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 in negotiations about when that

payment will be due and clarified in a proposed amendment we've added language to exhibit f. in the unlikely event that this type of delay occurs. if the develop or chose not to issue this perform bond the completion of housing units and finally we added the subordinatation agreement says that any lenders to the project would be required to first sign which states the lender would still be subject to the development agreement with that i'll turn it back to ken. thank you. >> that's the conclusion of the presentation. if you want to do questions for us now or hand

it over to the next presenter. it's up to the committee. >> do you have any questions? no. >> okay let's bring up the next presenter from bl a. >> good morning supervisor tang and cohen and we submitted our report on monday on this proposed development agreement and i believe that the office of economic and workforce development has adequately described the agreement. one of the things about the ordinance before you approving the agreement is that it does in fact have a finding that the board by approving the agreement that they are determining this project is in the best interest of the city.

and that's consistent with chapter 56 of the administrative code. in terms of our report if you look on page 10, table 3 of our report this project will generate revenues to the city. there are various fees it will be generated, $24 million and the transit impact development fee in addition to code requirements but there are some offsets in terms of certain fees providing transportation and transit services but overall we estimate 24 million in one time revenues and in terms of ongoing revenues these are basically tax revenues

generated not only to the city and that's 7.6 million. the city itself will be putting in one time as well as ongoing expenditures table five on page 11 the cities one time expenditures are 8 million. and then part of this would be the city to purchase park land in that development 4.5 million. the recreation and park department represents to us this is in fact below market value. in terms of the parks themselves the develop or will be responsible for developing the parks and maintenancing them for 22 years so if you look at the summary on table 7 page 12 we actually see one time net revenues 16.4 million

and we see ongoing annual revenues about 5.5 million what we perceive to be the city's cost and we recommend approval. if you have any questions. >> seeing no questions i just want to acknowledge you and the work you have done on this report during the budget cycle thank you i know it wasn't easy but on behalf of the neighbors i appreciate it. thank you. >> okay. our next presentation and final presentation will be from the city. ted egan please. thank you. >> good morning supervisors.

ted egan controllers office of economic analysis. what i'd like to do here is walk you through just some of highlights of the report. essentially it effects the economy in 3 main ways a great deal of construction as a result of the project and additional spending and in the long-term there's also downward pressure on housing prices in the city which will expand personal income and employment in the city. in terms of residential

construction we're talking about the construction of up to 1679 projects as i believe ken eluded to the prices of these projects even market rate projects are considerable ly less than than elsewhere in the city. overall the residential construction component of the development, we estimate in working with an outside consultant to be to be $573 million and that will be phased in by 2026 when construction is expected to end. this we estimate will be around $65 million worth of construction. in terms of the

new housing units there's projected to be 1268 for sale a point 2 percent increase in the supply of rental units in the city and that level of construction would make housing prices in the city drop by point 8 percent and market rents point 2 percent in the city. just to put those numbers into context today point 8 percent of the average housing price in san francisco is about 73 hundred $7,350 and so these benefits of lower housing prices would be across the city and raises income directly for the households benefitting from that

subsubsidy and benefits the broader economy. 57 million in community benefits and affordable housing subsubsidy effectively $53 million of personal income and a decrease in market rents across the city of point 2 percent phased in over the construction period and decrease in-housing prices of point 8 percent by the end of our projection period the city's economy will have a gdp increase for the city and the city's economy is expected to expand about 985 jobs an average annual number. including an average of 340

construction jobs during the construction period and post construction employment gains are associated with the higher personal income in the city and also the employment needed in the non residential part of the project to support the new population and that's a summary of our report. be happy to take any questions that you have. >> seeing no questions thank you mr. egan for your work on this project. >> so madam chair i'd like to go ahead and move into public comment if possible. >> all right so public comment is open just want to remind you you have 2 minutes. first we have nelson please come up to the podium nice to see you. >> thank you good morning. glad to be the first one here just to kind of get it moving because it's been a long time

took us a long time to get here and to get to the end of this but that's a good thing because we know there's some consistent cy and today hopefully get to the next step of the approval process. i do support the project. that's 10 to 15 years ago back when i was a little kid i won't age myself. but the community has been involved from the very beginning. even the developer. we've seen a lot of changes with the mayors and supervisors and one thing that's been consistent is the community. the community has always been at the table asking for more pushing for more and we do want to be involved as it goes forward. it's a long time but the community is going to be there i don't have any plans

of moving out of the visitacion valley so i do recommend approval for today. >> okay so chris bennett and nelson and mat and marlene jonathan and fran martin. okay go ahead. >> good morning supervisors and president chiu. time moves quickly as we get older and it's easy it's really not been that long since 1849 when san francisco really got going so really live in a very young city and the 15 years since my husband and i bought our home in visitacion valley have flown

by and i'm grateful to know a part a part of the city that i might not otherwise have known. my name is chris ba r.n. ett and participated in the planning fight and served as an advisor under the redevelopment agency and advice or to the project after and became a booster for a lessor known neighborhood but a wonderful one doing my part and san francisco's borders extend further than they think and we must act collectively.

transportation infrastructure changes -- cut me off but i do speak in support of this project thank you very much. >> thank you very much. next speaker. jim. >> good morning committee. my name is jim growdin i'm affiliated with the visitacion valley planning alliance and green way and both projects are there to better visitacion valley and i'm i came here today to ask your support in the funding of the project. thank you. >> thank you very much. good to see you good morning. next we have mat and after mat is marlene tran and then jonathan and fran martin. >> good morning everyone. i just want to speak on behalf of

residents and neighbors who couldn't make it here today. we'd like you to approve this development and feel it's a huge impact to our community. thank you. >> thank you very much. mat. >> good morning supervisors. delighted to be here to once again endorse this acquisition there's 3 key reasons i want to draw your attention to the first is of course this is a very efficient neighborhood in this valley and a developer that's committed to pay for the construction of these new parks and finally this acquisition would address all of the priority needs laid out particularly the one that has really been the key stumbling block which is how do we pay for the maintenance of these parks once we acquire them. as you all know this is a parks

deficient neighborhood and building out these new parks would give them a new opportunity for open space and healthy recreation that we strongly encourage and the second is the developer has made a commitment to finance the construction of these number parks and acquiring the raw land and doing so at a significant discount and finally address all of the priority needs laid out in the acquisition fund including how to find a vehicle to pay for the ongoing maintenance of these new parks again part of the agreement put into place the developer has committed to fund the maintenance of these new parks for at least the next 20 years. addresses a key need in a park deficient neighborhood and leverages private resources for

construction and maintenance and addresses all of the criteria in the open space for the priority needs so again the parks alliance strongly endorses this acquisition and it's on to the next two thank you. >> thank you very much. next up marlene tran. >> good morning. i'm a long time resident of visitacion valley and also the spokesperson of the visitacion valley of the asian alliance. we met in fran martin's living room and in our neighborhood with many many community needs we're grateful that dedicated members joined in monthly meetings with the developer and the department of toxic control and other entities to plan this huge development after the setback from the loss of redevelopment funds we are also

grateful that the hardworking staff of the planning department that the first phase of schlage lock would move forward and the component of affordable housing a new grocery store, two new parks and improved transportation plan would definitely help to revitalize our community please help to support this program thank you. >> thank you. >> thank you jonathan. i'm just here to thank the community of visitacion valley for driving this process to this point and for redefining what i know to be the definition of tenacity these people and their dedication to

making their community a better place is extraordinary and we're proud to be part of it and want to thank the city staff at many many different agencies for taking time, nights and weekends and vacation time to help to bring us to this point and look forward after 15 years to get to the starting line of construction to bring much needed revital ization to this part of long forgotten part of san francisco. >> thank you. >> first i want to thank supervisor cohen for helping to move this along. my name is fran martin. we won that battle and over the years our

group advocated to bring affordable housing improve public transit to our under served community. we started the entire process that brought us here today. schlage lock has been a toxic site. it is essential with this proximity to the bayshore this sight will be a transportation and our community has been in the forefront of advocating for affordable housing. most of the neighborhoods do not want high density housing of any

sort. in spite of everything over the years we've worked with various city departments and received a planner's award. what is being asked of the city in terms of of public financing is a drop in the bucket to what is owed to our neighborhood and it's time the city fulfilled its duty. this is a matter of social justice. after a long process of planning schlage lock development should be allowed to move forward. thank you. >> all right thank you. if there's anymore public comment, please come up. >> good afternoon. the city at

the mountain top, it's shining like a silver plain -- singing -- and schlage lock was its name. you got it. the city you got it. you got the schlage lock, thank you. and it's going to be shining like a schlage lock plain some of the beauty in government and schlage lock was its name you got the schlage lock government audit, you're the city pride and joy -- singing. thank you. >> all right thank you very much. are there any members of the public -- all right.

[applause]. >> good morning supervisors, madam clerk my name is thomas pickerilo you will be making a finding that it is in the best interest of the city not just district 10 so i'd preferred to have seen 20 percent. 20 percent. this should be one of them and secondly the community benefits agreement ought to be specified more clearly in the agreement rather than leaving it to the developer and the mayors office as to what those benefits would be so more specificity in the community benefit agreement in this package as well as 20 percent housing instead of 15. thank

you. >> are there any other members of the public that would like to comment on this item? okay seeing none public comment is now closed. is there a motion on this ordinance? all right so a motion to move out item number 1 to the full board with recommendation with a positive recommendation. all right without objection. >> great thank you. [applause]. >> thank you everyone. congratulations. >> now madam clerk if you wouldn't mind calling items 2 through 7 together please. >> plaza apartments associates and mercy housing and ocean avenue associates to provide operations subsubsidies for formerly --

>> sorry if i can ask that people can exit quiet ly thank you very much. >> okay great so for items 2 through 7 i believe we have sophie hayward here. >> good morning supervisor tang and president chiu. i'm from the office of housing and community development. the program is an intregal part of the program. ann ramiro is

with me today to present an overview of the 6 contracts together and she and i as well as our cfo are certainly happy to answer any questions you have. i have a handout here and i'll put some out for the public as well. thank you. >> so good morning supervisors i am a project manager. first i will give a brief background on the program and then i will describe the projects so the local operating subsubsidy program was created in response to the ambitious schools to create 3000 new units of housing and the lack of federal

or state operating subsubsidies would keep us so i'm sorry the program is structured as an operating subsubsidy. the department of public health and human services agencies are our partners and fund the support services currently there are 20 contracts in place. so supportive housing in san francisco has been constructing a variety of models in family, senior and single buildings. these are structured as 15-year grant agreements so the contracts before you today would bring the total contracts

to 26 and units to 1475 added 238 new units in 2014 and 15 so typically range from 6 to 10 thousand per unit per year. by 2018-19 will grow. the other units in the 10-year plan are supported through other state and federal subsubsidies so now i will briefly describe the project. they are located throughout the city and they target homeless singles seniors and families and transition age youth. this building is actually transitioning to the program from the job program

which predated. vera haile will be 90 units of affordable senior housing. 3 units will be supported by hud 11 hundred ocean will provide 25 units for homeless. 19 will be supported by the loss program. and one third will be targeted to homeless families and one more on scott and lombard street will transform a former bed and breakfast for homeless transitional age youth. i'll just conclude by saying studies

have is shown it's far it's far less costly than the cost of emergency rooms if these homeless populations remain on the street and our program seems to be bearing that out so i am happy to answer any questions. thank you. >> thank you for your presentation. any questions from the committee? seeing none. >> good morning. the 6 contracts was 9.3 million expected to grow with the addition of these contracts. but this is an essential form of funding to be able to