change of use and the seismic upgrade is there demand absolutely. autodesk is up to $16 million in investment in the pier. >> right. >> and that is where i was going interest thank you commissioner ho. >> i guess along those lines and maybe we're looking at basis rents so we have the ability to - >> yeah. we can go higher. >> wheelchair seeing the tech companies coming in and we have a to make sure we taking into consideration the leases are very, very desirable and not your typical class a office space i would a rather business owner be on the waterfront. >> we're commanding rents and this vs. a lot of offices. >> no one wanted compartment

time listed and they want to quickly based on their operations and the growth and size and moving things around that's the way offices are configured you don't want wails. >> with autodesk they've got other sites in the area and pier 9 is by far they're most popular site employees requesting to work there and i was reiterating one thing we have an extraordinary low vacancy rate so we want to see the changes we don't have a lot of options unless we get the vacancies. >> that is there's a balance that we have a lot of small businesses sole proprietor and

to, you know, a 3 or 5 percent most folks can handle that but when you get into a 40 percent that's tough for a small business we do deserve and trying to get the best rate of return but we're sensitive we don't want to drive our small business yourselves out of the market. >> one other thing i'm not sorry i understood accident schedule which your converting the office from that to triple net we come out much lower on an annual basis; is that correct? >> yes. >> when you convert apples to apples it is closer in range $5 off per square feet is significant. >> we have round house we're saying is class b arguably it could be class b minus in pier 9

the rental rates quoted take in a larger geometric area like the downtown and financial district and, you know, frankly they command a higher rate those class b's have on site security and property manager on site my a janitor you call they're at our door wondering how to help you. >> if we wanted to translate and understand the costs to us based on the square footage at some point not today, we should have a report how much of the office space has improved like autodesk that have improved it how much more space would we want our office space to be upgraded they'd dir my cash flow and every deal we're not getting

the cash in but lour for the fact their improving the property how much more improvements dakota look we've improved? a cash cow and those perspectives i'll ask elaine to look at how much further not in the capital budget a that's he dealing with other projects not about upgrading the properties to get a higher rental value but dealing with deficits like they're to fall in the water so what we are doing at improving the deals in the future i'm showing everyone this is the point where it needs more improvement but it's getting a a higher quality space seem like i don't know what we are that 50 or 17 percent on our way because

every office space whether in a terminal neighborhood the goal the item before you should be a class a there's to be a vision to get there. >> thank you, commissioners susan deputy director for real estate. we are definitely taking notes this is informational so we can come back and adjust things. some of the things to take into consideration with our office like autodesk they're a shed space they took a blank slate and turned it into what they needed if you look at the egg building it's on the water in some cases is a fabulous view but if you go into the building the windows don't open and close

and there's no elevator there's a lot of condition issues that hold us back and what we've typically done is rented them in an as is condition if somebody wants to upgrade them we'll allow them for ammunition at the round house but in some cases the condition of the building doesn't really allow us to get to that - we're not going to be the class a that's a high-rise with a doorman and the amenities but typically the port hadn't had the capital to upgrade and we typically don't want to upgrade because we want to leave that space for, you know, if you want to put in a design space you're going to want something different if you want to put in

a real estate office irving to want to put in something different we don't want to redecide what the in coming tenants will do but accommodate what comes to us. one of the reasons we have a low vacancy we have smaller spaces and at an affordable providing price to allow the diversity and we're an incubator for small businesses that can't afford across the street. for some property we're happy to translate our ideas into what could be fm we have the capital >> one other question i'm i'm not sure you we've talked about a floor but if market

circumstances change we've set the floor too high do we have something we can readjust that floor. >> i'll ask that. so we don't have a hard and fast rule about when to bring forward rates we have a practice in the last six or seven or 8 years to try to do it annually but certainly it depends on the the market conditions so a long query so, yes we can come back what the markets moving ulcer up it's easier to keep negotiating up >> that's my answer. >> and when market are coming down we need to adjust for that. >> up and down you have more flexibility when it's going up

this is a base rent vs. when it's going down if the market is moving rapidly you might want to come back and talk about that. >> i've been here long enough foyer markets moving down and that's exactly what we did. >> commissioners my further questions. >> thank you jeff and susan. >> item 14 new business. >> commissioners that is. >> well, i just asked for information in the future about our portfolio is comprised that's something that could be calendarized in the future did you understand some of the questions i asked. >> yes. commissioner most of what you asked earlier they can be incorporated into the staff report i wasn't considering that new business i understand your question for the upgrade report

on the office spaces spiel what's our vision for improving going forward. >> i didn't mean necessarily we'll also improve but the building would be specifically we'll be looking for a tenant to pit their capital in is what i'm trying to suggest not like we go ahead and we're not going to predo anything by the way, we don't know what is tenants want and i understand commissioner thank you. >> the other question when would we be able to hear a report for pier thirty and thirty 32. >> it's on the calendar to get back on commissioner president katz request how much it will cost to target it's august.

and on loot 330 and 32 reuse we're working on all the ideas that have flooded in as well as consulting with the mayor's office i don't have a timeline but hoping for july or august >> that might be aggressive but that's our goal. >> commissioner brandon. >> i have one item i'd like to request under new business recently they've been stories out and there's a not able effort to encourage the port to formerly band exports of oil and there was a story in the examinerer that followed on the heels of portland that would have brought in revenue for the port of oakland. the port staff has declined to

seek coal opportunity on an inform basis we don't have the infrastructure in practices to handle the exports would it be viable for on the port to have the informal policy of handling this material in some if i could request the staff investigates the maritime and other environmental issues if we establish such a policy >> we'd like be happy to investigate that. >> as part of that i want to note that the port of san francisco has been in the lead of environmental issues with respect to other cities and want to give kudos to the staff i'll thrilled to find out we've been doing the right thing for a long time. it was a solution in search have a problem but i want to make

sure we continue our good works so >> thank you we'd be happy to commissioner. >> i move to adjourn. >> i second. >> all in favor, say i. i. a few agent i's. >> i. objection meetings ♪

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♪ ♪ ♪ hello, i'm neiman with snovd along with the league of voters we're here to talk about prop a had will be before the votes on june thirds that's a gentle obligation bond to improve the pedestrian safety and the emergency response facilities the bond breeders could upgrade this cellar water system to improve and ryan white the police department and fire departments and build a medical examiner and build a scenic motorcyclist unit and crime lab praep requires the jurisprudence obligation committee to oversee the fund the 9 member committee is controlled by board of

supervisors if you vote yes, sir. you want to law the city to sell obligation bond to finance the seismic ryan white of the emergency response facility if you vote no. you don't want to law the city to accept bond to finance the carbon monoxide and improvement and seismic ryan white of emergency and response facility. i'm here with george the prop a spokeswoman welcome and joined i by the activity and proponent of the measure i'd like to start with opening remarks from each mr. ross one way or another would you like to speak as the proponent >> thank you teaspoonful for having me. my support the prop a and i understand with the mayor the entire board of supervisors progressing and converts and

business community and he did sierra club in supporting in it represents a critical investment in disaster response in 1906 san francisco earthquake we r had the woshgs or worse disasters did you that wasn't the earthquake but the 3 days of fires that followed that destroyed 80 percent of the city and left countless dead and the community they bound together and built one the emergency water systems in the world and that water system protected the city for a sirpt by a century later it's deteriorating prop a involvement in taking the system and voovt in the hydrant and pipes that deliver the water to the critical areas this the the

20th anniversary of the 199 earthquake and the mission blaze that's a stark reminder to give me itself firefighters the tools they need to respondent so i mind encourage everyone to go to the polls and vote for prop a. >> we believe this is the wrong time to do this it's widely recognized the number one issue n in san francisco is the lack of affordable housing many people are leaving the city and here; right we have a measure from city officials that doesn't budget they now want to ask a huge $400 million borrowing money basically, it be paid off by property tax and half of those will be passed along to

renter that will hit everybody and the city leaders don't worry about this they make more money than most of us the san francisco chronicleal regarded that politicians make over one hundred thousand a year and the average city salary as of 2008 were $120,000 so the people, you know, george mentioned larger are not heard they'll feel the pinch but their bad budgeting and failure to plan has put them in this situation there needs no be more cost analyze only 4 people died in the 1994 earthquake so i think more lives can be saved by measures. >> is this the right time to

visit 90 in our emergency awareness system when the city is recovering from the rigidities and it's critical for the disaster response it's one task it's easy to see say this is not the right time scientists have told us another large earthquake will be hitting san francisco we're sitting in a dangerous spot in the world for natural disasters to offer let's kick this down the road e.r. over the a long time this is irresponsible. the term broikt u brought up the issues i'm here to talk about prop a it has nothing to do with salaries or anything else there's a government bond

oversight board that oversees the resources targeted investing in the interim water system interest it's toward retrofiting fire station and things like the crime lab and motorist police when they goat to other when recordings can't this is not something we need to phase in overtime without raising taxes >> star child is the the right time it visit in that preparedness. >> it's the right time to budget the city leaderships leadership has not budgeted we want to start yesterday but you mentioned the property taxes and this leads me to an interesting part the proponent i quote prop

a will not increase property tax but the balance the neutral committee that charges to write up this says that prop a will permit the landlords to pass 50 percent of the property tax to tenant and i know compare those who won is false so you're going to trust the battle committee or where are they going to get the money the way to pay for it is not by paying and soaking the people to race their cost of living by making san francisco less affordable maybe have the people in government give back lgbt a little bit and cut their salaries when people are living homeless. >> mr. ross is $400 million in

bond measures the number that's necessary to shore up our issue. >> with the bond oversight committee all that money is tracked as it is spent and there's recycle oversight of each bond each burglar or dollar of the $4 million is accounted for the city policy is one of the most responsible city policies that we don't bore new money for both sides without closing out outstandingly u outstanding so we pay back and retire the old debt to take out new bonds and by doing so build a new hospital and 12 new libraries without the accommodating the new debt so this is an extraordinarily

successful policy. so far as the 4 hundred million 16 hundred million towards the water system and to the crime labs this is critical in the bay area so responding when you have chaos breaking out after the natural disaster and you've got people getting the tools that's why the excessively and the others across the city have saying get it past >> it $400 million the amount you'll spend. >> the issue is not the cost but where the money is coming from we don't think it should be taken off the backside of the taxpayers. >> it's being paid back by oral people the city has a budget

bigger than the entire state and they only take care of 49 thousand miles if at the tighten their belts and reduce the 6 figure salaries they'll have plenty of money like building revving fits by increasing the property taxed this is what this measure does. >> thank you. we have a little bit of time left i want your final thoughts mr. ross firefighters. >> thank you so much for having me again. prop a which invests in the critical structure for firefighters and paramedics and they have the tools for a

worst-case scenario that hits to our our city that's an essential measure when that disaster it's not not george or star child who responses to safety lives our frirz and first responder we need to make sure our water system is functioning and heed the call as a city that's why little mayor the entire board of supervisors the councilmember ferraro that's why the republican party isn't opposing this one we have to pull together as a community and when they identify the issue hey, we've got to get this done we live in a place that's vulnerable and prepare for the

worst-case scenario so we're ready to respond quickly and give our firefighters the tools and star child any final thoughts >> yes. this is so important why hadn't the money been budgeted year by year but wyatt wait until 2014 we're going to raise our tax to keep our 6 figure salaries every agency wants to increase their budget so the fire department and police department their behind the mayor but the former mayor willie brown said something in his solemn in column in the chronicle. talking about those projects defending the transbay terminal and the huge costs over rents he said we also knew the real estimate was under the costs like no bay bridge or massive

project in the world the first budget is the down payment if people go economy the real cost nothing would be built start digging a hole with no alternative to fill it in i think he was helicopter. that's i think they're waiting for an emergency we have to raise property tax and hopefully, people will forget how to budget and rewarding them and their going to the voters and asking for money >> thank you. we hope this was if anything for more information please visit the sf election.org and remember earlier voting is at city hall from 8 to 5:00 p.m.

and if you don't vote early vote >> we want to thank the following members of sfgtv staff for covering the meeting today. jessy larson and jonathan, thank you