Transcripts For SFGTV CCII Commission On Community Investmen

I thi this is the regular meetif the commission on Community Investment and infrastructure for tuesday, april 7, 2020. Chair will be joining us later. Go on head and mute your computer. Thank you. Chair bustos will join us later. I would like to welcome the members of the public watching us live on sfgovtv and to the staff participating in todays meeting. The San Francisco department of Public Health, mayor breed and Governor Newsom declared the coronavirus is a Public Health machining and asked that people shelterinplace. Due to the health emergency, this meeting is held virtually with all members of the commission and staff participating today via teleconference. There will ensure the safety of everyone. The Mayors Office determined the commission on Community Investment and infrastructure has an urgent need to take matters to ensure Public Health and safety and authorized the commission to meet on these matters. Welcome to everyone. Madam secretary, please call the first item. Thank you. The first order of business is item one roll call. Commission members please respond when i call your name. Commissioner brackett. Here. Commissioner scott. Here. Vice chair rosales. Cheer. Chair bustos is absent and all other members are present. Next is item two. Announcement of Public Comment procedures. Please be advised a member of the public has up to three minutes for Public Comments on each item unless the Commission Adopted a shorter item. Viewers are instructedded to dial 18885578511 and enter the passcode 7500645. Followed by the pound sign. Press the pound sign to enter as a participant. 18885578511. Enter the access code 7500645 press pound and pound again to enter as parties pant. This will be on the screen during Public Comment. When you are connected listen to instructions. When prompted dial one and zero to be added to speak. You will beelined up in the order you dial one and zero. While waiting the system will be silent and will notify you when you are in line and waiting. All callers will be on mute until their line is open. Everyone must account for the time delays and speaking discrepancies between live coverage and streaming. Speak clearly and slowly and turndown your television or radio. Item 3 report on actions taken at previous closed session meeting, if any. There are no reportable actions. Next order of business is item 4. Matters unfinished business. No matters of unfinished business. Next is item 5. New business consisting of consented and regular agenda. First could sep concept agenda. Next item 5a. Authorizing an exclusive notionations agreement and predevelopment Loan Agreement in an amount not to exceed 3,500,000 with 350 partners llc a California Limited Liability company for development of approximately 140 affordable for sale Housing Units at Mission Bay South 9a providing notice this approval is within the scope of the Mission Bay Redevelopment project, approved under the mission bay final consequent environmental impact, program ear pursuant to Environmental Quality act. Mission bay southed reDevelopment Project area resolution 12020. Madam director. Thank you, madam secretary. To the vice chair, the item before you is approval for the ena and preDevelopment Loan related to the Mission Bay Block 9a for 140 for sale units. This will be the second for sale project within the Mission Bay Area with one being mission bay north and this one being Mission Bay South. The project will be priced to be affordable to households earning 80 to 110 medium income. The staff went through extensive outreach efforts to attract respondents on the proposal. We received one proposal. Before you is the approval of first set of action items relating to the transaction. We do have representatives from the Development Team on the line and with that i will turn it over for the overview of the project and identify the Development Team that is available to respond to questions. With that i will turn it over to you. Thank you, director. Good afternoon, vice chair rosales and commissioners. I am annie wong, Development Specialist. The action before you today is seeking authorization for the executive director to enter exclusive negotiations agreement up to 3. 5 million with 350 china basis partners llc for development of 140 affordable for sale Housing Units on block 9a Mission Bay South. This is a very strong project for us as it is the first 100 affordable Home Ownership project. We have taken in a number of years. This particular project is one of only two that we have under taken in mission bay. Next slide. As such, in order t to ensure e units are affordable, the units will be sold pursuant to the Equity Program and administered by the Mayors Office of housing and community development. For block 9a all units no more than 110 of the median income. According to this lep Home Ownership model, Purchase Price at the initial sale and for future resale are set according to a formula based on the a. M. I. Level assigned to each unit rather than market value. Resale same affordable level established at the original Purchase Price regardless of the Current Marketing value. When the homeowner sells equity is based on change in a. M. I. Over time plus cal tap im capital improvements. If you have any questions i will be happy to answer. Next slide. So like an affordable rentable project it requires robust marketing for the developers to ensure that this opportunity reaches as far and wide audience as possible. To that End Developers are required to submit an early outreach plan within 30days of construction start. Such plan will detail how they outreach to the certificate of preference holders so they have time to prepare and apply for the opportunity. It will require that the developers enter into a memorandum of understanding with ocd approved Council Agency to provide Home Ownership classes to perspective home buyers. Second component will require 12 months prior to achieving certificate of completion Developers Must submit a full marketing plan that will detail the application process, lotdery dates and ads, Community Meetings and open houses. Next slide. I will jump through this quickly. Here are our most uptodate occupancy pref fans which i am happy to answer after the presentation. Next slide. Jumping ahead to site location. Block 9 a is located Mission Bay South off of the boulevard and situated mr. Right at the edge of the bay. It is an exciting location. It is boarderred by the mission rock street to the north and bridge view to the west. Across bridge view way it is adjacent be to block 9 which is also funded 100 rental development that you will hear more about shortly after this presentation. Next slide. Here we have a map of the site amenities. This shows the many and growing number of amenities in mission bay and connection to transit systems. In particular it is the Community Market opened last year and is only four blocks from the site providing more Neighborhood Grocery options in addition to the safe way on fourth and king street. We are excited valencia provides services to children opened at block 16, a few blocks away from the site. In addition there is a growing number of cafes and restaurants and services in the area. Quickly, the site is also very well served by options. It is a block and a half from the t third street muni line which connects to caltrain and mission bay north and downtown. In addition to the t line it is 2. 5 blocks away from the muni bus line providing access to the mission district. The Mission Bay Transportation Management Association Provides the connection to bart and cal tran. Next slide. Here is a brief background. In 1998 the Commission Approved the mission bay north and south redevelopment plan as well as owner participation agreement or opa. They allowed for development of up to 6514 residential units in mission bay with nearly 30 of that set aside as affordable Housing Units. Mission bay south 493 of those affordable units are constructed. Another 725 are planned or currently under construction. Opa requires submittal in major phases for each block abdevelopment. Mission block 9a was approveed n 2004 for blocks 8, 9, 9a, 10, 10a and parks 18, 19 and 20. This confirms 9a as Affordable Housing site. Now turning back to 9a, in particular, i want to provide background on the activities leading to the request before you today. In may of 2019, the staff released request for proposal for rft seeking to develop, market and sell for sale housing on block 9a. In september 2019, an Evaluation Panel consisting of representatives of the Mission Bay Community Advisory Committee recommended the team comprised of Michael Simons, Property Development inc. , curtis development, and Young Community developers with the architects as the developers for block 9a. They presented the results to the mission bay citizens Advisory Committee at the monthly meeting on october 10, 2019 and in same month staff provided informational memorandum to the commission on the same matter. Next slide. Current Development Program at 9a calls for 140 units. 25 one bedroom, 50 two bedrooms and 25 three bedrooms. The project will provide for sale housing, affordable to low and moderate income households earning between 80 and 110 a. M. I. As defined the project is projected to include 33 Parking Spaces for cars at. 24 ratio per unit and 140 or onetoone bicycle parking ratio. These include community room, outdoor courtyard with views to the water. Offices for sales and Property Management staff. We are proposing washer and driers and refrigerator and dishwasher. Next slide. Shifting attention to the financing terms of the loan. Request before you today is preDevelopment Loan of up to 3. 5 million for the china partners with 3 interest. The loan will convert to permanent forgivable loan at the close of Construction Financing subject to future Commission Approval. This will allow sponsors to work with architects and consultants to develop the design and fund survey and Engineering Work and legal costs and developer fee. Next slide. On january 17, 2020, the citywide Affordable Housing Loan Committee reviewed and recommended the preDevelopment Loan ask. They recommended pursuant to a number of loan conditions which include, one, conducting a design and cost estimating exercise to reduce hard cost by and i need to update that due by august 2020. Second produce Developers Must pursue additional Funding Sources to reduce the subsidy, developers are required to engage in marketing and sales teams, budget inn flexion subject to the review and approval. Monitoring and review of the reserves needed for the project and adjust those fees and reserves accordingly to ensure continued afford ability for future home buyers. Five, continued outreach to Mission Bay Community. The request before you today also includes approval of exclusive agreement. Ena. It enables developer to pursue predevelopment activities leading to the execution of disposition and development agreement, dda, for block 9a. This is Home Ownership development. There will be no ground lease. The transfer of land will be governed by the dda. The developer have made a cash sum of 1,000 to oci as earnest Money Development and additional 9,000 is do at the time of the execution of the na. The total is performance deposit to be held by the oci until construction is completed. The term of the na through october 7, 2021 unless modified by extension or early termination. It allows for extension up to 12 months to be approved by executive director in event the project incurs unexpected delay. Sponsors required to comply with nondiscrimination in contracts, minimum compensation and healthcare policies. They will look closely to staff to the Small Business Enterprise Program on this project. During this predevelopment phase the developer has an initial rq for professional Services Last december. Staff was able to attend the meetings and review responses with developers. In the future in competitive selection of general contractors. Developers need to develop to the extent feasible to require joint venture or partnership between the gc and oci recognized sbe contractor looking to build capacity. I wanted to just give a brief background on the outreach to date and will continue to take place as the project goes on. Staff presented the r. F. P. To the cac in april 2019 prior to the Commission Approval and issuance of the r. F. P. A number of the interview and panel for r. F. P. Selection. Staff presented an update to the Selection Process and recommended developer to the cac on october 10, 2019. At each meeting the members were supportive of the development. As the Developers Work with the design we will engage with members to discuss key aspects and obtain feedback prior to presenting the complete design. Next slide. In terms of project schedule, should the commission approve this request today. The next steps are for developers to submit 50 Schematic Designs and cost estimate by august 2020. I need to update the dates as well as a preliminary financing plan. Staff will return to the oci commission for Schematic Design approval in may 2020 and return for approval for a forgivable loan in early 2022. Construction start is estimated for spring 2022 and completion in spring of 2024. Next slide. That concludes my presentation. Thank you for your time. From the Development Team we have Charmaine Curtis from curtis development, Michael Simons from Property Development and Young Community developers. Ocd we have maria and mi mcdani. We are available to answer any questions you might have. Thank you, ms. Wong. Before we have questions for staff, madam second, anyone from the public wishing to provide a comment . Madam vice chair, at this time members of the public to provide Public Comment on this item should call 18885578511 and enter access code 7500645 followed by the pound sign then pound sign again. When prompted press one then zero to be placed in the que. To withdraw your question please press 1 then zero. We will wait for callers to submit requests. Wwe have ms. When managing the phone. If you have any callers, please put them through. Thank you. Are there any callers . There are no callers on the line. Madam, rise chair, at madam, vice chair. I do have a caller. Go ahead. Hello. I am oscar james. My question is, first of all, i am in favor of this particular project. At the same time i am in favor of it, the city is giving 3,500,000. I want to make sure we are asking for some of these projects to be below market rate so persons from that community can be able to purchase some of these properties. Thank you very much. Thank you. Do we have any other callers . There are no more callers on the line. Thank you. Madam vice chair. There are no more members of the public on the phone wishing to comment on this item. Okay. Hearing no further requests to speak on this item, i am closing Public Comment