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July 16, 2014W EMAIL ccwu.planning@grnaiL corn>Cindy Wu, Presidentand MembersSan Francisco Planning CommissionCity and County of San Francisco1650 Mission Street Suite 400San Francisco, C 94103

RE Proposed Changes To Formula Retail OrdinanceDear PresidentWu and Members of the Planning Commission:In 2004, after several years of research and extensive community outreach the Board ofSupervisors passed legislation which introduced to define and regulate Formula Retailestablishments In San Francisco. By all measures, including the studies that the PlanningDepartment has commissioned at some expense, this legislation has been successful by allobjective accounts. It has strengthened the citys economy by keeping money in the City,has helped small businesses, preserved local jobs and maintained the unique fabric of theCitys diverse, archipelago of unique neighborhood commercial districts. Albeit SanFranciscos Formula Retail legislation continues to be attacked by Corporate America.On behalf of myself and the undersigned am writing to strongly urge you to reject yourstaffs recommendations to weaken San Franciscos formula retail controls and retain theexisting numerical definition of formula retail use as a type of retail sales activity orestablishment having eleven or more other retail sales establishmentsWe are deeply troubled by the Departments proposal to raise the numerical threshold forwhat defines formula retail from 11 to 20 establIshments as it is without any rationaljustification.Moreover, the Departments proposal to change the definition of formula retail from 11to 20 and to otherwise relax the controls is flatly contrary to Proposition G, and should besubject to voter approval. Proposition G, known as the Small Business Protection Act,was approved by San Francisco voters n November 2006 by an overwhelming 58 to 42 )vote, required all formula retail uses defined as 11 or more outlets wanting to openanother store In any Neighborhood Commercial District to go through the Conditional Useprocess, thus allowing each neighborhood to weigh in on whether or not they wanted tohave that particular chain store in Its neighborhood. Proposition G also provided that theConditional Use process could be strengthened by additional controls not weakenedWhen voters approved Proposition 6 they understood implicitly that formula retail wasdefined as a type of retail sales activity or establishment having eleven or more other retail

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Planning CommissionJuly 16 2014Page 2

est blishments We contend that any contr ry Interpretation presented solely to denyvoters the opportunity to be he rd on the proposed amendments before you now.

Jake McGoldrlckSophie MaxwellTony HallChris Daly

cc: City Attorney Dennis Herrera Commissioner Michael Antonini Commissioner Rodney Fong Comissioner Richard Hillis Commissioner Kathrin Moore Commissioner Hisashi Sugaya Commissioner Christine Johnson do Christine LamorenaJohn Rahaim Director of Planning Jonas lonin Commission Secretary cJonas lonlnsfgov org>Christine Lamorena Acting Commission Secretary lcanishka Burns Planner ckanishka burnssfgov org>AnMarie Rogers Planner cAnMarie.Rodgers@sfgov.org>

Man GonzalezAaron Peskin