previous presentation there was indication about >> the developer will be responsible for all project funding and altogether, the port is required to pay, and to decide for that appraiser, and the increment and costs of putting that public, and parking garage, in the project.

an, allocation and that is allocated to the parking garage and it is sticking out from the housing and of course, the cost of getting approval from the state and commission, since that is our area. >> the proposed mlu, very quickly, determines that we are hoping that we are proposing to be included in the mlu. that the belief, or the term for that mlu will be for a period of three years, the three years, is on the rationale that is going to take roughly about a year for the housing office to be able to issue the rfp because of the work load in their pipeline that they are dealing with. and a lot of projects at this point. and usually take between two to three years to get entitlement and good for the upper fro ses

and so we thought that three years will be ideal and during that three period year there is going to be a schedule of benchmarks by the selector and developer will need to meet like getting their design done and going through the required review process and those are going to have, deadlines. and we are asking, and we are proposing that the director of both, the port, and the housing office, be allowed, to extend those, in in between the dates, without coming back to the port commission, however, any extension, beyond that three year term will require your approval. basically the project, is including an affordable housing or a building. and where the housing are going to be above the podium and the podium level will include a parking, and retail space, as well as other spaces to support, the housing you need above that podium level.

and acan hedering to the states legislation, that was passed, the port is required, to allow to leave the site for up to 75 years. and the board of supervisors ordinance and the legislation of the local legislation that was passed, require, or will allow, for the housing office to allow the port to receive job housing credits. and these are called the job housing linkage credits and these can be used to effect the impact fee that will be paid at a later time. and at times of the mlu, include, by the mlu, we need to and there will be a separate mlu. and when this is all done, to

track, those housing, job housing credit that is our order to the port. and the housing office and the selector of the developer will need to pay for the entitlement and the cost including the super and also (inaudible) there is only for aware that the port will be paying, and in regard to the expenses in moving it forward with a project will be paid by the housing office. after this presentation, we get

the your to move forward and to get from the office and return to the port as indicated and the development and solicitation as indicated will take roughly a year because of the work load that the housing office has had and two years to complete it and the negotiation, and a period, and select the developer and i want to get this all done and we will come back to you with a refined project as well as the proposed lease for the site. but that concludes my presentation, but before i finalize it completely, there say representative from the housing office, annie romero who will help to answer any of your questions, thank you. >> thank you. very much. >> and is there any public comment? >> commissioners? comments, questions? >> i just have one, what is the

incentive for the developer, to entice a developer to take on a project like that? ... >> and apart from free land, >> it is not a free land, they are going to be paying the value of the land, and however, this is an affordable housing project, and that is why, when we are leaning on the expertise of the mayor's office of housing. and they know the wherewithal and you file this non-profit developer and their incentive is providing, this much-needed housing for the population, that need this affordable housing. >> and i understand that. >> and the incentive. >> are these for the rentals or for the percentage for the sale? >> well, we are, we are expecting that is going to be renter. however, the final type of affordable housing and the

level of liability is going to be determined by the mayor's office of housing and that is what the supervisor provided in the ordinance and authorizing us to do this. >> and how many units are we anticipating? >> we estimate between 80 to 120. and that is quite small, actually. >> yes. it is going to be a functional type of unit of senior housing and it will be small, but it is family renter it will be less. >> thank you. >> you are welcome. >> i have a couple of questions, so, i understand on the parking side, that we would be since we want to replenish basically the parking that we will lose is that we will have parking and hopefully equivalent to what we are today but we don't know that for sure, yet and then there is a height limit, 65 feet. and so, are we presuming that

the parking, is included in the 65 feet? and also, is this above ground or below ground parking? or what kind of parking is this? >> that is going to be determined for the design review process when the selector or the developer will come aboard they will do the geo technical review, depending on where the water level is, that depends and it will be more than likely to be underground. >> we are an anticipating that the height will be an open issue and it has had a lot of history as far as height is concerned in the past and so we think that the 65 feet can accommodate the housing and the parking levels an ticipated. >> yeah, but we anticipate that the true number of parking spaces will may be smaller than what is currently there. >> okay, and you mentioned that there is and it makes since that obviously perhaps, on the ground level to be retail. that will be part of the

developer's stream in terms of would not be anything that the port would participate in any retail on the first floor of the project. >> and that is an open issue that will be addressed in the nea period. >> and certainly we would like to hear more about it and obviously making a plug here. >> i do understand that the developers do not operate on the housing side and it has been a challenge to them, and so, we will look for a way to see what is going to work for both. however, we will respect to the parking garage, when we with the disability and it does not pursue nationally, and we exercise a port discretion where we are to move forward with that and because of that from the get go, we will be expecting the developer to be pursuing two tracks of design.

and one, with a garage and one without a garage and so if by the end of the period, the garage is not financial, and we are not going to be holding them from not moving forward quickly and so then we will have to start all over again. >> okay, that will be a moving part that we have to find out more about. >> and i guess in concert with commissioner murphy's questions, you know, everybody has heard all of the developers in the city put the money into the affordable housing and i understand how we are generating this in response to the obligations of pier 70, but is this envisioned that the funds that are in the affordable housing fund already in the city, will also be applied to this project for the developer in addition to whatever private funding they get? >> so that they would, or so that we are getting our credit that we need, and they will also be funding from the

housing fund that has already existed and that the developer has been paying into all along? >> yes, currently as part of the task to be completed under the mlu, it was to look at the funding sources for the affordable housing component. and i doubt, that we are looking at this, is many of the project and it was the private party and we have to pay for the land and this is the same approach that we are taking here, and the line, and you need to get a fair market value for you it, to put into the ports, and so it is the same thing, that we are doing here. and the non-profit developer will not provide a fund, but we are expecting the housing office to provide. >> there is another level of funding that will be coming in, to in addition to how we are going to apply to on to pier

70, but this it self-, how it exists in the city and it may be helping the developer in addition to the land fair market value. >> that is correct. >> in terms of the fair market value, my question is given that this is a lengthy process, mentioned two or three years and has to come back to us and when we will be ordering the appraisal to determine the fair market value? >> we have done that already and we have requested according to the board of supervisor's ordinance, and allowing this to move forward. and one of those requirements, to request the director of real estate to procure an appraise or, >> this is two or three years out, how are we going to and when are we going to decide and we could order a person now, but three years from now, well i am being optimistic in hoping that the market continues but it could go the other way too,

how do we then adjust for the fact that you have this factor going on and you are not moving forward immediately. >> yeah, we will be addressing that. and the number of which, to address that, we could probably have for a situation, whereby, that you know, the appraisal will be updated to us, and we are about to close. and to gage where it is and i think that the question for us to address is the allocation of the fair market value, between the two components of the project. so, if the parking is not taking away from the available development and the city, and we think that mat jorty of the land value will be coming to us and there is no question as to what, it will appraise for, and so doing it now is more or less for the (inaudible) but, to capture what you just mentioned to make sure that getting the maximum. >> okay, so, yeah, i appreciate hearing that we will, the time

line gets extended that there is an updated appraisal, because we have learned in the previous projects that things move quite a bit in numbers and so we obviously want to make sure that it is current. >> that is pretty common practice, to amend it, and the appraisal after a couple of years. >> i know but we found so far, that we have to actually discuss that here. a few times. >> >> and any other comments, or questions? >> okay, and so i guess, at some point, when we will be expecting to hear another progress report? >> as indicated, earlier, we are hoping to bring the mlu, approval to you maybe, in november. or later. because, we need to have one additional community out reach to the coast neighborhood

association. and we need to hold a community meeting and but currently i think, that in the calendar that will be come ng november but we may be premature since we need to get the input from the community first before coming back to you. so december or early january. >> it is exciting to see this project moved forward. >> item 8 b, informational report regarding the mixed use for development proes posed by the forest city california inc, for the pier 70, water front, site and bordered generally by the 20th street and michigan street and 22nd street and the san francisco bay.

>> good afternoon, commissioners, brad benson, director of special projects and i will just load up the presentation. >> good afternoon, and i am here today in the first of a series of quarterly updates, that the port commission has requested about the pier 70, water front site. and development project that we are pursuing, with the forest city california. and we have got in the audience today, jack, representing the forest city, and also, we would like to introduce to you today, sarah, dennis phillips with the office of economic and workforce development, she is going to be their project director on the project, reporting to jennifer mats, the water front project director in the mayor's office.

>> so, just in that, noting the hour, i am going to go fairly quickly, through this presentation. we the last major milestone for the project was the board of supervisors, approval of the term sheet for the project. and describing the general financial agreements between the parties, it is not a binding document and we can't enter into a binding contract with forest city on the development until after sequa but that was an 11-0 vote at the board of supervisors, a lot of positive testimony from the community at the board. and that, that completed, the phase one, milestones for the project, under our exclusive negotiating agreement.

>> this includes two parcels and we hoping to include the pg&e, and we will talk about those as well. and so this is too small to read on the screen, i apologize for that, but this is essentially the exhibit to, the exclusive negotiating agreement and it includes all of the

phase two milestones. we will be doing a larger set of transition documents that we will have attached to them, the purchase of the agreements for this 28 acre sight.

and feedback as well as provide, the early coordination with the planning department so that we all work as a city team moving forward. a couple of things that come out of that, basically a road map for the environmental review work that we need to do as well as the approval process that we need to move this project through with regards to the sequa, we are looking at an ir that addresses the transportation and air quality and noise, and as well as the ones that are particularly relevant to the water front, and although, i guess that the site is not windy, but it is a big issue, but with regard to the project approval and we are still developing, collaboratively what the approval process will be, but we are going to be seeking a series of master plan approvals, and tt both of port

and the planning commissions, that will kind of cover the development and controls for buildings transportation and infrastructure and sustainability and hopefully the documents will be detailed enough to provide a smooth path for a later building and approvals and the other thing that they were helpful for is helping us to clarify what we really needed to work on, and with all of our partner city agencies, for the next steps of design. and one of the ways that we are going to do that is over the next four months and there was a series, last winter and spring that kind of shaped the project concept that it is today. and there is open questions from that work and as well as developments since that time that we want to focus on. and obviously the illinois and 20th street parcels and those were not particularly developed or shaped in regard to what the

front doors of the project. the other thing is that the potential development of the nrg site to the south and you can't see this, directly south to the water front site is, the former, actually, and formally on that parcel, for the energy, and the housing and it has been through a series of ownerships and the energy is the most recent partner and they are actively looking into the development and bringing on the development partner at this time and no specific ideas of what that development will be. but early thoughts are roughly similar with the pier 70 water site concept and mixed use with the office and residential and trying to retain the historic buildings and a lot of

opportunities in terms of integrating the open space, and that is something that we want to look into as well. and a couple of other key issues that we are going to look into is the potential for increased residential development. and hopefully you are aware of the option of up to 2,000 units on the site and that is something that was included in the term sheet to look into and it is something that we would like to develop, to see how it will work, and what could be the trade off and benefits and where that could be locate and we will look into that as well. and spending more time on historic buildings, and how we integrate their context. and then, a key component of these threats too will be flushing out the concept structure and the sewer and water, and at this stage we will be looking at a high level but that is needed for the project description and so the port staff will be working with other agencies to kick off that kind of infrastructure level.

>> as you know, the port main

tenant was our return and we actually leased directly to the san francisco transportation agency and the contractor was auto return, and they moved to a site in brisbane in june and i just, i really have to commend, port real estate staff for the work that they have done and quickly leasing up the site. jeff, and jerry have been working with the industrial tenants who you know have been surprisingly, flexible, in terms of understanding that this is a development site, and that the leasing that we can conduct here has to line up, with the phasing, that for the city is planning for the site and as gentlemanerry and jeff were negotiating with the potential tenants for the site, we were communicating with jack and the forest city team to make sure that everything lined up and you will see on this chart, in blue, yellow, cab moved into the site and occupy

the site right now and they are doing, cab storage and some dispatch from the site, and san francisco, honda has received a lease, and they are both in the national, on this chart, in red. and i don't believe that they have executed the lease yet but it is pending. and the port staff is negotiating to potential leases with the affordable self-storage and affordable currently occupies the area on this map that is orange and green and the area that is orange needs to be vacated for purposes of parking for that.

and if, we get, the forest city completes the proposal and we will bring those to you for your consideration, but we are excited about this phase zero work. >> and this is not going to be eligible either. and this is available on the port's website with the staff report and the commission has it in its report as well. and a lot of what we have been doing on the city staff time is organizize ourselves across the city departments and into the teams that are going to be tackling the different components that sarah described. and is sarah is going to be leading the group that will be looking at sequa and the land use and working with the staff on those issues and david is going to play a significant role in the continued planning work. and the port is going to be focused on the dda and the financial plan to fund all of the infrastructure and steven wheel on the port staff is

going to be working very closely with the forest city engineers to develop that infrastructure plan and coordinate with the other city departments like the san francisco public utilities commission and the department of public works. so, we are trying to get an interdisciplinary team from across the city to really focus on how we build this new neighborhood. and so that, and in closing. i mentioned the exclusive negotiating agreement earlier. and we do intend to come back to you with a proposal to amend that exclusive negotiating agreement, perhaps as early as the november meeting. and to address a few issues for this phase two, period of time. so that concludes my presentation and sarah and i are available to answer any questions. >> is there any