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 to 6 inches, and a funding mechanism to protect this site and other sites along the port we know will have to face, or have to come up with some armoring and other types of improvements to make 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 then well be sharing it on the back end to the extent there is value created beyond those 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 eligible uses need to comply with are being complied with. We are here today, we have been to land use earlier this week as supervisor kim noted. Well be at the full board hopefully next week and Going Forward from there to state lands commission, and then back to the c. F. D. Formation and then youll see some shovels in the ground shortly thereafter. I would like to ask fran weld to come up to provide a little bit more color on the project, focussing on the financial aspects. I made a major presentation very short by saying that. Before you go, i did have a few questions and then we can move on to fran and controller and b. L. A. Report. You know, two big issues i think a lot about, having worked on these large developments projects, but also representing mission bay, one is the immense costs of infrastructure and how that delays the large projects. This is not as large as shipyards and treasure island, but its incredibly disappointing to entitle wonderful projects reaching high levels of affordable and they are not getting built. And so what are we thinking about in terms of mission rock. You spent quite a bit of time talking about funding for infrastructure and the affordable ways to finance it, have we started thinking in advance to make sure the project does happen and the infrastructure is not what is going to hold it behind . I appreciate that question, we have been at this a number of years and they are wondering when its going to ham. What i can say is we are trying to learn from what led to those delays. I cant answer what might delay our project, but i can say that the development and disposition agreement includes milestones that must be reached for each phase. For example, three years after project approval, the giants team, or the Developer Team must put in an application for phase one. If they dont do that, they are in default of the d. D. A. The way we try to ensure that we can at least have a moment to, a moment, if you will, during the process, to have the interim milestones, they must do an application. Must complete infrastructure plan. All the things that need to be lined up in order to spend the real dollars, to get the project going. So, i think thats the way we tried to ensure we are not, the whole term is 30 years, we are not waiting 30 years to say we we did not get there. Thats one of the ways that we kind of put some triggers in to ensure there is some stop gap so what happens to other large projects, a little larger than this one, it requires a lot of infrastructure to be put in place before we can even build the first unit of housing. My second question is actually more on the back end, which is once the infrastructure does get built and we saw this time and time again in mission bay, so frustrating, the city does not accept the streets and the parks and so our residents sit around and they look at these beautiful new streets and one case, a beautiful new playground and stared at it for six months before we allowed anyone to use it. I hope we also put in, do advance work so that we dont have trouble accepting and i know you know, legitimate concerns for public works and p. U. C. On what they were approving and sometimes the plans were a little different from what they initially approved. Can we do stuff in advance of the approval process so we dont have delays where streets are sitting for six months at a time, not being utilized or at worse, playgrounds are teasing our children. Literally, that happened in mission bay, and i just whatever you can do during the process now today to start these advance meetings with sfmta, public works and the ports, so we dont have problem using the streets when they are doing. This is a concern for us and the developer as well, we dont want that sort of p. R. Disaster and we dont want something built that people cant use. Thank you for noting that and we will circle up and make sure we continue to have answers for that. Miss weld. Thank you for answering the questions. You are rewelcome. Thank you, becca. My name is fran weld, Senior Vice President development for the San Francisco giants. Happy to be here today with my team, jack, john, jillian, roscoe. And a particular, you know, thank you supervisor kim for all of your hard work since the beginning, sponsoring with the late mayor lee, and seeing this through a long road. And president breed for your energies in keeping this project really moving forward. During a time of transition and we are thrilled to be here today. I wanted to just touch on today some of the key financial aspects of mission rock that we have worked hard to structure our deal with the port around. And i think there is an overarching theme around selfsufficiency and sustainability in the financial structure that we have that we have negotiated with the port. Becca mentioned the phasing aspect of the project where the park is delivered up front, and theres a combination of residential and Office Buildings brought into each phase. This mix of uses