the site inventory for the 2022 housing element. the aerial image before you looking south gives a sense of the current state of the project site. the mall which is in pink sits in the middle of the site and the mall will remain. i want to be clear, the mall is community asset, thribeing retail center and the last thing we want to do is redisrupt it. the area outlined in white are the project site and development location. about 30 aches of surface parking surrounding the mall. not highly utilized and are not great use of space. the timeline shows this project has been in the works for about 5 years and had multiple opportunities for

community and stakeholder engagement throughout from consultation with neighbors the plan was refined to more formal comment opportunities through the ceqa process, there is ample opportunity for weigh in and i know brookefield has taken those comments into consideration as they refined the project. just to drill down on what was a robust outreach and if engagement. hosted 8 workshops, 14 meetings of working group, thousands of individual neighbor conversations, thousands of website visitors, and many many hours of virtual in person office hours. the project did take the feedback into account with changes to design, community benefits as well as location of density on site. what is it proposed to be built here? at the core this is

transforming the existing surface parking lot around the mall into new housing so 3500 new unit in housing, low medium and high rise building. 6 acres of parks and plazas and new retail main street on 20 avenue that exist as access road through the parking lot. new bike and pedestrian connection and replacement structure below ground parking. i will now take through key terms of the development agreement. with regards to open space, there is 6 acres of new publicly accessible open space on site that includes a new town square which is the location for the existing popular farmer market and entry welcome plaza on the east side of the mall. the park also makes improvalment to playground a rec park owned facility to the norkt west of the project side between stonestown and lowell high school. these are improvements to a new

entrance plaza, path drainage and were developed in concert with rec park staff. finally, the project is making a financial contribution of $1 million to support future improvement to [indiscernible] the affordable housing pajic is one of the most important community benefits the project provides. the project provides 20 percent of the total housing as affordable housing. the obligationcast met in multiple ways. this is designed to provide flexibility as they build this project in a changing economic landscape and future conditions we can't perfectly predict now. those three options are on site inclusionary units located in otherwise market rate buildings. donating up to 3 parcels for the devepmhundred percent affordable housing. those can be donated to city,

or non profit affordable housing developers. as well as paying inlu fee which can not be the only option the developer utilizes. they can't fee out their entire obligation so minimum full build out there needs to be 300 units of affordable housing on site. few more details to add because this is top of mind. any affordable housing fee revenue is prioritized for use at san francisco state university educator village project which is a compelling affordable project located next door that serve faculty and staff. there is also a parcel identified e5 as a appropriate land dedication parcel and when the space comes if that parcel is dedicated the mayor office of housing indicated they will pursue a affordable senior development

on site. the project provides a full suite of transportation starting with new street network. a fully rebuilt 20 avenue through the site. bike and ped connections and transportation demand management program. the--the project also provides a new child care facility which accommodate up to a hundred children and provide partially subsidized rent to the operator and new senior center constructed to replace the existing senior center and ymca annex rented to non profit operator for a nominal cost. the project will have a workforce program, the developer has to participate in important workforce development program including

local hiring policy, prevailing wage for all public works contract and on the contracting side lbe target of 15 percent including 10 percent micro lbe gome. i note the project is big picture of [indiscernible] create 800 jobs in san francisco annually through the development phases and will grow the city economy by hundreds of million a year. this slide here is meant to illustrate the complex project phasing and i won't read everything but just the important thing to note are the phasing is complicated. there are 6 faces broken to subphases and that is required b will remain in operation throughout and there is a checker boarding required to produce replacement mall parking kwr maintain mall access as the development moves forward. one thing i want to highlight is in every face e phase there is important community benefits. for example, phase 1 will have

the improvements for the playground, phase 2 the child care, phase 3 senior center and so on. every phase has affordable housing and new streets and infrastructure and open space and participate in workforce plans. i will pivot to the eifd items before you. specifically speak to the resolution of intention. what is a eifd? a state authorized public finanssing tool that allows the city to capture tax increment which is net new property tax revenue generated by development and use to offset the cost of infrastructure required to fund the development. it is a virtuous cycle that allows us to invest in the infrastructure we need to produce housing and accelerate development. the roi the formation process. the next step is development of

the infrastructure financing plan that lays out all the tax increment projections and has to come back to the board for approval before the eifd is formed. we anticipate that is early 2025. i'll note you can see the project areas are highlighted in gray in the drawing and the mall in pink isn't part of the eifd. any new tax increment continues to flow through the city has usual. why is a eifd appropriate? like many development projects stonestown is challenged to achieve financial feasibility. interest rates are high, construction cost are high and that means it is difficult to attract capital they need to build these projects.

the eifd harness the tax revenue and use to offset infrastructure cost required to build. this provides a material benefit and means the project is feasible sooner in the city economic recovery. by implementing the eifd we get the housing and community benefit sooner. i want to acknowledge the city has a ifd policy. the board approved that policy earlier this year in the course of the approval of the power station and this at stonestown is compliant with that policy so i'll just talk through important points here. this is a large scale project rezoned which creates the tax increment which is need for infrastructure and funding is necessary to achieve financial feasibility. the project result in net fiscal benefit. the city is better off from a revenue and expenditure perspective.

the eifd gets no more then 50 percent and i'll just-i believe there is a suggested amendment codifying the provision in the resolution we are supportive of and can talk about when the time is right. finally, this is in compliance with city wide 5 percent rule which says we'll size formation so debt formation are no more [indiscernible] finally, this is subject to 10 year use can or lose it clause. if the developer doesn't make progress on the first tax increment within 10 years the city has the right to desolve and allocate to another project. finally, i'll touch on the ordinance amending the code around pfa. law requires there is a public financing authority or pfa that acts as legislative body.

that body is fully seated and this ordinance simply allows the ist xing pfa to serve as the legislative body for stonestown eifd and future eifd the board decides to form. that concludes the presentation. thank you for your time and consideration and staff are available for questions. >> we report on 15 and 16. one is ordinance that approves the development agreement between the city and brookefield properties related to the stonestown projbect and one is resolution of intent to form and enhance infrastructure financing district around the project to divert property taxes to reimburse the developer for certain eligible infrastructure costs and as we detail in the report. the development agreement provides the developer the right to develop

the projeth. we detailed the lapd use in the report as well as the phasing of the community benefit on pages 34 and 39 of the report. we also note the policy consideration that this even with this public financing, this project may not be built even with the current market conditions and we also know that we are in a extraordinary moment with interest rates now and they are expected to decline, so the motivation for doing this, is the current market condition which could change and make the project more feasible even without this public financing. having said that, these agreements are consistent with other development agreements and public financing associated with them. that is approved by this board just in the past couple months. we recommend approval on that

basis. we are recommending an amendment to the resolution of intention just to incorporate the city policy around diverting no more then 50 percent of the incremental increase in the property taxes in the area to this project and recommend approval that resolution as amended. >> thank you. before i call on vice chair mandelman, i do want to confirm that it is in agreement for these amendments recommended by the budget legislative analyst. i will call you back up to read outloud of those proposed amendments, which is colleagues you have copies that before you. indicated on page 3 as well as page 4. they are red line which is much easier to read. reminder for everybody. vice chair mandelman.

>> thank you chair chan and are thank you supervisor melgar and to your office for your work on this and oewd and the brookefield team and i'm -i remember the open air stonestown and this is a much better change then that move. this is very very exciting and it will be cool and i know a lot of people put a lot of work and congratulations and please add me as cospounser for 15-17. >> there you go. supervisor melgar. >> i like to add one thing chair chan. monday we considered the changes to the planning code. we did make amendments that are substantive, so we continued it for a week to next monday.

if it is the will of this committee to pass these on for recommendation to the full board, we plan to agendize the planning code changes as a committee report on monday so it all comes together as a package to the full board on tuesday. that's what i'm hoping will happen. thank you. >> thank you supervisor melgar. i'm going to you know, and i think i indicated before and put on public record and is that, as we continue to build on the west side and increase of density, i do hope that both on the city and in partnership with this developer we continue to see ongoing investment in infrastructure and that's including clearly the one of the things that we want to do is the emergency firefighter water system and that i am learning about trying to figure

out like how do we bring this conversation we have been having with san francisco public utility commission and fire department with this team here to really find ways to connect that system. i think we have commitments from sfpuc with about roughly $300 million of water bond that is on top of proposition b of the $100 million bond dollars all together so we can actually plan out and design that entire system for the west side not just from district 7 but through district 4 and extend all the way to district 1 with the recognition that the cost in 2019 $2019 was $15 million and increased $42 million per mile. i hope as we continue with this development agreement and i think that while there is commitment to

investment to infrastructure, i agree with the budget and legislative analyst sort of this take on-let's build as we go and that what can we do to make sure that we have these revenue and special districts that contribute back to the area so we can continue to move this forward. i think it is a smarter way to go then the previous model thhad when we start with these type of development agreement and to set realistic expectation for the community and the surrounding community where this development will go. i think that the city while i hope that we will continuing conversation and see where investment will go, i think the city made clear on its own we'll make that investment. i want to put on public record

we have the commitment from sfpuc and the fire department and do hope those two city departments will come together with oewd team with office of economic workforce development team and developer investor to talk how to move this forward and make this reality and if there are opportunities that we can make this infrastructure more efficient boket both in dollar and can design and i think i strongly urge the team to consider and moving forward but pretty sure supervisor melgar will also closely monitor that as well. supervisor melgar. >> i wanted to completely agree with you supervisor chan. you know, in districtsy we have a lot of opportunity sites. that is what we identified in the general plan and housing element. we have lots of asphalt around

religious institutions on brotherhood way, lots of sites like 7th [indiscernible] we have been looking development quite some time and our infrastructure is lagging behind because we plan years ahead for capital and sometimes we wake up and like we didn't think of this or which is we just approved the new housing element last year when the plans for the new pressureized system have been in the works quite some time. i'm hoping that at some point they will catch up d i'll be pushing for that. for this particular development, i did have several conversations with our fire marshal. part of the amendments we are going to be considering for approval today are the schedule for the in lu fee payment to the fire department.

that is going specifically to station 19, which is right there at stonestown. a smaller aging station that can definitely use the investment and i welcome it. i will also note that the building code requirement that high density buildings have their own pressureized system and that will be what happens here. so, i think we will be better off, but not all the way there in terms of having this system that we want, which of course is going to require public investment, but thank you so much for bringing up these issues chair chan. >> thank you and i don't see any other name on the roster and no more other comments from this committee. let's go to public comment. >> members who wish to address committee regarding these items

15-17, now is your opportuty. you can line up against those curtains and if i can have the first speaker approach i'll start your time when you begin speaking. >> thank you. good afternoon. i appreciate your time today. my name is [indiscernible] i live near stonestown mall and coming to speak in support of the project. stonestown is a great resource for the neighborhood. i'm there often with my family. we walk there or more often drive there and we love the mall but every time i visit i'm imazed by the sea of parking lot. a poor use of space in a city that is in need of more housing, so huge supporter of the project and look forward to visiting the new neighborhood and hope with the protecting bike lane we can safely bike with my young kids and it sounds like the committee is supportive so

thank you for that. the other point i talk to a lot on the west side and housing isn't always a uncontroversial issue but stonestown seems widely supported by the community and think that is a testament to the project and design and neighborhood outreach and good work that supervisor melgar has done, so thank you all very much and i appreciate it. >> thank you for your comments. next speaker. >> good afternoon members of the budget finance committee. my name is eddie reyes, representing the san francisco building construction trade council. also the president of iron work aing local 37 saeb. 7. i encourage your support creating the enhanced infrastructure finance district to make the project

reality. creating thousands of jobs and housing this undertakes infrastructure improvement for the project and surrounding community. a key tool we have used at potrero power station is creation of enhanced infrastructure project finance district. we hope you support this important item before you today. thank you. >> thank you much eddie reyes. next speaker. >> thank you for the opportunity to comment today. my name is megan burn. the home owner in the ingleside neighborhood within walking distance of stonestown mall. here to voice my strong support for the project and the prospect of new homes in the area. in addition to being a home owner and frequent customer at stonestown mall, i'm a teacher in the san francisco public school, specifically washington high school and i have a daughter who

attend lowell high school and walks past stonestown every day on her way to school. we know san francisco desperately need more affordable housing, particularly for public servants including teachers and next generation to see they have the possibility able to live in the city once they become adults. my thanks to city supervisors, the city and specifically supervisor melgar for your work on this project. thank you. >> thank you much. next speaker, please. >> good afternoon supervisors. corey smith in support of the project today. earlier this week submitted petition we cohosted with 330 supporters of the project as well. we did get a couple out here but 4 hours into hearing in the middle of the week is difficult for a lot of people to make so please consider their support when evaluating the project. the letters submitted through

the record. i don't want to repeat the points on that, but take agstep back and broader moment where we are in san francisco right now. where not a lot is happening building more homes for people, especially privately financed homes and this is moving forward. i am stepping for the san francisco organizer as we are hiring somebody so i will come to city hall and covering and i don't have a lot to do because there isn't a lot happening and so when we have one in front of us in the opportunity is so unique for a variety of reasons everybody knows it is exciting and i want to make sure we are taking the opportunity proceeding with what we have here today in front of us keep moving forward and want to extend our appreciation not only to supervisor melgar, but her predecessor board president yee for his work. it took a long time without a doubt but there is a reason you got supporters stacked up here and not a bunch of opposition so kudo tuesday the project team and look forward shopping

at the new mall. thank you. >> thank you curtis smith. next speaker, please. >> good afternoon madam chair and supervisors. my name is--a organizer for the nor cal carpenter union representing carpenter local 22 in san francisco stand in support of the potential stonestown development project located on the west side of san francisco. this project isn't just a venture it is a opportunity to create extraordinary transform the west side of san francisco and transform the live of san franciscans bringing jobs community amenity office space park plaza local business and significant housing. project like this is great for creating jobs stimulate economy and providing places for family and friends to gather and live. stimument the economy by providing jobs during and after construction

worker are able to earn livable wage healthcare and benefit with high general contractors are selected to do 24 work. project like stonestown will transform acres of parking lots to residential neighborhoods with up to 35 housing units-3500 housing units that local workers can and families can also have a chance to live in the city where they work. stonestown will have additional uses including park and plaza to gather and enjoy retail shop and fun and every day needs. thank you for the opportunity to speak on this item. i strongly request you vote yes on this. >> thank you for your comments. next speaker. >> eileen boken with speak. community meeting february 3 this year the stonestown project manager stated no construction would begin at least 2

years due to market conditions. [indiscernible] not mentioned during the presentation but there was a offline conversation with planning. no changes were mentioned by planning. [indiscernible] may be okay with potable water, d4 and d 7 continue to advocate for dedicated a was. toking water to fight fires and city having to issue a boil water alert and avoid puc plushing out water large projecktds dedicated on site awas piping. speak has been involveped all 5 years of the process focusing on awas. it was late 2022 that speak confirmed there would be on site dedicated awas pipeal piping. this was subsequentially

confirmed by planning and dpw. on january 22 of this year at the board land use and transportation committee, katie miller of puc stated on the record that stonestown would also have a hook up to the puc dedicated awas piping. however at the commission on may 28, staff stated that there would be no dedicated awas piping oen site but [indiscernible] this sets a h dangerous precedent. at the capital planning committee june 24, oed stated this is because there is no dedicated hook up nearby even though there are hookups at 19th avenue and [indiscernible] as well as ocean avenue there are also [indiscernible] used for the-- >> thank you so much your time expired. thank you for addressing the committee.

with no further speakers, madam chair that completes the queue. >> thank you and seeing no more public comment, public comment is closed. i again thank you all the public commenters who came today and that i what is your will supervisor? >> i like that we first of all take the amendments and then to move all three items forward to the full board with recommendation. >> thank you and with that, do we need to state the amendments publicly? let's have oewd read out loud the amendments on legislation page 3 and 4. >> thank you chair chan. you want me to read the red line? on page 3, line 14, we add the language, whas