>> good morning, everyone. i am the director of the mayor's office of economic and workforce development. we are here to announce the 10- year lease for river bed at 680 folsom st.. 167,000 square foot lease. we have the mayor, ceo of river bed, the owner of the building,

as well as david from jll to talk of the significance of this to the city. >> thank you, good morning. welcome to the super bowl of innovation. while we did not enjoy the other super bowl, we have been working on hours. i have always referred to san francisco -- and we continue to do this -- as the innovation capital of the world. riverbed's decision to sign a 10-year lease and to work with the city to renovate a building here in south market, to make sure they are staying and growing here is a reflection of not only their interest in making sure they continue to find talent that exists in the city, but that the city, working with our state interests as well as our i.t. companies, continue to do everything we can to make

sure they feel comfortable and are creating jobs. every time you hear about a major company like river bed making a decision like this that is very significant, this is their headquarters, but it is their global headquarters. to suggest a 10-year lease is important. they have over 500 people working today. this additional new space than they have signed a 10-year lease for has 160,000 square feet that will allow riverbed to grow and potentially add over 650 additional jobs on top of their 500. i.t. work is growing in the city. certainly, we want it to grow. we have a lot of i.t. solutions to be had.

riverbed's technology is important, allows technologies to have i.t. management's -- companies to have a i.t. management from the date of filing to storage, all those wonderful things that technology people will have a much better way to explain and i do. i do suggest to you that this is, yet again, another example of how we are working with ceo's to make sure that we sit down and talk. it was literally last fall that we sat down. we knew they were looking, they knew they were growing. it was not going to be in some other place that we would lose them to. we had some great partners. we just came together very well and focused on what we could do to make sure they stayed here.

they know there is talent here. that is not a question. but are there other things that stabilized their ideas come interest to work here long term, and growing here, as we have had that philosophy. we want i.t. companies to stay here and grow. as a result, we are evolving our policies on a weekly basis to continue attracting companies like riverbed, making sure they feel comfortable. the end result is more people get employed. you will see numbers continue to go down in our unemployment rate. it is at 7.6%, but i am guessing that it will go down further, hopefully, with all the companies that are still talking to us about what we can do to help them. as we do, they are hiring left and right. it is exciting for me to join today with jerry, let him explain what it is they do, in a

very detailed way. again, it is the team, what the city does to make sure we stay as the innovation capital of the world. thank you very much for allowing me to announce this. we will have a chance to visit their bed soon. i think, -- river bed soon. i think, once they get their release started, they will move in in 2014, and then that goes until 2024. i hope to see them continue to grow. we will be down there cheering them on, understanding more about the involvement of their products. >> riverbed started in 2002 and it is exceedingly gratifying from where i stand to see a company of its size and stature in the technology world, make a decision to remain in san francisco and to grow its global

headquarters here. with that, i want to introduce the ceo of your bed. >> thank you. it is exciting for us -- we just announced this internally to our employees on friday. we sent around a photograph of the new building. when you work in technology in the bay area, you realize every day it is a war for talent. we are fighting to get the best and brightest. it is all about and look for property, and that comes from the minds of the people we attract. we found san francisco is a key location for attracting that power. my business partner and i started the company 10 years ago. we will be passing 1700 employees worldwide, over 500 in the city. that number will grow and grow. starting on our second decade in the city and hopefully for a long time to come. we are a little unusual for

technology companies in the city. many of them are web-based companies. we are a deep, in the strongest drink network technology company. we make heavy-duty equipment for the largest government and corporate networks. we are more like cisco foor othr companies like that. i had to have some discussions with my early investors while i was not in silicon valley. i am glad we had that conversation, made the investment. we had a good run here. we just finished a quarter of $200 million, $800 million run rate. we hope to pass $1 billion soon and we soldier forward as we move into our new headquarters in downtown san francisco. >> we would not be here celebrating a police announcement without a building. i encourage you all to look at

what 680 folsom street looks at today, juxtaposing it with these renderings. it is not only good for the economy, but for the urban landscape. i want to thank michael for his work to date for helping to transform this location. >> this is about the 20th project we have done in san francisco. it is visually challenged in its current state, but we think we have put together a great design. our partners and others have hired the best architects with som -- one of the best, sorry. we are pleased with the design. both jerry and his company had decided to go here, but it was also the mayor and city office hoping to keep technology companies here. it is a joint effort. after you take up the skin of the building, it has amazing

attribute that you have read about in our press release. 35,000 feet square plates. floor to floor slabs in the city, which is unusual. that tenants in this building will have some amazing space, some amazing views, and our r ehab will be as good as anyone. we are happy to be involved with the city. thank you very much. >> it really did take a team of folks to bring this deal together. we had great assistance from david from lasalle in helping to close this deal for the city and riverbed. >> good morning, everyone. it was a real honor to represent their best technology in this transaction, a 14-month process. i want to thank and congratulate

jerry and his real estate team for the pro-active way they have managed their headquarters, getting a head start. mike and his solid team of putting this building together. mayor lee and jennifer for the continued great work they are doing in helping us represent some of the leading technology companies, here in san francisco. it is a real pleasure to be here. thank you very much. >> we are going to break and then the mayor will take questions. not at the podium.

>> call to order of the san francisco county transportation authority. i am scott wiener, the vice chair. power chair is out sick today. -- our chair is out sick today.

>> we have a quorum. >> thank you. >> item two, reprogram 4.8 million in the congestion management agency block grant funds from the department of public works at the st. streetscape project to the cesar chavez streetscape project. this is an action item. >> at our last meeting, this item did come before us. there was some questions and further discussions that needed to happen, so we continue the item and scheduled this to consider this item. i will ask the director if they would like to make any

introductory remarks. >> first of all, i want to thank my colleagues for this special meeting. i think that we often spend our lives sitting in meeting spent -- sitting in meetings. this was put on the emergency calendar and it did not go through budget or the appropriate committee as most of our items usually do. i know that i took up quite a bit of time with some comments and questions about a loss of funding. i do appreciate that. the mta has sat down and gone over the communication breakdowns that occurred over the past year and a half around the process, unmannearound the

outreach. i appreciate the memo that is come to us. i know that we have a few members of the public that are here today to speak on this issue. >> thank you very much. >> good morning. i am the executive director. the item that is before you is essentially the same memorandum that you saw last tuesday and i appreciate the remarks i do have a memo written by the department's head. the recommendation does not change. we did benefit up from the

discussion of a purely. we are working with the sfmta on an application for funding so that they can proceed with the level of planning in and out reach for this project that is clearly needed. they will have the additional allocation. this will not be preventing

them. what we should have it is a very welcome scope of work with a very reliable process to this project and with a solid amount of community support. to make sure the public park position province is also would not have another surprise. i really do not have any doubts that we will be able at the end of the process to find the appropriate amount of funding for the project on second street, theáúa with the community. i am concerned, at this point, the estimate of the potential cost of the project is in a wide

range, included in the memo, from 4.5 million to $8 million. i know we will evolve from that to a much more organized and reliable estimate. that is my main focus today, that we get to that point so that when the items come back to you for an action on an allocation of funding for construction, you will have a reliable no. and you will know what trade-offs you are making between the money for that project and other priorities, both in commissioner kim's district and the rest of the city. that is the appropriate process. we will do everything we can to get to that point quickly. we know from the department heads, that process is likely to take one year. we will be working with them to see if we can make that shorter. we are cognizant of the challenge of working with the

community there. with that, and this item is the only action item we have on the agenda today. i know there are representatives from the dpw and mta available to answer questions. commisioner wiener: thank you, director. colleagues, any comments or questions relating to item 2? seeing none, do dpw or mta wish to comment? commissioner kim: i would like them to prison briefly on the memo. please go over the projected time on from here on out for the corridor and the funds committed. those were the two requests i made at last week's meeting. i understand the need to reprogram these funds because otherwise we will lose the $4.8 million but one of my requests was to get a firm time line now,

going forward, knowing that we have lost these funds, how we will make up for it, and where they will come from. i also know how often times funds and broken down proportionally between districts. i want to be careful that this project should not impede on prop k and st. funds that i would normally allocated to other projects. that was when i was hoping to get a presentation on. i know members of the public want to speak as well. commisioner wiener: thank you. i will bring but the mta and dpw to respond. >> you received the memo that came to the dpw, at risk in. on the second hint of the memo, it lays out our initial scope and budget with a recommended sources of funding to proceed with the project. overall -- and i admit, it is a conservative schedule. we hope it can go faster but do

not want to commit to something that we cannot promise. we are working on a 60% on certain tape. if we do not know the exact answer, we are going to prepare ourselves at that point. or the planning phase, we will be moving for prop k allocation requests quickly to fund the planning stage. dpw will be contributing general fund dollars, i believe, and other fund within the budget to fully fund that. i do believe, over the course of the project, as you get into the detail of the design and construction costs, those will be changed and modified. the certainty and range has to do with the level of the project going forward out of the cma block grant, which i think we would agree have limited bicycle improvements. that was but was in the plan at the time and technology available to provide improvements. there are new technologies and improvements that people would

like to include in projects. it reflects the range of the possible improvements that can be included. the overall cma block grant program within all of your districts had a breakdown of funding by streetscape, repaving. the second street project also receive allocations, portions of each of those findings. on the streetscapes side, there was a sense we could add more if the funding was available. the estimates reflect the full streetscape improvements, based in what we expect to hear once we're done with the community meetings. that gets us to 60% where people agree. included different types of improvements, we can move forward with that. with regard to potential funding sources, we have listed a couple. a lot of them are within the authority of this commission to program. one of the proposition aa, the

vehicle license fee past year that would be eligible to fund phases of this. specifically, the detailed design phase. there is essentially $5 million a year. detailed design is eligible for that. both dpw and mta our potential project sponsors. that is something that we could go to. when it comes to construction, there is the one bay area grant. this project would be an eligible project with its scope. then there is the streetscape component of the proposition b bond, and repaving component. currently, we are working with dpw and the planning department to see how the $50 million of streetscape improvements should be used. we are drafting something to see how that should be used tear there are no particular product of those funds have been intended for yet, but we are continuing to refine the

criteria by which we will allocate and propose how those funds should be used. with regard to paving, second street is on the schedule as far as i know. it is a priority. what we want to do, per your direction, move forward with complete street projects, and then doing that mimic common for a repaving project. that is a quick synopsis. >commissioner kim: when the expect community outreach to begin? >> we have a limited amount of prop k allocations. i am happy to report our staff will be beginning now. we have a little bit of funding set aside to get us through the next couple of weeks until the next prop k allocation has been approved by the commission. commissioner kim: if you could send as a schedule of meeting dates and locations, we can help do not reach for those meetings as well. >> absolutely. commisioner wiener: did you have any comments or questions?

commissioner kim: i will after public comment. commisioner wiener: we will open this up to public comment down. if there is any member of the public that might to comment on this item, please line up at the lectern. >> good morning, commissioners. you heard my remarks was weak. i will keep these brief. we are obviously interested in moving second straight forward for everyone's interests, bicycles, pedestrian, transit, and otherwise. i look forward to reviewing the memo that mta and public works has put together, to see the details on how this will move forward. is good to know there is funding at hand, a plan to go back up to find more funding for planning. prop aa, the one bay area grant -- of course, the one bay area grant we are expecting this spring is basically the second cycle of the first cycle that

put money on this project and we are now moving over to other projects. i think we all look forward to doing a better job this time with that cma block grant. prop b, obviously something should be looking at as a source of funding. that takes into the point that i've already made, and let me reiterate. the bison coalition is strong believers in complete street as a philosophy. the outcomes are beautiful, but how you get there is quite difficult, because it is about cooperation and communication and public agencies working together with public. not very sexy, fun, but yet, about that, things do not turn out well. as we look at the prop b streetscape money, we are keen to get the agencies together with the public to talk about this, so we put together a wonderful projects that benefit everyone interests and come in on time.

projects the we're all very proud of. let us not only be commended execute well on communicating and collaborating, and we will have a beautiful second street, and we will all be very proud of it. thank you. commisioner wiener: thank you. next speaker. >> good morning. my name is catherine webster. i am a resident at the corner of second and kenya. i am also the vice-president of the south beach business association. i am thrilled to hear the funding has been allocated and we just want to convey how important the second street plan is to us, how it can help improve the safety of pedestrians and congestion, in particular, as well as repaving,

which is much needed. it is extremely important to us. we want to work closely with the mta and dpw to ensure the project does get done in a timely manner. again, this is extremely important to us. we look forward -- i know we still have to work through some of the bicycle plans, but we look forward to working with everybody on that, all of the agencies and the bike coalition. please know that we look forward to having you come to our association and work closely with you to make sure that this does get done in a timely manner. commisioner wiener: thank you. next speaker. >> my name is ramon smith. i am the district 66

representative. i am here to say it is good news today for me to go back and tell organizations and advocates i work with that funds will be made available for this much needed project on second street. it is with discipline that it is not the state for it can move forward, but it is very refreshing and assuring to hear you say today that the product will be developed and will move forward. i urge you, as supervisor kim will tell you, please include my name when you start doing the out reach. i will be happy to do what i can to make sure the message is out and people are present to make their concerns known. thank you and good luck with the project. the community at large will be watching closely. commisioner wiener: thank you. next speaker. >> walk san francisco. we have a number of important product before us. cesar chavez improvement project. that is something thec