Lieu of the project sponsor constructing a new wholesale flower market. Should the flower market vendors and management exercise this option, the project variant would then contain about 2 million square feet of office, 91,000 square feet of retail, 23,000 square foot childcare facility and 950 square foot Community Facility and lower amounts of parking, loading but increased bicycle Parking Spaces and an increased approximately 38,000 square feet of Public Open Space. So how would they repurpose the ground floor that was once thought of as a flower market site . So with this design, what they would do is first they would widen the pedestrian to increase the amount of open space. Some of that ground floor would be converted to atgrade loading with the flower mart, much of the loading is in the underground garage, so instead they bring some of those uses up to street level, reduce the amount of excavation and belowgrade space. And then the 23,000 square foot childcare facility would be in that location as well as the additional retail, about 30,000 square feet more office and the Community Center. How does that work with proposition x . Well, with this, there is as far as the Development Agreement, theres an agreement that they can provide the replacement p. D. R. Off site as opposed to onsite, and that is one of the code amendments that was in the ordinance that was introduced by haney. Thank you. In addition, the project will do a lot of street scape improvements, pedestrian improvements throughout and around the site. And speaking to the text code amendments and map amendments on june 11, districts 6 supervisor haney introduced the planning code text and map ordinance amendment that would establish the 2,000 rent special use district as well as create a key sites exception that would be utilized by the flower mart site. The purpose of the ordinance is to facilitate the project as well as the continued operations of the flower mart. The 2000 marin would provide a temporary location for the San Francisco wholesale flower market while the project is under construction. It would modify the planning code requirements related to demolition, replacement of industrial buildings, secrete scape improvements, Building Design standards, transportationrelated requirements and impact fees for a period of six years. It would be temporary. And the flower mart planning code text amendments would california create additional key site would create additional key site improvements including protected street frontages, p. D. R. Floor to floor height, overhead obstructions, offsite open space, residential to nonresidential ratio, childcare facility and p. D. R. Replacement and p. D. R. Community Building Space requirements. This concludes my presentation. I will hand it over to my colleague, ann. Thank you. Before you come up, is there a representative of the Public Utilities commission here . Or can you represent that in so far as 2000 marin is an asset of the Public Utilities commission that they agree their site can be used for up to six years . That is the Public Utilities commission is in negotiations for the Lease Agreement with kilroy for the temporary use of the flower Market Facility so this agreement would be subject to the approval of the Public Utilities commission . Yes. Okay. Please proceed. Good afternoon chair peskin and members of the committee. Thank you for your time and attacks on this proposed legislation. Thank you for your time and attention on this proposed legislation. I would like to provide a brief overview of the Community Benefits for this development and then read into the record summary of amendments to the d. A. For consideration today. There are three key components on the Development Agreement for which ill provide an indepth description. They include the need for two project scenarios, scenario a which contemplates the flower market returning after construction is completed at that site, scenario b which contemplates the flower mart electing not to return. The requirements for the developer to secure a site and construct the improvements in the event the flower market elects scenario b and thirdly, the agreement to prioritize the project phase 1b propagulecation in the fall of 202 1b proposition in the fall of 2021. As you know, under the central soma area plan, each of the key sites was assigned a specific set of Community Benefits the project would be required to achieve in order for there to be a diverse portfolio of communitywide benefits. The kia menti is the the key amenity the p. D. R. Sector is critical to San Francisco. Companies serve the needs of local residents and businesses and tend to provide highpaying jobs and Career Advancement opportunities for people without necessarily requiring they have a Fouryear College degree. P. D. R. Jobs also enhance the citys Economic Diversity and our ability to weather times in economic stress. While this project is anticipated replacing the flower market, the Development Agreement addressing the possibility for the wholesale flower vendors to select an alternative location for a permanent replacement site. The need for two scenarios became necessary late last year. Once the central soma plan was finalized, the flower vendors recognized the increased density along with the Infrastructure Improvements designed to safely accommodate increases in bike and Pedestrian Access would result in challenges for the vehicle intensive reality of operating a major flower distribution business. The flower mart is made up of over 50 independent Small Businesses that are largely family and minorityowned. These small operators in turn accommodate 4,000 small and Large Businesses across all of Northern California on a weekly basis. Most of these floreses, grocers, caterers, designers and wedding planners arrive in small and large trucks or other vehicles in which they need to load palettes of flowers and supplies. They rely on easy circulation. In order to ensure that San Francisco is able to retain the continued success of the flower mart, we have developed a structure that will allow the vendors to either return to the street on scenario a or elect an alternative location. This will take place within 30 days of the city executing the Development Agreement. The election will allow the flower vendors the time they need to explore alternative sites and determine their election. In scenario a, the project sponsor will be responsible for constructing a temporary facility at the p. U. C. Owned site or another mutually agreeable site. As soon as the first phase of the primary project is approved, the developer will begin the improvements. They are responsible for paying the relocation costs and moving the vendors. The developer will enter into a minimum fouryear lease which will have options commencing upon move in of the flower vendor. Scenario a is straightforward. The vendors elect to return, and the developer moves them from the temporary site into the new building upon completion. The developers provide the following benefits, at least 115,000 square feet of onsite affordable p. D. R. Space with guaranteed subsidized rents. 100,000 square feet of onsite neighborhood serving retail, 15,000 square feet of off site land dedication for the development of Affordable Housing. 36,000 square feet of onsite privately owned Public Open Space, 5,000 square feet of off site Public Open Space and enhanced Workforce Program that includes both office and job p. D. R. Job training, 500 bike Parking Spaces, construction of a cultural district gateway marker, 2 million contribution to enhanced street cleaning and security, a 4 million public art contribution, and 210 million in Development Impact fees, including 107 million in jobs how are yog linkage fees. Up to 20 million of the jobs housing linkage fee may be used to stabilize housing for existing soma residents by providing small sites for rehabilitation. Scenario b is triggered if the flower mart elects not to return. If they choose not to return they set up a structure whereby the total costs will be paid by kilroy. The city worked with the sponsor and tenants to develop the requirements for the future permit location. A detailed set of standards and specifications is being developed and will be required for the new permitted facility, including the necessary tenant space, parking and loading needs. Kilroy will not be able to begin construction on their primary project until they have acquired a mutually agreed upon site, constructed the improvements, including all the base building, parking, loading and tenant improvements necessary to provide a turnkey facility to the flower vendors. Under scenario b begin construction or get a certificate of temporary or final completion . The kilroy project will not be able to begin construction. Thank you. Perfect. Under scenario b, the developer provides they need to move the flower market, they need to construct the site and relocate the flower market before they can begin construction. Under scenario b, the developer provides all the Community Benefits under scenario a with the addition of 23,000 square foot childcare center, 1,000 square foot Community Room as well as a robust sorry, programming for neighborhood organizations that will include space for seasonal popup flower shops, floral shows, job fairs, artisans markets and farmers markets. Under scenario b, the city will establish a San Francisco flower mart legacy Business Fund by directing a portion of the project fees to a special fund held by the controllers office. These funds are intended to provide a source of stable business and operations assistance to longstanding San Francisco p. D. R. Operation to help ensure the wholesale flower operation continues to be a resource to the many local artists florists, artisans, restaurants, markets and individuals who rely on their access to this london standing San Francisco institution. Longstanding San Francisco institution. Roughly 300,000 square feet in the fall of 2021. This prioritization addresses the fact that unlike other sites, kilroy will not be able to begin construction until they have completed their key Public Benefit requirement of relocating the flower market to a permanent home. I will describe the summary of changes between the first version of the Development Agreement and the one in front of you today for the stake of clarity, other than the increase in jobs housing linkage fees, the changes pertain only to scenario b in which the flower market elects to move off site to a new facility. The first project description remains as it was, approved by the Planning Commission on july 18, 2019, including the new wholesale flower market and temporarily relocates the tenants to a temporary site during construction. The project variance has changed as follows. Prior project variant provided the flower market vendors the option to choose between the stay option and a Payment Option whereby the developer would have provided funding to the flower market vendors to allow them to construct a new facility at an alternative site. The current variant provides the vendors the option to choose between the stay option and permanent off site option where by the developer will acquire and build a permanent off site facility at whatever the final location is determined. All references to Payment Options have been removed. Most of the changes are to article 3 and the definitions. The summary of permanent off site option vendors select between stay option and permanent off site option within 30 days of the da Effective Date by sending a notice to the city and the city shall there after exercise the stay option and permitted off site option. If the permanent option is exercised, they must allocate approvals and construct the permanent off site facility in acore dance with the specify in accord with the specifications. They must pay for ten years to support street cleaning efforts which is in da section 5. 1. 1. The impact fees section has been amended to clarify the project shall calculate its jobs housing linkage fee pursuant to ordinance rate schedule in da section 6. 9. 2. The impact fees has been amended to clarify the project is able to satisfy all or a portion of its jobs housing linkage fee requirements. Thats also in da section 6. 9. 2. The impact fees section has been amended to provide a process for the creation of essential legacy business and p. D. R. Support funds that will be funded with 20 million and used by the city to provide annual business grants for the Master Tenant under the master lease. In the event the off site option is elected and provided the city waived fees, prior to the fund creation. Which is trailing legislation. Thats right. Impact fees section has been amended to add eastern neighborhoods infrastructure for an amount not to exceed 300,000 for funding for the design and construction of an arch or physical marker in a public location identifying the San Francisco filipino Cultural Heritage district. That concludes my presentation. Thank you for that very thorough reading. I want to invite alexander. He will be coming up in a minute. Thank you for your presentation and your work on this. A couple things. For the Community Benefit, if you can expound. For the 200,000 a year for ten years for street cleaning and safety, where will that money go specifically . Is that outlineed . Can you describe in more detail about that . Is it going to the city . It comes through the city. Its over ten years, a 2 million contribution that is designated i believe to the to y for enhanced street cleaning in central soma. Is that going into a category 8 fund . Or would you read us the exact language . I can certainly find that out. That would be great. And 5 million for sunnydale hub. Can someone speak to that and where that came from . I can certainly ask the project sponsor can answer your question about the evolution of the 5 million fund. Okay. And just you mentioned the prop m preference. Ive asked about this a few times. Can you speak more about that . Is this something that has been in past d. A. S or Development Agreements, is this a normal practice to physically give a priority preference . Yeah. And you said they may give them a priority. Is it will give them or may give them . They may give them a priority preference in the fall of 2021 after october 17, when the prop m pot gets refilled again, there is a section that allows for a preference to kilroy to receive another 350,000 square feet of prop m allocation. The purpose of that is in approving kilroys project as a Planning Commission, and a number of the central soma key sites, we initially asked each of the key sites to break their project into phases. And a couple of the and what we did with kilroy, we asked them to break their first phase into two phases. And so that we could allocate you know, we had a limited amount in the pot in 2018 or 2019. And we wanted to be able to make sure we got all the key sites in central soma, at least their first phase of allocation, by asking them all to phase their projects. One of the projects, because of the way they are building their structure, they reduced their total allocation by about 50 or 75,000 square feet but received their entire i think 850, i cant remember the exact allocation, but the project received 100 percent of their prop m allocation as opposed to the rest of the key sites in central soma which we asked to split their project into phases. So the kilroy project initial phase that would encompass the flower market, is a 1. 7 million square foot allocation. So in order to construct that building that would have the flower market on the ground floor, they would need 1. 7 million of their prop m allocation including all of the underground platform and podium. Because we asked them to split that phase into two phases, and because this is a project, this is the only key site project in central soma thats nonresidential project that has to fully fulfill their major Public Benefit obligation before they can even begin to construct their primary site, we agreed to put the 350,000 square feet into a preference in the future in the d. A. For the future allocation in 201. And there are president s for doing that, mission bay and certain parts of transbay also have preferences for prop m. And in so far as this is something that is in the Development Agreement, our roll in this is either to approve or deny i mean, our role, the full board, the Development Agreement. We can suggest changes to staff, but