>> good morning everyone. welcome to the san francisco

board of supervisors, budget and finance sub-committee for june 5, 2013. i'm joined by avalos and erik mark. i would like to thank the members of sf gks tv covering this meeting and victor young. mr. clerk do we have any announcements. >> yes, please turn off electronic devices. items act the upon state will be on july 5, 2013. >> mr. clark can you call item number one. >> rez collusion approving the execution of a lease amendment for a portion of property

commonlyknown as block no. 0817, lot no. 30 (parcel k), by and between the city and county of san francisco and proxydevelopment, llc, for an extended term through january 31, 2021, and a revised monthly base rent of $7,200 effective june 1, 2015.. >> okay. thank you this is sponsored by supervisor breed and we have breed's office to speak first. >> good morning supervisors. i'll be brief, but to give context for this context. it is in haze's item and this is by the freeway. they sold it which is dissolved so the property is in the hands of the mayor's office of housing which plans to develop it in development housing. in theen trum, the city entered into a lease with a city called approximaty development which has a use of this space. it's a nationally recognized urban design and honestly we were say

tg could have gone to the land use city. what was previously a parking lot is a model for development. it's a true haze valley. this is supported by the neighborhood association. proxy done a great job with working with job training companies. and the rent that the city receives is actually tied to what it would receive if the property was used as a parking lot and supervisor brief thinks this is better than a parking lot and happy to see the lease continued and ask for your support. thank you. >> thank you mr. johnson. >> we have john from our department of real-estate. >> john, director of real-estate. very briefly. this is an 11,430 parcel originally leased by the city

in 2004 for parking purposes that in 2010 the board approved this lease with proxy development and we're here to extend that agreement. as part of the dissolution process, the property was transferred to jurisdiction as mentioned so today this is a straight lease agreement. we're asking authorization for an extension to 1312021 which coincided with the reed property. it has a new base rate to the city and increases to $5,300 per month and that would carry with an adjustment and in june the new basin creases to modestly by $7,200 a month, reflective of our taking a look at the month and the increases therefore at

2>> good morning with work force development. bare with me while i bring up my power point. >> so i'd like to follow john's comments with context on the proxy project. in 2000 the city received 2 thousand parcels. and they're named a-v and the redevelopment purchased seven of the parcel, a, c, g, k, and q and with the purpose of developing these parcels for affordable housing. it presents the redevelopment interest. to date four of these housing projects have been completed on the boulevard. parcel a is the park view terrace which is

senior housing and parcel c is the senior community center which provides 100 units for low income and homeless seniors and the richards apartments for homeless individuals and parcel q has the octavia court for those with disabilities. and the mayor's house says that parcel o project will start in 2014 which will add another 100 rental housing, parcel u has been programmed for h use. parcel k is on -- it's one of the 7 former freeway on octavia build and is affordable housing. it's programmed for 20 to 25 units and the units

are affordable with ad to 100, the mayor house has housing for those throughout the city and will not develop parcel k until 2021. in response to concerns to activate the space while waiting for development, they issued a question for temporary use if 2009. and the proxy was selected by parcel k and l. the project used shipping containers and small retail service and food services and businesses located on parcel a is smiten ice cream and coffee and basic training and city car share, parcel k hosts multiple food trucks, parcel l is part of the proxy project and home to the beer garden while part of the project, l is not

currently in front of the sub-committee and asked for consideration. in addition to activating parcel k, it has furthered economic development in the neighborhood since opening in april 2013, the tenants have created 109 jobs which are filled with san francisco resident. proxy done outreach to the surrounding neighborhoods including partnering with the mobile food program and offering discounting rates on site and priority and scheduling when they can be on the site and they have a working relationship place vendors on the site and working to have spaces for non prove i can and events. i like to introduce douglas to go over the design

of the proxy project. i'm the principal and ark trek tral -- architectural design and i like to give a brief over view by power point. and i thank you for considering the lease extension on this site. as timson noted, parcel k is located at the corner of haze and octavia and bound by lynndon street. and these projects are along patricia stream and the idea of the project is to activate vacant lots on these sites. so we started with vacant lots. lot l was vacant and lot k had day rate parking, $10 a day, no in

and out. we then added -- we realize that we need to phase this project because we're slightly under funded developer and we started with smiten and ritual which is phase one and add the beer garden which is phase two. we're basically just starting phases three and four, phase three is an art galore which will face lynndon street on lot l and phase four as the full implementation of the project on lot k. including more retail containers and more food vendors. this is rendering the project at a full build out. and it includes event space on the inside. this is last summer which shows the art installation on the corner of

ocavia. >> is that from the music development. >> no, that will not be permanent. that's the back of an outdoor movie theater so the idea is there will be a walk in movie theater that would be occasion nal events tied to a film series. so our vendors as timson went over with is smiten ice cream and coffee. this is ritual. the beer garden on lot l, either a parrel store on lot k, and you can see basic training which is a fitness boot camp that uses our site for training sessions. just a few recent press that we've gotten. this is ferna mcferson

who is a graduate of the food program and she's vending at proxy. we've been covered in the chronicle quite extensively and also in this past weeks new york times sunday edition, michael work about used proxy as a prime example of that and i'd be happy to answer any questions you may have. >> i think my question about the music was answered and i appreciate that. >> would you like it to be permanent? >> no, it's a good movie but you might want to switch out for different audiences that might want to come through. >> i've been to most of the sites there and been impressed with the use of space and the quality of the food and its openness to bring in people

into the space. it as been pretty exceptional to see. >> thank you. >> any other comments or presentations. we'll open this up to public comments. and we don't have much for item number one. anyone who wishes to speak, please step forward. >> i'm the neighbor association and the transportation and planning committee. we've been engaged with this project and everything basically about it as turned out better than we thought. the proxy group has been the best partner you can ask for in working constructively with the community and this is the perfect example of why temporary uses engaging spaces are the ideal thing so they're ready to be built on, so we very, very strongly support the

continued use of this proxy development in k and l, even though l is not up for consideration today. and look for your support on it. thank you. >> thank you very much. anybody else want to publicly comment on this item. public comment is closed. mr. johnson and i want to thank camton coming. this is a super cool project and thank you proxy for doing what you're doing. move this item forward and we can do so without objection. thank you very much. mr. clerk can you call three, four, five together.

>> item three, approving the persons with aid s rez collusion of approving the housing opportunities for persons with aids program and authorizing the mayor on behalf of the city and county of firefighter to apply for, accept and ex pend the city's program entitlement from us department of housing urban development in the amount of 9, 244, 988 and the ex pend program income and reprogrammed

funds in the amount of 2, 546, 160 for the period of july 1, 2013 through june 20, 2018. mayorresolution approving the emergency solutions grants program and authorizing the mayor, on behalf of the city and county of san francisco, to apply for, accept, and expend the city's fy2013-2014 emergency solutions grants program entitlement in the amount of $1,528,852 from the u.s. department of housing and urban development for an unspecified period starting july 1, 2013.mayorresolution approving the fy2013-2014 home investment partnership (home) program and authorizing the mayor, on behalf of the city and county of san francisco, to apply for, accept, and expend the city's fy2013-2014 home program entitlement from the u.s. department of housing and urban development in the amount of $3,763,707 and to expend program income in the amount of $30,000 for the period of july 1, 2013, through june 30, 2018. >> thank you mr. clerk. >> good morning. director of committee development for the mayor's office and community development now. i'm here to present these four items, we usually present our had you had funded programs to you earlier in the year, this year because of some lateness in congress's decision making, we're here just at the he tail end of the

year to present these expenditures schedules. we presented to you in the schedule when this item was introduced and provided you today with some slightly amended expenditure our program saw a block and it's a 6 percent increase from last year to this year. unfortunately our emergency solutions plants program which funds many of our homeless programs, a significant decrease, a 27 percent decrease, unexpected, our understanding is congress took from the emergency grant program to fund, to back a deficit in the care funding from the mackenny program from

hud. and we saw a slight increase of 3 percent and our hopkn support for aid's housing and we saw a decrease of 11 percent. that's unfortunate. what that means for our cities and grantees, let me tell you, we're in the middle of a three year funding cycle and we're going to go into our second year, so the grantees will see no change from last year's schedule to this year's schedule. we were able to cover the decrease in our emergency solutions grants program by allocating some of our increase in community block funds, all of our esg programs are eligible for sbg funding so on the community development side, virtually all the dollars had to be used to back fill the significant decrease in our homeless service budget. on

the homeless side -- >> i'm sorry. we will go back to that entirely. >> we were able to cover all those costs. the decrease on the sdbg side means our discretionary dollars we have for capital funding for facilities that's where we took the hit because we wanted to maintain the service side. on the hopkins side we were able to maintain our fund for the operations of our long operation care facility. the hoplica is significant in many ways and creates a structural problem for our city. we have relied on, hopple service. to maintain our service, we will no longer have any dollars available for capital rehab for our, had opple facility. putting that into per speck

tefb we used to be able to set aside half a million for our funds, when i first got to the city, we had $3 million available on the cd bg side for capital community facilities funding. so we move from $3 million on the cdbg side and only $800,000 for the city for capital rehab for our community facilities. i think we've done that for a good reason because we wanted to maintain the service level but it creates some structural issues in how do we work with our community facility to manage their capital needs. in addition, we saw a decrease in our fund to go the partners in san marine county. this used to be in under