will answer approximately 2 to 3-year entitlement phase on the project. and that is where we will do the sequa analysis and really define the infrastructure and urban design concepts that jack has presented today. along the way, we have been lucky enough to get the project related legislation prop d by supervisor dee was unique. and we have been lucky with the assembly member (inaudible) help to get the important state legislation to facility the trust cap swapp and to gain extra state tax revenue to fund the infrastructure at the site. as we think about pier 70 today and really postmaster plan we

have decided the site into different quadrants that the ship repair is shown in the purple and it is a the primary goal is to retain that ship repair activity at this sight and we have made major investments at the site and going counter clockwise the cove area in the northwest corner of the site is where david pray and other port staff are trying to finish the design of the park with $20 million approved by voters. orton development is working hard to negotiate with port staff over the historic core that those very significant buildings along 20th street. and with the hopes of a lease late in 2013 or early 2014. the hill area that was shown in the yellow is port owned.

and that was playing a role in the transaction that area in the white is owned by pgand e and we have designs on that property which i will talk a little bit about and then the water front site, it is approximately 28 acres and contains buildings that are plans of the rehabilitation as part of the historic district and that will be the focus of our discussion today. there you unique characteristics, higher construction costs than we are seeing at sea wall lot 337. and also more of a pioneering location. it is harder to imagine development happening at the site today. and it is going to take mission bay building out a little bit more, and dog patch becoming a little bit more mature, as a development site. and so we think that there are higher market risks and markets

that are not quite as yesterday to move into pier 70 and infrastructure risks and as you look at the water front site itself in the context of pier 70, this is an overlay of the entire 70 acre lot where the park concepts are overlayed in the purple are those port and pg&e parcels they are right along illinois street and if you think about the way that the market might want to go at pier 70, those are likely first and the water front site is more removed. for the city plans to build the area in yellow first, that is their phase one. followed quickly by the residential in phase two. and finishing up with office and residential in phases three and four along with the district parking.

this innovation retail space that jack talked about at 207,000 square feet and open space and open space including the grant 4.5 acre water front park. and so, this summarizes where the land uses are planned for the site and what you see in the blue are the office uses and coming late in the project which is shown in red is the innovation and retail/maker space including a couple of the historic buildings what is shown in yellow is where the residential will be located primarily low rise in the center of the project and the gray or the parking facilities.

we went through about a four-month process with the city planning the office of economic and workforce development and transportation agency and port staff along with forest city to look at the land use concept and we did conclude that the higher infrastructure cost did warrant the ad dish of more density and the desire for an active water front neighborhood, which was not contemplated during the port process and the city staff are very excited about the place making concepts that forest city has put forward and doublely excited because they have shown success at 5 m, at really being able to achieve that kind of place making. and the project does retain the commercial focus that was the focus of the preferred master plan. and we think that it will make

for a great job center at pier 70. >> so, these are the location of the historic rehab projects it is building, 2, 12, 21. and also, the place making right along the open spaces in the water front site and over the slip wings. and this gives you a sense about the project massing, which is first what they actually did a massing analysis looking at how you can achieve the total development footprint assuming the mass thating is typical in mission bay and will largely cover the water front site and will not leave room for the low rise in the center and the open space and the quantities that we are hoping to achieve at the site. >> this gives you some reference points for the heights that are being examined. the larger buildings on the site, the three that you see here, are planned to be up to

230 feet tall. this gives you a reference point to what 230 feet mean and we have got height already. at the water front site in terms of ships in the drai dock. the cranes that occupy pier 80 and that the stack is 30 feet tall and we think that there is already height at the site and it fits in with the scale of the surrounding area. and forest city has been clear and we welcome the fact that we have not landed on exactly where the height is going to be located on the site. there is a lot of discussion with the historic preservation planners and other planning staff about the right locations for height and what this shows in green, are sites where the city agreed would be good locations for height at the water front site. what you see in yellow, are

sites that may be appropriate for height and what you see in red are sites that likely not appropriate for height. and we will be going through the sequa process and really examining the shadow effects of height and the impacts on the historic resources and the open space to determine the best locations for the taller buildings at the site. jack already walked through the open space concept for the site, this idea of different rooms and different experiences in the open space. i will point out that on the district parking garages there is planned open space on those garages that the plan for active recreation serving the neighborhood and the additional residential demands, so we think that is a very important component of the open space decision. that city planning process, that four-month process that we went through, led to looking at a number of issues in the

entitlement phase of the project particularly the historic buildings and there is a plan historic district nomination for the entirety of pier 70 and really looking at circulation through the site and the kind of transit that mta can deliver. open spaces that i have mentioned and massing and height issues as well and so we will continue to apprise the commission about the issues during the entitlement phase. >> now we are moving to the financial analysis of the project. we have got approximately a 20 million dollar predevelopment spend and that is funded entirely by forest city equity and there is an estimated $160 million in the infrastructure costs. over 4 phrases. the port is going to realize mainly the revenues through the increased improved land value but then, a variety of other

revenue sources as well. and we are eliminating 47 million dollars of current capitol liabilities in the water front site and the deal is structured to sort of fairly aportion the risks that we see at pier 70 and the rewards. >> this is a summary of forest city infrastructure costs that they have spent actually much of 2012 examining. and 160 million in current dollars. and steven of port staff led to a third party analysis, port analysis of these infrastructure costs here to to see what will happen to the pier 70 site if nothing were done to address sea level rise and the plans for the infrastructure approach to build up the site to deal with expected sea level rise and so the port's third party analysis of the infrastructure found

that the cost estimation was appropriate. the over all infrastructure was appropriate and they did note a few things during the invitement phase and there is a proposed sea wall that we need to pay attention to that is to make sure that the filled area of the site does not sluff off into the bay if there is a major earthquake. we need to look at the weight of the material used to raise the site and whether or not that causes settlement. and we are going to be talking a lot with the san francisco public utility commission about whether it is better to have a combined suer system to handle the sewer flows or storm water flows or it is better to have a separate system and we need to think about the set utilities for all of pier 70 including all of the users of the site. so this gives you a sense about the project implementation schedule, this is a very sort of emotional schedule at this point if we get through the

entitlement phase and plan and construction and we will start in 2016, 17 and you will not have full build out of the site until 2028 or beyond. they are looking at an 80... 20 mix with the use of tax credit and we have had a really good

dialogue with the sfmta and performing a water front transportation assessment to look at the site and how muni various lines could be enhanced to provide better service, starting with whether or not there can be central subway turn around at 20th in illinois. that could provide four-minute headways to the site during the peak transit times. so emily from the office of economic and workforce development and richard from eps worked together on the fiscal feesbility analysis of the project and total revenues to the city of close to $30 million and one time fees of 90 million, 14,000 construction jobs that is direct and indirect construction jobs and

13,000 permanent jobs. so forest city is going to be a good neighborhood in terms of how they deliver this project, and they are really committed to working with local communities to share the economic benefits of the project. they finalized the project providing for 10 percent lde participation and contracting during the entitlement phase. they have reached agreement with the muni regarding a project labor agreement that will incorporate a local hire commitment for the horizontal and the vertical. and commissioner brandon you asked at the last port commission meeting about this other water front community benefit fund, the port will deposit funds in that fund consistent with the port commission's adopted policy. >> so the port revenues and then i am almost concluded.

we have structured this deal essentially the deal works that forest city will get entitlement and get an 18 percent return and after that 18 percent return. we will split the land value 40 percent to the city and 55 percent to the port and we have layered on top of that some other participation mechanisms that occur regardless or not the forest city has hit its 18 percent and just walking through these, i want to point out the big revenue sources through time and this in line four. the port will get a share of the tax incrament generated

from the water front site to help to address those needs and that will be early money from the project and skipping to line four, where you see modified gross revenues, we have structured the deal so that the port's participation and revenues will increase over time and after the buildings have been built and so starting in the year 30, we will get 1.5 percent of the modified gross revenues from all of the buildings and then it is up to 2.5 percent in the year 60. that will generate significant out year revenues to the port and then, skipping down to the district parking garages we are looking at a public financing approach to the three garages where the port may actually owning those garages right from the get go and will get the benefit of the parking revenues after they have been paid off and so in total and a net present value basis support will realize that a little bit north of 150 million in proceeds from all of these

sources. you can see what happens over time. what you are seeing in 2030, is forest city hitting the return and getting a 55 percent share for the port of the leases that have occurred that period in time, and revenues growing over time. to north of 30 million, by 2016. so, that is, that concludes the financial analysis. we are also just very excited about the urban design. and this is looking into the water front park area sort of the way that they have designed the buildings to allow the views of the historic resources at the site, this is one of the concept for the park i do want to point out that it may not be hard scaped this way and we are at an early conceptual stage but it is going to be a very unique urban district. so i just want to say in

conclusion, that there has been a huge number people who have been working on pier 70 at the commission level and the staff level and other city agency and really in the community. and with the central water front advisory group. and on behalf of everybody it has been an honor working on this for you and we are looking for ward to what is coming next. so we plan to be at the board of supervisors in early june, this says june 12, they may want to move that up to june fifth because they have budget deliberation and it may be that the budget. and then we will move to the entitlement phase thatvy described and in two to three years be back to you with transaction documents and the real deal between the port and forest city and with that we

are available to answer your questions, thank you. >> thank you. and now we are open for public comment. >> so moved. >> sorry. >> second. >> all in favor? >> i am sorry, public comment? >> tim culan. >> good afternoon commissioners, tim on behalf of the san francisco housing and action coalition and our 70-something member organizations. we are thrilled to see this again, the project team came and presented to our endorsement committee recently and there is a lot of enthusiasm among the direction that this is taking in particular this is a toe hold on the southern water front that is going to create excitement to develop north of pier 70 and hopefully to the south and points in between. i think one of the things that

comes out is we like how it is moving in an urban direction and we will urge to the fullest extent possible and flexible zoning so that we are not trying to guess the market 20 years out that it can shift as the needs change. and another thing is please don't build a single parking space that is not absolutely necessary. that would be for the future of the water front as well. we love the high component of the affordable housing and how it is able to subsidize a lot, the 80/20 looks very attractive and we think that this is just a gem of an opportunity and this is not the time or the location to go timid with regard to height and density. you have a terrific opportunity and as the aoe normty of the housing crisis that the city faces becomes more evident. it is hard to say that 950 would be adequate at a location

like this. don't close yourself off to this debate. and it is a great location for it. don't be tim mid about heights, and maybe don't make them big and bulky and don't make it look like mission bay please, go to something that is much smaller foot prints but much taller, in any event we are thrilled that you are here to look at the term sheet and don't hesitate to approve it and get this going. >> thank you. >> next up. danny campbell. >> good afternoon commissioners, danny of the sheet workers union 104, we are very excited about this project not because it is going to create thousands of construction jobs and ample contract and opportunities for local contractors, but more importantly, it is going to

create a really vibrant mixed use project on the water front, what lots of open space for the public use. which we will all go get to enjoy and as well as added integrated the ongoing ship repairs for the ship repair, which will insure the continued employment for the members of the sheet metal workers. so we look for your support on approving this term sheet today thank you. >> woods? >> if anybody else that would like to make a public comment be prepared to go to the podium. >> good afternoon, my name is corine woods and i am co-chair of the central water front advisory group and we have been working on pier 70 for it has got to be 15 more years we are

pleased to see the city proposal and i would like to see more density too. because i think that it is a great place for it. and i hope that you can persuade the pec to move towards separation of sewer and strong water. and when we were planning mission bay, we had separated storm water treatment so that we didn't have an impact on the south east treatment plant. and that is even more important as we add more and more density of the 7 water front and so we are hoping that the pec can be pushed kicking and screaming into separation of storm water and sewer. thank you. >> michael teriets. >> commissioners, san francisco

building and construction trades council. we have a history of working very well with forest city and they with us. and in an agreement that the complex project not of this scale but the project that came in time under budget and they also have a history on that same project of doing very well on local hire, and in collaboration with both with us and mission hiring for the construction jobs and the endless jobs, we have worked out a framework that will be interpreted in the job the details of which are to be negotiated and but it was the first thing that we worked out. but we have also seen the route to which the community and this start and we have been impressed like that and we look forward to this. >> suzy benard? >> good afternoon commissioners, i am speaking on behalf of the nunon building

artists at pier 70. we would like to express thanks to the city and the port for including us in the term sheet which was submitted to the port last week. we raised our concerns at the port commission hearing on may 14th about not being included in the pier 70 redevelopment plans, and it was very gratifying to be heard. we very much look forward to working together in an atmosphere of trust and good faith. i have just a couple of brief points this afternoon to bring to your attention. firstly, since the wording on forest city's term sheet regarding the artist is brief and general, we wish to say clearly that affordable comparable art studio space is required not only for current existing tenants and subtenant but also for the benefit of future artists and request that the space be made in order to perpetuate the long history of

pier 70 as one of san francisco few remaining vibrant creative centers. secondly, the nunan building artists remain commited to pursuing the option of preserving the building itself as a special building of historic significance, but for the living, breathing and current community within it. >> thank you. >> thank you. >> susan, (inaudible). >> i have been a member of the cwag since 2000 andvy been impressed with forest city in their community out reach, and in the designs that they have presented to us and i am just very excited to see this project move forward. thanks. >> thank you. >> charlie labery?

>> good afternoon commissioners i work for the international union and populating engineer and we represent surveyer and heavy equipment operators and construction inspectors and i am also a trusty of the san francisco building council and the building council and i was part of the group that met with jack silvan and his team to discuss this very exciting project. and i was very impressed by their enthusiastic and sincere commitment to create living wage jobs with benefit for the san francisco residents, and i am looking forward to working with forest city to make this a successful project for all stake holders and for that reason, and many more, i could list. i urge you to endorse it, thank you. >> thank you. >> is there any further public comment? >> go, go.

>> toby lavine? >> good afternoon, commissioners, my name is toby lavine and i am the co-chair of the central water front advisory group and i guess after 12 or so years, that this project has been bubbling under the surface you did not expect that today you would have a love fest. but that sounds like what you have. and it is true, that part of that is because of the efforts that forest city has made to reach out to the community and to incorporate the communities idea and concerns into the project. and so maybe you might ask for a city to put together a

conpendeum that could be passed on to other developers about how to do this work. >> i think that going in the future, if we really want to have an extraordinary environment, i mean, in some places, extraordinary environments evolve. but in this particular case, we are creating it. and that means they have done very well with putting excellent people and imaginative people on the team and reaching out to the neighbors for ideas. but we need to have this continue in the future. and especially when it comes to choosing the architects and the landscape designers and so forth and so on. i hope that they will continue to you know, choose outstanding people with great ideas. and to make this a reality. i am also continued to be concerned and i talked with you all in january about access to

the site and i think that the port and the port commission is going to have to help with that. because right now, the access is veryvemid. and so, i think that is a subject that should be brought in very early. and i think that the other thing is that as you go through this and i am hoping that the commission will stay very closely in touch with the project as it moves forward and because it is an important one. that you will continue to use the goals that were set out and master plan for pier 70 to evaluate the progress but right now i think that we will try to continue the love fest and let's endorse the term sheet. >> any further comment? >> commissioners?