the local hiring for source components do not kick in until 5000 square feet of commercial space is activated. i wrote that law. that is what intersects with the planning code. what i am trying to get a handle on is what is under the 5000 square feet. is it all commercial developments? >> we comply with the threshold. >>supervisor mirkarimi: being tt there is a healthy orbit of development, you should anticipate the question. supervisor chu: thank you.

while we were on the local hired discussion, were there any changes to the higher rank as we switched financing from development? a kind of obligation on local hire or not. >> to be clearer, a local hire in the city will further improvements being made by the developer as they are not direct between the city and the contractor. if we hire a contractor to build a new road, in this case the developer is actually fronting the funds and may not be reimbursed completely.

may not be reimbursed for 30 years after they make those improvements. in the agreements, a local hire would not apply. supervisor chu: i do not know where this is not considered public works. you would get a policy goal, but take the shipyard. those were implying treasure island? >> we had not formulated by our jobs at the program. supervisor chu: it would be good to know if there was a comparison between training and

local hiring policies. thank you. supervisor mirkarimi? supervisor mirkarimi: still on the thread of the position of hiring local hiring, the construction side of the project will do its best to hone in on the practice of local hiring towards the goals we have laid out legislatively. as suggested, redevelopment is not within the transition, it would have to be a parallel agreement to except those particular numbers. i am not quite sure that i heard the answer, but wallet -- what are those numbers?

>> our goals are not the mandate in a local hire ordinance. under the construction side, whether it is horizontal construction or vertical construction, we look to our jobs program, which requires 50% good-faith hiring of san francisco residents. so, those other goals and they are written as goals. we do not consider them to be public works, so we do not comply with local hire as written concurrently between the city and contractors building public works. supervisor mirkarimi: to be clear, your categorizing this under the source? >> correct. supervisor mirkarimi: in the

post-development phase, you are saying that in accordance with our own laws, that applies? >> correct. the permanent retail jobs would not be subject to local hiring ordnances as written now. we are not subject to them in the local hire in the first source requirements. supervisor mirkarimi: it is sort of an extraordinary project, the geography and to itself, is their commitment for island residents themselves? >> we expect much of the thai population to participate in the

goal also. the relationship between tie die as a housing provider and broker trainer. a more vigorous pipeline -- supervisor mirkarimi: a more vigorous pipeline for those that live on the island between those of lower income to come into that work force, i did not see it, which is why i am asking these questions. >> both of those are in here. tie dye has a relationship with the island, providing jobs and opportunities to participate with the caterer. i am sure that there are many

events on the island. supervisor mirkarimi: thank you. supervisor chu: thank you very much. why not go back to the report? >> the next category was the impact that new residents would have on supporting retail on the island and in the city of san francisco. the housing units will raise the city's population by 2.4%, a population of about 805,000. those households are projected to spend approximately $220 million per year in taxable purchases. including those on treasure island.

the magnitude of what we are adding to the city's housing supply, increasing by 2.5% be occupied housing units, which will have the impact of reducing some of the pent-up demand for housing, exerting moderate downward pressure, which was estimated at 2% upon project completion. the effect of this reduce real- estate occupancy costs will be to increase economic outlook. these cost savings, shifted to other sectors of the economy, the project increase in the city's housing supply and the impact on values is projected to

results in direct and indirect jobs. that is through the 2015 projection. . supervisor chusupervisor kim: he to that number? i know we have had i love -- i know that we have had a blood of development, how did you come to that number to reduce city- wide housing prices over the long term? >> that was calculated by looking at the elasticity of demand. as well as the impact of a change in quantity supplied pricing.

it is a mathematical formula whereby a look at the increase in the city's inventory of 2.5%. a factor to that, about 2% in value upon full completion in 2013, 2032. supervisor kim: have we seen that with increased housing supply? >> there are a lot of factors. we have been in a long decline for the past couple of years, but that seems to be leveling out. stabilizing. this does not take factors such as the fluctuations we have seen in the short term into account.

it is a way to estimate the impact, going from 235,000 units to 230,000 units, implied by the percentage amount and the econometric formula. supervisor kim: i just wonder if san francisco is in a unique position where demand continues to come even from outside the city. without necessarily decrease in housing prices here. >> we are not saying that this will lead to reductions in housing prices, but what we saw during the housing bubble in san francisco, despite the fact that we were producing a huge amount of housing by our standards, it was going up by 10% per year.

it did not mean that the laws of supply and demand had been suspended, but we are basically bending the curve by 2% rather than driving prices down. supervisor kim: so, if city prices continue to rise, we will see a decrease from that decrease. let's again, that 2% savings is a positive in terms of the economic impact. that value is funneled into other sectors. one of the final factor is that we look that was determining how the development would affect the property tax base. upon completion in 2030 or so,

we projected a $25 billion increase in assessed value, which explains the units that would not be taxable. i have included here a blurb about property taxes and how they are allocated city-wide. we get about 65% of the 1% base tax rate with the balance going to schools and other local jurisdictions under the proposed financing plan. 57% of the space would be allocated to the eye of the with 10% used for affordable housing. the remainder would be to support the issue of bonds used instead of tax commitments and

redevelopment tax increases. this means a% allocated to city funds, which the comptroller would determine, that allocation of 8%, how much to this fund and how much to city funds. finally, this is a summary of the major economic impacts that i went over, including one time impacts, presented as an annual average. 1100 direct or indirect employment opportunities. 2800 attributed to the non- residential component of the island. and then the increase in housing supply, price impacts in the city. about 2200 jobs until we have

about 5300 jobs on average. $2.4 billion in economic output during the projection for 2015. that concludes my presentation, if there are any other questions. supervisor chu: in terms of cash flow to the city of the taxes that, in, this is relevant considering that we are considering the potential diversion in what it might look like. can you tell me about the tax revenue that we are expecting over time? >> i have that. >> you are talking about

property-tax revenue in the general fund? supervisor mirkarimisupervisor y tax revenue. the buildup at 8% is that about $350,000 per year. >> about $3.8 million at bill dealt. -- billed out. that number would be upwards of $25 billion in property taxes. 65 cents would be $25 million, annually. but the 8% is about $3.3 million.

supervisor chu: let's go to the budget analysts report. if i that as members of the public, if you have cell phones, please turn them off. what we have prepared a detailed report for the city's commission. the summary begins on page 60. we will point out just a few items. we have been advised that the general fund, on page 17 we have pointed out that because of recent changes in financing from state redevelopment financing it has resulted in $130 million less revenue for this project.

the revenue authority has proposed market rate housing units to offset the reduction. we also point out under the files, according to the analysis from the economic planning systems, the treasure island first 20 years are projected to generate $270 million in gross general fund revenues in cost. a net estimated general fund revenue totaled of approximately $80 million. and then, under file 110289, subsidies of at least $12,750,000 would go to tie dye to develop a low rate market for

parcels in the treasure island community development. under 110290, committing funds with interest and additional consideration for conveyance of the property. over all these are four files that have fiscal impact out of 11 before the board. the other seven did not have direct fiscal impact and we consider these to be policy members for the supervisors. supervisor chu: without questions at this moment, let's open this up for public comment. i know that i have a number of speaker cards. [reads cards] please come up and

line up in the center aisle if you have heard your name. you can use that microphone. let's we are a member of tied died -- >> we are a member of tied died. it has been a home for a number of veterans in transitional housing. it has been a lifesaver. i want to say that what has been important to us has been leveraging the government program. we have seen the veterans health division providing case management.

as they have already done in the program. providing funds for a special safety considerations. but that virtue you invite these federal partners with a campaign to eliminate homeless veterans, making themselves more available with more resources. not just veterans affairs, but section 8, the department has made more work force investment dollars available. these will eventually partner and bring these to bear. no one is perfect, but there are so many exciting opportunities it is incredible. i want to mention that something like to point million veterans have served, and they have

health issues. they could benefit dramatically by housing and development and jobs that were created. obviously this is a very veteran fed -- veteran from the journey begin a journey. >> -- journey. >> i have a home now. the council there are great people.

now i have my health of that -- together and i have a place to stay. thanks to supervisor chu[uninte] thank you. >> thank you for giving me the opportunity to speak with you, supervisors. i got involved in treasure island 11 years ago. in 2003 and joined the board of tied died. in 2005, the citizens abies report. that is only 11 years. i am here to obviously state my support and talk the executive director of title i, who has been involved since they won.

for those that do that note, we are the treasure island homeless development initiative. community living partnership, swords to plowshares, we are here to support moving the project forward. turning the project into a reality, including 435 units for homeless people. 25% of the jobs are targeted for homeless sentences in. tie dyeing is in full support of the project as it is providing real opportunity from the ground

up for a new life for current and future residents. we urge your support. thank you for this opportunity. >> [unintelligible] serving low-income people throughout the city. while disappointed, we do support the project and the proposal to pursue inflation. having been on the island since 1997, we have faced multiple barriers to employment.

individuals in this program typically include the training and placing with permanent jobs resulting in job brokerage programs and contracting opportunities. community-based organizations and the u.s. coast guard, making sure that future opportunities will be there on the island preventing local barriers to employment. thank you. >> i just want to reiterate what was just said. we are in strong support of the treasure island project because

of a comprehensive housing job opportunities san franciscans. as well as contract and opportunities that steve just mentioned for nonprofit social ventures. we urge you to move this project forward. thank you. >> i stand before you as a success story through walden house. then i joined the to live janitorial program, which helped me with my tools & training programs. by entering into joint belly catering. through my experiences i have also had the opportunities to place my daughter in daycare, one of the best in san francisco.

i am grateful that my daughter is there. i wanted to say that what the island has provided for me by a redevelopment has been like changing. i can only imagine what the island will do for me. thank you for hearing me. >> dave alexander asked me to but in the head of him. rubicon strongly favors the development of treasure island and the treasure island initiative. we have been offering landscaping services to treasure island since 1992. creating long-term jobs, we

focus on individuals with similar barriers. most of them that come to us have considerable difficulty elsewhere. the recent issues that have come to us, health, stamina, mental illness under developmental disabilities, coping skills and social skills, prior criminal convictions, housing issues, ongoing legal issues, in substance abuse. if that helps me to find a steady support of environment for complete medical and other benefits and job training, specifically in landscaping responsibilities. thank you very much.