Volume 10, Number 3, April 27, 2004

This issue of the BOMA San Francisco Advocate is brought to you by

San Francisco Board of Supervisors Passes Formula Retail (Chain Store) Restrictions
Supervisor Matt Gonzalez pushed through his formula retail ban/restrictions legislation several weeks ago with a veto-proof 8-3 vote by the Board of Supervisors. This legislation will totally ban chain stores in Hayes Valley and Cole Valley and set strict citywide notification requirements (conditional use permits) on all so-called “formula” (read: chain store) stores who have 11 or more outlets worldwide. Formula retail stores are defined as stores with the same merchandise, employee uniforms, signage, logos, architectural design, color scheme or similar standardized features. The new ordinance will require that all such retail outlets in neighborhood commercial districts apply for a conditional use permit, even though the space may have previously been approved for a similar use. It allows the local community (both competing businesses and residents) the opportunity to extract concessions or additional “contributions” for the privilege of setting up shop in their area. The full fiscal impact of this legislation was never measured and cannot be determined at this time. BOMA is hopeful that some sort of modifying legislation can be considered in the near future that will only require new “formula retail” stores to notify the neighboring businesses and residents, rather than subject their project to a conditional use permit. However, for the time being, San Francisco has pulled in the “welcome mat” to all chain stores…

San Francisco Supervisors Consider Registration for Permit Expediters – Table Idea for Now
The Board of Supervisor’s Rules Committee earlier last week tabled a measure that would have required many permit consultants to register with the city as a lobbyist to act as liaisons between the building department and their clients’ architects, engineers, or owners. This complicated, costly and unnecessary legislation would have required each consultant to annually register with the city as a lobbyist, and pay a fee for him/herself, as well as another fee for each client each year. BOMA protested that the Department of Building Inspection had just recently put a new automated permit tracking system into service, and that the city should wait and see if this new process will provide the transparency and equal service to all applicants that it was designed to do. BOMA also urged the Committee members to allow time for the Mayor’s Special Envoy, Rudy Nothenberg, to complete his analysis of the department’s permit processes before new rules and restrictions are applied to it. BOMA applauds Supervisor Sophie Maxwell’s decision to table the measure for the time being and to further study its potential negative ramifications.

New Tax Proposals Being Considered by San Francisco Board of Supervisors
Supervisor Fiona Ma released her final report from her Revenue Advisory Panel last week and it was not welcome news to the business community or commercial property owners. Although the panel never reached any consensus on whether (much less which) taxes should be raised in San Francisco, a straw poll was taken of the participants, and several new or increased taxes surfaced as the majority favorites: increasing the Vehicle Licensing Fee, increasing payroll taxes to include partnership distributions, and adding a new gross receipts tax. Second tier favorites were increasing the real estate transfer tax, adding a local parcel tax on both residential and commercial properties, and adding a residential utility tax. It wasn’t all bad, however, as several ideas to stimulate the local economy did surface: give biotech/nanotech firms a payroll tax holiday for a set number of years as they develop their products, and to charge rental property owners a one time fee to be able to sell their units to existing tenants. This tenant homebuyer program would also increase the value of the real estate converted from rental units to condos thus reaping the city higher property tax income for years into the future. Any tax proposals will have to be approved by the voters in November before becoming effective in 2005. 

San Francisco Supervisors Consider Higher Developer Fees
For the past 23 years, the city has enacted a so-called Transit Impact Development Fee (TIDF) on new commercial office building construction in the downtown area, ostensibly to pay for the improvements to the local transportation system that would be necessary as a consequence of the new building and its additional people. That fee has been set at $5 per square foot, and it has not changed. Now, Supervisor Jake McGoldrick wants to take the TIDF citywide, and to assess it against all types of new developments, except residential.  His proposal calls for $35 per square foot on new retail development, $14 /psf on new office buildings, hospitals, educational and cultural projects, and $9/psf on new hotels and production/distribution/repair facilities. According to his staff, there will be an effort to bring these initial fee hike proposals down to perhaps $10.50/psf for every type of development except retail and office, which would be charged $12.75 per square foot. The new ordinance also calls for annual cost of living adjustments, and will exempt out any new developments under 3,000 square feet in size. The BOMA Government and Public Affairs Committee as well as the association’s political action committee have rejected any fee hikes on new developments at this time, and call upon the Supervisor to refrain from increasing any costs to do business in San Francisco during this down economy. The first hearing on the TIDF increases is reportedly set for May 10th at the Supervisor’s Land Use Committee.

New SF Fire Chief Joanne Hayes-White Meets With BOMA
The first appointment made by Mayor Gavin Newsom was the elevation of Joanne Hayes-White to Chief of the San Francisco Fire Department. BOMA has had a long and supportive relationship with the Fire Department, starting with our association’s founding several years after the 1906 Fire and Earthquake. BOMA also assists the Firefighters Toy Program every Christmas/Holiday Season by placing barrels for toys in all of our downtown buildings for several weeks, which results in thousands of toys each year being contributed for underprivileged kids in the city. However, BOMA has only had intermittent meetings with the Department to review/respond to possible code changes or policy/procedure changes that might impact our many high rise office buildings. With the elevation of Joanne Hayes-White, BOMA saw an opportunity to establish a closer relationship with the Fire Department and to that end has held several meetings with the Fire Chief to lay out our suggestions for doing just that. BOMA is particularly interested in support from the Department in the state adoption of the International Codes. Last year the California Building Standards Commission adopted the National Fire Protection Association’s building codes, to the shock of every industry group (architects, engineers, building officials, property owners, and business owners) in the state. With a new Governor, there is hope this decision will be reversed, and BOMA is seeking assistance from the SFFD in this regard. BOMA also wishes to assist the Department in standardizing its many procedures for enforcement of local and state fire and life safety codes. BOMA’s Building Codes Task Force has also invited the new Fire Marshal, Paul Chin, to attend its monthly meetings at the BOMA Office.

BOMA’s Standard Method of Floor Measurement Seminar April 29th—Last Chance to Sign Up!
Don’t miss this valuable seminar which will interpret the set of area calculations produced by BOMA International for tenant space rents. Accepted by the American National Standards Institute (ANSI), these floor measurement tools will help you and your tenants understand their obligations under the lease for common areas, etc. Learn why an annual maintenance of a building’s area calculations is necessary as leases turn over. The seminar will be presented by Gordon L’Estrange, of Ottolini, Booth & Associates, architects, and the Chair of BOMA’s Building Codes Task Force. This three hour seminar will be held at San Francisco State University Downtown Center, 425 Market Street, Room 2608, beginning at 8:15 a.m. Registration costs $85 for members, and $95 for non-members, and can be done online at www.bomasf.org. Do it now! 

DBI Preparing Procedures for Sprinkler Retrofit Ordinance Extensions
At a special meeting of the Building Department and Fire Departments April 1, Laurence Kornfield, the City’s Chief Building Inspector, detailed the issues surrounding the city’s sprinkler retrofit ordinance, scheduled to go into full effect February 15, 2006, and detailed exactly which type of buildings the ordinance applied to, and under what conditions extensions might be considered. Buildings are exempt from this ordinance if they are historical (and are included in the book “Here Today”), are of mixed occupancy (part residential/part commercial, etc.), are R-1 buildings except tourist hotels, or are residential care facilities. Naturally, state and federal buildings were also exempt. For those commercial office buildings who are covered, the following things are absolutely required: the sprinkler system must be approved by the Fire Department, the system must conform to Chapter 38 or the 1992 San Francisco Building Code – which is now the 1999 NFPA 13, the system must have shut off valves, water detectors, and either onsite or remote controls/supervision. The risers, laterals, and other installation elements must be correct, and there must be adequate water pressure to the building. For alternatives or exceptions to the ordinance to be considered, several factors must be asked:

> Has the alternative been proven in a nationally recognized test?
> Is it physically impossible to install sprinklers?
> Will it require a disproportionate effort to comply?
> Will it cause an undue hardship with little increase in safety
> Will the DBI and the SFFD approve the alternative proposal?

BOMA is also seeking a completion document (letter) from the DBI which will state when a building is 100% sprinkled. This umbrella certification will link all work done in a building related to sprinkler systems and have it verified and signed off on by an engineer. Kornfield is currently working on the department’s procedures for reviewing and considering any extensions. (415-558-6244)

BOMA’s Annual Commercial Recycler of the Year Awards Announced!
Twenty BOMA San Francisco office buildings competed this year for the title of “Best Commercial Recycler of the Year”. The contest was, jointly sponsored by the association and the San Francisco Department of the Environment, also included entries from the Hotel Council of San Francisco and the Golden Gate Restaurant Association. The winners were announced at the April 22 luncheon at the Palace Hotel and presented cash awards and “Golden Dumpsters” (created by the Golden Gate Disposal and Recycling Company). Recycled inscribed glass plates were presented to the 2nd place winners, and certificates were given to 3rd place recipients.

AND THE WINNERS WERE…

Small Buildings – under 270,000 sq. ft. – 1st Place: 260 Townsend Street (Swinerton Builders), 2nd Place: 255 California.

Medium Buildings – 270,000 – 450,000 sq. ft. – 1st Place: 100 Pine Street (Unico Properties), 2nd Place: 101 Second St. 

Large Buildings – over 450,000 sq. ft. – 1st Place: 2 Folsom Street (GAP Inc.), 2nd Place: Post Montgomery Center.

Large Hotels - 1st Place: San Francisco Marriott

Medium Hotels - 1st Place: Fairmont Hotel San Francisco

Small Hotels - 1st Place: Hotel Cosmo

Large Restaurants – Over 50 employees - 1st Place: Scoma’s

Medium Restaurants – 21 to 50 employees - 1st Place: Anchor Brewing Company

Small Restaurants – Under 21 employees – 1st Place: Urban Forage

A luncheon also featured a presentation by David Gottfried, author of “Greed to Green”, who was a founder of the U.S. Green Buildings Council and the LEED standards for grading a building’s environmental sustainability. Jared Blumenfeld, the Director for the city’s Department of the Environment, and Supervisor Sophie Maxwell rounded out the program. Anne Miller (Unico Properties) chaired the Awards Luncheon and created the powerpoint presentation of all award winners.  Congratulations to all the winners!

Building in San Mateo? Attend BOMA’s May 4th Luncheon on County Green Building GuidelinesOwners, architects, urban designers, landscapers, and green building enthusiasts will want to attend BOMA’s May 4th luncheon in San Mateo at which the county’s newly published “Sustainable Buildings Guidelines” will be reviewed by its authors, San Francisco architects Richard Parker, and Raphael Sperry of 450 Architects. Greening a building simply means taking the environment into account during design and construction. Green buildings are more energy efficient, conserve water, use durable, non-toxic, and incorporate as much recycled content as possible. They are designed to maximize natural light, utilize space most efficiently, and   promote waste recycling. A “green building” will have lower operating costs which translate into savings for both the owner and the building’s tenants. Better still: you are reducing any harmful impacts on the environment produced by the building’s construction.

Sign up at www.bomasf.org today! Location: Radisson Villa Hotel, San Mateo, 11:30 – 1:30 p.m. $40 in advance.

Rob Reiner/California Teachers Association Drops State Initiative to Raise Commercial Real Estate Taxes
Recently, it was announced that Rob Reiner, the Hollywood actor/director in association with the California Teachers Association were dropping their effort to place a measure on the November state ballot which would have raised the commercial tax rate on properties from 1% to 1.55% annually. The cited reasons were several: too many other measures on the ballot will be asking the state’s voters to raise taxes in a number of areas, and the possibility of Governor Schwarzenegger’s waging an opposition campaign against it. The California Chamber of Commerce, the California Business Properties Association, BOMA and numerous other groups lauded the action taken by Reiner/CTA in withdrawing the initiative. Recent polls showing a heightened voter opposition to tax hikes also caused another group to pull a measure that would have levied a $550 million increase in phone taxes to pay for emergency health programs. Proponents of the tax hike on commercial properties estimated the 1.55% would rake in an additional $5.4 billion annually. Opponents stated the state’s businesses could not afford that kind of hit in these tough economic times. Taxes can only be voted upon in general elections every two years.

San Francisco Collaborative Can Survey Your Space for Accessibility, and Save You Money!
Do you know of businesses or buildings with accessibility issues? Do you fear you may be sued one day for non-compliance with strict disabled access laws? If so, you might want to look into the San Francisco Collaborative, an alliance of small business and disability consumer interests, including the Independent Living Resource Center of San Francisco. They will do a survey of your “vulnerabilities” and help you comply in the easiest fashion possible. This technical assistance is also very inexpensive and the Collaborative can even offer grants up to $500 toward those costs. For more information, contact the Independent Living Resource Center at 415-543-6222 or email info@ilrcsf.org. All survey information is kept confidential.

Upcoming Events to Remember:
May 14th BOMA’s Disaster Experience Seminar – A hands on session to test your mettle under extreme emergencies and to help you create a plan to deal with building crises involving  your tenants, the media, police, fire, etc.  8 a.m. – Noon; Hyatt Regency

June 2nd Small Business Network’s Annual Dinner featuring Sunne Wright McPeak, the Governor’s Secretary for Business, Transportation and Housing.  6 p.m., World Trade Center (behind the Ferry Building) For Details check out: www.sbnsf.org .