that analysis would be before you when you act to issue the cop's. so, that was a long answer and on your other questions regarding the precedent and where else we may have pressure to use debt, i know that oewd and others have tida have thought about this. there are restrictions on the use of debt of this type of debt for public assets and other legal restrictions, but i think the question of policy and precedent is reasonable to raise in this committee. >> thank you. i want to just summarize the changes that we are proposing into addition to what supervisor dorsey read on the

record earlier today. we are going to issue the certificate of participation in three traunchs and limiting issuance to 1 per fiscal year. adjust the sales of the certificate of participation so it will be issued after and only after the city revises and approve the 10 year capital plan and also seeking to differ the debt service fees to the year 3, which is the final year of the total of these certificate of participation. this again with the goal that we continue to move forward with the project and making the commitment that the city is in partnership with the developers to move the project forward on the island, but also to reach the balance to be thoughtful about the remaining capital needs the city has to face. i do want like to have oewd or tida staff to read specific language into the record.

and also somewhat explain a little bit of what our controller has explained to us is the agreement and obligation the developer has to fulfill before some legal obligation our developer our partners have to fulfill before we move forward with the use of certificate of participation. thank you. >> thank you chair chan. committee members. i'm lee, office of economic and workforce development. perhaps first i can respaind to the second part of your question regarding the obligation the developer will have. as the controller mentioned, the cop's are appropriate here because they have certain restrictions about what type of things they can fund and in this case, for the stage 2 portion of treasure island we propose to fund purely public infrastructure, so streets and

utilities, all those backbone neighborhood building blocks. as was agreed originally in the treasure island development agreement, the city would always reimburse the developer for these expenses but the developer is obigated to source the contract to contract for the work and actually install the assets before any of the dispersements are made back to reimbursing the developer and have existing agreements that detail at length the inspection process the city undergoes to insure that those assets are installed properly and we have done a cost peer review before the dispersements are made. and thank you for the coordination that you mentioned in terms of the amendments. i would like to read proposed language to be added to section

4.1d of the treasure island yerba buena island financing plan. this is exhibit to both the amended and restated disposition and development agreement is and the development agreement. both items contain the financing plan before you and we would add this language to both. the language would read:the treasure island stage 2 alternative finance will be issued as certificates of participation that would be structured no less then 3 separate traunchs with no more then 1 traunch issues per fiscal year. the city will issue the first traunch of certificate of participation and subsquents traunchs only after the 10 year city capital plan updated after the a & r reference date demonstrates capacity for and incorporates the stage 2 alternative financing in the cop program. each legislative package submitted to and subject to the approval of the board of

supervisors for a traunch of certificates of participation will demonstrate compliance with section 10.672 of the city administrate chb code mptd structure certificate of participation so lease paymentss are not appropriated frathum city general fund in fiscal year 25 or fiscal year 26. thank you. >> thank you. with that, i don't see name on the roster. we can go to public comment and then perhaps then we can make the motion to move supervisor dorsey amendment as well as what i had just proposed in partnership with tida and oewd and then we will have supervisor dorsey provide closing remark and with that, let's go to public comment. >> we invite members of the public who joined today who wish to comment or address this committee regarding these items

11 and 12. once you start speaking i'll begin your time of 2 minutes. >> good afternoon madam chair, members. i'm organizer for norcal carpenter union at local 22. i represent 37 thousand members across the 46 counties to include 4 thousand members in san francisco county. i am here today with brothers from carpenter union to support the proposed amendments project. this is critical bringing housing to san francisco with little available land. stage 1 generated 1 thousand units with over 250, bmr units. stage 1 include 2 thousand units including 300 bmr yunlts. once realize the development will make a sizable denltd in the requirement. not only has the development provided much needed housing it

provided hundreds of construction jobs during a period of significant economic downturn. phase 1 kept hundreds people off government assistance by providing full time union jobs they pay livable wage, healthcare benefit not just to the individual about the family as well and anybody who has kids or spouse knows that you know how important to be able to seek medical attention they need when they need it. it is provided the opportunity for local apprentice to begin or continue career in construction, these workers earn a pension something [indiscernible] so, they retire in dignity. we are haphy to be here again to support the treasure island yerba buena island project and ask the committee support the items proposed. thank you. >> thank you.

next speaker. >> good afternoon members. i'm a san francisco native raised in had mission also proud member of carpenter local 22. the carpenter union transformed my life through their comprehensive training program. i honed my skills and became a proficient carpenter. wages and benefits provided me with stability and security of my career. fellow carpenters have enriched my professional life but also provided a sense of belonging, support and opportunity. the union has instilled a sense of pride and dignity in my work. knowing i'm a part of a legacy of skilled craftman and women who built and shape our communities fills with a deep

sense of purpose. i support that amendment. thank you for your time. >> thank you much for addressing the committee. >> good afternoon supervisors. sherry williams from one treasure island. we have been involved with the civilian reuse planning for treasure island since 1994 so i appreciate your commentss about how to make this plan work today 30 years later. i don't necessarily want to say that we in noe valley bathroom, but we are 30 years in the making, so there is some sort of an analogy there. i just want to say quickly, because i only have two minutes, we have 150 units for formally homeless families and individuals which include a child care center at risk if this doesn't move forered ward. 105 units for low income and

seniors at risk. we have 240 substance abuse treatment and step down beds in the pipeline and will lose the funding for those if these amendments don't go forward. the existing residents will be indefinitely in limbo, so to me i think that obviously it is imperative that the city family find a way to make this work. everybody worked tirelessly, your comments recognize that so we hope you support these amendments today mpt we are not just talking treasure island, we are talking about the needs san francisco has to house people that are marginally housed and so many of the other needs that are addressed by this project. thank you so much for your support. >> thank you. next speaker, please. >> good afternoon supervisors.

my name is nela [indiscernible] sherry williams coexecutive director. we have been building a new san francisco neighborhood from the ground up close to 30 years and it will be very challenging to continue to build a supportive thriving diverse equitable community if we don't have the people to support the services needed such as transportation, retail and community facilities. the redevelopment of treasure island is going to bftd the city and county of san francisco. this project is in need of your support to realize the goal of creating san francisco newest neighborhood. a place that is building new housing including affordable housing, creating jobs and added to the beauty and brilliance of san francisco. your support of the dda amendments assure the project is able to progress. thank you for your support. >> thank you much nela. next speaker. >> my name is [indiscernible] the administrative director with one treasure island

stepping in today for our construction liaison for the construction program. he is doing interviews now for new clients for the construction training program, which will be jeopardized if these amendments don'ts go forward. since breaking ground in 2016 the project supported our construction training program for people with barriers to employment. the development generated hundreds of jobs every year for low income san francisco residents. jobs that provide living wages, excellent health and welfare benefits, pension plans and retirement benefits. the development has dramatically changed people life offering gainful employment for a wide range of individuals who were marginally housed, recently released from prison with limited option. living hotel to hotel.

individuals who have little skills and [indiscernible] working dead-end jobs. women and young adults. if the project doesn't move forward, all the work to create programs to provide the life changing opportunities will come to a halt. we truly hope you will support the amendments to the dda. thank you. >> thank you. next speaker, please. >> thank you very much. good afternoon. thanks for the opportunity to speak. my name is doug shoe maker president of mercy housing california and resident orphthe city. i want to thank, i greatly appreciate your attention to the fiscal issues involved. somebody lives here and can see the implications of scarcity, i think the work you are doing to make sure we are fiscally prudent is important. ypt to associate with nela and sherry comments about the importance of treasure island particularly from a economic

justice and affordable housing perspective. it is one of the best community development efforts i have ever seen. been associated with it and government and mercy housing and cant think of too many efforts like this that have done such a sincere job of getting people from places of survival to one of thriving in many circumstances. the couple projects that sherry mentioned are mercy housing project or joint venture. one is addressing with department of public helths, the step down units and service and housing for folks with mental health and substance abuse treatment needs and i say because i have been in a couple hearings with my supervisors mandelman, that as we think about the real difficulties of serving people with really significant mental health and substance abuse needs in the city and how dif ficult to find a place to provide the service. we have a opportunity to build all the beds on treasure island

for the purchases mentioned. it is a unique opportunity and i hope you support these amendmentss. thank you. >> thank you much for your comments. next speaker, please. >> rudey gonzalez buildling construction trade council and specifically representing painter 913, heat and frost insulater [indiscernible] we got a lot of great lbe truckers. the roofing and water [indiscernible] operating engineer [indiscernible] elevator constructor, local 8. plumbers and pipefitters and electricians local 6. we are excited about this mptd . there is a lot to be said being clear-eyed and really fiscally prudent. i thrink it is important we are

able to come back annually and those boundaries and guardrails are built into the legislation so really appreciate the staff and controller team for their expertise on that. the final note i wanted to say, just to cover this with what is happening on the ground. i looked since 2017 when we started to see development and redevelopment happening on the island, we had 187 local workers placed on that job, matriculate through apprenticeship, journey workers at this points. one treasure island had 20works go into construction workforce prms oen the island and city build academy had twice that many people and these are not random job seekers, these are local workers from disadvantage age neighborhoodss strengthen through the building trades i represent so we are proud of it. m i'm not worried about treasure island. i think it will be impossible to slow thes down.

park merced-noe valley out sourced local jobs. this is building locally. this is so much better then a modular toilet that you were only able to do by eliminating 12x. this is inest having in the city and appreciate supervisor mandelman. thank you for cosponsoring. >> thanks again rudey gonzalez. >> my name is shawn, senior field representative for carpenter locing 22. i represent 3700 members locally. 22 local northern california wide, another 37 thousand total. carpenters [indiscernible] i ask you to approve this amendment as it will increase revenue for the city. pay roll taxes for all out working, increase property taxes for all the added units

they will be provided. it will also increase local businesses that are just going to organically grow the island which i'm excited about. the city must expand in order to accommodate our population growth. we haven't been doing that treasure island is the one part of the city doing it. everybody else is fighting it. the city must expand or die. cities must invest in the future. treasure island is provided opportunities for our members, healthcare for all the families, local hire opportunities for all city residents, we left out job corps doing a phenomenal job on the island and have done since before anybody went out on the island. wage for everybody out working. it is a opportunity that is basically other then downtown where we have been hurt.

we are a private sector union, tenant improvement is bread and butter. there is [indiscernible] and expanding the opportunities of work and units for them to do it, please approve it. and we got compliance for all that as with well. on behalf of all the members approve these amendments and keep people working. thank you. >> thank you. next speaker, please. >> can somebody help me use the overhead?

my name is [indiscernible] disappointed i won't have time to read my full comment. i'm the only resident i think in this chamber and i live on 25 years on treasure island and the only one making a comment opposed and giving you information you never heard before. so, thank you for hearing what little i can fit in here. i am opposed to the approval of these resolutions and i don't have time to explain the key issue is there is a risk. if you know statistics. tail risk, fat tail is something you know about but

should know about but not dealing with. one of them i tried to bring to the planning commission, one is the risk for a 7.3 earthquake, 10 percent probability over the next 50 years with peak ground acceleration up to 1g which is twice the building code or projethplanned for. this is new information as of 2014, tida ignored my comments at their meeting back in 2014. i warned them. the worst tail risk is actually a mega storm. you probably haven't heard of mega storm. there is one in california 163 years ago. in 2020 the usgs [indiscernible] $1.7 trillion of damage in california and twice frequent due to climate change. this is probably 1 percent risk a year of this happening.

this is a map of the bcdc online tool that shows 36 inch slr and hundred year storm surge and this is planned for by the projethand you see the red line is over topic of the entire perimeter and the blue is flood ing. contrary-either of the risks could bankrupt [indiscernible] thank you. >> if you like to leave or comfort leaving a copy of your statement you can place it on the tray next to the television and i can collect it. >> i will do so. thank you. >> thank you much. next speaker. >> all delays are by design [indiscernible] it is because even though it come from the skies, only raptors are left.

the problem is raptors are birds, not human beings, so you don't-they eat rabbits. it isn't a reason to [indiscernible] it is rabbit cages. some are too high. it is a waste of sky so you don'ts want to do that. you want to create beauty but cant fake it. you can't fake it. it will show. we are going to create a wildlife refugee that is the [indiscernible] part of the island. we need a space for mammals so you exclude the raptors. mammals only. better for us. male or female, like a noah ark. that is quhie there is delay. that is why because it takes a while to implement. it will be beautiful, that's for sure.

no question about it. stop being raptors because you are not going to be happy, but it is easy. >> thank you for addressing the committee. next speaker, please. >> good afternoon. i'm swords a member agency of one treasure island so here to ask the committee to support the development agreement amendments presented today. these changes are going to help keep the treasure island project moving forward. as many know, there are units that will be delayed if this agreement is not passed, which will really inhibit the work of folks who are in this non profit space to bring new housing to san franciscans most vulnerable living in the city who don't have other options. these will be new units, these are not units folks lived in before, there is program and treatment options on treasure

island so this is critical for the treasure island community and san francisco as a quhole. >> thank you. any other speakers who wish to address the committee regarding 11 and 12, please approach the lectern. madam chair, that completes the queue. >> thank you. public comment is now closed. let's make the motion to on page 5 line 3-5 strike the clause proposed by supervisor dorsey. roll call on the motion to amend please. >> on the motion to amend the ordinance in item 11 offered by supervisor dorsey, mandelman, aye. member melgar, aye. chair chan, aye. we have three ayes.

>> thank you, the motion passes. i would like to make the amendment to item 11 and 12 with amendment propose and read by staff and roll call please. >> on the motion to a-mind the financing plan in the exhibit in both items 11 and 12 as offered by oewd, vice chair mandelman, aye. member melgar, aye. chair chan, aye. we have three ayes. >> the motion passes. with that, i would like to move these 2 items to full board with recommendation and roll call, please. >> on the motion to forward the ordinance on item 11 and resolution in 12 to full board with positive recommendation, item 11 as amends, mandelman aye. melgar, aye. chan, aye. we have three ayes.

>> thank you, the motion passes. [applause] mr. clerk, please call item 13? >> item 13, resolution authorizing the execution and delivery of multifamily housing revenue notes in one or more series in an aggregate principal amount not to exceed $115,845,218 for the purpose of providing financing for the construction of a 184-unit multifamily rental housing project known as “transbay block 2 east”; approving the form of and authorizing the execution of a funding loan agreement providing the terms and conditions of the construction loan from the funding lender to the city, and the execution and delivery of the notes; approving the form of and authorizing the execution of a borrower loan agreement providing the terms and conditions of the construction loan from the city to the borrower; approving the form of and authorizing the execution of a regulatory agreement and declaration of restrictive covenants for the project; authorizing the collection of certain fees; approving, for purposes of the internal revenue code of 1986, as amended, the issuance and sale of residential mortgage revenue notes by the city in an aggregate principal amount not to exceed $115,845,218; approving modifications, changes and additions to the documents; ratifying and approving any action heretofore taken in connection with the funding loan, the borrower

loan, the notes and the project; granting general authority to city officials to take actions necessary to implement this resolution; and related matters, as defined herein. the members of the audience who just walked in, we are still on the middle of procedure so please kindly enter as quitely as possible as we are still carrying on discussion. madam chair. >> thank you. here today we have the office of community investment infrastructure. >> good afternoon chair chan, vice chair mandelman and committee member melgar.

my name is kim, a senior development specialist with the office of community investment and infrastructure also referred tuesday ocii. i'm here to present on item 13 requesting authorization to issue multifamily housing revenue bonds to facilitate development of a planned affordable housing project known as transbay block 2 east. it is important to note that this bond transaction is conduit finance which doesn't require the city to pledge funds toward repayment of the bond. block 2 east is located within the transbay redevelopment project area which was established in 2005 with intent of creating a new mixed use mixed income downtown neighborhood. the project area is split to two zones, zone 1 is administered and implemented by ocii and zone 2 under the jurisdition of the planning department. overall, ocii obligated to provide 45 percent

affordability. block 2 is the few remaining in zone 1 and critical meeting the affordability requirement. block 2 is comprised of two projects 2 east and 2 west. hundred percent affordable housing. 2 east is operated by mercy housing and 2 west operated by chinatown community development center and serve senior households. qulou may recall that committee recommended a similar request for bond issuance to facilitate the 2 west project in february. pleased to note 2 west since closed on financing and construction is now well underway. the 2 east project awarded a bond allocation by california debt limit allocation committee in december and last month the commission approved the ocii permanent loan and long-term ground lease for 2 east. 2 east provides 184 units of