>> hello. welcome to the regular meeting of the budget and finance subcommittee meeting. my name is karimen chu. joined by ross mirkairmi and supervisor jane kim. our clerk is victor young. do we have announcements today? >> if you wish to speak during public comment, submit the card and present them to myself. please provide a copy to the clerk. items not appearing today will appear on the board of supervisors agenda unless otherwise stated. supervisor chu: thank you very much. we will lose quorum if we don't take a quick recess. the mayor will be announcing the police chief and i believe a number of folks will be on hand for that announcement. so what i'd like to do before i call our agenda items is to take a brief recess. we'll say that we will return roughly around 10:20 or so. that probably will be enough time, i imagine.

, before we are -- we return. so if we can we'll just take a brief recess, roughly about 10, 20 minutes and we'll be back. thank you. supervisor chu: i thank everybody for their patience as we watch the new chief get sworn in. we want to say congratulations to chief suhr. if we can call item number one. >> resolution approving the execution of lease number 11-0049 with cargo warehouse and support office space in building 648 at san francisco international airport. supervisor chu: thank you very much. i believe we have kathy white from the airport. >> good morning, chair chu, vice chair mirk reama. we are trying -- mirkarimi.

the new lease would carry a term of five years from may 5, 2011, to may 5 -- may 4, 2016. the lease is for a total scare footage of 2,608 of cargo space, ramp space at the airport. this is the exact same space that the airline currently has with us. there has been some reconfiguration from cargo space to office space but the scare footage remains the same. under the proposed lease, the asi anna airlines would pay a rental rate of $it 2 per square foot for a total of $800,000. as the budget analyst report it is a rent reduction of approximately $94,000 a year. we saw a similar rent reduction when the committee approved our

cargo lease with china airlines. we'll see this as things come before you where at the end of a few 10-year leases, particularly with some of our cargo tenants and the cargo market is substantially different. much smaller than it was a year ago. so the new lower rental rate is the result of a negotiation between airport staff and the airlines. and we feel that it is a fair market rate. supervisor chu: ok. let's go to the budget analyst report. >> madam chair, members of the committee, debra newman. as she indicated and as shown in our report on page 4, table 2, the current lease with asi anna airlines is at a rate -- asiana airlines it is a result

the $943,146 per year under the new lease. although the square footage would remain the same, the rental rate per square foot will go down to $21.40 so there will be a total of annual estimated revenue of $849,000 or a reduction of $94,037 per year. however, because of the airport's residual rate setting methodology that there will not result in any budgetary shortfall overall for the airport because the cost will be reallocated and rerecommend approval of the proposed lease. supervisor chu: why don't we open this up for public comment? are there any members of the comment who would like to speak on item number one? seeing none, public comment is closed. can we move this item forward with recommendation? we'll do that without

objection. thank you very much. item number 2, please. >> item number two, ordinance appropriating $6,995,000 of loan funding from the california department of boating and waterways to the renovation of west harbor of san francisco, arena yacht harbor for fiscal year 2010-2011. supervisor chu: thank you. i believe we have katie from the recreation department. >> thank you, commissioners. i'm here this morning to ask for your approval of a sublamental appropriation in the amount of $6.9 million which is the final installment of a $23.5 million loan that the city is receiving from the california department of ++ --

supervisor chu: let's go to the member. >> it would appropriate $6,995 loan from the california department of boating and waterways to the recreational and park departments. this would complete the $23,495,000 loan in addition at a 4.5% interest rate. interest is calculated at $222,583 or a cost to rec and park of $46 million. it is estimated to make increasing amounts of loan payments, increasing up to $1.4 million annually over a total of 35 years. as katie indicated, the rec-park department would repay the employee posed state loan from the west harbor operations from the marina yacht harbor fund. and given the state requirements, the proposed cash flow analysis that is shown on page 9 of our report does indicate that the recognize park department would be able to complete the loan as indicated and note that the board of supervisors previously

approved a 37% rate increase in the rental rate in the west harbor which are anticipated to begin in fiscal year 2012-2013 when the project would be completed and with the rent increases, the birth rental rate increases, they are projected to be sufficient funds to meet the state's debt obligation under the proposed loan agreement and we therefore recommend approval of the proposed supplemental. supervisor chu: thank you very much. why don't we go to public comment on this item? are there any members of the public who wish to comment on item number 2? seeing none, public comment is closed. ok, we have a motion to send the item forward with recommendation and also a second and we'll do that without objection. thank you very much. item number three, please. >> item number three, resolution authorizing the director of the mayor's office of housing to accept and expand an economic development initiative special projects grant from u.s. department of

housing and urban development in the total amount of $750,000 to assist with the redevelopment of the sunydale housing site into a mixed housing community. supervisor chu: thank you very much. we have amy from the mayor's office for this item. >> thank you, chairman chu. supervisor mirkirimi and supervisor kim. i am director of the mayor's office of housing and i would like to ask for your approval today of an extend of $750,000 of an economic development initiative grant from the department of housing and urban development. this grant would be for the sunydale revitalization project which is one of the five active hope f.s. sites that exists today. hope f.s. is the program where the city is revitalizing one of the most distressed housing sites into mixed income communities.

sunydale had been working with the mayor's office of housing for the last three years to preprayer pour the revitalization process. they are at the point which they have completed the master planning process and are working towards completing their entitlements by summer 2012. sunydale currently is a 785 unit public housing development which once revitalized is planning to be a 1,700 unit project which will actually have 25 square feet of life center, a 15,000 square foot neighborhood serving retail component and a 15,000 square foot community serving retail which will serve for job training and resident services for existing residents on the site. we ask for approval because the city financing is very important to the overall project as it is a very large and ambitious effort to revitalize this project. especially during these very difficult times. thank you.

supervisor chu: thank you very much for your presentation. this item does not have a budget analyst report with it so why don't we go directly to public comments. are there any members of the public who wish to speak on item number 3? seeing none, public comment is closed. supervisor mirkarimi: motion to accept with recommendation. supervisor chu: ok, we have a motion to accept this item with recommendation. we will do that without objection. thank you. do we have any other items before us? >> that completes the subcommittee agenda. supervisor chu: thank you. we are adjourned.

>> welcome to culture wire. we will look at the latest and greatest public art project. recently, the airport unveiled the new state of the art terminal. let's take a look. the new terminal service and american airlines and virgin america was designed by a world- renowned architecture's firm. originally built in 1954, the building underwent massive renovation to become the first registered terminal and one of the must modern and sustainable terminals and the united states. the public art program continues its 30-year legacy of

integrating art into the airport environment with the addition of five new commissions that are as bold and dynamic as the new building. >> this project was completed in record time, and we were able to integrate the artist's early enough in the process that they could work with the architect said that the work that is completed is the work that really helps complement and instill the space as opposed to being tucked away in a corner. >> be experience begins with the glass facades that was designed with over 120 laminated glass panels. it captures the experience of being under or over clouds when flying in a plane. depending on the distance or point of view, it can appear clear for more abstract and atmospheric.

the subtle colors change gradually depending on the light and the time of day. >> i wanted to create an art work that looks over time as well as working on in the first glance. the first time you come here, you may not see a. but you may be able to see one side over the other. it features a couple of suspended sculptures. each was created out of a series of flat plains run parallel to each other and constructed of steel tubing. >> it is made up of these strata. as the light starts to shift, there is a real sense that there is a dynamism. >> it gives the illusion that this cultures might be fragments of a larger, mysterious mass.

>> the environmental artwork livens it with color, light, and the movement. three large woven soldiers are suspended. these are activated by custom air flow program. >> i channeled air flow into each of these forms that makes it move ever so slightly. and it is beating like a heart. if-0 when as of the forces of nature moving around us every second. >> shadow patterns reflect the shapes of the hanging sculptures. the new terminal also features a children's play areas. both of the market the

exploratory n.y. -- exploratorium. the offer travelers of all ages a playful oasis. using high quality plywood, they created henches shaped like a bird wings that double as musical instruments. serving as a backdrop is a mural featuring images of local birds and san francisco's famous skyline. >> in the line between that is so natural, you can see birds and be in complete wilderness. i really like that about this. you could maybe get a little snapshot of what they are expecting. >> it is an interactive, keck

sculpture that is interacted with by the visitor. >> they are a lot about and they fall down the belt. it moves the belt up, and if you turn that faster, the butterflies fall in the move of words. >> the art reflect the commission's commitment to acquiring the best work from the bay area and beyond. in addition to the five new commissions, 20 artworks that were already in the airport collection were reinstalled. some of which were historically cited in the terminal. it includes major sculptures by the international artists. as a collection, these art works tell the story of the vibrant arts scene in the early 1960's through the mid-1980s's. the illustrate san francisco's cultural center and a place of

innovation that is recognized and the love throughout the world. one of the highlights is a series of three left tapestries. they are on view after being in storage for 20 years. these tapestries representing various gardens. from his years of living in san francisco. hydrangeas, chrysanthemums, and whilst dahlias in rich, deep shades as they make their way to the baggage area. they can access behind-the- scenes information and interviews with the artist through an audio to work. it features archival audio as well as interviews with living artists.

he can be accessed on site by dialing the telephone numbers located near the artwork or by visiting the commission's web site. the public art speaks volumes of san francisco as a world-class city with world-class art and culture. for more information, visit