>> 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 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.