The corporation was exonerated in the late 7. 70s. We had subcommittees on each development that came in that we had one for childcare, one for parks and rec, development and everything. So the training programmes we had with the college and also with model cities, we trained people in our community for each phase of the projects that were coming into Hunters Point. Where there was business, we had a Business Programme to train people with businesses. It went through the hunter Point College which was the first campus college. Every college we started through model cities, we started a minister witmission with hiringl of the others. But for those familiar will the mission, talk with i forgot the directors name now don markham . No, he was the director of the model cities. They could link up with the colleges out there, training with childcare. We had over 40 people through the Childcare Programme and each were able to buy homes, so if we want people to stay in our community, we need to train them in our community. We have College Track. We have Philip Randolph and they train people for different aspects of things but we were neeneed tomake sure they are pry managers. Thats the last comment well be doing. Make sure that happens withs lenar and College Track and thank you very much. I talk fast and my mind is moving. I want to make things are happening in our community for the people in our community. Appreciate all your work and being a watchdog, thank you. Madam secretary, the next item. The next order is item 7, report of the chair. Madam chair [ laughter ] item 8, 8a, 2800as 2800 arels walking drive for a multiple Family Development including 19 Public Housing replacement units, affordable at 50 medium income and 11 Housing Units which are affordable at 60 media income at Hunters Point shipyard and discussion. Madam director. Thank you, madam secretary, through the chair. Theres a memo in your package. As you know, this project was phase 4 and completed the end of this year ill bring up jeff to give highlights of this one. I think what was remarkable about this is that we had the beholders apply which means all of the outreach has been working but not all. Its still good news. Good afternoon. Jeff wyatt, Housing Programme manager. The director said, the report is in your packet and phase 4, it has 31 units, 19 of the units were for Public Housing, relocateees from alice. With the marketing in this project, everybody has been moved over into a new unit from the old and thats quite a milestone. And then the other 11 units in the 31 were lottery units and those were one and two units. The larger units were right sized for the folks moving over from alice. For the preferences, first were the folks that had moved away from alice, but didnt have he had previously moved away and so they had the opportunity to come back into a tax credit unit. So four households were occupied and then, the remaining was the next preference and there were seven households there and we have theres a lot of children that came over so its an indication, a lot of families with kids, which is great news. And really kind of the highlights and im happy to have any more discussion or take question. Oh, i will mention the 11 cot holders who applied, they fell out for a variety of reasons, two ended up getting housed in an inclusionary unit and they found another option. There was one household. He wanted a threebedroom and we didnt have any available at this phase and we had somebody who was overincome and then some, luke, three folks said that they were interested in just continuing to look at other opportunities. Thank you. We have to do speaker cards first. No speaker cards and no one here to speak. Closing Public Comment and well turn to my fellow commissioners. Vice chair. Thank you, chair. You think you answered one of my questions but ill ask it again or mask it. So the displaced tenant preference is third in line for preferences on this . Thats correct. So that would explain why you could have out well, since the resident and worker reference, lets just call it the San Francisco worker reference would result in someone from outside of San Francisco getting a preference to come into this development. In that preference, thats correct. I will mention the rent burdened preference is not geographic so somebody could come in from outside of the city. Is that usually the way it works, the rent burden is ahead of the displaced tenant . The displaced tenants are San Francisco ans displaced by fire. That was later after we established the preferences in the area and we added that on after the rent burden reference, the alice resident preference and other cop folks. So, then, thats great. Now i understand it. And then the other thing to highlight, 2 of the applications, even though there were a lot of applications, but two came in paper. Dahlia, we worked very hard, if you remember, push, push, push and folks are embracing dahlia is the way to go. Theres a lot of assistance with people unti dahlia. I remember early on in the commission, when the commission was established, im sure it was Alice Griffith but i may be wrong, but there was one of our projects or meetings, we had folks afraid of moving out of, basically, their housing, even though they had a right of return because they were worried they would not be able to return. To i wani want to say its alicf filgriffith. Im just trying to complete the story in my mind because the commission was worried that folks would not be able to return, because there was a fear expressed about their ability to return for a variety of reasons. So they were clinging on to their old decrapit housing because they didnt want it to come back to the neighborhood or San Francisco. My question is, did it return. There were a lot moving. In the end, a few folks were attached to their anatomie unitt took a lot if they had a lot stuff in their apartment. Thats great news. Thats a huge success. I have one more question and i know im brow beating the situation but this being such a success, just seeing that we still only got 11 applications out of 4,000 being cop, are there any plans to cast the ar net to the members who came back in our reports who hadnt been reached out to and to get them into the fold and into the same pipeline into getting on dahlia. Is there a plan for doing that . Werwere continue doing eary outreach to be aware of early opportunity. Theyre now in the dhalia system so when it looks appealing to them, they are made aware of it multiple times andthy have the e opportunity to apply. So thats our net. And that might not be satisfying. Were always open to more ideas because during the annual report presentation, if you look at the results over the last five areas, weve increased the cop applicants, so we feel like were doing a lot. Thithe displacement happened ma, many years ago and we are doing, we think, getting as many cop holders housed as possible and there is a finite members who are out there. So thats not to say were making were continuing to redouble our efforts for each project when cop holders come up. And whenever we have a developer Selection Process for a project, we have cop outreach and results and performance top of mind. Thats something we look at and score on. You guys are doing a lot of off mazinamazing oneonone and i ws asking outside of that, cop not identified directly. As know, we had the 1718 and well have 1819 and i know you had gimp feedback o given feedbt additional outreach we had to do. Well come back to you. Madam secretary, call the next item. Commissioners question and matters . Any questions . No. The next item. The next order is item 10, closed second and the next order of business is adjournment. Mr. Chair. A motion to adjourn. I move that the meeting be adjourned. Commissioner scott, anybody second . I second the motion. Great, we have a first and second and thank you so much. The meeting is concluded at 2 18. Thank you. I strive not to be a success but more of being a valued person to the community. The day and day operations here at Treasure Island truth in family is pretty hectic. The island is comprised of approximately 500 acres, approximately 40 miles of sanitary sewer, not including the Collection System. Also monitor the sanitary sewer and Collection System for maintenance purposes, and also respond to a sanitary sewer overflows, as well as blockages, odor complaints. We work in an industry that the public looks at us, and they look at us hard in time. So we try to do our best, we try to cut down on incidents, the loss of power, cut down on the complaints, provide a Vital Service to the community, and we try to uphold that at all times. Going above and beyond is default mode. He knows his duties, and he doesnt need to be prompts. He fulfills them. He looks for what needs to be done and just does it. He wants this place to be a nice place to live and work. Hes not just thinking customer service, this is from a place of empathy. He genuinely wants things to work for everyone and that kind of caring, i admire that. I want to emulate that myself. That, to me is a leader. I strive not to be a success but more of being a valued person to the community. The key is no man is an island. When anything actually happens, they dont look at one individual, they look at p. U. C. Stepping in and getting the job done, and thats what we do. My name is dalton johnson, im the acting supervisor here at Treasure Island treatment plant. Good morning everyone. The meeting will come to order. This is october 2nd, 2019, regular meeting of the budget and finance committee. Im sandra lee fewer joined by supervisors Catherine Stefani and rafael mandelman. Our clerk is linda wong. I want to thank sfgov tv. Do you have announcements. Pleaitems will appear on october 8th board of supervisor agenda. Thank you, item number one . Resolution of amended for the java house restaurant and increasing the Monthly Base Rent to 4,000 and no change to the initial term through august 31st, 2023. I believe we have mark to present today. Madam chair, chair members and board members, im the assistant Deputy Director of real estate and development for the port of San Francisco. The item before you today regards java house restaurant, a small restaurant at pier 40 1 2 located next to south beach harbor. The java house restaurant is a long standing port restaurant which has been operated by the family for over 33 years. In 2006, by their daughter. The java house currently operates under a 15 year lease with the port that expires august 31st, 2023. The original lease covers approximately 14,090 square feet. The original lease provides for the port to receive the greater of guaranteed monthly based rent or percentage rent. The current base rent is 3,314. The percentage rent is set at 7. 5 of gross sales for food and beverage. For the period ending 12 months, the 12 month period ending may 2019, the java house reported average monthly gross sales over 17,000, which did not result in percentage rent being paid to the board. Percentage rate has not been paid to the board for quite some time under the lease. Also, pursuant to the current lease, java house was required to make Capital Improvements of at least 346,000 to the facility. Due to personal, family issues and difficulty in raising financing, the java house has not been able to complete the Capital Improvements currently under the lease. These are the signs of a struggling operation which is having a hard time making ends meet basically. In the latest phase of ongoing dialogue with the port regarding coming into compliance for Capital Improvements and overall desire to improve the Operational Performance of the restaurant, the tenant has approached the board with a proposal to restructure ownership and bring in a new investor. Under this proposal, the entity would complete the previously required Capital Improvements and construct an addition to allow outdoor seating and alcohol sales and to make amendments to the lease which improve the financial metrics to the port and provide the tenant with an initial lease term. To that end, the owners of the java house have engaged in negotiations to sell the original lease to a new entity which the current owners retain 15 ownership stake. The new entity would be called frankies java house, llc with the owner being a well known business Man Associated with the insurance industry. The frankies proposal seeks to resolve the Current Issues related to the completion of Capital Improvements and reposition the restaurant into a viable business enterprise. The proposed amendment would require them to make a Capital Investment of no less than 737,000 into the facility and includes the previously not completed improvements of 346,000. He is willing to condition the extension of the lease on the successful completion of the Capital Improvements first and to provide a personal guarantee for the cost of all the construction. Upon 100 of construction and completion of Capital Improvements, which must be completed in one year of commercement date of the amended lease, frankies has the right to extend the lease term for 10 years. The direct benefits to the port are the base rent increased to 4,000. The increase Capital Investment from the original 346,000 into the facility to 737,000 into the facility that also includes an expansion which doubles the Seating Capacity of the restaurant. So now that 737,000 is put toward an improvement that actually grows the business, creates more sales and hence brings more back to the port. The port will receive a 12 of the proceedings of the sale, which is approximately 63,000. The 12 was negotiated up from 10 originally in the lease. That was negotiated up from 10 to 12. And finally the port will receive 51,000 as a penalty from the original tenent for not completing the tenant improvements in a timely manner on time. The port is 100 in accord with the budget Analyst Report and supportive of it. If theres nothing else, i have ill be here for questions and i have a representative from the tenant to answer questions also. Thank you very much. Colleagues, any questions or comments, if not, lets hear from the ble please. Good morning chair fewer and members of the committee. This resolution approved amended and restated lease between the board and a new buyer frankies java house, llc for the java house location on pier 40 as the representative from the port stated, this would set rent at 4,000 a month in the first year increasing subsequent years and provide 7. 5 rent on gross sales. The new buyer would be required to put in about 737,000 in tenant improvements. If they put them in within the first year, they do have the option to extend the lease by an additional 10 years from 2023 to 2033. We summarized the rent component on table 2 page 4 of the report, it would be about 1. 4 million to the port over the 10 years. We want to call out, this is a sold force lease. There was not a competitive process to select the tenant. There is a port retail policying that allows for sole source if its a tenant in Good Standing and financially reasonable to do so. We summarize that on page 5 of the report. The current tenant couldnt be considered a good tenant in standing, but the assumption if they make the improvements and get the additional 10 years, it will be a benefit to the port, because its consistent with the ports retail policy, we recommend it. Lets open this up for Public Comment . Seeing none, closed. I have one question. Just for clarification, so it looks as though there are 12 years left on the current lease. This started in 2007, is that correct . Yeah, it expires in 2023. So, they would do improvements and if they do it within a year, they have the option to actually extend it for another 10 years. Correct. Would that extend it not to 2023 but to 2033. At that time when they renegotiate have the option to extend it for another 10 years, a rerenegotiating then, another rental fee . You mean after the 2033 . So if in a year, they decide to we offer them the 10 year extension and then are we then negotiating at another rate for the additional what happens when they exercise the if and when they exercise the option, the base rent would rachet up to basically 85 of the percentage rent experience for the past three years. So theres a racheting up and that also happens in year well, year five of the option. So half way through the option, theres a market its a market to market adjustment. So the lease constantly goes up with the market. I think you mentioned, i could be wrong, 15 of ownership will be with the original owners or leasees, is that correct in. Yes. If they extend it for 10 more years after the 2023 date, would 15 of the ownership still be would we still see the 15 of ownership is with the existing tenant now . Thats probably no guarantee, if the person may sell out at some point. Its a partnership ownership. So its hard to predict what would happen. Theres no requirement. Correct. This has been in the family hands for so long. This is the kind of thing that we actually this handoff, of a struggling business, that is an institution in San Francisco. I think it has been recognized as ver