Present you do have a quorum. Ill call you next item yes public comment. Members of the public may adjust the authority on matters that are on the authoritys jurisdiction and weve not any indication members of the public want to address you see none we can link your special calendar okay. Item for authorizing the executive director to enter into an Asset Management agreement for the transbay trended center with the Lincoln Property of any for a term and certain financial considerations. Good afternoon directors. Im pleased to be here today to present this Asset Management agreement with Lincoln Property management. For your consideration to imagine of this agreement as a result of many months of work to develop an effective rfp produce a strong number of respondents, and you can shake an agreement that maximizes revenues for operations of the Transit Center and also the [inaudible] with Visionary Programs that reflect local character and context that ensures a high quality user experience. The rfp was developed working with our Retail Consultants [inaudible] advisors who designedit was done to give maximum flex ability to potential respondents because we recognize the unique nature of this opportunity to enter a transit orientated neighborhood emerging around the Transit Center. By entering the [inaudible] to consider any deal structure we were able to get a very clear picture of the market for this opportunity including the best opportunities for Revenue Generation. Todays presentation hra advisors will describe the extensive outreach done to ensure strong response to the rfp which resulted in a tjpa receiving three saul proposals when we enter negotiations. Negotiations focus on the ability of response to effectively deliver the services outlined in the rp including their ability to maximize revenues from the Transit Centers retail leasing event programming and [[inaudible] we are recommending today with consistent with the recognitions from the Evaluation Committee formed to review the proposals. We believe this deal at Lincoln PropertyManagement Company with just over the strongest possible results for the tjpa and the public. The lincoln team composes Collier International developing ventures andmedia demonstrates a Proven Ability through the negotiation process to run the Transit Center efficiently develop visionary retail plan unique to the Transit Center activate the part to its full potential and provide a robust work promotional platform unique to the transbay Transit Center. With that, id like to invite olivia moss and [inaudible] to provide you with a quick presentation. Thank you mark. Good afternoon directors. As mark mentioned in his introduction, i represent hra advisors. Hr a is a Real Estate Advisory Firm working with at the discretion of the public and private sector. We have offices in new york la, dc, dallas and raleigh north carolina. One of our sort of major expertise areas is working on transit facilities and transit area plans. We worked at the home depot in minneapolis at the [inaudible] center in new york working on both those cases to secure private operators for those facilities. In terms of station planning, we are currently working in Union Station in washington dc as well as [inaudible] amtrak station in philadelphia. In addition to hr a advisors the Consultant Team included two other firms. We have sensory interactive which was assisting us with the digital platform and we had Sheppard Mullin, who was tasked with drafting the asset manager agreement that is in front of you. My name isa partnering hr a advisors based of new york. Im joined over here with olivia moss principal at hra advisors and the project manager on this assignment. Olivia and i will do a presentation in parts and then, as you have questions, we willwe can respond and bring in jeanne story, from Sheppard Mullin to answer some of the questions as well. We started this process nearly 3 years back in may of 2015. We were sort of test with five different sort of tasks. The first task was evaluating Partnership Structures that would bei would work for the tjpa and the facility. The second task was to conduct market our reach. Ether was to actually draft the rfp. The fourth task was in evaluation of response to the rfp and the fifth was to negotiate and select a designated partner. You will see in the slide in front of you, how these five tasks laid out. We will go into each with these in a little bit more detail later in the presentation. The Transit Center presents a unique opportunity for private sector partner. We sort of believe there are three major Value Propositions for the transit facility. The first one is a creation of a thriving Retail Center with a rapidly growing office and residential neighborhood. As we provided in the rfp, looking at sort of new office and commercial development in the south of market district as well as existing and new Residential Development in the district was a significant amount of Critical Mass thats already here and going to come online in the next five years. The second Value Proposition was the operation of the nations newest multimodal transit station, what is been called a Grand Central of the west, and finally, it one of the specific amenities including the 5. 4 acre rooftop park. The management of these civic amenities with something which we felt was a clear Value Proposition that would attract the private sector. There were four distinct scope elements that we saw as sort of in terms of management and operation of this facility. For phase 1. We asked for these for specific elements in phase 1 and we asked respondents to propose interim programming for the lower Court Concourse and the train platform private space twoif they wanted to. So in terms of the four distinct scope elements, the first one is the fit out leasing and management of the facility retail space, about 100,000 ft. 2 of retail. The second is the development and operation of the highquality promotional platform which includes Digital Advertising, sponsorship and naming rights and events. The third is a management and production of private and Public Events in the rooftop park at about the facility. Finally, the silly operations maintaining some Capital Improvements for the facility once it starts operating. As you will see from the four distinct scope elements, this required a team with a very strong market experience. We obviously needed retail developer and manager to manage and maximize the revenues from the retail space. We then in open space manager who could manage the rooftop park and make that a compelling asset for the entire facility. We needed a facility manager would take care of the o m the entire facility and capital maintains. And finally a promotional platform manager who could leverage the significant Revenue Opportunities from both [inaudible] advertising screens as was naming and sponsorship rights. As mark mentioned in his introductory remarks, and as i showed in the initial sort of schedule, hr a spent a considerable period of time in the second half of 2015 marketing the rfp widely to all these four different types of potential partners. Retail, operators managers, facility managers, rooftop open space manager, and promotional platform entities. In total, we reached out to more than 40 firms across the spectrum of disciplines. As i said, it included both local firms, National Firms and regional firms in all the four different categories of expertise. We developed marketing materials. We had in person presentations and telephone and video presentations here we organize site doors for some other firms interested in taking a look at the neighborhood surrounding the neighborhood. I think one of the things thats really important here is as we market this operation we made it very clear to them that we were looking for Financial Arrangements and structures that werethat they were comfortable with and that the delivery value to the tjpa. You will see in the next sort of slides we also did and ask range of different Partnership Options for the tjpa. As you can see on the left and the dislike about which is not very clear in thison the tvstarting from partnerships opportunities, which are 100 public, wherein its a direct management Transit Center but the tjpa to complete private Public Partnership with the tjpa might consider the disposition of the center to a private party. We looked at everything sort of from public to private and in between. There are sort of generally speaking four different models under these Partnership Options that we analyze. The direct option is where the tjpa would manage the Transit Center on their own, a great example is San Francisco airport where its already the authority runs the airport on its own. Kings cross in the uk where british rail are responsible for running the bonuses. Asset manager and we will talk more about thisduring the presentation, is a publicis a Partnership Structure that management of the Transit Center is done by a [inaudible] with oversight from tjpa. Grand Central Station in new york is a great example of that where the mta engages with an asset manager to run the facility on their behalf with their oversight. The card option was the [inaudible] lease with tjpa would master lease the Transit Center to a private third party who then would take all the risks and rewards of running the Transit Center. With very limited oversight from the tjpa. For some center which i mentioned which is a project that i worked on in securing a private operator for that for the mta is an example of a master lease. They entered a massport master lease with westfield Union Station dc is another example master lease. All the way to the right, is the most private of these options where the tjpa could potentially sell portions of the facility to a thirdparty which the Port Authority did for the shops of the World Trade Center in new york. We looked at each of these Partnership Options and evaluated them based on tjpas priorities and the risks and rewards inherent for each of these options. The three priorities that we looked at was tjpa control, the revenue shared with the amount of revenue tjpa would receive and the cost and the risk of the tjpa been able to to bear on the operations and maintaining the site. After reviewing all of these options, we felt that the master lease option was probably the most relevant and appropriate for the tjpa for this facility. But as i mentioned, as part of this process when youre drafting the rfp, we made sure in the draft of the rfp we were open and the preference from master lease option but we were open to other kinds of options as long as they were in the best interest of the tjpa. Per the boards guidance, we impaneled a group of local experts and subject Matter Experts to review the draft rfp, including its structure and contents and provided a street they provide us feedback the panels members included john updike director of real estate for the city and county of San Francisco, todd will vote the director of the San Francisco office of economic and workforce development, cheryl nasher from sfo, briandirector of Planning Board of San Francisco bob moser, commander sfpd, and peterdesign principal at Perkins Eastman architects. Based on the feedback we got from the market our reach as was the feedback we got from the payroll experts, we outlined four goals for private Sector Partnership for the management of Transit Center. The first goal was to operate a clean safe and wellmaintained Transit Center the fitting a worldclass transit facility. With the idea the selected part or would ensure High Standards of operation and maintain maintenance the benefit of the Transit Center visitors and [inaudible] the second goal is to deliver a Visionary Program the reflects local caliber character and context. We selected partner would have to have an ambitious vision for retail digital and Events Program with within the Transit Center and would be experienced [inaudible] lead a team to execute the concept of death article was to ensure a highquality user extends in this facility. We believe that this facility will be used by four different groups of people. Obviously the commuters were going to use this on a daily basis but also office workers, residents of the area as well as visitors who come to the south of market district from any sort of cultural and other kinds of [inaudible] finally, the fourth goal was to maximize the economic value of the Transit Center. The selected partner would have to maximize the value of facility but by executing a premier commercial program that generates revenues to the tjpa. So those with a four goals that we which are enshrined in the rfp that was released in march of 2016. In terms of the terms that were laid out in the rf peak, there were six key terms. The first is the deal structure as i mentioned previously. It was a preference for a master lease in the rfp but the flexibility to except alternative Partnership Structures as long as they were in the best interest of the tjpa. We had outlined an initial term and renewals and a way to project revenues and operating costs. Under the master lease structure, for the respondents to provide both fixed rent and participation in back of the tjpa. Shared and reimbursed the costs both for operating expenses, capital expenses of those cost overruns, and finally Management Fees. Im going to turn this over to olivia to speak about sort of the responses we got back in our evaluation process we set up. So before we get into the responses received all talk a little about how the tjpa set up a processed to evaluate each of the proposals could the evaluation criteria was laid out in the rfp and included three major categories. Qualifications and experience, others on the team, including their experience managing a large mixeduse facilities, transit facilities, retail testing, managing open spaces, and managing the promotional platform. Their concept for the major components of the facility aligned with the scope including the Retail Concept promotional platform content and open space. Then there are economic proposal. The Overall Economic offered to the tjpa as was their financial ability to execute the scope laid out here. Was it totaled 270 points allocated to those three criteria and for qualified respondents to find those with over two and 20 points in the initial evaluation will be onto interviews worth 30 points for totaled three and points out of which all teams were scored. To evaluate these proposals, hr a help to put together a committee of local experts to facilitate a committee of local experts including public and private sector expertise in real estate and around the transbay Transit Center project. These experts reviewed and evaluated proposals conducted interviews and provided scoring based on the criteria that i just reviewed. The Evaluation Committee members included keisha bailey, member of the Transbay Joint Powers Authority citizens advisory committee, an executive consultant sheppertonhr a, anthony birds a, also cac member and a senior director at tishman and spire a member of the board of directors of the [inaudible] Health Committee benefit district and scottfrom the tjpa lois rollins [inaudible] ben sigman executive Vice President with consulting from economic and planning systems, john updike