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 IncludingAffordable 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 CenterService 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