resource to have available for us. it's a great place to live and grow to meet others people doing something similar it's great for incubatetion and find other people to sell to. and i hope you support in next step. (calling names) >> all those people who make food and nobody brought anything. >> i'm carl the owner and chief of the break through suburbia i i've been with electric for the last 3 years and i'm here to support the construction of new kitchen. i want to say that i'm excited for the new kitchen because i

don't know if you've been there i'm sure you can agree with me the bakery could use a facelift. so my expense is very great they've been supportive and i can't wait to see the new kitchen being built and hope that that kitchen is available tomorrow but if not that it will be built as soon as possible. thank you very much >> good afternoon. acting director. chairperson johnson and commissioners. i'm dr. verna hon i didn't cut. i must say that all the

individuals that preceded me made me hungry the sweet potato he pie i haven't had lunch. on behavior of the cac i want to support them as the caregiver of the new facility. for over thirty years with a long track record of providing services in the community elliptic cook rasy has provided opportunity for individuals to become vendor and business owners as envisioned. under the elliptic management we expect and are confident it will become a beacon of hope in the southeast sector in san francisco at large pr we thank

scott madison for his wonderful management and lastly the cac takes the opportunity to excess our gratitude for providing jobs to the kiss franchised and creating business opportunities such as a being presented before you commissioners today so, please join the cac to make sure that accident activities are being disseminated correctly for the public. thank you for your time >> ace washington. >> you know after all my years of going over the hunters point first of all, i want to condemned scott i didn't know he ever the head of the organization like that he has integrity and respect and

honestly to talk about this at a meeting to talk about this i didn't, he has the stamp of approval (laughter) seriously i didn't know that if emphasis integrity was shown over in my community where our community would be much, much better. i'm amazed. a production at this magnitude would have ail the intermits and races working together and they had something to eat two i condemned him. i see him as a chairperson he never once mentioned of the project here as far as the leverage but i want to commend you scott for that. the stamp of approval.

i'm very much here supporting that with all the entities involved this community project should be a roll model all over the country being in a small space i commend you and i'm very much supportive and looking forward to doing a tour and disseminating some of the information to the community. congratulations >> thank you very much if there are no further speaker cards. i'd like to open it up to commissioners >> commissioner singh. >> i think that's a wonderful project i don't want to say it too much you commend with scott madison so i move this motion. >> thank you very much i do have a couple of questions but we'll keep the motion and maybe get a second. actually can we leave the second

open for a second. thank you. i have a couple of questions. okay. i first commissioner mondejar >> can you ask annabel maybe. >> this was part of our presentation can you expand a little bit what you meant about the almond waste. >> so the phase two of the shipyard it will be modern with the collection system there are like tubes underground and the waste b will be sent so you'll not see trash collected so what i meant even though this schematic designs are being presented and heads of phase two development we want to make sure

the buildings can be tied into the future system. >> okay. thank you. yeah, so a couple of quick questions. looking at the schedule i have a question about the structures. i'm getting towards the long term property management plan and in the schedule of future items related to the kitchen replacement is there any point where we talk about the lease and such i mean, it's not about the schematic design >> you mean leasing to the entities. >> yeah. what's the structure for that i didn't see it into the upcoming actions related to the space i'm not sure where that is. >> so there are - there's kind of like a scope of work that has

to do with king how ownership and management for those building will be so we've determined one property management plan that's the agency ocii will be ownership is building and transferred to the department of real estate. we can't keep assets but as a second step we'll make sure that the martin luther king entities has the background and history will be managing the artist assets so there will be research conducted in terms of what the potential scenarios are and bring that forward to the commission and educate you on what kinds of approaches we're looking at. and we'll be doing that in collaboration with the

department of real estate because there will be additional information around that >> the cookery is a tenant what's the name of the management structure that i mean just for that impacted by the relocation so would there need to be any adjusts to that lease. i need to know >> right now the elliptic cookery has a lease with the building managers like in building 101 and the other one we're looking at the lease for the cookery we're looking at basically transferring that lease for the new building on a temporary basis and once we look

at the bigger kind of management of all the artists assets we'll revisit that decision. >> related to the design real quick are reusing the mode last year construction as a quirk way to get the building built. >> i'll have jack talk about that but timing was one of the factors. >> okay. >> timing is definitely plaguing into that. we took quite a while to come to the conclusion that the kitchen would be build on got there for a major and a half where the original assumption thinking it there would be when we got into the details of designing the

artists building putting the kitchen and figuring out how the food trucks simulated the use worked or not worked with the studios it became apparent it noticing was not a solution. we showed the elliptic cookery off-site locations they've strongly preferred to stay on the shipyard. we started looking at potentially putting in 10 one there was a catering kitchen but that didn't work out so ultimately we ended up with a site that we have. by the time we got there the drawback was the timing the time it will take to design a ground

up building and get a permit from the city and get it built and occupied in time for the overall schedule getting the artist building built we didn't start the artist building until we.com e demonstrated building one 10. so the modular building we worked open the center you've approved previously in the past so we started conversations with that company a staff person moved to the company they've done kitchens in the past. this is an efficient building and it's really ultimately the timing of it this is what drove us >> the last question i'm not a food expert does the space

represent a replacement or is driver's license more capacity ♪ kitchen for - >> it receptionists a replacement. >> okay. thank you. >> you're welcome. >> all right. thank you there was a motion to approve this item is there a second >> i'll second. >> thank you very much. any further questions or comments >> martin call the roll. >> commissioner ellington a absent. commissioner mondejar. commissioner singh. commissioner rosales. chairperson johnson. madam chair the vote is 4 i's and the next orders of business also rising an agreement with the mercy hospital a california limited partnership in the amount of $14 million for the

construction of 69 affordable housing units because one managers unit on transbay block 6 of an air rights list and adapting environmental finding pursuant to the environmental quality act and the discussion and action resolution number and the ma'am, acting director >> commissioners this is the last approval at transbay block 6. the item before you is the construction of 9 affordable housing plus one managers unit and this provides the do you see the person in court here today to construct the development and puts in practices our long term availabilities and we'll have our colleague present this to

you >> good afternoon. i'm elizabeth development speciality and as sally mentioned i'm here with several requests for the affordable housing development in transbay. as you went this is a transbay project. the transbay project was adapted in 2005 with the purpose of redeveloping 10 acres including block 6 that were owned by the state of california to construct is new transbay center and meet the assembly bill requirements. this is an enforceable obligation for the successor agency for the units are affordable and occupied by low, low and moderate incomes. this is an enforcement or

enforceable project that includes affordable housing. so in july 2011 pursuant to the implementation agreement it was requested that the development teams to develop a mixed income on blocks 6 and 7 in the project areas. in december of that year after a competitive process staff entered into negotiations for blocks 6 and 7 with the development team of mercy housing california last year d da developed a project with block. ocii now has to occupy the

contract for the units it will have one and two bedroom units and contain retail space on the corner of folsom and beale streets this is the site plans for blocks 6 and that. as contemplated with the closing the financing the developer is requesting the executive director to enter into a 75 year air leases with option for others years. this is the element partnering created as required for protecting housing tax creditors. it has two sites connected by an additional. the two sites will share an ground parking garage and the schematic design was approved in 2013 and xhormz to the

redevelopment plans and plan document. the development plans includes a 4 hundred and 9 project consisting of a podium building on the street. the affordable housing projects which will be an 8 story building with 70 units and an affordable project an block 7 is affordable buildings on the stacked houses along the north side of clem's street with a totals of 77 units a shared parking garage and shared open space on block 6. scalp owns block 6 and prior to the affordable project the air rights particle was located for the project to ocii and a ocii

will enter into the air rights lease. ocii will own the air rights and at which time the ownership will transfer to the city with the mayor's office of housing as is successor. the shared open space and the underground parking garage were constructed and this air rights lesser the final approvals and subject to the commissions approvals the project will begin construction in may of this year. the blocks 6 and 7 affordable projects provided 589 parking spaces. and the reduction is for the possibility to reduce to 8 spaces if the funding 0 space is not secured. those will be shared by the

affordable projects for marketing reasons scalp will pay for the construction of 25 extra spaces and increase the 85 to one hundred and 10 parking spaces. the project area has no minimum parking requirement and has a maximum of one parking space per unit. this will not result in the market rate exposing the parking space for one unit. the tenants will have access to parking. so the affordable housing will not have parking parking costs for block 6 are typically more expensive duce to the underground parking garage. project costs exposed available

sources as the affordable units was maintained. this is not considered a change or the approved design because the number of parking spaces overall is not changing neither will block 6 or 7 precede the parking space. many places have little to no parking and doesn't consider parking to be important to the residents in this area. transbay exceeds those in other housing developments and the mercy expects the households will have a wide elevator of car sharing services there will be car sharing spaces in the garage. the transbay garage will have a large bike space for 48 bikes

for the affordable units they've requested a totals loan of $48 million and this loan amount was approved by the loan committee on november 15th of last year this will be opportunity by affordable housing fee paid by goggling open and they paid for the affordable i'm not sure. therefore pursuant to 9 d da the loan will include the amount of expenses as the paid portion of the loan the remaining part of the loan will be used for the construction costs as well related costs. after the loan was approved there were several changes set

form some additional loan modifications they were paragraphed on may 21st, 2014. first, the changes that necessitated that request the rental income was reduced by over $70,000 due to the medium income and which reduced the project depth and mercy selected an investor they completed that analysis as required by you about is irs requests that a project is repayable at the end of the term loan they don't generate the cash through it's not usual for them to be unpaid and accrued depending on on the

terms therefore third they made a h p funds the project was previously denied and is the likely to be awarded funds because of the readiness as well as the criteria change. those funds will mitigate the project income, however, mercy will not receive the prior construction information. therefrom the request to the modifications approved we loan committee are to allow the repayment of residual cash waterfall so they can be repaid. and to allow mercy is subsequently provide a guarantee

from master rent to investors without that the investors can't include the cash flow there's no security for that cash and it will generate $126,000 if depth for the project. also the request to allow the affordability restrictions to go up to a maximum api to achieve a positive cash flow when all existing debt is paid to conform to the true depth analyze. the current financial modeling shows you the trick or treat at the 3 percent so the director of the loan be authorized to reduce it to zero pressor to the satisfaction of the investor for

the full 99 year of the air rights lease. it was approved for the parking to 13 spaces to mitigate cost overruns. at that time the loan committee asked that the number of parking spaces should be increased up to a moment of the 38 spaces. while mercy is confident they'll get the funds that will allow the 38 spaces the parking spaces is limited even with the h p funds and future if we don't get the funds the loan committee recommends the mayor's office of housing and community development director give the authority to allow the project to reduce the parking spaces to no less than 8. which wilful fully close the gap

of the fund. the loan requires this to be - at this point the staff is also requesting authorization of an air rights lease. the air rights lesser with the standard terms for affordable housing and provides an annual rent of 10 percent rent of the property. the air right is a base rent of 15 thousand and includes if not paid a a recital relentless the $15,000 represents because they're made prior to the project having low cash through the staff doesn't see any cash flow forces 15 years it's on schedule to begin schedule and

staff currently anticipates the fund to allow for the block 7 in the middle school mid to late 2015 to prepare to come back to let staff for the block 7 funds later this summer. that concludes my presentation. we have here in the audience barbara and sheila both from mercy hours we're here to answer questions >> thank you very much. are there any public comment on this item? >> in madam chair no speaker cards. >> okay pets opening up to discussion. any questions >> yeah. how many promotions we have done for us over the years. >> i'm not sure what the total number of projects but we can

get it information. >> how much we have a loan for others parrots of project. >> i don't have the total amount but we can get that. >> and they're doing a good job i want to just notice - >> okay. >> i want a further clarification on the parking space. i think i read it and i think you here you sigh correct me if i am wrong that the parking spaces for the affordable context are proposed to go down or be reduced >> yeah. but not for the market rate and if everyone can take transportation and sidecar and hoover why wouldn't that be applicable to everyone? >> well, the reason we're able to do it for the affordable side

in order to safe costs the market developer is going to pay for those spaces so if we paid for them that's not a way to reduce the gap but the market rate and parking we analyzed this was appropriate their within the design guidelines that has a maximum of one parking space per unit and this is well below that that's less than 10 percent will have access to the parking so it's within our guidelines. >> so i understand maybe the financial explanation but i'm talking about a public convenience prospective that i mean folks that live and everyone has use for parking spots and transportatn.