increment -- master development agreement signed by the city and county of san francisco, the redevelopment agency, and the developer. it was signed in 1998, which mandates that all the increment would flow directly to the developer and that the city would issue bonds. i understand that the general fund does not include or anticipate any increment into their general fund numbers as well. so this is a unique agreement, and i think that is why we have been able to accelerate the growth of mission bay north and south and see such an amazing development in the area. in addition, as a result of the increased tax increment, we are looking at about $70 million bond. this is for reimbursement to the developers, pass infrastructure improvements they have made. we have worked with them in prior years to set forth some infrastructure improvements, all the underground for the water

facilities, just everything under ground that was required to build vertical, and that has been done, so this is a reimbursement to the developer. the developer has also agreed to provide the development agency some funds so that we can make a payment due in may of $6 million. we will be utilizing a big portion to make that payment as a result of the developer's contribution. i know people are hearing what is going on with the state and understanding were thinking this is something we are trying to do as a result of the state budget. we come before you regardless of what is happening with the state to seek this increase the budget and bond authority. we are trying to expedite this because i am selling bonds as we speak today. depending on what happens in the state and when the governor signs the budget, we may not be able to do so. i would have sold the bonds anyway, and probably around this

time, but given what is going on in the state, i am trying to make sure we do our work before anything is signed by the governor. i do not know if you want me to speak quickly about what is happening in the state generally -- supervisor chu: i think that would be interesting to folks, but there specifically, in terms of the $70 million in tax incremental bonds, can you describe what it would be used for? the musher theory 20% would be used for housing. there will be a specific housing project on fourth street. that is for 150 units of rental. 25 units will be for formerly homeless families, and it will include 11,000 square feet of commercial space, and will be 50% ami. the remaining 80% would be to a developer for this infrastructure improvements that i spoke of earlier. i have the specific numbers.

i can hold up right now for you. supervisor chu: we can come back to that. >> i have it right here. 150% of ami. the remaining 25 units will be formerly homeless units restricted to 16,760, which is 15% for the four-person household. supervisor chu: thank you. quickly, about the impact on the state. as i say, this may change. as of this morning at 12:15, we understand that the california redevelop association has been working with the five republicans who are still not

supporting the governor's bill. with the amendment that the cra is putting forward, we anticipate up to a 10% increments payment to the schools by the redevelopment agency, and in exchange, we would get two years additional. there is different scenarios under the. the cra is still pushing republicans to move forward and try to get agreement. we understand a trailer bill will be out any day, and the vote will happen shortly after, so we will not have much time to read the bill before the vote happens. it was speculated that the republican convention is happening this week and, so republicans would not do anything until monday, but now we are hearing it could happen any day now. it is still a precarious

situation that we are in. supervisor chu: thank you. why don't we go to the budget analyst report and then open up for questions? >> on page four of our report, we point out that as shown in table ~ well, the estimated annual debt service payments beginning in 2011-2012, so they are not to exceed 70 million tax increment bonds, is $6,400,000, and total debt service is estimated at $177 million. supervisors, i want to clarify our previous report to the committee with respect to the city's general fund in pact pertaining to this proposed legislation. while a tax increment would normally be an impact on the city's general fund, given the three-party unique agreement that we have just described among the city, the development agency, and the developer, all tax increment funds in the mission bay redevelopment project are pledged to the

project and cannot be credited to the city's general fund. therefore, the additional $5.4 million in tax appropriation for 2010-2011, that includes the $3 million-plus, will have no impact on the city's general fund in 2010-2011. in addition, the pledging of $3,648,000 annually of debt service for the next 20 years, decreasing for the next 10 years, would be funded with future tax increment bonds from the mission bay project. therefore, such allocation will not have an impact on the ship -- the city's general fund objective shortfall. we recommend you approve the additional $5,440,000. we consider the approval to be a policy decision for the board of supervisors. supervisor chu: 90.

do we have questions from the committee? -- thank you. just to clarify, this is an item that because of the three-party agreement, does not have an impact on the city put the current year general fund, nor on the future, simply because of the pledging that is currently part of the agreement. when does that agreement and? >> i think it would have been 30 years from the life of the project adoption. i had to look back in my notes. >> at the end of 30 years, that tax increment would flow back to the city general fund? >> yes. >> the amendment for the purposes of low-income housing. when our project expires, we also get an amendment to issue additional debt for the purpose of housing only. if we do that, that is subject to the board approval. >> that would be under redevelopment and existing development structure, but given all the changes of the state, that might not be an option.

supervisor farrell? supervisor farrell: just a quick question. if we do not have what is happening in california in our state legislature going on, would you -- but for that happening, when would you be before us with this amendment? >> i actually would probably be before you now because a part of my series on issuing four series of bonds. it is curve -- part of my 2009- 2010 revenue budget, so i would come before you regardless of this. i think i would say within a day two how the market is looking at rates, but it would be the normal course of business. supervisor farrell: following up on some earlier discussions we have had, given that there are a number of agencies floating these bonds this week, given the

anticipation of what is happening in sacramento, i will throw it to you and to our city staff as well. any other creative ideas in terms of getting better interest rates for what we will be floating this week -- i know we had talked about a few alternatives before committee today. has anyone looked at that at all? i appreciate the urgency of what we're doing, but in the last moments here, there are creative ways to think about, given ultimately the city's obligation. >> we have not gone into that situation here right now, i am issuing with the city, county, hotel tax for a shorter time. certainly, we could look into cop's, but given the very complex funding and payments we have to make, i think any assumed or desired reduction in interest rate that we might receive would be offset by this payments we would have to make

it another entity besides the said francisco redevelopment agency issues these bonds or any kind of public financing tool. supervisor chu: is nadia here as well? i saw her earlier. i just wondered if there might be some information about what the market looks like at the moment. i think she might be on a call. and i know the market will be changing daily. talking to nadia yesterday, we have seen the development deals around the state that are 50 basis points or higher this week as a result of some of the rush to market. it is unclear exactly what the ultimate impact of the sale would be here in the city and county, we are seeing rates that are higher statewide. supervisor chu: just a question for redevelopment -- you

mentioned you are looking to sell bonds any moment now? >> sure. we already issued our official statements, and i think we will have a follow-up board meeting today. we would like to try to issue a package. because of the market, one would go to market, we have a lot of customers waiting for us, both on the private side as well as investment side. we are hoping to, as soon as we find out, i have my bankers looking to issue by official statement and print them today, this afternoon. we hope to close the deal by friday or monday at the latest. supervisor chu: ok. why do we open this item up for public comment? are there any members of the public who wish to speak on item 1? >> good afternoon, supervisors.

i have lived in san francisco for 59 years. i would like to speak out opposing this resolution. unfortunately, using hindsight seems like the benefit of the redevelopment agency has been exaggerated. it seems to me like certain neighborhoods like the fillmore, etc., have not benefited as much as what they were told they would have benefited from the development agency. i feel that giving them additional money is not a good idea at the present time. also, i feel bad supervisor mirkarimi's feng shui comment needs to be reexamined a little closer since it deals with japan town. it seems like we might end up with the development with no 49ers, so i have a feeling that

one is not going the way it should be going. i feel like the money, instead of being given to the redevelopment agency, should be given directly to the needy people in a more direct approach. it seems like lately, the more the government becomes involved in activities, the worse it gets. then, if we are going to have such a short agenda today, with only one item, i'd like to suggest that since we have all the financial wizards in this room right now, we should deal with the bond at san francisco general hospital, and hopefully, that will not cost over $1 billion. i feel that the redevelopment agency has not performed as well as advertised and the money should be used elsewhere. thank you. >> thank you very much. are there any other members of the public who wish to speak on this item?

seeing none, public comment is closed. just a question for redevelopment. you had mentioned that we are going to go -- we got the official statements out, printed for the sale of your amd's. do you know what the total value of that aggregate issuance is? >> the numbers all run together in my head. i think it is going to be under $70,000 total. i forget the numbers, but it is under $70 million total. supervisor chu: you mentioned that you anticipate going out again for a c adn d series? >> $100 million total, i believe. supervisor chu: the $70 million we are talking about right now is part of c and d? >> yes. supervisor chu: do you anticipate going to the market for altogether? >> we were in a market already

because the official payments have been published. the official statements first, and we will be in the market wednesday and thursday. supervisor chu: is there any likelihood that we would -- so today, we are really authorizing or providing extra appropriation authority, and also allowing the $70 million bond appropriation. it is likely end could be possible that that $70 million would be issued at a different time, potentially? >> yes. my commission has only given me authority for taxable rate of 11% and eight tax-exempt rate of 9%. if the market is doing something crazy tomorrow, and also, the impact of japan is affecting the market. i would not have the authority to issue those bonds, so i will not be issuing them if the rates and upcoming higher than that tomorrow. supervisor chu: ok.

ok, so, if i could, what i would suggest -- i think the supervisor farrell's point about going to market at an inopportune time is a good one. if i could have the office of public finance to circle back with the supervisor's office to talk about what the conditions of the markets look like and whether we anticipate going out to the market in a short while or whether it is something we expect to go out at a later time, the point about are getting the best bang for our buck and the best interest rate possible is a valid one. i'm comfortable with allowing the allocation and the appropriation to go forward at this moment so that you are able to take advantage of the market at any point in time, but i think that it is worthwhile to have that conversation with supervisor farrell's office in particular. would that be ok? >> sure. supervisor chu: do we have a

motion to send this item forward with recommendation? ok, we will send this item out as a committee report so it gets to the board today. supervisor farrell: said it would -- as a committee report to the board today. supervisor chu: any other items? >> that concludes our agenda. supervisor chu: thank you. we are adjourned.

when a resident of san francisco is looking for health care, you look in your neighborhood first. what is closest to you? if you come to a neighborhood health center or a clinic, you then have access it a system of care in the community health network. we are a system of care that was probably based on the family practice model, but it was really clear that there are special populations with special needs. the cole street clinic is a youth clinic in the heart of the haight ashbury and they target youth. tom woodell takes care of many of the central city residents and they have great expertise

in providing services for many of the homeless. potrero hill and southeast health centers are health centers in those particular communities that are family health centers, so they provide health care to patients across the age span. . >> many of our clients are working poor. they pay their taxes. they may run into a rough patch now and then and what we're able to provide is a bridge towards getting them back on their feet. the center averages about 14,000 visits a year in the health clinic alone. one of the areas that we specialize in is family medicine, but the additional focus of that is is to provide care to women and children. women find out they're pregnant, we talk to them about the importance of getting good prenatal care which takes many visits. we initially will see them for their full physical to

determine their base line health, and then enroll them in prenatal care which occurs over the next 9 months. group prenatal care is designed to give women the opportunity to bond during their pregnancy with other women that have similar due dates. our doctors here are family doctors. they are able to help these women deliver their babies at the hospital, at general hospital. we also have the wic program, which is a program that provides food vouchers for our families after they have their children, up to age 5 they are able to receive food vouchers to get milk and cereal for their children. >> it's for the city, not only our clinic, but the city. we have all our children in san francisco should have insurance now because if they are low income enough, they get medical. if they actually have a little more assets, a little more income, they can get happy family. we do have family who come

outside of our neighborhood to come on our clinic. one thing i learn from our clients, no matter how old they are, no matter how little english they know, they know how to get to chinatown, meaning they know how to get to our clinic. 85 percent of our staff is bilingual because we are serving many monolingual chinese patients. they can be child care providers so our clients can go out and work. >> we found more and more women of child bearing age come down with cancer and they have kids and the kids were having a horrible time and parents were having a horrible time. how do parents tell their kids they may not be here?

what we do is provide a place and the material and support and then they figure out their own truth, what it means to them. i see the behavior change in front of my eyes. maybe they have never been able to go out of boundaries, their lives have been so rigid to sort of expressing that makes tremendous changes. because we did what we did, it is now sort of a nationwide model. >> i think you would be surprised if you come to these clinics. many of them i think would be your neighbors if you knew that. often times we just don't discuss that. we treat husband and wife and they bring in their kids or we treat the grandparents and then the next generation. there are people who come in who need treatment for their heart disease or for their diabetes or their high blood pressure or their cholesterol or their hepatitis b. we actually provide group medical visits and group

education classes and meeting people who have similar chronic illnesses as you do really helps you understand that you are not alone in dealing with this. and it validates the experiences that you have and so you learn from each other. >> i think it's very important to try to be in tune with the needs of the community and a lot of our patients have -- a lot of our patients are actually immigrants who have a lot of competing priorities, family issues, child care issues, maybe not being able to find work or finding work and not being insured and health care sometimes isn't the top priority for them. we need to understand that so that we can help them take care of themselves physically and emotionally to deal with all these other things. they also have to be working through with people living longer and living with more chronic conditions i think we're going to see more

patients coming through. >> starting next year, every day 10,000 people will hit the age of 60 until 2020. . >> the needs of the patients that we see at kerr senior center often have to do with the consequences of long standing substance abuse and mental illness, linked to their chronic diseases. heart failure, hypertension, diabetes, cancer, stroke, those kinds of chronic illnesses. when you get them in your 30's and 40's and you have them into your aging process, you are not going to have a comfortable old age. you are also seeing in terms of epidemics, an increase in alzheimer's and it is going to increase as the population increases. there are quite a few seniors

who have mental health problems but they are also, the majority of seniors, who are hard-working, who had minimum wage jobs their whole lives, who paid social security. think about living on $889 a month in the city of san francisco needing to buy medication, one meal a day, hopefully, and health care. if we could provide health care early on we might prevent (inaudible) and people would be less likely to end up in the emergency room with a drastic outcome. we could actually provide prevention and health care to people who had no other way of getting health care, those without insurance, it might be more cost effectiti

[gavel] president chiu: good afternoon. welcome to the board of supervisors' meeting of march f-

15, 2011. madam clerk, could you please read the roll? clerk calvillo: [reading roll] mr. president, there is a quorum. president chiu: supervisors, as you probably know, supervisors mirkarimi, wei -- wiener, and cohen are in washington, d.c.. ladies and gentlemen, could you please join me in the pledge of allegiance?