Yeah. And in terms of the oversight of that and who are you partnering with to actualize that . Was labor involved directly in negotiations of this . We negotiated that with the office of economic and workforce development, but i understand that the program was crafted with a lot of input from labor. Correct. Its a program that is used in other Development Agreements as well. And the street cleaning piece of this, again, just a similar question around is that money just to the city and then the city will figure out how to use that . Or is it more specific . Before you actually i dont want to interrupt but i want to hear that from city staff. Youve had a few minutes to figure out whether or not that is category 8 fund and precisely how that 200,000, tenyear will be spent and utilize. The floor is yours. Im sorry, i have not found out but we can direct it. It goes to the city. I just dont know specifically what the fund is that it goes into. But i can try to do that. [please stand by] year five, it goes up over time per a two Percent Inflation and for the terms of the agreement, but still very affordable. In year 26, there is a provision in the lease that allows kilroy to determine a new market rent for the flower vendors or for the first 25 years, it is a very low rent prescribed by the agreement that we negotiated. Which, for the record, will be paid for through fees, through fee rebatement, so just so we are all clear, and my colleagues understand what they are getting into, the trailing legislation will actually reduce the amount of mandated legal fees that kilroy has to pay to subsidize this subsidy. If i could correct that. You look offended. You have an opportunity to say this, but i want my colleagues to understand what they are getting into. So when we talk about the 27 million fee package, that is a portion of the subsidized one through four, 250,000 rent . True or not true . The current rent i think is 1 million, its about 1. 2 million, somewhere in that range. And then we asked for reduction. We asked for a stabilization period in the first four years, because we think its disruptive for the flower market to be moving off its current location. Theyll have to move into a new facility, it will be a new operation. For a period of time, theyll have a sinking fund, i get it so we asked for a reduction. The flower market asked for a stabilization period that their plat rent is 50,000, and the city agreed that we should help stabilize the flower market in the first four years. Subject to the approval of this board of supervisors with trailing legislation. Correct thank you. I was thinking about everything. Again, the reason im asking these questions is because at the end of the day, the worst that could happen, and i understand 25 years is a long period of time, is that ultimately that you get into a scenario where its unaffordable for the vendors to remain, but it sounds like theres significant time being spent in terms of initial transition and subsidy, but then in year 25, its a negotiationen this part but i mean i understand you have spent a lot of money to make this a flower mart, right . What happens in the year 25 in its not affordable anymore . 26 in year 26 there is the use restriction is it has to be used as p. D. R. Space, but theres a new negotiation for the rent, which is typical in leases, usually happens in year one. But for this lease, we are required to provide 25 years at the renteds that were negotiated in the triparty agreement. Whether they moved or didnt move, this was the scenario that would happen anyway . That is correct. And you all currently own this site and you remain the landlord . Correct. Okay. And then in terms of the scenario b, and you might have already said this but i want to underscore this point, what is the estimated cost to buy another location and build or renovate or rehab or construct a new flower mart space . With the cost to kilroy . Approximately. Yeah, in the list of Public Benefits we put 100 million cost in there. I will say that is a place holder because we cannot discuss in this forum the exact prices we are negotiates for these potential sites that we may or may not buy. I call it 100 million plus. So to relocate which i think is potentially the option the flower vendors are leaning toward, we dont know. They have to take a vote substance consequently to this confirmation of this Development Agreement, but at a minimum, you are saying it would be approximately an additional 100 million cost or more. More than 100 million to relocate the vendors, sign a lease that goes at least 25 years at affordable, really affordable, relatively affordable rent for that period of time. That is correct. And ill just point out in reference to supervisor peskins note about the rent, yes, there is a fee credit for the first four years of this. There is no fee credit for the rest of the 25 years of the discounted rent. And that over 100 million figure doesnt include any adjustment for rent. Thats just construction and acquisition cost. Thats what i was talking about, construction and acquisition. So if you were to add in the rent loss over what a market rent would be, it would be a far, far greater than that. But thats correct. Okay. Thats all my questions for now. Thank you. Excuse me. Before i open this up to Public Comment, i would like a representative of the San Francisco flower market to come up. Are you in the audience . Geneie beaux. If you could as the master and party to the triparty agreement and intimately involved in these negotiations, present the case from the flower market. Good afternoon, supervisors. Im the general manager of the San Francisco flower mart. I represent the Ownership Group and the 50 plus vendors that are currently at the San Francisco flower mart. We have operated in San Francisco since 1912. Of the 50 vendors, theres roughly 26 legacy Business Owners in that market. We employ 375 blue collar workers. Recently a National Floral industry publication dedicated their entire november issue to the San Francisco flower scene. As we are a key piece of this 26 billion floral industry in the u. S. , stating that the flower power of San Francisco is alive and well and will never decline. The piece focused on San Francisco city colleges floral department, several talented creative retail florists, the young museum that has the annual exhibit and the business of floral design in the city. And of course at the center of the article is our flower market, the world famous San Francisco flower mart. Our customers routinely shop our market and the thousands every month coming from all over the bay area and northern california. You see our products in every event and every corner store, office building, apartment building, restaurant and hotel in the city. When large Corporate Events hit our city like dream force, the market and our customers are at the center of helping execute those events. We put the color in this city. Both with our beautiful products and the small Business Owners who rely on this market to do their business. What an amazing and unique Community Benefit the city of San Francisco bargained for to require kilroy reality to build a new world class flower market for San Francisco. Supervisor peskin, thank you so much. You have fought for years for this market and our cast of vendors down there. And honestly, we cant thank you enough over the years. Youve been key to all these legacy businesses surviving over multiple transitions. And i would like to also thank ann and ken and the city attorneys office. Over the last few months that weve been intimately involved with each other. Theyve worked very hard to bring all parties to the table. Weve been working diligently for months to get to a path that ensures that the Community Benefit of a World Class Wholesale flower market be achieved. Currently the parties are not in agreement on the physical building requirements, and we are not in agreement on the basic functions of that facility. The latest wholesale flower market to be build is the new Garden Market in london. That is the facility that the market should be used as the industry standard. We made progress on the terms but dont have an agreement on the process for designing and building a first class building. And we asked for the citys continued support in that critical effort. I thank you very much for listening to my comments this afternoon. Thank you. And i want to reciprocate and thank you for truly being a star in this whole difficult process and the president of your board is mr. Is that correct . If you could come up and say any words that you wish to say. I dont want to put you on the spot, but if you would like to come up, the floor is yours. And then i will open it up to Public Comment. Thank you, supervisors. The San Francisco flower mart, as you know, has been a Major Institution in the city for over 100 years. We support so many businesses here in the in the city, caterig events, hotels. Walking city hall every day, and you see our flowers in all of the weddings at city hall. This will not come out of your time, your time is unlimited but these come from rec and park. [laughter] great. Thank you. I used to come here at 2 00 a. M. In the morning with my father to sell flowers at the flower market. We want the flower market to continue to be a viable entity here in the city. The San Francisco flower mart and the Tenants Association have worked with kilroy and the city, and weve made significant progress in our agreements. But we are not there yet. The tenants have also agreed to some very, very significant increases in their rents in the years ahead, which a number of them have commented on. Weve spent the last entire weekend in negotiations with kilroy and with the city, but we still have a few major issues that we have to resolve. These issues among them are the specifications of a new market and the process for making key decisions as the market is being built. We had just received the spec designs, the revised designs, and we need time to adequately review them and work with kilroy and the city to finalize them. Therefore, we are asking the city to give us a few more extra days ahead to be able to work on the agreement so that we can put together a market in which tenants can continue to thrive, and which the market will continue to be a Major Institution. We also want to thank supervisor peskin for helping us to be able to make sure that the market is going to have a viable location where those tenants can continue to thrive. Also, we would like to give gratitude to ann, ken, and betty on helping to facilitate the negotiations. Thank you. What happened to Charles Sullivan . Kidding. [laughter] hes off somewhere else. Thank you. Before i open up to Public Comment, supervisor safai has a few questions. Thank you. Just real quick, sounds like these are ongoing conversations. But can you talk about your response to the specifications for the new market and how the conversations are proceeding . Yes. We do recognize there are outstanding issues with the technical specifications. These are things like electrical loads and refrigeration quantities and things like that. We are confident that they can all be worked through. I will point out that these are the kind of details that normally come much later in process for a project like this. We received a new draft of some of those documents as late as 2 00 yesterday. So we havent been able to work through them before this issue. But we have told the vendors we are going to sit down with them at the end of this hearing and get to work on resolving the last issues. Do you believe, based on what he said, that its just a few more days to hammer these things out . Absolutely. Thank you. Thank you, supervisor safai. Why dont we open this up to Public Comment . I want to thank everybody for your patience, particularly those of you further down the agenda. I have a number of speaker cards. Rob shab at, coal, emily, if there are other people who would like to speak, if you would line up to my left, your right. Mr. Paulson. Are you here on 7 8 . The floor is yours . On behalf of Building Trades council, mr. Tim paulson. Thank you, supervisors. Tim paulson, the secretary treasurer of the San Francisco building and construction trades council. And we are here as a council to urge that this moves out to committee with recommendation to the full board. That being said, its pretty clear that kilroy, which has been great parties has been a great partner over the years to the Building Trades, has proven itself to be a great partner, both with the city, the flower market, the community and frankly, as we watch this amazing amount of development thats going on in San Francisco, has been a really good partner in terms of reaching out and putting it together, a very complex and wonderful project. So we are here to support that. At the same time on a supervisor level, even when i was working at the Labor Council i was aware of the work that supervisor peskin was doing on this particular project. So supervisor, thank you so much for sheparding so much of what is culminating in the next few weeks to finish up this project. As supervisor haney, whose district this resides in, being as diligent as ive watched you be over the last months to try to continue to shepherd this. So we are on record to say we support moving this to full committee, and the building trade supports this project. Before i call on the next speaker, i would like to acknowledge that mayor who was important in the negotiations in 2015 with the flower mart, has joined us. Mayor agnos, if you would like to speak, you are welcome to do so. Supervisors. My name is herald. Im the president of the south of market business association. I operate a flower shop one block from the flower market. I have for 20 years. A block. Takes five blocks of driving to get to the flower market though. So i walk. And actually i have had some its part of this issue about the replacement location. The traffic in south market is really terrible. And there have been opinions expressed to me by many vendors that putting the flower market back there with the way the market as a whole, development of the area is going, isnt as good as having it somewhere else. Ive come to understand, though im not involved in the negotiations, that this p. U. C. Site on chavez is or evans is the ideal site. 2000 marin 2000 marin. Im sorry. I confused those streets. Nonetheless, it would be the ideal site for a permanent flower market. And if we could get the p. U. C. Off their land grab on this property, we could have a happy ending, very soon. So nonetheless, i appreciate all the effort thats being made to preserve the flower market. And i wish the city had taken as much care in looking at the health of the flower stands in San Francisco as they dwindle down to Single Digits but nonetheless, i would like to see the city help the flower market survive. If we can get the flower market to have its permanent site, it makes a lot more sense. Thank you very much. Before we hear from the next speaker, i want to thank you for personally delivering flowers when my father passed away, to my mothers house. Next speaker, please. Good afternoon. South of market association. I recall when there used to be breweries out there, warehouses, supply shops, and a lot of them moved away for all sorts of reasons, particularly breweries that are no longer there. Its really developing i like whats going on. Its nice to see places coming up. The giants ballpark and so many other places around south of market. Its become a bright, vibrant and interesting place to come to. So supervisor peskin, i really appreciate all the work youve put into this. Im a full supporter of small business. One thing i love about this place thats being built, all the p. D. I. , we have such a shortage of it. We have a few car repair places, but this is a great mixture of day care, p. D. R. , its going to be a good project i feel at this stage. Once again, we at south of market support this project. We have other issues thats not to talk about but as far as we are concerned at this stage, thank you very much for all your work, particularly supervisor peskin. Thank you. And let me just say as to the comments, this entire project is remarkably complicated. So the 2000 marin site is actually a proposed trade between our Public Utilities commission over their laydown yard a block away at fifth for property that used to be the hurst printing plant, which is a p. U. C. Asset. And unfortunately, the flower market cannot have it forever, for that will be the new p. U. C. Yard. Next speaker, please. Good afternoon. Thank you for your time. My name is emily abraham. Im here on behalf of the San Francisco chamber of commerce. Im here to express our support for the San Francisco flower mart central soma project. This project provides many economic housing, community and employment benefits. It is truly impressive that this project will include 100,000 square feet of neighborhood serving retail and business, a new flower mart, Affordable Housing, create good jobs, among many other Community Benefits. For these reasons, the chamber of commerce supports the San Francisco flower mart project