that is, you can be a high-income individual and be lucky enough to be in a rent-controlled unit. that is not an opinion, that's just fact. i'm not saying it is good or bad. however what we do have in the mayor's office of housing are a series of programs that target new housing specifically for low-income housing and individuals. this project at a minimum will provide 271 permanently affordable below market units and up to $229 million in fees to fund permanently affordable housing in the city and county of san francisco. no small contribution. there is flexibility to increase the number of m.r. units on site or to build them off site. this is an important point. for those of you on the

commission. this project would contribute to the city's you broader general plan goal of building affordable housing city-wide. finally a few points about the economic vie bit of this. we heard comments in the press, i heard comments in hearings about the i.r.r., the internal rate of return. some individuals are concerned that it is too low. our independent consultant ran the numbers based on the current market kigs and our reasonable projections for the next several years, and in fact we do see a rate below what is the normal market threshhold. it is ironic to those of us in my department, normally we are scoleded when we don't have an aggressive i.r.r. like thfment we are told we haven't negotiated hard enough. we feel we have negotiated gressive -- aggressively. i think this i.r.r. is a sign of that. however i do want to note, this is a unique site.

it is not raw land. it is a community of existing rental units. this i.r.r. in isolation may seem sub standard by some indications, but actually there is existing revenue that makes this competitive for outside investments. finally, i just was talk about direct benfits that improvements or fees paid by the project. i want to speak about economic and fiscal benefits more broadly. at build-out, after we net out the added general fund cost associated with the substantial increase in population that would be accommodated at a fully built-out project with $5036 net new units, after netting those costs from the general fund, we expect on average into the future a 17.5 million annual net fiscal surplus to the city and

county and to our general fund fund. that jend general fund goes to health care, to police to fire and all good causes that i think we all care about in depiss cal constraint. second, during construction we expect one-time annual revenues of $13 million to $16 million in addition over time. finally, a detailed analysis has been worked out with the c.f.o. at sfmta. we believe sfmta will be in a net tiss cal positive position based on the riser -- on the ride are shippship. -- on the ridership. we estimate in total overtime 35,000 construction-related

jobs. when this thing is built out, we expect the secondary effects to support 600 new jobs from retail, to housing management, for an approximate mate $309 million of additional economic activity. >> a lot of questions about phasing has been raised. if you remember the structure of the c.a. the basic approvals is everything before you tonight. following the basic approvals tonight, this developer has to come back and apply to the city for development-phase approval. so i have heard comments and concerns that we have approved those concerns and tomorrow bulldoesers can start.

following that development phase application must undergo review. in a sense what we have here is a neighborhood plan. it is interesting to compare this. any developer can come in at any time and start at level three. and that is called a section 329 application. design review happens here, of course. but before zipe review happens, the city has to approve an overall scheme of development, and that is the development phase. key points, as i said before, there is no public lands, taxes, or funds. so no time-based performance

scheduled are included. however, as i said before, the developer must return from each and every development phase approval and for every building phase as well. there is a minimum requirement of 500 units per development phase and a max numb of 35 mun00 units. that means overtime there will be three large development phases proposed or 15 small development phases. every development phase within each development phase there will be an order of phasing inside each sfaze -- phase. second, delivery of all public benefits decided in these plans is dick dated by development phasing plan and attachment to this is real and binding for triggers for all the -- triggers for all the improvements.

we have very specific physical design criteria. every development phase must conform with design standards. they cannot be torn apart, and the public will get to see each design and development phase approval. the contents of each phase are listed here. it is worth noting that the order of construction, as well as the amount of new residential units and the number of d.m.r. units as well as the list of buildings to be demolished. a lot of information in these development phase approvals, and a lot of information available when they come before the

planning department and are ultimately issued to the public. rent control replacement units. a lot has been said in these hearings about this agreement. i'm going to start at the bottom of this slide, which i think is probably the most important thing and i don't think we have emphasized enough. this development agreement before you and the public tonight was built on the trinity development agreement, but it is substantially grouped. some of us were advocates of that trinity development a critics. i would like-agreement. now they are critics. i would like to point out some of the specific improvements, if i like. there were no rent board relocation efforts. under this agreement there are

full relocation agreements for existing tenants who sfay until a unit is available to them if they choose not to rent that unit. if an existing tenant rejected that aat trinity, the landlord had a right to evict them. that is not the case here at all. finally, the 10ants have a right to stay in this existing unit. that was not a right in trinity. we have taken a model that was championed by a former supervisor and a 10ant activist and built on it. that is what is before you today. i think it is an incredibly important if the for this commission to kmplet on top of -- on top of that, a primary agreement to this is not a waiver. we are specifically seeking to

com ply with hawkins villa the expressed opinions in that law where a contract with agency allowed for consideration and one is forms of assistance speci densified in the density specified in the density bonus statute which includes a whole host of land use concessions or incentives. the package of benefits provide those benefits. here they are. i don't necessarily need to go through them. they are expensive and exhaustive. this bears repeating, i think. no existing unit can be demolished until a constitutional amendmenting unit -- a corresponding unit is

available. nobody is required to relocate to an undisclosed location or building. they are allowed to stay in their units until a replacement unit is provided. period. that replacement unit must have the same bathroom and bedroom count, similar storage area based on averages. compam exact same lease and exact same lease terms including the rent. the only difference is the location of the premises. new and old provisions are prohibited. this and any future developer cannot pass prohibited. this and any future developer cannot pass on the future of the community developments. it is prohibited under section four. the old pass-throughs that applied are eliminated as well. new amenities are provided. the same parking rights and rent, although not necessarily the same location. i do want to point out in response to concerns raised by 10ant advocates, we have added a

provision that allows any 10ant that feels they have been inconvenienced by the relocation of their parking space a right to petition the rent board for a reduction in rent based on a reduction in services. units will be prioritized by lpt of tenancy. patios are not guaranteed in the agreement. the reason for that is the design is complex and diverse and it is difficult to arrange that, sa -- so we feel the open spaces provided are an important form of compensation. i'm going to walk through the relocation process. frankly, misinformation has been spread and it is important for the city and county to have the information in front of you. process for being noticed,

whether your potential building or unit is potentially or will potentially be replaced begins with the development phase approval. if you remember, any area of this development that is to -- has to, for any development to happen, there has to be a development phase approval. any buildings proposed to be replaced. locations of all required location units and the order of construction. we have required in the newest drafts there be a presentation to any and all 10ants. so they have a big picture view of whether they are in the first development phase or out and what the order of that development phase is. based on this early notification, the earlyest possible date that we can conceive a denant would receive notice and be asked to relocated is two years. in all likelihood the time periods will range much, much

later. that is because development phases will provide substantial advance notice. it is physically impossible to build 2,000 units in the course of two years. a 10ant relocation unit is issued. the names, addresses, and dates of initial occupancy of all 10ants in any occupied buildings, and an estimated skelled ewe for relocation. next in the process is an existing 10ant notice. this is delivered to any occupyant of any existing unit of the start of construction on any replacement building for that unit. this isn't 60 days before a demolition, it is 60 days while that new construction is undergoing construction. you have good notice that the building that ultimately you can choose to relocate to is under

construction. finally, when a une -- when a unit is ready, up to six months before first certificate of occupancy is issued, the developer is required to notice the 10ants and the rent board. the rent board is subject to all these notices, that an anticipated relocation date and every existing 10ant's rank, knew marke cal seniority -- numerical soon yorte. and to tour the construction site as safety permits. 10ants are asked to rank within 20 -- tenans -- tenants are asked to rank the buildings. you rank all those available

units by your preference. after that, notice is spent to en-- tenants. tenants may accept or ye reject. the 10 ynt is allowed to move 30 to 60 days after that notice. one other important point to emphasize. one year to six months prior to a building's completion indicate. whether or not you wan the unit, you are entitled to full relose indication benefits. this is a substantial difference than the trinity development agreement.

finally, existing tenents may stay in existing units as long as that building is available just prior to demolition. they are able to stay under their existing lease and under rent control until they struntarle leave taking relocation benefits with them, the developer stops leasing the building, and finally, for buildings that are partially empty, those units will be subject to rent control until lease termination notice is issued to any new 10ant, or any -- any new tenant or any new tenant in the building. that concludes my summary of the rent-control.

i think we provided the pronlect sponsor with time. >> we will limit the time because the presentation from staff i think covered a lot of the areas i think people were concerned about. if the project sponsor wants, what, 10 to 15 minutes. that should cover it. we heard a lot of information from staff. >> good evening. i work for parks and investors l.l.c. we know you have heard a lot on the project already. tonight i want to highlight some

of the basic -- we're committed to those protections as much as the city is. it has been a fundamental concern to us since day one. we want to reiterate that on the record as well. obviously there is a benefit in change. there is change coming. what does that change mean to residents? what do they get out of it at the end of the day? obviously new units will be upgraded with up >> graded installation. they will have buildings designed to exceed requirements today by 15%. that is a marked improvement over what is there today. all thomes will have energy star appliances. there will be high-efficiency energy lighting systems, and approved control, such as motion centers and master shut-offs.

we're using low-flow plumbing fixtures to reduce the consumption from excess of 170 gallons per home per day to less than 80 gallons per home per day of potable water. all this leads to lower utility bills for residents and a 10% better code requirement compliance. the greenhouse gas emissions are 6.36 tons per unit today. in the future they go to 2.63 tons per unit. an impressive savings. today part of the project is designed to bring more housing process. today there are 13-story tower homes with minimal options outside of one and two bedrooms.

there are very few three-bedrooms. also, trying to appeal to families more so by create -- creating six times the number of bedrooms and at least 60% of the future homes will be two-bedroom or greater. open space. there is a lot of open space today. we respect that. we want to continue that going forward. a lot of designs have been tailored to continue the open-space efforts for going forward. the current landscape uses about 15,000 gallons of pottable water per year. going forward we want to improve that with native land escaping to improve that. additionally and what we have heard consistently from the residents is the appeal from the

courtyards and the desire to keep the court yards. we would like to provide a variety of open space going forward. afrom the courtyards, really an important point, is all ground floor momes when they face the street while courtyard will have direct access to the outside. additionally we want another layer of space. fitness and business centers. we house there as well. all integrated into the useable street designs. finally, an 18-acre park on the southern edge of the property.

athletic field,or beganic farm. the existing streets allow cars to move quickly through the site with limbed stop signs. a common complaint is there is too much movement and not enough pedestrian safety. all stop signs are designed to control the speed of traffic through the site. the neighborhood will be the first neighborhood to implement street designs. such as gonzalez drive, which is the main greenway movement as adjacent to the park, as you can

see, this drive was designed bike path and travel lanes. additionally the alleyways were design today share the street concept geared toward pedestrian involvement. all of the streets designed to engage homes or residents. every ground four home having walk-up connection to the street. on top of the streets we looked at making beauty more accessible. car share van pool. carpool as well. with the real-time information web site updated full time, a transportation coordinator on site. we talked about intersection improvement.

every adjacent intersection touching the property will be improved. there are 11 total. they will be enhancing bicycle safety as well as looking at traffic flows. we're trying to improve the pedestrian access in and out of the sites. obviously muni. a bart shuttle. also acts as a shutting during off-peak times. close to finally, through collaborative processes and more than seven meetings with sfmta, and the department of public

works, san francisco fire department, san francisco police department, all the planned documents today have been developed in this collaborative process. and it has been a long process and a lot of work back and forth between the agency and the design team. all those project commitments are commitments we want to work with. the city continues to implement in the future. i dp want to end by stating a couple things. this becomes an example of a sustainable neighborhood. it puts no financial burden on the city. that's a huge element. one thing we have learped, we

recognize the changes are tough for the residents and change is tough for the community as a whole. people don't always want to accept change, but the condition of the property is such that change is inevitible and it will bring change to the area itself. prior owners neglected property renovations. the recent investment in property renovations will help but it is putting off the challenges facing the property physically and operationly. this provides us a way to improve the property and still protect existing residents. at this time, i would like to turn it over to the project land use council. -- counsel, mary murphy. >> i would like to in the

interests of time and in deference to those who i know are here to speak, i would like to call to your attention i have submitted a letter into the record about the development obligations. mr. yarny has covered a lot of the basics, but i will add i am here to cover many of the basics. i will add to the conversation, woy like to make two brief points. mr. yarny has explained, and i know you all understand and i know people in the audience know, that a development agreement is a contract between the developer, and within that contract there are a whole host of enforcement meckmisms that the city has. it is very sophisticated about these sorts of matters as you know. >> acustomed to these enforcement mechanisms, i want to add that during the terms of this development agreement a

developer or subsequent purchaser were to fail to meet its obligations, there are a whole host of remedies that the city could declare default or terminate the developers development rights, and this is an enormously powerful tool in the city's arsenal. one of the things i pointed out, one of the concerns i think i heard expressed is what happens after the project is completed. the threat of losing development rights is over, in that respect, i want to make clear, that there are certain obligations under the development agreement that, for example, a building that has a replacement unit is required to record a restriction against the titles of that property, incorporating the 10ant protection and the city is afforded the right to enforce that, including the right to get specific performance in court. i thought that would be an important point, that there is a mechanism for enforcement after