of folks. obviously, either approach could be taken. for practical reasons, we think it would be advantageous to concentrate on commercial or vacant properties. cuff -- we would like to use non city resources. i think, most notably, those at the state and federal level. four, this is a specific input from our public citizens, stakeholders. we also like to require procedures to help the city agencies prioritize implementation of the infrastructure. as you can see from rincon hill, i think we are all interested to hear from residents what they view is important in helping the city decide which projects. and then finally, this was a direct recommendation from supervisor cohen, malia cohen,

essentially reporting back on how is the ifd doing and how are the monies being spent, and that seems practical. that includes the summary of both ifd's, in general, the rincon hill ifd, and what we think will make the framework for future ifd's. i am happy to answer questions. i have someone with me that helped to prepare the information in your pockets -- packets, and there is another here. chair chu: thank you. i believe that supervisor kim has a question, and then we will

go to the analyst's report. supervisor kim: your priorities? >> to my knowledge, there is no priority list, but it is the rincon hill. it is under option, and we're trying to move fast to be able to preserve it. supervisor kim: the projected date when the infrastructure improvements would happen is potentially year four, when residents would start to see that. >> specifically for the first increment, that would allow us to purchase the park and hopefully commence construction shortly thereafter. supervisor kim: and in terms of us making long-term commitments

to these, have we begun to look at these four rincon hill -- for rincon hill. we started looking at that for the other commitments, with rec and park, dpw, and others. >> there can be additional tools, public-private agreements. where we have one single property owner who receives such a benefit from a particular improvement. so that could be done opportunistic lead. it is possible, for example, there is a significant project very close to a parka, -- park, and we can see if they will support a similar one at the rincon hill site. supervisor kim: what kind of

time before it comes back for approval? >> there is an estimated budget, and we would also come to you with the proposed maintenance plan. supervisor kim: this may have been in the report, but is there an actual definition about efficiency? >> at this point, it is more of an art than a science. there are some in the general plan for parks, some general plans for a neighborhood versus regional-serving parks, but, frankly, there has not been a universal standard for all of the things that people say they want, better streetscapes, community centers, parks, so we need to do that work. supervisor kim: and that will be the future situation, as more people are involved, so trying

to set the standards earlier would be helpful. the last question i have, and this is just something i am curious about, is how it recalculates services needed in neighborhoods? is there a formula to be used to determine other neighborhood services? i know that you included that in the cumulative general fund cost, including the ifd part. >> there is a standard methodology. but there is a consultant. their initial reports on the study that was done for a shipyard, traditionally, most of those studies are done based on very costs. what the consultant does is they look at the fund budget or a particular category, police and fire, for example, and they look at what that means on a per- capita basis, and then they take that number and multiplied it by the expected service population, and the term "service

population" lose the stands for residents and about 50% of the employment base -- a loosely stands for that. -- it is loosely stands for that. -- it loosely stands. supervisor kim: demographics? >> to look at demographics first. we look at demographics specifically in the realm of public health and civil services, and is this a population that we expect is going to have a significant drop on those services, and, supervisor, to be frank, ultimately, there is a judgment call in that case, and we know for a fact that every one of these projects we would say our higher-end projects for a population that we do not expect to be using public health

services or even public transit as much as a population in the middle of the tenderloin, and so, we looked at each cost carrier -- costs and area. we tried to rob a reasonable outcome -- we looked at each cost area. we tried to reach a reasonable outcome. supervisor kim: thank you. chair chu: why do we not go to the analyst's report? >> we have a very detailed report and a very brief summary. i would just review with you the recommendation on pages 15 and 16 the reason we consider this to be a policy matter for the board of supervisors. first, we say that approval would create the first infrastructure fund in san francisco district.

creation of a district would result in of bam a maximum $16 million -- would result in generating property taxes to be retained by the district, rather than accruing to the city's own funds, and, supervisors, that is the main, the bottom-line issue that the approval of this legislation would commit this to the district as opposed to with accruing to the general fund. also, while the assumption behind the growth projections are there, we have reviewed them, and they do appear reasonable. but they nevertheless are projections reflecting in the real-estate market. second, there is the construction of facilities in the rincon hill area involving

costs, but any expenditures, as stated, would still be subject student -- subject to the board of approval -- borders supervisors -- board of supervisors' approval. approval includes the issuance of up to -- bonds, though this would require specific board of supervisors' approval. this would be to pay for public facilities, about $15.70 million. the total estimated accumulated debt service of over $37 million. the entire $22 million in bonds issued would obligate the district of total debt service payments of an estimated $54 million-plus from the revenues. and finally, we state that the

actions would include the board of supervisors' approval regarding the use of further infrastructure facility areas. we consider your approval to be a positive matter for the board. chair chu: thank you. i have a few questions for mr. yarne. so, i understand that the rincon hill area would be a pilot plan. this would not necessarily be articulated. i understand that issue. if you were to walk us through some the best practices, with regard to recreation and parks being able to identify a funding plan to maintain this potential new site, the creation of the

park is done. >> there is something in place that is actually receiving funding. what i envision is about the best case scenario.

we have pretty firm estimates about what this will cost, and we have an actual bid for the ongoing maintenance. so what we would present to this board will be the authorization of the bond issuance, the ifd share of the budgets. this would be to provide ongoing maintenance with attachments showing that there is a binding bid in that case for maintenance services. this committee, i assume, perhaps, they will be able to judge the accuracy of those estimates and the strength of those commitments. another example, a supervisor, which i think is quite possible in large areas is when the economy finally improves, it

would be possible to explore what we call a relatively light assessment over a large area. this is if you, in turn, permit added assessments. chair chu: can you speak a little bit as to why this part helps to solve the deficiency? how we found a level of amenities that are not available in that area? >> i stand here, kind of representing the rincon hill

process. there was, i think, a development. this is for the recreation and parks to arrive at this. i am under the impression that that analysis is with the adoption of the plan. >> -- chair chu: that would be good information to be provided to our office. whether or not if you had an rf d, should there not be a real investment, other things would

be possible. -- should there not be korea investments, other things would be possible. we are really, in a way, giving additional benefits to an area that would not necessarily need it for the project to be completed, right? so in terms of helping us think about this, what is the developers' portion? there are the impact fees. would we not be able to purchase the land? it has been entitled. that project development is happening. it is going to occur. we are not arguing that we need to make this development for it to happen. it is going on. an extra amount of allocation, in terms of dollars to provide public amenities, is it that we cannot possibly provide the public amenities with these? >> i can answer this question

precisely and been more generally. precisely, in the case of rincon hill park, we have a relatively small window of opportunity. the parcel that i have mentioned on harrison, they have to justify their financing this month, in february, and there are two approaches. they have to demonstrate to the lender that the city is committed to forming an infrastructure financing district and ultimately issue bonds. in that case, they can justify it to their lender that the ultimate purpose -- purchase of the property and then the dedication of that park. i have to emphasize that the park is not a condition of the approval of that. because of the crash, there were additional impact fees in the wind, and he'll plan to pay for it -- indeed -- in the rincon

hill plan. it is a classic problem with impact fees. the only arise when the development happens. it is very hard for us to do pro-active acquisitions when we cannot bond, and so, the impact fees again, to rehash, the impact fees collected at rincon hill today are insufficient -- insufficient for that park. and then finally, in response to a broader question about will the development happen, my educated guess is that this development, all of the development at rincon hill will develop, but i think the question is at what rate, and at what quality? if we as a city signal to the

private market that we are serious about building the infrastructure that we proposed and promised, it should, in turn, encourage private investors to accelerate their projects, and that could be in the form of an equity investor in saying, taking a second look at a project that they initially said, "i am not going to look at financing" for the next five years. they may actually reconsider that, and so there is money there in terms of transfer taxes and property taxes that would be coming sooner to the city and therefore benefiting the city's situation sooner rather than later, so i do think there is a fair argument to be made that even though nine of these 10 projects are already entitled, and i think even though that i think most reasonable people assume they will go, this particular ifd could accelerate

this process, not only benefit in the people live in the neighborhood but also benefiting the general fund, because this money would be received sooner rather than later. chair chu: all right, and then the final question is just a very simple administrative question. there is the issuance of the bonds, extending oversight of the situation. who does that? >> it would be the board of supervisors, and we have been working with the budget office and the comptroller's office. bolten in may, when we get to the point that this board decides they want to make an allocation of an increment to the special fund, we can look at more accurately how that goes -- ultimately, when we get to that point. chair chu: i understand that we

have to finally give approval, but where does this sit administratively? the expenses for it, etc.? have we considered where that would be? because we would have to allocate with the tax payment would go. >> maybe mr. wagner can respond to that. >> madam chair, that is a good question. ultimately, it would go through the normal budgetary process outlined under the charter, so before we made any allocation decisions, we would need to look at exactly where the expenditure budget would be in how the mechanics of that would look in the budget, but i do not think we have gotten that far to determine exactly where that would sit. we would have to work with the

comptroller's office and draft the appropriate legislation that would be submitted to the board. it could be at the department. it could be at the parks department. it could be at the other location. chair chu: ok, so one is just a technical part of where it sits in the budget, and that can be resolved fairly easily. if an ifd is created, at some point in time, somebody has to craft what those items look like to bring them to the board, so who has that administrative duty to figure out which projects are being expensed, where the ifd monies are going, so regardless, there has to be some kind of project management. >> there is something that, frankly, i do not remember what

the acronym stands for. recreation and park, dpw, another, they meet regularly on the infrastructure projects, and right now, that agency group informally is doing exactly what you're talking about. they are looking at each project. they are looking at the individual infrastructure projects proposed in the area plan. they are deciding which deserve to be developed in more details schematically and in terms of structure drawings, and it ultimately are deciding which agencies will head of the project management. i would suggest to this committee -- will head up that project management. i would suggest to this committee that be refined and clarified, because this is a multi agency and multi disciplinary process, but who has responsibility, that is not clear.

chair chu: ok, i think that is something that is one to be fairly important for us to clarify as we go forward. one concern i have about going forward, not necessarily with the pilot, but used frequently or to the extent that they are used more broadly in the future, i do not want the city to create another -- and the agency. we cannot afford to have another staff of two budget people. that would be a very difficult thing for the city to maintain, so i would really like some thought around how they would really do this work in the best way possible and in the most efficient way possible, so, ok. any other questions? ok, why do we not open these items up for public comment? is there any members of the public who would like to comment on items 8 through 16, please come on up. >> i am a tenderloin resident. what is being proposed is a

private park for the rincon hill area. one part has been chain link to and locks, and seniors, disabled -- one part -- park has been chain-linked and locked. you need to go slow on this proposal and reject this pilot program until there is more answers to the questions you and of imposing. thank you. chair chu: are there other members of the public to speak? and i would like to ask you to line up in the center aisle, so we have an idea. thank you. >> good afternoon. i am the president of the rincon hill association.

the guidelines that were being presented today. what i see here is not necessarily the property value boost for the residents. the condominiums were built in 1991, and following the earthquake, we kind of hit the reset as far as tearing down the embarcadero freeway, etc. how many folks have to die crossing harrison street to their homes along harrison street, where there are thousands of people who live there, despite the bay bridge bringing in 2 flandres 60,000 cars every day, the air pollution that comes from those cars -- the 260,000 cars every day. for 20 years, they crest towers have been there. so have all of the buildings -- for 20 years, they crest towers

of been there -- bay crest towers. it is lower than the check that i write for my 400 sq. ft. studio. the 57% of what is left in the general fund, i guess will grab up. the infinity towers, it just one building. how much residential property contribute $8 million every year to the city? on rincon hill, another $5 million. there is not even a continuous sidewalk. there are 1000 kids in the area. 300 kids live there. there are more of the various child care centers. please pass this. thank you. come through on your promise. chair chu: thank you. next speaker, please.

>> my name is -- and i am with the development term that is building harrison. some issues. first of all, about the park. that park was basically designed by the neighbors. there were eight major meetings conducted by is a bow wave -- by isabel wade to serve the neighborhood. secondly, from a cost point of view, it is not just the city that is concerned about the maintenance. the fha, where i have just come from, they are extremely concerned. there is a sinking fund that

cannot be touched. they will restrict any fees coming from the project. everybody has influence over this park, making sure in this properly run. we need to have something that will work from a public park point of view. chair chu: just a question. >> we have to work up the details. we have already had a bunch of these. chair chu: thank you.

are there any other members of the public who wish to comment on these items? seeing none, public comment is closed. [gavel] i believe we have a number of amendments to make. supervisor kim? supervisor kim: yes, i would like to make the amendments that were brought up by mr. yarne earlier. chair chu: yes, we will be amending some of these but not all. so why do we not take that? my primary concern with an ifd in any diversion -- and any diversion is just to protect the general fund, because we have major shortfalls coming up.