What Do Mass Layoffs in the Tech Industry Mean for the Future of Mid-Market?
'That's Just Really Sad': Supervisors Lament Results of Twitter Tax Break
Welding Sparks May Have Caused S.F. Mid-Market Fire in Old Hotel
New Questions About Benefit of Tax Breaks for S.F. Tech Firms
Blog Beat: San Jose Employee Layoffs; New SF Tech Boom; Herb Caen's 1985 View of Mid-Market
Burning Man to Move Headquarters to Mid-Market; Audio: Larry Harvey, Ed Lee
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FM","link":"/"}},"news_11931311":{"type":"posts","id":"news_11931311","meta":{"index":"posts_1591205157","site":"news","id":"11931311","score":null,"sort":[1668115170000]},"guestAuthors":[],"slug":"what-do-mass-layoffs-in-the-tech-industry-mean-for-the-future-of-mid-market","title":"What Do Mass Layoffs in the Tech Industry Mean for the Future of Mid-Market?","publishDate":1668115170,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>Mass layoffs at Twitter under Elon Musk are putting an unknown number of Bay Area residents out of a job and placing the future of the company's San Francisco headquarters in the mid-Market neighborhood in question. The recent upheaval and chaos surrounding Musk’s Twitter takeover are also raising concerns about the future of mid-Market itself.\u003c/p>\n\u003cp>Twitter's move to mid-Market in 2011 sparked dramatic changes in the struggling neighborhood, which in 2010 had the highest commercial vacancy rate in San Francisco. Many buildings — including the one Twitter moved into, originally a Depression-era showroom known as the Western Furniture Exchange and Merchandise Mart — had experienced nearly 50 years of office vacancies.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11753060,forum_2010101891137,forum_2010101891200\"]In a push to revitalize the district's economy by attracting new businesses to the area, the San Francisco Board of Supervisors in 2011 approved a controversial six-year payroll tax break for companies in the neighborhood; the policy was championed by leaders including then-Mayor Ed Lee. It would come to be known as \"the Twitter tax break,\" and quickly drew criticism from residents who saw it as corporate welfare.\u003c/p>\n\u003cp>\"[We wanted to see] greater activation of that corridor, attracting business and jobs … building a more robust local economy for our small businesses that were located on the mid-Market corridor,\" said former District 6 Supervisor Jane Kim, who backed the legislation, in an interview with KQED’s Tara Siler.\u003c/p>\n\u003cp>\"The hope was that we would attract more workers, more residents into an area that had felt desolate and wasn't attracting a ton of commuters,\" she said. \"Ultimately, we were successful — Twitter did attract a number of businesses to the mid-Market corridor when they decided to move in, and [it] did spur a lot of residential development in that area.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Now, with \u003ca href=\"https://www.nytimes.com/2022/11/04/technology/elon-musk-twitter-layoffs.html\">Elon Musk laying off an estimated 50% of Twitter staff\u003c/a> — along with \u003ca href=\"https://fortune.com/2022/11/03/tech-company-layoffs-are-a-recession-signal-apple-stripe-lyft-amazon-twitter/\">other major layoffs\u003c/a> at \u003ca href=\"https://www.kqed.org/news/11931727/meta-layoffs-11000-jobs-mark-zuckerberg-responsibility\">tech companies in the Bay Area\u003c/a> and beyond — the future of mid-Market is uncertain.\u003c/p>\n\u003cfigure id=\"attachment_11931830\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022.jpg\">\u003cimg class=\"size-medium wp-image-11931830\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-800x533.jpg\" alt=\"the Twitter building\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The Twitter building in San Francisco on Nov. 7, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Well, it's certainly a net negative when our fastest-growing industry is beginning layoffs,” said Kim. “That being said, I don't believe we need to be sounding the alarm bells. And I don't think any of us ever thought that the incredible boom that we saw between 2012 and 2020 would continue indefinitely. There was always a sense that a market correction was coming, and this is certainly the market correction.\u003c/p>\n\u003cp>\"I think the question is, how big will this recession be, and how big will the impacts of the layoffs continue to be here in San Francisco?\"\u003c/p>\n\u003cp>Despite a range of concerns regarding new management at Twitter and the future of the neighborhood, current District 6 Supervisor Matt Dorsey sees an upside to Musk’s acquisition of Twitter and what it means for mid-Market.\u003c/p>\n\u003cp>“I know that there's a lot of big global issues about Elon Musk's takeover of Twitter, what it's going to mean for public debate and for democracy,” said Dorsey. “It's concerning whenever there is any kind of a layoff, let alone a mass layoff like this, where we're talking about 784 employees in one San Francisco office.”\u003c/p>\n\u003cfigure id=\"attachment_11931836\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931836\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-800x533.jpg\" alt=\"a sign that says 'good things come to those who stay' on an apartment building\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A sign for an apartment building across from the Twitter building on Market Street in San Francisco on Nov. 7, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\"But there's also a neighborhood here, and we want people to come back to work because we want small businesses to thrive,\" he said. \"So there is, I think, a silver lining to the bad news about the mass layoffs, as Elon Musk has made clear that he wants Twitter employees to come back to the office.\"\u003c/p>\n\u003cp>Others think a completely new approach is needed for mid-Market — one that is less reliant on tech companies and the traditional 9-to-5 work crowd.\u003c/p>\n\u003cp>“I think the model that we really need to be moving toward is having a much more mixed-use downtown,” said Honey Mahogany, who is running against Dorsey for District 6 supervisor. (As of Wednesday afternoon, \u003ca href=\"https://www.kqed.org/elections/results/sanfrancisco#district-6\">Dorsey led by about 1,400 points\u003c/a>.) “I think that if we make downtown more residential mixed-use with office and also nightlife, arts and culture and all the things that make the south of Market so special, that will create a thriving neighborhood that actually supports those businesses that are there — not just 9-to-5, but seven days a week.”\u003c/p>\n\u003cfigure id=\"attachment_11931831\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931831\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-800x533.jpg\" alt=\"an office building with a sign that it's available for sale\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A building available for lease on Market Street in the mid-Market neighborhood of San Francisco on Nov. 9, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Two closely affiliated organizations — the Mid-Market Business Association and the Mid-Market Foundation — have sought to revitalize and transform the area, starting with a focus on safety. A pilot program of safety ambassadors is aimed at making the area attractive not just economically but socially and artistically, said Steve Gibson, executive director of both MMBA and the MMF — turning it into a vibrant, multifaceted community where people live, work and play.\u003c/p>\n\u003cp>“Right now we have 40% vacancy in storefronts, and that’s bad,” said Gibson. “But it’s also a lot of opportunity to place new activities and new businesses. We just received a $50,000 grant from the city to work on this. We are looking at the strengths of Market, which has always had a strong presence of the arts. We’re working that into the fabric more and attracting more of those businesses and elements. We believe that Market's going to be a place that you engage in.”\u003c/p>\n\u003cfigure id=\"attachment_11931832\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931832\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-800x533.jpg\" alt=\"a man in sunglasses walks down a city street\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Steve Gibson, executive director of the Mid-Market Business Association and the Mid-Market Foundation, walks on Market Street in the mid-Market area of San Francisco on Nov. 9, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Gibson plans on addressing the current high levels of storefront vacancies with more restaurants, music and art businesses.\u003c/p>\n\u003cp>“We have to do it differently than it has been done before. You have to think out of the box when it comes to mid-Market,” said Gibson. “There’s got to be a lot more creativity and imagination, and we have to think how [mid-Market] is going to be different from Union Square, different from downtown. The offering has to be unique to attract people to spend time in mid-Market.”\u003c/p>\n\u003cp>If Honey Mahogany is elected supervisor, her vision might complement that of Gibson and the work the MMBA and MMF are doing.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Steve Gibson, executive director, Mid-Market Business Association and Mid-Market Foundation\"]'You have to think out of the box when it comes to mid-Market. There's got to be a lot more creativity and imagination.'[/pullquote]“It's interesting, because even though we're seeing sort of the exodus of some types of businesses or tech, I think there's a tremendous opportunity to actually grow in other sectors,” said Mahogany. \"For example, right now we see the intense pressures brought on by climate change, and we have solutions that are in the making right here in the Bay Area. We have a growing sector in the climate tech industry, and some of it is based here in San Francisco.\"\u003c/p>\n\u003cp>Unfortunately, said Mahogany, some of those companies are moving out of San Francisco and to places like the Peninsula due to zoning and other issues. \"Really taking this opportunity to encourage those companies to stay here in San Francisco and expand might actually change things for us,\" said Mahogany. \"Not only would it provide a great tax base for the city, but it would also … require people to be there in person.\"\u003c/p>\n\u003cp>That said, Steve Gibson still sees the big tech businesses as crucial to the fabric of mid-Market.\u003c/p>\n\u003cp>\"We'd love to have the large tech offices back. Those are customers. Some of them will be back. A lot are downsizing,\" he said. \"We miss them. But again, we have to look for other customer bases.\"\u003c/p>\n\u003cfigure id=\"attachment_11931833\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931833\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-800x533.jpg\" alt=\"the front of a restaurant\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Chai Bar in the mid-Market neighborhood of San Francisco on Nov. 9, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Scott Lowe, owner of Chai Bar, located at 1019 Market Street, says his business won't be affected as much by the mass layoffs as it was by the pandemic. When tech companies allowed employees to work from home, he said, it hit businesses hard.\u003c/p>\n\u003cp>\"The mid-Market neighborhood shut down in 2020 and it hasn’t come back,\" said Lowe. \"Sales are a third of what they were ... When you're in a business like ours, we don’t necessarily draw tech workers from five blocks away from Twitter headquarters. Our impact is from the two-block radius of our space.\"\u003c/p>\n\u003cp>When foot traffic from tourists and tech employees in the area essentially stopped during 2020, Lowe was able to renegotiate the lease for Chai Bar with an asset manager from Deutsche Bank, who own the building.\u003c/p>\n\u003cp>\"We were losing more money being open than being closed,\" said Lowe. \"At one point, our gross sales was less than $250. Paying staff costs twice that amount in a day.\"\u003c/p>\n\u003cp>Looking ahead, Lowe is optimistic about the future of mid-Market, and says he's already seeing changes to a neighborhood that has faced issues with crime and homelessness.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\"There are tourists coming around again,\" he said. \"It's coming back.\"\u003c/p>\n\n","blocks":[],"excerpt":"With chaos at Twitter and staff cuts underway at other tech companies, the embattled San Francisco neighborhood — once touted as the city's miniature answer to Silicon Valley — is again full of vacant offices and storefronts, while local leaders debate the best path to revitalization.","status":"publish","parent":0,"modified":1668120683,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":30,"wordCount":1623},"headData":{"title":"What Do Mass Layoffs in the Tech Industry Mean for the Future of Mid-Market? | KQED","description":"With chaos at Twitter and staff cuts underway at other tech companies, the embattled San Francisco neighborhood — once touted as the city's miniature answer to Silicon Valley — is again full of vacant offices and storefronts, while local leaders debate the best path to revitalization.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"What Do Mass Layoffs in the Tech Industry Mean for the Future of Mid-Market?","datePublished":"2022-11-10T21:19:30.000Z","dateModified":"2022-11-10T22:51:23.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11931311 https://ww2.kqed.org/news/?p=11931311","disqusUrl":"https://ww2.kqed.org/news/2022/11/10/what-do-mass-layoffs-in-the-tech-industry-mean-for-the-future-of-mid-market/","disqusTitle":"What Do Mass Layoffs in the Tech Industry Mean for the Future of Mid-Market?","excludeFromSiteSearch":"Include","path":"/news/11931311/what-do-mass-layoffs-in-the-tech-industry-mean-for-the-future-of-mid-market","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Mass layoffs at Twitter under Elon Musk are putting an unknown number of Bay Area residents out of a job and placing the future of the company's San Francisco headquarters in the mid-Market neighborhood in question. The recent upheaval and chaos surrounding Musk’s Twitter takeover are also raising concerns about the future of mid-Market itself.\u003c/p>\n\u003cp>Twitter's move to mid-Market in 2011 sparked dramatic changes in the struggling neighborhood, which in 2010 had the highest commercial vacancy rate in San Francisco. Many buildings — including the one Twitter moved into, originally a Depression-era showroom known as the Western Furniture Exchange and Merchandise Mart — had experienced nearly 50 years of office vacancies.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","postid":"news_11753060,forum_2010101891137,forum_2010101891200"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>In a push to revitalize the district's economy by attracting new businesses to the area, the San Francisco Board of Supervisors in 2011 approved a controversial six-year payroll tax break for companies in the neighborhood; the policy was championed by leaders including then-Mayor Ed Lee. It would come to be known as \"the Twitter tax break,\" and quickly drew criticism from residents who saw it as corporate welfare.\u003c/p>\n\u003cp>\"[We wanted to see] greater activation of that corridor, attracting business and jobs … building a more robust local economy for our small businesses that were located on the mid-Market corridor,\" said former District 6 Supervisor Jane Kim, who backed the legislation, in an interview with KQED’s Tara Siler.\u003c/p>\n\u003cp>\"The hope was that we would attract more workers, more residents into an area that had felt desolate and wasn't attracting a ton of commuters,\" she said. \"Ultimately, we were successful — Twitter did attract a number of businesses to the mid-Market corridor when they decided to move in, and [it] did spur a lot of residential development in that area.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Now, with \u003ca href=\"https://www.nytimes.com/2022/11/04/technology/elon-musk-twitter-layoffs.html\">Elon Musk laying off an estimated 50% of Twitter staff\u003c/a> — along with \u003ca href=\"https://fortune.com/2022/11/03/tech-company-layoffs-are-a-recession-signal-apple-stripe-lyft-amazon-twitter/\">other major layoffs\u003c/a> at \u003ca href=\"https://www.kqed.org/news/11931727/meta-layoffs-11000-jobs-mark-zuckerberg-responsibility\">tech companies in the Bay Area\u003c/a> and beyond — the future of mid-Market is uncertain.\u003c/p>\n\u003cfigure id=\"attachment_11931830\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022.jpg\">\u003cimg class=\"size-medium wp-image-11931830\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-800x533.jpg\" alt=\"the Twitter building\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/005_KQED_Twitter_11072022.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">The Twitter building in San Francisco on Nov. 7, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Well, it's certainly a net negative when our fastest-growing industry is beginning layoffs,” said Kim. “That being said, I don't believe we need to be sounding the alarm bells. And I don't think any of us ever thought that the incredible boom that we saw between 2012 and 2020 would continue indefinitely. There was always a sense that a market correction was coming, and this is certainly the market correction.\u003c/p>\n\u003cp>\"I think the question is, how big will this recession be, and how big will the impacts of the layoffs continue to be here in San Francisco?\"\u003c/p>\n\u003cp>Despite a range of concerns regarding new management at Twitter and the future of the neighborhood, current District 6 Supervisor Matt Dorsey sees an upside to Musk’s acquisition of Twitter and what it means for mid-Market.\u003c/p>\n\u003cp>“I know that there's a lot of big global issues about Elon Musk's takeover of Twitter, what it's going to mean for public debate and for democracy,” said Dorsey. “It's concerning whenever there is any kind of a layoff, let alone a mass layoff like this, where we're talking about 784 employees in one San Francisco office.”\u003c/p>\n\u003cfigure id=\"attachment_11931836\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931836\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-800x533.jpg\" alt=\"a sign that says 'good things come to those who stay' on an apartment building\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60032_001_KQED_MidMarketSF_11072022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A sign for an apartment building across from the Twitter building on Market Street in San Francisco on Nov. 7, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\"But there's also a neighborhood here, and we want people to come back to work because we want small businesses to thrive,\" he said. \"So there is, I think, a silver lining to the bad news about the mass layoffs, as Elon Musk has made clear that he wants Twitter employees to come back to the office.\"\u003c/p>\n\u003cp>Others think a completely new approach is needed for mid-Market — one that is less reliant on tech companies and the traditional 9-to-5 work crowd.\u003c/p>\n\u003cp>“I think the model that we really need to be moving toward is having a much more mixed-use downtown,” said Honey Mahogany, who is running against Dorsey for District 6 supervisor. (As of Wednesday afternoon, \u003ca href=\"https://www.kqed.org/elections/results/sanfrancisco#district-6\">Dorsey led by about 1,400 points\u003c/a>.) “I think that if we make downtown more residential mixed-use with office and also nightlife, arts and culture and all the things that make the south of Market so special, that will create a thriving neighborhood that actually supports those businesses that are there — not just 9-to-5, but seven days a week.”\u003c/p>\n\u003cfigure id=\"attachment_11931831\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931831\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-800x533.jpg\" alt=\"an office building with a sign that it's available for sale\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60027_018_KQED_MidMarketSF_11092022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A building available for lease on Market Street in the mid-Market neighborhood of San Francisco on Nov. 9, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Two closely affiliated organizations — the Mid-Market Business Association and the Mid-Market Foundation — have sought to revitalize and transform the area, starting with a focus on safety. A pilot program of safety ambassadors is aimed at making the area attractive not just economically but socially and artistically, said Steve Gibson, executive director of both MMBA and the MMF — turning it into a vibrant, multifaceted community where people live, work and play.\u003c/p>\n\u003cp>“Right now we have 40% vacancy in storefronts, and that’s bad,” said Gibson. “But it’s also a lot of opportunity to place new activities and new businesses. We just received a $50,000 grant from the city to work on this. We are looking at the strengths of Market, which has always had a strong presence of the arts. We’re working that into the fabric more and attracting more of those businesses and elements. We believe that Market's going to be a place that you engage in.”\u003c/p>\n\u003cfigure id=\"attachment_11931832\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931832\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-800x533.jpg\" alt=\"a man in sunglasses walks down a city street\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60014_002_KQED_MidMarketSF_11092022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Steve Gibson, executive director of the Mid-Market Business Association and the Mid-Market Foundation, walks on Market Street in the mid-Market area of San Francisco on Nov. 9, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Gibson plans on addressing the current high levels of storefront vacancies with more restaurants, music and art businesses.\u003c/p>\n\u003cp>“We have to do it differently than it has been done before. You have to think out of the box when it comes to mid-Market,” said Gibson. “There’s got to be a lot more creativity and imagination, and we have to think how [mid-Market] is going to be different from Union Square, different from downtown. The offering has to be unique to attract people to spend time in mid-Market.”\u003c/p>\n\u003cp>If Honey Mahogany is elected supervisor, her vision might complement that of Gibson and the work the MMBA and MMF are doing.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'You have to think out of the box when it comes to mid-Market. There's got to be a lot more creativity and imagination.'","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Steve Gibson, executive director, Mid-Market Business Association and Mid-Market Foundation","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“It's interesting, because even though we're seeing sort of the exodus of some types of businesses or tech, I think there's a tremendous opportunity to actually grow in other sectors,” said Mahogany. \"For example, right now we see the intense pressures brought on by climate change, and we have solutions that are in the making right here in the Bay Area. We have a growing sector in the climate tech industry, and some of it is based here in San Francisco.\"\u003c/p>\n\u003cp>Unfortunately, said Mahogany, some of those companies are moving out of San Francisco and to places like the Peninsula due to zoning and other issues. \"Really taking this opportunity to encourage those companies to stay here in San Francisco and expand might actually change things for us,\" said Mahogany. \"Not only would it provide a great tax base for the city, but it would also … require people to be there in person.\"\u003c/p>\n\u003cp>That said, Steve Gibson still sees the big tech businesses as crucial to the fabric of mid-Market.\u003c/p>\n\u003cp>\"We'd love to have the large tech offices back. Those are customers. Some of them will be back. A lot are downsizing,\" he said. \"We miss them. But again, we have to look for other customer bases.\"\u003c/p>\n\u003cfigure id=\"attachment_11931833\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut.jpg\">\u003cimg class=\"size-medium wp-image-11931833\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-800x533.jpg\" alt=\"the front of a restaurant\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2022/11/RS60017_005_KQED_MidMarketSF_11092022-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Chai Bar in the mid-Market neighborhood of San Francisco on Nov. 9, 2022. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Scott Lowe, owner of Chai Bar, located at 1019 Market Street, says his business won't be affected as much by the mass layoffs as it was by the pandemic. When tech companies allowed employees to work from home, he said, it hit businesses hard.\u003c/p>\n\u003cp>\"The mid-Market neighborhood shut down in 2020 and it hasn’t come back,\" said Lowe. \"Sales are a third of what they were ... When you're in a business like ours, we don’t necessarily draw tech workers from five blocks away from Twitter headquarters. Our impact is from the two-block radius of our space.\"\u003c/p>\n\u003cp>When foot traffic from tourists and tech employees in the area essentially stopped during 2020, Lowe was able to renegotiate the lease for Chai Bar with an asset manager from Deutsche Bank, who own the building.\u003c/p>\n\u003cp>\"We were losing more money being open than being closed,\" said Lowe. \"At one point, our gross sales was less than $250. Paying staff costs twice that amount in a day.\"\u003c/p>\n\u003cp>Looking ahead, Lowe is optimistic about the future of mid-Market, and says he's already seeing changes to a neighborhood that has faced issues with crime and homelessness.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"There are tourists coming around again,\" he said. \"It's coming back.\"\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11931311/what-do-mass-layoffs-in-the-tech-industry-mean-for-the-future-of-mid-market","authors":["11784","11812"],"categories":["news_1758","news_8"],"tags":["news_28321","news_3897","news_28420","news_6553","news_1181","news_346"],"featImg":"news_11931823","label":"news"},"news_11753060":{"type":"posts","id":"news_11753060","meta":{"index":"posts_1591205157","site":"news","id":"11753060","score":null,"sort":[1559938727000]},"guestAuthors":[],"slug":"thats-just-really-sad-supervisors-lament-results-of-twitter-tax-break","title":"'That's Just Really Sad': Supervisors Lament Results of Twitter Tax Break","publishDate":1559938727,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>It seems unlikely that San Francisco will ever again undertake a corporate tax break like the one that allowed companies to avoid paying payroll taxes in exchange for moving to and investing in the city's Mid-Market neighborhood over the last decade.\u003c/p>\n\u003cp>\"This policy was poor policy that was poorly implemented by the city,\" said Supervisor Gordon Mar at a committee hearing on Thursday to discuss the community and economic benefits of the so-called Twitter tax break. \"It really just resulted in a handout to the tune of $70 million to a small number of corporations.\"\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400;\">[pullquote size='small' align='right' citation='Supervisor Gordon Mar']'[This policy] really just resulted in a handout to the tune of $70 million to a small number of corporations.'[/pullquote]\u003c/span>\u003c/p>\n\u003cp>The tax credit, officially known as the Central Market/Tenderloin Payroll Tax Exclusion, was championed by city leaders, including then-Mayor Ed Lee, when it passed in 2011 as a way to revitalize the dilapidated Mid-Market and Tenderloin areas -- and simultaneously keeping and attracting corporate tenants like Twitter, which was threatening to move to Brisbane at the time.\u003c/p>\n\u003cp>In exchange, those tech companies were supposed to invest in the community and provide \"robust community benefits,\" in the words of Supervisor Matt Haney, who represents the area and called for the post-mortem hearing on the credit after it expired last month.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>But the consensus from supervisors throughout Thursday's hearing, as they heard reports from several city departments on the tax break's impacts, was that the tech companies did not deliver those benefits, in part because the legislation that created the credit did not specifically outline what those benefits should be.\u003c/p>\n\u003cp>\"They got to decide what was important and how they were going to benefit the community,\" said Supervisor Vallie Brown of the companies that took advantage of the tax break, \"and I think that's just really sad because they didn't know the community, and they came in and said, 'This is what we're going to do.' \"\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400;\">[pullquote size='small' align='right' citation='Supervisor Vallie Brown']\"They got to decide what was important and how they were going to benefit the community, and I think that's just really sad because they didn't know the community, and they came in and said, 'This is what we're going to do.' \"[/pullquote]\u003c/span>\u003c/p>\n\u003cp>Ted Egan, the city's chief economist, told supervisors that the city lost out on about $70 million in payroll taxes because of the credit, but that it's hard to tease out what amount of economic benefit in the area can be attributed to the credit since a lot of other factors — including improvements to the overall economy and increased housing costs — have changed since it went into effect in 2012.\u003c/p>\n\u003cp>\"I would note that the area was not known as a location for large technology companies before, and now it is,\" Egan said. \"And that includes businesses that have received the tax credit and businesses like Uber and Dolby that were not in buildings that received the tax credit.\"\u003c/p>\n\u003cp>But he added that the economic impacts of the community benefits that were supposed to go along with the tax credit were probably \"relatively small.\"\u003c/p>\n\u003cp>This was the main point that supervisors returned to over and over again during the extended hearing: The tax break did not seemingly deliver on its promise to give back to the community in a meaningful way and to put a dent in the neighborhood's vacancy and homelessness problems.\u003c/p>\n\u003cp>They grilled representatives from several city departments, particularly the city administrator's office, which was responsible for overseeing the community benefits program, to provide evidence of tangible community benefits.\u003c/p>\n\u003cp>City administrator spokesman Bill Barnes provided several anecdotal examples of corporate philanthropy in the area, including Twitter's\u003ca href=\"https://hoodline.com/2015/02/twitter-s-neighbornest-community-space-to-open-this-summer\" target=\"_blank\" rel=\"noopener\"> NeighborNest program\u003c/a>, but supervisors wanted more specifics and a better plan moving forward on how to think about corporate responsibility that doesn't, in Haney's words, \"rely on hope and prayers.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"If we continue to do it this way, we're going to keep getting what we get,\" said Haney. \"A lot of feel-good stuff and a lot of impacts on the community that are often not positive.\"\u003c/p>\n\n","blocks":[],"excerpt":"The payroll tax holiday succeeded in keeping and attracting new companies to San Francisco's Mid-Market neighborhood. But supervisors say the community benefits that were supposed to come with it never happened.","status":"publish","parent":0,"modified":1559947906,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":17,"wordCount":712},"headData":{"title":"'That's Just Really Sad': Supervisors Lament Results of Twitter Tax Break | KQED","description":"The payroll tax holiday succeeded in keeping and attracting new companies to San Francisco's Mid-Market neighborhood. But supervisors say the community benefits that were supposed to come with it never happened.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"'That's Just Really Sad': Supervisors Lament Results of Twitter Tax Break","datePublished":"2019-06-07T20:18:47.000Z","dateModified":"2019-06-07T22:51:46.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11753060 https://ww2.kqed.org/news/?p=11753060","disqusUrl":"https://ww2.kqed.org/news/2019/06/07/thats-just-really-sad-supervisors-lament-results-of-twitter-tax-break/","disqusTitle":"'That's Just Really Sad': Supervisors Lament Results of Twitter Tax Break","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/2019/06/Shafer2wayTwitterTax.mp3","audioTrackLength":239,"path":"/news/11753060/thats-just-really-sad-supervisors-lament-results-of-twitter-tax-break","audioDuration":239000,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>It seems unlikely that San Francisco will ever again undertake a corporate tax break like the one that allowed companies to avoid paying payroll taxes in exchange for moving to and investing in the city's Mid-Market neighborhood over the last decade.\u003c/p>\n\u003cp>\"This policy was poor policy that was poorly implemented by the city,\" said Supervisor Gordon Mar at a committee hearing on Thursday to discuss the community and economic benefits of the so-called Twitter tax break. \"It really just resulted in a handout to the tune of $70 million to a small number of corporations.\"\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400;\">\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'[This policy] really just resulted in a handout to the tune of $70 million to a small number of corporations.'","name":"pullquote","attributes":{"named":{"size":"small","align":"right","citation":"Supervisor Gordon Mar","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/span>\u003c/p>\n\u003cp>The tax credit, officially known as the Central Market/Tenderloin Payroll Tax Exclusion, was championed by city leaders, including then-Mayor Ed Lee, when it passed in 2011 as a way to revitalize the dilapidated Mid-Market and Tenderloin areas -- and simultaneously keeping and attracting corporate tenants like Twitter, which was threatening to move to Brisbane at the time.\u003c/p>\n\u003cp>In exchange, those tech companies were supposed to invest in the community and provide \"robust community benefits,\" in the words of Supervisor Matt Haney, who represents the area and called for the post-mortem hearing on the credit after it expired last month.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But the consensus from supervisors throughout Thursday's hearing, as they heard reports from several city departments on the tax break's impacts, was that the tech companies did not deliver those benefits, in part because the legislation that created the credit did not specifically outline what those benefits should be.\u003c/p>\n\u003cp>\"They got to decide what was important and how they were going to benefit the community,\" said Supervisor Vallie Brown of the companies that took advantage of the tax break, \"and I think that's just really sad because they didn't know the community, and they came in and said, 'This is what we're going to do.' \"\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400;\">\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"\"They got to decide what was important and how they were going to benefit the community, and I think that's just really sad because they didn't know the community, and they came in and said, 'This is what we're going to do.' \"","name":"pullquote","attributes":{"named":{"size":"small","align":"right","citation":"Supervisor Vallie Brown","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/span>\u003c/p>\n\u003cp>Ted Egan, the city's chief economist, told supervisors that the city lost out on about $70 million in payroll taxes because of the credit, but that it's hard to tease out what amount of economic benefit in the area can be attributed to the credit since a lot of other factors — including improvements to the overall economy and increased housing costs — have changed since it went into effect in 2012.\u003c/p>\n\u003cp>\"I would note that the area was not known as a location for large technology companies before, and now it is,\" Egan said. \"And that includes businesses that have received the tax credit and businesses like Uber and Dolby that were not in buildings that received the tax credit.\"\u003c/p>\n\u003cp>But he added that the economic impacts of the community benefits that were supposed to go along with the tax credit were probably \"relatively small.\"\u003c/p>\n\u003cp>This was the main point that supervisors returned to over and over again during the extended hearing: The tax break did not seemingly deliver on its promise to give back to the community in a meaningful way and to put a dent in the neighborhood's vacancy and homelessness problems.\u003c/p>\n\u003cp>They grilled representatives from several city departments, particularly the city administrator's office, which was responsible for overseeing the community benefits program, to provide evidence of tangible community benefits.\u003c/p>\n\u003cp>City administrator spokesman Bill Barnes provided several anecdotal examples of corporate philanthropy in the area, including Twitter's\u003ca href=\"https://hoodline.com/2015/02/twitter-s-neighbornest-community-space-to-open-this-summer\" target=\"_blank\" rel=\"noopener\"> NeighborNest program\u003c/a>, but supervisors wanted more specifics and a better plan moving forward on how to think about corporate responsibility that doesn't, in Haney's words, \"rely on hope and prayers.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"If we continue to do it this way, we're going to keep getting what we get,\" said Haney. \"A lot of feel-good stuff and a lot of impacts on the community that are often not positive.\"\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11753060/thats-just-really-sad-supervisors-lament-results-of-twitter-tax-break","authors":["11260"],"categories":["news_1758","news_8","news_13","news_248"],"tags":["news_1181","news_346"],"featImg":"news_11753097","label":"news"},"news_143853":{"type":"posts","id":"news_143853","meta":{"index":"posts_1591205157","site":"news","id":"143853","score":null,"sort":[1407339672000]},"guestAuthors":[],"slug":"cal-osha-investigates-s-f-mid-market-fire-that-injures-8-workers","title":"Welding Sparks May Have Caused S.F. Mid-Market Fire in Old Hotel","publishDate":1407339672,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_143872\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/08/Renoir-Hotel-fire.jpg\">\u003cimg class=\"size-medium wp-image-143872\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/08/Renoir-Hotel-fire-640x480.jpg\" alt=\"A three-alarm fire Monday damaged the shuttered Renoir Hotel in San Francisco's Mid-Market area. (Scott Morris/Bay City News)\" width=\"640\" height=\"480\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A three-alarm fire Monday damaged the shuttered Renoir Hotel in San Francisco's Mid-Market area. (Scott Morris/Bay City News)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Update, Tuesday 8:30 a.m.:\u003c/strong>\u003c/p>\n\u003cp>Sparks from welding might have led to a fire near San Francisco's Civic Center on Monday afternoon, state officials said.\u003c/p>\n\u003cp>A spokeswoman for the state's Division of Occupational Safety and Health said Cal/OSHA is investigating two companies involved in renovation work at the site of the fire, the former Renoir Hotel.\u003c/p>\n\u003cp>Kathleen Hennessy, a communications officer at the agency, said inspectors are looking at the project's general contractor, San Francisco-based Pacific Structures, and a subcontractor, Oakland-based Emerald Steel.\u003c/p>\n\u003cp>\"The Cal/OSHA investigation will be looking at the safety measures in place for both of these companies,\" Hennessy said. \"We'll need to have evidence of an injury and illness prevention plan.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Pacific Structures has been the subject of six Cal/OSHA investigations over the past five years. It was cited only once.\u003c/p>\n\u003cp>Cal/OSHA officials believe crews hired by Emerald Steel were the ones conducting welding work before the fire.\u003c/p>\n\u003cp>Representatives from both companies have not returned calls for comment.\u003c/p>\n\u003cp>\u003cstrong>Original post:\u003c/strong>\u003c/p>\n\u003cp>A three-alarm fire at an old hotel under renovation near San Francisco's Civic Center on Monday has prompted investigations by two city agencies and the state's workplace safety regulator.\u003c/p>\n\u003cp>Those probes come five months after a \u003ca href=\"http://ww2.kqed.org/news/2014/03/11/4-alarm-fire-san-francisco/\" target=\"_blank\">massive blaze destroyed\u003c/a> a large apartment project in the Mission Bay neighborhood. After that fire city officials issued warnings to construction crews throughout San Francisco to obey safety rules. In fact, the battle over who is to blame in that much larger blaze recently intensified.\u003c/p>\n\u003cp>On Monday afternoon it took firefighters almost three hours to get control of the fire at the site of the former Renoir Hotel at 45 McAllister St. The fire, which was reported at 12:03 p.m., sent smoke billowing into the air from the eight-story structure and affected traffic on nearby Market Street.\u003c/p>\n\u003cp>Fire officials said eight workers were injured, seven of them hospitalized with smoke inhalation. The injuries prompted the state's Division of Occupational Safety and Health to investigate the work site, \u003ca href=\"http://www.dir.ca.gov/dosh/\" target=\"_blank\">Cal/OSHA\u003c/a> officials said.\u003c/p>\n\u003cp>The San Francisco Fire Department has also launched an investigation. Despite reports that the fire might have started from welding on the second floor of the building, SFFD spokeswoman Mindy Talmadge said, \"I have not heard any possible causes yet.\"\u003c/p>\n\u003cp>Fire Chief Joanne Hayes-White called the director of the city's Department of Building Inspection, Tom Hui, the agency's top official, according to DBI spokesman Bill Strawn. Hui, a licensed structural engineer, went to the site of the fire that afternoon along with building inspector Tam Chiu, Strawn said.\u003c/p>\n\u003cp>The San Francisco Chronicle reported on plans for a $30 million renovation of the shuttered Renoir Hotel:\u003c/p>\n\u003cblockquote>\u003cp>The renovation of the Renoir Hotel is considered a centerpiece of the revitalization of the Mid-Market neighborhood. The project is being built by the Kor Group, which made its mark in New York and Los Angeles with the trendy Viceroy hotels.\u003c/p>\n\u003cp>The new Renoir, which has not yet been named, will include a 4,500-square-foot roof deck bar and lounge. In addition, the Kor Group is planning three restaurants and bars on the ground floor.\u003c/p>\u003c/blockquote>\n\u003cp>Monday's fire occurred almost five months after a massive blaze destroyed a large condominium project under construction in the city's Mission Bay neighborhood. Fire officials have said the March 11 fire was accidental but may have been caused by sparks from welding or grinding.\u003c/p>\n\u003cp>The fire department issued a $1,000 citation to a subcontractor on that project on Fourth and China Basin streets, near AT&T Park. Investigators said the firm's workers failed to keep a required \"fire watch\" in the area where they had been welding and grinding before the blaze.\u003c/p>\n\u003cp>That company, Petaluma-based T.C. Steel, appealed the citation in June, saying the fire department's findings arose from confusion or mistranslation when a Cantonese-speaking welder was interviewed by investigators the day after the fire that caused $40 million in damage.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The first hearing in that dispute took place last Tuesday. In that hearing, the fire department was represented by Alicia Cabrera, a deputy attorney in the city attorney's office. T.C. Steel was represented by Daniel Serot, a Walnut Creek-based lawyer specializing in civil litigation. Cabrera and Serot presented arguments before Claude Dawson Ames, a hearing officer appointed by the city controller's office. They are scheduled to deliver a second round of arguments on Sept. 3.\u003c/p>\n\n","blocks":[],"excerpt":"Former Renoir Hotel near Civic Center under renovation. Second big construction fire in city in 5 months.","status":"publish","parent":0,"modified":1407359795,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":24,"wordCount":780},"headData":{"title":"Welding Sparks May Have Caused S.F. Mid-Market Fire in Old Hotel | KQED","description":"Former Renoir Hotel near Civic Center under renovation. Second big construction fire in city in 5 months.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Welding Sparks May Have Caused S.F. Mid-Market Fire in Old Hotel","datePublished":"2014-08-06T15:41:12.000Z","dateModified":"2014-08-06T21:16:35.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"143853 http://ww2.kqed.org/news/?p=143853","disqusUrl":"https://ww2.kqed.org/news/2014/08/06/cal-osha-investigates-s-f-mid-market-fire-that-injures-8-workers/","disqusTitle":"Welding Sparks May Have Caused S.F. Mid-Market Fire in Old Hotel","customPermalink":"2014/08/05/cal-osha-probes-san-francisco-mid-market-fire-eight-workers-injured/","path":"/news/143853/cal-osha-investigates-s-f-mid-market-fire-that-injures-8-workers","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_143872\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/08/Renoir-Hotel-fire.jpg\">\u003cimg class=\"size-medium wp-image-143872\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2014/08/Renoir-Hotel-fire-640x480.jpg\" alt=\"A three-alarm fire Monday damaged the shuttered Renoir Hotel in San Francisco's Mid-Market area. (Scott Morris/Bay City News)\" width=\"640\" height=\"480\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A three-alarm fire Monday damaged the shuttered Renoir Hotel in San Francisco's Mid-Market area. (Scott Morris/Bay City News)\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Update, Tuesday 8:30 a.m.:\u003c/strong>\u003c/p>\n\u003cp>Sparks from welding might have led to a fire near San Francisco's Civic Center on Monday afternoon, state officials said.\u003c/p>\n\u003cp>A spokeswoman for the state's Division of Occupational Safety and Health said Cal/OSHA is investigating two companies involved in renovation work at the site of the fire, the former Renoir Hotel.\u003c/p>\n\u003cp>Kathleen Hennessy, a communications officer at the agency, said inspectors are looking at the project's general contractor, San Francisco-based Pacific Structures, and a subcontractor, Oakland-based Emerald Steel.\u003c/p>\n\u003cp>\"The Cal/OSHA investigation will be looking at the safety measures in place for both of these companies,\" Hennessy said. \"We'll need to have evidence of an injury and illness prevention plan.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Pacific Structures has been the subject of six Cal/OSHA investigations over the past five years. It was cited only once.\u003c/p>\n\u003cp>Cal/OSHA officials believe crews hired by Emerald Steel were the ones conducting welding work before the fire.\u003c/p>\n\u003cp>Representatives from both companies have not returned calls for comment.\u003c/p>\n\u003cp>\u003cstrong>Original post:\u003c/strong>\u003c/p>\n\u003cp>A three-alarm fire at an old hotel under renovation near San Francisco's Civic Center on Monday has prompted investigations by two city agencies and the state's workplace safety regulator.\u003c/p>\n\u003cp>Those probes come five months after a \u003ca href=\"http://ww2.kqed.org/news/2014/03/11/4-alarm-fire-san-francisco/\" target=\"_blank\">massive blaze destroyed\u003c/a> a large apartment project in the Mission Bay neighborhood. After that fire city officials issued warnings to construction crews throughout San Francisco to obey safety rules. In fact, the battle over who is to blame in that much larger blaze recently intensified.\u003c/p>\n\u003cp>On Monday afternoon it took firefighters almost three hours to get control of the fire at the site of the former Renoir Hotel at 45 McAllister St. The fire, which was reported at 12:03 p.m., sent smoke billowing into the air from the eight-story structure and affected traffic on nearby Market Street.\u003c/p>\n\u003cp>Fire officials said eight workers were injured, seven of them hospitalized with smoke inhalation. The injuries prompted the state's Division of Occupational Safety and Health to investigate the work site, \u003ca href=\"http://www.dir.ca.gov/dosh/\" target=\"_blank\">Cal/OSHA\u003c/a> officials said.\u003c/p>\n\u003cp>The San Francisco Fire Department has also launched an investigation. Despite reports that the fire might have started from welding on the second floor of the building, SFFD spokeswoman Mindy Talmadge said, \"I have not heard any possible causes yet.\"\u003c/p>\n\u003cp>Fire Chief Joanne Hayes-White called the director of the city's Department of Building Inspection, Tom Hui, the agency's top official, according to DBI spokesman Bill Strawn. Hui, a licensed structural engineer, went to the site of the fire that afternoon along with building inspector Tam Chiu, Strawn said.\u003c/p>\n\u003cp>The San Francisco Chronicle reported on plans for a $30 million renovation of the shuttered Renoir Hotel:\u003c/p>\n\u003cblockquote>\u003cp>The renovation of the Renoir Hotel is considered a centerpiece of the revitalization of the Mid-Market neighborhood. The project is being built by the Kor Group, which made its mark in New York and Los Angeles with the trendy Viceroy hotels.\u003c/p>\n\u003cp>The new Renoir, which has not yet been named, will include a 4,500-square-foot roof deck bar and lounge. In addition, the Kor Group is planning three restaurants and bars on the ground floor.\u003c/p>\u003c/blockquote>\n\u003cp>Monday's fire occurred almost five months after a massive blaze destroyed a large condominium project under construction in the city's Mission Bay neighborhood. Fire officials have said the March 11 fire was accidental but may have been caused by sparks from welding or grinding.\u003c/p>\n\u003cp>The fire department issued a $1,000 citation to a subcontractor on that project on Fourth and China Basin streets, near AT&T Park. Investigators said the firm's workers failed to keep a required \"fire watch\" in the area where they had been welding and grinding before the blaze.\u003c/p>\n\u003cp>That company, Petaluma-based T.C. Steel, appealed the citation in June, saying the fire department's findings arose from confusion or mistranslation when a Cantonese-speaking welder was interviewed by investigators the day after the fire that caused $40 million in damage.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The first hearing in that dispute took place last Tuesday. In that hearing, the fire department was represented by Alicia Cabrera, a deputy attorney in the city attorney's office. T.C. Steel was represented by Daniel Serot, a Walnut Creek-based lawyer specializing in civil litigation. Cabrera and Serot presented arguments before Claude Dawson Ames, a hearing officer appointed by the city controller's office. They are scheduled to deliver a second round of arguments on Sept. 3.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/143853/cal-osha-investigates-s-f-mid-market-fire-that-injures-8-workers","authors":["258"],"programs":["news_6944"],"categories":["news_8"],"tags":["news_1181"],"featImg":"news_143872","label":"news_6944"},"news_117933":{"type":"posts","id":"news_117933","meta":{"index":"posts_1591205157","site":"news","id":"117933","score":null,"sort":[1384354809000]},"guestAuthors":[],"slug":"new-questions-about-benefit-of-tax-breaks-for-mid-market-tech-firms","title":"New Questions About Benefit of Tax Breaks for S.F. Tech Firms ","publishDate":1384354809,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>\u003cstrong>By Yoona Ha\u003cbr>\nSan Francisco Public Press\u003c/strong>\u003c/p>\n\u003cfigure id=\"attachment_117935\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003cimg class=\"size-full wp-image-117935\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/11/Twitter-building.jpg\" alt=\"Twitter's IPO on November 7 has some San Franciscans asking whether the tech giant and others like it are sharing any of their success with the neighborhood. (Olivia Hubert-Allen/KQED)\" width=\"640\" height=\"359\">\u003cfigcaption class=\"wp-caption-text\">Twitter's IPO on November 7 has some San Franciscans asking whether the tech giant and others like it are sharing any of their success with the neighborhood. (Olivia Hubert-Allen/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>Last year, 14 San Francisco technology companies received $1.9 million in tax breaks for setting up shop in the mid-Market Street area. Supporters said it was a \u003ca href=\"http://www.nbcbayarea.com/news/tech/Twitter-Central-Market-Neighborhood-IPO-San-Francisco-Mayor-Ed-Lee-230586501.html\">good investment\u003c/a>, bringing economic development and jobs to an economically depressed strip in the core of the city.\u003c/p>\n\u003cp>The zone is certainly coming back to life, and the companies that benefited now employ more than 2,700 workers. But it is less clear that the deal resulted in entry-level jobs for residents of the hardscrabble neighborhood — one of the goals most sought by skeptics of the tax break.\u003c/p>\n\u003cp>The largest six of the companies promised a list of community benefits that included an effort to identify qualified job seekers in the Tenderloin and mid-Market area. But the agreements are vaguely worded, the companies have been slow to report their progress to the city, and most were unresponsive to direct questions about employment practices.\u003c/p>\n\u003cp>Advocates for neighborhood employment say the community benefit agreements — instituted nine months after the April 2011 approval of the tax breaks — lack teeth. The agreements urge companies to forge “meaningful engagement” with the neighborhood by doing things like exploring community training and hiring initiatives, donating computer equipment to schools, encouraging employee tutoring and appointing community liaisons.\u003ca href=\"http://sfpublicpress.org/\">\u003cimg class=\"size-medium wp-image-117940 alignright\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/11/SFPubPress-logo-300x115.jpg\" alt=\"SFPubPress-logo\" width=\"300\" height=\"115\">\u003c/a>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>But the City Administrator’s Office requires compliance with only 80 percent of the memorandums’ provisions. While “binding,” the documents call for a “good-faith effort” by companies to follow through on their community obligations.\u003c/p>\n\u003cp>One provision asks the companies to “partner” with a program that identifies entry-level jobs for local residents. But signatories — many of whom were late in filing quarterly reports to the city this year — are under no obligation to report whether that resulted in any actual jobs.\u003c/p>\n\u003cp>Supervisor John Avalos, a skeptic about the tax breaks, said the loose wording means tech firms got something for nothing. He said their promises to the community in exchange for reduced taxes were “barely worth the paper they're written on.”\u003c/p>\n\u003caside class=\"pullquote alignleft\">'There is this belief that if you support big businesses, then the benefits will trickle down, which doesn’t actually do much for the community.'\u003c/aside>\n\u003cp>Within three months of taking office in January 2011, Mayor Ed Lee worked with the Board of Supervisors to pass a payroll tax exclusion law for technology businesses in the mid-Market and Tenderloin areas. It allows the companies to avoid payroll taxes on new hires for six years. Under the subsequent deal on community benefits, companies with payrolls of more than $1 million get the tax break only if they enter a community benefit agreement with the city.\u003c/p>\n\u003cp>Some stakeholders remain unconvinced that the agreements are sufficient. Mara Blitzer, a longtime neighborhood social services advocate, said that while she appreciated technology companies’ community volunteering efforts, other stipulations, especially local hiring, are more important.\u003c/p>\n\u003cp>“The community really had high hopes for what the agreement was going to do, but I think, frankly, it isn’t the strongest,” said Blitzer, who until this year was a senior project manager at the nonprofit \u003ca href=\"http://www.tndc.org/\">Tenderloin Neighborhood Development Corporation\u003c/a>, and has since taken a government job.\u003c/p>\n\u003cp>The agreements call on companies to use the \u003ca href=\"http://www.workforcedevelopmentsf.org/businessservices/index.php?option=com_content&view=article&id=80&Itemid=85\">First Source Hiring Program\u003c/a>, which was set up in 1998 to funnel “economically disadvantaged” city residents into entry-level jobs. The program is primarily geared toward major city-funded contracts, public works and business activities needing building permits or planning approval. The community benefit agreements ask technology firms to “partner” with First Source.\u003c/p>\n\u003cp>Representatives from some of the biggest tax break recipients — Twitter, Zoosk, 21Tech and Yammer — declined to comment on the status of their agreements. Zendesk, a customer service software firm, and One Kings Lane, a home decor company, did respond to questions. Both said they had not hired any employees through First Source.\u003c/p>\n\u003cp>Raquel Redondiez, a legislative aide to Avalos, said one of the problems is a lack of follow-up by the city. Until this year, she said, First Source had no budget for a dedicated enforcement staff.\u003c/p>\n\u003cp>The Board of Supervisors created the payroll tax exclusion after Twitter indicated it was considering moving its expanded headquarters out of San Francisco. The breaks applied to any business within a tax zone area straddling Market Street from Sixth Street to Van Ness Avenue, including some side streets.\u003c/p>\n\u003cfigure id=\"attachment_117945\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003cimg class=\"size-medium wp-image-117945\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/11/twitter-IPO-300x168.jpg\" alt=\"A Twitter banner hung outside the New York Stock Exchange when Twitter debuted its stock on November 7. (Andrew Burton/Getty Images)\" width=\"300\" height=\"168\">\u003cfigcaption class=\"wp-caption-text\">A Twitter banner hung outside the New York Stock Exchange when Twitter debuted its stock on November 7. (Andrew Burton/Getty Images) \u003ccite>(Andrew Burton/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The idea behind the community benefit agreements was to mitigate gentrification as tech expansion raises rents for neighboring businesses, residents and public amenities.\u003c/p>\n\u003cp>The companies are required to report the status of their agreements quarterly to the City Administrator’s Office. Incomplete provisions must be carried out the following year, said Bill Barnes, the office’s project manager.\u003c/p>\n\u003cp>But Avalos said the community benefit agreements were weak because the city created them after passing the tax exemption. That left little room for negotiation with technology firms.\u003c/p>\n\u003cp>“It could have been stronger if we were building our tax breaks contingent on stronger community benefit agreements,” he said. “If the agreement comes afterward, then obviously it’s not going to be as strong as it could have been.”\u003c/p>\n\u003cp>The requirements should be sharpened, said Dina Hilliard, executive director of the North of Market/Tenderloin Community Benefit District, a nonprofit group providing beautification and safety services.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'Unfortunately, we can’t mandate them to hire locally, because the neighborhood might not have the skilled candidates these companies want.'\u003c/aside>\n\u003cp>“The existing agreements clearly are not utilized in a way that is customized to each company’s strengths,” Hilliard said. “Unfortunately, we can’t mandate them to hire locally, because the neighborhood might not have the skilled candidates these companies want.”\u003c/p>\n\u003cp>For many low-skilled neighborhood residents, the education and experience qualifications for entry-level jobs may be too strict. Some neighborhood job candidates lack regular access to computers, hampering the online application process.\u003c/p>\n\u003cp>\u003cstrong>Few Entry-Level Jobs\u003c/strong>\u003c/p>\n\u003cp>The Central Market and \u003ca href=\"http://www.sfgsa.org/index.aspx?page=5005\">Tenderloin Area Citizens Advisory Committee\u003c/a>, which advises the mayor, Board of Supervisors and the city administrator, agreed that a strict hiring mandate would be impractical, because Zendesk requires highly skilled workers, said company spokeswoman Tiffany Apczynski. She said most office jobs require advanced degrees and years of experience. In any event, First Source would not help with neighborhood hiring, since it is available to all city residents.\u003c/p>\n\u003cp>Instead, Zendesk decided to fulfill its “obligation to the neighborhood” under its agreement by offering two paid marketing internships for clients of local nonprofit groups such as the \u003ca href=\"http://www.vydc.org/\">Vietnamese Youth Development Center\u003c/a>.\u003c/p>\n\u003cp>The company also pledged to work with \u003ca href=\"http://www.workforcedevelopmentsf.org/trainingprograms/index.php?option=com_content&view=article&id=92&Itemid=85\">TechSF\u003c/a>, a citywide workforce training initiative, to host networking events for employment trainees. It has invested $15,000 in community event sponsorships, and says it is on pace to spend about $120,000 in the community this year.\u003c/p>\n\u003cp>One Kings Lane has identified entry-level positions in customer service that could be filled locally, spokeswoman Stephanie Pettinati said.\u003c/p>\n\u003cp>But Avalos sounded frustrated by the paucity of job opportunities for locals. He said he would push for an overhaul of local hiring laws.\u003c/p>\n\u003cp>“As far as we’ve heard, there’s never been any kind of penalty for someone who doesn’t follow the First Source Ordinance,” Avalos said. “There is this belief that if you support big businesses, then the benefits will trickle down, which doesn’t actually do much for the community.”\u003c/p>\n\u003cp>Hilliard questioned whether community benefit agreements were even good ideas in the long run: “I want the city to sit down with the company and come up with a customized plan on how they are going to provide community benefits.”\u003c/p>\n\u003cp>\u003ca href=\"http://www.brightlinedefense.org/\">Brightline Defense Projec\u003c/a>t, a nonprofit organization based in SoMa that promotes environmental, economic and social sustainability in low-income neighborhoods, is pushing for reforms to require more than just “good faith” efforts to make local hires.\u003c/p>\n\u003cp>In 2010, Avalos sponsored one such successful effort. The ordinance mandated that an increasing percentage of city residents be hired for city-funded construction projects.\u003c/p>\n\u003cp>Joshua Arce, Brightline Defense’s executive director, said the city has been “rolling out a red carpet” for technology companies through special tax treatment.\u003c/p>\n\u003cp>Hiring programs, he said, should require “job guarantees and a track record.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003ca href=\"http://sfpublicpress.org/news/2013-11/twitter-other-tech-companies-get-sf-tax-breaks-but-show-little-progress-hiring-in-neighborhood\">This article\u003c/a> first appeared in San Francisco Public Press, a KQED News Associate\u003c/p>\n\n","blocks":[],"excerpt":"Despite payroll tax deal, firms don't appear to have followed through on pact to hire local residents. ","status":"publish","parent":0,"modified":1384369386,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":37,"wordCount":1492},"headData":{"title":"New Questions About Benefit of Tax Breaks for S.F. Tech Firms | KQED","description":"Despite payroll tax deal, firms don't appear to have followed through on pact to hire local residents. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"New Questions About Benefit of Tax Breaks for S.F. Tech Firms ","datePublished":"2013-11-13T15:00:09.000Z","dateModified":"2013-11-13T19:03:06.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"117933 http://ww2.kqed.org/news/?p=117933","disqusUrl":"https://ww2.kqed.org/news/2013/11/13/new-questions-about-benefit-of-tax-breaks-for-mid-market-tech-firms/","disqusTitle":"New Questions About Benefit of Tax Breaks for S.F. Tech Firms ","customPermalink":"2013/11/12/how-can-mid-market-tech-companies-include-the-neighborhood-in-their-success/","path":"/news/117933/new-questions-about-benefit-of-tax-breaks-for-mid-market-tech-firms","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cstrong>By Yoona Ha\u003cbr>\nSan Francisco Public Press\u003c/strong>\u003c/p>\n\u003cfigure id=\"attachment_117935\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003cimg class=\"size-full wp-image-117935\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/11/Twitter-building.jpg\" alt=\"Twitter's IPO on November 7 has some San Franciscans asking whether the tech giant and others like it are sharing any of their success with the neighborhood. (Olivia Hubert-Allen/KQED)\" width=\"640\" height=\"359\">\u003cfigcaption class=\"wp-caption-text\">Twitter's IPO on November 7 has some San Franciscans asking whether the tech giant and others like it are sharing any of their success with the neighborhood. (Olivia Hubert-Allen/KQED)\u003c/figcaption>\u003c/figure>\n\u003cp>Last year, 14 San Francisco technology companies received $1.9 million in tax breaks for setting up shop in the mid-Market Street area. Supporters said it was a \u003ca href=\"http://www.nbcbayarea.com/news/tech/Twitter-Central-Market-Neighborhood-IPO-San-Francisco-Mayor-Ed-Lee-230586501.html\">good investment\u003c/a>, bringing economic development and jobs to an economically depressed strip in the core of the city.\u003c/p>\n\u003cp>The zone is certainly coming back to life, and the companies that benefited now employ more than 2,700 workers. But it is less clear that the deal resulted in entry-level jobs for residents of the hardscrabble neighborhood — one of the goals most sought by skeptics of the tax break.\u003c/p>\n\u003cp>The largest six of the companies promised a list of community benefits that included an effort to identify qualified job seekers in the Tenderloin and mid-Market area. But the agreements are vaguely worded, the companies have been slow to report their progress to the city, and most were unresponsive to direct questions about employment practices.\u003c/p>\n\u003cp>Advocates for neighborhood employment say the community benefit agreements — instituted nine months after the April 2011 approval of the tax breaks — lack teeth. The agreements urge companies to forge “meaningful engagement” with the neighborhood by doing things like exploring community training and hiring initiatives, donating computer equipment to schools, encouraging employee tutoring and appointing community liaisons.\u003ca href=\"http://sfpublicpress.org/\">\u003cimg class=\"size-medium wp-image-117940 alignright\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/11/SFPubPress-logo-300x115.jpg\" alt=\"SFPubPress-logo\" width=\"300\" height=\"115\">\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But the City Administrator’s Office requires compliance with only 80 percent of the memorandums’ provisions. While “binding,” the documents call for a “good-faith effort” by companies to follow through on their community obligations.\u003c/p>\n\u003cp>One provision asks the companies to “partner” with a program that identifies entry-level jobs for local residents. But signatories — many of whom were late in filing quarterly reports to the city this year — are under no obligation to report whether that resulted in any actual jobs.\u003c/p>\n\u003cp>Supervisor John Avalos, a skeptic about the tax breaks, said the loose wording means tech firms got something for nothing. He said their promises to the community in exchange for reduced taxes were “barely worth the paper they're written on.”\u003c/p>\n\u003caside class=\"pullquote alignleft\">'There is this belief that if you support big businesses, then the benefits will trickle down, which doesn’t actually do much for the community.'\u003c/aside>\n\u003cp>Within three months of taking office in January 2011, Mayor Ed Lee worked with the Board of Supervisors to pass a payroll tax exclusion law for technology businesses in the mid-Market and Tenderloin areas. It allows the companies to avoid payroll taxes on new hires for six years. Under the subsequent deal on community benefits, companies with payrolls of more than $1 million get the tax break only if they enter a community benefit agreement with the city.\u003c/p>\n\u003cp>Some stakeholders remain unconvinced that the agreements are sufficient. Mara Blitzer, a longtime neighborhood social services advocate, said that while she appreciated technology companies’ community volunteering efforts, other stipulations, especially local hiring, are more important.\u003c/p>\n\u003cp>“The community really had high hopes for what the agreement was going to do, but I think, frankly, it isn’t the strongest,” said Blitzer, who until this year was a senior project manager at the nonprofit \u003ca href=\"http://www.tndc.org/\">Tenderloin Neighborhood Development Corporation\u003c/a>, and has since taken a government job.\u003c/p>\n\u003cp>The agreements call on companies to use the \u003ca href=\"http://www.workforcedevelopmentsf.org/businessservices/index.php?option=com_content&view=article&id=80&Itemid=85\">First Source Hiring Program\u003c/a>, which was set up in 1998 to funnel “economically disadvantaged” city residents into entry-level jobs. The program is primarily geared toward major city-funded contracts, public works and business activities needing building permits or planning approval. The community benefit agreements ask technology firms to “partner” with First Source.\u003c/p>\n\u003cp>Representatives from some of the biggest tax break recipients — Twitter, Zoosk, 21Tech and Yammer — declined to comment on the status of their agreements. Zendesk, a customer service software firm, and One Kings Lane, a home decor company, did respond to questions. Both said they had not hired any employees through First Source.\u003c/p>\n\u003cp>Raquel Redondiez, a legislative aide to Avalos, said one of the problems is a lack of follow-up by the city. Until this year, she said, First Source had no budget for a dedicated enforcement staff.\u003c/p>\n\u003cp>The Board of Supervisors created the payroll tax exclusion after Twitter indicated it was considering moving its expanded headquarters out of San Francisco. The breaks applied to any business within a tax zone area straddling Market Street from Sixth Street to Van Ness Avenue, including some side streets.\u003c/p>\n\u003cfigure id=\"attachment_117945\" class=\"wp-caption alignleft\" style=\"max-width: 300px\">\u003cimg class=\"size-medium wp-image-117945\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2013/11/twitter-IPO-300x168.jpg\" alt=\"A Twitter banner hung outside the New York Stock Exchange when Twitter debuted its stock on November 7. (Andrew Burton/Getty Images)\" width=\"300\" height=\"168\">\u003cfigcaption class=\"wp-caption-text\">A Twitter banner hung outside the New York Stock Exchange when Twitter debuted its stock on November 7. (Andrew Burton/Getty Images) \u003ccite>(Andrew Burton/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The idea behind the community benefit agreements was to mitigate gentrification as tech expansion raises rents for neighboring businesses, residents and public amenities.\u003c/p>\n\u003cp>The companies are required to report the status of their agreements quarterly to the City Administrator’s Office. Incomplete provisions must be carried out the following year, said Bill Barnes, the office’s project manager.\u003c/p>\n\u003cp>But Avalos said the community benefit agreements were weak because the city created them after passing the tax exemption. That left little room for negotiation with technology firms.\u003c/p>\n\u003cp>“It could have been stronger if we were building our tax breaks contingent on stronger community benefit agreements,” he said. “If the agreement comes afterward, then obviously it’s not going to be as strong as it could have been.”\u003c/p>\n\u003cp>The requirements should be sharpened, said Dina Hilliard, executive director of the North of Market/Tenderloin Community Benefit District, a nonprofit group providing beautification and safety services.\u003c/p>\n\u003caside class=\"pullquote alignleft\">'Unfortunately, we can’t mandate them to hire locally, because the neighborhood might not have the skilled candidates these companies want.'\u003c/aside>\n\u003cp>“The existing agreements clearly are not utilized in a way that is customized to each company’s strengths,” Hilliard said. “Unfortunately, we can’t mandate them to hire locally, because the neighborhood might not have the skilled candidates these companies want.”\u003c/p>\n\u003cp>For many low-skilled neighborhood residents, the education and experience qualifications for entry-level jobs may be too strict. Some neighborhood job candidates lack regular access to computers, hampering the online application process.\u003c/p>\n\u003cp>\u003cstrong>Few Entry-Level Jobs\u003c/strong>\u003c/p>\n\u003cp>The Central Market and \u003ca href=\"http://www.sfgsa.org/index.aspx?page=5005\">Tenderloin Area Citizens Advisory Committee\u003c/a>, which advises the mayor, Board of Supervisors and the city administrator, agreed that a strict hiring mandate would be impractical, because Zendesk requires highly skilled workers, said company spokeswoman Tiffany Apczynski. She said most office jobs require advanced degrees and years of experience. In any event, First Source would not help with neighborhood hiring, since it is available to all city residents.\u003c/p>\n\u003cp>Instead, Zendesk decided to fulfill its “obligation to the neighborhood” under its agreement by offering two paid marketing internships for clients of local nonprofit groups such as the \u003ca href=\"http://www.vydc.org/\">Vietnamese Youth Development Center\u003c/a>.\u003c/p>\n\u003cp>The company also pledged to work with \u003ca href=\"http://www.workforcedevelopmentsf.org/trainingprograms/index.php?option=com_content&view=article&id=92&Itemid=85\">TechSF\u003c/a>, a citywide workforce training initiative, to host networking events for employment trainees. It has invested $15,000 in community event sponsorships, and says it is on pace to spend about $120,000 in the community this year.\u003c/p>\n\u003cp>One Kings Lane has identified entry-level positions in customer service that could be filled locally, spokeswoman Stephanie Pettinati said.\u003c/p>\n\u003cp>But Avalos sounded frustrated by the paucity of job opportunities for locals. He said he would push for an overhaul of local hiring laws.\u003c/p>\n\u003cp>“As far as we’ve heard, there’s never been any kind of penalty for someone who doesn’t follow the First Source Ordinance,” Avalos said. “There is this belief that if you support big businesses, then the benefits will trickle down, which doesn’t actually do much for the community.”\u003c/p>\n\u003cp>Hilliard questioned whether community benefit agreements were even good ideas in the long run: “I want the city to sit down with the company and come up with a customized plan on how they are going to provide community benefits.”\u003c/p>\n\u003cp>\u003ca href=\"http://www.brightlinedefense.org/\">Brightline Defense Projec\u003c/a>t, a nonprofit organization based in SoMa that promotes environmental, economic and social sustainability in low-income neighborhoods, is pushing for reforms to require more than just “good faith” efforts to make local hires.\u003c/p>\n\u003cp>In 2010, Avalos sponsored one such successful effort. The ordinance mandated that an increasing percentage of city residents be hired for city-funded construction projects.\u003c/p>\n\u003cp>Joshua Arce, Brightline Defense’s executive director, said the city has been “rolling out a red carpet” for technology companies through special tax treatment.\u003c/p>\n\u003cp>Hiring programs, he said, should require “job guarantees and a track record.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"http://sfpublicpress.org/news/2013-11/twitter-other-tech-companies-get-sf-tax-breaks-but-show-little-progress-hiring-in-neighborhood\">This article\u003c/a> first appeared in San Francisco Public Press, a KQED News Associate\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/117933/new-questions-about-benefit-of-tax-breaks-for-mid-market-tech-firms","authors":["236"],"programs":["news_6944"],"categories":["news_248"],"tags":["news_1181","news_38","news_346"],"featImg":"news_117935","label":"news_6944"},"news_25297":{"type":"posts","id":"news_25297","meta":{"index":"posts_1591205157","site":"news","id":"25297","score":null,"sort":[1303861227000]},"guestAuthors":[],"slug":"blog-beat-54","title":"Blog Beat: San Jose Employee Layoffs; New SF Tech Boom; Herb Caen's 1985 View of Mid-Market","publishDate":1303861227,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cul>\n\u003cli>From \u003ca href=\"http://www.sanjoseinside.com/news/entries/04_26_11_city_manager_figone_layoffs_budget/\">\u003cstrong>San Jose Inside\u003c/strong>\u003c/a>: City Manager Debra Figone's letter to city employees, which projects the necessary elimination of 400 more positions on top of the 200 already scheduled for elimination.\u003c/li>\n\u003cli>\u003ca href=\"http://www.7x7.com/tech-gadgets/new-san-francisco-tech-boom-and-google-wants-hire-you\">\u003cstrong>7X7\u003c/strong>\u003c/a> says a new San Francisco tech boom is definitely on...\u003c/li>\n\u003cli>From \u003ca href=\"http://www.bluoz.com/blog/index.php?/archives/1218-what-Herb-Caen-really-thought-of-Mid-Market.html\">\u003cstrong>Bluoz\u003c/strong>\u003c/a>, what Herb Caen thought of the mid-Market area back in 1985. (Hint: He calls the area \"Le Grand Pissoir.\")\u003c/li>\n\u003c/ul>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1303861369,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":2,"wordCount":66},"headData":{"title":"Blog Beat: San Jose Employee Layoffs; New SF Tech Boom; Herb Caen's 1985 View of Mid-Market | KQED","description":"From San Jose Inside: City Manager Debra Figone's letter to city employees, which projects the necessary elimination of 400 more positions on top of the 200 already scheduled for elimination. 7X7 says a new San Francisco tech boom is definitely on... From Bluoz, what Herb Caen thought of the mid-Market area back in 1985. (Hint:","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Blog Beat: San Jose Employee Layoffs; New SF Tech Boom; Herb Caen's 1985 View of Mid-Market","datePublished":"2011-04-26T23:40:27.000Z","dateModified":"2011-04-26T23:42:49.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"25297 http://ww2.kqed.org/news/?p=25297","disqusUrl":"https://ww2.kqed.org/news/2011/04/26/blog-beat-54/","disqusTitle":"Blog Beat: San Jose Employee Layoffs; New SF Tech Boom; Herb Caen's 1985 View of Mid-Market","path":"/news/25297/blog-beat-54","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cul>\n\u003cli>From \u003ca href=\"http://www.sanjoseinside.com/news/entries/04_26_11_city_manager_figone_layoffs_budget/\">\u003cstrong>San Jose Inside\u003c/strong>\u003c/a>: City Manager Debra Figone's letter to city employees, which projects the necessary elimination of 400 more positions on top of the 200 already scheduled for elimination.\u003c/li>\n\u003cli>\u003ca href=\"http://www.7x7.com/tech-gadgets/new-san-francisco-tech-boom-and-google-wants-hire-you\">\u003cstrong>7X7\u003c/strong>\u003c/a> says a new San Francisco tech boom is definitely on...\u003c/li>\n\u003cli>From \u003ca href=\"http://www.bluoz.com/blog/index.php?/archives/1218-what-Herb-Caen-really-thought-of-Mid-Market.html\">\u003cstrong>Bluoz\u003c/strong>\u003c/a>, what Herb Caen thought of the mid-Market area back in 1985. (Hint: He calls the area \"Le Grand Pissoir.\")\u003c/li>\n\u003c/ul>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/25297/blog-beat-54","authors":["80"],"programs":["news_6944"],"categories":["news_8"],"tags":["news_1297","news_1181"],"label":"news_6944"},"news_22753":{"type":"posts","id":"news_22753","meta":{"index":"posts_1591205157","site":"news","id":"22753","score":null,"sort":[1302125655000]},"guestAuthors":[],"slug":"burning-man-headquarters-to-mid-market","title":"Burning Man to Move Headquarters to Mid-Market; Audio: Larry Harvey, Ed Lee","publishDate":1302125655,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>Burning Man LLC, which puts on the 50,000-person \u003ca href=\"http://www.burningman.com/\">Burning Man\u003c/a> arts festival in the desert every year, is \u003ca href=\"http://www.nbcbayarea.com/news/local/Burning-Man-HQ-Moves-to-City-119340924.html\">\u003cbr>\n\u003cstrong>moving its headquarters\u003c/strong>\u003c/a> to the mid-Market area, it was announced today. \u003c/p>\n\u003cp>Combined with the retention of \u003ca href=\"http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/04/06/MN7R1IQM9D.DTL\">Twitter\u003c/a> and not to mention the coming \u003ca href=\"http://www.sfgate.com/cgi-bin/blogs/cityinsider/detail?entry_id=74992\">opening\u003c/a> of a Pearls' Deluxe Burgers, could we be looking at the next Tribeca here? \u003c/p>\n\u003cp>Burning Man has been negotiating with the city on a move for awhile, \u003ca href=\"http://www.sfbg.com/politics/2011/02/24/burning-man-wants-mid-market-hq-tax-break-or-not\">with or without\u003c/a> the tax break for area companies that was passed yesterday, it has claimed.\u003c/p>\n\u003cp>Sounds fishy, but considering that this is an organization that \u003ca href=\"http://en.wikipedia.org/wiki/Burning_Man#Principles\">doesn't allow\u003c/a> cash transactions on its festival grounds, one might have to take that at face value. \u003c/p>\n\u003cp>Also, \"the Burning Man offices are currently located on the edge of the Bayview district in an anonymous office park near a sewage treatment plant,\" the \u003ca href=\"http://www.nbcbayarea.com/news/local/Burning-Man-HQ-Moves-to-City-119340924.html\">SF Public Press\u003c/a> says. And when you put it that way...\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Here's Harley K. Dubois, City Manager of the annual temporary community at Black Rock, talking to KQED News intern Shannon Service about the reasons the organization wants to make the move. \u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManHarveyDubois.mp3\">\u003cem>Harley Dubois on Burning Man's move to mid-Market\u003c/em>\u003c/a>[audio:http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManHarveyDubois.mp3|titles=BurningManHarveyDubois]\u003cbr>\n\u003c!--more-->\u003cbr>\nAnd here's Burning Man founder Larry Harvey himself, calling the neighborhood \"very like Black Rock city\" in its diversity. \"As humble immigrants into this neighborhood, we mean to contribute to a neighborhood that is already vital,\" he said.\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLarryHarvey.mp3\">\u003cem>Larry Harvey on the move\u003c/em>\u003c/a>[audio:http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLarryHarvey.mp3|titles=BurningManLee]\u003c/p>\n\u003cp>And here's Mayor Ed Lee making the announcement:\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLee.mp3\">\u003cem>Ed Lee says Burning Man coming to mid-Market\u003c/em>\u003c/a>[audio:http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLee.mp3|titles=BurningManLee]\u003c/p>\n\u003cp>And here's an area worker discussing his thoughts on the tax break:\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManCesarMontalvo.mp3\">\u003cem>Parking worker Cesar Montalvo thinks he'll get more work, but doesn't like the tax break\u003c/em>\u003c/a>[audio:http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManCesarMontalvo.mp3|titles=BurningManCesarMontalvo]\u003c/p>\n\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1302126268,"stats":{"hasAudio":true,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":14,"wordCount":357},"headData":{"title":"Burning Man to Move Headquarters to Mid-Market; Audio: Larry Harvey, Ed Lee | KQED","description":"Burning Man LLC, which puts on the 50,000-person Burning Man arts festival in the desert every year, is moving its headquarters to the mid-Market area, it was announced today. Combined with the retention of Twitter and not to mention the coming opening of a Pearls' Deluxe Burgers, could we be looking at the next Tribeca","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Burning Man to Move Headquarters to Mid-Market; Audio: Larry Harvey, Ed Lee","datePublished":"2011-04-06T21:34:15.000Z","dateModified":"2011-04-06T21:44:28.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"22753 http://ww2.kqed.org/news/?p=22753","disqusUrl":"https://ww2.kqed.org/news/2011/04/06/burning-man-headquarters-to-mid-market/","disqusTitle":"Burning Man to Move Headquarters to Mid-Market; Audio: Larry Harvey, Ed Lee","path":"/news/22753/burning-man-headquarters-to-mid-market","audioUrl":"http://ww2.kqed.org/news/files/2011/04/BurningManHarveyDubois.mp3","audioDuration":null,"audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Burning Man LLC, which puts on the 50,000-person \u003ca href=\"http://www.burningman.com/\">Burning Man\u003c/a> arts festival in the desert every year, is \u003ca href=\"http://www.nbcbayarea.com/news/local/Burning-Man-HQ-Moves-to-City-119340924.html\">\u003cbr>\n\u003cstrong>moving its headquarters\u003c/strong>\u003c/a> to the mid-Market area, it was announced today. \u003c/p>\n\u003cp>Combined with the retention of \u003ca href=\"http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/04/06/MN7R1IQM9D.DTL\">Twitter\u003c/a> and not to mention the coming \u003ca href=\"http://www.sfgate.com/cgi-bin/blogs/cityinsider/detail?entry_id=74992\">opening\u003c/a> of a Pearls' Deluxe Burgers, could we be looking at the next Tribeca here? \u003c/p>\n\u003cp>Burning Man has been negotiating with the city on a move for awhile, \u003ca href=\"http://www.sfbg.com/politics/2011/02/24/burning-man-wants-mid-market-hq-tax-break-or-not\">with or without\u003c/a> the tax break for area companies that was passed yesterday, it has claimed.\u003c/p>\n\u003cp>Sounds fishy, but considering that this is an organization that \u003ca href=\"http://en.wikipedia.org/wiki/Burning_Man#Principles\">doesn't allow\u003c/a> cash transactions on its festival grounds, one might have to take that at face value. \u003c/p>\n\u003cp>Also, \"the Burning Man offices are currently located on the edge of the Bayview district in an anonymous office park near a sewage treatment plant,\" the \u003ca href=\"http://www.nbcbayarea.com/news/local/Burning-Man-HQ-Moves-to-City-119340924.html\">SF Public Press\u003c/a> says. And when you put it that way...\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Here's Harley K. Dubois, City Manager of the annual temporary community at Black Rock, talking to KQED News intern Shannon Service about the reasons the organization wants to make the move. \u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManHarveyDubois.mp3\">\u003cem>Harley Dubois on Burning Man's move to mid-Market\u003c/em>\u003c/a>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"audio","attributes":{"named":{"label":":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManHarveyDubois.mp3|titles=BurningManHarveyDubois"},"numeric":[":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManHarveyDubois.mp3|titles=BurningManHarveyDubois"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cbr>\n\u003c!--more-->\u003cbr>\nAnd here's Burning Man founder Larry Harvey himself, calling the neighborhood \"very like Black Rock city\" in its diversity. \"As humble immigrants into this neighborhood, we mean to contribute to a neighborhood that is already vital,\" he said.\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLarryHarvey.mp3\">\u003cem>Larry Harvey on the move\u003c/em>\u003c/a>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"audio","attributes":{"named":{"label":":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLarryHarvey.mp3|titles=BurningManLee"},"numeric":[":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLarryHarvey.mp3|titles=BurningManLee"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>And here's Mayor Ed Lee making the announcement:\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLee.mp3\">\u003cem>Ed Lee says Burning Man coming to mid-Market\u003c/em>\u003c/a>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"audio","attributes":{"named":{"label":":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLee.mp3|titles=BurningManLee"},"numeric":[":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManLee.mp3|titles=BurningManLee"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>And here's an area worker discussing his thoughts on the tax break:\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManCesarMontalvo.mp3\">\u003cem>Parking worker Cesar Montalvo thinks he'll get more work, but doesn't like the tax break\u003c/em>\u003c/a>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"audio","attributes":{"named":{"label":":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManCesarMontalvo.mp3|titles=BurningManCesarMontalvo"},"numeric":[":http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/04/BurningManCesarMontalvo.mp3|titles=BurningManCesarMontalvo"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/22753/burning-man-headquarters-to-mid-market","authors":["80"],"programs":["news_6944"],"categories":["news_223","news_1758"],"tags":["news_680","news_152","news_1182","news_1181","news_38","news_346"],"label":"news_6944"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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