Perseverance of individuals at the shipyard as well as city staffers over the years, redevelopment staffers and especially have to talk about scott because high served on the cac board for more than 20 years dedicating personal time to insure the studios and businesses remain. The nob many Small Businesses and the production from current high rents in San Francisco is so important to maintain and i believe that was anticipated and recognized in all the agreements that were made with lunar and the city that the rents needed to remain below market in order to continue this community, which brings a lot to San Francisco. We hope both the artist and cooks can rely on the process to provide fair replacement spaces at reasonable rents as everybody has agreed to in all the documents that were approved. Thank you. Thank you. James gleesen. Good afternoon commission. My name is james gleezen and artist from parcel b. I just like to say that im very grateful to occi as well as lunar for the relocation plan. The meetings were very clear and informative and kept the artist informed as to what was going on. Also the new studio assignment, im grateful we are not being displaced in a time when a lot of artist are. Besides an accommodation that you provided for the move for the artist, there was also really really clear and easy to understand and we are looking forward to the move and the build of the new studio. The support and information given to all the artist is also very clear. The consideration for the input from the artists was also really important in the relocation of us and in conclusion, asyfected artist i respectfully ask for you to support the agenda item and ask you continue to keep the artist involved in the process going forward. Thank you. Thank you. Are there any others that would like to speak on item 4 a . Um, Public Comment is closed. Do my fellow commissioners have any questions or comments . Commissioner singhare all the studios completed so far . The studio building is not completed. What is under construction is the replacement kitsch squn as soon as the kitchen moves building 110 can be demaunshed and the new Artist Studio is built where the kitchen is. [inaudible] what happened in 2014 is the approval of the design. In april of 20 14 [inaudible] it is fully designed but construction is yet to start. When is it going to complete . Early 2017 do we have the list of who will get thewhich artist get the studio . Ya. All artist were heavily involved in the design of the building and 2 too aex tent where they could decide studio sizes, whether they want to increase or reduce the studio size and we have a list of artist who are eligible to move fl to the new building. Not all made the [inaudible] to take advant objectf the opportunity, but they have the right to move. What is the total number of artist who applied for the studio . So, at the time of the scumatic design, there were 140 artist squz they go in 130 studios. There are a few artist who share studios so that situation will be replicated in the new studios. If there are 2 or 3 artist in one studio now they have the same situation in the new building. We used to get a invitation from mr. Madison every year. You dont have any kind of those to see the Artist Studio and meet the artist and everything anymore . [inaudible] and they ceased to be able to fund those great events a great number of years ago. Thank you you are always welcome. Okay. I know all the artist were very very long time and they are very nice and very good people. I know mr. Madison for the last 20 years and so it is a very good project. I want to move this item. Okay. Do you have a comment . I have a few questions. Let me just verify, i think the last meeting that we had, there werewe are still at the 140 artist, right . There are a couple artist who have left the shipyard since, that is why i said in 2014 we had 140 so i know of a handful of artist who decided the time is right for them to leave. It had nuth toog do with the relocation so there will be a couple vacant studios. Those vacants studios will be open to new artist . Yes, as part of the conversation around management we are looking at policies for the new artist complex and one of the policies will be a policy to fill the building at initial lease up so knowing there will be vacant studios and there will be a priority how we will allow artist to get into the studios. It may be artist who are currently share for them to have individual studsios, it may be building 101 artist elect to move into the new building if there is remaining space, but there will be a policy well presents to you. They would be below market rent . The way that the rents are determined for the artist are basically to cover costs including operating, Administrative Expenses and capital receives and so that is being looked at for the entire building and the rents cover all the expenses it needs to be sustainable once they move to the new building the same arrangements are maintained . For example, [inaudible] and other expenses that are incured, is that sort of the same way as it is today . Hopefully not because at the moment there is hopefully not it means it will be better because well have a new building and well maintain it and make sure we have reserves that will suffice the keep the building up and running into had future. If you recall from my last presentation artist are in billings that are run down and may not have Running Water and no heat so moving to the replacement building is a up great and maintenance and upkeep is on [inaudible] to keep the beautiful building. I also want to commend star for raising money to support the artist expenses and all of that. Thank you. I am pleased to hear you raised more than 10 thousand and hopefully more because im sure there will be other expenses as the move happens. I just have a question about the commercial kitchen. So, there was a concern raised and there were others who spoke about making sure that scott will be able to afford to maintain the Current Business as far as costs or other expenses. How is that being the negotiation is not final yet . That is correct what are the actions that we are taking to make sure that entrepreneurs start out and do business in San Francisco . As i understand this is a inkbation type of commercial kitchen and eventually some of them will probably are going to be very profitable businesses. In the mean time we want to make sure Small Businesses are being supported, what are the actions we are taking. I agree [inaudible] cookery services are important and we acknowledge that and everyone is working to make sure the cookery continue tooz succeed on the shipyard as well as all their clients. The negotiations are [inaudible] they have just begun. Who is negotiating the lease is lunar in collaboration with ocii and it is mainly department of real estate involved in these conversations and they will be on going for the next few weeks and hopefully at the end come to a term sheet and rent number that will allow scott to move into the building. The building was built for the cookery and allow him to continue to operate and succeed at the shipyard. You will come back and update on the negotiations . Flaum parties concerned . It is very important for us to know because this is a business that serves the city and the entrepreneur climate especially during these times and i appreciate to also hear what is go ogen. Im sure something mutually benefit will come up since the [inaudible] and yourself so that would be a interest to me that at least a lot of these issues raised are mitigated and addressed we are happy to fulfill request thofz commission to be kept informed about what is going on with the lease conversations between [inaudible] cookery and lunar and ocii. One more clarification, there were very few artist left, right . We have 140, is it 130 and some are shared . At the time of the Building Design we had 140 artist. A few have since left the shipyard, 3 or 4. The number of studios in the new building are smaller than the number of artist because some artist share studios. Art is thriving in San Francisco. I hope the process of unanimous decisions works because i have been in many situations where unanimous or consensus doesnt work or at least there is a attempt to address this and i heard that there is a process to address if a consensus isnt met so appreciate the forsite in the planning. Thank you. I second the motion. All of my questions have been answered by the questions of my fellow commissioners. I just want to commend everyone because it sounds like what could have been a difficult process has not been so difficult. The studio assignment process is very democratic and the fact that folks got a opportunity to participate in that process hopefully insures the success so i cumind star in particular for participating and creating that process. Im happy to take the motionvote on the motion. Moved by commissioner singh and seconded by commissioner mondejar commissioner mondejar, yes. Commissioner singh, yes. Madam chair rosales, yes. I have 3 ayes and 1 absent. The resolution is adopted. Please call the next item. The next order of business is item 5, matters of new business consisting of consent and regular agenda. First the consent agenda. 5 a, approval of minutes for the regular meeting of june 30, 2015 and 5 b, approving a third amendment to the construction contract with azul works inc. For shipyard artist installation project. Contract number, hps, 0114, increasing the pract amount by 7430 dollars not to exceed [inaudible] and reserving a additional 10 thousand dollars as construction contingency for total authorized expenditure of 306, 430 and extending the date of final completion to september 30, 2015. Hunters Shipyard Redevelopment area resolution 492015. Madam chair. Yes, before we consider the motion can you tell me if we have speaker cards . When i speaki dont know if i am speaking louder than usual. Do we have speaker cards . I do not. Okay. Do i have any questions . I move to approve the consent agenda. It is moved by commissioner mand har and second by commissioner singh commissioner members please announce you vote when i call your name. Commissioner mondejar, yes. Commissioner singh, yes. Commissioner booustoes is absent. Madam chair rosales, yes. 3 ayes and1 absent. Consent agenda is adopted. Please call the next item. The next order of business is regular agenda. Item 5 c and 5 d, relate today transbay block 7 will be heard together but acted on separately. 5 c, approving revision to the scumatic design of 222 beale straight transbay block 7 to add 3 stories and 18 units in building a and 2 stories and 17 units in building b increasing the aggregate number of affordable units in the project from 84 to 119 plus 1 managers unit and making environmental findings pursuant to california Environment Quality act. Discussion and action resolution number 502015 and 5 d, authorizing a permanent Loan Agreement with mercy housing california 64 lp, a California Limited Partnership in the amounts of 25, 560 thousand which includes a previously approved predevelopment loan amount of 3, 382, 525 dollars for the construction of 119 Affordable Housing unit plus 1 managers unit at 222 beale street at transbay block 7 and adopting environmental findings pursuant to California Environmental quality act, transbay redevelopment project area. Discussion and action resolution 512015. Madam director. Thank you madam secretary. Commissioners, in transbays as you know, there are over 3400 residential units that will be built, of that 35 percent of those are over 1200 units are affordable. There are 5 mixed use mixed Income Development blocks under construction or completing constructions or active planning and development, so you are quite active and we are active with our stackholders in transbay and we are excited to bring before you the final stages. The permanent loan for transbay block 7. The Development Partner is mercy housing and always in our quest to build more faster with efficient cy for housing we are pleased to bridge before you this amended scumatic design where we can accommodate more Housing Units in a cost efficient manner with high quality design. I would like taask [inaudible] who is development specialalist to walk through the amended scumatic design and permanent gap loan for your consideration. Good afternoon chair rosales and commissioners. Im here to discuss the scumatic Design Update and permanent loan for transbay project comprised of 120s units. I would like to begin by orienting everyone to where transbay district is. The district is south across Market Street from the financial district and east of the south of market neighborhood. This shows the future location of Transbay Transit Center and oci future development in the transbay project area. As a reminder of the Key Highlights of the transbay project. The public owned unit are redeveloped [inaudible] 1200 will be affordable. These parcels feature over 2. 6 million square feet of new Office Development, 200 thousand of retail space, 9 acres of new parks including the Transbay Transit Center roof top park. The privately owned parcels will add more residential units recollect Office Development and retail space. We went over this the last time i was here 2 weeks ago but i would like to just explain the Development Process for the transpay district. So, the project was originally part of the blocks 6 and 7 Master Development in the transbay redevelopment pauject area. The transbay Redevelopment Area was adopted in 2005 with the purpose of redeveloping 10 acres including transbay blocks 6 and 7 that were owned by the state of california to generate funding to construct the new transbay transit sent squr meet the Affordable Housing requirements of Assembly Bill ab 812. Ab 812 is obligation that requires ocii to insure 35 percent of the new Housing Units built in the project area are affordable to and occupied by low income and moderate income house holds. The project areas impt lmentation agreement is a enforceable agreement that requires ocii to sell that property to third parties Development Including Affordable Housing. Next i would like to go over the histraff of project approval. July of 2011 the former Agency Issued request for proposal to design and Development High density mixed Income Project betrene block 6 and 7. In december of that year [inaudible] for the development of block 6 and 7 with team led by gallb and company as the market rate developer, mercy housing california as the non profit developer along with solomon [inaudible] as the lead architect of block 6 tower and santos pres caught associate a Small Business for affordable component of 6 and 7. April 16, the Commission Approved 6 and 7 disposition and Development Agreement with a dda. With gallman mercy regarding the sale of block 6 and design for block 6 and 7. Later that oct, gallb paid 30 million for the block 6 and [inaudible] which is lar slar to inclusionary housing fee and that Affordable Housing fee provided the entire ocii substy for block 6 and portion of block 6 affordable project. Construction of block 6 tower and affordable project began in 2014. The following spring the Commission Approved the permanent gap loan for the block 6 affordable component andconstruction on the affordable component began may of 2014. Finalally, last august the Commission Approved the first revision to the design oaf block 7 which increased unit counts to 77 units to 85 affordable units. As i mentioned before, gallb paid a housing fee of 24. 3 million for block 6 and 7, 14 million used to fund ocii subsidy of the podium building at block 6. The remaining 10. 3 million represents a portion of the subsidy for block 7 affordable project. Further more, 470 thousand dollars paid by gallub[inaudible] here on the screen we have the site plan for block 7. The block is bounding by a commercial biltd toog the north and block 6 is to the south. Beale street is to the east and fremont street is to the west. Today we are asking for your approval of a permanent loanf 25, 560 thousand for the transbay 7 affordable project. The source of the funds will be transbay developer fee squz job housejug linkage funds. July 31, 2015 the loun Committee Recommended approval of this request. We are also asking approval of the second design revision for transbay block 7. The project is 120 Unit Affordable Development which includes one manager unit. It comprising 5 thee 1 bedroom, 442 bedroom and 23, 3 bedroom. It features a community room, on site laundry, bike storage, open space and Childcare Center Service Residence and the larger transbay community. The project units are located in 3 buildings on the site. One, 8 Story Building at the corner of fremont and [inaudible] contains 43 affordable units. A second building located on beale and [inaudible] contains i62 units and there is a 4 story town House Building betwone freemont and beale that contains 15 units. On the screen sadis cription of the projects population, income restriction level and marketing preferences. 50 units rufordable to families earning 50 percent of ami. 69 units are restrict today families earning 60 percent of ami. To qualify for a unit in the development, a family of 4 can earn up to 61, 150 a year. First marketing preference is a certificate of preference and second is ellis act housing. Third preference is given to San Francisco residence and workers followed by members of the public. In addition to the ocii subsidy, the project will be financed with low Income Housing tax equity. Other finances sources include a private bank loan and 500 thousand dollar ectwae contribution. The ocii substy is 213 thousand dollars. [inaudible] and transbay jobs and linkage fees. So, for todays request, mercy is requesting a total loan of 25, 560 thousand to fund construction. This loan represents the gap financingthality enables to the Development Team. The Interest Rate is 3 percent but staff recommends enabling the exectev director and director of Mayors Office to increase to [inaudible] this loan is subject to a ground lease and have a term of 55 years. Next i would like to review the projects marketing requirements which are required by our loan docks. In section 6 of the Loan Agreement which was included as exhibit c in the packet, explains the borrowers market requirements and attachment t 1 and 2 detail the early outreach and marketing protocols. Mercy housing is required to provide early outreach and marketing plan one menth after construction commences. Rent or readyness training will be provided by access it housing consling agencies preapproved by the Mayors Office och housing and Community Development. The rental readyness training provide families with information on budgeting, credit counseling and application to apply for units along with the other items you seethen screen. I want to give a update on the projects professional conceltant. Mercys team performed exceptionally. To date the developer received 9thry sbe, 27 [inaudible] and 50 percent wbe for professional services consultants. All the Small Businesses enterprises are San Francisco firms. We also have bigraphical information about the key consultants. The project architect, landscape, architect, structural and electrical engineer, mechanical engineer are San Francisco firms operating between 20 and 30 plus years in the city. At this point i would thrike transtigez the scumatic Design Update. Early pricing of the initial design which utilized a wood frame showed spiking material cost which jeopardize the projects feasible. Mercy, design team and the contractor, exploreed design option that reduce project cost. They determined by switching the structural system from lumber to light gauge steel they can build higher. By switching to the prefabicating steel the design team was able to add extrastories. The scumatic design revision is consist wnt the developal control jz approved by the Transbay Citizens Advisory Committee in april this year. I would like to invite up Bruce Prescott to describe the key design changes of the updateed design proposal. Thank you ben. Commissioners. As ben mentioned, thearound this time last year we were before you with the previous design which had a 6 Story Building on one end and 5 on the other. At that time wood construction seemed to be the most affordable and efficient way to provide hoizing on this site. Those assumptions didnt play out so we went to the steel frame system called the [inaudible] structural system which allows a very efficient delivery up to about 8 stories that is also the height limit set on the site by the master plan for the transbay district so we decide today take advants objectf the height and bring in the 35 units which provides the High Foundation cost of the site overa larger number of units for a more efficient project. The main chaijers are in the 2 podium building. They are circled in red on the screen. The building facing freemont street, left side of the screen, we refer to that as building a and the buildings facing beale on the right side, each went from 5 to 6 story massing to 8 story. In the center, the master plan contemplated a pedestrian scale residential street on the block 6 side. The town housing of 3 to 4 stories were mirroring that scale so the clemen tinny street will main the pedestrian feel envisioned in the master plan and that is developed in the other blocks 8 and 9. The main changes in the ground floor plan brought about by the larger buildings is in building a, which is thelift side of the screen, we need a above ground transformer vault which takes up the space we would have liked to use for Community Use for the residence in the building, otherwise the plan is very much the same. We still have units on the ground floor where stoops and entries with the exception of the corner at [inaudible] all of climen tina street is activated by coming and going and building manager on site. Also on beale street on the ground floor of building b is the 4500 square foot space that will beb come the childcare sener. As you probably recall directly across beale street from the project is the transbay park so that connection between the childcare and the park was something we wanted to maintain. Look thath massing of buildings, this is building a facing freemont street. Freemont street is where the freeway ramp comes down so the frontage that faces that direction needs to be sound isolate{not as open as in other directions. The key element we want today bring is recognize the lower scale of freemont street so in both of the 2 podium buildings there is a visual break in the building at a height of 5 stories where there is ayou see in the diagram, the upper left of the screen, there is a break where the facade changes to recognize that reduced height and more pedestrian scale of freemont street. This was the design that was presented to you a year ago for building a facing freemont. Facade made up of corrugated panel and cement plaster. At this time the building was a 5 Story Building in a neighborhood of buildings that start at 8 and go up to 30 or 40 stories so the design intent is make it look big and feel like a proper member of the neighborhood. With the larger building that is less of a issue and the building is quite tall and by emphasizeing the verticality of the windose in the units we make it feel like it is proper member of the freemont street collection of buildsings so you have the charles swab building next door and Office Buildings to the south of the buildings is [inaudible] it will fit in with that praed of buildsings down the street. At the same time it steps down towards the climen tina with the canpy. This compares the previous buildings and what we have before you today with the 5 and 8 stories. For building b facing beale street, it faces on to the transbay park so we are making a much more open facade and glass in the units and bey windows that project to open the build toog the park, but again it also recognizes the more pedestrian scale of climen tina as it turns the corner of the south side of the site. The previously approved design for this building had a big bey windowen the corner and that was the signature element with the newer buildings that is 3 stories taller we are going more towards reducing the scale at the corner to recognize the climen hp tina street pedestrian way and as the building comes to beale street it step z up and the tall bey windows emphasize the size. The ground floor along beale street is open with a glass facade into the chile care center and we are designing with the childcare specialist a screen wall that goes in front of the glass so there is a mix of daylight and privacy for the kids in their classrooms. This is the diagram matic comparison of what fsh approved on the left and what we are currently proposing on the right. Climentinny street, the town House Building is changed from wood to steel frame thrks form and araimpment of the building remains the same inside. Has a residential scale with small scale bey windows, horizontal siding and the generous stoops that ground level. This is the diagrammatic version of the climen tinny street facade with the podium buildings. You see where we carved bal cunies and added cornices as the climen tina street frontsagism we are working with south of market chaild care for design thrf Childcare Center, which are not part of the scumatic design but ill show a couple images so you can get a idea where we are with that bauds i know it is a important component of this particular project. We are collaborating with zpz partners from italy who are experts in pedagogy [inaudible] that pedagogy is a key part of south of market childcares approach to childcare and the main feature in terms of architecture is the building should not have corridors but be a greeping of classrooms around a piazza like a city. That is the design plan that is here on the screen. The sort of irregular space in the middle is the pipotsa and flows from beale street that is used by the kids so that is the central Meeting Place and coming and going from classroom jz the Community Space is where the kids eat lunch. It makes a sitee out of the Childcare Center. We are just getting through scumatic design of this space as we are in the building as a whole and integrating as we go so that on the left side here is one of the classrooms with a view to the garden you see a feature in the middle of the classroom is a steel brace that makes this project work. These are big prefabicated steel frames that go up quickly and therefore help keep the Construction Costs down and working with the designers in italy we made them a feature in the Childcare Center itself so it they are Something Interesting for the kids to see. On the right hand side the lower imsubject the central piazza with the lunch table and theater stage and that is the central part of the Childcare Center. Then well introduce the operator of the Childcare Center in case you have questions about the operations. With that ill turn it back over to ben. Thank you, bruce. At this point i would like to switch gears and discuss parking at block 7. Funding [inaudible] stemming from the disaleutian rom o thf Redevelopment Agency require the develop programs for block 6 and 7 be amended to make the affordable component financially feasible. As such, parking was reduced for both or modified for the market rate and affordable component of block 6 and 7. Adding more parking space frz the residential of 6 and 7 would have diverted scare funds for additional affordable units. So, gall iband company has made sure that block 6, there is a underground parking garage under block 6 that includes 3 car share Spaces Available to all the residence of block 6 and 7 including the affordable components. Also, back in april of twen 14, the Commission Approved the block 6 permanent gap loan and air rights lease so that development could move forward. As part of those approvals, the xhilsh approved reduction in the number of Parking Spaces for affordable component of block 6 and 7. At the time the number of designated affordable spaces was reduced from 13 spaces reserved for block 6. Mercy requested in the Commission Approved the change to preserve fund frg the development of affordable units at block 6 and 7 and given the transbay district is so rich with transitopings the block 7 affordable project will not have dedicating parking in the underground garage. The temporary transbay transit terminal which is the future site of the park, is across the street from building b and right now it has no less than 10 muni lines running in and out of the temporary terminal. Additional 10 muni line are accessible on Market Street jooust a few blocks north. Ocii staff worked with muni to reroute the number 10 bus line so it now has stops within a block of the safe way Grocery Store in mission bay north and within 2 blocks of the sorth of market trader joes. Mercy housing has other properties in the city with no parking and they do not consider parking necessary to serve the needs of the residence. The transit options in transbay exceed those available in most of mercys other Housing Developments. Mercy staff expected based on experience in addition to mass transit block 7 house hold will utilize transit options including a variety of ride and car share services. Next i would like to provide an update of retail development. Gall ibmarket rate tower on block 6 include 9 thousand square feet of retail space. Glaulb hired Colliers International which a nrlsh real estate broker. Gallb is committed to attracting xhrjs tenants that serve all the residence of block 6 and 7 as well as the larger transbay district. The block 6 affordable podium building includes about 2100 square feet of retail space and mercy secured fillphil s coffee. Block 7 includes a 4 thousand square foot childcare space as well as programs Community Space at the ground floor of building 7 a. Staff will be back in front of you this winner to approve the ground lease for the block 7 affordable project. Mercy does intend or hope toog begin construction of the project in spring och next year and the Development Team must submit early outreach and marketing plan within a month of construction commencement. Construction is anticipated to wrap up in the fall of 2017 and resident move ins begin that summer. With that that concludes my presentation. [inaudible] the south of market childcare and Mayors Office of housing and Community Development. From mercy we have [inaudible] director of real estate development. William hoe, the senior project manager. Sister patsy harny, a Resident Services coordinator. [inaudible] we have bruce who presented earlier. Cahill contractors we have guy, [inaudible] south of market chile care center we have [inaudible] the exectev director and [inaudible] their coo. From the Mayors Office of housing and Community Development we have maria [inaudible] just in case there are questions about how the lease of block 6 is going. Lastly, we have peter heartman who is the chair of the transbay cac here. Do we have any speaker cards . Anyone who would like to speak on items 5 c or 5 d . Good afternoon. My name is peter heartman. Im chairman of the transbay cac and have been a member of it since [inaudible] i served on the develop Selection Panel for this particular project in 2011 as well. I just want to tell you that as you already heard, wethe cac, the project sponsors brought the change for the amended design with the additional affordable units to rcac meeting in april and unanimously approved it. We thought this was a great change. I think first of all, any time we get more affordable units in the city in this projsqueckt the city, that is great and we were very happy to see that change. Also, we think the change from wood frame to steel frame is a positive one in terms of it is better and more durable construction and technology. I think it is the architectsit fits in better. The Higher Heights fit into the neighborhood better and think will result in a better project so think you have a win win win here for the project and urge you to support it. Thank you thank you. I donts have anymore speaker cards. No more speaker cards, okay. Commissioners, questions . Commissioner singh. I have a couple questions. The loan to mercy housing [inaudible] interest is 3 percent . Correct, as planned, yes. 55 year loan . Correct. When you a permanent loan it means it is attached or linked you could say to the ground lease so the purpose here is to maintain permanent affordability of the project. The loan is tied to the parcel and it does get paid off over time but not in the entirety and that is to help protect the affordability of the deal. [inaudible] it is rezidial reset loan so it comes from sur plus cash. People pay monthly or yearly . At the end of each year there is a calculation of the sur plus cash. The typical walter fall works so 1 3 of the sur plus cash go tooz the developer and 2 3 to ocii. Do knroi how much loan they have from us, total loan we have all the projects to in the past . How many loans just with mercy housing . That i dont know off the top of my head. Anybody knows . We can get that data for you. [inaudible] for a number of years, so i just want to know how being paid. We can follow up covering the last 10 years should cover the request. Okay. What is the difference between wood frame and steel frame . It is better as you actually heard peter just say, it actually protect the dur ability of the building. We are in a earthquake zone. I want to know it does 2 things, it allowstuse take the bulk massing of the building higher which gets the additional 35 units and also does make for a more stout and longer lasting building. Maintenance is typically easier. The other question i have is parking. What is free car share . To be very frank, transbay 7, the project in front of you know has no dedicating parking in the transbay 6 underground parking garage so there are 3 dedicated care share spaces gallb commit today having in the garage available to the affordsal residence of 6 and 7. How many total number of parking is there . In the entire garage i might turn to shane on that, but think is somewhere around 110 i believe for the market rate component and another 13 for the block 6 affordable units and there is the 3 car share spaces. I believe that is correct. I suppose 2 people want the same [inaudible] who gets it first . 3 people are there, everybody has toim satisfied parking is not enough. It might be best to invite the developers here up at this time to have them speak to this issue and would like to invite bark p barbara [inaudible] up. Good afternoon commissioners. [inaudible] director of Housing Development. In response to your question commissioner singh, we have rented up very little or no parking including 10th and mission, 1100 and ocean and the Transbay Development at block 6 and while everyone would love parking, what we have found is that our families are not turning down unit because of lack of parking. We have huge demand for these precious units as evidence of block 6 had 5 thousand applicants for 70 units. What we are learning is families are making it work and doing Creative Things that a lot of us do that may not have cars, they Work Together to share a uber or cab somewhere or we do things like, we have a electronic rez Dent Services buildboard in the development and may talk about unit 101 is doing a cost corun, does someone want to join . We are learning as we do more developers there are creative ways to utilize the Resident Services plan to help families lead high quality lives without owning cars. I dont know how [inaudible] if they want to go somewhere and can not go. I dont think it is a quality of life. The one other thing just to piggy back what ben said about car share in the market rate garage is that we have been working with both car share and zip car to get reduced membership fees and hourly rates for our families and so that is another incentive because there will be 3 car share spots as well as i believe more care share scattered throughout the transbay project area. I have other question. You are 9 thousand square feet of [inaudible] that is in the market rate component of [inaudible] whatever. You know, the place is there. What kind of [inaudible] you are looking for what kind of i [inaudible] they are at the early stages, but what im informed they are looking at is they talk to Financial Institution jz food Service Options and then just other local neighborhood serving retail, but they are at the early onset of determining what will be there. I prefer a grocery shop where the people lives. [inaudible] i would also like to point out that copal weeks back we brought the transbay 8 project in front of the commission and that block is literally directly across the street from transbay 6 and 7 and they are currently related Companies Looking into providing a large scale grocer at that site. Fingers crossed if all goes well at that site there would be a grocer in very close proximity to block 6 and 7. Commissioner singh, under the directors report ill talk about related tndc efforts to attract a Grocery Store across the street from this development that is under your consideration. Thank you. Great. Thank you. All very good questions. I hate to talk about parking, but i know that you responded to this. Im looking at transblock 7 and there are 23, 3 bedroom units and so that means 23 families i would assume that will have 2 to 4 kids maybe and to have no parking is just as commissioner singh said, will impact the quality of life of these families. Then you have a 40 slot childcare facility, so like 40 families approximately will be using this, which is great by the way there is a childcare facility, that is wonderful, but we do have affordable units but the cost of living will impact because some of these families may have to rent parking and then earlier you said there is 125 Parking Spaces for market rate units, which im assumingnot sure if these are rentals, the units are rentals or Home Ownership in the area and i bow know there is a push to use transit but im wondering if the designers of this building have families and small kids and that is a consideration because especially for women. Women who have kids and trying to balance their work and personal lives, so i have a veryim very concerned that there is noti understand that i cant remember her name, there is a trend towards not using cars or sharing. We are in a sharing economy and think that is great, but at the same time the quality of life is impacted. It is all most discriminatory for affordable home owners or renters to not have access to parking. I understand the car share, is that something for reduced fees, is that something we can subsidize because i subscribe to zip car and car share and that is quite a fee to use. The membership has gone up through years, the renting a car has gone up through the years. I know i live in the south of market, when i move parking was 75 dollars and now it is 500 dollars. You know where im going here . It is just to me something that i wish i think we need to seriously look into this especially for those who areif we are building 2 or 3 bedroom units we need to think of families z the hardship and raising families and having to pay for all these things because you are forced to pay for market rate Parking Spaces eventually. That is a concern and i dont know what the answer to that is, but maybe for the subsidized car share we can further subsidize that, maybe cover that expense for especially for those rentsing 2 or 3 bedroom units with kids because it is a safety issue at the same time. You were saying the grocery that is being planned, i dont know which Grocery Store is going to be there and from the last time i think we were talking about a high end Grocery Store, which again will force those who are renters of affordable units to be forced to go to costco, which is nearby. It is hardship. There are 6 thousand applicants for the units which is great, but at the same time are we realistically looking at what we are doing for the families so they dont leave San Francisco and this is what this commission is about, to retain families to stay in San Francisco to help them live a better life. So, those are my concerns and what are we doing to address this issue . Yp dont know if there is a answer to this, but i would like to encourage our staff, you and our developers to really think about this especially now that we have increased affordable units. I was imagining me what it was like as a single mom and the difficulty of having a quality of life and be able to meet the requirements of living in San Francisco. I feel like we as a commission have the responsibilities to think about this and look into the future. So this is more like a comment than a question, but if you have some responses to this and actions that we are taking. One of the things i can say about this particular project is that with guidance from ocii Housing Development staff, mercy went out and applied for what is called, [inaudible] funds. Affordable housing and Sustainable Community funding, sometimes referred to cap and trade money at the state level. One of the requirements of going for the funding dollars is a limiting of parking and one of the things that made this project so competitive but it didnt within, it narrowly lost is it was in such a transit rich district. Staff is continuing to push and support for the project to get that funding in this fiscal year from the state and if it was awarded we would have to maintain at this parking level, but i absolutely understand your commentss and concerns how it will effect families. So, can we have somebody from mta here and maybe we can talk about what is being planned for the next few years to address transit issues . You say transit rich, what does it mean . Sally [inaudible] direct frr the record. We have been in consultation with staff from mta because this is a topic of concern. We have talked about mta staff come here and describe the various constraints that dense urban environment like the transbay environment faces in terms of providing amenities to redense and the constraints that come with parking. Parking means a spot to park your car and generates quilet a bit of traffic in the streets and that is something mta has been looking at to understand that relationship between Parking Spaces, Traffic Volume squz the number of residence in the new neighborhood and i think they can be helpful in gibbing that hire level view of how it fitsd together we tried to pull together nrfgz. It is still in the early phases but hope we can bring that to you this year and give you more information because it is a fairly complex problem that a neighborhood like transbay is facing. It is transit rich. Are we going to take the few dollars we have and turning it towards creating more affordable units or parking space squz what are the consequences of each of the choice jz that is what we look at as we evaluate the projects and we can provide information on how we come to those recommendations. The marketing piece, i know i see mrs. [inaudible] could you address that . Is it time to do that . What we are doing . Good afternoon commissioners maria [inaudible] Mayors Office of housing and Community Development. Marketing. So, i can tell you what is happening at 280 beale. When can t comes to us, we stop saying block 7, 6. We go to the address. 280 beale, over 5 thousand people applied, 5350 all most. We have 704 names of those 5350 and first i want to say is mercy has been very very cooperative in our efforts to standardize the lottery procedures we have told you over time we are trying to make sure all or Development Partners are using the same procedures so people are not confused about what happens when i go here and go over there. Mercy is great and really put a lot of input into the creation of dahlia and a single application that people can fill out. This was the old fashion way with paper application squz we are moving towards [inaudible] it is with the Development Team that is putting it all together for us and hopefully well have that ready for testing in november so it is moving along. We had right now they signed 27 leases at 280 beale and they should be at 100 percent occupancy by the end of september. They are on track and of those 5349 applicants we had 12 cop holders. That is pretty sweet. 5 of them are already approved and are in and 1 is in the process. We anticipate that half of them will be housed. We had a few withdrawals, a few people changed their mind. Out of the 12, only 3 were not qualified pin one way or another so that is a real improvement and we are still work wg access to housing to help people get approved. We had one ellis act Housing Preference certificate holder and they will be moving in. It is mercys first ellis act Housing Preference person so it nice. All in all, i think that our whole process at this project was very smooth as it could be and still is. It is moving forward. We hope that block 7 will be the same. Any other questions about marketing or . Just a question on the 12 cop, are these for 1 bedroom or 2 bedroom units . I dont have that information. Are there families in the 12 . 3 were not qualified, so the 9 . At the end of september well get a reportnot from dahlia. It is the Old Fashioned way until then, but well get a report on all the demographics of all the 69 households housed including the cop holder so ill have that information for you. At the last Commission Meeting i asked questions on the ellis act Housing Preference program, how is it going and how many folks are qualified and it seem ded based on my memory on the pull of eligible ellis act evicted tenantsi dont know how many of those could be eligible for this program because i know there is a 5 year for disabled tenants, in my recollection of the budget Analyst Report is in the thousands of those evicted because of ellis ablth and the report from staff at the last Commission Meeting is in the neighborhood of under 40 is my recollection or under 50. We did ask the question and hopefully your folks will be able to tell us more about how is that Program Going . Are the partners or Community Based Organization Partners doing the heavy lift they should be doing because it seems to me the mayor office of housing cant be everywhere. You depend on the network oaf Community Based organizations to be the channel of where folks know about it and apply for it. I want to make sure we focus on that because we recommend a neighborhood preference policy and the south of market is the area that is significantly impacted by ellis act evictions based on my recollection of the budgetanalist report. In a nut shelli cant have exact numbers now, but the ellis act Housing Preference, we have over 150 folks with certificates and evictions are high for all regions, not just ellis act because of the high market we are in and along with the neighborhood preference, the there sadis cushion of expanding the ellis act Housing Preference program to include other displaced tenants andbecause there are thousands of people that revicted and if the pool is so small of people that are actually qualifying for the program that we may need to broaden it to be able to reach more folks that are being displaced. That is part of the discussion with neighborhood preference so well keep you posted how that goes. We dont have income information on people who are evicted so we assume there are a vast mur jort of people who need the housing and it true. We are seeing also with the ellis act Housing Preference folks that are at a higher income and still within below 120s percent income, they are purchasing vmr units which is great because they dont have to worry about anybody kicking them out anymore and so we are looking at expanding that to reach more of the people that are being displaced now. I know we have a list here about some of the Community Based organizations and i recognize all of them, but i assume this isnt a exclusive list here. [inaudible] San Francisco Lgbt Community center, San Francisco Housing Development, there has to be more than this . There are and alli think that all of those agencies are active in working groups on addressing access to housing and they are providing the services that ben had on his list of the services that we provide as rental readyness. It is much more all across the areas that need it now instead of a couple agencies there are all of the agencies that you mention are providing those services and helping folks that do get displaced. Helping them navigate the system to apply for the lotteries and get in and get housed. Ya, they are all really good partners and so are the developers that are embracing the ellis act Housing Preference like mercy and are incorporating the preference into their marketing strataniess. I assume the certificate of preference holders t is in encouraging people coming to transbay. Absolutely. Of the 5 that were approved so far, they are all western addition. You were not here at the last meeting but said well throw a party come dahlia is launched. These are great ruments result frz the old fashions way, but you can imagine the benefits when you have a more not automated, but a moretechno logically accessible system, and it is accessible and not just easier for our developer partners, the main point is that it bill make access to the end user more friendly and easier to maneuver, easier for their counselor to help them , Language Access will be easier. We are justya, big party. Okay, let me see. I dont think i have any other questions on marketing. Does anyone else have any other questions . Just want to know that you approve 5 people, 5 families and how you do that . Um, those 5 households met the criteria that mercy set up. Before they begin their marketing, they meaning mercy, they give us a marketing plan and tell us in advance of any lottery or any selection how they are going select folks. They are going tothey told us in advance what they what criteria for nat being selected. What was going to keep you out of the housing in advance and we had the lottery. The cop people started with them first. They go through their documentation and meet with them 1 on 1 and go over their income, go over their making sure they do meet the criteria they set up and if they do, they are in and if they dont they are referred back to housing counselors back to the access to housing folks to see what we can do to help them work on whatever their issue is that is keeping them out of housing and fix it. It was done by lottery . It was done by lottery system but the cop folks go first. We do buckets, lotteries in buckets and the first bucketwe have over 5 thousand applications and took the 12 cop people out. We do a lottery for them and pet them in order and mercy goes 17 and do a separate bucket for ellis. There was only one ellis person and do the remaining thousands of applicants. I see that there is a 5 thousand applications for this but it dozen es dozen mean you are a second class citizen and have equal treatment as anyone else. Absolutely and that is what we are working hard with each and every developer to make sure that thing are done as fairly and transparntly andachy witable as policy and mercy is great about being transparent and equitable with this process. Thank you. I just have a quick question on the design action. It is a simple question. I like the wood and i understand the cost and i also like the added units so it isnt that i want to change anything, but im curious are Construction Cost so outrageous . You mentioned in your presentation there is economy of scale and come back a second time and each time we talk about adding and changing, but in part it sounds like Construction Cost or cost of materials. Is that driving these changes . Yes and think there is 2 factors, one is the foundation cost. Because we are right on the historic shoreline of the bay no foundations are quite expensive regardilous of what you elect to put on top buzz wree supporting soil to keep it from sliding sideways with a system of soil cement columns. It is very elaborate and when we get under construction youll see what a mess it is. Besides that when i speak of wood frame it doesnt impact the exterior material. The material people say is the same as observe. Wood frame we cloud the outside with placer and meter and we still cloud with plaster and metal. When i talk of wood frame it is the wood studs so within the constraints of small scale wood frame construction like you would see in a house, you can get tupe 5 or 6 stories wp a concrete podium. Once you go to steel frame which is what wroe see in a Office Building 3 4 f1 i love the design that you were talking about, but i was going to ask about this is probably for mercy. The qualification criteria for childcare, who can apply and use it. You have it. So, it isso, there is the Lease Agreement between mercy housing and south of market childcare that describes a order and preference of occupants for Childcare Center first going to concern of livering in transbay 6 and 7. The second preference is to people in the transbay redevelopment project area, south of market Redevelopment Area or the zip codes 94103, 6 and 7. The third is for children of families with a parent working in transbay. In any case, at least half the total number of children should be from low to moderate income families. There are about 40 children will be accommodated and the fees are subsidized good afternoon. My name is [inaudible] the enrollment will be, we anticipate that well be able to get license for 40 to 50 children. I might guesstimate 45 children. Half are from low income families, state subsidize contracts that will provide and cal works contracts and other contracts the city [inaudible] well serve infant, toddlers and preschool aged children and the other 50 percent are private families do you know how many childcare facilities there rin the vicinity . I know you are running several. We have 2 facilities one on folsom we are licensed for 90 children. 60 percent are low income and the rest are private families and then we have another facility on [inaudible] all most 90 percent of the children at that site are subdized low income. How many . 48. You have 3 facilities. This is our third facility. In mission bay we have a couple of them. [inaudible] on king street. The mission Housing Development and the is a childcare operator and there is the family, the 3 family spots accommodates 12 at mercys 24 street development. Ucsf also operators a childcare operator and there are other proposed within commercial developments including the proposed Head Quarters on blocks 26, 27 youll see in the fall and potentially killrow development on block 40 on 16th and owen street. I think there one in candle stick there is one existing that is adjacent to the als griffith Housing Development that will be relocated, yes these are the ones we operate. I believe there is also a childcare facility in hills plaza. Yes, there is one. You know the waitic list in just south of market is long. In one of the sites there are 500 on the waiting list. [inaudible] did you say 5 thousand . 5 thousand, yes. We are talking toddlers. Infant and toddlers are limited in San Francisco because the cost is very high so that is why we are very excited about it project. It isnt just Affordable Housing it is affordable childcare. I have a feeling we will be able to get license for 48 children so they create 48 slots that are really needed. I also believe transit sent r has childcare facility and the sit affof office through early care and education, thank you so much, city wide coordinating body because Many Developers pay a childcare fee and it is the coordination that happens through that office to provide the construction there is the Financial Plan that has to be put together in place for the operating. For new childcare facilities they run through that office. Thank you for all the work that you do and for mercy for incorporating childcare. The number is just staggering. Yes. Wow. I would go for childcare versus parking. It is a negotiating point. I heard from a couple frents moving to east bay because is is for housing and childcare issues. Thank you very much for all the work you do and mercy too. The childcare facility looks like to will be fun. You can be a child again. Okay, so i think no more questions. There is a motion by commissioner mondejar. And there will be a second by commissioner sing. Before we take a vote i want to recognize the spectacular accomplishments and performance on the sbe program. Kudos. Please call the roll this is for agenda item 5 c, revisions to the scumatic design for transbay block 7. Commission members please announce your vote when i call your name. Commissioner mondejar, yes. Commissioner sing, yes. Commissioner booustoes is absent. Madam chair rosales. I have 3 ayes and one absent. The next is for agenda item number 5 d, authorizing a permanent loan. Commission members announce your vote bh i call your mondejar, yes, commissioner sing, yes. Commissioner rosales. I have 3 ayes and one absent. Motion sudopted. Please call the next item. The next item is 5 o, 8erizing pursuant to transbay Implementation Agreement a fairs amendment to the memorandum of understanding what the city and county of San Francisco acting through department of public works to increase funding for the transbay folsom street Improvement Project in an addition amounts not to exceed 345, 861 for a total not to exceed 829, 253, 00 transbay redevelopment project area discussion and action resolution number 522015. Madam director. Thank you madam secretary. Commissioners there is a item in transbay as part of our support for building neighborhood infrastructure to support the dense housing and mixed Income Housing and the commercial development component. We also have a charge to facilitate the open space and streetscape improvements so this contract is building out that complete neighborhood and propose to extaepd our contract with department of public work tooz move into the the next phase of work for the folsom street improvements which are critical for providing that neighborhood infrastructure. With that i would like to ask kevin mat sooda to walk you through the proposed contract amendment thank you exectev director bohe, president rosales and directors. This item is to approve the First Amendment to the memorandum of understanding with the San Francisco department of public works transbay folsom street Improvement Project. The mou incorporates a scope of work of transbay folsom Street Project agreement which divided into 2 phases of work. The phase one scope of work provides Design Review services 350 percent documents, [inaudible] conceptual designs for Traffic Signals and approval for the project designed by ocii through its contract with [inaudible] Landscape Architects or cmg. Sfpw entered into the Transportation Agency and San Francisco Public Utilities to assist in the project. Both scopes of work for phase 1 and 2 are addressed in the mou, to date only phase 1 cost of 483, 662, 00 is contracted with sfdpw. Currently the project team completed nearly all the phase one scope of work including the 50 percent construction documents thus requiring a First Amendment to the mou to begin work on phase 2 related work. Phase 2 covers 100 percent construction documentation bedding and contracting suvss, construction manage lt inspection and acceptance services. To main the project schedule and properly sequence to thwork, ocii is breaking out phase 2 into 3 subphases. Subphase 2 a, 2 b and 2 c. Subphase 2 a provides the funding to complete the necessary work from 50 percent construction documentation to 100 percent construction documentation or permit submission. Scope of work for subphase 2 b include the necessary work to bid and contract the project and anticipated to be brought back to the commission for consideration in october of this year. Subphase 2 c, scope of work covers the Construction Cost and that is anticipated to be brought back it the commission in the First Quarter of 2016. This slide shows the project limits starting at the top left hand corner is second and folsom street and the project extends 6 city blocks easterly towards spear street. Development block 1, 8 and block 9 of transbay front this project, they will be required to provide all of the public improvements while at this project we meet at the newly constructed curb lines that will be installed. This is a perspective view that shows some of the gardens and streetscape with colored concrete granite accent pieces, new trees, [inaudible] and construction at the rain gardens. For subphase 2 a, the scope of work required to be performed includes taking the traffic signal dephrines and finish it to completion to 100 percent construction documents. Private property investigations into the presence of subside walk basements because that information is snood from a survey of the different Building Permit applications at the site. Item 3 is the Public Outreach regarding the construction of the project and that is on top of the cac meetings that we conduct and the outreach redevelopment has. Pub lrk works also has a outreach process. Item 4 is Community Benefit district coordination regarding items that will be maintained by city, city departments and the cbd itself. 5 is application and permit fees for removing and planting new trees, driveways, side walk legislation and improve. Permit fees and item 6 is project cost to oversee all the suba work. The cost is 310, 861. 00. In addition there is a need for sfmta livable streets to review the drawings and have approval coordination offunds are needed for livable streets section to review documents, draft required legislation to the board and presents the project to multiple city wide committees. The cost for this item is an additional 35 thousand dollars that was not originally considered in the mou. Combined with subphase 2 a required funding of 310, 861, the aggregate total cost of the First Amendment is 345, 861. Ocii desires to have sfdpd to perform the work through the First Amendment and increase the professional service fee tooz include 345, 861 in addition to [inaudible] overall total aggregate amount of 829, 523, 00. Expenditures for the transbay folsom street streetscape are recognized in the [inaudible] staff will include project expenditures for the next period in sufficient funds are available to continue with the First Amendment. Approval of the First Amendment to the mou with dpw allows the completion of feasibility and planning studies for portionoffs the streetscape open space plan and related community outreach. These activities will have no result and Significant Impact on the physical environment and exempt from sequa. So, that concludes the staff presentation. We have 2 representatives from San Francisco department of public works, oscar g and marsy cumacho. Thank you. Do we have any speaker cards . No. Okay. I can ask. Do we have any comments for items 5 from the public . Moved by commissioner singh commissioner members please announce your vote when i call your name. Commissioner mondejar, yes. Commissioner singh, yes. Madam chair rosales, yes. I have 3 ayes and one absent the resolution is adopted. Thank you. Please call the next item. The next item is 5 f, conditionally authorizing the exectev director to enter into a Grant Agreement with the city and county of San Francisco acting through the department of public works for up to 450 thousand in tax exempt bod proceed for palou avenue streetscape and jening street Plaza Capital impruchbments consistent with recognize obligation schedule item 387. Subject to approval by the ovsite board and department of finance. Bay view hunters opinion redevelopment, discussion and action rez solution 532015 commissioners there is one notable relief mechanism that is enacted in disaleutian law and that is the ability to expend pretwonet 11 bond proceeds. We do have the ability to transfer those bond proceeds to the city and county of San Francisco for projects that are consistent with the bond cuv nns and you have seen a number of these previously authorized in the south affmarket area and the bay view and we are nearing the second to last of the bond proceeds. Now all we have left is the tax exempt housing bond proceeds after this for your consideration so through a great deal of Due Diligence the staff worked with the city through department of public works to come up with a program for the proceeds in the bay view Hunters Point redevelopment. I would like to ask [inaudible] with ocii staff to walk you through the proposal and the process. Good afternoon commissioners and executive director. As director bohe stated earlier this year there are several items that have compl before you related to the the access bond proceeds sfr iimeer here to seek authorization to enter into Grant Agreement acting through department of public works for up to 450 thousand dollars in tax
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