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Are high, so in terms of why that matters in terms of framework, it could be interesting to do that. Another thing is why it matters for people . I think that stormwater regulation does matter for people, especially when its raining and things are flooding. Thats a huge reason, so im wondering if this body could help with translating how some of this work shows up in peoples daytoday lives. And part of that could be with the universitys developing scorecards on why those things matter that can be easily disseminated and digested by the community. And the other thing is just metrics impact. Thinking through one of the things i was thinking is interesting theres already a lot of what you mentioned here, too, in terms of goals and items that Treasure Island is delivering on, but i still dont know what those things are and what they actually mean. We talk about carbon sequester, but what does that mean to people . I guess, like, what is the baseline in like, lead m. D. . Is everybody doing that . If not, we should be targeting why everybody is above the baseline. We should be mentioning is this baseline that youre touching on or are you not going to talk about that . Very much concerns. Lets see. Mr. Dunlap . Thank you very much, madam chair. I think this is a great, brilliant idea, and im really excited about the potential for being platinum. I think thats exciting, and it sort of raises a question, though, you know, we never hear about Treasure Island getting platinum, the lead platinum. We hear about outages, that kind of stuff. I think another way to get it to the press so we start getting the really positive press we deserve because everybodys staff, board has worked extremely hard, and you know were doing meaningful work, but it all ends up in peoples heads, at least, that oh, youre the people that are poisoning everyone, and were not. You know, theres so many great things, so a Committee Like this could maybe also tip the press balance. So i really like that idea and of course explaining why it matters. Thank you. I think we need to generate our own press, and that is what this is. And i just want to say certainly sustainability and position and the global everything, and even where theyre going to be overlapping, land use and transportation is land use, and all those things are related into that. This allows the flexibility into one where we are finishing one discussion, now we have two others that we can supplement that, you know, back and forth, back and forth. And i also would like to also have zero waste, which is really where San Francisco is leading and all of that to be a key item also in what were doing because our development plan, the reason we have this lead platinum, again, is what were doing with stonewater energy and all were using them, and the plan that we have with the p. U. C. And the waste and the solids and all of that. This allows the opportunity to how we have this new island, and how we are even going to go beyond what San Francisco main already have. So no matter how we cut this thing, we now have the flexibility to do what we ever wanted to do with our discussions. Thank you. Thank you. Is there any Public Comment . Hearing none, next item. Clerk item number 11, discussion of future agenda items by director. Any future items . I just wanted to point out really quickly that, again, in the march meeting on the island, we will be looking at the very, very important issue about earthquake preparedness. Thank you very much for that. Hearing no other items, next item, please. Clerk meeting is adjourned. Thank you. Thank you very much. Good afternoon and welcome to the land use and Transportation Committee of the San Francisco board of supervisors for today, monday, december 9. My name is mr. Peskin. I have the distinction of being the chair of this cheat. Joined to my left by matt haney and supervisor safai to my right. Our clerk is ms. Major. Do you have any announcements . Yes. Please silence all cell phones and electronic devices. Completed speaker cards to be included should be submitted to the cleric. Items will appear on the 17th board of agenda unless otherwise stated. Thank you. Could you please read the first item and welcome supervisor safai. Item number one is business and tax regulations code to extend through fiscal year 202021. The temporary suspension of the application as a Business Registration and fee requirements to Transportation Network Company Drivers and taxi drivers. Thank you for hearing this. This is a continuation of a Business Registration fee suspension that we enacted last year, both were taxi drivers and t. N. C. Operates while the city continues to challenge the validity after senate bill, 182 that was sponsor by uber and opposed by our local state senator scott wiener, which basically sought to preempt our ability to require local licenses for t. N. C. Drivers, running their own commercial carrier businesses. Ms. Freed from the treasurer Tax Collectors Office is here. And on behalf of colleagues, if you have any questions, please address ms. Freed. The floor is yours. I think you covered i think here. I just wanted to make a brief reminder that property taxes are due tomorrow. So please dont be late. That would be december 10. And after that you have interest, fines, penalties. Its a hefty mistake to make. Ive been there. Dont do it. Anything you would like to add to my comments . Thats all colleagues, any questions for the Tax Collectors Office . Seeing none, are there any members of the public who would like to testify on item number 1 . Dont all run up here at once. Public comment is closed. And colleagues, i would like to make a motion to send this to the full board with recommendation as a Committee Report to be heard by the full board of supervisors tomorrow, december 10, tax day. And seeing no objection, we will do that without objection and supervisor fewer has joined us. And i want to apologize to supervisor fewer because i would like to take item 7 and 8 out of order, unless supervisor fewer, item number 2, can be done quickly. All right. Then please read the next item. Item number 2 is anard nancy to require at least half of residential units in educator Housing Projects to have two or more bedrooms, to eliminate the requirement that educator Housing Projects have a minimum amount of three bedroom units, conditioned on the passage of proposition e in the november 5, 2019, consolidated election. Thank you. And i would like to take this opportunity foremost to thank the voters of San Francisco who saw fit to adopt this last month in november and thank supervisor fewer and her office for their leadership as well as cosponsors for this measure, my colleague supervisors haney, walton and mar and as well as the Affordable Housing advocacy community, our teachers and faculty and labor allies for their hard work to pass proposition e, the Affordable Homes and families and educators now act. Which was truly a collaborative effort, and we pledged to the mayor that we were going to continue to work collaboratively together and design a unit mix for one particular project, Francis Scott quietiver housing. I will turn it over to supervisor fewer. Thank you. The legislation before you today is a small tweak to proposition e, which was passed by over 76 percent of voters in this recent election. I would first like to thank my cosponsors of the initiative, supervisors peskin, haney and walton as well as the mayor and the board of supervisors for unanimously supporting prop e in helping us to ensure to voters overwhelming help us ensure voters overwhelmingly passed it. We all know in this Housing Affordability crisis we need to create more Affordable Housing in every part of the city. As we all know, San Francisco is exceeding our goals for market ray rate housing, but we are falling short of our goals for low and moderate Income Housing. As of last year, the city produced 96 percent of the market rate units needed to meet our goal for above moderate Income Housing by the year 2022. However, we have only produced 30 percent of affordable units needed to meet our goals for very low, low, and moderate Income Housing in order to close in gap, we have been working to provide more funding for Affordable Housing and make it easier and faster to build. My colleagues and i have been pursuing new Funding Sources for Affordable Housing, including legislation i authored with unanimous cosponsorship which allocates 50 percent of excess funds the city gets back from the state for Affordable Housing. This added 70 million in additional funds for Affordable Housing in this years budget alone and will continue to add tens of millions more each year. We also unanimously passed legislation from supervisor haney, to increase the job housing linkage fee and provide hundreds in millions for Affordable Housing. In this recent election we all worked together to put a 600 million housing bond on the market which was approved by 71 percent of voters. All of these proposals will help address the number one barrier to building Affordable Housing, funding. To address other barriers identified by Affordable Housing nonprofits, our office and colleagues worked with the stakeholders to develop and pass Affordable Homes for educators and families now initiative, which became prop e, in order to make it easier and faster to build Affordable Housing in every neighborhood across San Francisco. Our office began working on this legislation to make it easier to build Affordable Housing in outer neighborhoods that have seen little investment in Affordable Housing. It builds off the success of the legislation that former supervisor jane passed last year to make Affordable Housing a principally permitted use in service, arts and Light Industrial districts. We also worked with the educators of San Francisco to develop a Pilot Program for educator housing that would serve the need oferts and a wide range of income levels and household sizes on land owned by the School District or city college. No one understands the need of our educators better than the educators themselves and we are proud to have partnered with them on this initiative. In order to ensure these projects serve the diverse Housing Needs of educators, the ordinance currently requires at least 30 percent of the units in an educator Housing Project are two bedroom units and 20 percent are three bedroom units. It was important to the teachers that projects dont end at being primarily made up of studios and one bedroom units as this would exclude a sizable portion of our workforce, many of whom live with their families. The legislation changes the unit so that 50 percent of all units will be two bedrooms or larger, rather than requiring a set percentage of three bedroom units. This will allow for more Design Flexibility ensuring that projects arent just for single educators. It will allow the School Districts working with the educating community to make the decision about units on a sight site by site basis. Im excited to see new Funding Sources available including at the state level and local Affordable Housing bond. I cant wait to see more Affordable Homes being built in my neighborhood and every neighborhood across San Francisco. I hope i can count on your support today to send this to the full board tomorrow as a Committee Report. Thank you. Thank you, supervisor fewer. Supervisor safai. Thank you, chair peskin. Thank you, supervisor and others for your leadership on this and as she said, thank you to our friends in labor, particularly the united educators and others who really led this forward along with all the colleagues on the board. This was a really important conversation about advancing and making educator housing a priority. The and i know this was largely driven by educators in general, particularly around Francis Scott keys. I wanted to make a footnote about the reference to or the acknowledgement of familyfriendly units. So the upon us of familyfriendly units, i know this language was adjusted to say two bedrooms or more so i want to keep that on the radar. We had a lot of those conversations while we were crafting the home s. F. Program, the couple of those projects were coming through our districts right now where we are pushing the developers to consider three bedrooms for families. So just wanted to highlight that. I know that president yee also brought to to my attention so we are going to keep that conversation going. I appreciate all your hard work on this. And i wanted to give a little homage and underscore the importance of familystyle units. So this language does acknowledge that, and we want to continue that and ensure that that is a big part of the conversation. Are there any members of the public who would like to testify on this item number 2 . These are come forward. Good afternoon. Planning Department Staff. The Planning Commission heard this item on november 21 and voted unanimously to approve it. Thank you. You are not a member of the public but we appreciate that. Are there members of the public who would like to and you are here on what item . [off mic] got it. Good afternoon. With the council of Community Housing organizations. Just to say im fully in support of these amendments. Its great to see that we are able to pass this as a ballot measure with 75 percent of the voters with a large absolute majority throughout the west side of the city. I think changing the dialogue and narrative about how we want to see housing built throughout the city. I think its important that we have a project that is moving forward and other projects that we want to make sure this affects and helps those projects to actually succeed quicker, sooner, faster. So again, thank you, supervisor fewer and supervisors for making the comments about family housing, which is extremely important and extremely important discussion to have in the city. Thank you. And thank you to the council of Community Housing organizations for your support. Next speaker. Good afternoon, cory smith on behalf of the housing coalition. Im excited about how the dialogue has shifted over the last few years where building housing and building Affordable Housing on the west side was a little bit of a poisonous political topic. And weve gotten to the conversation where we know we all need housing. We need as much Affordable Housing as possible. So through this and future pieces of legislation and potentially ballot measures, we look forward to continuing that progress and i want to thank everybody for their leadership on this issue. Thank you. Thank you. And thank you for your support. I will note that supervisor pioneered that. Are there any members of the public who would like to speak . Seeing none, Public Comment is closed. Is there a motion to send this to the full board as a Committee Report with recommendation made by supervisor safai . We will take that without objection. Supervisor fewer, thank you for your leadership. Colleagues, if theres no objection i would like to call items 7 and 8 out of order. Item 7 is an ordinance amending the planning code and zoning map to establish the 2,000 marin street special use district and to create additional key site exceptions for the flower mart site and appropriate fundings. Item 8 is an ordinance approving a Development Agreement between the city and county of San Francisco and kr flower mart for the development of an approximately 6. 5acre site at fifth and brannan street, with various Public Benefits including a new onsite wholesale flower mart. Thank you. Supervisor haney who is the supervisor that presides over the storied flower market, an institution that has existed for over a century in the city and county of San Francisco, actually started in what technically now district 3 at lotus fountain before it migrated south of the slot into what is now district 6 and ultimately migrated to where it has been for over half a century at sixth and brannan streets. This is a institution that is in in linked to San Francisco. It is linked to families whose lives have changed over time who live in san mateo counties and other counties who grow the product, bring it to market in the middle of the night. If any of you have not been there, i urge and commend you to go there at the crack of dawn at 3 or 4 in the morning. It is the second largest wholesale flower market in the United States of america. The south of market is changing. Supervisor kim presided over some of those changes. Supervisor haney is now presiding over the changes. Their predecessor daly presided over the changes as downtown moved south and central soma is where that action is happening today. The Kilroy Corporation did what the academy of art that is on our agenda later today could not do, which is to assemble the japanese and italian sides of that flower market and propose a Massive Office development. I stepped in i forgot what year, i think 2015, i forget what year it was, alex clemenses is not in his head and went about procuring some tens of thousands of signatures to down zone the flower market, and we came to an agreement actually with all respect to the Kilroy Corporation, they said they would never displace this storied institution, and that is what we are discussing today. The fundamental policy issue before this board of supervisors is making sure that the flower market exists for another hundred years, or at least 35, which is in the agreement. We ended up at a shredding machine, we shredded all the signatures. There are pictures of that. Im happy to share them with you as is mr. Clemens. And we entered into an agreement, and that agreement is playing out today. Let me be the first to say that there has been incredible work by the 53 changes on a daily basis, vendors in the flower market, by their underlying remaining landlord, which i dont know if its called the california flower market or whatever its called these days, its changed over time, and the Kilroy Corporation and most importantly the office of the Economic Workforce Development and i would like to thank them for working with a very complicated set of characters and bringing a Development Agreement to this board, which is not done. It is my intention to hear from every member of the city family and from the public, and i would like to keep this conversation going. And i would like to, if animy colleagues agree, continue this if my colleagues agree, continue this at the board of supervisors. But there are a lot of ts to cross and maybe theres somebody here from planning, i think we should start with planning. Should we go with planning . Thank you. Thank you chair peskin for those comments. And for your leadership and support on this effort, which i know has been going on for over five years to my predecessor supervisor kim, i came in very much in the middle of all of this. And im very grateful for all the work that everyone has done to, as you said, protect quintessential institution in the flower mart. Its been very complicated to figure out the best way to protect the flower mart, especially in light of the changes in the south of market and where the wholesale flower mart could best not just survive but thrive for, as you said, the next hundred years. So i really appreciate everyones hard work on what we have in front of us. I do think that there are some things that, as you said, not only still need to be figured out and determined, but a lot of hard work left to go in the coming months and years to make sure that we fulfill all the commitments that are here in front of us. I do want to thank ann from oewd, ela from planning, the folks from kilroy, as i said, supervisor peskin, and your chief of staff who have been really critical partners on getting this done. There are two items that are in front of us today regarding the flower mart. The first item appears as item 7, which is a proposed ordinance that would amend article 2 of the planning code and the zoning map to create a new 2000 marin street special use district. The purpose of establishing the special use district, and its associated planning code exceptions is to allow for a feasible temporary location for the San Francisco wholesale flower market due to the development of the flower mart site. And i believe the Planning Department will present on those changes and will be available for questions. The second item appears as number 8 which would approve a Development Agreement between the city and the projects sponsor for the development of a large multiphase mixed use development that includes office, wholesale, open space, parking and related uses. I also want to say that this project is the first example of how our recent win in passing the house our workers legislation, which increased the jobs housing linkage fee, which will provide more Affordable Housing units. This project will contribute a significantly higher amount of dollars to the city for the construction of Affordable Housing, ar increasing the project sponsors total obligation from 58 million to nearly 107 million in fees, which can deliver close to 500 units of Affordable Housing. Theres an amended Development Agreement which i believe all of the members of the committee have and which we can describe in more detail im sure will be described as we move through. Again, i want to thank the project sponsors for their work and everyone from oewd, the Planning Commission and for chair peskin for your hard work on this for many years. Im glad they were able to shred all of that and have a new agreement that i think will memorialize our shared commitment to protect the flower mart and develop a site that provides Significant Community benefits, Affordable Housing and a future of development in this area, which is equitable and balanced. So with that, i dont know if you have to call up ken rich, i dont know if its ken. Im happy to start with you. Supervisor mandelman and mar have joined us. With that, if you would like to regale us with the recommendations of the Planning Commission. Hi. Planning department. Ill provide a brief overview of the project including the items for consideration. And then ill hand the presentation over to ann with oewd and alexander, representing the project sponsor. So ken rich is just sitting here . Thats fine. That works. Im sure hell be available to answer questions. You can go back to your office, ken. So the two items before you are part of a suite of required approvals to facilitate the proposed mixed use project known as the flower mart site, specifically this committee, as was mentioned, is being asked to consider an ordinance amending the planning code and zoning maps, as well as an ordinance approving the Development Agreement. On july 18, 2019, the Planning Commission heard and considered the testimony presented on behalf of the project sponsor, the Department Staff and other interested parties and took the following action. They adopted a recommendation of approval of the planning code text and map amendments. Adoption of a recommendation of approval of the Development Agreement, approval of request for large project authorization and approval of a request for an office developmentalcation for the first phase of the project. You mean prop m . Yes, prop m. The proposed project, which is the southern half of the block between fifth and sixth street, would be redeveloped as a mixed Office Retail and p. D. R. Development. It would demolish all ten of the existing buildings which does include the buildings currently housing the San Francisco flower mart. And they would construct three new eight to 18story mixed use Office Buildings that would contain approximately 2 million feet of office, 113,000 feet of production, distribution and repair uses, which would be the new wholesale flower market, feet of roadway tail and privately owned Public Open Space. And thats in the first phase or all the phases . Thats a total for all three phases. This version would also provide about 769 underground Parking Spaces, 30 loading spaces and close to 500 bicycle parking. The prop m allocation you referenced is only for the first phase, is that correct . Yes. It was an approval for the first phase which is about 1. 3 million square feet. The other two phases would go to Planning Commission for separate prop m allocations. Thank you. Theres also project variance. As you know, in the Development Agreement, theres an option for the wholesale flower market to permanently relocate to a new site within San Francisco in lieu of the project sponsor constructing a new wholesale flower market. Should the flower market vendors and management exercise this option, the project variant would then contain about 2 million square feet of office, 91,000 square feet of retail, 23,000 square foot childcare facility and 950 square foot Community Facility and lower amounts of parking, loading but increased bicycle Parking Spaces and an increased approximately 38,000 square feet of Public Open Space. So how would they repurpose the ground floor that was once thought of as a flower market site . So with this design, what they would do is first they would widen the pedestrian to increase the amount of open space. Some of that ground floor would be converted to atgrade loading with the flower mart, much of the loading is in the underground garage, so instead they bring some of those uses up to street level, reduce the amount of excavation and belowgrade space. And then the 23,000 square foot childcare facility would be in that location as well as the additional retail, about 30,000 square feet more office and the Community Center. How does that work with proposition x . Well, with this, there is as far as the Development Agreement, theres an agreement that they can provide the replacement p. D. R. Off site as opposed to onsite, and that is one of the code amendments that was in the ordinance that was introduced by haney. Thank you. In addition, the project will do a lot of street scape improvements, pedestrian improvements throughout and around the site. And speaking to the text code amendments and map amendments on june 11, districts 6 supervisor haney introduced the planning code text and map ordinance amendment that would establish the 2,000 rent special use district as well as create a key sites exception that would be utilized by the flower mart site. The purpose of the ordinance is to facilitate the project as well as the continued operations of the flower mart. The 2000 marin would provide a temporary location for the San Francisco wholesale flower market while the project is under construction. It would modify the planning code requirements related to demolition, replacement of industrial buildings, secrete scape improvements, Building Design standards, transportationrelated requirements and impact fees for a period of six years. It would be temporary. And the flower mart planning code text amendments would california create additional key site would create additional key site improvements including protected street frontages, p. D. R. Floor to floor height, overhead obstructions, offsite open space, residential to nonresidential ratio, childcare facility and p. D. R. Replacement and p. D. R. Community Building Space requirements. This concludes my presentation. I will hand it over to my colleague, ann. Thank you. Before you come up, is there a representative of the Public Utilities commission here . Or can you represent that in so far as 2000 marin is an asset of the Public Utilities commission that they agree their site can be used for up to six years . That is the Public Utilities commission is in negotiations for the Lease Agreement with kilroy for the temporary use of the flower Market Facility so this agreement would be subject to the approval of the Public Utilities commission . Yes. Okay. Please proceed. Good afternoon chair peskin and members of the committee. Thank you for your time and attacks on this proposed legislation. Thank you for your time and attention on this proposed legislation. I would like to provide a brief overview of the Community Benefits for this development and then read into the record summary of amendments to the d. A. For consideration today. There are three key components on the Development Agreement for which ill provide an indepth description. They include the need for two project scenarios, scenario a which contemplates the flower market returning after construction is completed at that site, scenario b which contemplates the flower mart electing not to return. The requirements for the developer to secure a site and construct the improvements in the event the flower market elects scenario b and thirdly, the agreement to prioritize the project phase 1b propagulecation in the fall of 202 1b proposition in the fall of 2021. As you know, under the central soma area plan, each of the key sites was assigned a specific set of Community Benefits the project would be required to achieve in order for there to be a diverse portfolio of communitywide benefits. The kia menti is the the key amenity the p. D. R. Sector is critical to San Francisco. Companies serve the needs of local residents and businesses and tend to provide highpaying jobs and Career Advancement opportunities for people without necessarily requiring they have a Fouryear College degree. P. D. R. Jobs also enhance the citys Economic Diversity and our ability to weather times in economic stress. While this project is anticipated replacing the flower market, the Development Agreement addressing the possibility for the wholesale flower vendors to select an alternative location for a permanent replacement site. The need for two scenarios became necessary late last year. Once the central soma plan was finalized, the flower vendors recognized the increased density along with the Infrastructure Improvements designed to safely accommodate increases in bike and Pedestrian Access would result in challenges for the vehicle intensive reality of operating a major flower distribution business. The flower mart is made up of over 50 independent Small Businesses that are largely family and minorityowned. These small operators in turn accommodate 4,000 small and Large Businesses across all of Northern California on a weekly basis. Most of these floreses, grocers, caterers, designers and wedding planners arrive in small and large trucks or other vehicles in which they need to load palettes of flowers and supplies. They rely on easy circulation. In order to ensure that San Francisco is able to retain the continued success of the flower mart, we have developed a structure that will allow the vendors to either return to the street on scenario a or elect an alternative location. This will take place within 30 days of the city executing the Development Agreement. The election will allow the flower vendors the time they need to explore alternative sites and determine their election. In scenario a, the project sponsor will be responsible for constructing a temporary facility at the p. U. C. Owned site or another mutually agreeable site. As soon as the first phase of the primary project is approved, the developer will begin the improvements. They are responsible for paying the relocation costs and moving the vendors. The developer will enter into a minimum fouryear lease which will have options commencing upon move in of the flower vendor. Scenario a is straightforward. The vendors elect to return, and the developer moves them from the temporary site into the new building upon completion. The developers provide the following benefits, at least 115,000 square feet of onsite affordable p. D. R. Space with guaranteed subsidized rents. 100,000 square feet of onsite neighborhood serving retail, 15,000 square feet of off site land dedication for the development of Affordable Housing. 36,000 square feet of onsite privately owned Public Open Space, 5,000 square feet of off site Public Open Space and enhanced Workforce Program that includes both office and job p. D. R. Job training, 500 bike Parking Spaces, construction of a cultural district gateway marker, 2 million contribution to enhanced street cleaning and security, a 4 million public art contribution, and 210 million in Development Impact fees, including 107 million in jobs how are yog linkage fees. Up to 20 million of the jobs housing linkage fee may be used to stabilize housing for existing soma residents by providing small sites for rehabilitation. Scenario b is triggered if the flower mart elects not to return. If they choose not to return they set up a structure whereby the total costs will be paid by kilroy. The city worked with the sponsor and tenants to develop the requirements for the future permit location. A detailed set of standards and specifications is being developed and will be required for the new permitted facility, including the necessary tenant space, parking and loading needs. Kilroy will not be able to begin construction on their primary project until they have acquired a mutually agreed upon site, constructed the improvements, including all the base building, parking, loading and tenant improvements necessary to provide a turnkey facility to the flower vendors. Under scenario b begin construction or get a certificate of temporary or final completion . The kilroy project will not be able to begin construction. Thank you. Perfect. Under scenario b, the developer provides they need to move the flower market, they need to construct the site and relocate the flower market before they can begin construction. Under scenario b, the developer provides all the Community Benefits under scenario a with the addition of 23,000 square foot childcare center, 1,000 square foot Community Room as well as a robust sorry, programming for neighborhood organizations that will include space for seasonal popup flower shops, floral shows, job fairs, artisans markets and farmers markets. Under scenario b, the city will establish a San Francisco flower mart legacy Business Fund by directing a portion of the project fees to a special fund held by the controllers office. These funds are intended to provide a source of stable business and operations assistance to longstanding San Francisco p. D. R. Operation to help ensure the wholesale flower operation continues to be a resource to the many local artists florists, artisans, restaurants, markets and individuals who rely on their access to this london standing San Francisco institution. Longstanding San Francisco institution. Roughly 300,000 square feet in the fall of 2021. This prioritization addresses the fact that unlike other sites, kilroy will not be able to begin construction until they have completed their key Public Benefit requirement of relocating the flower market to a permanent home. I will describe the summary of changes between the first version of the Development Agreement and the one in front of you today for the stake of clarity, other than the increase in jobs housing linkage fees, the changes pertain only to scenario b in which the flower market elects to move off site to a new facility. The first project description remains as it was, approved by the Planning Commission on july 18, 2019, including the new wholesale flower market and temporarily relocates the tenants to a temporary site during construction. The project variance has changed as follows. Prior project variant provided the flower market vendors the option to choose between the stay option and a Payment Option whereby the developer would have provided funding to the flower market vendors to allow them to construct a new facility at an alternative site. The current variant provides the vendors the option to choose between the stay option and permanent off site option where by the developer will acquire and build a permanent off site facility at whatever the final location is determined. All references to Payment Options have been removed. Most of the changes are to article 3 and the definitions. The summary of permanent off site option vendors select between stay option and permanent off site option within 30 days of the da Effective Date by sending a notice to the city and the city shall there after exercise the stay option and permitted off site option. If the permanent option is exercised, they must allocate approvals and construct the permanent off site facility in acore dance with the specify in accord with the specifications. They must pay for ten years to support street cleaning efforts which is in da section 5. 1. 1. The impact fees section has been amended to clarify the project shall calculate its jobs housing linkage fee pursuant to ordinance rate schedule in da section 6. 9. 2. The impact fees has been amended to clarify the project is able to satisfy all or a portion of its jobs housing linkage fee requirements. Thats also in da section 6. 9. 2. The impact fees section has been amended to provide a process for the creation of essential legacy business and p. D. R. Support funds that will be funded with 20 million and used by the city to provide annual business grants for the Master Tenant under the master lease. In the event the off site option is elected and provided the city waived fees, prior to the fund creation. Which is trailing legislation. Thats right. Impact fees section has been amended to add eastern neighborhoods infrastructure for an amount not to exceed 300,000 for funding for the design and construction of an arch or physical marker in a public location identifying the San Francisco filipino Cultural Heritage district. That concludes my presentation. Thank you for that very thorough reading. I want to invite alexander. He will be coming up in a minute. Thank you for your presentation and your work on this. A couple things. For the community benefit, if you can expound. For the 200,000 a year for ten years for street cleaning and safety, where will that money go specifically . Is that outlineed . Can you describe in more detail about that . Is it going to the city . It comes through the city. Its over ten years, a 2 million contribution that is designated i believe to the to y for enhanced street cleaning in central soma. Is that going into a category 8 fund . Or would you read us the exact language . I can certainly find that out. That would be great. And 5 million for sunnydale hub. Can someone speak to that and where that came from . I can certainly ask the project sponsor can answer your question about the evolution of the 5 million fund. Okay. And just you mentioned the prop m preference. Ive asked about this a few times. Can you speak more about that . Is this something that has been in past d. A. S or Development Agreements, is this a normal practice to physically give a priority preference . Yeah. And you said they may give them a priority. Is it will give them or may give them . They may give them a priority preference in the fall of 2021 after october 17, when the prop m pot gets refilled again, there is a section that allows for a preference to kilroy to receive another 350,000 square feet of prop m allocation. The purpose of that is in approving kilroys project as a Planning Commission, and a number of the central soma key sites, we initially asked each of the key sites to break their project into phases. And a couple of the and what we did with kilroy, we asked them to break their first phase into two phases. And so that we could allocate you know, we had a limited amount in the pot in 2018 or 2019. And we wanted to be able to make sure we got all the key sites in central soma, at least their first phase of allocation, by asking them all to phase their projects. One of the projects, because of the way they are building their structure, they reduced their total allocation by about 50 or 75,000 square feet but received their entire i think 850, i cant remember the exact allocation, but the project received 100 percent of their prop m allocation as opposed to the rest of the key sites in central soma which we asked to split their project into phases. So the kilroy project initial phase that would encompass the flower market, is a 1. 7 million square foot allocation. So in order to construct that building that would have the flower market on the ground floor, they would need 1. 7 million of their prop m allocation including all of the underground platform and podium. Because we asked them to split that phase into two phases, and because this is a project, this is the only key site project in central soma thats nonresidential project that has to fully fulfill their major Public Benefit obligation before they can even begin to construct their primary site, we agreed to put the 350,000 square feet into a preference in the future in the d. A. For the future allocation in 201. And there are president s for doing that, mission bay and certain parts of transbay also have preferences for prop m. And in so far as this is something that is in the Development Agreement, our roll in this is either to approve or deny i mean, our role, the full board, the Development Agreement. We can suggest changes to staff, but we either vote it up or vote it down. Is that correct . Deputy city attorney. Thats right. Thank you. Supervisor haney. Thats all i have for now. All right. Alexandra . Good afternoon, chair peskin, supervisor haney, safai, mandelman, thank you for being here. Alexandra with kilroy realty. Its our job well, thank you for the work you have done. The flower mart project was approved unanimously by the Planning Commission. Thank you, supervisor peskin for the work you have done over the last several years that we have been working on this project. Supervisor haney, thank you for all the work youve done since youve been here, especially for introducing the item as well. Vice president of Development Matt griffin and Vice President of Northern California kilroy and susan allan are here to answer your questions after im done with the presentation. So for nearly six years, we have been working with the flower mart vendors, the city and neighborhood to design a unique mixed use project to fits in with the fabric of soma and provides a new home for the wholesale flower market. While the design has evolved over the years, our plan has always been to build a new state of the art flower market as part of the project. As you all know, we received a request by the Flower Merchants Association to have the option to move the flower market off site due to concerns about the viability of their operations in the new central soma neighborhood. We heard their concerns and worked diligently to achieve Planning Commission approval of a twovariant plan so they can decide which route is best for them. If the vendors elect to stay, kilroy will go forward with the plan to build a wholesale flower market as part of the project. If they elect to move to al alternate site, kilroy agreed to construct a new market and leaves that to the flower mart at the same below market rate. The ground floor experience that be reimagined and includes childcare, increased open space, community facilities. Timing is key for either variant. Its important for the flower mart project to obtain approval of a agreement this year to give the vendors the ability to choose the best option for their future and for the city to realize the robust Public Benefits project thats been described. In this scenario where the market returns, kilroy will be required to relocate the vendors temporarily to 2000 marin, which is available now, before planned future use is implemented. Where the vendors choose to relocate permanently, kilroy will be required to purchase a separate site which can only be secured once the d. A. Is approved and is only available through the end of the year 2019 to secure that site. Additionally, the d. A. Includes an immediate payment by kilroy upon a project approval to give the vendors funding to complete feasibility studies and make their decision within that time frame. Again, kilroys goal with these variants is to ensure that there is a new permanent home in San Francisco for the wholesale flower market with guaranteed affordable rent and first class new development in central soma that provides a neighborhoodfocused retail experience, all inclusive Public Open Spaces and good jobs and revenue for the for the city. Total Development Impact fees are 222 million, which includes roughly 110 million, we rounded up, for the new jobs housing linkage fee and 12 million in t. D. R. S. Consistent with our track record, kilroy is proud to partner with the wholesale flower vendors, the city and the neighborhood to propose a project that will deliver extensive city and Community Benefits, including but not limited to, obviously the construction of the new flower market, dedication of a Affordable Housing site, 5 million donation to the Community Center project, a contribution to the filipino cultural district, 14 million in street sweep and public Infrastructure Improvements, 200,000 in annual street cleaning support and more than 8,000 good construction jobs. In addition, kilroy was named the most sustainable Real Estate Company in north america for the fifth time this year and was the first Real Estate Company to commit to Carbon Neutral operations by 2020. We are proud to partner with led certification. Thank you. We look forward to answering any questions that you have. Thank you. Are there any questions for the representative of the Kilroy Corporation . I do. Supervisor haney. Thank you. Sorry. So i can you speak a little bit more about the enhanced Workforce Program . It says 500 million in benefits. How do you measure it to be that much . Do you mind if i do it . Thank you. Good afternoon. My thanks to supervisor peskin and haney. Identify yourself. Mike from kilroy. To answer your question, the 500 million is an estimate of the amount of spending that will be subject to the enhanced Workforce Program. So it requires us to make good faith efforts to hire locally, to it also includes not just for construction jobs but also for permanent jobs in the facility. So the 500 million is construction spending. It requires us to make good faith efforts to hire locally, hire Small Businesses per the citys workforce requirement. Does that answer your question . Supis

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