in fact the waters and buildings just quickly a little bit of background for the exercise really simply you know we're looking at a very generic look at san francisco buildings in this strict that are market supportable given the context of day today, it's a high-water mark it's the high technology part we're extremely located well with the downtown area but basic rewe've got the revenue costs at a high level across the buildings and look at the height as you go up a building to generate a overall net income value and then capitalize it there's a lot of assumptions

when we look at the evaluation project we have to look at trades so it out put of the model as you look at the scale from the first floor to the 50 accounting floor we're looking at similar buildings for new constructions in similar book stores locations for our conclusion. those are numbers their the current context and reflective of the evaluation in san francisco. yeah. real quick if you have any questions, i'll be happy to answer them or address them later on >> thank you. sir >> i'm going to turn it over to scott from the transbay joint powers authority transbay joint powers authority to talk about their funding program.

>> sir. hi good afternoon scott with the transbay joint powers authority i'm there the first phase is the construction of the center itself curling in the downtown we broke ground in 2010 and finished the demolition of the form terminal in the fall of 2011 last february we completed the excavation roughly within beale and do you only we're about three-quarters of laying the foundation of the transit center and our next construction progress will be the beginning of steel construction starting in september so roughly a year from now a skeleton of the facility that emerges from the

ground. we do in july of 2013 have a to do a budget adjustment to phase one it was roughly one $.6 billion that was increased by over $310 million that was primarily due to account for changes in two areas we did a risk and jushth will assessment of and at that point the project with the conceptual design phase so we're going to do another adjustment so we did a subsequent jushlt assessment of in 2012 that i identified approximately $58 million of security enhance times we added to the budget earlier in 2013 we

did a risk assessment of that showed or recommended was some significant increases to our reserves so it relates to the strength of the construction market there's quite a bit construction downtown surroundings the transit center we're the victims of our own success when people want to build for buildings it's created a competitive environment. at the same time when we did that adjustment in july of 2013 we identified one hundred and $10 million of net revenues those are listed on the chart here. we have about 12 acres of land that the sfaifk e state of

california nominated we were able to sell off those and the revenues go back to the project. again, the strength of the san francisco economy has increased the strength of the land sells the prospectives in san francisco is increasing that added to the adjustment we also got additional money from prop k there's a certain amount of money but it flows over time so when we're accelerating those funds to use them for currently construction costs there's a downtown rate the transportation authority found out they're lower than anticipated so our prop k revenues increased by $40 million. we had a lot of money in new

revenues and the 3 hundred and 10 adjustment that leaves the monies that were going to be receiving from the mel ruse $28.5 million towards the construction of the park and another 2 hundred million from the mel ruse. phase two is the tunnel it connects the tunnel into king and the new transit center. on this map first of all, you see alignment 4.3 miles going up targeted downtown i up to the new trait center another thing the need for the d t x extension a lot of people that don't use caltrain they don't see that but

you'll see on the slide the area half mark radius there are one hundred and 80 thousand jobs compared to other figures of jobs open fourth and king about a tenfold difference the other thing on the aerial part of the city this is a few years old the area north of market is built out not a lot of room to grow it's a long term grossly goal to shift into the south of market neighborhood. you saw this slide earlier during adams presentation but it shows that we're having

tremendous success many buildings underway and another 8 residential buildings south of the district plan in the rincon point hear so the shifting development of south ward this is a major generate our of the revenues for the attributing project it was parcels we're able to sell and those revenues go toward the funding of the project and a tax increment from the tjpa that's zones one and 2 the 6 red dots are the parcels that were up zoned so again, it's been discussed that up zoning allows for taller building to be built and their worthy a lot more money and in

exchanges for the benefit they have to agree to participate in the cf d special property tax so this specifics we'll receive 82.6 percent of those revenues. and just before i go into those numbers in a little bit more detail quickly we've had apace two budget that was at roughly $2.6 billion and the revision we found the bid approach that amount will increase to $3 million and it's potentially a private-public partnership be weeping we'll reduce those costs but a $3 billion it's

$130 million at to accommodate one of the city's goals they're interested in bringing the tracks from the south bay underground in mission bay street and that $20 billion allows us to build a tunnel so if the tunnel goes through it will be easier to build and list disrupt to rail alienations. side to side to the 2008 budget in the middle column you have the regional plan bay area that's the transportation plan that was passed by m t c in july of 2013. we had a big success in the area that relates to the overall fund we were designated as the regional priority that was a

long term goal for tjpa it's the largest funding stream that exists and the way it works your regional metropolitan planning committee they designate the priorities our region a typically carried to new start priorities based on what the region as historically receives. many, many years it was bart to other agencies that was from the planned bay area those two slots opened up one went to d t x and the second bart so we're going to receive $600 million the way we assess those is to see how long we quickly we work with the

city aligning up the other fund. and this m t c committed to providing $300 million for the bridge toll for the d t x that puts us at $950 million we had one hundred million that was funds we've received that's a total of over $1 billion and the way the numbers translate your heard earlier the 9 hundred and a 98 net bond precedes from the cf d we've received 82 percent that's 8 hundred and 18 million if we use $18 million that will leaf for phase two will be

$618 million >> when you add those together we're at $196 billion. >> just a few questions now we're on slide 36. so the total current projector and let me back up. this project to the transbay terminal even though we call it phase one and two we're not going to build something massive and not send a train to it, it's incongruous acceptable there's no way we would agree to build that terminal without the few information we'll wish having

that train go throwing so fast two the fact on my roll at the m t c helped to come up with a reasonable mou stating wire doing the rail to downtown san francisco when regionally there was a push to say fourth and king was good enough and we put our foot down and is said no way. we're on a positive path i have serious concerns about the funding we committing to making it happen but because the significant costs increases we're seeing money funds that would have been used for d t x moved over to the terminal itself. in terms of the d t x the current budget is $3 billion

>> under the traditional design bui built. >> yep. and you said how much >> the of 50 in new starts once we'll move through the $300 billion increases for m t c you add the $600 million there's a a couple of others to rounding run through. >> obviously the funding is contingent on the bridge toll increases b will have to go to the voters. >> yeah. itself it path forward. >> absolutely and also with my there's not on a larger transportation project in the

country that hadn't costs in determining whether the highway system or the bay bridge we understood the costs change by so in terms of looking at accident slides number that 36 phases one and two in terms of the proposed use of the mel ruse cf d there's $118 million available for phase one and two and this indicates that $618 million will be going to phase one and then the phase one in terms of the cost overruns that's why the funds are going to phase one. >> it's due to the two adjustments i've mentioned the rb a and is additions to our other project. >> otherwise would have gone to

downtown extension. >> yeah. >> the $618 million for phase two when tjpa analyze this the train box being built in is that considered phase 1 or 2. >> that's where the $200 million will be going to its going for the component o exponent of the d t x but for the train box. >> is there anything in the transbay center considered phase two or is that phase one. >> theirs certainty components in the transbay center not being built out we have our senior program manager here to explain. >> i want to know what's need

insides the center that's phase two. >> i'm the senior program manager for the tjpa. if you consider phase one for on the populations then the green box is part of the phase one is for phase two use. >> right but being paid for by the phase one budget. >> the terminal box is much more. >> i understand. >> so there are other items that are phase one and two are the escalators and elevator we go up and down and some of the electrical systems that will be used by both phases. >> so my question is in terms of what's inside the terminal center out the the phase two budget kwhats the cost?

>> 62 hundred, sir repeat and in terms of traditionally when we think of the phase one we think about the train so anything within the transit center out of the phase two budget what's the total amount of money? >> i don't know that information. >> i'd like to know that information. >> can i just. >> we went over - can i just- so we talked about the phase one and two budget what might be detailed for the box and terminal i heard we're detailing some of the security cameras the

trains might not needs that details but nothing on the actual that building itself you could. >> there's nothing being delayed supervisor kim our correct the deferns over the electrical elements required for phase one that's for phase two we're going to defer that to phase two the cameras in the lower concourse we're striving to have those but deferring to phase two we put the cameras in the train box but will be obsolete. >> if i could get something within the four walls or how many other walls that are being

paid for to be transparent my concern being the given the increase in costs for phase one every time costs increases in phase the one phase two costs come out of that. we're going to get this amazing project done and it will be amazing for the transportation please get those to us >> we'll be happy to. >> i know we've been and, of course, this is a question for the colleague there. >> some of the changes that have been made to the phase one project physical changes and changes to the budget due to the costs increases the removal of the park from phase one and then

or the issue of the park and the public design amenities can you talk about that. >> yeah. the park is definitely stale part of ptosis phase one and ken rich said we're working with the mayor's office to get the park opened cellular a they and that's scheduled late 2017. >> how is the park being paid for . >> we're going t work with the mayor's office. >> i've heard $29 million gap is that the - >> the total amount direct and indirect. >> the total amount it $37 million. >> so through the grapevine you'll meningitis the $37 million for the parks will or may come out of the mel ruse

a that's another $37 million less for the downtown extension is that fair. >> you said 16 is an equivalent amount. >> so 618 minus 37. >> you see sort of the pattern of my questions i'm concerned with since this project is it will be out of the ground zoo soon but there's plenty of opportunity for cost changes. i'm going to predict every time the cost change or some increased costs that's we've got this pot of money that would have been $818 million to downtown and now down to 6 hundred plus million dollars now the shortfall from the park

comes out of the mel ruse you down to 581 i see the number diminishing and diminishing further you know urge to get to the next page and i know you'll get there i know you're as passionate about the dp x i want to make sure we're not shooting ourselves in the foot by viewing the mel ruse you funds instead of trying to gaud them, you know, zealously for use in the d t x, x but use them to make up shortfalls i'm concerned it might be used to pay for the parks. it's the easy way out to take it

out of the mel ruse >> i agree with you supervisor wiener we're surfacing a robust market we've got $6 million for the building of the transit center. it depletes the number of contractors that are able to bid that's if you have less contractors bidding it becomes harder. we've come up with a thirty miles mitigation plan cost reductions but i agree with we need to deal with the construction confidence increases >> the costs so in addition to the park issue we have to go into the downtown extension funds to make up the quest some

of those costs are toubl to me a to make this a masterpiece so talk about the measures. >> and what they total in costs. >> the proposal the plan we presented to the board at muni it talked about the phase two. >> is that - that's going to be paid out of phase two. >> it's deleting the costs. >> it will be paid for out of the downtown costs and if we need it this is electrical work that is above but we during phase two we'll very visit it and see if it's necessary or not the park is $5 million so we've looked at the need for phase one

and reduced our scope for the information technology and the irrigation plan we know what we need as he mention we've deferred some of the equipment and the xhaerments from phase one to two we want to make that simpler. we also removed the glass concrete covering this is g f r.c. to reduce concrete make it nicer we'll paint the concrete and take other measures to achieve some results. we've also number two, of using stainless steel we're going to use the galvanizing steel. we are reducing our ceilings

designed to make p that more off the shelf and designer made. we're redesigning some of the barriers on the bus tech it has a steel barrier and we're going to replace that by a steel barrier so a lot of the cost reductions the public will be able to use the park and this transit center >> it won't look as good. >> well, it will be very nice. >> in terms of those cost-cutting measures that will impact sort of the aesthetics and experience that people not the transit experience but the experience of people insides the center using the center what's the total costs in terms of the downgrading of those aesthetic amenities.

>> presidential approximately 10 to $15 million of the numbers it's in that range if you take the electrical scope. >> so we'll get that list so see the phase two and some of the amenities and the total of the amenity that have been downgraded to save money? >> we like to call it valley jerry. >> if i call it either one. >> supervisor kim. >> thank you. just wanted to talk about since we're talking about phase the one budget the largest increase was not the construction but the r v and the security plan. i know it's a point i've brought up over and over to the joint

powers authority board i know we've it look at outing how to take a to the a the increases largely match the dollar for dollar that's a place we should continue to examine the board has questions we had one consultant look at the plan and it's a difficult position for us we don't want to sacrifice security, of course, a very dense area of downtown it didn't help the department of homelands security for what that means it's important to look at that. i'll add that i'm happy to see we'll have an altitude oversight that manages