execute against. the appreciate the public also coming and noting that and hoping this will be a successful venture and i hopefully the outreach will be bringing as many qualified respondents and i look forward to hearing what the results are. thank you >> thanks susan for pulling this together. >> commissioner adam >> susan, i appreciate the due diligence and small business commission coming out and all the partners and i do so maybe this is a blueprint as we move forward. as the port tries to diversify, but also when the business of providing service to the community. so, i appreciate all those that put in and appreciate you coming to the chamber mr. thomas. we appreciate the realizes not a one-way street and the port is your friend here were not the enemy. the commissioners will work just serving the community. that's all we do. we

are [inaudible] we have a commitment for equal unless we appreciate everyone commenting. >> i also want to express my thanks to susan. i know this was a creative approach and very much your project. i think it is demonstrating again the port's commitment to our community to small businesses and one of the other things i hope people see from this is that the port really represents a lot of different opportunities all costs the waterfront. i think that something were trying to make more and more people aware of, how diverse the operation and activities are here along the waterfront and i hope this goes a long way to show we have a nice mix or be getting a nice mix of local businesses and [inaudible] notches here at the ferry building but here at the other sites. in particular, really for the outreach and the idea of figuring out a way to

bring more entities into the port. i also want to thank the small business commission for their support on this. so, kudos to you and appreciate your effort. >> all in favor aye. opposed? the resolution 1424 carries. >> item 13 b request approval of a [inaudible] 5 years for [inaudible]. the construction materials recycling center at sewall 3-for-2 at amador street between the port and [inaudible] san francisco incorporated >> my name is ruben [inaudible], property manager for [inaudible]. this item concerns create approval of an option to call san francisco to extend the lease for college use [inaudible]. which is located in the piers 94 and 96

background area. if the option is approved the terminal lease would be extended for 5 years from august 1, 2014 through july 2019. to give you a little bit of background, the [inaudible] has been [inaudible] since 1998 were the recycling center and it operated at sewall about 352 since 2009. the company is a local unionized employee owned business that provides waste collection and processing throughout the city and has an excellent track record of recycling as san francisco has one of the highest [inaudible] of any major us city. the ecology is a [inaudible] in good stead. the terms of the lease provide for initial term of 5 years and the opportunity to exercise to extend the lease for an additional 5 years. [inaudible] has notified the port that wishes to exercise this option. the option is conditional in that the port

commission must approve it. the lease year consists of approximately 6.75 acres of undeveloped land and a buffer area of about possibly 4.26 acres. in addition, the lease contains [inaudible] provisions as a result will continue to result $70,000 per year during the extended term. port staff is proposing a rental rate of $.18 per square foot [inaudible] in the 1st year and $.19 per square foot in the 2nd. during the extended term the port will can expect to receive $1,305,000 in rent over the next 2 years. in the beginning of the 3rd year august 26 tigers 26 in the bm market reset and the rent would be increased 3% per year it's the last 2 years over that rents. proving the option to extend the term of [inaudible]

provided time for the port to explore other opportunities and develop plans to improve the site. staff recommends approval of the option. both the ecology and port staff are present to respond to any comments you may have today. this concludes my presentation. thank you. >> thanks. so moved >> 2nd >> public comment? seeing none,, commissioners, any comment? >> has this been before the [inaudible]? >> actually it is been been to [inaudible] 3 times. there were some landscape and water permits made there's also presumed [inaudible]. not initially done for this item but previously >>) has the option for dual

been before this [inaudible] >> no but there are aware that because the new lease to go for 2 years. resort. >> so they were aware of it i've years ago? >> yes. [inaudible] executed >> i love [inaudible] and i think they're great corporate neighbors, but i really think this is something nice to go before the [inaudible] just to make sure that there are no concerns or outstanding issues. >> i'm sorry dave [inaudible] did make me aware that at some point. >> are there any comments? >> no. did to me there were generally supportive of today improvements and stuff

>> i'm asking about this item and that's the option to extend and if it's been brought before the southern waterfront advisory committee if there were any comments or discussion on it? >> not that i'm aware of. >> you're nodding your head >> brad benson special projects. i think it's correct that the lease extension did not go to slide. i do know that swac is very aware of the operation and i think the staff level we thought because they approved the lease that included their extension option initially that there was maybe not that neat but the commission's direction to go back to swac would be happy to staff level to bring it back and report to you at a later meeting. >> it seems like an extension

of the lease term not a new term. >> which is life for the commission >> writes. we don't normally bring extensions >> we don't normally bring executions of option. this unique case because you know for sure brandon [inaudible] took over previous tenant that it created a pile that was not being resolved. at that point, the commission give up hope of releasing the option to come back just to make sure they were no issues going on. so this is very unusual set of circumstances we find we don't have a protocol for going to community advisory commissions on options because we don't normally come back to the commission on an option. [inaudible] after we would do but i think the reason >> recently requested that goes out to the mission to make sure that everything is okay. >> as i believe with his or we think the [inaudible] will very vocal if it weren't. if you burn a house that formalize them we can delay.

>> if you think everything is fine and, like i said i like [inaudible] i think the great corporate neighbors am hoping everything is okay but in the future i would hope that anything happening in the southern waterfront of this nature would be proper for the southern waterfront advisory committee [inaudible] >> i think what [inaudible] was trying to report on was in the community advisory committee we do report upcoming events. i think him and his mission as having a different standalone item with a presentation like to. i think what happened unfortunately [inaudible] as opposed to an actual item that was [inaudible] separate. we didn't have any sense of alarm

[inaudible] severally. is that correct? >> i can speak that meeting because the commissioner to your point would ruin was saying they're very high environmental performer this is. protocols that demonstrate job storm water management on the site. so, we can give you a high vote of confidence on environmental performance. >> i appreciate that. >> can we move on the basis that we approve this but hope before the final lease is executed there is another informational item and to say the port commission has approved the extension everyone's love you know if there's common before those extension is executed we recognize anything that is erased it may not even be an issue of the lease term images be some comment >> great idea. >>@. the lease is actually sq

did so [inaudible] [inaudible] were just saying we want to them to be aware of it but we proved just and there was any public comment >> can make a friendly suggestion that your your authorization of the extension is conditioned upon staff going back to swac and making clear that this is the intended action >> the extension option has a commencement date of august 1 which gives us time to go back and report to swac and make sure there are no [inaudible] >> is there a motion to contingent upon staff going to swac and not having any major issues,? >> i make a motion >> 2nd >> is the public comment? on the revised motion? all in

favor aye. opposed? the motion judge. i am in my comments up comments yet but i really appreciate a project and [inaudible] is part of san francisco's efforts to attain 0 waste and this is a critical component so i'm pleased that the porches helping in those efforts. >> drove one little liberty. reese, and is here with other members of ecology and his colleague [inaudible] is not well and we'd like to send our asked wishes to john and his family and the entire [inaudible] family. were pulling for him in every way prosperity effective date that liberty. >> i thank you. please express our best wishes. were thinking of him. >> item for a informational

presentation on [inaudible] opposed project to the [inaudible] 620 street historic building on or near 20th [inaudible] pier 70. >> good afternoon madame president and commissioners executive director moya. my name is still williamson and reports project manager for the word development project at pier 70. due to the project. i recently assume this position upon kathleen [inaudible] succession to another position outside the port. some glad to

be part of this but it is an exciting project. i'm happy to be here today to present what amounts to an update informational presentation. i want to give you quick overview of the next light of what i hope to a commerce today. with the help of the working team as well. you see here some budget updates which are present range of topics from sql public trust analysis down to project benefits to the poor. that i like to take the time to introduce members of the works and development team who are here today to present an update on community outreach, local contracting and hiring building the habitation mixed-use and it benefits to the city as all. we can sum up with next steps they might expect to see over the next few months. to start off with, project estrogen video from over the project already as this potentially went to the audience today but this is the site here 76 4 core building 101 on the left corner.

illinois and 20th and you can see the last ability is spread throughout the site [inaudible] 6 historic buildings and all will be rebuilt hated and they said for reuse their uses that you'll see once this project is complete include office buildings returning to their former office uses bill including building 101 performer beth on headquarters. building 104, the powerhouse between going back between 101 and 104 becoming a restaurant or other commercial use and industrial uses throughout the site and larger warehouse buildings to include [inaudible]. parks recreation other recreation uses. significantly, this budget as public access to the site new public access and the atrium of building 113 which is the central piece of building 113 from 20th st. that atrium extending through building 113

to a public plaza space beyond. the project impacts were fully addressed in each of the neighborhoods environmental act report and as such the project is exempt from environmental review. rather, the project qualifies for community plan exemption which identifies medication and improvement measures to avoid significant impacts on the project. this cpa is not our final review by statutory planning department. the anticipating a completed doctrine in the next several weeks. with regard to public trust as many of you are aware this legislation passed in years ago helped mr. tom [inaudible] before [inaudible] that allows the site to harbor non-trust uses to facilitate the rehabilitation of the structures that need a lot of help. we'll get into some of the other help that the project has attracted. from a

[inaudible] perspective but 8014 was very important to you open up that uses a mac and generate revenue. it does require ample public access is one of the public benefits as you'll see in your later there is a significant new public access component here that the port and developer in the community are very excited to see. we are currently discussing the project in great detail with state land staff awaiting final input and approval on the land use and public access used for the project and ultimately we come back to this bond to the port commission for approval ubs to prove those findings. we season these numbers before but to summarize financial terms of the project, the developer or development of 2 $49 of their equity. the board also good units equity in this project.

$4.5 million report capital funds and another $250,000 in grant funding. to do with set up that the deal set up that's that debt service repaid [inaudible] equity and rate of return show here of 14%. once the equity has been repaid there's a 50-50 sharing mechanism in the agreement between the port and the developer. also it's important note the participates in the refinancing and opportunities that would occur over laugh of the lease and the sale proceeds. the port receives a minimum rent in the year 20 even if the equity has not been fully repaid yet. that minimum is also subject to random adjustments according to index-based adjustments. overall the project is impossibly sunny for my dollar project and to cobble together

that source of funding that amount of funding has been a challenge for the team, but we have listed here the sources that make this viable project and a feasible project including has mentioned the capitals capital contributions with a smaller [inaudible] totaling 1.75 a seismic loan which will go into a moment that is good chunk of the funding for this project and is frankly been a game save jamaica's project viable. given the age of the building and areas recent nomination was seen as initial national register nationally listed location national park service and kudos to post up for that, sure which is just found out about this week. the site is eligible for certain taxpayers which amount to $50 million. private debt and equity of $39. on the other side of the ledger the uses of this money

will go come argos to relocate these buildings are significant. quite a bit of soft costs to design and come up with a plan that is acceptable from the seismic perspective and be with 6 jury of interior staff. [inaudible] and deferred port costs ran out the list. just mentioned, the seismic safety loan this is a motor through [inaudible] dating back in 1992. it was intended to provide funding to shore up and repair on my buildings which are after the home for the great divide as significant risk to the public and these funds in this case we use specifically on buildings 113 and building 104 the 2 [inaudible] in this project. the beauty if you will of the

seismic safety loan program lower cost of financing as opposed to the equity cost of financing to developers investment. it does not impact the general fund and secured by the leasehold so in some ways with the money sitting there waiting to be used in this project is tapping into that. another source of funding and you sick last year that you have not seen yet in his presentation, outside the project limits there is some improvements needed to make approaches to the project safe. this includes new sidewalks, new lighting access programs to bring the public attendance to the site and these costs are anticipated to anticipated to be in note 1.522 my dollar range and be a poor responsibility. we are looking and working with the city and with the board to create an infrastructure [inaudible] that

takes the text amendment from the site which is [inaudible] so going forward to pay back the port for these investments. we are currently working on transaction documents with the developer and making great progress. there are 2 primary transaction.7 to bring to your attention. the 1st is the least disposition and development agreement also known as the old eda. this is a document that is central and very important to this process. [inaudible]. it knows the site is as is insurance requirements are detailed. it spells out the fever terminating early and important maybe all baa has exhibits attached to it that to guide the team forward before the developer team for including a slipped development

schedule performance puts milestones out there for all this to attain schematic drawings which of the 2 commissioners 90 what this will look like when it's complete and of course development project that we would adhere to make sure we don't get too far afield. in addition to the lda the other primary document is of course the lease. just here on this site are some of the key terms of the lease. which goes to the developer [inaudible] once the other requirements have been met. it's a six-year term. the uses described earlier office, late industrial primary. some restaurants with little retail as well. the lease will delineate public access requirements. also delineate the rules that govern the public access. it describes the rent is mentioned and describes the participation mechanisms out as well as other provisions. briefly like to touch on the benefit to the port and

although for benefits to the city to the developers presentation coming up. as mentioned, this project will rehabilitate and reuse 6 historic structures that been vacant for many years. they are in danger of in some cases in regard to building 113 and building 104 of danger of collapse and present a real hazard at this moment in time. great new public spaces as mentioned. further rehabilitation and reuse of these buildings brewing living from our port n of $259 of unfunded costs. in improved condition of course fully tentative creating $50-$69 of new value that can be bothered against [inaudible] down the road. brewing the ports cash flow immediately by removing maintenance response votaries and liabilities in the long-term to cash flow

identified in the lease. i think i'll leave this slide and come back to it. at this pilot to introduce from the developer mr. james matson. also in attendance they are mr. eddie orton, eduardo mora from earlier. i like to introduce james to come up and toys more. tell you some more. >> good afternoon. thank you for the opportunity to present. were very happy to be here. i want to thank the introduction and all the work is taken on in kathleen's absence and all staffs time and effort over the last 2 years to get to this point. were very excited to be on the one-yard line and to start work soon. the project as

bill mentioned is a mix of uses. the users fall within the ports master plan and extensive land-use planning that preceded us by a number of years as a mix of office space restaurant space late industrial space in public space. right now the site is dark. it's dangerous at night it does not feel comfortable. it's essentially cut off from the community. the people will go down and either hop the fence or take photos when the weekends it's really not accessible to the public right now. our goal when verdun is at this incredibly vibrant very very frequented area that feels like was always a part of san francisco and always part of the dogpatch community. this is part of the this is it difficult for agile project. there are a lot of major

problems with the buildings.. impact abilities are right now in her current condition uninsurable. so, we intend to come in and address the most serious problems as soon as possible. in fact, as soon as the transaction documents are proved our goal is to start addressing the most glaring problems. as though mentioned, these are currently about hundred and $50 million capital liability on the ports budget.. the buildings are the type. a number of them are vandalized. they're stripped of most of the copper and require all new infrastructure. that's the bad news. the good news is it's what we do. we've had the last 2 years to get extremely familiar with the buildings. we really think that we have got a chance to get our hands dirty and have a good sense of what it's going to take to turn the buildings around. very excited to go forward with the ports and bring in the capital to

start turning these buildings around. these are a couple of pictures of what the buildings look like on the inside right now. there's major weatherization problems. this is building 101. this is the office building on the corner. this is a picture of the bricks and building 113 which is considered a lovely the most important historic structure at the site. this major problems with both the brick and mortar and the building is considered in danger of collapse and be the 1st building that we work on stabilizing. this is a picture of the [inaudible] 115 116 which shows ongoing degradation of day-to-day [inaudible] everyday. a lot of people assess this project is historic and it is. as though mentioned historic tax credits are a major part of our capital stock so we will certainly need

the standards of the state historic preservation office and the national park service to the turn of the site is the port is only going jettison requirements work with the same groups in addition to ship [inaudible] we also are working with preservation architect on our team reports preservation architect, mark byers, preservation architects on the planning department side, the port opening party approved historic resource evaluation for this project is presented to the historic preservation and also san francisco heritage. we also done extensive q&a average over the last 2 years. we embarked on what we dubbed the [inaudible] 2 years ago where number of ideas for what the project could become. we talked about 150 members of the

community and people who had been involved with this project for much longer than we had. we dropped a number of ideas that seem to be unpopular. we feel there's a very good considering among the community for the project has become the uses that were proposing. and the feedback we are not getting on a consistent basis is to please stop talking pre-start doing something. were trying to get there. we should be on the cusp. i want to talk briefly about the mix of uses. one challenge we have right now is that it's very hard to do any leasing the transition documents in place because tenants feel that there's a significant amount of regulatory uncertainty until we actually have our deal in place so hopefully this summer when the deal is in place will be able to really reassure the market that at this point all that's left is the construction execution but we haal