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HomeMy WebLinkAbout01.13.2025 Anti Displacement CAC Meeting-Final MinutesSouth San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 Community Advisory Committee: Meeting 1 Meeting Summary Monday, January 13, 2025, 5:30-7:30 pm South San Francisco City Hall In Attendance CAC Members Present Mayor Eddie Flores (Chair) Nora Alvarado Michelle Alvarez Bertha Benton Marjorie Blen Leslie Fong Lee Ginsburg Joe Napoliello Jennifer Siegel Greg Turner Karla Vides CAC Members Absent: Jahan Zandi City of South San Francisco Staff Present Alvina Condon Geneva Mendoza Elia Moreno Tony Rozzi Consulting Staff Present Anna Gallicchio HR&A Sulin Carling (by video) HR&A Joey Goldman Kearns & West Jennifer Vazconcelo Kearns & West Interpretation Staff Present Annabelle Garay Noemi Gonzalez South San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 Call to Order Joey Goldman from Kearns & West welcomed the Community Advisory Committee (CAC) members and introduced the interpretation services. Noemi Gonzalez demonstrated the interpretation equipment and emphasized the importance of interpretation services for language justice. Public Comment The fioor was opened to public comment. There were no public comments. Consent Calendar Mayor Eddie Flores called the meeting to order, and Joey led roll call. Mayor Eddie requested a motion to approve the December meeting minutes. Committee members motioned to approve the minutes; the committee approved the minutes. Group Agreement Joey reminded the committee of the group agreements to: • Respect all opinions: differences of opinion are both natural and valuable for the CAC. • Focus on the ideas and not individuals. • Be respectful and thoughtful when we disagree (“Don’t yuck my yums.”). • Be open to understanding others’ experiences and viewpoints. • Be mindful of language interpretation needs. • Express opinions and perspectives using "I" statements to avoid sounding accusatory or confrontational. • Encourage honesty while also being sensitive to others’ feelings and perspectives. • Avoid interrupting others. • “Step up and step back” to give everyone a chance to contribute. Commercial Trend Analysis Presentation Anna Gallicchio from HR&A provided a comprehensive overview of the Commercial Trend Analysis as part of the South San Francisco Anti-Displacement Study. The analysis focused on understanding displacement pressures on businesses over the past decade through data and outreach to small businesses. The study aims to: 1. Assess displacement risk and identify challenges facing small businesses 2. Audit existing studies, policies, and programs 3. Develop an Anti-Displacement Roadmap with identifled policies and programs to mitigate displacement pressures Anna clarifled the types of displacement impacting businesses: South San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 • Forced Displacement: Circumstances where a physical or legal force requires businesses to vacate their current location. This could be due to redevelopment or landlords declining to renew leases. • Pressured Displacement: A business leaves its space because remaining is untenable due to rising rents or loss of customers as local demographics shift. • Voluntary Displacement: Businesses that own their land are incentivized to sell their properties due to an increase in property values, resulting in an economic windfall for business owners, but a loss in jobs for employees. This appears to be primarily occurring with industrial businesses in South City. HR&A identifled trends across four major categories of businesses in South San Francisco: • Research & Development (R&D): o Often associated with life sciences and new projects. o Includes smaller pharmaceutical companies and other research entities. o The term "R&D" is sometimes used interchangeably with life sciences. o Facilities are typically "Class A" buildings—high-end, newly constructed spaces. • Office: o Involves standard office jobs in traditional office spaces. o Differs from R&D in both purpose and building design. • Industrial: o Covers sectors such as automotive repair, maintenance, and construction contractors. o Broad category encompassing various operational and service industries • Retail: o Refers to commercial spaces where consumers shop. o Includes general merchandising (e.g., Costco and other big-box stores). o Encompasses a range of businesses, from mom-and-pop shops to large retail chains. o Played a signiflcant role in shaping South Beach City’s commercial landscape over the past decade. Key Findings Anna discussed the impact of growth in R&D, rising rents, and site redevelopment on industrial and retail businesses in South City. Over the past decade, R&D jobs increased by 115%, adding 11,800 jobs, while industrial jobs have declined. South San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 HR&A's analysis of trends in Lindenville and East of 101 revealed that East of 101 has experienced signiflcant R&D and office space growth, with over 90% of such space located there. Since 2014, nearly 1 million square feet of industrial space has been demolished to accommodate new developments. In contrast, Lindenville lacks substantial R&D and office space, though the Southline R&D campus, which will add 2.8 million square feet of Class A R&D space, is under development. Industrial space there has also been cleared for new buildings. The job landscape is shifting towards R&D positions, which pay more but require a four- year degree, an education level that only 39% of South City residents possess. As a result, industrial jobs—in higher supply and paying about $50,000—are declining, with R&D jobs offering nearly triple that pay but requiring higher qualiflcations. Between 2014 and 2024, South City added 6.7 million square feet of R&D and office space while losing 1.2 million square feet of industrial space. Anna shared key flndings from HR&A’s interviews with an industrial business, two small R&D organizations, and several industrial/R&D brokers. • Industrial o Highlighted importance of industrial businesses serving the city and providing blue collar jobs o Signiflcant R&D development has driven up industrial rents and property values o Industrial businesses that rent are getting squeezed out o Some industrial businesses that own their properties are selling and relocating outside of South City • R&D o Location in South City allows access to a strong R&D cluster and a broad talent pool across peninsula o For small businesses, access to affordable/incubator space in South City has been valuable o Demand for R&D space is slowing as VC investment has slowed; newly built space is slower to lease Committee members clarifying questions, and comments about the presentation: • Leslie Fong asked about the number of people displaced due to industrial space demolition for new R&D and office spaces. South San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 o Anna committed to providing data later and noted workforce shifts would be discussed further in the presentation. • Mayor Eddie pointed out that many industrial businesses left or closed for reasons not directly tied to South San Francisco's changes. • Leslie highlighted challenges for industrial workers transitioning to R&D, as many lack the advanced degrees required for these roles. She expressed concern about how highly specialized workforces infiuence policies affecting local working families, despite not refiecting the community’s makeup. She also asked about how South San Francisco compares nationally in terms of costs and industrial movement. She noted that high wages on the Peninsula may not attract businesses due to the equally high cost of living. o Anna responded that she did not have industrial data at hand but could provide industrial rent comparisons for the area, including state-level data, to give more context. o Anna talked about the migration of industrial businesses to areas with lower rents, like the East Bay. She also explained that R&D demand is driving up land prices, contributing to the shift. • Joe Napoliello noted that upzoning East of 101 increased land prices, making industrial uses less viable and pushing businesses to the East Bay or Central Valley. • Leslie suggested that zoning policies could manage industrial shifts and mitigate traffic congestion caused by long commutes. Commercial Trend Analysis Discussion After a short break, Joey welcomed committee members back and opened the fioor for a group discussion based on HR&A’s presentation. Joey asked committee members to think about changes they have seen in South San Francisco, and some shared their observations in the discussion. Discussion questions and key points from the conversation include: 1. Have you observed small businesses in South City closing or being displaced? What types of businesses and where? o Members shared observations of closures, relocations, and displacement among small businesses, especially mom-and-pop stores, citing speciflc examples like a barbershop and a sushi restaurant on Grand Avenue, and the closure of Lowe’s. South San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 o Other notable examples included businesses near the Mercedes dealership being displaced to make way for new developments, closures of restaurants like Brothers, and businesses adjusting their hours and location. o Members expressed concerns about how rising rents, reduced foot traffic, and broader market changes have negatively impacted these businesses. 2. What challenges may have caused these businesses to close or move? o Rising rents and the high cost of doing business were noted as major challenges, often pushing businesses to relocate to more affordable areas like the East Bay or Central Valley. o Lack of long-term rental contracts and increasing operational costs further strained local businesses. For example, a member talked about new businesses like an Asian restaurant on Grand Avenue that struggled to sustain operations without guaranteed foot traffic. o Some members highlighted the natural evolution of businesses, with older owners retiring or being unable to adapt to market shifts, such as transitioning to new industries like R&D or technology. 3. Does the data showing a shift from blue-collar to white-collar jobs in South City align with changes you’ve seen? o Members noted a clear transition in South San Francisco from a historically blue-collar identity to a more white-collar, R&D-focused economy. o Concerns were raised about how these changes have reduced opportunities for local residents who lack the specialized skills or education required for white-collar roles, emphasizing the need to protect and support the blue- collar workforce. 4. What stood out to you? Was there anything that surprised you? o Members expressed surprise at the stark data showing a loss of industrial space and a growing focus on R&D. This shift has signiflcantly altered the city’s workforce, land use, and community dynamics. o Discussions also highlighted how certain areas, such as east of 101, feel disconnected from the rest of the city, with retail spaces catering more to commuters than local residents. 5. What amenities and business types would you hope to attract to South San Francisco? South San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 o Suggestions included clothing stores, late-night dining options (e.g., food trucks), more pop-ups, cocktail bars, and family-friendly venues to create a vibrant downtown experience. o Members emphasized the importance of attracting businesses that cater to both blue-collar workers and the growing white-collar workforce to maintain a balanced and inclusive community. 6. What other questions do you have? o Members raised questions about how the City plans to address commercial displacement and support legacy businesses. o Suggestions were made to implement long-term strategies, to create resources and protections for small businesses while enhancing the city’s overall infrastructure and marketing. Outreach Discussion Joey asked committee members for ideas on effectively connecting with South San Francisco communities to gather feedback on city initiatives. Committee members’ responses: • Greg Turner suggested revitalizing the Orange Park Farmers Market and incorporating a night market in downtown South San Francisco. Greg emphasized that transforming the farmers market could be a major step for the city and shared that many residents in his building have expressed interest in both night markets and farmers markets as key attractions. • Leslie proposed a monthly showcase to highlight local restaurants and businesses, which could bring more foot traffic downtown. Leslie suggested publicizing specials and including retail businesses like a hardware store to increase visibility and community engagement. Leslie emphasized that featuring one restaurant and one small business per month could add vibrancy to the area. • Marjorie Blen recommended conducting a survey targeted at families with children in the school district to gather insights on their preferences. Marjorie suggested questions like, “What kinds of retail businesses would you like to see?” and “Have you considered becoming a small business owner?” Marjorie noted that this approach could provide valuable data while encouraging more local engagement in South San Francisco. • Mayor Eddie advised directly addressing the school board to encourage them to hold fundraisers in South San Francisco instead of other cities. He also asked for more details about the logistics of community tabling, including how to make the setup effective and engaging for residents. South San Francisco Anti-Displacement Roadmap CAC Meeting Summary, January 13, 2025 • Joey clarified that that tabling events could include posters and boards explaining the City’s efforts to reduce displacement. The setup would allow for interactive exercises to gather input on what residents value about the city and what changes they’d like to see. Joey emphasized that the goal is to broaden community input for study. • Sulin Carling from HR&A, provided an update on discussions with the Chamber of Commerce and the Renaissance Center, which offers small business support services. Sulin announced that findings from a review of existing resources and City policies would be shared in future meetings to identify gaps and opportunities for mitigating displacement. • Mayor Eddie praised the CEO of the Chamber of Commerce for creating more inclusive programs, such as a bingo card event during "Santa Comes to Town," which boosted foot traffic downtown. Mayor Eddie highlighted the Chamber’s active promotion of businesses and suggested inviting the CEO to a future meeting to discuss additional ways to support local businesses. • Lee Ginsburg suggested promoting South San Francisco events to neighboring cities like Millbrae to attract a broader audience. Lee noted that tapping into high- Asian demographics in nearby cities could bring new visitors to the area. Meeting Schedule and What’s Next Joey encouraged committee members to continue sharing ideas for public outreach events or opportunities to gather community feedback. Joey reminded members about the next meeting on February 3rd [changed after the meeting to February 4], which will focus on residential policies. Anna previewed the next meeting’s focus on residential programs and policies, which will include an overview of City, County, and State initiatives. The discussion will establish a baseline for future policy considerations. Mayor Eddie promoted the upcoming Lunar New Year Night Market on February 7th as a community-building event and assured that public safety measures would be in place, while Joey distributed fiyers for the event. He also announced Coffee with the Mayor events, or "Cafécito” with the Mayor, at six different local businesses in South San Francisco. The flrst is Saturday, January 18 at 10:00 am at Antigua. The next event will be at Starbucks and other locations across the Council Districts. Committee Members are welcome to attend. The meeting concluded at 7:37 pm.