Mr vice chair. The first order of business is i dont want road called commission members. Please respond when i call your name commissioner kino present commissioner drew present. Commissioner scott press it, madam. Present. Chair bracket is absent. Commissioner bracket is absent and other members of the commission our president , mr vice chair, we have a quorum. The next order of business is item two announcements. The next regular meeting is scheduled on tuesday, september 5th 2023 at one pm be announcement of prohibition of sound producing Electronic Devices during the meeting. Please be advised that the ringing of and use of cell phones, pagers and similar sound producing Electronic Devices are prohibited at this meeting. Please be advised that the chair may order the removal from the meeting room of any person responsible for the ringing of use of cell phone, pager or other similar sound producing electronic device. See announcement of Public Comment procedures. Please be advised a member of the public has up to three minutes to make pertinent Public Comment on each agenda item unless the Commission Adopts a shorter period on any item. During each Public Comment period. Members of the public attending the meeting in person will have an opportunity to provide their comments. It is strongly recommended that members of the public who wish to address the commission fill out a speaker card and submit the completed card to the commission secretary. Members of the public who are joining remotely, will be instructed to follow the updated instruction. Please style 141565500. Excuse me, 6550001. When prompted, please enter access code. 2662485. To press pound, then press pound again to enter the call. When prompted press start three to submit your request to speak. When you down start three. You will hear the following message. You have raised your hand to ask a question. Please wait to speak until the host calls on you when you hear it. Your line has been immediate. This is your opportunity to provide your Public Comment. You will have three minutes. Please speak clearly and slowly. You will be placed back on mute. Once youre done speaking, you can stay on the line to continue listening or you can also choose to hang up. If you are planning to provide a Public Comment on any item today on the agenda, it is recommended that you call the Public Comment line ahead of time to allow you to listen to the meeting live and to prevent you from experiencing delays caused by watching online. Todays meeting material are available on our website at sfo c ii dot org under commission, then the Public Meetings tab. The next order of business is item three report on actions taken at a previous closed session meeting, if any, there are no reportable actions. The next order of business is item for matters of unfinished business. There are no matters of unfinished business. The next order of business is item. Five matters of new business consisting of consent and regular agenda. First the Consent Agenda. There are no Consent Agenda items. Next. The regular agenda. Agendas agenda item numbers 58 through five c related to translate block two will be presented together but acted on separately. 58 authorizing the commitment to authorizing the commitment of permanent gap loan fund an amount of approximately 61,961,000. To translate to family lp, a California Limited Partnership. For the development of 184 affordable rental Housing Units, including two managers unit. Translate block to east and providing notice that this action is within the scope of the translate. Terminal caltrain downtown extension redevelopment project final Environmental Impact statement. Environmental Impact Report a program e i r and is adequately described there in for purposes of the California Environmental quality act, transparent redevelopment project area discussion and action resolution number 24 20. 23. Five be authorizing a First Amendment to the Pre DevelopmentLoan Agreement with translate to family lp, California Limited Partnership to increase the loan amount of 4,500,000 for a total aggregate loan amount of 8 million. For the development of 184 rental Housing Units, including two manager unit. A childcare facility. Space a retail space at translate block to east and providing notice that this action is within the scope of the translate terminal caltrain downtown extension. Redevelopment project final Environmental Impact statement. Environmental Impact Report program e i r and is adequately described there in for purposes of the California Environmental quality act. Translate redevelopment project area discussion and action resolution number 252023. And five c authorizing a horizontal ground lease with translate to family llc, a California Limited Liability company to facilitate and. And fun in an amount not to exceed 2,333,000. Fuck. 653. Im sorry. Five c authorizing a horizontal ground lease with translate to family l c, a California Limited Liability company to facilitate and fun in amount not to exceed 2,000,333. 1000 653 dollars site work on translate block to prepare for the construction of 335 affordable rental units. In two projects one at translate block to east for 184 rental Housing Units and one at translate block to west for 151 affordable rental Housing Units. And providing notices that this action is within the scope of the translate terminal caltrain downtown extension redevelopment project final Environmental Impact statement. Environmental Impact Report a program uh, im having trouble. Im sorry. Ill read fizi again authorizing horizontal ground lease with translate to family l c, a California Limited Liability company to facilitate and fun in an amount not to exceed 2,333,653. Site work on translate block to prepare for the construction of 335 affordable rental units into projects. One at translate block to east for 180 for affordable rental Housing Units and one at translate block to west for 151 affordable rental Housing Units and providing notice that this action is within the scope of the translate terminal caltrain downtown extension redevelopment project final. Environmental impact statement. Environmental Impact Report a program e i r n is adequately described there in for purposes of purposes of the California Environmental quality act. Translate redevelopment project area discussion and action resolution number 26 to 2023. Director kozlowski. Thank you, secretary win members of the public commissioners. The approvals for this project today a critical step and series of actions to facilitate the development of Affordable Housing on trends. Be black, too. Over the past several years. The commission had provided approvals for this project, namely the selection of the Current Development team in 2021, and, most recently, the Schematic Designs in november, 2022. Actions before you today. Well continue that progress with the goal that blocked to east will secure funding and well be able to begin construction soon in early 2024 k mobs field from the housing team will make todays presentation kim great. Thank you. Good afternoon. Members of the commission. Im kim obstfeld , Senior Development specialist on the housing team at o c. I. The actions before you today are the commitment of approximately 62 million in permanent residential gap loan funding for transbay block to east approval of a First Amendment to the Pre DevelopmentLoan Agreement with the block to east sponsor to increase the loan amount by 4. 5 million and incorporates certain other modified provisions and authorization of a short term horizontal ground lease with funding of approximately 2. 3 million for block to Site Preparation. A brief background on the transbay redevelopment project area transmit redevelopment plan was approved in 2005 with the intent of alleviating the blight caused by freeway demolition following the loma prieta earthquake and creating a new mixed use mixed income downtown neighborhood. The project area is split into two zones. Zone one is administered and implemented by oc i zone two is under Planning Department jurisdiction. Overall oc ii is obligated to provide 35 affordability in the project area to date in zone one, oc ii has overseen the completion of over 2000 residential units among which over 700 are affordable. Block two is one of just a few remaining Development Sites in zone one. It will be 100 Affordable Housing in the site is critical to meeting the overall project area. Affordability requirement oc i saw the Development Team for block through through a competitive request for proposals in 2020 in april, 2021. The Commission Approved an exclusive negotiations agreement as well as Pre DevelopmentLoan Agreements for the two west and to east projects. Last fall, the Commission Approved the Schematic Designs and took related entitlement actions for both to east and west. In april this year, the Commission Approved a Gap Financing commitment and Pre Development loan amendment for the two west project that gap commitment was in preparation for a key financing applications submittal in may. Also in may, the two east sponsors submitted an application to the state for Affordable Housing and sustainable communities or asic funds, and the results are expected by august. 30th. Earlier this month, the citywide Affordable HousingLoan Committee approved financing for block to east. Before we go into todays actions, a brief reminder of the design of the building from the Schematic Design approval last fall. This slide shows the block two buildings in the context of the surrounding neighborhood to east is shown in yellow and to west and orange. The green rectangle is the planned public park on block three buildings with the lighter blue labels are residential, and those with the darker blue labels are commercial or mixed use. This image is a birds eye view of the block to site from the north looking south towards folsom street. The block to or excuse me, the block three park and the planned extension of clementina section are in the foreground to West Building is to the right and to east on the left. And looking more closely at the ground floor of two east. The image on the left shows that town homestyle stoop frontage is along clementina street and the image on the right shows retail spaces at the entrance to the mid block, public pedestrian muse looking from folsom street toward clementina. The overall block to site will be developed, with two distinct and individually financed, owned and operated buildings, which we have been referring to as to east and to west that said, it doesnt the design and construction has been and will continue to be highly coordinated between the two buildings, with key design scopes, working on both buildings and selection of a single general contractor. The two east project is sponsored by mercy housing california and will serve low income families with a portion of units set aside for families experiencing homelessness. Mercy will be the property manager and provide Residents Services. Theyre partnering with Episcopal Community services, who will provide Supportive Services for families who have experienced homelessness. The two west project will serve low income seniors and seniors experiencing homelessness, Chinatown Community development center, or c c. D. C is the sponsor. In addition, ng in addition to developing the two east project , mercy is leading overall site coordination. Block to east will provide 184 affordable rental units, including two managers. Units will be restricted for affordability for households earning 40 to 80 of the area. Median income or am i units serving formerly homeless households will be supported through the citys local operating subsidy program. Units range in size from studios to three bedrooms. The building includes a childcare facility that will be operated by wuyi and is intended to serve approximately 45 children from infancy to age five. In addition, the project includes two ground floor retail spaces and will provide secure class one bicycle parking. Theres no vehicular parking on the site. See i financing for three for two east is proposed in three trenches and approximately 62 million permanent residential gap loan and approximately 8. 6 million permanent commercial loan and funding of approximately 2. 3 million to prepare the site for development , which will benefit both the two east and west projects. The combined amount is consistent with the amount allocated for the project in oc is recognized obligation payment schedule, or rapps for the 23 24 fiscal year. This structure is proposed as a means of optimizing the residential project to compete for limited financing. In recent years bond allocations through the california debt limit allocation committee, or sedlak , have been oversubscribed, with the demand for funding exceeding available bond amounts because of this lack is introduced to competitive scoring process, which has proved to be challenging for San Francisco projects. The scoring criteria generally disadvantages higher cost urban infill projects to compete for this source, oc ii and the Mayors Office of housing and community vote. Community development have increasingly had to look at creative ways to structure our funding. Generally were looking at ways to pull costs out of the Residential Tax credit project. This, along with deep affordability targeting improves the likelihood of an award by reducing the residential cost per unit and reducing the overall amount of the requested bond allocation. The commission may recall that you recently saw a similar approach for the block 50 to 54 project at the shipyard and most recently on block west. Im happy to report back on to west that that approach seems to have been a success. The project is recommended by staff for an award after its first application. The hearing will be held on august 23rd. Until theres significant changes to the overall availability of tax exempt bonds staff does anticipate will need to continue to consider these types of modified loan structures in order to succeed in securing so black allocations. The residential project. Costs for block to east is estimated at approximately 187 million, along with the oc i gap Loan Financing sources include federal low Income Housing tax credits, paired with tax exempt bonds and a 28 million loan from the asic program. In preparation for the sedlak application due on september. 6th the sponsor is seeking commitment from oc i to provide the residential gap loan for the project. This is intended to demonstrate that local funds have been secured for competitive scoring purposes. Your approval will allow the executive director to provide a commitment letter for inclusion in the sponsors application package. The sponsor will return to commission to seek approval of a Loan Agreement for the permanent Residential Loan as well as authorization for the commercial loan in spring 2024 following sedlak announcement of and awards for this funding around in december. In addition to the gap loan commitment, the sponsors seeking an amendment to the Pre DevelopmentLoan Agreement, the amendment would increase the Funding Amount by 4. 5 million, bringing the total loan to 8 million. The added funds would be used to fund early design work from ki construction. Subcontracts scopes engaging these trades early for design build contracts is intended to avoid pricing surprises at final contract bidding and approved efficiency and accuracy during the design and p