 2014 which retrirptd address clarified those the information i found was not evidences of operation of 11 or more stores but the fact they were hiring for appeared to be 11 or more stores bans the information the cities are more than a dos dozen locations my thought process if their hiring they must have stores to put those workers in and that youll only get that for a land use approval i responded and responded swiveling because of the fact that the use would be prohibited within the district no path to legalize if it was a formula retail use i appreciate h race this with a passionate protector the neighborhood and bringing it to our attention substantially it was appealed by kitten to this board during the process they provided materials and i did have communications they provided to me evidence which in my mind established that at a time the permit was issued in early april not a formula retail use and didnt have land use approval or have an operation leveling or more stores anywhere in the world thats another chapping since this was last before this board when you heard made a decision on its case we count international now we do with that information they withdrew their appeal and i issued this resending of the revocation request now appealed to you i appreciate the research that h b and a do we did the research and i had our staff contacted various municipalities to try to find if there was in fact incredible and we couldnt find errors in the materials all indicated that at the date the permit was ordinary they wouldnt have tailt its a met the thresholds i didnt august with h b. A. There was a formula retail use been on the website 22 stores in operation not including others locates they may have permits for theyre clearly a formula retail use and their attorney said they have pirgsz early on to become a formula retail use but at the time the permits were issues they were not issued in error at the time they compiled with the planning codes substantial this use would not be allowed but at the time, they come plied with the planning code with that, im available to answer any questions. I think we have them. When you said the staff researched the municipalities you checked with everyone. I had them reach out to as many as they could some were not responsive to our letters and phone calls but i did not find anything and it would be reinforced by the materials by h b n a and the theyve reached the threshold shortly after the permits but i havent seen any information theyve exceeded threshold. Im surprised you took the action based on what h b and n gave you and didnt reach out to the permit holder. Well, certainly you know, i did rock, ray react but felt there was credible evidences and they can appeal and show the evidence the burden is on the permit holders to demonstrate theyre not formula retail and i thought that was enough information to put that burden on the permit holder to demonstrate this it is certainly not a perfect process and not the first resend something ive done. Not the perfect process today laughter . But you know certainly could have played out in different ways by there was the way of due process i understand. That was mainly because of the decided by this board correct. There were many decisions so you get to clarify a question of at least whether theres a permit entitlements hopefully, the jurisdiction has an online permitted information or go to the municipality or someone that is responsible or responsive to give us that information but the leasing information is impossible to verify so if someone has no leases we cant verify that that is one of the reasons will well support the changes made. The second question whats the percentage of people that didnt respond that when you sent out the verification letters. Well staff contacted them by phone maybe half more than half but what i had them focus on those that had listed the job announcements prior to our the issuance of the permit so we looked at preliminary focused o those with job announcements prior to april 8 and there was we didnt have information that came back we had enough to say there is no way they could have been formula retail. Thats my second question what was the response regarding hiring for places they dont have. Ill let them address that that is how they like to find out what is going on. Sure let me give you a job we dont have. Theyll hire a store manager and found hot locations but ill let the project sponsor talk about that. And just in case thats not clear the relevant date is april 8th correct. The four permits the two permits that were issued an april 8th and two issued later in the month those were signed the april 8th were the demo to establish the retail use. Just a technical clarification when you say issue thats when we pulled the permit. That was correct the department of building inspection pulled the permit. It doesnt apply to the permit. It would have been a number of days but initially filed in january and february. Thank you soak 0 inspector duffy has indicated no questions so well take Public Comment before we begin Public Comment i want to make clear officers and Board Members of the hazel Neighborhood Association are only lout to speak under the times by the parties but other members can speak under rebuttal so with that, in mind can i see a show of hands how many people intended to speak under Public Comment if you havent filed auto a speaking please do that before and after you do that and hand to us to reflect our name in the minutes and cocoa line up on the far side of the room to get to the Public Comment process faster than that would be helpful and whove want to speak first and commissioner president lazarus how many minutes. 3 minutes. Whoever wants to speak please conforms. Madam director do you want us to mention who they work for. Employees of kitten ace should refrain from speaking during Public Comment so the boards rules ask for the representatives of a party speak on the times loaded to that party. Thank you for that clarification if you want your comments to be considered item evidences. Good evening my name is perry im a very artist i was born and raised in the richard district of San Francisco and recently have had a great experience that kitten ace that started with a pop up show in San Francisco i got and then a. M. Saying additional to have our art at our shop before i began they invited me over to a superer club dinner i met others artists and had a local chief come over and a great dinner and conversation and you know after that my art was installed in the marina store and i had a interview with them and kind of exposed on their website photographerer from santa cruz that was a great experience i didnt have any major quote quiet retail store so interested in being an artist so on their behavior by pointing out out a formula retail thats the option of what necessary are theyre interested in exploring the locals and communities around them and showing off what exists in San Francisco. Thank you. Thank you. Next speaker, please. Hello, im mr. Sanders work as a author from and home in hayes valley moved to the neighborhood in 2002 and returned from castro this is the hayes valley residents as neighbors that gridlock value the formula retail band wear grateful to voice our concerns regarding the neighborhood were not here to define what local medians but here to see in kitten fits within San Franciscos priority policies with the general plan and compliant with the hayes valley retail i believe not open any account will change those facts kitten ace is not locally owned j. J. Willingly stated kitten ace not intended to be a small or medium sized business the founders referred to them a retail force in the gloriously market and in ceo words within 5 years becoming a global planned brands and bringing in 40 millions in saddles by december 2016 that last finger comes if an article in the New York Times but the author researched before they filed their proclamation therefore been their tension all along to immediately achieve a big formula retail and additionally, the employee count rorsz theyre not a small or medium sized business they have more employees for the upper limit of medium sized i value hayes valley and when i settled here a sense of community fostered by small merchant and relationships kitten ace has noted conducted in a way to respect the communities more fosters good relationships with the residents i respect ask the board of appeals react to prevent the openly of kitten ace or any where with else of the formula retail band. Thank you. Next speaker, please. Hi, im cindy have a Retail Business in hails for the last 20 years and im here to talk about the pulse of the neighborhoods and i have regular conversations with neighbors that live in the neighborhood arrest people that come to shop in the neighborhood for many, many years at this point and the reason they come for the uniqueness of the neighborhood they appreciate the nonretail formula chains in the neighborhood and up in arms about what is happening now we need to protect the Small Businesses that are already here that have worked so hard for so many years to make hayes valley what it is 20 years ago kitten ace wouldnt have wanted to be neighborhood people have work hard to make hayes valley what it is a community we know the neighbors and residents and were a community all intervened and care about the neighborhood and we want to keep it Small Businesses that care for the neighborhood thank you very m h much. Thank you. Next speaker, please hi, im stephen congressmen one of the partners of a retail store on hayes weve been there 13 years it is a wonderful neighborhood part of the neighborhoods for a very long time every part of that neighborhood brings something of value to the community there are will be two things the letters of law i cant speak to but asking can speak to the spirit of law and kitten and ace is not following the spirit of the law whether they meet the date i cant speak to that but the spirit of law indicates this is not a place and im a little bit surprised when the ceo spoke he said hes into supporting the businesses and doing business right one the reasons that not bringing formula retail spot neighborhood rents will rise speculation has been rents theyre paying a high number i dont know that for a fact but we heard twice of what were paying now part of the challenge of bringing up this the rules are we dont bring people that can basically knock the rest of us out the neighborhoods thats one piece the letter of the laws opens the door for any formula chain for any company that wants to open a chain theyll start in hayes valley it is a great place to start and youll have less than 11 to part of this opening the door in 10 years well basically be the incubators for a lot of formula Retail Stores from my prospective this is not what the neighborhood needs in the spirit of what kitten ace says theyre about the neighborhood thank you. Thank you. Next speaker, please good evening. Thank you. First, this is truly an honor to be included in this conversation in this great family i come from germany it is great to be part of the country and see the exclusiveness i want to raise two questions first is kitten ace formula retail and then the second one is more asking the board also what is the face and future fabric of hayes valley were all envisioning i myself operate the store been there on hayes and a second location in hayes we employ 2 formulate and 2 part time people Everybody Knows that it takes a tremendous amount of time for negotiating the lease and getting the permit and staffing and opening up today is the ends of august everybody agrees that takes 6 to 9 months that puts us into a timeframe of february like informative november of last year obviously it is to the board and also to decide how the law works we shouldnt fool ourselves kitten ace is definitely a formula retail and 25 proximity locations and planning another 80 locations at the end of the year so Small Business has 45 locates why im i repeating this this is important for the future fabric of hayes valley were independent merchants we operate more than 50 percent plus margins and have 20 percent that goes into rent and three percent that goes into stocking that leaves us about 4 to 10 margin the key of formula retail it is a errors of unidentified merchandise that increases the average forwards profit up to 20 and three percent that allows to pay much higher represents and power not not situation of kitten ace how do you see the street evolution and he think two great powers i want to remind we have been first one is a recent fillmore street were basically, all individual merchants are disappearing and restaurants pushed to the side you feel if youre walking through wloom details and not interesting the same will happen to hayes valley if we dont prevent it what is more for the decisions counted for 4 to 10 years when our leases need to get reviewed so you look at the street that be basically like grant or are not interesting and not any more for the residents thank you for your time and consideration. Do you would you care to state your name. Christophers. Thank you. Next speaker, please. Hi, everyone im tracey brown the owner of a business in hayes valley the is that a there is so much brought up i can reiterate the press information that was put out by kitten and ace wanting to be this global force is not what hayes valley is ive only about in operation for two years i can talk about the clients that come to my establishment how cute and acquaint the businesses and restaurants and i also want to say that having the value of being local is something that every business should have life i didnt see have opened up stores for people to be involved if the design of their jeans but my background before i the this work i actually was have a background in Community Planning i run a noted been here for 15 years one the values of Community Issues talk to the community about it i talk to the merchant and even when they had the opportunity they knew they were doing to meet the letter of the law not if the intent not an approach to you know the committee for hayes Valley Neighborhood Association with the Business Group i happen to be involved if the merchant my partner my spouse will tell you i wanted to open as a nonprofit but it just seems i dont know what im saying if you want to be local and want to be part of the community youll actually speak to the continent that youre coming to thank you. Thank you. Next speaker, please. My name is lauren im a merchant on hayes street been a merchant for 13 years one location i dont have aspiration to be a global force what drew me to hayes valley was the fabric of the neighborhood and the if a, it was local merchants but i think the important thing is intention and you know the first intention what was the intention of the code that was written i happen to been part of writing that back about 13 years ago when starbucks want to come into hayes valley they demurred over after the neighborhood raised quite a fuzz of us and said we respect what the wishes of the neighborhood and not going to open up in hayes valley but through that a number of merchants and local residents got together and we wrote what become the formula retail legislation that is now not only citywide on certain levels but you know, i think has taken hold donation widely and San Francisco leading the way so the intention was to keep the neighborhood unique and primary, you know, locals independent merchants the intention of kitten ace they want to be a global force at the moment that they applied for the permits you know the letter of the law and what was other than the table was within compliance it sounds like but the question at that moment by clearly it is of the their intentions is not no keeping with the intention of this legislation was which is to keep the neighborhood independent and local and unique and something that you know is not replicated on every shopping street country so i again you know theres no question about lets say their ideas of supporting local artists and being a Good Employer so it starbucks i know you cant august theyre a well run company that treats their employees right but not the kind of business now more is kitten ace is wanted and welcome and has the right to be in hayes vall valley. Sir, if i care to fill out a speaking. Fill out a speaking okay. Thank you. Thank you. Next speaker, please. Hello my name is carr rein in hayes valley since 2003 my Business Partner and i first wanted to open a shop in hayes valley we looked at the neighborhood like fillmore and Chestnut Street when you first came to hayes valley it was unique and vibrant we couldnt see opening a store anywhere else how 12 years later our hayes valley is diverse and attacking people if all over the country and world thats due to the hard work of every Small Business owners to making the place unique so allowing the chain store in hayes will leave the neighborhood in a path of no return when other chain stores follow ace our neighborhood will change and people that like coming here will stop coming to hayes when necessary, easily shop for the same stuff added other places i ask the board to reiterate the Business Concerns if we allow the chain stereo that is traditional a chain store is a chain store what will be the future of hayes valley be thank you very much thank you. Next speaker, please. Hi, im jim ive also in hayes valley over 12 years now and the commercial district and the character of the merchant that is what attracted me to a neighborhood it is truly a wonderful and unique place that the merchants banned together to author with the city the chain store legislation it speaks to how important it is to our community it is important to note as one of the speakers said you know when you try to come into a neighborhood and be a Good Neighbor and reach out the community you think what reaching out to a Community Like the Hayes Valley Association would be something that one might do neither of the organizations was contacted so this is questionable point also discussed today you know is this the letter or the incidetef law we think that is the letter of law you dont hire people for locations you dont sign leases for all the characteristics of the store in terms of signage, merchandise and commonality. Speak to this is a chain all their public statements including were a nontraditional formula retail i dont care if youre nontraditional if youre a formula retail youre a formula retail in addition to looking at the letter of law look at the 81 intent there are other areas for kitten ace to relocate they have one no more unity street and union square a number of places that dont have the prohibitions theyll be welcome it is a special character of hayes valley were con intending be is being violated and a sneaky backdoor industry to get in before they reach their threshold and exceed it all of those reasons we ask your consideration and hope youll be revoking their permits thank you very much. Thank you. Next speaker, please. My name is pamela born and raised in the richard district a local artist never by a preponderance from a corporate retailer i want to ask do any of the local retailers have an ad in the September Issue of w magazine the answer no a very, very professionalable space in the periodical i can work and live in hayes valley for a Small Business im not the owner but serve and work with everyone here you know, i see them on a daily business and respect their hard work both the businesses i see them daily to insure their customers everything or everything is going well, they dont have the money of a big, big business you know San Francisco is a home to many i just do think they have the right formal for the neighborhood theyve aided under hypocrisy they started off newcomerly, however, their intention is clearly over all our eyes it is a sweet neighborhood and a small space left in the city where local artists can do our thing and see each other across the street and wave hi the worse that it can be this is the one thing it keeps your city unique and pure and true im passionate i dont think that is correct or right well be giving up our rights to give up what we have left to the corporate beast it is ridiculous to say, however, lets work with other okay thank you for your time. Thank you. Next speaker, please. My name is nicole bald ive worked in hayes valley for 11 years and been a Business Owner for 5 Small Community is such an important part of San Francisco and as p k said were watching it i feel like hayes valley is one of the late standing neighborhoods where we you know we get to be a part of it and the community is visible the tourists the people from other parts of neighborhoods you know they appreciate our sense of community and be open to them and what makes us unique were small and we all know each other and if we need something we ask our neighbor you know formula retail protections have allowed businesses like my own to stay open and the fear of being pushed out by larger businesses my concern didnt lie in how local my neighbors are there is an amazing mix of people from all over the country but how small they are so my voice is he heard just as much as tailors you know i dont have to worry about my rents going up and my career as a Business Owner will last more the length of my whereas thats one of the biggest fears our lease goes up and we cant afford your rent the neighbors are paying ten times more we are on so many levels important to stay true to the formula retail so we can all stay in business i dont doubt that kitten ace has the same values and he totally support the hulls of a business that wants to grow quickly i wish i had that hustle but my business is my one store alleys hazel is not the business for the hustle it is a multiple business across the city but absolutely not in hayes valley i dont doubt cushion theyll help to grow employment and neighborhood traffic but this is also a long term flare for Small Businesses i dont decide credit them put out those facts i just dont i think their assets to the neighborhood thats all thank you. Thank you. Next speaker, please. Hello im madeline ive already turned in my card i live there 25 years i opened open hayes street bra the freeway was torn down and been involved with the merchants for a long, long time and know the Neighborhood Association were a small neighborhood and it seems disingenuousus the way that kitten ace came in and filed out their plan i understand there is a flaw and intention and that has innovate been honored i agree with jim who said were not approached im on the committee for the Neighborhood Association and run the Arts Coalition and never heard from anyone they want to have local artists im here to support if there is a chance to continue to be the hayes valley that weve green to love thank you. Thank you. Next speaker, please. Hi im sorry bob anderson a resident of the hayes valley since 1988 i used to visit madeline ive seen the hayes valley grow in many ways when i first moved in my first day i was laying on the sidewalk we are or they were raiding the hotel from me its changed i live on van ness an area that does allow whatever people want to put there im constantly amazed of hayes valley with the uniqueness as an independent place to go im a bitten believer in slippery slope and it is how people approach those kinds of things ill hope that is something that people think about tonight thank you. Thank you. Next speaker, please. Hi there im ann im a triangle residents with my husband and a geographyer by training and ive been in San Francisco about 2 and a half years we love to shop in hayes i hear everything that is said about formula retail in all the stores but as someone that enjoys shopping it strikes with me when i here are hear the things youre getting the investment theyre trying to make in the community and the psychomentioned the status and the things their recognizing that hayes is special and tracing to make a contribution perhaps the small one person businesses i go into the hayes valley shops i turn over the label im sure the restaurants are sourcing theyre foods in San Francisco i wonder as an environmentalist what the motivation to keep out a successful chain over the us is a mix of small rain water that make the neighborhood vibrant so i ask you to support the hayes valley neighborhood and make the comments thank you. Thank you. Next speaker, please. Hi, im teresa worked in hayes valley for about 8 years in two different locations its my neighborhood im sad a company is coming in with an intent to be part of neighborhood theyre not part of the neighborhood as Everything Else said weve work hard to make it we can our neighborhood and kind of band together and i just weve worked so hard and have a company come in like this and potentially hurt the Small Businesses with our lsd is trying to raise our rents a friend of mine her business is closing down this month because the landlords is raising her rent she has to move her business in with mine to make it were making room for her im really sad and hope you guys dont let this happen. Is there any additional Public Comment. Seeing none, before we start rebuttal i want to give an opportunity for the subject pertaining to speak if someone is representing that person in the room it didnt look like it well start with the appellant you have 3 minutes. Here. Hi names a gale im Vice President of the hayes valley be Neighborhood Association and been listening to everybody id like to call out one point here im rogers our opinion that this is a formula retail use for two to four months in the advance the approval date to fill 15 stores and continue to operate thats existing it part of the retailers planning im an experiences global textile and professional many years and ive done business with formula retails that were rapidly expanding the kitten ace have a strong mill relationships to meet the production minimums and Global Apparels to coordinate the multiple store opening to distributor that vicinity a semi. Of simple plan to rapidly expand and the store count must include the locations it is the behind the scenes Global Production planning utilizing its store lined identified locations in each city and their scheduled openings must be confirmed in advance to meet the plans production must be planned and finances bans kitten ace their strategy of utilizing the already retail spaces vary in size and configuration allows to do you want to the architectural sites rapidly opening and eyeing that pink coloring with their hundred percent owned brand apparel counting the brick and Mortar Stores without the entitlements of opening in rapid subsequence is unacceptable it is an attempt to gain the system that was meant to protect the district that bans formula retail it is clear already opened and entitled or permits approved with the already sdierltd definition of entitled stores kitten ace exceeded the count on april 8th. Well take rebuttal from the permit holder. Carolyn chase again base on here on behalf of the appellant if the board has any questions the Zoning Administrator will be happy to clarify id like to im going to turn it over to ceo. Thank you thank you, everybody for the feedback we appreciate it i know were characterized by an ominous forceful of secrecy and mix up the fact weve never been anything about transparent about our ambition and quarry throwing around words like global force like it a bad thing if you have alignment towards being an International Part of a Community Self speakers say they care about the neighborhood we wouldnt be standing here if we didnt care about the neighborhood and also the two rows of employees that are local san franciscans we dont import staff we hire locally we also have a lot of merchant in the community that are supporters that have equal ambition so what is local it is so simplicity we consider ourselves embedding into the areas but kitten and is committed for more a significant commitment of the designs are create by the artists yes, we in the future can provide global exposure to those local artists by having shops around the world we have the online wall that future will create youve heard we have our super clubs catered by local chiefs and invest in our Community Every month celebrating the local creation and in shop designers that can create a career for themselves and we have free wifi in the shops with sparkling water we have west portal we understand the dynamics of the citys rules and been transparent about our position the thing were not a chain store in the traditional sense weve never considered ourselves as formula retail were not the gap or staples were local and committed to the community thank you. I have a question knowing youre the force you have and the planning youre going to do did you reach out to the local Merchant Association and work with them. We speak with the hd n a and invited locals to super clubs many merchants two scared to speak with us because of those formula retail rules we understand that completely like i said our two rows of staff have been combedz themselves in the community. The second question i have when i met was that prior to schutt the lease or after. After we secured the lease. Understanding youre the global force in that your business is doing and knowing that our local rex are restricted regarding formula retail is there a reason you explicit reach out to the Community Organizations prior. I dont think that there is a reason either way i think there was a lot of local activity that did occur as youve heard from people today and it has no so i dont have is a compelling answer to. Thank you. Youre welcome. Mr. Sanchez. Thank you Scott SanchezPlanning Department just to two points first, we dont dispute that is a first right of refusal, however, at the time the preempts were issued and they were issued there was mother appeal on those permits at that time, it if meet our dpefgs of formula retail use and i appreciate the research they did but i wanted to get a clarification they stated in their rebuttal that based on exhibit a of their brief it states there were 7 locates in operation in 2014 and then in early 2015 on april 8th permits for hayes and one in cincinnati that brings much of them up to 9 total in rapid succession they added stores and permits for dallas and also for columbus, ohio and it looks like their 12 store would have been the one located here what trigger the requirements on may 5th i dont see any minded when those permits were issued they were, in fact, formula retail we did the h n a and aware of the argument by kitten ace and trying to see make sure wear correct and make sure wear not allowing some go that is a formula retail use at the time it was issued but now very clearly it is a formula retail use. Im available to answer any questions. Youre looking at me. Does the law allow the z da to look at it the intent of the company in terms of a lot of the parties are speaking about the intent are you allowed to look at the intent whether a global force or Small Business or anything like that. The code doesnt provide discretion determining when the threshold is reached the code is pretty clear and not open to interpretation after the board had amended to last year the question of the president is always important but very difficult to regulate on the question of intent it is a brood supreme and kitten ace i dont know from is day they were invented with the intention of being formula retail and have the means to do it thats one level of intent and the other level of intent someone president to open up a video store thats a bad example. A video club. Laughter. But with the draechl having more establishment one start out a Small Business and eventually was a formula retail use which became starbucks. Which do we say someone has an intent sufficient enough to say you dont meet the threshold but have the intent to become that this is problematic to implement this permit was reviewed by the Department Staff i didnt review it we have staff at the counter to be interpret the code i could have a lot of different interpretations of intent when you get to something that is skwush i didnt and cases i find maybe i suspected that someone is going to do it something beyond the scope of their permit but give them the benefit of the doubt and if they vital it we cant based on the gutted feelings. Because i wasnt here when the board of supervisors revised the law was they discussion about intent. There was the question came up in the kind of toll hold idea of you know are you going to go into a location that doesnt allow formula retail and then become formula retail that was something we discussed but no way to prevent that to length or legislate out of it like jack spades and jack spade. That permit psa has done away and closed their Retail Stores and at the time that was argued their intent they didnt meet the formula retail but had intents to be a formula retail. Theyre in hawaii. Are they still open i didnt see my locations. Thank you. Thank you. You mentioned the preempts were issued and obviously substantially rescinded them what was the length of times that lapsed. A little over a month maybe a month exactly they were issued on april 8th and the application was dated may 8 yeah. Those permits would have been subject to appeal at that time. Gun 15 days of issuance thank you. Commissioners the matter is submitted. Well, i guess ill start so as my fellow commissioners, this topic of preservation of Small Businesses and the uniqueness of our city is passionate to me i at one time was a Small Business owner in San Francisco for 16 plus years until a formula Retail Company blockbuster hollywood they blow in rented a big space and blew out caused the rents to permanently go up the question really is that little letter of the law spear spirit of the law both i believe that theyre a formula retail although i respect the Zoning Administrator gridlock and the Planning Department i dont think that you can really adequately find all the permit that are available throughout the world and throughout the United States there is no way of tracking that youll require the whole Planning Department to. I believe in the letter and in the spirit they are formula retail i think that there is a lot of poenz people like someone from the public mentioned early that would love to have this store and lots of locates that would like to have them agree a frequent visitor to hayes valley i love hayes valley it was quite the different place and yes on the one side the track jc was quite an experience i remember getting my daughters first teddy bear at the teddy bear fisher it is no longer there theyve process periods a wonderful place to see Small Businesses flourish and im sure the idea of their business is good and it sounds like it is nice but what happens is rent goes up and weve seen too many local residents leave because of the local community and the Small Businesses. I think this discussion among the Board Members is different this time not only that particular case but 3 cases that this board heard the issue was looking at what was the law and what was the intent i think he do that in every instance i will move forward okay and is that better okay. When we dealt with those cases previously the legislation as crafted by the policymakers was not totally clear it was not as specific as now it has become i think that the latitude of this board had in looking at intent is no longer there and therefore i find no way accept to accept the Zoning Administrator, what say you . Determination and i schekd those numbers and it appears that at this point in time. At the same time commissioner how can you verify 8 or 9 stores the threshold is 11 how do you verify theyre not extinguished. Im incredible semiathletic to the neighborhood and absolutely appreciate their angst and frustration and the commissioner next to me find the law is not as unclear as before clearly i wasnt there but looking at the statute and you know im going to have to go with commissioner fung on this one sorry commissioner. Somebody should make a motion. Im not that enamending. Okay right ill make a motion move to deny the appeal on the basis the Zoning Administrator did not error or make an admission in the recession of the revocation. Okay. Thank you we have a motion to deny the appeal and uphold the appeal on the basis of the Zoning Administrator did not error or abuse this is a discretion commissioner fung commissioner Vice President honda nay. And commissioner wilson with a vote of 3 to one that that motion carries and commissioner president lazarus theres no other business before the board. Were adjourned. It seems like everyone in San Francisco is talking about housing San Francisco housing prizes are among the highest it tops anyone Million Dollars and rent rise unfortunately, this is not the first time housing has been in the news thought california the cost of a home has made headline the medium prices for a house in the the 207,000 in california it is more than twice that amount and the laura u bay area is higher its more than doubled the states so while more than half of the americans can afford the medium fewer in california and quarter in the bayer and now fewer than a 6th of san franciscans can afford it so why it housing in San Francisco so go cheven condition tharz the obviously a high demand to live here the city is known for cultural diversities that attacks new residents and the credible opportunity our city diverse and will daytime committee grows jobs as a result we estimate the number of jobs is at ann an alltime 0 hive of 6 hundred thousand in the 80 the population was 6 hundred and 75 thousand now, its grown steadily and quickly the recent estimate is 8 hundred and 40 thousand the highest in the citys history and its not only San Francisco it is greek the bay area has 2 million for residents and jobs then in the 80 and the growth is expected to continue by the year 20403. 9 Million People unfortunately, our housing supply does not keep up with the demand i might not realize the majority of construction is housing thats been suspended for years due to the 2008 recession while population is increasing the housing is only increasing that i 9 percent if we dont pursues housing the cost of housing about only increase how do we plan the regional allocation identifies the total number of housing unit by affordable level to support the new residents San Francisco incorporates it into the housing elements that guides the housing policies the arena data places it in the investment plans for the growth throughout San Francisco those plans developed by years of Community Planning laid the ground work for the construction so the city he e sets the goals in broad terms the private sectors builds market rate housing and nonbuilt Affordability Housing that majority of housing in San Francisco as well as throughout the Country Market rate houses built by private developers within guidelines of the city some below market rate you howls paid pie public and private dollars and prized to be variable to certain population housing is considered affordable if it costs less than 1 3rd the medium income for a 2 percent householder is 70,000 this householder will have to pay no more than 7,150 to be affordable San Francisco has see long applied federal, state and local money often built and nonprofit tint for individual families the news cities in california what the Inclusive Program requires that 10 or ottawa more units to certain blow income levels or contribute to the fund that supports the blow market rate unit almost 25 thousand have been supported by city funds and more than 6 nous thousand of the unit were built between 2000 and 2012 what you cant afford a million will home youre not alone in response San Francisco mayor ed lee has set a goal of creating thirty thousand now emails homes by the year 2020 most will be in outreach of the san franciscan with federal and state funds drying up the San FranciscoEthics Commission is, taking an iv i of actually roll is providing housing across all levels were working diligently for everyone to live here and mr. Chair protect the housing semiand strengthen goals against evictions were commented for Housing Needs for all san franciscans to learn more visit highway selfplanning works to preserve and enhance the city what kind hispanic the environment in a variety of ways overhead plans to fwied other departments to open space and land use an urban design and a variety of other matters related to the physical urban Environment Planning projects include implementing code change or designing plaza or parks projects can be broad as proipd on overhead neighborhood planning effort typically include public involvement depending on the subject a new lot or effect or be active in the final process lots of people are troubled by theyre moving loss of theyre of what we preserve to be theyre moving mid block or rear yard open space. One way to be involved attend a meeting to go it gives us and the neighbors to learn and participate dribble in future improvements meetings often take the form of open houses or focus groups or other stinks that allows you or your neighbors to provide feedback and ask questions the best way to insure youll be alerted the Community Meetings sign up for the notification on the website by signing up using youll receive the notifications of existing request the specific neighborhood or project type if youre language is a disability accomodation please call us 72 hours before the event over the events staff will receive the input and publish the results on the website the notifications bans feedback from the public for example, the feedback you provide may change how a street corridors looks at or the web policy the get started in planning for our neighborhood or learner more mr. The upcoming visit the plans and programs package of our we are talking about with our feedback and participation that is important to us not everyone takes this so be proud of taking ann this is the regular meeting of the Small Business commission. It monday august 24, 2015. And the time is 2 03 p. M. The meeting is being televised live and the Small Business commission thanks the Media Service and sf gov tv staff. Electronic devices are prohibited at this meeting. Speakers are limited to 3 minutes