Their doors whenever they feel. Dangerous economically and envir the city, horrible place. So i think as the supervisor sat should be way more. It should be at least commensurt theyve been illegally been getl these years that is way whata hundred times what the settleme. So i would urge you not to agrea settlement. If i were on the jury i would be rewards to the city. So why do we need to get the bee settlement. Take it to the court, get a jurn francisco residents to make a vd issue a penalty to them that woe than this. I dont think we need to settle. Thank you, next speaker, ple. Good evening, commissioners. Im with San Francisco land use. When i talk to fellow san francs that are plugged in and know wh, one thing that keeps coming up f Arts Universitys pension for gl estate. For me and most people i talk tt as a Real Estate Holding compan. Now, all the other things that w activists brought before you an, that, of course, i absolutely s. But one other thing that i woulo keep in mind is all the vulnerat actually got displaced as a resg up these buildings. What about the sros . I mean, these people are the moe segment of the community. And they have to basically vacae academy of Arts University has e buildings. And now, so many years later, wt this situation, and we are comih penalties. And i doubt if these penalties o actually give any shelter to tht displaced and its not going to. So either keep in mind what hasd ive just ask you if you can res situation. Thank you. Thank you. Next speaker, please. She gets 15 minutes. Almost one for every year shess issue. [laughter] i need to get my stuff organ. I have handouts. Ive been working on this for 1. And what youve heard today is t hasnt been a Good Neighbor to l buildings that people have talk. And thats only the tip of the. I got involved with this in novn me, december of 2005. Can i have the overhead, please . Could you adjust that . I need help with the adjustment. Okay. Its hard to show those things. In 2005, the academy bought, ane commissioners were upset and ca. And i had a meeting in superviss office. He was the president of the boa. And up here also was in her disn her district. And out of that, there became c. I told the attorney as did aarou have to file an institutional m. An institutional master plan isn you buy up enough property thate than an acre of land. This is exhibit 2 in my thing. They acquired three buildings. They had three buildings the la. In 1991 which is when ms. Steve, inherited her property from her, she took over the academy of ar. The first building they acquire0 stockton, which was ironically e buildings that deacquisitioning. So the academy kept buying propt buying residential properties. And this is a list of their proy acquisitions that i compiled, tg department didnt compile it. I compiled it. They went through and kept acqus even while they were doing thein after they were told to stop byg department. So their major institution. And this is exhibit 2 in what ye you. Exhibit 1, you will find out ont very few of the planning commiss Planning Commission have been is project. Its mostly been other planning. Because they put the list of eve academy of art went to the plan, and all the Planning Commission. And you look down there, and kan 2007. She was the first person and thr the longest time. Theyve gone through nine attore been dealing with them pardoe attorney groups. The current one the attorneyr nine. And thats counting attorney gre being the 2005 appointment wherd they had to comply with the insr plan. We kept going, we kept going. And eventually commissioner rict here appeared on the list. When they were doing the eir in. And he was with Kathrin Moore ud after their eir was certified i. And up until then, we got koppe. And weve had a bunch of miln joined us. Theres been two lees, a fung ao johnsons since weve been deali. So as you go through this list,f Planning Commissioners that havg with this project, its kind ofe over 20. And sanchez was thanked for all. Im extending my thanks too. Because once we had a list od them to do the first rudimentare commission had a list of what py owned, the Planning Department g enforcement. And there were hearings not at g commission that were administern enforcement. And i came to them, and other po them. All these hearings listed on exe attended by the public. Some people have died in the pr. Some of us have had setbacks ph. Most of us have really gray hai. But whatever, the Community Hasn this, totally. We have been here every time wed even when we werent needed, we, because it was a big thing. The only time the academy took s they tried to take over the fary couldnt, because there was puse residents, the tenants of the m. And their attorney as well help. And they have given eviction noo everyone. They had cut a deal with the owe flower mart. But they had to withdraw them. So they are not on that corner. They are on the other side of s. What we have here is you have in your what is shown by the acd what is shown by the history ofg commission dealing with this. This is not really visible on t. But it is an analysis by tom jo. Hes a real architect. And hes a real planner. And hes the head of cal poly, l planning school. His analysis when he started goe housing plans. And he said theyre not a meetie requirements. And he knows because hes the he school, the department of archis a planner and architect who cart accessibility. And he kept saying, shoot, thist relevant housing for accessibil. So some of the documents that hu have been on accessibility. And he has a list of deficienci. This is in your packet. And the planning staff has it a. You are not supposed to have p hopes on accessibility. If you do the right thing, you r equity. And there is a list here. This is what i did before. One of the obligations for puble for dealing with students with. Academy of art has compromised t accessible. They have buildings you cant ge psei which is postsecondary edul institution, they have buildinge institutional buildings. They have steps. They dont have an accessible pn them. That is huge when you are in a u have mobility problems. And so if you are dealing with s three items back on your agendan equity issue for accessibility. I dont know that the planning y got i know you dont have pee really involved with dealing wi, because its not the planning c. That is a housing you are dealie academy of arts took away affor. They took away hotel units, whiy Affordable Housing. And additionally, you dont havt ive seen someone really, reallg with accessibility issues. And its not enough to kick it d say dbi will deal with this aftl the buildings. This is the wrong way of doing. Accessibility should be built i. We have all kinds of institutioy that have gotten the face of go, conservatory of music, san fran, every one, every real art insti, california arts and crafts, havu building houses. Why . Because they see that they cano come to San Francisco because wg crisis. And so they are building thousaf housing. Usf, chris was talking about lid by housing under construction a. Usf has got the right idea. And ironically so has the conse. And the irony, it was the consec is building houses at van ness. And what is on the other side oy line . Basically academy of arts site,e being allowed to sell. And i have filed a dr, an oldfn that project and been wiped oute settlement. They should be forced to build s and van ness. They have all these opportunitye educational sites on van ness a. 625 polk street is within walkif california hall. California hall is a nice build. Im glad they are doing rehab o. I dont object at all to califo. But having an opportunity, havit they build housing in the futurt have a site is ridiculous. If they have a site right now, e part of the california automobi. I got my car tested all the tim. So it is a site that as they de, theres so much housing being b, built already right now becaused this as a city as a housing are. And its a huge site right nextt housing thats being built by ty of music, which is an art insti. So i would ask you to, one, fige disability issues are dealt wit. Dont kick it down the road to e with it and then oh, things hav. If you are approving a cu, you e plans. If the plans dont comply with y should be changed. Two, dont let 150 hayes, put ce building that are real, that thf load a building and strike it ra building. This has gone i want the ove from three sites that didnt han institutional master plan to 43. They were illegal. A institutional master plan in y started building to beat the ba. I would ask you to not go on aut here. I dont think maybe you haveh the 5,000 pages and read them a. The addendum to the eir, all tht are majorly important, ive hadt two weeks. I was basically given a pile of. I had to pay for them. But i paid my money and i bough. And its really gross to read t. I am hoping you slow things dow. Thank you. Thank you, ms. Hester. Okay. Any other Public Comment . With that, Public Comment is cl. Thank you. Commissioner koppel. So those of you that have beg enough like ms. Sue, remember te on that side of the microphone. And at the time, we had some ise academy of art as well. And i will admit that im pretth responsible for having all of ts inspected by fire, electrical, building, fire, electrical, bui, all the inspectors had to walk f their buildings. [laughter] but i think theyve come a long. I couldnt tell you how many hon billed to lawyers for this one. And i think weve come a long w. And to all the staff and all ths that put in the time and the efo say thank you. Im satisfied with where we ared fully supportive of accepting t. Okay. Commissioner diamond. [off mic] turn on your mic. Now it is. Okay. One of the more significant beny is the financial payment. And i would like to understand e should have confidence that youn actually make good on those pay. So i think the confidence she financial guarantee thats prove city as part of the settlement. Theres also a requirement thate made, that the affordable housit be made immediately upon the exe Development Agreement. So that needs to happen this spr as the Development Agreement is. And then for the settlement paya series of payments that will hae next four years. But the guarantee that are beine academy are important. In addition, the development ags a consent right for the city, fo sell any of its properties. So the Development Agreement ist all the properties. And the city would need to consy transfer of the property so thad the academy continues to own thf it does need to sell one of they the settlement amount, which we. But that was an important compoe citys negotiation of the devel. And can you describe for allf the details of the guarantee . That i would need to defer tl who have been dealing with that that would be fine. Richardson. Good evening, im one of thes working on this case. In putting together the guarante multiple ways that the city is e guaranteed payment under the dae settlement agreement. First of all, the da is going tg against all the properties. Secondly, the guarantee was pery guaranteed by the trust entitiee llcs which own the individual pl as the individuals who are the f those trusts. So that if a default were to ocd be individuals at the end of thd have their personal assets at s. Additionally, this past december ago, the city had themselves doe financial review of all the entd here to make certain that they e financial ability to comply wits of the settlement of the da. Okay. Can i speak to the city attorned who drafted those provisions . Maybe its mr. Smith. Is there anything you want to en further that would allow us allt we are going to get this money . Yeah, thank you, commissione. There are multiple layers of sey outline as jesse smith from thes office, the assistant to the at. One important point is the acadt university itself is not respone 58 million. Its the real estate piece that. So the 37 limited liability comy and separately together and inde responsible for those payments. And then as they mentioned, thee settlement doesnt become effece lions share of those payments p front. So roughly within the first sixe Affordable Housing payment is pe that when the first installmentt payment is payable. [please stand by] he has indicated that on page two, you will see the amount ought to get calculated using current city policy requirements, and the breakdown is here. And it says, he has a, b, and c. I dont know if you need me to read it into the record. Clerk you can put it on the overhead where we can all see it. Weve been working together for some time to try and take care of all this. Is the principle there commissioner richards can you push it up . What . Commissioner richards can you push it up . You see for Residential Hotels or housing, payment equals onethird of the total cost to replace the land or s. R. O. Units to current standards. Using the actual figures from the Mayors Office of housing and urban development, the figure is 205,000 per oneroom single occupancy unit and 250,000 for one single apartment family suite. You all have this in your packet. I dont want to bore you with these numbers, but if you look at them commissioner richards they add up to 28 million more. I want to get to where the 78 million is calculated. Hang on two seconds. Sue hester has said shes had to try to deal with about 500 pages. Ive had to deal with 200. In any event, you add up these figures, and you get the 78 million. Commissioner richards okay. Great. Question for staff. Have you looked at mr. Jones its 26, 33, and 28 and change. Commissioner richards okay. I just wanted to reconcile. Thank you very much. Thank you. Maybe i can address that to some extent. Commissioner richards please. Im not a finance person, but you may want to know how we got to the figure that we did. Commissioner richards great. For the housing component, actually given that at the time when they bought and converted the dwelling units to student housing, it wasnt a change of use at the planning code at that time. Same thing for the lib work, so those are not part of legalization for the use. So what were looking at legalization for the use with regards to housing are the Group Housing rooms. So for the Group Housing rooms, there are about five properties that total 160 rooms, and actually includes 1055 pine which they have been used illegally for many years. They will be moving out, and moving forward, its my understanding that its to be used, the 235,000 cost or the gap that mohcd has for developing housing, times that by the 150 and thats how we got the number. Commissioner richards okay. I wondered. Every single live work unit that was approved in San Francisco has an n. S. R. On it and saying its not housing, its commercial. And so academy put students in the housing pardon me in the buildings and considered it to be student housing, but they didnt comply with the law oliv on livework units. There were units that were abandoned, and there were more on harrison street. So they were not housing at that time because they were not conforming housing. That w they were both substantial buildings. President melgar thank you, miss hester. Mr. Adams, did you want to explain the methodology further . Dan adams, mohcd. Scott sanchez explanation was spot on. Commissioner richards we had a case here probably three or four units where essex trust legalized livework units, but at the time, livework was still livework. It was still illegal to use it as dwelling units or student housing, so what would that do to the units if we included bloxom. It would increase it by 33 numbers, which is the number in 575 harrison that theyre retaining. In regards to the livework issue, for this has been going on for a while, so for about a decade, its been the position of the department that since theyre in compliance with the notice of restrictions of livework units, which does not prohibit artists from living in livework units, even if theyre students, that wouldnt prohibit that. The academy must maintain the status of the units that existed at that time, and maybe they can explain the status of their livework buildings. President melgar okay. Commissioner johnson . Commissioner richards i was going to ask that. President melgar oh, im sorry. Commissioner richards yeah, how they complied. Nick rosen. So there are two in the existing 40site campus, there were two livework sites. 575 harrison and roosevelt. The sites arent identical across the board, and in the case of 168 bluxon, the academy is vacating that site, so its being put back onto the market as livework housing. At 575 harrison, theres no requirement the common feature of n. S. R. Is a common requirement that residents have business licenses. Thats not a common requirement for the n. S. R. , so i think we established that the academys use was legal at that time. President melgar commissioner johnson. Commissioner johnson so it has been a long road on this project. I know many there have been folks that have been involved for decades. I have just been on the commission for maybe 1. 5 years, and ive heard stories. So i know that for advocates, for community folks, for staff, for City Attorney, we all care about making sure that this project that folks are held accountability and that the city is getting what it deserves for the violations that has happened. I think the two most important things and i kind of came to thinking about this, how do with you get resources, how how do we get resources and how do we look at things like that. So the two things that i looked at were how do we get resources and how to we get documents . Just talking with the City Attorney and walking through each piece of it and why i feel these benefits are correct, one, we just opined on the on the settlement amount, the dollars. But two, just looking at real enforcements that give us teeth to one, really bring things into compliance and two, go after the academy if they dont follow through. I would just say that i think, you know, there has been conversation about should there be units or should we acquire properties . I just certainly think that in addition to the settlement amount, having the city use those communities to stablize cities, to make sure that we are providing housing to folks who in different parts of the city as a mitigation to this is preferable to those sites. The one question that i do have that i would l