>> i'd like to call the meeting to order at 1:11. madam secretary, please call the roll. >> thank you, madam chair. the first order of business is roll call. commission members please respond when i call your name. commissioner el son? orctionv? >> present. >> [speaker not understood] is abseptember. commissioner singh? >> [speaker not understood]. >> kumar mondejar is absent and [speaker not understood]. the next scheduled commission

meeting will be a special meeting held on tuesday, march 4, 2014 at 1:00 p.m. b, announcement of prohibition of sound producing electronic devices during the meeting. [speaker not understood]. c, announcement of time allotment for public comments. please be advised, a member of the public has up to three minutes to make pertinent public comments on each agenda item the commission adopts a shorter period on any item. it is strongly recommended any members of the public who wish to address the commission fill out a speaker card provided by the commission secretary and submit a completed card to the commission secretary. the next order of business is item 3, report on actions taken at previous closed session meeting, if any. there are no reportable actions. the next order of business is item 4, matters of unfinished business. we have no items. the next order of business is item 5, matters of new

business, consisting of consent and regular agenda. first, the consent agenda. item 5a., approval of minutes: regular meeting of january 21, 2014. and item 5b, authorizing a first amendment to the personal service contract with overland, pacific, and cutler, inc., a california corporation, to extend the contract term by six months, for a period ending on august 15, 2014 and to pro he vied continued tenant relocation services at the hunters point shipyard in compliance with the disposition and development agreement for candlestick point and phase 2 of the hunters point shipyard; hunters point shipyard redevelopment project area. discussion and action resolution number 7-2014. madam chair. >> thank you very much. did you mention the minutes? did you mention the minutes as part of this announcement? [speaker not understood]? >> yes. >> sorry. >> [speaker not understood].

>> oh, it is. so, for our consent agenda we are going to consider two items together and vote on them separately. the first is the minutes from the january 21st, 2014 meeting. and the second is an action item to extend the contract of a contractor for the shipyard project. is there any public comment on either item? we're going to take that together and then we'll discuss. any public comment on the minutes? >> i have one, one comment, madam chair, doris [speaker not understood] for item b. [inaudible]. i just wish for you to adopt or approve this item that's before you. i support it.

>> thank you very much. do we have any other public comment? >> no other cards, madam chair. >> okay, thank you very much. so, we're going to consider these two items, two separate votes. let's start with the minutes of january 21st, 2014. we should have received those in the packets. are this ~ there any questions or comments on the minutes? commissioner rosales. >> mr. bryant, on part of the minutes i was present and to vote, in another part of the minutes i had to recuse myself and abstain. i'm assuming i need to then abstain on approval of these minutes. >> you don't have to, commissioner. you may abstain. for instance, you could have reviewed the tape, for example. but if you feel that you're not knowledgeable enough to vote on the minutes, then you could abstain, yes. >> i move that -- >> thank you very much. is there a second? >> second. >> thank you very much.

madam secretary, please call the roll. >> commission members please announce your vote when i call your name. commissioner ellington? >> aye. >> commissioner m is is absent. commissioner is sing? >> yes. >> vice-chair rosales? >> abstaining. >> madam chair johnson? >> aye. >> madam chair, the vote is 3 ayes, one absanction, one absent. >> thank you very much. the next alioto-pier item on our consent agenda that we're going to consider is an extension of the personal services contract for overland pacific and kutler, inc., they are charged with the relocation program for the shipyard, hunters point shipyard. there is no change to the budget or to the scope of work. we are looking at an extension here because of the solution of redevelopment. there were delays in many parts of the work that we do, including to the scope of work for this, for this contractor. so, we're looking at a six-month extension, same scope, same piper jaffray. are there any questions or comments on this item? >> no.

>> seeing none -- >> i move that. >> thank you very much. is there a second? >> second. >> thank you very much. madam secretary, please call the roll. >> commission members please announce your vote when i call your name. commissioner ellington? >> aye. >> [speaker not understood] is absent. commissioner sing? >> aye. >> [speaker not understood]. madam chair the vote is 4 ayes, one absent. >> thank you very much. call the next item. >> item c, authorizing the executive director to enter into a vertical lease development and disposition agreement and an option to ground lease with amcal pacific pointe fund, l.p., and a conveyance agreement with hps development co, lp, in furtherance of the development of 59 units of very low-income rental housing development serving families earning up to 50% of the area median income, plus one manager's unit, at block 49 in phase 1 of the hunters point shipyard; hunters point shipyard redevelopment project area.

madam director. >> good afternoon, commissioners, good afternoon to the public. thank you for joining us. commissioners, as you recall in december 2012, you approved a sixth amendment to the phase 1 disposition development agreement that allowed for the aggregation of the master developer lennar's 50% area median income eunice. they are so-called developer inclusionary units to be aggregated on one site, block 49. since that time you have taken a number of steps to implement that. by approving the schematic design last summer and now before you are the legal documents, the transaction documents that would effectuate the development of block 49. so, with that, i'd like to ask anna, assistant project manager for hunters point shipyard to present this item. >> thank you, executive director. good afternoon, president johnson and commissioners. my name is [speaker not understood], i'm assistant project manager for the shipyard. today i requested the

commission authorize the executive director to enter into a vertical lease disposition development agreement and [speaker not understood] pa tickv point fund, and conveyance agreement with lennar in furtherance of development of 59 units of very low-income rental housing serving families up to 50% area income, ami, plus one manager's unit. in my presentation i'll provide a description of block 49, block 49 project, [speaker not understood] the legal documents before you today, and a project outlook. block 49 is locate on parcel 8 hilltop section of the shipyard at the intersection of donna hugh street and kirkwood avenue. it's situated at the parcel's perimeter which means that it connects the shipyard development to the existing neighborhood along donahue. phase 1 of the shipyard will be mostly residential neighborhood with market rate housing and

opportunities for low and moderate income families consisting of phase 1 affordable housing program. [speaker not understood] 18 affordable rental units on designated site as you can see on this map in orange and the map also shows the location for block 49. in addition to the agency units, lennar is required to provide 15% of all developer units which is a total of more than 1100 units as affordable units. the original pda contemplated the toe at of these developer affordable units will be provided as inclusionary units throughout the market rate development. 70% of such units or 134 units at 80% ami and remaining 30% at 50% ami. together with the 218 units that will be provided by ocai we'll be talking about 410 affordable units on phase 1 of the shipyard. the sixth amendment to the phase 1dda modified affordable housing program allowing lennar

to shift the 50% ami units to inclusionary to a stand alone project on block 49. this notification has the benefit that 50% ami units will be provided at once and faster than if they were included in the market rate project that will be constructed over time ~. it is important to note that agreements did not change the total number of affordable housing units in phase 1 or the nature of 80% ami units which continue to be delivered as inclusionary units within the market rate project. the sixth amendment simply changed how we provide 50% ami units. on the transaction side we treat block 49 as if it is agency stand alone housing project but with one very important distinction, mainly ocii doesn't put any money into the project. it is lennar responsible to cover [speaker not understood] needed to carry out the project. ~ funding grasp needed to carry out the project. 49 units are available to

individuals [speaker not understood] 35,000 annually for one individual or 48,550 per year or a family of four. this is slightly lower than the number, 2013 numbers that i presented in october, a decrease from hud. and block 49 unit rents will range from 9 24 for one bedroom to 1,131 for a three bedroom slightly lower as you saw in october. there will be 27 one bedroom units, 21 two-bedroom units, 12 three bedroom units, totaling 59 units for low-income families and one manager's unit. the average bedroom size for one bedrooms is 6 16 square feet and for three bedroom is 1,176 square feet. development of parking, 45 parking spaces to be specific, including one car share space. this information was presented

to you in much detail as part of last october's schematic design approval. the baker architect walked the commissioner and the audience through the entire design which was developed with input from the community. if you recall we had a community [speaker not understood] leading up to the final design. as a reminder i want to show a couple of elevations. this image shows the view from fidel street. [speaker not understood] the outward facing side to the existing neighborhood. and you can see the main building entrance and the building's landmark elements called the lantern and it's a cork and steel tower. it will be one of the highest points for parcel a and from the common area balcony the top floor residents will have really great view. this is the corner of fidel and gerald. [speaker not understood] breaks in building mass and materials and color.

the last elevation i want to show you shows the side of the building that faces the existing morgan heights neighborhood. as i mentioned before, commissioners approved the schematic designs last october on october 15th to be specific, but then i pointed out we would be coming back for the series of legal documents. so, today i want to request the commission to approve a conveyance agreement that will allow for the transfer of the block 49 site from the north to the agency, a vertical lease position development agreement that describes mka development rights and obligations and an option to ground lease, which hold the basic terms of a future ground lease for the side. a family of these documents was also presented to cuc at the february 10th full cac meeting and they recommend that we move forward. after today's commission presentation of the

aforementioned documents we will be coming back one more time requesting authorization of the actual ground lease between ocii and mko and we are planning to do that in june. next i'll summarize the documents that are before you today starting with the conveyance agreement between ocii and lennar. because the land is currently owned by lennar, block 49 needs to be conveyed back to the agency. and the conveyance agreement allows for closing no later than [speaker not understood]. on or before that date, the block 49 site will transfer from lennar to ocii and together with the land transfer lennar will pay $1 million for use on ellis griffith or other affordable housing project within phase 1. once the agency accepts the land, lennar may determine the final number of inclusionary units for projects that are underway. and those projects will no longer include 50% ami units. they will only have 80% ami

inclusionary units. the other two documents are between ocii and the vertical developer, m cal pacific pointe fund. short for vertical lease [speaker not understood] agreement, develops the rights and obligation and schedule performance with estimated construction period from july 2014 through august of 2015 and legally binding construction outside dates of -- starting december 2014 and may 2016. [speaker not understood] agency costs related to the block 49 project. block 49 construction is -- construction started, contingent upon the site transfer as i mentioned before and also execution of the ground lease. [speaker not understood] no transfer occurs and no ground lease is not executed by december of this year and december of this year, either

party the right to terminate the agreement. the vertical lease and development disposition development agreement covers the development and construction periods and the document's term expires with project completion. so, with end of construction. therefore, requirements that deal with ongoing operation of block 49 such as for example affordability restrictions, are being covered in the ground lease. the option to ground lease which lacks the most important terms will be included in the future ground lease, for example the lease term which is a 55-year term from construction completion with an option to extend for an additional 44 years. it also covers [speaker not understood] which equals 10% of the land value and consists of a 15,000 base rent and the remainder being individual rent. amco may exercise the option and execution of a ground lease any time between an effective date, most likely today, and

september 30th and then there is also three-month term extensions that can extend the option until december 31st of this year. the final terms of the ground lease must be agreed upon between amco and ocii's executive director in writing before amco exercises the option. as noted before the ground lease is subject to additional approval. the three documents together with the sixth amendment of the dda carry in various sections provisions to ensure timely completion of block 49, holding all parties accountable. for example, notice to ensure -- in order to ensure lennar's continued interest in completion, lennar may not close sale until block 49 is completed. should the deal fall apart before the land is conveyed, lennar goes back to providing 50% ami units within their market rate project as was

contemplated before the sixth amendment to the dda was executed. should there be problems after the land is conveyed, meaning that either the ground lease is not -- never executed or [speaker not understood], then agreements may be terminated and the agency and the developer have a 60-day period to file tentative arrangements to complete the project. if no arrangements are made [speaker not understood], ground lease block 49 to lennar and it will be their obligation to complete the project and enter into agreements that substantially act as vertical lease development agreement and option to ground lease or subsequent ground lease as it is before you today. so, the same terms that amco has. the small business and work force information has not