>> the meeting will come to order. this is the monday, october 29th, 2012 meeting of the land use and economic development committee of the san francisco board of supervisors. i feel a lot of giants fever still in the air here. over here with the giants colors on. we have three items on the agenda today, but let me first say that our clerk is ms. andrea ausbery. i'm the chair of the committee,

eric mar. to my right is vice-chair supervisor malia cohen. we're expecting supervisor scott wiener any moment. could you please give us our announcements? >> yes. please make sure the sounds on all cell phones, electronic devices, speaker cards and comies of documents are included as part of the file to submit to the clerk. items on the november 6 board agenda unless otherwise stated. >> thank you. i'd like to also thank sfgtv for televising us today, especially our staff greg burk and john ross. we have three items on the agenda today. ms. ausbery please call item number 1. >> item number 1, administrative code - port prepayment of jobs-housing linkage program obligations, ordinance amending the san francisco administrative code, by adding section 61.12, to authorize pre-payment of jobs-housing linkage program obligations for developments on certain port lands; and adopting environmental findings. >> and from supervisor jane kim's office it is giants colors as well, mattias aremo. >> good afternoon.

i'm here because the supervisor could not be here with us, but our office has been working with the port on this legislation to create a mechanism that would allow the port and the mayor's office of housing to work collaboratively to develop affordable housing on port property for the public trust has been listed. this orbtionv would authorize the port to enter into an m-o-u, memorandum of understanding, providing for the port to receive credits for the value of port below market rate leases to mo and it's on a fair market value. the port would authorize this to use this credit to prepay job housing linkage program obligation for future and private development on portland and by enacting this ordinance the city would create an opportunity to see affordable housing development on the waterfront which is something that we've been working really hard on, and give the port at the same time the flexibility in structuring job housing

linkage via obligation. * i wanted to also say very quickly that the approval of any project that in this legislation would not be changed by this legislation. so, we have the mayor's office of housing and the port here to present. [inaudible]. >> thank you. >> good afternoon, supervisor, [speaker not understood] from the mayor's office of housing. we'll provide a brief powerpoint presentation to go along with our presentation. i will be speaking at the beginning of the presentation and [speaker not understood] from the court will continue and i will close. so, powerpoint. >> so, can we get -- there it goes. >> great, thank you.

thank you. there we go. so, before you today is a amendment to the jobs housing linkage ordinance, a program that we actually administer through the mayor's office of housing. so, this is a brief overview of what we will be presenting. i'll provide a brief overview of the ordinance itself. the proposed amendment to the ordinance, patricia will go over the pier 70 development challenges for which the port hopes to apply this particular ordinance change, some of the feasibility and appraisal issues as well as some state legislation that went along with this. and then i will close with next steps and public outreach. so, the jobs housing linkage program essentially imposes fees on the development of most commercial development within san francisco in order to meet the demand for affordable housing produced by the new employment that is brought forth because of the new development.

so, fees are imposed on things like research and development, retail, large big box retail as well as other commercial development. and then the fees are administered by our office when they're put into the city's affordable housing fund along with things like the inclusionary housing fees. and then we use those funds through the mayor's office of housing to support the construction of new affordable housing units. the actual amendment before you today would authorize mo and the port to actually enter into an alternative method to meet those particular obligations on port property. as said we would be entering into an m-o-u specifically. this ordinance change would be consistent with state law that was authorized the port land for affordable housing. that would be in exchange for the fees that they would be otherwise paying on port property. and it would be essentially a credit to the fees that would

be paid in equivalencies. and the land that would be suitable for affordable housing, we would be provided to us at below market rates so that we would be able to use it, then, for future development. and then i'll turn it next to trisha. >> thank you. >> good afternoon, supervisors, trisha, port staff accompanied by the special projects manager. i'd like to just start by thanking supervisor kim for her leadership on this item and i'd like to also thank theresa with the mayor's office of housing for their assistance as well. so, as port staff have articulated through its ten-year capital plan which has been forwarded to the board of supervisors, there are some unique characteristics of port property that drive up the cost of development. we are typically building on filled land which is not seismically based so you have

to drive piles to support structures. we have a lot of historic resources that are expensive to save and oftentimes we have environmental remediation challenges with port property, which we are addressing with our regulatory partners. in 1997 the port completed a seven-year planning process to look at potential uses of port property with broad consensus of the waterfront land use plan. and it provided for a range of potential uses at different sites and there are some sites that are no longer needed for maritime purposes. often these are field lots that are on the west side of the embarcadaro and there we conat thevtion place uses like residential office, hotels, et cetera. in 2007 the port worked with state senator carol migden to terminate the trust use restrictions on some of the

seawall lots on south of market street. in order to get to residential and office types of uses we have to terminate the trust use restrictions that apply in state law. and the legislature did that. they found the seawall lots were no longer needed for water access. last year we worked with assemblyman tom ammiano and ab 26 49 signed into law by the governor december 29th this year. it found seawall lot [speaker not understood] north of market street is no longer needed for trust purposes and the legislation allowed the city to contemplate affordable housing at this site as part of an effort that would help to offset jobs housing, linkage fees owed after 70. that legislation also contemplates similar flexibility at seawall lot 37, which is in mission bay.

this slide shows at 815 parcel. port staff is suggesting that seawall 2-21 is part of [speaker not understood] by ab 629 might be an appropriate site for affordable housing, but that would be subject to review under ceqa and further outreach to the surrounding neighborhood. >> ms. pasad, which street is that parcel on? >> it's the -- bounded by broadway and [speaker not understood], correct? >> thank you. >> sorry, it is the map is a little small. which would be subject to review under ceqa and further outreach to the surrounding neighborhood. it's about a block and a half off of the embarcadaro. it's almost an acre in size. and is a very developable parcel that exists in the northeast water froth historic district. article 10 of the planning code

established the northeast waterfront historic water district and describes types of architectural streitv and building styles that is appropriate for that local historic district. and we hope to work with the mayor's office of housing to see if this site is indeed appropriate for affordable housing. >> thank you. >> lastly, the next steps we'll be undertaking this should resolution pass, we would be returning to the northeast waterfront advisory group with the port, of course, ab 26 49, and also the action on this particular legislation. the port and our office would be continuing to look at the feasibility and appraisal discussions on potential sites. one of them could be [inaudible] seual lot 3221. we would be available for updating historic preservation commission on requirements related to the historic district should we pursue lots 3221 i. of course we would be returning to the port commission and the

board on any updates on further action. that concludes our presentation. >> thank you. and thanks ultimately from mayor's office of housing, our director for being here, too, and brad benson and ms. prasad from the port. so, colleagues, i see no cards on this item, but let's open this up for public comment. good afternoon, members of the board. peter cohan, council committee housing organizations. we were asked to look at this ordinance several months back and give significant feedback to the mayor's office of housing and the port, much of which -- almost all of which was incorporated in some shape or form. but i want to just put a caveat in here. the jobs housing linkage program has been a very, very critical part of our affordable housing funding and we want to keep it that way. this is an unusual situation the port is facing and these

particular sites, but to reiterate the importance, the jobs housing linkage is in no respect something to be shift today a land dedication option. * shifted to this is discussed quite a bit in inclusionary housing. i think supervisor wiener knows we are finding out all the difficulties of being able to compare an apple and an orange in terms of land dedication to the typical mechanisms of either in-lieu fees or units. so, we're supportive of this ordinance to the extent that it lives within the universe of circumstances the port is facing. the things that we were particularly concentrating on were that there was some sort of site feasibility analysis that was very strongly done by mayor's office of housing and that the cost for those were actually built into the crediting. there is due diligence of various types, including ceqa analysis needs to be done to make sure a site is acceptable. and then also what the

appraised value s. so, that was something that was woven in very carefully. secondly, whatever deal was worked out between the agencies for land transfer and that cost crediting be brought back to the board for ratification so we have a degree of transparency here for us and everyone else. but otherwise we're supportive. thank you. * is >> thank you, mr. cohen. is there anyone else in the public that would like to speak on this item? seeing none, public comment is closed. so, colleagues, can we move this item forward with a positive recommendation without objection? thank you. thank you. ms. ausbury, please call hearing number 2. >> hearing to receive update from the office of economic and work force development, mayor's office of housing, and the department of public works on the progress of the octavia boulevard project, central freeway ancillary projects and the disposition of central freeway excess parcels. >> thank you. supervisor olague is the sponsor of this item. i'm not sure if one of her staff is here.

perhaps we can start with the presentation from department. and i see ken rich up here from the office of economic and work force development. >> yes, pardon me while we try to get the powerpoint up here. >> colleagues, i know that we have a number of powerpoints that are in front of us and different materials that were presented to us already. and some maps as well that are done. >> okay, sorry about that. must be a new version of powerpoint. good afternoon, supervisors. i'm ken rich with the office of economic and work force development, and we're here to give you a status report on our ongoing octavia boulevard program. as we all know, not long ago the central freeway, a double decker freeway structure, extended across market street

headed north, ending at turk street. the central [speaker not understood] was badly damaged in the earthquake as we all know ands was replaced. eventually the elevated structure was removed and replaced by octavia boulevard. as part that owe of that process, 22 parcels were transferred to the city which was expected to sell for development using the funds in return for a number of uses. and here you see the requirements of the agreement with caltrans, which included a number of obligations. the the city would undertake in exchange for ownership of these 22 parcels. those were construction of octavia boulevard and the associated creation and implementation of a traffic management plan as well as the rehabilitation of portions of van ness avenue which were to be adopted as highway 101. in addition, as part of the central freeway process to mitigate the environmental impact of the boulevard project, a group of what we call ancillary projects were prioritized.

these projects are focused in the area of south of market street where the raised freeway structure remains. they include first a suite of streetscape improvements along pearl street, elgin street, stevenson street, and jessie street. i'm happy to say the construction is now virtually complete on these. in addition, the central freeway cac prioritized two uses on caltrans owned parcels underneath the freeway near valencia and duboce. these were a skid board park and dog run facility. i'm also happy to be able to say that after lengthy discussions with caltrans who again is the owner of these parcels, we have reached agreement on terms so long term leases of these parcels and the board will be asked to approve these leases in the next few months so that dpw can begin construction on the skate park and the dog park early next year. and finally, the central freeway cac prioritized an active use at the portion of mccoppin street which had been dead ended due to the

reconstruction of the raised freeway structure. this area known as the mccoppin hub is being designed as an active plaza open space. construction is also expected to begin next year. >> mr. rich, that's to the south of market street, that's where the mccoppin hub is? >> that's right, south to mccoppin south where market hits valencia street. that's a short report on the 22 parcels we received from caltrans. you should have a map in front of you to help you refer to these if you're not clear on the presentation. so, in 2002, soon after the parcels had been transferred from caltrans to the city, the city entered into a transfer agreement with the redevelopment agency and this agreement the agency purchased two parcels, parcels a and c. a key tenant of this transfer agreement was a so-called

true-up division which said that any funds left over after the city fulfilled its obligation under the agreement with caltrans would be given back to the redevelopment agency to adjustor true up their purchase price. this was a foundational premise on which the transfer agreement was based. the redevelopment agency came forward with funds from the low mod housing fund which were instrumental in the construction of octavia boulevard with the understanding that the purchase price would be adjusted in the future. in addition, the transfer agreement included an option to purchase an additional five parcels, parcels g, k, o, q, and u should they so choose. and, in fact, the agency did exercise its option to produce an additional five parcels -- excuse me, to purchase an additional five parcels at a total cost of $12 million. the tota