Good afternoon, commissioners. Good to see you again. So this is a project that we are happy to be able to support. We were able to work out a deal with the project sponsor that will guarantee that these jobs will be like any of the other jobs in the Hotel Industry and especially union square. The workers will have the right to join a union, which is life changing for them. We were able to work out a deal that covers the buildings trades as well. Were pleased to support this project. I will be happy to answer any questions you might have. Thank you, ms. Gomez. Good afternoon, commissioners. My name is kevin carroll. Im the executive director of the Hotel Council of San Francisco. Its my pleasure to be here today to represent an industry that delivers over 11. 3 billion in economic input to the city of San Francisco. Hotels employ 24,000 people, but the jobs influenced by hotels are over 105,000 people in San Francisco. 60 of our employees live and work in San Francisco as well. Im here to support the project at 72 ellis. Our council and our board of directors believe this will bring a new brand into our market, a brand on union square that welcomes millions of people into our city. Its an exciting project. It steps away from the powell cable car turn around. Ive mentioned this before and been here on this address before many of you may have seen me on this specific site. Hotels generate for business on the outside than the inside. Every dollar thats spent inside a hotel, more dollars are spent outside, which is great. If you look at the potential benefits, the tot tax alone, a hotel of this size would contribute millions of dollars in tot every year that would be used for a lot of Different Things in the city. For us and for our industry, we would be thrilled to have another hotel and a hotel n is a new brand coming into our market. We ask that you support this project. Thank you so much. Thank you, mr. Carroll. Hello. Good afternoon, commissioners. Cassandra costello from San Francisco travel. Im here representing 1,300 Business Partners and serving as the voice of the 25 million visitors that come to San Francisco annually. Were supportive of the hotel at 72 ellis. Its really a unique, great location for this hot hotel. Its right in the heart of downtown. Close to transit. Its an unique offering to offer to our diverse array of visitors and their needs. This is Something Different for them and will compliment our existing room catalog. Additionally, we have our incredible mosconi renovation done. Were starting for 2019. Were really excited about this possibility. We hope to have your support today. Thank you. Thank you, ms. Costello. Good afternoon, Planning Commissioners. My name is karen flood. Im the executive dreck of the union contrary improvement district. Were here to speak in approval of this project. It falls within the boundary of this project and the sponsors came to us in outreach and to submit our plan. Were supportive. A hotel the wonderful in our tourist district here. Its a parking lot now. As cassandra mentioned, it will welcome a new type of traveller, maybe younger, tech savvy. Theres smaller rooms, communal spaces. So the only issues we had were just more operational issues. Were very sensitive to construction down in union square. Weve been living with the central subway since 2012. Anything around delivery vehicles coming and going, dust, noise, we care about all that. The sponsors are wellaware of that. Theyve been working in good faith with immediate neighbors on ellis street. I believe theyve reached some conclusions on that. Were feeling good about that. Finally, just garbage issues. We feel about cleaning and safety issues in union square and making sure theres proper garbage management to keep that area safe and welcoming. We do support the district. Thank you for your time. Thank you, ms. Flood. Good afternoon, commissioners. Director tran. Larry mizzola, junior, local Plumbers Union. I come here today to speak to you on this project on behalf of local 38 Plumbers Union and local 43 union and 144 sheet metal and all the other unions within the Building Trades that are represented on this job. Were here to tell you that we think this developer has really stepped up. We think this developer deserves to have this thing finally pushed through today. We had plenty of meetings with this developer, a lot of different discussions. My hat goes off to them. They really did their due diligence. They listened. They were able to see the big picture and change some things. Im happy to be here today to help get this project finally pushed through. The main issue to me and this was the early on stages of this project they may not want me to say this, but im going to say this. They wanted to de a modular piece. We talked to them about doing that. We do not want the job shipped offshore to other places, and they listened. They listened and they came back to us and we had multiple meetings about that. At the end of the day, they agreed that its important to keep the jobs here, to keep the local codes intact, to keep local residents working on these projects, and that the true values of San Francisco are being held in the highest respect with this project. So im glad they feel the same way we do. We really ask you to support this project today and get this thing going finally. Thank you very much for your time. Thank you, mr. Mizzola. Is that it for Public Comment on this project . Okay. So well go to commissioner moore. I assume the eagle has landed. This is the fifth time the commission is hearing this project. Its almost like 16 years back. Im very happy to see that all the trade unions, et cetera, are all coming together to support the project. What is important is that theres no switch in architect. It has and was a solidly approved project that had support. I continue to support it, as i see it, for the third time. I think it is high time that this project is built. I regret that it cant just appear. I do understand that the entire citizens are tired of ongoing construction everywhere, but i think well take a deep breath, and hopefully this will come out to completion very quickly. So im in full support and move to approve its conditions. Second. Okay. Did you want to say anything further, commissioner . Yeah. What strikes me most about this project is oftentimes well see something coming back to us that has deteriorated, if anything. So what happens is the longer a project doesnt go to construction phase, the materials degrade. Certain agreements that were made the first time around arent kept, and i frown upon that. Its nice to see this project come back after being in the queue so long that did nothing but improve. Again, theres no displacement while building on this parking lot, not just the proximity to the central subway, but also the mosconian expansion. And the letters we received prior to the hearing, compared to the lack of opposition, this is what we want to see. If anyone does have some heartache that the approval processes take too long and cost so much, i advise you to show up without opposition, and you will have a lot easier time. Good for you. Seeing nothing further, commissioners. Theres a motion and its been seconded to approve these matters, approve a twoyear extension for performance periods. Commissioner . Aye. Commissioner moore . Aye. Commissioner richards . Aye. It passes 40. Close public hearing, grant the request for the exemption. Commissioners, that will place us on item 14 for case no. 2017. Good afternoon. The item before you is a request for conditional use authorization for a dwelling unit merger within the 248 residential building at 1177 california street between jones and taylor street. The project would merge approximately 1,400 square foot two bedroom two and a half unit with approximately 108 square foot one room, one bathroom unit. It would remove a wall to create a 3 bedroom unit. The unit would be occupied by the owners. In addition to the conditional use findings, the Commission Must also consider separate criteria outlined in section 317g2. Although the merger would not remove a unit thats considered affordable as defined by the rent stabilization and arbitration ordinance because it is a condominium. The merge of two units would create a unit thats more unaffordable to a larger percentage of the population. The second unit was occupied by tenants between 2011 to 2016 when the owner completed a buyout agreement with the tenant. The agreement would go against our late mayors directive that all housing should be preserved there. There northeast design deficiency. While it was entitled as a hotel, it was developed as a 254unit condo building, meeting all code requirements when they were built. To, the department has received six letters in support of the project, and two letters in opposition, all of which have been provided to you. After anal in addition after all analysis, its recommended disapproval. It would result in net housing lost. Its unaffordable to the larger part of the population. Once the units are merged, the theres little chance the city will recoup the lost. The project sponsor will be presenting. Im available for any questions afterwards. Thank you. Project sponsor . Good afternoon, commissioner. Im here on behalf of the project sponsor. Hell be speaking after me. [off mic] sorry. I just wanted to take a few minutes. Im not going to take too much time. Nobody likes to listen to attorneys. Ive been around long enough to know that, but there are a couple of points we see differently. Mainly, they talk a lot about affordability when theyre gong through the criteria, section 303, section 317. If you look at the language of both of those sections, affordability is actually not one of the criteria, yet thats the key factor they rely on. So weve walked you through all the legal arguments as to why weve felt that was not an appropriate criteria. They also talk a lot about there being no compelling need, which is also not a criteria under section 303 or 317. That set aside, contrary to what they may believe, our client does believe theres a compelling need. Hell share that a little bit after me. We feel from a criteria standpoint, when you walk through the criteria, when you walk through the findings, theres actually no findings that staff can point to in providing us a denial, but theres support for our proposal. We request that you approve this. With that, im going to call the sponsor up. Thank you, commissioners. My name is stan landfair. Im the applicant and the owner. I have some visual aids here that would actually help me abbreviate this procedure and make it easier for everybody to understand. You can leave them right there, and well grab them. Thank you. Theres one for the commissioners, one for, you and one for the clerk. I can start while hes distributing. In 1968, i visited this city for the first time. I was 14 years old. My parents were on their way moving to the philippines. My dad was a naval officer. We spent three days here. At the end of three days here, i said to my parents, mom and dad, some day i want to come back here. This is the greatest city. I want to live here. So in 1999, 21 years later, that dream came true. Before you know, i would like to continue to stay true, i would like to adapt the two apartments i open to family needs so i can remain here, so i can retire here and so i may continue to be a good citizen of this city. If you will look at tab one, you will see two oak doors, 1015 and 1014. Those are the two apartments that i would like to merge. They are literally that close apart. If you look at tab two, now, thats me and my lovely fiance. We intend to get married. Were cooccupying the units right now. We have difficulty taking use of the space. If you take a look at the picture. You will see me. Thats my morning routine. I go from one apartment in my bathrobe to the next one. Look at the other one. Thats the end of my day, i put on my bathrobe again, say goodnight, and go to my apartment next door. Why dont i sleep in the other apartment, you might ask . I hate to have to trouble you with my personal affairs, but i suffer from a sleep disorder called rem behavior disorder. I tend to get up and act out my dreams. Its hazardous to my spouse, to anyone who would sleep with me. We dont sleep in the same bedroom because of. That as i said, im sorry to trouble you because of that, but because of that, i sleep next door. This is how i get there every morning. Eliminating that wall would give us some privacy. If you look at tab three, i hope you see the humor in this. Thats me and elizabeth when i forget my keys. She comes and lets me in. If you go to tab four, you will see this is the main apartment i live in, 1014. Although it is a two bedroom, to be honest, it doesnt have much space. Thats the living space period on that 8 by 12 rug. It was one thing to occupy that space alone, but now that were a couple, its cramped. It rules out room for family and guests. Were both professionals. We work at home. Every inch of space is occupied. On the next tab, six, one very small bedroom with no room for any extra furniture. Were not complaining. Knob hill is a nice lifestyle. We feel fortunate to live there. We have the space next door to live the life we want to live, grandchildren, it provides later for a caretaker later in life, if thats necessary. We would have the space for that. If you look at tabs a through f, ive got some letters of recommendation from people in the community that im proud to know and proud to have backing me in this. The first, tab a, is from steven gomez. Hes the president of our homeowners association. Hes here today. Hell be happy to give you the histo history. Tab b, theres a letter here im really proud of. Reverend malcolm young. Im not even a member of the church there, but he stepped forward to me to attest to my character, that he knows me, that he knows i can be taken for my word. He understands i would like to remain in this community as the good citizen that i am. He knows this on the basis of the work weve done together for various Charity Organizations and in specifically im the acting president right now of the nob hill association. Its for the benefaction of huntington park. Tab c, you will see a similar letter from the grand secretary of the masons who lives next door. And the remainder of the letters are from friends and people of influence in the neighborhood, including john challaci, the Vice President of our board. A 30year counsel to our board and a wellrespected member of the association. Both of these people will attest that if i say the purpose of moving here is not for a quick resale or profiteering but for my personal use because i want to live here and retire here, they believe me. They know that. Last, you will see a letter from my closest neighbor on the tenth floor. I thought that might be relevant to you since any construction, any bother there will be practically none, but hes here to testify it wont bother anybody in an unreasonable way. Lastly, actually, theres one more letter from one more member of the board that would also favor this project. If we could go back briefly to the very first page, i addressed here what are the real issues. Is there a loss of rental units . No. Neither one of these units is available for rent. I own them. Ive owned them for 15 years, and i would like to own them for another 15 years. Its the only place i live. I dont have a country home. This is where i live and work. Is there a loss of Affordable Housing . Not really because the lesser of these two is valued at 900,000. Thats not the loss of an affordable unit. Thats really not what the housing structure protects. There a loss of anything . No. Both of these are my units. Is this desirable for the community . Well, we can spend a lot of time talking about the value of three bedroom units, but i think family units are necessary, and i dont discount my family. My family would like to live and act as a family in that unit. I can see from your looks that i might be pressing time a little bit. Just to wrap up because were one minute. If its possible, if theres Public Comment, if he can come back for a minute, but to point out, we did propose exhibits. Hes willing to owner occupy the units once theyre merged. Thats his intent, he just said. His intent is to occupy and not turn this around for a quick sale. Could you speak into the mic a little bit more. I know thats a sore subject, but this is not a merger to turn around and sale. If theres any questions, we would like to come back and address them in Public Comment. This is the time. We may have questions, but this is the time to make your case. Well, i learned only this afternoon that the former tenant is here and apparently wants to testify. I havent seen any of the copies, but i want to let you know, as i said in the proposition, there was a lengthy buyout. I paid the tenant 21,000 for the privilege of having my home back, and she moved to the apartment next door. I think justice and equity has been achieved here and will continue to be achieved if im allowed to modify my units as i propose. Great. Thank you very much. Well open this item up for Public Comment. In anybody would like to speak on this, you can line up on this side of the room. Good afternoon, everyone. My name is sorry. My name is wei. Im the owner of the unit right next door to 1014 and 1015. So my unit is living room and a bedroom. The one bedroom is going to be removed, so when i bought the unit, i really wanted to make sure i work with my reel realtor to make sure its next to the one bedroom apartment because this is an old building and it has poor insulation. I wanted to make sure i wasnt next to a large unit. With this current proposal, my unit would be right next to a three bedroom apartment that would host a lot of people and a lot more noises. Given the current soundproof, its not going to work for us and will affect my rental income. If i want to retire in that unit, its a beautiful building, its going to affect me for the long term. And my tenant actually has complained in the past that shes been bothered by the noise right next door. So just imagine once the one bedroom apartment becomes a three bedroom apartment. My tenant will be suffering, as well as me later on. I want to present where im coming from, why i oppose this project. Thank you. Thank you very much. Next speaker,