Members of the public that wish to address the commission fill out a speaker card and submit the completed card to the commission secretary. The next order of business is item three, report on actions taken at a previous closed session meeting, if any. There are no reportable actions. The next order of business is item four, matters of unfinished business. There were no matters of unfinished business. The next order of business is item five. Mares of new business consisting of con sent and regular agenda. First, the Consent Agenda 5a, approval of minutes, regular meeting of january 16, 2018. Madame chair . Madame secretary, do you have any speaker cards for these items . I have one. Ace washington. We have a month in the year, i think theyre still shortchanged as they give us the shortest month of the year. What do you think about that . Thats not to say what this agency, dont take it personally, please. But i want yall to hear me. I wish i could get on my knees. I might have to do that when i go to sacramento and talk to governor brown. I even knew him before he became the governor. Or if i have to travel east to the lighthouse. We have trump come to fillmore street so he can tweet, tweet, tweet and connect with black folks. What do you got to lose . You know what i would tell him if he tweet, tweet, tweet on fillmore street, he would see that we lose what we lost now im not going to blame none of yall for what happened in the past and the creation of what would be called the Redevelopment Agency and we just had to strip his name from the city by the bay. So, im not going to get too passionate because i want yall to listen to me today. Because im recording it and im going to take it on up the way to sacramento. If i cant get no action there, maybe i turn republican and tell trump come on down to fillmore street because yall dont give a damn. Personally, you probably do individually, but collectively your actions speak louder than your words. Hmm. Im 63 years old. With gods blessing, im be 64 in a few days. I have been here longer than most of all yall except for commissioner singh. But the bottom line here, ladies and gentlemen, i got kids. And the kids have kids. And dog gone it, my grandson has four. So, that makes me a paw paw in my family structure. When i come here to city hall, yall try to treat me like im some kind of peon. Im beyond a peon. And im going to rise and shine. Black history month. I was out there in bayview yesterday. I didnt even see the supervisor for that district. She wunltz there. But london breed, the queen was there, because she is campaigning for the mayor. Im campaigning for my community. For the young millenniums, whatever colour they are. They need to know that these politicians were what i call politically speaking, its their vote that the board would be seeking. And well change things. It may take two or four years here in the city, but we gonna change things. I got three minutes. Im here in protest to tell yall if you dont have send out a delegate to the fillmore, youre in total violation because there is nothing out there that youve been fighting over these years, millions of dollars went down the drain. But yes, i had to have surgery on my brain. You know why . Because i had to go from this department, that department, this department, they all lied. But in the paper said there was a veiled effort. I have no more speakers, madame chair. Hearing no further requests to speak, i will close Public Comment. I will now turn to my fellow commissioners for comments and questions. On this item. Do we have a motion to approve the Consent Agenda . Move that. Moved by commissioner singh. Second by commissioner rosales. Madame secretary, state the roll call. Please afounds your vote when i call your name [roll call] madame chair t vote four ayes. Motion carries so madame secretary, please call the next item. The next order of business, agenda items 5b and 5c, related to the Community Facilities district number nine. Hunters Point Shipyard phase two Candlestick Point improvements will be presented together but acted on separately. 5b, resolution of intention to establish Successor Agency to the Redevelopment Agency of the city and county of San FranciscoCommunity Facilities district number nine. Hunters Point Shipyard phase two, Candlestick Point public facilities and services, improvement area number one and a future annexation area and determining other matters in connection there with. Discussion and action, resolution number 12018. 5c, resolution of intention to incur bond indebtedness and other debt in an amount not to exceed 6 billion for the Successor Agency to the Redevelopment Agency of the city and county of San FranciscoCommunity Facilities district number nine, hunters Point Shipyard phase two Candlestick Point public facilities and services, and determining other matters in connection therewith, discussion and action, resolution number 22018. Madame director . Good afternoon to the chair commissioners. This item before you is a major milestone in the hunters Point Shipyard phase two and Candlestick Point project. The disposition and Development Agreement, but more specifically the final plan calls for the developer to request issuance of debt, securityized by property tax increment as well as special taxes for qualified cost, for reimbursement and this before you today is the second piece of it, which is the special tax where the developer has requested that we form a Community Facilities district to provide for revenue stream to reimburse the developer for qualified infrastructure cost and what is good about this programme, it allows for us to adaptation for c. S. Er and a revenue stream that is a special type beyond the 1 to also provide for o m costs of resources in perpetuity. This is just the first step in the process. There is more to come and with that, ill turn it over to the finance Deputy Director and finance of administration and shell be presenting on this item and i should note that shell introduce all the working groups thats participated in this process for the last several months. Good afternoon. Im the Deputy Director of finance and administration. As the executive director said, were here today to talk about the formation of a Community Facilities district in shipyard candle stick point. So, it has been quite a while since the agency last formed a Community Facilities district so i thought i would give you a brief reminder of what a Community Facilities district is. Wi refer to them as c. F. D. S, and theyre special districts that are formed over a geographically defined area to finance public improvements in services. As you know, we finance the majority of our project with Properties Tax increment. But having generating property tax implement requires having propertis that you can tax. At the shipyard, we arent at that stage yet. So, we need an engine to kickstart the growth that will allow us to build the infrastructure that will send a support to vertical development that will someday support property tax. This is a really important, earlystage financing vehicle that allows us to do this. Once we form the c. F. D. , we will levy a special tax in the areas that are identified as being within the c. F. D. Boundary and the amount of the tax and the method by which they levy it is documented in something called the rate and method of apportionment or r. M. A. And well discuss that later in the presentation. There are two kinds of taxes we can levy in a c. F. D. The facilities special tax is a tax levied either to reimburse the developer on a paygo basis or we can use that tax to issue bonds and reimburse the developer from bond proceeds. Also later in the projects life, we can directly fund certain infrastructure and facilities such as sea level adaptations as the project matures. The second type of tax is a special services tax. That tax is used to fund ongoing maintenance of our open space and cannot be used to support any bonding. And the special tax is levied consistent in the manner in the same manner as the property tax so that means the Property Owners would receive their tax bill sort of in the same timeline and same manner as property tax. So, just to give you a sort of visual representation of what the c. F. D. S tax looks like and how it fits in with the overall property tax stack in the city and county of San Francisco, as you know, property tax is a 1 tax and o. C. I. Received all of the property tax thats generated within our project areas. We keep 80 of that and 20 goes to the tax annuities which are state, local or regional agencies. Anything that we dont spend is then, again, distributed to the taxing entities. This special tax, the c. F. D. Tax would be levied in addition to the 1 property tax and it requires, as well talk about later, a special vote of the Property Owners who are within the c. F. D. As the executive director mentioned, all of this is being done pursuant to the disposition and Development Agreement that we signed in 2010. So, the formation process for safety is quite lengthy. Were here today just to take the first step, which is to approve a resolution of intention to improve the c. F. D. And to incur bonded indebtedness. There is a number of actions that will follow todays action and well talk about the schedule for that a little bit later in the presentation. So taking it from the sort of general overview of the c. F. D. To what we proposed to do in the shipyard cp2c. F. D. , the geographic boundary would cover all of candlestick major phase one and subphase cpo4. Today were talking about just improvement area one. So, the concept behind the c. F. D. Is that ultimately the c. F. D. S will cover ship two and Candlestick Point. But we plan to establish the taxation level only in the areas which are now about to be development. About to be developed. As we move closer and closer and we know more and more about the projects that from being developed in this Geographic Area further and further down the pipeline, we would annex those areas into this c. F. D. By creating additional improvement areas or having land owners opt in to join improvement area one. So, the improvement area one, ill show you a map covers four properties and then the future annexation is the remainder of the project area. We already talked a little bit about the rate method of apportionment. As i mentioned before, well be levying or proposing to levy both the facilities tax and the services tax. And all of this will be used to fund either public improvements or services that were authorized consistent with the d. D. A. And the financing plan. And our overall bonded endebtedness limit is 6 billion. So if you look at this map, you can see this is a map of Candlestick Point and there are four kind of lightly shaded grey buildings. Those are oh, my gosh. It is so tiny. 6a, 8a, 9a and 11a. And those will be our first four properties in improvement area one with other properties as they develop either creating a new improvement area or adding on to this existing improvement area. So, lets talk about the facility special tax. The facilities special tax is, again, tax that we can use to either reimburse the developer for infrastructure on a paygo basis or we can use the Pay Debt Service on [inaudible] bonds. The term of the tax will be not to exceed 75 years and we determined the amount of the tax or the levy based on some rules that were laid out in the financing plan. Which state that the Residential Tax is not to exceed 2 of the average estimated sales price. So taking into account that limitation, we then looked at the nonresidential property tax times and determined the levy in conjunction with the developer based on marketing and Affordable Housing objectives. And this tax has an escalator of 2 . Which means it rises at 2 to keep pace with inflation. The items that can be financed by this tax are listed in appendix a of the resolution of intention. And they reach back to the original documents of the project area, both the d. D. A. And the financing plan and you can see here that its a general list of public improvements that range from the water and sewer system to traffic and transit and parks and open space improvements. And that ultimately later in the project, we can fund shoreline improvements and Sea Level Rise adaptations. The Services Special tax is a tax that will be used to fund the ongoing maintenance of parks and open spaces. This is something that youre familiar with. Its something that we do both in mission bay and in ship one. The tax would be levied in perpetuity and, like the Facility Services tax, it varies by property type. According to the foundational documents, the Residential Tax cannot exceed. 1 of the estimated sales price and, again, we based our nonresidential levy on marketing and Affordable Housing objectives. You can see a complete list of all of the taxes by property type in table two. Of the document. The actual levy could vary and youly and meet the required maintenance amount. That is the amount required to maintain the parks and open space. And this tax has an case lay to that is either c. P. I. Of all consumers in the oaklandSan Francisco region and this escalator is intended to keep up with increasing costs of Park Maintenance due to inflation. Now well talk in more detail about the rate and method of apportionment. The rate and method of apportionment, as i said, delineates what the property tax amount is and for each different property type and dictates how the tax itself will be levied. So some highlights from the r. M. A. Are that the taxes will be levied on private development parcels. They will not be levied on agency Housing Units or public parcels and that is consistent with the agencys mandate to support and build Affordable Housing. And as a method of revenue projection, there is a waterfall against which the property tax is levied. So, we began by issuing the tax on projects where the Building Permit has been issued and we calculate the revenue that we generated off of that property tax type. And its the insufficient revenue to either meet the Debt Service Coverage required to pay existing bonds or to meet the operations and maintenance needs. We then go to the next property type in the waterfall, which is Building Permit not issued but an assignment assumption has been record. We keep moving down that line towards projects that are further and further away from development until weve met the amount required to meet our Debt Service Payments with the coverage required in the indenture or in the case of the services tax you are not required to maintain our parks and open space. So, that give us a pretty significant level of protection to ensure that we always have the revenue we need to meet our expenditures. And if there were a change in land use that were to change the amount of revenue generated by the c. F. D. , we would proportionately raise on all land use types the property tax in order to meet that required coverage or required maintenance amount. So theres two significant financial protections that ensure that well always have enough revenue to meet our expenditure. So, the c. F. D. Itself will be governed by the ocai commission as long as the Successor Agency continues to exist. And once we are finally dissolved, the c. F. D. Would be transferred to the city and county of San Francisco. The daytoday administration of the c. F. D. , which is essentially calculating and levying the taxes will be performed by an outside consultant, good Win Consulting and they are here today with us to answer any questions. So, we have two actions before you today. A resolution of intention to form c. F. D. And a resolution of intention to incur bonded indebtedness. The resolution of intention c. F. D. And identified an overall debt limit for the c. F. D. Which, again, is 6 billion. By resolution to incur bonded indebtedness also identifis a debt limit which is 6 billion and it identifies a term of that debt, which we know more than 40 years for each issuance. This is the first in a long series of steps that it will take to get us all the way to complete c. F. D. Formation and to begin levying the tax. The next public hearing will be on april 17. Well come back. Youll consider a number of additional resolutions. And well hold an election at that time. And then introduce an ordinance that would order a levy of special taxes. Ok. So, for the team. GoodWin Consulting is hear. Is here. There is a c. F. D. Administrator. We have joey hall who can you ask them to stand and wave so we know who they are. Yeah. [laughter