city, and subsequently we are before you now with this exchange agreement that squares off the ownership of the private parcel and city parcel. it facilitates the city parcel through the redevelopment agency, a party to that agreement, to allow for the development of affordable housing in the future. so this is step one of a secondary step. the particulars of this exchange are 746 square feet going in one direction, 2278 square feet in the other direction. the benefit of that, a differential of approximately $69,637. those are funds owed to the city, providing more land than the seller is provided to us. therefore, it is not quite an even exchange, but the agreement calls for the payment to be made by the llc to the city. supervisor chu: thank you for

the presentation. this item does not have a budget analyst's report, given the no impact to the general fund. why don't we open this item up to public comment. is there anyone from the public that would like to comment on this item? item 12. seeing none, public comment is closed. colleagues, can we send this item forward with recommendations? without objection. thank you. colleagues, can we take a motion to rescind the vote on items nine, 10, and 11, so that supervisor kim can vote on these items? without objection. on items nine, 10, and 11, a motion to send these items out with recommendations. can we do that? thank you. item 13. >> item 13. resolution expressing the non- binding intent of the city and county of san francisco to comply with part 1.9 of the california health and safety code, recently added by assembly bill 27, for the purpose of providing the board of supervisors with up to an

additional month, until november 1, 2011, to consider adopting an ordinance allowing the city and county of san francisco to continue to undertake state-authorized redevelopment activities by agreeing to make ongoing annual payments for the benefit of other taxing entities, including the san francisco unified school district and city college of san francisco; and adopting findings that the resolution is not a project under the california environmental quality act. supervisor chu: thank you. for this item, we have ever presented it from the redevelopment agency. >> amy lee. i will make this brief because this is more of a procedural issue. we will be back before the board for a more substantive discussion about the actual mechanics of the payment. as you may or may not be aware, the state, in implementing ab 26, called for the dissolution

of the agency and temporary suspension of our activities. coupled with that was also ab 27, which permitted cities and counties to bring the agency's back to life, to continue to do redevelopment activities once their funds were paid to the education relief augmentation fund. that amount is under the community remit amount. that needs to be paid some time in the fall. there are two payments in january and in may. there are some procedural things in ab 27 that permits us to have additional time in coming up with how we are going to make this payment. so this resolution before you just permits the additional month's time for us to discuss with the mayor's office, as well as within our own program, to

figure out where the funds will come to make this agreement. after the board comes back from recess, we will come back before you to discuss the details of where this amount will come from. after august 1, we will have a more final definitive amount. right now, we just have an estimate, and we believe we could appeal this estimated amount. supervisor chu: thank you. it makes sense, given that we do go on recess. in terms of state actions, i know that some things are already passed and then with. in terms of uncertainties, you talk about the fact that the number we have to make in terms of the payment is still uncertain? >> yes, i believe the department of finance will be providing agencies with the number they believe is the amount due, in order to lift the suspension. we believe they did not calculate some of our debt obligations, so as a result,

would potentially reduce the amount we would have to pay. right now, we estimate the amount around $26 million. we think it might be slightly lower. once the department of finance gives us a number, we will have a short window to apply and provide that information. so this provides some clarity. supervisor chu: will they also be providing with the ongoing obligation will be? >> we believe so, yes. supervisor chu: from my perspective, we do not have a budget analyst's report on this item, because there is not get a specific plan associated with this resolution. so today, as we are acting on this resolution, we are not committing the city to anything just yet. that may come later on as we have time. just for the department's understanding -- and i know i

have a conversation with our budget analyst. i would really like to see even supporting this resolution going forward to understand how that payment will be pulled together. one of the outstanding items when we pass a budget was the kindest thing that we would have to deal with this redevelopment agency issue coming up. we do not have a pot of money set aside for this redevelopment payment, whatever that amount might be. i would be interested in seeing what that is and what the trade- offs are of how we are pulling this together. of course, the other thing i would like to understand, going forward, we currently have every development financing package. we also have an infrastructure financing district package. that packet we have approved on two occasions through this board. given that we will be making significant one time payment, and given we had an ongoing obligation, whatever that valley will be, i would be interested to see how they're redevelopment financing package now compares to an ifd.

in the past, the redevelopment financing package always succexceeded the ifd numbers, but i imagine we will be set a better off with redevelopment financing. but i would like to better understand those costs, how it looks. thank you. supervisor mirkarimi? supervisor mirkarimi: i am curious. what other jurisdictions in california, do you know, are looking to pay this new membership fee? >> i understand certain jurisdictions, like los angeles and oakland, the council has already adopted the intention. we are just adopting the extension of time, but they have already completed their adoption and final in tension. supervisor mirkarimi: i support this, if not everybody, the house majority does.

member should certainly has its privileges. this is a strange way to keep redevelopment alive, by requiring a $26 million fee, in essence, to keep this retained. what do we get in return? >> certainly, as to provided to mention, redevelopment financing compared to other -- as supervisor chiu mentioned, redevelopment financing compared to the others can save us money. our project areas are very robust. those are the benefits that i will try to lay out and make the comparison, but the tax increment financing is a bit more lucrative for the city and county. for everyone dollar of tax income that they provide to us, the net effect to the city and county is 57 cents on the dollar. so it also helps from a general fund perspective, rather than using the entire dollar to get an ifd financing going.

supervisor mirkarimi: does this also portend to potential agency changes its up? >> absolutely. there could be changes in the law of how we could look for the funding for this payment. there are different mechanism that we're looking to do to make reductions in our administrative staff, personnel, as well as economic development. we will also look to rely report. our existing funds in comparison with our debt obligation as well. there will be some changes. as you know, it is difficult right now. we still have some very active areas. mid market is a survey area, and we are still committed to those areas, but we have not done new hire for quite some time, and we do not anticipate too. so we have to reprogram some of our staff, as well as some of our priorities. this will be a big hit to our

housing projects. there will be some projects that we will have to delay because some of the money will have to come from housing. we could go into the details of those specific projects and impact of that. some of it will not be as devastating because of the timing of the financing from the developer's expect -- perspective they allow us to delay our funding of it. other times, it would be a significant hit. we have been under dress for the past seven months. during the past seven months, we have not been a bit too many of our housing activity that we would have been. as a result, it will really impact the future pipeline. the work we should have been doing in the past nine months, we are doing to prepare for the housing construction that would have been happening in january 2012. so we will see the bigger impact in the next coming year. i cannot say today that i cannot build housing that will start

september 1. a lot of the critical that work should have happened by now -- redevelopment work that should happen by now. supervisor mirkarimi: other cities and counties looking to retain their read development designation. does that mean that the others are going to go away? >> frankly, many do not have the funds. san francisco does not take all our titled tax increment. we only bonn for products that we think will be immediate. we do not maximize on all of our abilities to get bond proceeds for tax increment. there are some -- i understand san jose had made some poor decisions and made some debt obligations to the city.

there were some precarious market conditions that really excited their demise. smaller redevelopment agencies that do not operate like us would be entirely eliminated because they will not have the funds available to make this payment. supervisor chu: thank you, supervisor mirkarimi. just one comment and question. in terms of the longevity -- and this is a conversation that we can have when items comes back to us. if we make a one-time payment, it will be substantial. one thing to consider is, does that mean make it to keep the development agency in perpetuity? in three years, could the legislature come back and abolish redevelopment? that is something that we need to address in the next presentation. finally, a question on a lawsuit. i know there is a pending claim

by the state redevelopment agency. does that impact this proposal, going forward? >> a lawsuit that was found by the league of cities, counsel association is challenging the legality of ab27, 26. it does lend itself to some uncertainty. as of now, some of the bond counsel is hasn't to -- hesitant to opine on whether we should be able to issue bonds prior to the resolution of the lawsuit. that further suspends some of the uncertainty we face. we will know a little bit more later on, the bending on whether it gets heard in the supreme court or not, how fast that is accelerated. it really is making a huge

impact to our work and our ability to contract, and our existing contracts as well. given the additional time, we will have more certainty when a comeback in august and september, to have a more detailed discussion. we will also have better numbers for you. at some point, we may also have better tax rolls, assessed values. then we will know the status of the lawsuit, and if any changes will be made to the current bill. there was some speculation that there could be some cleanup language. but we hope to have more information on those two things, and will go into detail discussion. supervisor chu: thank you. this item does not have a budget analyst thought reports -- budget analyst's report on it. i know we open this item up to the public. is there anyone from the public that would like to comment on

this item? >> i just saw an item that looked just like you and walked just like you and i knew that it grew turn the city on its corner, call out your name i knew it felt the same and it grew and it grew fix it up, won't you and all the schools fix it up, " you take my redevelopment away blues all this item, everything to me fix it up, " you please fix it up, won't you you will take away my redevelopment blues.

supervisor chu: thank you very much. are there any other members of the public that wish to speak on this item? seeing none, public comment is closed. supervisor kim? supervisor kim: i am one of the co-sponsors of this resolution but i think it is important that we move forward with our intent. and our commitment to continuing our rid of all the projects in the city. there are many important projects that are important to many of our neighborhoods, including district 6. so i am very committed to this. it is an unfortunate situation that we find ourselves in, but i look forward to seeing how this moves forward with all the moving pieces. i do think it is important we move forward and keep redevelopment, here in san francisco. supervisor chu: thank you. colleagues, can we send this item forward to the full board

with recommendations? ok, that will be the case. do we have any other items before us? >> that completes the agenda. supervisor chu: thank you. i believe this is the last meeting until we come back from court recess. happy vacation to everybody. thank you. we are adjourned.

>> thanks, everybody, for coming today. we are excited about this opportunity to show you this beautiful store, talk about our investment in san francisco. we have some great guests here today. first of all, thank you for taking time out of your schedule. we know the demand on your schedule. i am the vice-president and general manager for northern california northern nevada for our consumer markets. the demand on your time is a lot like our customers. that is why we have spent the time and made investments in a store like this because we know the demand is on their time.

when they come into our store, they have earned a smart, friendly, fast service that we want to deliver. the technology that you will see today is changing and aerospace. so our customers expect us to be knowledgeable. at&t means a lot, our brand means a lot. we are going to help them enhance their life with all the products and services. friendly. that is self-explanatory. in this business, a smile goes a long way. we need to make sure we are friendly for our customers, and all the tourists coming to san francisco. and we have to be fast. we used to have a window seals over here. people would be sitting in them. it was too small of a store and we were not meeting their demands. we least the store next to us, which i will show you, which has some really neat things. before people used to have to drive out of town to get their

devices worked on, or mail them in. today, we have a device support center. they can come in, sit down, let some people work on their own, possibly exchange, and that up front, we have a go phone section. number one, this helps our prepaid customers, and it also does a lot for tourism. we get a lot of tourists who come here and we do not need them in the store. we want them out supporting the community. this gives them the chance to get a cell phone working so that they can do what they want to do. what they want to do is take pictures of this beautiful city and send them back to their friends and families. or they want to take pictures, whether it is text messages, letting people know -- what we want them to do is be proud of the city and see the great sights. this is a world-class city. we need to deliver world-class service to them.

i am telling you, it is so busy right now. we have to look at whether we need -- have enough space for them. we want them out in the city adding to the economy the investment we are making in the city, this is one store. we have another store down the street. we are doing the same thing on market street. that is a lot of our business customers. they have been in a spot -- small store that have not met our standards. there will be another flagship store similar to the spirit our investment in the city, $200 million in networking. the executive director will talk about that in a little bit. a lot going on in the city. we are proud of it. and people. walt disney said it best. you can dream, create, and build

the most wonderful place in the world, but it takes people to make that dream come true. we are hiring people and adding jobs into the city, and we have about 40 employees in the store. we are about to add others. there is a lot going on. we are thrilled about the investment we are making in the city. we are thrilled about the activity of our customers are enjoying with all of these great innovative devices. great, innovative devices. so, a lot going on. thank you for coming today. i want to introduce you to the regional president. i want to introduce ken mcneely. his team does wonderful things in the city. ken, i think he may have a guest. >> this is a primary example of at&t rethinking possible.

this is our flagship store in san francisco and it is one of the biggest stores at&t has in the nation. besides experience -- creating this wonderful experience for our customers, we are creating job opportunities. we are expanding from 24 employees to 44. we will be expanding another store down the street, again, creating this wonderful experience for our customers. this is the first store in the nation to combine our retail experience with the support center, a payment center, and our store for prepaid customers, which is one of the fastest growth areas we're seeing in the wireless market. we are also excited to showcase our new uverse product, which we are going to start building in

the city of san francisco, and we think the leadership of the board of supervisors for continuing to invest in the city and create jobs. we have talked a little bit about at&t's dedication to san francisco. we have a few public servants here. also years and years of dedicated service for the city as well. i am proud to have mayor ed lee with us today as well as the president of the board of supervisors david chiu. >> good morning, everyone. i am here to make sure the new and additional customers of at&t to what i think is really important -- they all call the giants'. at our at&t park. i want to thank ken and kerry

for inviting me your. i am excited about this flagship store. they are doing it the right way. we have so many companies looking at how they can meet their corporate philanthropy and responsibilities. at&t has done that correctly. they all worked very closely with our board. i congratulate david chiu and the board for their decisions. they recently allowed at&t to launch their uverse. many customers have said, i want an alternative to what is happening, and so they have cut that alternative. they will be helping the best they can and balancing that with neighborhood policies as well. i know at&t will do that. they have promised to do it. it will be a good product. i also want to thank at&t

because being such a good company to work with, they have done other things for our city. in addition to increasing employment here, offering service, making sure they were a global company, and global visitors here that's terry and ken mentioned. they are looking for things to partner up with us. one of the leading things it is a hand-held mobile phones for them in emergency services. all of those have been donated by at&t, because of their recognition of increasing community policing, working with these ambassadors to speak eight different languages in our neighborhoods, and helping them prevent crime, making sure the

community is safe. they have invested in that as well. that just reflects another good, local corporate philosophy and policy that is consistent with the values of the city. i want to think at&t for not only doing those types of things, putting your name on the greatest sports team that we have, making sure it is up there, but also being such a positive company to work with, and also making sure all the things we do our modern and we have a place to recycle funds, where there is better battery technology, all these deficiencies modern san franciscans have to use and -- effeciencies moderate san franciscans have to use and companies that do use. let's see what that uverse is all about as well.

>> president chiu? president chiu: welcome, everyone. san francisco is on the edge of entrepreneurship. i know that in recent years, we have had a lot of discussions about the role of technology in our city. i want to thank you for your commitment to work with the board, our neighborhood to make sure your technology fits in well with the rubric of what we are doing here. and 11 years ago, i started a tech company. part of the reason i came here this morning is i needed to see the latest and greatest of all the gadgets you have here, all the pieces of technology that ensure we are at the forefront of all urban areas in the united states, being on the cutting edge of technology and injuring what communications is about,

ensuring what digital technologies and cable are about, and making sure we are fully integrated in the community. i also want to echo merely -- mayor lee's as. you are a central part of making our neighborhood say. thank you for what you are doing. >> thank you, thank you president chiu. now we have a ribbon to cut. >> let's go outside. >> innovation. >> alright. >> are you ready? ready? [cheers and applause]