Updates & Letters

Letter from the Executive Director – Summer 2009

Greetings from the Tenderloin Economic Development Project (TEDP)

I’m frequently asked by friends and acquaintances who’ve heard of the Tenderloin what I think about the neighborhood. It’s a difficult question to answer; the Tenderloin is a very complex community.

What has struck me most since arriving five months ago, however, is the wealth here. In fact, I’d say the Tenderloin just might be San Francisco’s richest neighborhood.

The wealth I’m referring to is in its people, its art, its architecture, its many excellent restaurants, its community based organizations.

TEDP’s job is to leverage economic development projects to provide maximum return to the community. Toward that end we’re working with art organizations to identify art projects that double as economic development projects, art programming that can deliver human development benefits, and art organizations that contribute to local real estate development.

Let’s look at some examples already existing in the Tenderloin.

In the area of arts for economic development, it’s easy to see how the EXIT Theatre benefits local businesses every time it hosts a play or musical. The EXIT’s patrons park at Ramon LaGuardia’s parking lot across the street, have dinner at Deanna and Jay’s widely acclaimed Farmer Brown restaurant around the corner, and stop by Frankie’s 21 Club for an after-show drink. Joining the EXIT are the landmark Warfield, the Golden Gate, and Orpheum theatres. Indeed, the current run of Wicked at the Orpheum all but overwhelms fan favorite Soluna Café, which gets so crowded they regularly call restaurants outside of the Tenderloin to help customers find tables (restaurateurs take note – art patrons are looking for local options after the shows).

In arts for human development (a long-term portfolio investment in economic development), the Tenderloin has several outstanding organizations: the Boys & Girls Club; Hospitality House; the Vietnamese Youth Development Center; the Tenderloin After School Project; and the San Francisco Recovery Theatre. Each of these groups works with at-risk populations in the neighborhood and through the arts offers individuals a chance to invest in themselves and a better future. The Tenderloin is excited about the prospect of two new groups joining this community: NEXMAP, a multidisciplinary arts organization, and Zambaleta, a world music school. Stay tuned for updates on our progress as we work with these great organizations in an effort to establish them in the neighborhood.

A recent addition to the art scene, the Tenderloin Community Benefits District (CBD) has hosted art openings, concerts and in September, the CBD will be debuting Wonderland, a fascinating public art project. A joint venture between an internationally-prominent curator, international artists, local artists, and community-based organizations, Wonderland will showcase the capacity of the arts to deliver educational, civic engagement, and community economic development dividends all at the same time.

The arrival of groups like Gray Area Gallery is having a profound impact on real estate development in the Tenderloin. The Gray Area Gallery is poised to open its doors on Taylor Street this fall. Its opening will represent the conversion of a dead, destructive void into vibrant, active commercial space, a significant contribution to the neighborhood. By economic development measures, it will also help generate traffic for Farmer Brown and the friendly Brazilian family that took a chance on an empty restaurant space next door (if you haven’t had Brazilian flan, let Tony know and he’ll take care of you).

And if you’re strolling on Ellis Street, you’ll come across a beautiful urban sanctuary that’s part art project, part human development project, part public space development project: the Luggage Store’s Tenderloin National Forest. It is a brilliant example of art reclaiming neglected, “throw away” space and changing it to a dynamic community space.

And there’s more

In addition to all the great organizations listed above, the Tenderloin is a showcase of some of the finest Asian restaurants in all the Bay Area (make sure to budget time to get through the line at Saigon Sandwich) and a must-visit destination for foodies. Heart of the City Farmers Market is one of the coolest experiences of urban meets rural any visitor will find anywhere. If you’re an urbanist (or just like cool buildings), there’s block after block of beautiful and historically significant architecture (thirty-three blocks of the Tenderloin were recently added to the National Register of Historic Places).

Still, with all this going for it, the best part of the Tenderloin is its people. I feel fortunate: I get to work with smart, creative, dedicated people on a daily basis. My local community arts advisory group. Local CBOs. Supportive foundation program directors and officers. Public servant allies in City Hall. San Francisco’s banking community. We are all working on crafting a strategy toward investing in the future of a sustainable, balanced, and healthy Tenderloin.

The Invisible Tenderloin

Some readers may be wondering when I’ll discuss the open-air drug dealing or public drunkenness, the common area of focus by the media. My thought is that we’ve all heard about this ad nauseam. Aren’t we tired of it yet? Spend some time in the Tenderloin and you’ll discover there are thousands of low income residents living in protected affordable housing apartments that are very tired of it. They are the families with children – did you know the Tenderloin is home to 4000 children? – the senior citizens, the people living on disability benefits.

Are we finally ready to see the “invisible” Tenderloin? The Tenderloin’s sidewalks are being tended to by the CBD and the San Francisco Clean City Coalition; TEDP, the San Francisco Convention and Visitors Bureau, Hilton Hotel and the magnificent Asian Art Museum are collaborating on a Tenderloin Culinary Arts Visitors Package; prominent public art installations are going up; UC Hastings recently completed construction of brand new commercial space, the first introduced in the neighborhood in years; the development of the Uptown Tenderloin History Museum is moving forward; the YMCA of San Francisco has committed to building a state-of-the-art new YMCA in the Tenderloin; the kids attending De Marillac Academy have a graduation rate of 100%; landscaping/greening projects are underway; art venues are seeing an increase in patrons and expanding their facilities; landing a weekend reservation at one of the Tenderloin’s highly rated restaurants is getting increasingly difficult. So the answer appears to be yes. These developments in concert are exerting increasing pressure on the negative factors in the streets, a triumph that will ultimately make the community livable again for its many low-income residents who want the right to enjoy their own neighborhood like anybody else.

On that note, buy your tickets and call for your reservations early. The Tenderloin is on its way back to being a great arts and culture destination for residents and visitors alike.

Let’s all wish a Happy Independence Day to the Tenderloin.

Cheers,

Elvin

Local Commercial Space Opportunities

Please click on any of the listings below for additional detail. For more information on these and other properties please contact TEDP’s executive director.


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Financing Resources

Select List of Resources for Economic Development and Arts Projects

The Neighborhood Economic Development unit of the Office of Economic and Workforce Development provides grants, loans, and resources aimed at stimulating neighborhood commercial districts.   Their goal is to provide a comprehensive package of funding and technical assistance resources and interagency coordination for individual projects that have catalytic, high economic impact for San Francisco low- to moderate-income communities. For more information about their programs and the grants and loans listed below, contact Holly Lung at 415-554-6628, or holly.lung@sfgov.org

GRANTS

1. “SF Shines” Façade Improvement Program provides free architectural design services and up to $13,500 to property owners, merchants, and nonprofit organizations to improve façades, storefronts, and signs. Clients contribute 25% of project costs, including permit and inspection fees.

2. Community Development Block Grant (CDBG) Capital for Economic Development Activities provides grants of up to $200,000 to existing nonprofit organizations to rehabilitate facilities that provide activities for children, youths, adults, and seniors. Capital CDBG also provides for commercial building rehabilitation conducted by a nonprofit organization that serves the needs of low- and moderate-income neighborhoods.

3. CDBG Economic Development Grants for Technical Assistance Providers are available to nonprofit organizations that provide business technical assistance, financial assistance, or general support services to for-profit businesses. Program requires creating and retaining jobs for low- and moderate-income people or for the purpose of providing services to an area that contains at least 51 percent low- and moderate-income residents.

4. OEWD Strategic Capital Grant Program provides grants of up to $100,000 for catalytic, positive impact projects in Neighborhood Marketplace Initiative (NMI) and Community Benefits Districts (CBD) target neighborhoods. Tenderloin NMI and Central Market CBD are both eligible areas. The catalytic role of the arts in community development, and its contributions toward creating vibrant communities with motivating quality-of-life assets in a neighborhood commercial district is an example of a qualifying project. Example uses include façade projects, tenant improvement, commercial outdoor enhancements and amenities, etc.  Contact Crezia Tano at 415-554-4984, crezia.tano@sfgov.org

LOANS

1. San Francisco Revolving Loan Fund provides low interest (4-6% fixed) loans from $5,000 to $25,000 for for-profit businesses located in San Francisco. Building owners who lease commercial units are eligible. Eligible uses include funding for working capital, inventory purchase, equipment and machinery, startup costs, and leasehold improvements. Ineligible uses include funding for personal expenses, debt consolidation, and payment of existing business debt. The city’s administrator for the loan fund is TMC Working Solutions, a nonprofit organization that assists businesses access the capital, resources, and support they need to grow and succeed. http://www.tmcworkingsolutions.org/ , or 415-655-5472

2. Housing Urban Department (HUD) Section 108 Business Loans will be available to CDBG-eligible economic development activities in spring 2010. A sample of eligible activities include acquisition, construction, or rehabilitation of real property for commercial use, assisting for-profit businesses for the specific purpose of creating jobs, and providing financial and technical assistance to persons who want to develop a microenterprise. The program provides low-interest loans from $50,000 to $1 million. Section 108 borrowers must operate a business in San Francisco, and create at least 1 full-time equivalent job for every $35,000 funded and must be filled by low- to moderate-income San Francisco residents.

3. Non-City Resources – here are a few examples of non-city funding resources for nonprofit organizations. For additional resources, contact the Small Business Assistance Center referenced below.

a. Opportunity Fund provides enterprising businesses and nonprofit organizations funding to build self-sufficiency and communities. Programs include the following: 1) Small Business Loan Program – $1,000-$200,000, 2) Community Facilities – Up to $2 million, and 3) New Markets Tax Credits – Up to $20 million. The New Markets Fund offers permanent financing for nonprofit and for-profit real estate projects providing high c ommunity impact in low-income areas. http://www.opportunityfund.org

b. Northern California Community Loan Fund provides loans ranging from $10,000 to $1 million for four types of nonprofit projects: affordable housing, community facilities, human services and economic development. Interest rates generally range from 7-10%. http://www.ncclf.org

TAX INCENTIVES

1. San Francisco Enterprise Zone (EZ) Tax Credit Program allows employers located in the EZ to claim credits against local payroll tax. The credit of an employee claim must be a San Francisco resident, work 50% of hours within the EZ, and work 90% of hours on tasks related to the EZ. Benefits are realized over a 10-year period. Tenderloin and Central Market are within the local EZ. Contact Natosha Safo at 415-554-6130, or natosha.safo@sfgov.org

2. California Enterprise Zone Tax Credit Program allows employers located in the EZ to claim credits against local payroll tax, helps businesses reduce their state income tax liability, qualify for business expense deductions, and accelerate depreciation. Tenderloin and Central Market are within the state EZ. Contact Natosha Safo at 415-554-6130, or natosha.safo@sfgov.org

3. California New Job Tax Credit, effective January 1, 2009, provides a tax credit of $3,000 for each additional full-time employee hired. Contact the Franchise Tax Board at http://ftb.ca.gov, 1-800-852-5711

JOBS NOW! is a SF Human Services Agency (HSA)-administered program that pays for your for-profit and nonprofit employees’ wages. The HSA will provide you with referrals of qualified workers and reimburses you for 100% of the wage cost. Employers are required only to pay for payroll taxes, any fringe benefits that employees typically receive, and supervision of participants. To become a JOBS NOW! employer, fill out and submit a few simple forms available at www.sfhsa.org or call 1-877-JOB1NOW.

SMALL BUSINESS ASSISTANCE CENTER is the central point of referral and information for businesses located in San Francisco. The SBAC provide one-on-one case management on how to start your business including referrals to direct technical assistance, access to capital, and interagency coordination. SBAC is located at City Hall, room 110, available at 415-554-6134 and sbac@sfgov.org

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