Transcripts For SFGTV Transbay Joint Powers Authority 202407

SFGTV Transbay Joint Powers Authority July 13, 2024

Investigation is ongoing and we do not know yet all the facts at this time. More troubling is that the tjpa, the agency that we represent as directors was mentioned in the complaint relating to our retail leasing program. I want to take a moment to emphasize that there is no allegation of wrongdoing by the tjpa or any of the members of the board of directors or staff at tjpa. I want to take a moment to assure everyone, the public, and everyone who wants to look at the minutes and pays attention to what we do that we have a very rigourous and transparent process to receive and validate proposals from Companies Interested in leasing retail space at Salesforce Transit Center. Including regular, detailed reporting of Public Meetings like this one. I would like to take a moment and ask the executive director to share with the public the leasing process that we go through here for any Interested Party when theyre looking at a potential lease at the salesforce center. Thank you. The tjpa uses a welldeveloped and transparent process to receive, evaluate, and award retail leases in the Transit Center. In 2017, we entered into an Asset Management agreement with Lincoln Property company through subcontractor, Colliers International to implement a port upper board approved spaces. This includes rents, length of term, and landlord contributions to tenant improvements. Also in 2017, the board approved retail leasing policies including the standard letter of intent and lease. All businesses registered or interested in leasing directly with colliers as a first step in the leasing process. To date, they have more than 600 people registered in the process it self itself. Interested parties typically request tours of available sites and many submitted letters of intent. Colliers provides the tours and the letter of intent reviews the letter of intent, including offered rent compared to things, their experience, credit worthiness, and fit with the retail merchandising plan approved by the board. That agreement requires colliers to give letters of intent to our director for tentative approval. The tentative approval shows intent and is not binding. Colliers and retail Legal Council then negotiate the forms of the leases and recommends leases to the tjpa. Most leases are presented to the board for approval at Public Meetings. Each of these leases is accompanied by a detailed staff report which includes how a particular proposed lease compares to rent, term, the standard template lease and the retail leasing plan. Per the retail lease policy, leases that meet certain criteria including leases under 1. 8 million, have an initial term of 10 years or less, may be approved by the executive director and are presented with details to the board at the next scheduled board meeting. Regardless of whether leases are approved by the board or the executive director, the same vetting process applies. When staff receives inquiries from any source about retail leasing in the Transit Center, they are referred to colliers. Colliers is the lead on tjpa team for all negotiations. In summary, we have a rigourous and transparent leasing process that involves four levels of review and approval to ensure that all leases are consistent with the rent, board approval of the merchandising plan and board policies. These steps include colliers, our leasing agent, reviewing and negotiating the letters of intent. Once colliers is satisfied that it meets the boards policies, there presented to the tjpa facility manager. The manager reviews those letters of intent to make sure they are in existence with our policies. Once that is down, it is presented to the executive director. They review and approve the letter of intent to be consistent with the merchants and board approved policies, and then after that it is presented to the board for consideration. Thank you. Thank you. The tjpa has not been approached by law enforcement, however, we are or will fully cooperate contact. I would like to assure the public that the shared top priority of the board of directors and our executive director is to ensure that our staff remain focused on the work at hand. Operating and maintaining a worldclass, 21st century transit hub with the utmost transparency and integrity. I am confident the measures we have in place ensure that every decision we make is in the best interest of the public, fulfils our retail plan and will ultimately greatly benefit the neighborhood. With that, we will continue with our agenda. That would conclude item three, communications. We will move on. Yes, move on. Board of directors, new or old business. I think director brinkman has an item. Thank you. It has been much discussed in the news the possible changes on natoma street around our property and i just wanted to bring up the idea that when d. T. X. Goes in, the buildings on the corner of second and howard, to my understanding, will be demolished and that will be a plaza, which is supposed to connect into natoma street, and the original visioning from the architect was to be the plaza at the tower and the cable bridge above it all. I dont know what the answer is and i dont know what our role in this will continue to be, but i do just want to put in front of us that we probably should try and protect that visioning as much as possible. As we saw yesterday with the launch of the Market Street and carvery spaces. It is highly valued in the city right now and it will continue to be highly valued in a lot of cities. I want to put it out there that we should think about what that impact will be and what it will do to the overall visioning of the project. Thank you. Any other business from the board . Item five is executive directors report. I am pleased i first want to thank the vice chair and the board for their strong and continued support. I am pleased to get right into Agency Business and provide you with my first directors report of 2020. I would like to first invite rich piatt to give official updates. Richard is a general manager of Lincoln Properties or asset manager and is new to Salesforce Transit Center team. He has more than 20 years of experience in commercial Property Management and has managed a variety of Properties Around San Francisco. Prior to joining our team he was a general manager for a former navy base where he was a client of the city of alameda. He will present the city updates thank you for having me. We have brought some slides. The first thing we will go over is transit. The plaza continues to operate at normal capacity with the sfmta and the golden gate transit. Similarly, the bus deck also continues to operate a normal capacity with a. C. Transit, which is what i take every day, west links, greyhound, and muni treasure island. And finally, sam trans and amtrak continue to operate at the corner of mission and fremont adjacent to our grand hall. I want to talk a little bit about some of the recent and upcoming tenant activities. Onsite dental opened in november and then fitness s. F. Opened in the end of december. Next month we will have two storefronts with phils coffee. And pit and empanada star will open in april and in may we will have verizon. We will have just about 50 of the retail spaces open. The next slide shows some of the in progress that we have had. Some of the coming soon, some of the construction, and then we have business s. F. Fully open. Fitness s. F. There which is fully open. We had a Holiday Market in the grand hall which started in the end of november and went through the end of december. It was well received despite steady rain. The tjpa got presented rent from it and there was no cost at all to the tjpa. I want to talk a little bit about the park activity. We are currently in winter hours , which, until april, will be 6 00 a. M. Until 8 00 p. M. Some of the things that we have going on there, we have movie nights, we have winter festival, and or park operators have told us that they have seen a good uptick with kids and families utilizing the park. And finally, a sponsorship and advertising continues to grow. We have good level of interest from industries such as financial institutions, airlines , technology, with expected annual revenue of about a million dollars. The next slide just shows some of the community drawings that we have. Bottom right we have yoga about the top, up at the top up at the park and we have other activities that are bringing the community to the Transit Center. I will talk more about retail leasing. We have about 85,000 square feet retail, and with that, 81 of that footage is already executed leases and board approved. Similarly, we have 71 of the total retail spaces that have executed leases and that are board approved. We are at 98 of the average annual rent and we do expect to exceed pro forma. We have 10 remaining spaces including the rooftop, paper cafe pad and an area behind the grand hall escalator. Of these 10 spaces, we have promising leases on three of the spaces, but we have a level of interest on all of them. Sectors that are represented in our leasing include wellness, service, food and beverage and in the next slides show that. Here is the first floor which shows committed and in negotiation. The next slide shows the second floor again. Committed and in negotiation. And our final leasing shows the park level. Same thing. Committed and what is in negotiation. Now i will leave it up to you to see if there is any questions. Thank you. Thank you so much for the update the bus deck, what is the capacity that it is currently operating at . I believe its around 90 buses per hour. I think it is designed to handle a much higher capacity than that i believe the original design for that bus deck has a speed limit at 20 Miles Per Hour and it is currently set at 10. I asked after six months of operations we do an efficiency review of that. I dont want that 10mile per hour speed limit to become permanent by accident through an abundance of caution during the original opening period. Do we have that efficiency and safety evaluation scheduled and has it been six months of bus operations since we reopened . I dont have the answer to that. I will be more than happy to address it. We just achieved our six months of operations. I would have to go back and check on what we have done. It is something we would have to discuss with a. C. Transit as well. The original design contemplated 25 Miles Per Hour. A. C. Transits team advised us that they would like to have 10 Miles Per Hour. And we went through a process of discussing the benefits of 10 miles versus 20 miles and we agreed that 10 miles was properly defined. I will be more than happy to engage a. C. Transit. I have already engaged sfmta. We talked a little bit about it. I would be happy to engage them and see what kind of studies we need to do in order to evaluate whether 10 miles is sufficient or whether it should go back to 25 miles or somewhere in between thank you. I am hearing from the public, and as you say, you ride the bus yourself. Sometimes getting out of the bus deck takes quite a while. It is, i think, great to operate with an abundance of caution, with a way that bus deck was designed, there are no pedestrians who are ever crossing the best path of travel and in addition, the cross over on the bridge, i believe all buses are coming to a stop when it was originally envisioned and designed so incoming i dont know if his incoming or out coming buses would get a green so they would never have to stop at the crossover. It sounds small, but if you are writing that twice a day, if it saves you a minute or two, and i dont know, i havent taken a bus out of there in a while now, so i dont know what the timeframe is if you are at the fourth farthest bus bay to get all the way out onto the bridge, but anything we can do to make that seamless, to make it operate super efficiently and save those tens of thousands of writers every day a minute or two would be really appreciated by the public. I will definitely follow up. We welcome the study, but i would also called everyones attention that there are some recent publicity issues. Candidly we can run significantly more service if we can get through the plaza and across the bridge. You may have seen that its more complicated than that, but i would encourage all the transit advocates to support more multi occupant vehicles, particularly through the plaza on the bridge and the other factor is clearing up the fund so we can afford more buses and more service. The terminal is certainly not a limiting factor. Were hearing great reviews about it. We can put more buses through if we can get them over the bridge. Any other comments from directors . Very good. Richard, welcome. Next i want to ask our senior construction manager to present the project agreement for the port. Good morning, directors. Im here to report the Fourth Quarter 2019 project project Labor Agreement report. We held our 301st meeting, we have four a year. We have been doing this for almost eight years and without fail, we have hit every quarter. We have always provided a construction update which is very similar to what i am about to report in agenda item five. A retail leasing update which is exactly what rich showed in a phase two update and union update on the apprenticeship with veterans, which is very interesting. Its still extremely very high. The electricians reported they had 1400 applicants at the recent one. They are going through that and testing this. Its incredible how much are still continuing to be brought into the unions. And then also we discussed and we agreed on the p. L. A. To continue through tenant improvements. What that means is a project Labor Agreement is clearly active during phase i construction, phase two construction, and there would be an obvious interim period between those two. It also allows for the option for the joint Administrative Committee to continue the p. L. A. Through tenant improvements. The group that was there, operators, carpenters, the electricians and plumbers, all agreed is in our best interest to continue which. We agreed to move it forward. Especially, and in fact, that his part its part of the p. L. A. And the unions are not allowed to strike, protest, take any actions, and it allows us to continue through our Tenant Improvement Program without interruptions that potentially others have seen in other parts of the city. It will continue through the tenant improvements as a collective and we all agreed. Finally, the labor. No work stoppages were labor instances that we have had. We have never had one the entire phase i construction. And there was a zero recordable safety incidents, which has it has probably been years since we have had a recordable or a lost time. Lastly, i would like to show the hours. A little bit over 5. 7 hours. These numbers are not changing much. It will probably be the last time i will report these for phase i construction because there is a minor crew out there now. We did surpass 5. 7 million hours which is an incredible amount. Phase two is expecting over 8 million hours so we look forward to eventually getting into phase two construction for and reporting our labor statistics. With that, that completes my Quarterly Report for this time. Thank you very much. Thank you. Directors, this concludes my report. Thank you. Is a Public Comment on the p. L. A. . Okay. Come on up. Hello, jim patrick of patrick and company. I have been against this agreement for many, many times and have argued against it here, but i listened to this presentation and suddenly we slipped into, well, we will have it for the next project too. I want to remind this board of directors that this agreement calls for the payment of the highest possible wage that is in the agreement and to sort of say , well, we will just let it roll into the next 4 million craft hours is nonsense. I wouldnt allow that to happen if i were the board of directors i would go back and rebid it, just like we like to rebid these processes. Maybe we can do better without the joint Labor Agreement. I challenge you. Thank you. Thank you. What i would like to do with the boards boards permission is jump into our consent calendar and regular calendar before we lose a quorum if that is acceptable so there is no time constraints for directors. If we can jump to the consent calendar, item nine and carry that item and we will come back to the rest of the reports. All right. All matters listed are considered to be routine and will be acted upon by a single vote. There be no separate discussion unless a member of the board of the public requests. We have not received any indication that any items wish to be severed. Do we have a motion on the consent calendar . Moved to move to approve. Second. All of those in favour . Aye. That is approved. Item 10, approving the fiscal year 2020 and 2021 operating projection. Thank you for the introduction. [laughter] welcome. Happy new year. Thank you. Im happy to present to you the 19 and 20, 2021 operating budget. We start this budgeting process at the time that we adopt the previous years budget. We started in june 2019. I showed you a three year projection which included the first year being 2021. And then in september and october we present more refined numbers to the primary tenants, and then come january, we bring to the board for approval the preliminary budget. The luminary budget is still preliminary, which has the ability to be refined. We will come back to you in april of 2020 with a budget outlook and that encompasses operating and capital and in may we present a draft budget, and finally in june, we present a budget to be adopted, operating and capital budget. The highlights of this preliminary budget are that it is 28 million. In june and september around october, i presented numbers that were significantly higher. In june we presented a 30 milliondollar operating budget and in september and october, a 34 milliondollar operating budget. Since then we have been able to refine things to get it to 28 million which is encompassed and not usin

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