terms of unit sizes, the mix would be essentially the same. two-bedroom and larger as opposed to 1-bedroom. 65% would be two-bedroom and larger. the percentage of 3-bedroom units would rise substantially from 7% up to 15% in the future. before, there were only 230 units. now it is over 1300. in terms of the mix between the high-rise tower units and the lower-rise units, we are over 52% in the towers. if we take the project as proposed, it goes down. with that, i will turn it over to craig to take you through some of the proposed building

amenities. >> and good evening, commissioners. i have the overall design responsibility for this project. i would like to begin with a quick overview of existing apartments, their qualities. there have been questions raised about how the new construction, the new apartments, might compare to what there is today. some are critical of the cookie- cutter-like repetition of the architecture in -- and the suburban-enclave nature. it is not without purpose. it has individual, private front doors. patios are connected directly to outside. there is a town house quality. it is a sense of almost a single-family housing. at the same time, there are challenges associated with this. it has been pointed out that these units were built during

wartime shortages. materials were used for the garden apartments, plaster, plywood, material not put together will to sustain long- term viability as ongoing construction. much has been done. much will continue to have to be done throughout the course of time that these buildings exist. interest -- infiltration and dry run exists. there are substantial qualities of the existing buildings that can only be brought up to current code if they are replaced. those include ada accessibility, meeting code today, specifically with the size of kitchens and bathrooms, soundproofing, and these bring obvious challenges with them.

as has been pointed out in the past, the window configuration misoriented -- is oriented to trying to put the major windows to the courtyard. the result is a lack of eyes on the street and they perceive a lack of security in public portions of parkmerced street itself. the movement -- the new amenities will be state of the art in terms of quality of furnishings, fixtures, and the construction itself. windows will be designed to maximize daylight in these buildings and to minimize energy loss. new finish, new casework. these are actual photographs of something that was prepared to test these units. this unit was built a year and a half ago. it was the subject of a competition across the city for the most in green-loving family to live in this unit to test it.

these are some above materials you see here. each of these new units will have its own washer and dryer built in. new casework, finishes, new windows, state of the art. this will be built not at one time, but over a period of many years. therefore, the latest technologies are available as we progress. they will be available for incorporation. in the ego unit, -- eco unit, you see a monitor or a dash board installed. you can see energy being consumed throughout your unit, my kitchen, water consumption, etc. you can see where money is going and where you are consuming, and where you can conserve. this is one of the most effective ways to reduce energy

consumption. other obvious things will be done will be to incorporate low- flow fixtures to minimize water consumption, as you perhaps remember. the analysis showed we can reduce water consumption by over 60% for a dwelling unit as this project moves forward as implemented. part of what gets us there is low-flow fixtures, as mentioned. this is a view of the kind of kitchen that is anticipated. energy star, low-energy appliances will be part of it. the simple incorporation of energy star refrigerators throughout the last 15 years in california has reduced and made an incredible reduction in the amount of energy used in california. this is part of the goal for parkmerced. likewise, the question has been asked about the nature of

outdoor space and how it relates to the new plan. again, there are benefits to the ways parkmerced is laid out right now with low density. in its reflection of a very clear suburban quality of courtyards, large yards, there are three playgrounds. there is a community garden. the drawbacks are, as you can see in the little picture, much of the open space is captured in yards that are not usable. their captor between esplanades and streets. in quantity, it would add up to a lot of free space in terms of usability. not so good. one of the problems is, in the current irrigation system, there are leaks. as you may remember, we have identified there are over 55

million gallons of drinking water used to irrigate the lawns of parkmerced. part of the reduction in water consumption, which is a critical thing facing us in california, is making more efficient kind of landscapes in this new project. so, moving forward, looking at some of the other benefits, existing open space configuration, the community gardens are proposed going forward. playgrounds are proposed in the courtyard. as you may remember, neighborhood parks specifically designed for this place a series of these. there are six parks situated within the community. a large organic farm of almost 3 acres, and a pond in the center

feeds the beginning of a water system. a plainfield, a recreation field, is a part of this. this cannot be achieved right now because of the spread out nature of low-density housing. we will make a living areas compact and walkable. part of this open space will be dedicated bicycle lanes. of course, pedestrians. there are existing public amenities at parkmerced that have been very popular. the farmers' market was one. there are business centers in each of the towers. there is space to do this. in the lower picture, you see a picture of the new gym. these are the towers. we lost the farmers' market.

it lasted three years. there was not enough density to support it, to make it viable. it has been discontinued. the proposal going forward is to reintroduce this, add density to support it. their business centers spread throughout the project. they will make it possible to reduce perhaps even further the car trips that were just articulated as one of the benefits. grocery stores are at the heart of this. with neighborhood parks will be support so -- support facilities, including work rooms and corner cafes. coffee shops are adjacent to it. there will be a dedicated, a new community center, which will help support the needs of all ages. this is near the organic farm.

along with this is, of course, the provision for land for a new school. k through grade 5. also, a lot of questions raised about the nature of construction and the kind of comfort or discomfort that residents will be subjected to throughout the course of construction. it is important to note that a development of this sort, it is subject to ongoing construction work. this ongoing work is renovations that require work to existing occupied structures. there is significant disturbance that will occur and continue to occur. it will have to be repaired over the years. new construction, by comparison,

will be done separately. it was done in independent pieces, using the current, state of the art techniques, reduction of impact on neighborhood. these include dust control, techniques such as a mist cu rtain, a significant amount of recycled water used to clean trucks before and after they leave the site, they are not creating debris in streets. construction management in terms of providing transportation, there are shuttles bringing them to the site. a number of these are available to really reduce the impact. perhaps most importantly is the technique of construction and the nature of phasing incremental growth. there is not a single year -- singular project in which a vast area is swept clean, demolished,

and reconstructed. this will be built very much like a typical neighborhood. the city grows over the years. redevelopment will occur incrementally. we are taking one section to illustrate this. the first piece of this would include approximately 150 to 200 units per increment. the next one will be built away from adjacent neighbors. you can see others as they go forward. finally, there is not a single group of individuals who are subjected to ongoing, continuous construction disturbance. that is a quick summary of trying to articulate how units are currently, how the current

existence qualities are, open space, and techniques for construction. we can go into more detail. now we will talk about the questions raised about property control. >> good evening, commissioners. i am pleased to be here this evening. i do want to say briefly that i am happy to go into more detail about the affordable housing program if there is interest tonight. because i know many people are interested in the rent control issues, i will focus my presentation on that topic. i am prepared for questions you might have. i want to start by emphasizing an important point. this is a draft. it is, by definition, not complete. we are actively working on improving. we are continuing making

revisions based on feedback from the city attorney's office, from the rent board, and their staff attorneys, and from these public hearings. i emphasize that because i want to say we did post the new version today on the department website. redistributed hard copies to you. this will be official draft 3. the public is encouraged to download that from the website. we have a clean copy and the red line. the red line is based on changes to draft number two. it is also posted on the website. there is a problem with posting every set of revisions we make every week. we do not want to overwhelm the public record with these documents. that is opposed to waiting a while until we collect enough to post. we have every intent and will make this process as transparent as possible.

we have records of all the copies and all of the revisions. for the sake of limiting the amount of documentation on the website in public circulation, we are only releasing draft approximately every month, ok? i emphasize this because last week, several comments remained on the record about what was in and what was not in the agreement. many of the comments were based on an older draft that did not include revisions we received from the rent board, which we had already agreed to incorporate, which are now available for you to look -- to review in draft 3, ok? if you have questions, i am happy to answer them. another key point that was raised at the last hearing, and i want everyone to know that we're listening at those hearings, even if we are tired, we're listening, the city cannot contract around state law. comments were made about if it is complying with state law. we by definition cannot contract

around state law. a development agreement cannot ignore state law. that being said, we have a provision that has been added to the agreement, just to clarify that point, which is section 2.7, which makes clear that the city is indemnified in the event that any provisions of the agreement are held to be contrary to state law. finally, and this is very important in this debate, that we distinguish between policy decisions verses legal requirements. a lot of comments were made by a particular individual at last week's hearing. we have heard other comments about what the development agreement should include as opposed to what it must include. i am going to do my best to explain where we make policy decisions and where we are meeting existing code or legal requirements, ok? i am going to start with some

guiding principles. these are the principles that our office, the planning department, the mayor's office, and others have been using as we craft this agreement. i am speaking to section four, governing all housing-related matters, and the rent-control replacement provisions. number one central to our guiding principle is to protect existing tenants. the city wants to protect the existing tenants. it is not the city's intent to leave the existing tenants vulnerable to the evictions or two displacement. second, we are intending in all of this work to put nobody in a materially worse position than they are today. what i mean by that is we want to give the tenants better units than they have today. we're committed to transparency and fairness in this process that we are designing. we are also committed to a knowledge in that there are

policy tradeoffs in this project. not everything can remain the same to accommodate the pro -- of program. we are committed to adjudicating through existing rent board procedures, except for limited range of policy decisions, which i will clarify. we are also committed to finding and creating more it -- more affordable, incoming housing. i'm sure the commissioners are all aware that rent-controlled housing is not income-targeted housing. we do not control who occupies this housing. a rich person or a poor person can occupy a rent-control unit. they all equally benefit. the city is interested in targeting housing to those who are in the most need, specifically low-income households. this is an important principle. we are trying to balance the primary principle of protecting tenants with another principal,

acknowledging that there are region-wide needs. ok. costa hawkins. i am delighted to walk through some of the principles we are attempting to apply in this document related to it. in fact, it is true that, in general, it does not allow cities to impose rent control on newly constructed units. that is true. but, it does contain an express exception. it is in red. it allows cities and private parties by mutual consent -- consent to impose rent control on a newly constructed unit. it is in the law. this is not a waiver we are seeking more something outside of the law. it is different than the cases you have heard about the ellis act, where santa monica -- the

case specifically entered into a waiver agreement. the city of santa monica did not use an existing provision in the ellis act. it's simply drafted a waiver and had a property owner sign it. this exception refers to specific forms of assistance that are identified in the state against the law, which includes both density bonuses, increases in housing density, or concessions and incentives. they go want to clarify what those are. we believe strongly that the combined package of benefits in the development agreement satisfies this public assistance exception that is spelled out. what are some of the forms of assistance? this comes down to if we are providing sufficient forms of assistance to the developer?

that is the question in the center of this whole issue. i am listing just a few of them here. it includes a much more exhaustive list. we have listed what we believe are all the forms of public assistance that comply with the statute. i will highlight a few of the most obvious. the most obvious is the elimination of maximum density controls. you cannot build more than one unit per 800 square feet of lot area. we are moving towards foreign- based identity controls. we have setbacks controlling density, and we don't set arbitrary caps on density. we have a eliminated maximum

density controls. we have reduced setbacks and increased permissible height envelopes for many of the parcels. the new buildings exceeding 40 feet and for residential demolitions, we are permitting more commercially make use development that would be allowed under current zoning and leading the development rights. i am happy to answer questions as i can when we come to that. i want to talk about who qualifies as an existing tenants. the agreement defines an existing tenants. it is subject to all the rights for relocation.

i have laid it out here as clear as i can, that if any person executes a lease with occupancy rates and any subsequent occupants reciting an existing unit with the knowledge or approval by developer, when it is provided for the replacement building, you are in an existing units and you get a notice that they are beginning work, construction on a replacement unit, on the project site that ultimately will be moved into. you are a family member or something in that unit and you get a notice. that is a qualification number one. that you are still in that unit when the city issues the first certificate of occupancy for the replacement building, your new unit has received the city's approval for occupancy. if you meet those requirements,

you are an existing tenant protected and entitled to all of the rights in this agreement. if there is any dispute der status, his it is not by the developer, but by the rent board. of pay, the next topic. this is a big one. a lot has been said publicly about what will be provided and what may not be provided. i will try to go through that list and i appreciate your patience. every single unit and that is demolished will be replaced. because of the way we have structured this agreement, it is important to note that at any given time, there could be more rent-controlled units on the site than exists today. there can never be less. why is that? because we require the full

replacement building to be complete and have certificates of occupancy issued by the city before a single existing unit is demolished. it is possible and we could have more than the existing 3212, i believe is. the same bathroom and bedroom count. we divide up the existing units, and there is a list which is divided basically upon a one- bedroom, one bath. so on and so forth. there are 10 typologies. we have clarified how many fall into those categories, and they will be notified. unless they specifically requests -- unless they

downsize, we have a process for reducing the rent. there is a storage area. that includes off-site storage. i don't want to get too much into the weeds on this, but we have broken into the typologies where we have come up with an average size for each unit. he might gain some miners were footage or you might lose some of minor square footage. it varies between 10 and 20 square feet. we are not talking about hundreds of square feet. we have made a policy decision,

but is an immaterial change. that is a policy decision, and that is an act of open discussion about whether we should reduce the rent. this is one of the choices we have made. the same base rent they are paying today, you can keep your pets and you are allowed to have pets. one of the ordinance based grants are eliminated. if there have been previous capital improvements, they are eliminated when this move occurs

in the tent will go back to the original rent or when they get the end of this to relocate. no new ones are allowed for the related costs. they can't say they are building this amazing organic farm or this a state of the art bio- soil system. under the rent ordinance in the future, they are not related to this project and its implementation. new appliances are provided. the same parking rights and rent are also afforded all existing tenants. not necessarily the same location. many of you were commenting about how this is a transit

oriented development. how are we going to encourage transit rider ship. >in that many of you have advocated for. where that occurs, the space is perhaps less convenient. i want to be very specific. replacement patio's and balcony's are not guaranteed. there are many in this proposal and the tenants would be allowed to pick based on seniority of their unit type if they have a patio or balcony. they get to rank