Economic Development

By Gavin Newsom

http://www.gavinnewsom.com/issues.html

As mayor of San Francisco I will meet the challenge of these difficult economic times with innovative and workable plans to get our economy moving again. I will focus on improving San Francisco's infrastructure, creating jobs and housing, and investing in our workforce, our neighborhoods, and our small businesses. Strong infrastructure, well-trained employees, and vital neighborhoods are essential to attracting private investment to the city, generating tax revenue, and making San Francisco a center of economic activity. I will work hard to harness the tremendous potential for economic development in our city and make San Francisco an even more strong, vibrant, and sustainable community.

The San Francisco Chamber of Commerce reported in 2001 that in excess of $2 billion could be poured into the San Francisco economy and 15,000 jobs created simply by speeding construction of transit, infrastructure, and housing projects already in the pipeline. My administration will make it a priority to seize these opportunities to rebuild our city's economy. We will make San Francisco the kind of city where cutting edge world-class companies will want to headquarter, as they did in the past. I will also work hard to add millions more to city revenues by expediting completion of projects already underway.

Skilled trade apprenticeship opportunities for residents of low- and middle-income San Francisco neighborhoods will be the cornerstone of my administration's strategy for building new infrastructure projects. I will work with local Joint Apprenticeship and Training Committees, unions, employers,s chools, and community based-organizations to recruit and place local residents into apprentice programs on development sites.

This paper describes 15 projects and policy initiatives that will rebuild the San Francisco economy through investment in critical infrastructure, from new neighborhoods like Mission Bay to workforce housing to the Third Street Light Rail to support for the arts economy. It proposes ways to attract new private investment to San Francisco through creating more efficiency and consistency in the permitting process, while protecting the health, safety, and character of San Francisco neighborhoods.

Because protecting the environment and public health is not only the right thing to do but is also good for business, this paper describes six important projects that will help to protect and improve San Francisco's environment and promote environmental justice, from closing the Hunter's Point Powerplant to creating "green building" incentives.

Employers know that an available and well-trained workforce is key to their business success. To support the city's efforts to attract and retain businesses in key growth sectors, I will ensure that San Francisco dedicates resources to programs that prepare our workforce for jobs in emerging or expanding industries such as life sciences and health care.

Finally, because small businesses comprise the majority of San Francisco companies, I will work to support these vital drivers of the San Francisco economy, by making it easier to apply for city contracts and improving the way the city processes sole-source contracts.

BUILDING A STRONG LOCAL ECONOMY

The recent economic downturn has been tough on San Francisco. The loss of technology jobs and related service jobs has hurt San Franciscans, as has the decrease in business and tourist travel following the September 11 terrorist attacks. Nearly seven percent of San Franciscans are unemployed, more than double the rate of three years ago. Over 20 percent of our city's office space is vacant, up from just three percent vacancy in 1999. Overall, the City lost nearly 10% of its workforce over the last two years. Not only are fewer San Franciscans working, but the lost tax revenue to the city has been a significant contributor to our current fiscal crisis.

In these difficult economic times, a mayor must act forcefully to turn the city economy around. I have a plan to rebuild San Francisco's economy by improving our infrastructure, creating jobs and housing, and investing in our workforce, neighborhoods, and small businesses.

The San Francisco Chamber of Commerce reported in 2001 that speeding construction of transit, infrastructure, and housing projects already in the pipeline would pump more than $2 billion into the San Francisco economy and create 15,000 jobs. My administration will make it a priority to seize these opportunities to rebuild our city's economy. We will make San Francisco the kind of city where cutting edge, world-class companies will want to headquarter, as they did in the past. I will also work hard to add millions more to city revenues by expediting completion of projects already underway.

Skilled trade apprenticeship opportunities for residents of low-and middle-income neighborhoods will be a cornerstone of my administration's implementation of development projects. Union apprenticeship programs in carpentry, electrical work, the machinists trade, bricklaying, ironwork and other building and construction trades provide a living wage and benefits to those in training, and the opportunity to access and succeed in jobs that provide high incomes and career advancement. I will work with local Joint Apprenticeship and Training Committees, unions, employers, and schools and community-based organizations in neighborhoods including Bayview Hunters Point and Visitacion Valley to recruit and place local residents into apprentice programs on development sites. It is critical that residents have the opportunity to benefit from development occurring in their own communities. Ensuring that more apprenticeship slots are funded before building begins, and that community residents are able to enter them, will advance the economy of our city for the short-and long-term.

INVESTMENT IN INFRASTRUCTURE WILL REBUILD SAN FRANCISCO'S ECONOMY

As mayor, I will invest in building critical new infrastructure for San Francisco, such as first-rate transportation systems and housing, and in rebuilding existing facilities, such as our vital water and wastewater systems. Public investment in building San Francisco will create jobs, improve services, and encourage private investment by firms who see the advantage of locating in a city with excellent public transit, roads, housing, and other infrastructure.

My economic development plan will:

• Place priority on development projects that improve transportation and housing opportunities for San Franciscans, and ensure accelerated implementation of those projects already approved by the city.

• Direct city agencies to streamline regulations and meet accelerated schedules for approving worthy new public and private projects, without compromising standards.

• Ensure protection of the environment and promote environmental justice for all neighborhoods.

• Roads, transportation hubs, and public transit are critical to supporting the distribution of goods and services and the ability of the workforce to reach jobs.

• The availability of housing for San Francisco's workforce is a key factor in the ability of companies to locate and do business here.

• Investment in critical infrastructure projects creates jobs for the workers who build them and for the people who will maintain and be employed in them.

• Investment in infrastructure creates a powerful multiplier effect: according to the San Francisco Center for Economic Development, every dollar spent in local public infrastructure adds an additional $1.50 to the economy, as the money paid for salaries and purchase of supplies is "re-spent" to purchase housing, food, clothing, and other goods and services.

Important infrastructure projects already approved by the city or San Francisco voters should move forward as quickly as possible to begin generating benefits for our economy. I will have the Office of Labor Standards Enforcement (OLSE) enforce all prevailing wage laws and go further to determine if the city can set up a dedicated funding mechanism for OLSE. My administration will not tolerate violation of the City's prevailing wage laws. I will make sure contractors and sub-contractors caught violating living wage and project labor agreements are prevented from participating in fast-tracked projects.

MISSION BAY: As mayor, I will be committed to continuing the successful creation of San Francisco's newest neighborhood. Located on the site of the old Southern Pacific rail yards, Mission Bay will include a 43-acre University of California campus (UCSF), 6,000 residential units, a public school, a 500-room hotel, 49 acres of open space, an extension of the 3rd Street light rail, and space for retail, research and development, light manufacturing, and offices. Creation of Mission Bay will employ thousands of workers and pump millions of dollars into the San Francisco economy. It will also support and nourish the growing life sciences industry in our city, which will provide exciting scientific innovations and a stable source of jobs at a range of skill levels for years to come.

HUNTERS POINT SHIPYARD: Under the 1997 Hunters Point Redevelopment Plan, this 500-acre former Navy shipyard will be converted into a vital new eastern San Francisco neighborhood. The plan calls for 1,600 housing units (nearly a third of which will be permanently affordable), millions of square feet of jobs-producing commercial development, educational and cultural facilities, and over 100 acres of open space. The Navy is undertaking significant work to eliminate pollution and environmental contamination from the site. Over the next five to ten years, the first phase of development of Hunters Point will pump several hundred million dollars into San Francisco and the Bayview Hunters Point neighborhood, and create over 2,000 jobs. As mayor, I will work with the community and our representatives in Congress to ensure the Navy completes its cleanup as quickly as possible and does not put the health of San Franciscans in jeopardy. I will also direct city agencies to expedite the planning and approval processes for development of this important new neighborhood.

WORKFORCE HOUSING: For the past several years, the San Francisco Chamber of Commerce has been investigating the impact of the Bay Area's housing affordability crisis on San Francisco's workforce - namely teachers, nurses, firefighters, and police officers. The Chamber has been concerned that the city's middle-income workers have been adversely impacted by rising rents and home prices and the lack of new housing built in the city. In particular, many employers have reported they find it very difficult to recruit and retain workers in San Francisco due to high housing costs. After commissioning a study to determine what policies other cities have successfully implemented to stimulate housing production, the Chamber is developing a workforce housing initiative for San Francisco. This measure is designed to stimulate the production of new housing and provide for new homeownership opportunities, and I will fully support this measure as it moves forward. Building new housing and increasing the number of homeowners in San Francisco not only benefits our economy through jobs in construction and construction-related industry, but will also increase tax revenue, neighborhood stability, and personal equity of new homeowners.

TREASURE ISLAND: San Francisco is finalizing plans to convert 500 picturesque acres in the middle of San Francisco Bay from a navy base into a new city neighborhood. This $400 million project will include 2,800 housing units, two hotels, a conference center, retail space, and 275 acres of parks, playing fields, wetlands, and other open space. The development of Treasure Island will create much-needed jobs, housing, and tax revenue for San Francisco. My administration will ensure careful oversight of this public-private partnership, so that public funds are spent wisely and environmental protections are followed.

TRANSBAY TERMINAL: San Francisco will vastly improve our transportation network and revitalize the South of Market area through construction of the new Transbay Terminal. This new facility will combine an intermodal bus and rail station with the extension of Caltrain from its current terminus at 4th and Townsend streets. Revitalization of the surrounding area will include 4,700 new housing units. This project is expected to break ground in 2005 and be completed by 2012.

OCTAVIA BOULEVARD: In March Caltrans and the city began the long-awaited demolition of the Central Freeway to make way for up to 900 units of new housing along a revitalized Octavia Boulevard. Approximately 50 percent of these housing units will be designated as affordable housing. Freeway demolition and housing construction will create hundreds of jobs and help the Hayes Valley neighborhood flourish.

HETCH HETCHY: San Francisco voters wisely chose last November to invest in providing safe and reliable drinking water for our city for years to come. Almost 100 years ago the "City That Knows How" built the Hetch Hetchy water system,an engineering marvel that provides our city with the highest quality drinking water in the world. By repairing and restoring Hetch Hetchy today, San Francisco will ensure our most precious and vital natural resource flows to the city through the next earthquake, the next economic boom, and the next 100 years. The restoration of Hetch Hetchy will create nearly a thousand jobs and pump more than $3.6 billion into the regional economy over the next eight years. As mayor, I will ensure the restoration of Hetch Hetchy is completed as quickly as possible. I will also insist on strict financial oversight and accountability for the public monies invested in this project. On April 8, 2003, I passed a resolution at the Board of Supervisors calling on the Public Utilities Commission to expedite this project, and to begin plans to execute a Project Labor Agreement with the laborers who will rebuild our water system.

BLOOMINGDALE'S: The $500 million restoration of the historic Emporium building on Market Street will create 2,300 permanent jobs and 1,100 construction jobs. It is expected to generate $14 million in annual tax revenues to the city, as well as $60 million for affordable housing over the 30-year term of the redevelopment project. This important project will connect Yerba Buena to Union Square and will revitalize the mid market area. The project will also provide $800,000 to the city's First Source Hiring program, which links low income residents who have passed through the city's workforce development system to entry level jobs and provides businesses with a pool of qualified, motivated applicants.

3rd STREET LIGHT RAIL: The city will create jobs and revitalize eastern neighborhoods by creating a light rail transit system along Third Street. The Third Street Light Rail will include 19 new stations as far south as Visitation Valley, as well as new stations along an underground subway at Moscone Center, Union Square, and Chinatown. This project will improve travel time, access, reliability, passenger comfort, and transit connections in the Third Street Corridor, and support economic development and revitalization in communities along the corridor. It will also reduce congestion in downtown San Francisco and the Third Street Corridor.

CRUISE SHIP TERMINAL AT PIERS 30/32: The San Francisco Port Commission in March approved a $246 million Cruise Terminal Project at Piers 30-32. The development will include berths for two ships, up to 325,000 square feet of office space, up to 190,000 square feet of retail and entertainment space, five acres of open space, and room for parking. An additional $88.5 million condominium at Beale and Bryant streets will add 140 units of housing to San Francisco. Construction of the terminal will ultimately pump $400 million into the San Francisco economy and create over 1000 jobs. Completion of the project will require approval from a myriad of city, state, and federal agencies, including the Planning Department, State Lands Commission, and the U.S. Army Corps of Engineers. My administration will work hard to ensure this important new engine for the San Francisco economy receives the proper approvals, and is constructed and operated in a way that protects the health of San Francisco Bay.

A NEW STADIUM FOR THE 49ers: A new stadium will help revitalize eastern neighborhoods in San Francisco by creating jobs and economic activity, provide new sales tax revenue for the city, and help bring the Superbowl to San Francisco. San Francisco voters passed two ballot initiatives in 1997 that laid the foundation for construction of a new stadium for the San Francisco 49ers and an adjacent retail mall, and authorized up to $100 million in lease revenue bonds to finance construction. The new stadium would pump $350 million into the San Francisco economy and create 1,300 jobs. Specifically, Proposition D called for the project to provide jobs for up to 1,000 persons on General Assistance who complete job-training programs, and to make a good faith effort to hire 50 percent of all construction workers and 25 percent of permanent mall and stadium employees from the Bayview Hunters Point community. I will work with the 49ers ownership and city departments to explore innovative ways to complete financing for this important project, and to streamline the process for the necessary permits and project approvals.

WATERFRONT YMCA AT PIERS 27-31: The Port Commission has approved a mixed-use development that will revitalize Piers 27-31 and create unparalleled recreational opportunities for the public along San Francisco's spectacular Northeast Waterfront. The project will include one of the nation's finest YMCAs, and offer a wide range of affordable and accessible recreational activities (including kayaking, sailing, team sports, and pedestrian access), retail, restaurants, site-sensitive office space, and open space. This project will add $260 million to the San Francisco economy and create 1,600 jobs.

LAGUNA HONDA HOSPITAL: San Francisco voters in 1999 passed a $299 million bond measure to fund the $428 million rebuilding of Laguna Honda Hospital. The original structure, which provides long term care and housing for 1200 elderly and disabled San Franciscans, opened in 1926 and is badly in need of renovation. The rebuilt hospital will provide many improvements that will enhance the quality of life and care for its residents. The new hospital must be adaptable to the future innovations in pharmacology and patient treatments. I will help ensure the facility will be built in a manner flexible enough to meet the changing nature of health care delivery services to the residents of Laguna Honda.

REDEVOLOPMENT OF SCHLAGE LOCK SITE: The Schlage Lock property, a 20-acre parcel located along Bayshore Boulevard in Visitacion Valley,represents a unique opportunity to transform an underutilized "brownfield" site into a vibrant new transit-oriented development. An extensive community planning process has resulted in a development concept that includes approximately 750 units of housing (both affordable and market rate) above a full service grocery store, other retail uses, and community facilities. As mayor, I will work to make the community's vision a reality, creating a catalyst for revitalization of the Bayshore Corridor, Leland Avenue and the wider Visitacion Valley community.

SUPPORT FOR THE ARTS ECONOMY: World-class arts and cultural institutions are a fundamental aspect of what makes San Francisco a great city. San Francisco is home to such noted institutions as the Opera, the Symphony, the Ballet, the Museum of Modern Art, the de Young, Yerba Buena Center for the Arts, and the Asian Art Museum. The City is also home to hundreds of other arts and cultural organizations, both large and small, and literally thousands of individual artists and performers. San Francisco is recognized as number one in the Nation for creativity on Professor Richard Florida's Creativity Index, an analytic tool that connects creativity to economic development. San Francisco attracts the nation's fast growing "creative class"- highly educated, creative individuals who "think outside the box," challenge norms and embrace diversity. One of the keys to economic growth is attracting and nurturing a talented workforce - one that will stimulate new ideas and new businesses.

The arts economy employs thousands of people and is a significant economic engine for the local economy, serving as one of San Francisco's "export industries" by attracting people from throughout the United States and the world who come to San Francisco to participate in arts and cultural activities and spend their dollars here in our restaurants, hotels and retail establishments. It is estimated that for every dollar we invest in the arts, at least four dollars are spent in our local economy, which supports additional jobs for residents and tax revenue for the City.

The rebuilding of the de Young Museum will restore one of San Francisco's jewels in the middle of Golden Gate Park. The new de Young will be a seismically safe building that provides a more unified and beautiful exhibition space, while preserving historic elements like the sphinxes and the Pool of Enchantment. A new underground parking garage will improve public access to the museum. Rebuilding the de Young is adding $400 million to the San Francisco economy and creating 1,000 jobs. My administration will work hard to ensure this project is completed on schedule in 2005.

An inspired rebuilding of the historic Academy of Sciences Building in Golden Gate Park will combine innovative new architecture with inventive exhibitions to make science more accessible and engaging for everyone. The project will add an estimated $370 million to the San Francisco economy and create many construction jobs. The new academy is expected to open to the public in 2008.

As mayor, I will continue to support local funding of the arts through the hotel tax fund and other sources of local support. I will also ensure we expedite important capital projects to enhance and expand our arts and cultural base, including the rebuilding of the de Young Museum and the California Academy of Arts and Sciences, along with new projects such as the International Museum of Women, the Museum of the African Diaspora, the Jewish Museum, the Mexican Museum, and the San Francisco History Museum, among others.

ATTRACT PRIVATE INVESTMENT THROUGH STREAMLINED REGULATIONS

While city oversight of development is essential to protect the health, safety, and character of San Francisco neighborhoods, overly burdensome regulations discourage private investment in San Francisco by increasing uncertainty and raising costs. Stifling regulations and ever-shifting priorities cost San Franciscans jobs and cost the city tax revenue. My administration will work to streamline the approval process for worthy projects, while ensuring environmental and safety protections are not compromised.

I will create a Public-Private Transactions Team in the Mayor's Office of Economic Development (MOED) to coordinate the negotiations for all major developments in the city. This approach will build on the successful practice employed by the city to develop Mission Bay, Bloomingdale's, the Hunters Point Shipyard, Octavia Boulevard, and the Piers 30/32 Cruise Terminal. The team will work as a partnership with private developers and the relevant city departments (MUNI, the Port, etc.) to case-manage projects, eliminate roadblocks, and ensure individual departments work responsively to move projects through the system as rapidly as possible.

This team will help San Francisco compete with other cities for attracting new projects to San Francisco by working with project sponsors, from the initial site selection process through obtaining permits, financing, and project approval. Many other cities, including Los Angeles and San Diego, have had great success using inter-agency teams to spur local development. San Francisco can and will do the same under my administration.

All of these projects are focused on leveraging substantial new private investment with a minimum of public sector investment. As mayor, I will focus on projects that maximize returns to the city in the form of job creation, housing and revenue for the City's coffers.

PROTECT THE ENVIRONMENT AND PROMOTE ENVIRONMENTAL JUSTICE

Economic development in San Francisco must proceed in a way that not only protects the environment, but also restores polluted areas. Policies that clean San Francisco's air, land, and water will protect the health of city residents, return land to productive use, and generate new revenues for the city. San Francisco prides itself on being a leader in the environmental movement, yet we could be doing much more in our own backyard. As mayor I will promote sustainable practices in the management and development of the city's energy, water and wastewater resources, and develop incentives for the private sector to do the same. Protecting the environment and public health is not only the right thing to do - it's good business.

BROWNFIELDS PROGRAM: There are over 100 sites in Bayview Hunters Point, and numerous sites in other neighborhoods, that lie fallow due to the presence of toxic contamination. Such sites are a blight on these communities and generate little or no tax revenue for the City. In the last several years, innovative tools have emerged that would enable these sites to be effectively cleaned up and put back to productive use. Advances in cleanup technology, changes in state and federal laws, the widespread availability of Brownfields grants and loans, and sophisticated environmental insurance products have all contributed to significant Brownfields development throughout the country. San Francisco could leverage significant state and federal funding opportunities and facilitate cleanup and reuse. I will establish a point person on Brownfields projects in MOED to bring in state and federal grants and to send the message to prospective developers of these sites that their projects will be prioritized as they make their way through the city's sometimes byzantine planning and permitting process.

HUNTERS POINT POWERPLANT: This fossil fuel burning plant is one of the dirtiest in the State of California, and is a suspected culprit for several health problems for Bayview residents, including asthma. Closing down this plant will be one of my top priorities. I will work hard to make sure San Francisco government promotes energy efficiency and identifies new, cleaner power generation methods in order to enable us to close the Hunters Point Powerplant. The city can meet its future electricity needs by building cleaner in-city generation, implementing aggressive energy efficiency and peak load management, and supporting completion of planned transmission upgrades. I will carefully consider the recommendations of the Electricity Resource Plan, a joint effort by San Francisco's Environment Department and Public Utilities Commission. Some of the renewable energy projects proposed in the Plan include a football field-sized solar photovoltaic system at the new Moscone Center, and a second solar installation at the Southeast wastewater treatment plant, as well as wind turbines placed outside the city in the Altamont Pass. Our power security and public health depend on finding cleaner, more reliable energy sources for San Francisco.

SEWER SYSTEM: In order to protect public health and the health of San Francisco Bay, this city must upgrade its aging sewer system. The Public Utilities Commission (PUC) will soon begin a public process to develop a "clean water master plan" that will become the roadmap for conducting this important public infrastructure project. The rebuild will likely include a much-needed upgrade of the southeast treatment plant, as well as pipe replacement, in order to improve capacity, reduce odors, and reduce potential for flooding. As mayor, I will work with the PUC, as well as with neighborhood and environmental groups, to create a plan that rebuilds our sewers to the highest possible standards. I will also direct the PUC to investigate innovative treatment technologies, such as the use of smaller treatment plants and wetlands technology.

GREEN BUILDING INCENTIVES: Innovations in "green building" techniques will have a significant impact on how our built environment impacts the natural environment. New breakthroughs in building technologies have the potential to significantly reduce the city's reliance on fossil fuel power plants, reduce demands on the city's water and sewer systems, and generally improve the quality of our environment. Already, many city projects such as the Moscone Center expansion and the Laguna Honda Hospital replacement project use the latest in green building techniques. As mayor, I will work with key stakeholders to develop and implement programs that create incentives for the private sector to follow our lead in this area.

SOLAR BONDS: In November 2001 San Francisco voters approved $100 million in revenue bonds to promote renewable energy and energy efficiency. The bonds will pay for solar panels and other energy efficiency measures for public buildings, and be financed by energy savings generated by the projects. The first project to be implemented will be a 675 kW system on the roof of the Moscone Convention Center. Next will be an innovative $2.5 million solar rooftop on the southeast clean water facility. Clean, renewable, and reliable energy sources are good for the environment and good for the San Francisco economy. Because the City of San Francisco is backing the bonds, I will require San Franciscans be employed on all solar project installations.

PARK BONDS: In 2000 San Francisco voters overwhelmingly authorized $110 million in bonds to revitalize San Francisco's neighborhood parks. The bond leverages additional funds for neighborhood parks groups for over 90 important park restoration projects, including Ocean View Recreation Center, Harvey Milk Recreation Center, and Moscone Playground. Clean, safe, and dynamic parks are an important economic development tool - they make San Francisco a more beautiful, vibrant place to live, and thereby help attract a high quality workforce and the companies that wish to employ them. My administration will accelerate the construction timeline of already-planned park revitalization projects to maximize the economic development potential of the parks bond.

To further expand the economic potential of parks renovation, I will continue to promote and support innovative efforts like the Playground Campaign. This model partnership between the Neighborhood Parks Council and the San Francisco Recreation and Park Department harnesses community ingenuity to reduce the costs of playground renovation. The campaign fosters community involvement in every aspect of renovating a playground, from neighborhood fundraising, design, and site preparation, to the actual installation of the equipment on Build Day. The Playground Campaign has successfully leveraged the resources of corporate sponsors and local neighborhoods to create cost-effective, destination playgrounds for children while building a sense of neighborhood stewardship and community. By aggressively leveraging the parks bond while fast-tracking construction, my administration will provide San Franciscans the parks they deserve while promoting the economic vitality our City needs.

WORKFORCE DEVELOPMENT

Employers know an available and well-trained workforce is vital to their business success. To support the city's efforts to attract and retain businesses in key growth sectors, I will ensure San Francisco dedicates resources to programs that prepare our workforce, including our youth workforce, for jobs in emerging or expanding industries such as life sciences and health care (surgical technology and nursing positions are in strong demand), among others.

Workforce development and economic development should be linked. Job training dollars must be invested strategically in growth industries, and in the education and training organizations proven capable of preparing the city's most economically-disadvantaged workers to obtain and retain jobs in those sectors. Currently, there are several city departments that fund job training programs, including the Mayor's Office of Housing, the Department of Human Services, and the Mayor's Office of Community Development. My office will work with the Workforce Investment Board to coordinate these funds and ensure money is spent supporting programs that prepare new and low income workers for jobs that will enable their families to achieve self-sufficiency. I will require a percentage of the city's job training funds be used to create an "Employer Incentive Fund," which employers in targeted industries can access in partnership with nonprofits or City College to finance employee training.

I will expand opportunities to offer employers funding for a range of activities, including customized employee training, wage subsidies, and tax incentives to train, hire, and promote workers who live in San Francisco. Packaging incentives for the business community will support short-term business attraction and retention efforts, and promote the long-term economic growth in the targeted industries that will ensure San Francisco's prosperity into the future. I will also look for ways to support and expand matched earning programs, such as Individual Development Accounts, which will help low income San Franciscans save money, build assets, and enter the financial mainstream. Personal income tax credits help economically disadvantaged workers supplement their salaries, stay employed and support their families. I believe in a State Earned Income Tax Credit, and will explore the possibility of implementing an EITC at the local level. Finally, I will explore creating a city position dedicated to accessing and managing state and federal funds. In a climate of declining resources, the city must take the lead in securing outside funds to support important initiatives such as worker retraining and brownfields monies.

NEIGHBORHOOD/SMALL BUSINESS REVITALIZATION

San Francisco's economy is supported in large part by knowledge-based industries like finance, investment, real estate, telecommunications, and media, as well as tourism. We must therefore be a place attractive to the educated, mobile workers in those industries, as well as to companies that employ them. Working hard to create a clean, safe, and beautiful city is about more than just aesthetics - rather, it is a key component of a successful economic development strategy, and requires priority attention from city officials and community leaders.

While a clean and green city supports sustainable economic development, a dirty city promotes a downward spiral of crime, lowered property values, and reduced economic opportunity. As described in the well-known "broken window theory," illegal dumpers, drug peddlers, and other criminals are less likely to operate in neighborhoods that appear safe and organized. My administration will work hard to keep San Francisco streets clean and safe.

NEIGHBORHOOD IMPROVEMENTS: Vital neighborhoods where small businesses can flourish are essential to building a strong economy in San Francisco. My office will offer technical support to merchants interested in setting up Business Improvement Districts (BIDs) to help finance improvements to commercial areas. I will support programs that provide technical assistance, training, and loans to help entrepreneurs start small businesses, including Mayor's Office of Community Development small business lending programs, grants from the Local Initiative Support Corporation (a national nonprofit), and other nonprofit programs that encourage local entrepreneurship. I will expand the city's façade improvement program to targeted areas that have low per capita retail sales rates, high crime rates and high unemployment and poverty rates. I will also work with merchant and community groups to strengthen neighborhood improvement programs such as DPW's "Adopt-a-Street" program and other clean street initiatives, as well as Police Department community policing efforts.

LIBRARY IMPROVEMENTS: San Francisco voters in 2000 approved a $106 million bond to finance renovations at San Francisco's 26 branch libraries. The bond will fund critical capital improvements to make the branches seismically safe, provide essential new technologies such as DSL Internet access, and improve accessibility for all San Franciscans by bringing the facilities into compliance with the Americans with Disabilities Act. The bond will also finance new library branches in Glen Park, Ingleside, Portola, Visitation Valley, and Mission Bay. In addition, it will fund a new central distribution point for books, which will increase library efficiencies, freeing up funds for increased purchases of new books. Improvements to San Francisco's branch libraries are an important part of creating a well-trained workforce and a vibrant community. My administration will work to support the speedy implementation of the projects financed by this initiative.

SMALL BUSINESS: No economic recovery plan is feasible without a commitment to help small businesses, which make up the vast majority of companies in San Francisco. There is much city government can and should do to help these vital drivers of our city economy. As mayor, I will streamline the process for registering with the city as a "Minority/Woman/Local Business Enterprise (M/W/LBE)" in order to make it easier for more small businesses to become eligible to bid on city contracts. I will direct the Small Business Commission to implement an aggressive program to publicize and promote opportunities to bid for city contracts, as well as recruit more small businesses to register as M/W/LBEs. I will direct city agencies that contract with small businesses to provide all or a portion of payments up front, which will better help those small companies with small cash flow bid for and complete city contracts. We can unbundle large city contracts to make it easier for small businesses to bid on parts of a project. We can also raise the bid discount given to all M/W/LBEs from 5% to 10%. In addition, I have called for measures, recommended by the Office of the Controller, that will enable the City to more effectively and efficiently process and track information about its sole source contracts. Those measures include: changing the procedures to require departments to submit all existing sole source contracts for review within a reasonable time period so that existing contracts can be reviewed under the new guidelines; developing a computerized sole source database that includes all relevant information for each contract; reviewing existing contracts to determine if services provided under sole source contracts can now be bid competitively; and beginning competitive solicitation processes for services provided under contracts that have been in place for 10 years or longer. I hope to expand further on a plan for small business in a future policy brief.

CONCLUSION

As mayor of San Francisco I will meet the challenge of these difficult times with innovative and workable plans to get our economy moving again. I will focus on improving San Francisco's infrastructure, creating jobs and housing, and investing in our workforce, our neighborhoods, and our small businesses. Strong infrastructure, well-trained employees, and vital neighborhoods are essential to attracting private investment to the city, generating tax revenue, and making San Francisco a center of economic activity. I will work hard to harness the tremendous potential for economic development in our city and make San Francisco an even more strong, vibrant, and sustainable community.

FOR MORE INFORMATION To receive policy updates or for more information, please contact the Newsom for Mayor campaign at newsom4mayor@yahoo.com.

SOURCES: "City electricity plan details critical energy shortfall." SF Environment. August 20, 2002.

Fine Arts Museums of San Francisco. http://www.thinker.org

"Major Projects Ready to Support the San Francisco Economy." San Francisco Chamber of Commerce, October 18, 2001

Mayor's Office of Economic Development. http://www.sfgov.org/site/moed_index.asp

"News analysis projects 1,770 jobs, $11.1 million in tax revenues from Mills/YMCA piers project." The Mills. March 21, 2001.

Temple, James. "Anchors aweigh for S.F. cruise ship terminal." San Francisco Business Times. March 31, 2003.

Vote Solar.http://www.votesolar.org