Twin peak reservoirs cuts in, 260 pounds of pressure. If the p. U. C. Can guarantee the residents of the Richmond District the potable awss fed by a Single Source out of Sunset Reservoir will provide protection equal to what we have on 12th avenue, the residents in the Outer Richmond would be very happy, i would think. I dont know if they can do that and you might want to ask them if water from Sunset Reservoir will produce the same pressure. I think that would be very telling bit of information. And then ask you, too, that placement of hydrants. In your since youve had so much experience in this, in your opinion, how frequently should we have a hydrant along our corridors in the richmond . Lets say for example, the design is to have a line of hydrants down 43rd avenue. One hydrant on every block. Excuse me, is it one High Pressure hydrant on every block . One High Pressure hydrant on every block, thats correct. The reason being, that best water stream, 300 feet and a long city block is 600 feet. You have to be able to fight it from a hydrant at both ends of the block. Ok. Thank you very much. Appreciate it. Thank you. Ace on the case. I know you are with city hall but youve been around. For the record, for the clerk, the chairperson has the liberty to listen to public conversation, not no clerk. Now, clerk, could you on the screen here, this is your job, on the clerk. I want that, i want that, not until i say it. My name is ace, and im on the case. I came here specifically to talk about that, and white gentleman come up here and sing about the birds and the bees and the flowers and the trees. Aint going to stop him. One black man, name is ace, been here over 25 years and shed some tears for the base. Im here, speaking on that and i support it. But im also here for black history month. I came to commend this black powerful person here, p. U. C. , i went to sleep to listen to the people that work under here and a demonstration whats happening in the city by the bay and then a clerk come up to me and say ace, what are you going to get up there and say . What the hell is going on here . Anyway, back to whats going on. My name is ace, yall, im on the case. Its a new year. Dont want to share no tears, im on a mission, dont need your permission. Starting a new tv show here yall, its called this week at city hall, im going to tell it all. Congratulate the water department. This is tremendous and i commend you for bringing them up here. By the way, my time is up, and ill have a little bit more to say. When they hear that, they are going to try to take me away. Im here to say if yall dont do the right thing, ace, im going to start filing complaints. You hear what im thinking . See, when you file complaints you have to have some kind of theory, you have to have what they call excuse me, oh here, i want to show some black history month. I commend you, brother, our black community commend you, you are powerful and you are white [bell rings] thank you, ace. One more minute. I want to show this. I mean he got the chance to speak. I questioned him. I just want to show how racial the city. All the white people over there. Go over there, and i 21 years. So i want to control that. We have to change that. Thank you so much for your comments. Thank you, ace, we just want to say thanks for what you have to say and we hope that you have and wonderful day. Thank you. Black history. So, i just want to close and say thank you so much to our presenters today. I want to appreciate again the work they have done and getting us to this point. Thank you so much. Mr. Kelly and your staff and the Fire Department. Ive been pushing hard for the best Emergency Water system possible for my neighborhood and the west side of San Francisco, and the San Francisco p. U. C. And the Fire Department have been incredibly responsive and open during this process. I do want to say assuming we move forward with the system that looks close to what we discussed today, i hope it can be completed before the big one hits. We are now on borrowed time and a major earthquake is not an if, but a when. I look forward to continuing to work with the p. U. C. And the Fire Department as well as my colleagues on the board to finalizing this plan and identifying funding to make it a reality. Any additional comments from my colleagues . Seeing none, i would like to make a motion to file this hearing. So, we have motion to file this hearing, and we can do that without opposition. You have the gavel, sandy, you are welcome to gavel down. [gavel] and thank you for being here today, and mr. Clerk, please call the next item. Number two, ordinance approving Development Agreement for the proposed mission rock project, seawall, 337 located east of 3rd street between basin channel and china basin park and attributing the park, pier 48, marginal wharf between pier 48 and 50, and p20. Thank you so much, mr. Clerk. And thank you to supervisor sandra fewer for chairing the committee until i got here. I know that this is the second hearing before the board of supervisors, just heard mission rock at the Land Use Committee earlier on monday, and so i want to thank our project sponsor and our multiple city departments for coming back to present on the budgetary aspects, or the d. A. Aspects of this deal. As i have mentioned on monday, this project has been ten years in the making. And something our office has been working very closely with the project sponsor, since 2015, and what makes me most proud of this project is that it is the first project and the first developer that committed to building 40 affordable and middle Income Housing, and you have set the bar for the developers who walk through the doors of city hall in terms of what is appropriate to build in the city. We know we have a housing crisis, but its not just a housing crisis, its affordability crises. So many of our residents cannot live in San Francisco and what is particularly sad is that households that make very good income cant afford to live in San Francisco. And so i really appreciate the giants, our home team as i said before, hitting it out of the ballpark and making sure its a development that will last so many residents. Nurse, teachers, middle class workers, entry level tech workers are not allowed to live in San Francisco and the city they love and the city they work in. So this is one of our largest Surplus Public Properties in San Francisco, 28 acres, and there are many other amenities that will be included in this project, including eight acres of open space, which is sorely needed and in my district and a commitment to small retail and other amenities that our residents in mission bay would like to see more of as this neighborhood builds out. And so without further ado, i want to go straight into presentation. I had ok. Announce presentations and then allow comments from members of the committee. So, i do want to recognize that we will have rebecca benacini, executive director of the port, along with project sponsor fran weld, Senior Vice President of the giants, and controller will present, and we do also have an attendance and adam vanwater, Phil Williamson from the port, jack bare, general counsel for the giants, and other members of the project sponsor. The only thing i would ask, if the, for the portions of the presentation that took place at land use, if we go through that a little quicker today and just really focus on the financial aspects of the deal for the community that would be great. President breed. Thank you, supervisor kim. I just wanted to say a few words. Colleagues, today we are hearing these particular items. I along with supervisor kim introduced the items with the mission rock development, i believe it is a significant opportunity to transform an underyut liedzed portion of our waterfront into a vibrant community and we are excited to get to this point. Its critical for accommodating the citys need for more housing and more Affordable Housing. More than 1,000 new homes. 40 of which will be affordable, and i know supervisor kim was instrumental in helping to lead that charge. One of the things i am most excited about in this project that middle Income Housing units are a part of the equation. This project is building a true Affordable Housing ladder, including Affordable Housing opportunities for those making anywhere between 45 and 100 . Projects of the scale offer the opportunity to expand the housing opportunities for middle income residents and families who dont necessarily qualify for our traditional Affordable Housing levels, but cannot compete in the Housing Market for market rate units. This project will also generate key public benefits, including eight acres of new public parks, investment in securing our shoreline against Sea Level Rise, and facilitate the rehabilitation of the historic pier 48. 74 of our citys voters approved this project, and i look forward to our discussion today where we will get an indepth understanding of how this all will work. Thank you all for being here. Thank you so much, president breed. And mr. Clerk, actually i apologize, i meant to call items, not just the next item, but 2, 3, 4 and 5. Two called. Three, a resolution approving disposition and Development Agreement for the proposed mission rock project between the port and seawall lot 337, same acres identified for 2. 4, approving memorandum of understanding between the port and other city agencies regarding enter Agency Cooperation for the mission rock project. And 5, resolution memorandum of understanding related to and apointing the Port Commission for the proposed mission rock project and making appropriate findings. Thank you so much, mr. Clerk. And so why dont we bring up the port. Thank you. To respond to your remarks, i am going to flip through the presentation and go on the financials. Others can respond to any questions of interest to the supervisors. The actions or sorry, the request for making from g. A. O. Is request a recommendation to the full board on several of the key transaction documents for mission rock, Development Agreement, disposition and Development Agreement, interAgency Cooperation between the port and other city agencies and the m. O. U. Approved the port for the financing districts. You are aware of the site, here it is on the Central Waterfront south of Mission Creek channel, across from the ballpark. Noted the timeline. Began in 2007 when the report went to the state for senate bill for unallowable uses on port land, apartments, office, and we are excited about the benefits and believe it will be found consistent with the state lands, and a Long Time Coming and we are very proud of the Community Planning process we have gone through to date. Today the uses on the site are surface parking, we also have tenants in pier 48, primarily used for storage, special events, maritime berthing. Transformation in the next 10 to 15 years i wont say breathtaking, but very notable one, completing a neighborhood very proud of all the Community Benefits anticipated through this project. Implementing a new neighborhood delivered in phases. Phase one, just want to focus on a couple key points on this slide. Phase one includes what has been one of the most highly desired aspects of the project. The landmark park, chinese basin park, the north side of the property in phase one. Its also the most costly phase, support the entitlement expenditures, it has the beautiful park, and it has some of the key backbone infrastructure, gets the public and the infrastructure out to the water. So, phase one has four parcels to support those level of costs. And point out pier 48 is shown in phase four but the lease document before the board is for a tenyear interim lease to support sort of implementation of the project. It will serve as an outlet for parking needs and special event needs. But during the tenyear term, the port and giants have mechanism to terminate that lease early if there is a longterm development opportunity, found to be financially feasible. Its shown in phase four but we have the ability to bring a project forward if we can get together the uses and the financing sources to make that project come earlier in the process. The Development Program includes 2. 7 million square feet of Residential Office and retail and active uses. 40 inclusionary housing, income levels between 45 and 150 of median income, eight acres of park, and also want to note a key infrastructure feature, we are on the water, we know whats coming so the site is resilient to Sea Level Rise, planning for 6 to6 sure they are resilient to Sea Level Rise. I want to focus a moment on the funding structure and the funding sources. Starting at the bottom of the slide, the way this project will be funded, first developer capital port will also have the ability to put in capital at the election, to fund some of the project needs. Land value in the form of prepaid leases. Port will be signing 12 to 13 leases at the site, some prepaid using qualified project costs and i. F. D. Is before the board, next week, c. F. D. Later once we completed some of the mapping requirements you need in order to form the c. F. D. Those already the key ways we are funding the qualified project costs. Also have to fund the developer return, the port return if we put in money ourselves. And thenl value created beyond project needs. The real strategies of the funding structure that we are seeking to implement is limiting developer capital, more high cost than other types of debt, maximize public financing, thats the lower way that we can pay, lower cost way to pay for thshgs and use port capital and tax exempt that we are able to do so. And just to highlight a couple of attributes of the funding sources. The i. F. D. Is the tax increment Revenue Source capturing future growth and property taxes. C. F. D. , i want to point out, not only public improvements or infrastructure costs, also ongoing services. So, the citys general fund will not be hit by these things. C. F. D. Will be funding parks and streets and those key maintenance items the project will need Going Forward. Another key item is a developer return. Miss campbell may point this out, but developer return of 20 . Through this, through the last five years we have been negotiating the documents, drop it down to 18 for the developers up front investments for back turn sharing for dollars out of annual lease revenues we expect to sign. The project anticipates a new i. F. D. Project area, i, which is part of the existing port wide i. F. D. , i. F. D. Number two. Will encompass the entire site. This slide slows the anticipated costs in 2,017. Not including inflation growth, not including return to the develop error Interest Payments on debt service. Phases 1 through 4 looking down at the first bolded number in the sheet on the right side are anticipated to cost about 191 million. Also estimate for pier 48, 90 million. That will be depended on what use comes forward for that project and what their weight loads will be and that is an estimate we believe will be the eligible costs we can use i. F. D. To pay for. Quick question about that, sorry. 90 million in superstructure, what is assumed that will get built on pier 48 with those dollars . What could get built with that . S. U. D. Allows for, mission rock production distribution and repair, similar to the citys production distribution and repair, and so the estimate there is consistent with what we anticipated when we were working with anchor steam, who later was not able to come forward with the project, but that estimate is consistent with their kind of use. They required a little more for the weight loads they had. Thank you. Sure. I also wanted to point out that out year i. F. D. Revenue may be used for seawall and sea level improvements. We did not attempt to estimate these costs, they could be located anywhere along the port and we dont anticipate them to come to fruition for 30 to 35 years. So, well be coming forward with those projects and they have to go through, but we wanted to acknowledge the i. F. D. , anticipate the i. F. D. Used for shoreline improvements along the port, the port side of the waterfront. I included very we want to talk about financials. Ports revenue are an important component of senate bill 815. Passed in 2007, we would have the revenue or the port with get revenue to use for historic rehabilitation and shoreline improvements. Revenue streams here, they look very typical until you get to the funny wave around 2050. That wave indicates the out year i. F. D. That has converted from paying off bonds that the project needed to going to other port needs, open spaces, work rehab and shoreline. And we would anticipate using those items for whatever the needs of the day are. 30 to 40 years from now. I. F. D. Before the full board next week, but the city has the policy for the port, and passed in 2016, and in conducting and completing the infrastructure financing plan we made sure that all of the uses in the plan and we worked with our consultant to ensure that all the policies that those elig