else can be done that is shard between h c s f and ocii we've worked diligently with city partners to come up with a creative solution that we believe addresses our concerns. with that, i'd like to ask christen the real estate specialist to walk you through the proposed issue. >> thank you director bohe and good afternoon, commissioners that is a continuation of a may 6, 2014, resolution commentating to a long term lease between third and mission and a affiliate of the california historical society or c h s for approximately 15

thousand square feet in the paramount on mission street. as a quick refresher the agency entered into the lease for a 4 hundred and 92 secret project on mission street this is bound by mission street and third and jessie and has the paramount immediately adjacent to that the california historical society and the backside along jessie street is where the hotel so it was completed in 2002 and consistent of a mixed use tower. the site as originally purchased

by itself agency with federal urban renewal you funds when it was sold the purchase price was denounced and has a nonprofit space specifically h s. in 2003, the developer entered into a lease with 15 thousand square feet which fulfilled the lda requirement to protect the project the lds has to get the consent of the tenancies or any lease termination. on may 6th the agency was asked to reduce the leased premises by 10 thousand square feet and allowed to lease the mandatory

to other yourselves this was all in exchange for the buy out price to be paid to ocii and another agency in installments. under this agreement ocii will receive a portion to recover the land use in 1999, for preserving the paramount space for c h s since that public benefit will no longer exist. as you see ocii portion equals $947,000 which represents 2/3rd's of the developers count in today's dollars that will be distributed beginning in january

of 2015 with a final payment of $197,000 in january 2018. once received ocii will transfer the money to the mayor's office of housing of office of economic workforce development or oewd that administers the money this is because the land sits with urban reluctant - renewal funds. the commission expressed the nonprofit dedicated space as a result, the staff vegdz the square feet relinquished could be used by another nonprofit. the staff determined the space was not suitable for the following reasons it's not accessible to the street so it

didn't have a dedicated entrance and two it is relating expensive toronto make it suitable for a nonprofit. for those commissioners would were not able to join us on the tour i've got a couple of pictures this is the paramount with the residential lobby that's how the nonprofit space is educated it didn't have its own entrance. and you can also see in the picture that immediately to the right of the paramount is the c h s space which is currently owns and the bottom image is the portion of the leased space. subsequence to the may 6th meeting to the nonprofit space in the jessie hotel on jessie street connected to the

paramount in addition to the payment of 2 hundred 25 million the terms of the traction are summarized the premise is 41 hundred usable square feet and the tenant will be the city acting by the department of real estate that will sub lease the premises through it's nonprofit stabilization program i'll explain in a moment. the term is approximately 8 seven years expiring in 20021 the rent is plus 6 there's socio square feet per year and finally the city as tenants will be responsible for all tenant improvements in the a space which is currently here. ocii intents to use the 9 had and $47,000 to fund the tenant

improvements through the nonprofit rent stabilization program. this slide shows you a couple of images of space that is being offered the picture on the adapt top left is the exterior of the jessie hotels and the blue doors provide access to the elevator and this is showing the exterior of one of the floors. now i'd like to tell you a little bit the nonprofit rent stabilization program it is approved by the board of supervisors in may to reduce the rapid rent and on the nonprofits in our agriculture fields the

board approved $89.9 million and $2 million to the san francisco art arts and culture organizations. the plan is for the funding to be awarded to intermediate nonprofits that will make sub grants for acquisitions and to provide technical assistance including the lease negotiation and recognition to 501 registered nonprofits and as i've mentioned the city's plan is to actually find a tenant and do the improvements through the stabilization program. and now is next steps. the terms that i outlined earlier are currently been incorporated into the jessie hotel and it's separate between the city and the developer it's anticipated that this lease will

be background to the board of supervisors hopefully in september the lease will be depends upon on board of supervisors approval that concludes my presentation. as well as representatives in on the other hand, and c h s and related are here to answer our questions. thank you >> thank you. do we have any speaker card >> yes. madam chair 3 speaker cards. >> will you please call. >> members of the public please come to the podium in this order (calling names). >> thank you, very much and staff and members of the public. i'm here honored to serve as the ceo of the california historical society founded in 1971 and

registered as a nonprofit in the state of california in 1-80084 had 5 i didn't know they were registering people then we rummaging request you approve the amendment i'm grateful for our colleagues efforts to provide the nonprofit space. c h s designated the benefit for the tower project and about 17 thousand or so square foot we have invest money for the 10 thousand square feet and this is constructing an elevator and as staff articulated the space wouldn't be made workable in

2009 we began conversations with third and mission related to lease that portion back to them. by 2011 we arrived basically at the deal you see before you and embarked on negotiations with the city as the agency crisis will be rolled across the street we agreed to the repeal the evidence will show and agreed to the lease amount in 2011 and continue to cooperate with the ocii staff we are continuing to wait in hopes that this deal what move forward and the initial payment can, released to our nonprofits with the focus years to have this happen which you guess has caused significant

uncertainly we know first-hand the nonprofits facing in the city we hope to work with one hundred and thirty nonprofit partners we've worked with since 2011 this is on behalf of the staff and members and supporters i ask you to please authorize director lo he to concur with this sins it's been approved by the board of supervisors for the additional 41 hundreds square feet if you have any questions, i'll be happy to answer them and i'm deeply grateful for your dedication to the city's improvement >> thank you. next speaker. >> i'm tom owens i'm the president of the historical society i want to say that the

director presented it's been a long trip i was the original new yorker in 2009 and hope in commission sees the wisdom of the endorsement for the project. >> thank you. >> commissioners i'm glad the two last speakers talked about the historical issues. i'm glad to say i remember the commissioner back in the day of the housing authority now, it's company is in our community and, in fact, all over the city buying up property that is going to be used by the city but wow, i want to work with our project particularly in my community

you're dealing with people that at the bottom of the to tell up pole and deals with martin luther king and you're getting the key to the city. but the thing i'm up here to talk about the history and my perhaps after this are will be in contact with the related california to see we as community people that look like me are going to be involved with our prosper. ace you should get up there and talk about the lines maybe because i've not got form education but i can write songs about what is happening in my community. i'm not here to say yay or nay on this project you're going to

do what you want to do and by the way, mayor ed lee knows me it's no mystery all you have to do is check the black history and a that ace has been looking at cases that are involved in enterprise i have another mini want to be clear to all that here are ace is phenomenon on the case you know i have a moral obligation i've got kids i've got kids. yes they've got kids i'm a great, great grandfather so i've got a moral education to do what i've doing and has been documented and to disseminate this information to our next generation who are the players

on which they are impacting the city that sits by the bay it's time for you all to hear what i've got to say i live and breath and document everything i'm going to speak on. i hope that after this i can get our card and i'm ace and i'm on the case >> thank you. we're going to close the public comment period commissioners. do we have any comments or questions >> i want to ask mr. ben. >> mr. woody commissioner singh and yes. there's going to be 4 hundred and 95 residents. >> i'm sorry. >> the dollar is how many units

you're going to have in this. >> you mean the space. >> yeah. >> actually in the commission approves this we won't lease it out but modernize and expand our paramount which is a 10-year-old building. >> what is your - >> we probably won't lease it out. >> what. >> we want to keep current with what's being built today. >> okay. thank you. >> commissioner mondejar. >> yeah. i have a question for executive director. >> yes, ma'am. >> i had the chance to talk about the space you're giving up the space initially you took the

california historical society took the space you needed more space to store your collection now you're giving that up what are you going to do for additional needs. >> we still have the space we are that originally gifted in the basement of the paramount we continue to use we have to go up and out so we're searching for alleged space as well. >> so you don't have any space yet. >> we're moving all that; right? we have not utilized the third story space >> so i appreciate that something this is shthd that was difficult. i know your organization has been carrying the burden for a couple of years a year at least so i'm glad we've found

something that works >> thank you. >> i concur it's a creative resolution of the southerners presented and allows the lease amendment to go forward and offers space to ness in san francisco so it's a good collaboration. do i hear a motion >> i'll post a motion. >> one by commissioner singh. >> commissioner mondejar. commissioner singh. commissioner rosales. madam chair the vote is 3 i's >> next item and the next order of business is 5 b authorizing an amendment amended and stated architecture with the l t unlimited partnership consisting of the, llc a california

liberate company and the chinatown development center a california nonprofit corporation for a totally agree gait of $69 million plus for a development of no income artificial building on mission bay block 7 west pursuant to the quality control act and resolution number 63, 2014. >> thank you madam secretary and thank you to the members of the public for continuing to join us. commissioners we recently approved a schematic design for this particular development a few months ago i'm glad to report to uscf have paid their

fees that's a recent development in our housing manage jeff white can provide you with the details it's fitting we're here to bring the final gap financing for this incredible project and the two developers are cdc related partnerships we're glad to bring this back and so with that, jeff our housing manager >> good afternoon. i'm happy to be here to present this request for a housing project on mission bay boulevard also known as as mission bay south block west. the request today is for the gap funding which includes for construction funding for 16.7

excuse me. $16,759,000 that wraps the $2 million predevelopment funding that was previously approved and $17.5 million for construction. i realize you've recently seen the schematic design and approved it conditioning but i want to refresh our memory on some of the block 7 approvals. it has a relatively long history. in november 2005 and march into custody ucsf entered into the d da to develop of the affordable housing at its own expense by certain date in june 2011 the citywide loan committee approved

the funding for block 7 west. then in june 2013 ucsf decided it wouldn't have affordable housing on block 7 and paid liquidated damages for block east. in 2013, the commission approved the $20 million in predevelopment funding. then in december 2013 of the ocii commission approved the assignment of the ucsf d da to block 7 partners which has director bohe mentioned is consisting of chinatown community development center. in january of 2014 the department of finance approved the assignment and in january of 2014 the commission then continually approved the

schematic design. more recently in june 2014 the citywide affordable housing loan committee approved the $16 million president hasz plus for the development of block 7 west. in and again as director bohe mention last week ucsf paid their liquidated damages in the liquidated affordable fee for the development of block 7 west. as a refresher there's a location map it's a little bit small hopefully, you'll see it block 7 west is outlined that's where the 2 hundred affordable housing units are going and block 7 east is where the family house is going to be going.

a refresher on the lovely lovely dine those are a few images. the building itself consists of 2 hundred and thirty thousand square feet and a mikdz use of 10 thousand feet plus there's one and two two berms it will be four stories of housing over park the development will include a development and laundry room and fitness facility there will be a 28 thousand square feet kwashgd for private residents and their guests. the target population will be householders earning up to 50

and $60,000 call roll the medium income at ami is 61 thousand $800. 40 of the units will be for the householders at ami. i wanted to go over the occupancy preferences you've seen those before but it is somewhat unique as all the projects the certificate of preference holders has first priority. after that, they will be up to 25 percent of the units will be available to an applicant who is an employee of a public hire education institution located in san francisco an applicant of an employee of a health care institution located in san francisco. the next priority for applicants currently living and working in

san francisco. and after that there's a priority for the members of the general public. the project financing is ken conventional there's the ocii gap funding and 4 percent tax quality and 4 percent bonds and a first mortgage in a private bank and developer fee. the agreement that we're requesting approval for today is an amended and restated loan agreement i've mentioned that wraps into the former 2 hundred 4 zero million in predevelopment

funding and additional funding and construction funding. the terms of the loan 3 percent interest rate it has a 55 year term and has a residual term that is consistent with all our loans we do. the project is also going to a ground floor lease for 99 years. ocii will remain the ownership of the lands and at the completion the transfer at completion again consistent with ocii assets will be transferring the land the ground lease to the mayor's office of housing of the housing community development. the mission bay citizen's

advisory council has been supportive of the block 7 west the cac is interested in the development that helps to support of the population that lives at block 7 west. next and to take over the schedule. the sponsor is a planning on submitting an application to kidding lot and to the 10 percent bond in october of this year. in january of 2015 we apartment bringing the ground lewis to the ccii commission and in 2018 the board of supervisors will look at the bonds and in 2015 they've closed and start construction. also when we start construction

we'll be reviewing the marketing plan had he inventing the marketing outreach. and the marketing outreach to help with getting folks ready for the c p holders to have them have time to apply and be able to be qualified to rent the units. we apartment the temporary certificate of occupancy in 2016 and achieving 90 percent occupancy in spring of had 2017 and closing out the project the contract staff is working with the small business requirements. telling you thus far the developers have achieved a strong