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 changed since last october's schematic design presentation and we are still in the design phase of the project. after the information on contracting will be available closer to construction start. but we have block 49 general contractor here today available to answer questions about the efforts to maximize local participation and we also have b.j. bookstore with ycd here today who can speak to work force referral process if you have any questions. there are a few additional milestones that need to be reached before the first

affordable housing residents can move into block 49 units. once amco has an approved dodda option to ground lease, they can apply for bond financing and tax credit and as soon as financing is in place, lennar will transfer the land and subsequently a ground lease will be signed. and that will happen right before construction starts in june. approximately six months before project completion development team of said marketing of property in accordance with an agency approved marketing plan, and [speaker not understood] can submit applications for lottery and slated to take place in july and the lottery will follow the preference -- which gives preference to hunters point certificate holders. as a first priority, western addition priority holders, rent burden and assisted housing [speaker not understood], san francisco residents in general, and the general public after that. [speaker not understood] will

be able to move into the units hopefully in late 2015. this concludes my presentation and i'm available to answer any questions. >> thank you very much. any public comment on this item? >> i have one speaker card, doris vincent. good afternoon. doris vincent. what has been presented before you has been vetted in the community. they were able to, at the charette, change some things if they didn't like. so, i hope that you will approve this because this is community driven. >> one more card, oscar james.

oscar james, bayview hunters point, native resident. i support this 100% and i'm also glad the young community developers plan a significant part in this particular development. and i totally support now lennar corporation for their commitment to do what we've asked for in the beginning and more. so, with that, i approve it and i'm glad it's happening, and i hope it will become a success for the rest of the community. thank you. >> d.j. [speaker not understood]. it's a tough one. good afternoon, commissioners.

d.j. brook ter, director of [speaker not understood]. i want to echo what we hear from the community. we've worked tirelessly alongside am cal and ocii. looking at schematics and [speaker not understood], they've been a friend to the community since day one and we support moving forward with this as is. thank you. >> thank you very much. further public comment? okay, thank you very much. questions from fellow commissioners? commissioner singh. >> yes, it seems like a very good project, but i'm concerned about the parking 60 units, only 45 parking, what they'll do for the other. >> yeah, so, the parking ratio is .75 parking spaceses per unit, which is consistent ~ with the planning code that doesn't allow more than one parking space per unit.

and what we did to mitigate the situation a little bit, we included a car share space as is now required by the planning department as well so people have access to a car and to transportation even if they don't own a car themselves. >> so, if they have a car, where will they park? >> well, they can use one of the 45 parking spaces within the building or parking on the street. >> is there lots of street parking? >> yeah, there is. there is street parking on the entire parcel of the shipyard. >> okay, thank you. >> thank you very much. any other questions? >> i have a question -- >> commissioner ellington. >> sorry. no, just excited about the project because i think, you know, i've seen kind of the work that's been put into this project and, you know, want to actually see it move forward and i'm hlsd we're making this step today.

~ glad >> thank you very much. commissioner [speaker not understood]. >> i have a question about the implementation of our sbe program. i ask this question often and i'd like to get maybe the next, next reports going forward capturing minority women participation in these numbers because from what i can see, we have 52% sbe participation and professional consultant services, 47 of that number are san francisco based, 29 of that number, i believe, are minority-owned, and then i'm trying to figure out where the 22% from women come in because when i do the math, that's 51%. so, i'm trying to figure out how many minority women are part of the team. so, that's my question. my questions, i want to make sure that there's a robust

outreach among all participants in our local business economy. so, that's one question. i don't know that we have any for now. >> well, i don't have anything in addition to kind of like the list of consultants p that was part of your package. but we can break it out more clearly in the future so you can ~ -- so you see the information that you're asking for. which is women owned businesses. >> yes, minority women owned businesses. >> yes. >> and, so, we only have, of course, numbers for construction, but i guess my -- it's more of a question and comment. how can we be assured that there's going to be this -- a level of diversity among the construction contracting pool? >> so, the general contractor who is on board, cahill, they're familiar with all the

sb requirements, the work force expectations that we have. and they will be working with the support structure that has been put in place, for example, the construction assistance program, cap, with an on-site office at the shipyard. and their job is to reach out to local contractors, make sure they are aware, help them prepare and get ready to bid on opportunities that are coming up. so, that's one of our ways to ensure that we have solid local participation. >> okay, thank you. >> okay, thank you. i do have a quick question. and this was a question that came up for me in light of our discussions on the m-o-u with the mayor's office of housing. so, it's about the marketing plan. a couple things. so, the first is the primary

lease out so, you know, the first time the apartments are leased out. it's very prescriptive norte vertical developer in terms of how they're supposed to do their outreach, through news outlets and things like that. what is -- how does that method reach people digitally or through other methods? what i see are print advertisements and the vertical developer specifically is not required to do anything -- we're not allowed to comment or approve any other method that's not what's laid out in the section, which is just print advertisers. so, very thought given to other methods? like i know, for example, you have vertical developers typically have marketing websites and things like that. so, did you that happen? >> yeah, the vertical developer and the team obviously is not limited by only print advertising and i know that there have been a few questions

and suggestions how to improve the marketing and outreach that will be done by the vertical developer in collaboration with the mayor's office of housing. and, so, i asked maria benjamin who is the person on the mayor's office of housing staff who is leading that effort to give you her expert answer. >> thank you. hi, everybody. we will -- as i spoke about last week, we will be -- we're working on this portal that we'll be able to have information that anybody in the whole city can access about affordable housing developments that are opportunities that are here. it's not going to be ready in july. i really don't think the portal will be up and running in july, but we will advertise on our

own website, on the mayor's office of housing website and send out to our e-mail list of like 14,000 people who are -- who sign onto our e-mail list in order to find out whether ~ when these kind of opportunities become available. we have been working with developers and we'll work with lennar on how to make their applications digitally accessible and be able to meet the digital needs of folks that are serving. so, that's my professional -- >> okay, quick question for you. you said the portal will be ready by july? >> july of next year so more than a year? >> no, it should be ready by july of next year. sorry. ~ >> okay. since you're here, next question is, so, this is a form of lottery, there are a couple ways to do it, but this is the form of lottery the developer

actually running the lottery and there are preferences for certificate of preference holders. but i wonder what is the role of the mayor's office of housing in reaching out to certificate of preference holders? i won't necessarily speak to how the lottery is structured because, again, there's only so many ways to do a lottery once you have the numbers or however you're doing it. but how are you going to make sure that certificate holders in the right order are -- their names are entered properly rather than just having an open portal for none? ~ anyone? >> no, yeah, we have very complex and simple at the same time procedures of about the certificate of preference lotteries. we have staff that monitor, work with the developers and actually monitor that lottery and ellis act housing preference act lottery will come into play with these units as well.

and, so, we are hands on working. we attend the lottery to ensure that the certificate of preference lottery is being done. we also -- we do do -- the developer will have to reach out to or actually finance our reaching out to the certificate of preference holders that we have. and when we do reach out to them, we ask them to contact us if they're intending to apply for a unit so we can make sure we're really working with them. so, when we see the list that comes back from the developer about who is in the lottery, we know who has been -- who intended to apply. if they're not on that list then we make sure they are if they want to be. >> okay. now, i'm happy -- i'm sorry, [speaker not understood], i apologize.

if you feel like you need to, please come up. i'm going to ask you another question. it's been a few days? >> yeah. >> so, apologies if you haven't gotten to this part yet [speaker not understood]. the first thing is the ellis act, that's different than certificate of preference, right? how do i phrase this question? i guess -- first of all, everything you said that's not in the vertical dda, so, where is that covered -- >> it's in the cop [speaker not understood]. it's in the amendment to the ordinance that was done in 2008, that any opportunity that becomes available -- any affordable housing opportunity that the city or the agency has financing followed those rules. >> of the developer having to work with you to reach out to certificate holders and everything you just said?

>> um-hm. >> my interpretation of that. >> okay. >> okay. well, i think that's something maybe for staff to follow-up on because i don't necessarily want to hold up the process. we looked at block 49, this project a lot because my commentary is not necessarily on block 49, but we've spoken repeatedly in this commission about marketing and preferences and wherever we can get clarity is better especially since now the certificate of preference program is technically under the mayor's office of housing which is why you lovely women are standing before us. so, but it's very vague in here how the certificate of preference program coincides with the marketing opportunities for block 49. in fact, it actually says the agency, us, are supposed to do things without certificate of preference marketing. but it's not our program any more. two things. one,

[speaker not understood]. and the other thing is i would just be very careful about lumping programs in together because, you know, the certificate of preference program has a long history with redevelopment projects. i know ellis act has come up in the news a lot lately, but that's a different story. so, i just want to make sure that there is taylored outreach to the different populations and it's not all sort of together ~. >> absolutely, absolutely understood. let me make that very clear. the certificate of preference program still and will, as long as it's in existence, have the

top preference and priority and that is the only preference program that we have that -- where the developer is required to reach out to those or is required. so, with the ellis act housing, there is no requirement to reach out to people who have been evicted because of the ellis act. the requirement, the cop program certificate holders still have -- there's three units in a development that are available and three certificate of preference folks want those three units, they're going to the certificate of preference -- >> okay. sorry to keep everyone -- >> no, okay. >> just the last thing i would say is on the digital methods of reaching out. i know that's what the mayor's office of housing is doing in terms of building the portal and presumably it will be done before the block 49 lottery july 2015. >> yes. >> but i would love to see

something about how digital outreach will be done in the dda, not making it necessarily a developer requirement, but every other method of outreach is prescribed, specifically called out like what newspapers you're going to reach out through, what neighborhoods. i would just like that mentioned in the same way that i would like the clarification of the connection between the developer arrow down to the mayor's office of housing for the certificate of preference program. so; i don't know, in terms of a vote today, i'm looking at executive director. i don't know that what i'm talking about constitutes a change of the agreement itself what the developer is agreeing to. so, i don't know if that could be added as recitals or if we need to adjust the agreement. i don't want to necessarily have that whole approval because there are ongoing questions about how that's supposed to happen. so, i don't know, i'll leave that question to you. >> i think we can clarify the documents speak what you said on the record and go back and

clarify the vertical lease disposition development agreement as between oci and am cal, ycd. we can also -- the ground lease will come before you and we can make sure that we vetted those for the ground lease, which would have more detail on the marketing. just the key terms were provided for in the option to ground lesion, the payment terms, the regulatory restrictions, but the full-blown negotiation and spelling out of what actually happens in the marketing plan is really in the ground lease that will come before you very shortly ~. >> that's why i was thinking if it was recital -- first of all recitals and also there are a couple kolaes in here i need you to clarify, also make sure, for example, certificate of preference program is the authority of the agency, something to that effect and it's not really true any more. so, i want to -- i mean we can look at it later but i don't again what i'm saying here needs to prevent a vote on the document, but i think there are

some changes that probably need to be made, some adjustments. any other questions or comments? from anyone? commissioner ellington. i'm sorry, i thought you were looking at me. [speaker not understood]. >> i move that. >> okay, 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 is absent. commissioner sing? >> [speaker not understood]. >> the vote is 4 ayes and one abseptember. >> thank you very much. please call the next item. >> the next item of business is item 5d, update on the draft recognized obligation payment schedule for july 1, 2014 to december 31, 2014 (rops 14-15a). discussion. madam director. >> thank you.

good afternoon to the member of the public. thank you for continuing to join us. commissioners. the rops is due, the oversight board will consider this on monday. the final date by which the successor agencies need to turn this in is about a week later in march, but due to the schedule the oversight board meeting, we will do our final mailing to the oversight board tomorrow. since you've last been updated on the rops, things have come out through the workshop, through the oversight board, and other dialogue with stakeholders as well as other city departments that might be implementers of item on the rops. and there are a couple of items that were left off and then a couple of new changes that we'd like to present to you for your feedback. so, with that, [speaker not understood], deputy director of ocii will present those changes. >> thank you, director. good afternoon, co