team. i'm joined by alexis who is the head of the san francisco office. if an effort to be efficient, we have not included slides that talk about the extensive outreach process that we went through. i would like to just note that we did spend about a year out in the community. we hired an artist to do an illustrated narrative depicting the history of the site. we showed that as an opening that 300 people and we did focus groups and brainstorming and workshops with business owners and cultural organizations and members of the central water front advisory group. we work with our engineers and construction companies to go out and do due diligence to understand the reality of

reviet vitalize the community. it was a 12 month process led to the plan i'll show you shortly. one of the, i think just to put in context the key things that came out of that learning process were that it was really important to create a successful place that community would want to participate in pier 70. that's a mix of creative uses that i'll talk more about and it capitalized on the community and the history. the experiences that people can have are locally inspired, local feeling and that that permats the ground floor on the site. there's enough density, one to support the

infrastructure cost but to make the place feel alive and support these uses on the ground floor and to create a unique water front. so at the center of the site, we've located a mixed created core. i think what's important here is that when we look at where the pier 70 master plan was one of the major goals was to reaccomplish pier 70 as a city hub as in world war ii and we think the way you can make that work is creating the urban environment that you have in south market particularly around south park. if you look at where companies are going that are growing in san francisco they want to be in

those locations and they're choosing those like mission bay which aren't designed to accommodate that mix so at the center of the site we've located this core of residential and creative uses like small scale local production, arts and cultural uses, restaurants and retail and those are flanked on the edges of the site by that commercial office space which supports the ground floor activity and supports the economic equation for this site. the land use program that is in the term sheet includes 270,000 square feet of what we use as catch all category called creative uses that perm ats the ground floor but it's around three buildings here in red. two are historic rehabilitation. the affordable component delivered on site and 2.5 million feet of office. to

three dimensionally, which is really how we experience a place, we spent some time looking at how do we make a place that feels like a san francisco neighborhood that people would want to spend time in and take ownership at. we started by looking at the form of certain areas the mission bay where the heists are capped at 90 feet and you end up with the buildings are brt out to the envelope, to the box, the shoreline is one continuous frontage with the buildings which makes it more challenging to activate that open space. so one of the things that we did is we have the opportunity with these three historic buildings on the site that create a little note of historic texture and we opened up that water front park into the interior of the site. it

creates some distinct zones for the parks that can better be integrated with the buildings and it also creates that connection into the interior of the site. we drop the scale of the buildings around about 75 percent of the site to lower the dark gray building with the textured roof. that's building 12. it's about 65 feet, 3 three quarters of the site is lower than that fronting on the park, it's approximately 35 to 45 feet. a good example of is this south park. the buildings around south park are lower scale and as you go to the next ring out you get the larger scale buildings that help support the activity in the park itself. what that does mean is having the density that we need to the site, that means moving that to the edges of the site and so what you see here is that we've got into a three

locations some taller buildings that can be up to 230 feet where you maintain that density, but you're doing it in a way that respect the shoreline and the character of the open space. the overall density that is being proposed on the water front site is very similar to what you see in dog patch which is the american industrial center, the area around south park and slightly in mission bay. i won't go into a lot of detail here but we're focused on the ground floor activity, creating a place that feels like the type of neighborhood that people love about san francisco. and that means a mix of diverse interesting, publicly uses that include cafes and restaurants and neighborhood serving retail, arts and cultural expanding on what exists on the

site. some scale row cal production as got a major presence in the dog batch already. chocolate makers and wine makers and those types of users and the other project that we're working on called work innovation. these are spaces that are often called work share environments where you've got a high density of people sharing space, often sharing equipment. there's a high density and poll nation across businesses and examples are tech shop which is oriented around making and manufacturing or the hub which is oriented around entrepreneur ship. you have the office and those are less accessible to the visitors

to the site but they're the fundamentally economic driver for the project to support the infrastructure uses and also to support those ground floor uses that really rely on the residence and the works as clients, as customers, as partners. all of this space is tied together by the public realm. that's the parks and the walkways and the shoreline. we worked hard to orient the plan so the open spaces have a maximum opportunity to be activated by the buildings and the uses that are a djacent to them so around building 12 where we envision a market hall where you got low market scale that's making and selling their goods. you have the historic

building on the water front site in an area we're calling it -- you got it unique space where the buildings are the right side of the park could be an indoor, outdoor venue. there's no road between the building and the park so there's an opportunity for those uses to spill out directly onto the park to live them. it's a place where people can have a picnic or their children can play. it can accommodate to the outdoor concert or an outdoor movie and lastly an area called the slip way promanade where it's a unique place in san francisco where you have the bay trail

which will pass through pier and south with restaurants and retail on one side without automobile access separating that space from the buildings and on the other side these historic piers that give people an opportunity to pop out onto the bay and these amazing views as you can see on the screen looking at downtown san francisco and the bay bridge. so we're extremely excited about this. we've been extremely encouraged by the positive response we've received. we've had three open houses on the site. it has been incredibly impressed by having upwards of 700 people attend these and folks are excited about what's happening at pier 70. >> supervisor mark.

>> this is a great presentation, the slide you're giving us, but having visit that flip way area and even just seeing what it looks now now compared to what you're proposing, that would make the presentation stronger. and how things aren't used at all and how you're creating an amazing community. i like the presentation too but it doesn't bring out as you stated in the beginning, how what a creative process it was to look at a vision and the panels you had in the community and how people looked at the history and creating something that's based on the respect, but this is a great presentation. >> i appreciate you acknowledging and also the fact that you showed up at one of the open houses. i will end, i don't know if you all received

a few letters of support that came in late last night and early this morning. i'll leave them here in case you didn't and we're available to answer questions after brand benson finishes the presentation. thank you. >> good morning supervisors, brad benson and the last part of the presentation is to describe the term sheet that we have negotiated and the term sheet is the proposed high business terms between the city and for a city to build it new neighborhood. and then also the fiscal feasible code and starting a code. we've been in -- if we could move back to the

presentation, victor. we've been in -- after four city completed its two year process, we entered into an sharet process and the port and the municipal transportation agency. as you can see from this slide, we're looking at developing a complicated neighborhood in what is, you know, largely a historic industrial site. maintaining that ship repair use and building all new infrastructure and amendities to support the vision that four city has put together. there's challenges and there's high infrastructure cost. there's a market absorption with this site. we think the natural development

of the site starts from illinois street on the west and through those purple sites down into the four city site. so it's going to take up to 15 years to see this vision realized in phases over time. jack over gave an over view of this site consists with the ports preferred master plan. it's a major goal of the master plan and these retail maker uses at 270,000 square feet. four city brought forth the idea of incorporating residential having 1,000 to activate the staff and the staff agreed that that 24 hour presence was needed to have a

vibrant neighborhood at pier 70 and associated parking. we always focus on open space development. david bopray who is the lead planner for the master plan is working on the blue green way up and down this water front and we're excited about the new editions that they propose to that network of parks and water. as a city team, we're excited about this place making notion. four city's got new ideas but they implemented those ideas at the 5-m project at 5th and mission. four city was very generous with dealing with the artist

who currentry have studios at pier studio and offered like space to those artist when the nunon building goes away and the office space which was apart of the port's preferred master plan. so you can see that these -- the historic rehabilitation and the place making congregate around open space and come in early phases of the project. jack talked a little bit about the need for height on the edges on the project and just to give you a sense, he references a few buildings can go as high as 230 feet. the city put together this analysis of the example the height along the water front so we think these heights are fit in with pier 70. they're going to look at the best place to put height on the site. that's looking at how

height relates to historic buildings and the open space, how shadows fall. and what you see on this slide are in green areas where city staff believes would be preferred areas for height. in red areas that are probably not appropriate for height and the areas in yellow suggests that maybe eight will be appropriate in those areas. jack showed you the vision for different rooms of open space. what he didn't have a chance to mention, you'll see on the west side here, 3 rectangles, those are district parking facilities, realry planned as a way of keep willing cars from having to go into the site, but they also include an active remembering creation component and we need that for the surrounding neighborhoods. to get into the financial aspect. we're looking at $20 million to

go through the phase and to rezoom the site. $160 million for new infrastructure streets, utilities and other improvements including the open space. the structure of the deal is looking at how to pay for those entitlement and infrastructure cost with market base return to four city and how to generate revenue the port. so we've come up with a structure that shares risks between port and four city. and it rewards if it's success. this gives you a sense of the infrastructure. the site is partially filled area and lying

low. and the projected sea level rise would inodate the site. we would add soil and raise the site to have a projected sea level at 2100. we talked about this area of the site. you see on this slide is the shoreline. the fill area could in a major seismic event can plan a sea water edge to anchor that field area of the site in a seismic event. so now getting into the proposed financial transaction. it's a complicated transaction. development will come in four phases like parks in each phase. the project relies on three main forms of

financing from the city. if land proceeds from the sale or lease of parcels and we would determine the price of those leases or sales through an appraisal process to accomplish fair market value at the time they will be developed. we have the ability to impose special taxes on the water front site and to issue community facilities district bonds to pay for public improvements and emily mentioned we've gotten state legislation allowing the capture of property tax growth generated by this new development. so those are the three main sources to pay for infrastructure improvements. four sea are come up with the capital to make the improvements and the deal structure is going to repay their equity with an 8 percent

return which we feel compares favorablely with similar types of deals that the city has done in the past. ground leases would be the main form of convey znswer. we would only consider sale of parcels at the water front site for condominium purposes. these leases would be long term leases, 99 year leases. we would rely in the earlier phases for prepaid leases to have the proceeds payoff the developers equity very quickly. the goal of this deal structure is to retire their spend as quickly as possible. after they hit their 18 percent return which we're currently projecting to be in phase 4 after all the infrastructure is built, it will be split, 55

percent to the port. the parking structures that i addressed earlier are preferred option and we're going to analyze a number of options through the dda period, the disposition agreement and negotiation period is to publicly finance the park. after they're paid off, the port would own the revenues from these garages over the remaining term of the pier 70 development. we're looking at how to finance these place making uses, they're not very profit uses as you can imagine. they don't generate high rents so we're looking at public financing strategies to fund these place making uses and we'll define that better with we come back on a final project approval. and then we're

looking in addition to the fair market value, participation. those are what are called capital events that happen periodically or when condominiums are sold, we get the revenue price. at year 30, the port will receive 1.5 percent of modified gross revenues from all these leases wrapping up to 2.65 percent. going to the land use analysis, what we're going to do over the next three years is coming up with a special use district to rezone the site from m-2 to this mix used neighborhood for cities that got a strong committee to affordable housing, they're meet the requirement of 15 percent

inclusion natury on site. but they're looking at an 80/20 mix and working with mta over the next three year period to figure out the right transportation demand management plan for the development and transit improvement that will allow people to access pier 70 easily. and improvement to the subway line to extend the turn around the central subway line to 20th street which is the doorstep to pier 70. so looking at the fiscal feesability analysis by the city, the total annual fiscal project of the project are close to $30 million of new tax revenue a year. there would be more than $90 million in of one time tax benefits and fees generated by the project and

14,000 construction jobs and almost 13,000 permanent jobs from this developmentment so it ment so it would be a benefit for the city. we have been negotiating with our division to come up with an lbe goal for this next entitlement phase of 10 percent so they'll use row cal businesses to help -- they'll use local businesses to help in the rezoning. they've negotiated with the building trade and community organization with a local hire of 25 percent and we think that there there's outreach in the area has been -- the last two slides getting to the analysis. some are a bit hard to take in. the port is looking at

total benefit over the 99 life of the project of close to $7 billion. but bringing that back to today's dollars, there's a couple of sources that's going to help the poor in the near team. we're paying for other improvements around pier 70 and that's generated early. i talked about that the generated port and that's $2 billion. and then as we're looking at those parking garages that's a very smart financial play for the park. it can generate close to $3 million over the life of the deal. so you can see the revenues over time. the port isn't going to make money while we're paying for the infrastructure, but it will

increase to $30 million by 2016. i want to close by recognizing that pier 70 has been a long term effort of a variety of port and city staff. it really takes a lot of staff commitment to develop a neighborhood like this and i like to thank monique, the director, jennifer mats is the mayor's water front director, kathleen dyhap manage the selection process and we've had great participation from our central water front advisory group, so in closing i want to just point to the next steps, we're going to be in a three entitlement phase for the project where we'll have a trust swap and we'll be back in front of you hopefully by late

2016 to seek your final approval of the project. thank you very much. >> thank you mr. benson. colleagues do we have any questions at this time. supervisor mar. >> can you just elaborate more on the negotiations with the building trades on a potential labor agreement and it sounds like there's some strong commitments for percentage of local hiring and it's going to be more formalized in a commitment letter. >> yes, actually. similar to the warriors project and sea lot 337 that was before the board recentry. four city had a commitment letter for the city and the port have executed that letter and that is with the building trades and advocates in favor of local

hire. it's leading to something called a project labor agreement which would govern the infrastructure at the site and these private buildings that are going to be built on these parcels and so the goal would be to have 25 percent of the new jobs that are created by those construction opportunities filled by local residents. and there's a method for checking whether there's enough workers in the union hall to fill those slots. but we think that they've done a great job in sort of balancing that negotiation. >> further questions. sorry, jack you want to go. >> i want to clarify one thing that it's not a goal but it's pay commitment to 25 percent. >> mr. benson, i don't know if you had a chance to read the

budget report, are you okay with the recommendations or maybe it's something we need to take up afterwards. >> i wanted to thank the budget analyst for a thorough and timely review of the project and we agree with all of their recommendations, the city attorney has prepared -- proposed the sheet to reflect those changes and we're working on underlining changes to the term sheet as well. >> but in terms of approval state, we have amendments then? >> you do have amendments. i gave copies to the clerk and for each of you to reflect the budget. >> thank you. speaking of, mr. rose. we have a budget analyst report. >> mr. chairman, members of the committee on page 31 of our report, we state that for city wo