city engineer we've had a couple of sidewalk inspectors and we've spoke with them both and they've said they can't make a determination whether or not the sidewalk was unsafe and doesn't remember saying anything i'm sorry not whether the sidewalk was safe is of but at&t will have to make that determination. and again in exhibit h they note a dpw inspector stated that - let's see making the site unstable again that was no a dpw determination only the sidewalk

needs to be cleaned up. i want to acknowledge a miss statement in that is included well it's not necessarily a miss statement there's an uncertainty who is responsible for the area immediately adjacent to where the box it is proposed in at&t brief they've included an e-mail stating this is a paper street so the adjacent property owner is responsible for the maintenance we believe that's true, however, we've found inconsistent in our record we're in the process of confirming with the city attorney's office to get the original ordinance it refers to a list of locations we believe that this location is not on the list that were accepted for maintenance we have

consistence we have a record it shows the paper street is dpw's responsibility it has no direct bearing on the decision tonight because whether it's dpw's or the adjacent property owners responsibility it should be cleaned up but i don't know that it makes a determination of the safety of the at&t's facilities i will lastly state the landslide that's been received to d occur to the right of the site and the notice to repair was issued to mr. lee to the right of the site not the site itself and does that mean it requires more extensive

strengthening of that slope? >> we actually have one of our geotechnical engineers that look at this if it's dpw's responsibility but it's my understanding that the stabilization of the slope it's brown business owner performed after the landslide this is more simply erosion of the landslide and there could be stabilization required but not the bolting into the hillside we have his first assessment. >> ms. short one yes. that i have is whether you've evaluated this permit under the new ordinance. >> not yet the new owners took effect on saturday so if the

boards determination was to deny to uphold the appeal then we would re-evaluate whatever at&t submitted to us under the ordinance. >> i don't think it's so much this as the fact we need to review the case based on the order owners ♪ effect we've heard it after last saturday >> as i understand after discussing dui discussing with our city attorney because there's a permit that has been approved from the board upholds it was approved prior to the new ordinance taking effect, however, if it is over turned then, yes we'll need to look at everything in light of the new

ordinance. >> there was no permit because it was appealed this is the review of the permit so it has to be reviewed under the new ordinance. >> that's also been the case. >> i stand corrected. that presents a difficulty we don't have the factors and dpw hat evaluated it. we don't have the information to apply the factors and neither do you so >> well, actually i know that the dpw has to issue its order for how the legislation is interpreted but the legislation itself that has requirements i wonder in commissioner hurtado to your question if you want the department to address the current permit as it went to the

review process in the legislation itself obviously, the order has notary republic not been issued by the requirements of prevention itself. >> i thought that was what i asked and you said no. >> we haven't evaluated it but the new ordinance essentially requires additional initial outreach and assessment that didn't take place in this case. >> given that what i think oh, are we done. >> we need to ask for a any public comment on that item? >> good evening i don't want to take much time. i spoke last time here. my name is tom. i live in the neighborhood been there 15 years. from what i see we've got a site

that's approved i live there, yes it needs a little bit of work. you know, we have a community we have neighbors that have quicken you letters and a list of people that said we don't want this box at the end it's an eye soar and we have a spot down the block approved by the neighborhood but here weer and we're back and forth so i want to leave it at that i appreciate your time. as i mentioned last time i was here we put a lot of work into the hill we talked about but for e beautifying this spot with that, i appreciate your time.

>> thank you is there any further public comment seeing none, commissioners the matter is submitted. >> when they implement and they have to do additional notice there will be someone else that is not happy so but i think we have no choice but to continue this until the department has taken into consideration. >> my only issue is the amount of time it will take do you have any indication when the dpw will issue their guidance? >> i can't say for certainly but we're gibtd to do n it

westbound 60 days we have a draft we're reviewing it next week in its final form our intention was to essentially, you know, put that out for review so i think we are well within the 60 days is our goal but i can't say specifically. >> august 27th? >> i would hope before that i think we understand that lots of people have an interest in moving forward and getting those cases resolved so we're not interested in dragging this out and have a draft order that is pretty close to going forward. >> ms. goldstein this appeal

was filed april 2nd am i correct. >> it was filed april 2nd. >> well, i would move to continue it in a relatively short amount of time there might be an order imminent i'm concerned we issue a result in the amount of time that is reasonable. what's our calendar looking like in a month >> the first meeting in august is on august 14th will 13 before that we're in july 23rd there is 15 items on our calendar august 15th majority at&t permits. >> i will be missing the august 13th and the august 20th

meeting. >> okay. then we will not be having an august 20th meetings it's unlikely we will depending on commissioner hwang's appointment i recommended you not hear this so august 27th is the next best date. >> okay. so that's your motion do you want any written smiled e submittals or the department to speak. >> yeah. i want the department to speak to the next owners and hopefully, the order will provide guidance. >> so the continuance will be the department says whether or not this meets the requirements.

>> yes. for the criteria. >> i will be occurs to see the order whenever it's done. >> mr. pacheco. >> we have a motion from the vice president to continue this matter until august 27, 2014, to allow time for the dpw to clikd conclude it's analysis on that motion. commissioner fung. commissioner hwang. commissioner honda and the vote is 3 to store this matter is continued until august 27th. >> there's no further business. >> we're adjourned

good morning everyone to my right is supervisor david chiu and i'd like to acknowledge staff today and i guess first before we begin colleagues is there a motion to excuse supervisor breed from the meeting today. all right without objection and madam clerk lisa miller are there any announcements you would like to make? >> items acted upon today will appear on the agenda unless otherwise stated. >> thank you and madam clerk can you please call item number one please. the schlage lock

project. >> what we have before us today has been informed by an extensive community process the participation and feedback began over 13 years ago and we've had exactly 18 public meetings about this project everything from design principals and design controls as well as community public benefit. after the closure of the schlage lock factory -- to develop a plan for the reuse and revital ization and concluded with the adoption of a redevelopment plan zoning changes that detailed a master plan to help guide change on

this particular site however with the demise of the redevelopment agency in early 2012 it's required us to reassess and give a fresh look at the communities goal for this particular site. it's been challenge to move this forward but the community and especially the board members have been flexible and rolled up their sleeves to work with us to reenvision to make this project a reality. what you have before you today includes a grocery store, new infrastructure and transportation improvements new public parks and open space affordable housing restoration of the historic office building payment of development impact

fees and a special transportation fee and most importantly a significant investment in the community. this project has had true community support from the beginning and there's only not a day that goes by that i don't hear from neighbors about development projects that have been going on in the district. i've never seen a project in a neighborhood like this one that's come together to shape a project that has not only good for the neighborhood but really good for the entire city. countless hours working with staff on every component of this project and while the

disillusion has resulted in many changes and compromises the community and developer has been with us every step of the way so colleagues i hope you will begin to join me and we have a couple of folks that are going to be presenting here today. first from the mayors office and then we'll hear from the budget and legislative analysts and finally we'll hear from the city economist our representative from the office so first let's bring up ken rich and emily who have dedicated countless hours. >> good morning supervisors. how happy we are to be at this point and how proud we are of the community for hanging with

us and being so supportive so if i could go to the slides. supervisor cohen very kindly did my first slide for me so i won't dwell on it we are really faced with a dilemma how to get this project moving when it clearly did need some kind of subsubsidy so this is the first project that was supposed to be a redevelopment project but didn't quite make it so we're happy and proud that we found another way to move forward with this project. so in working through kind of rescuing the project our strategy was to achieve a market rate of return so the develop or had incentive for the project and giving us the community benefits we needed and as you can see on the slide

we accomplished this we revisited and tight ened the public benefits package and prioritized it and made sure we were getting the most important benefits and de emphasizing the lessor ones and approximately the $50 million that we lost from redevelopment and you will hear more about how we did this further on in the presentation. you see up on the slide the basic diagram of the project. it's 12 blocks on 20 acres it started out with the remediation of the entire site and the san francisco department of public health this has been underway over the last several years and is

nearly complete and the develop or will be required to put in all the new roads and other infrastructure. 15 percent of which must be permanently affordable to low income households and the other 85 which will be market rate but given the prevailing prices those market rates will be affordable within the reach of households in the city and we're very very happy to meet that middle income goal. project overview a couple more statistics primarily a grocery store 2 new parks and the rehabilitation of the historic schlage lock office building and i'm going to call up my

colleague to take you through just a few more slides on the details of the development agreement one thing i forgot to mention this project is in front of this committee for approval of the development agreement and in front of the planning department on monday. >> before you go i have a quick question and i'm not sure if emily is going to discuss in her remarks but i'm curious to know what portion of the projects does prevailing wage apply to? >> prevailing wage applies in the development agreement to the infrastructure part of the project so all the roads sewers and landscaping those kinds of things the reason that prevailing wage applies to those parts of the project because we're a city subsubsidy

helping to make that work. >> could it be applied to the vertical. >> so the answer to that is through a development agreement we can apply a prevailing wage to the vertical. we have the ability in the development agreement to require that we can not do it purely as a condition of entitling the project but because we have the development agreement we can legal ly do that, yes. >> great thank you very much. all right miss emily. >> hi good morning supervisors so the documents we handed out include the development agreement and the more detailed summary than i'm going to give so feel free to ask questions about those documents as well as this higher level of review. as you know the development agreement is a legal ly binding

contract locks in the develop or's right to build the housing units so long as the developer follows a pre-determined set of design controls and provides a public benefits package above and beyond what would be required under regular zoning so infrastructure parks streetscapes and historic preservation so as long as the develop ors do conform to the development controls and agreement the approval is going to occur on the administrative level. our goal was to maximize the public benefits but to do so without over burdening it. so as ken described if his overview includes a number of public

benefits. he mentioned that the develop or is required to put in new roads and sidewalks which must be designed to city standards and dedicated to the city once they are complete. . current visitation visitacion. the grocery store which must be a full service grocery store and must occur during the first phase of development and must be located at the corner of bayshore and develop or is also required to build 2 parks once the parks are complete the recreation and park department

will acquire them at a below market price which is locked in in the development agreement and operation and maintenance costs for the for the first 22 years of operation and rehabilitate the historic building at the northern edge of the site and finally the develop or will pay impact fees water and wastewater charges. the transportation consists of the development fee as well as a special impact fee which supervisor cohen mentioned so for the latter fee the develop or will be obligated to pay the fee rate which is justified and has been completed but that fee

has not been instituted citywide but it will be required for this project. the development agreement also commits the city to provide support for the project without which the project could never get off the ground and so the city's contributions will consist of funds from the transportation authority to offset the costs and an additional 1.5 million to fund the pedestrian connection as well as off sight infrastructure projects and the project will receive 4 and a half million dollars and this price is substantially below the appraised land value and especially advantageous deal for the city the develop or will cover the cost of park development and the first 22 years of maintenance and credit back a portion of the projects

in consideration for the many community benefits that will be provided so specifically the in kind community benefits that are justifying the impact fee credits the transportation fee and community space being provided within the historic building as proposed these fee credits will total $8 million reducing the total amount of these fees to around $10 million. the development agreement has a term of 15 years after which the develop or's entitlements will no longer apply. these documents are the design for the development and master plan

which will be heard on monday in land use. and hiring for all construction and use commercial jobs as well as prevailing wage including roads utilities and historic rehabilitation and there's a phasing plan to ensure the parks and other public benefits is delivered at a pace which includes mandatory meetings as well as meetings for each proposed development phase and building. amendments to the development agreement will require approval by the planning commission and board of supervisors and finally all of the rights of the development agreement are attached to the land so if the develop or transfers any portion to another part it will still be subject to the

development agreement. the development agreement has undergone minor revisions but you do have in front of you now a memo describing those changes as well as print outs of the updated exhibits and clarified that any affordable housing project would not be subject to our special transportation fee on residential development and section 6.4 to increase the frequency of community meetings from a minimum of one meeting annually to 2 meetings annually and added language to section 6.1 stating that the develop or note that we are still i