entities for the city of san francisco, of two due diligence reviews for both housing and non housing assets which allowed ocii to review a finding of completion, the long rang property management plan, the confirmation of housing assets transferred to the city and three, recognized obligation payment schedules. and whereas he has worked to

ensure that ocii contracting, hiring and affording housing opportunities are successfully marketed to all disadvantaged persons, businesses, contractors and the diverse communities of san francisco. in particular, mr. ellington has been a strong supporter of ocii's efforts to provide affordable housing opportunities to members of low income house holds who were displaced and were eligible to revooef housing preferences through ocii's certificate preference program. on behalf of our executive

director and employees, and by this resolution, expresses to mr. ellington its appreciation of work well done, its thanks for dedicated public service and its sincere wish for his success in all his future endeavors. >> very nice. thank you. madam secretary, do we have any speaker cards? >> we have one, antonio elmo mimms. >> speaking on the infrastructure what's going on in district 12, which is my district. i want to make sure we remember all the populations, like, if you're alive i feel like you have the right to hear about and know exactly what's going on, in which -- how it effects

not only -- not only how it effects you, but how it's contributed towards the demise, because we are still poverty stricken in the bay view hunters point. no more smoke screens as far as commercial development and as far as so called low income development. we still have a population that's beneath low income that no one pays attention to because maybe they don't vote, maybe they have a criminal record. so we're kind of standing on their backs with everything we're doing. not me, but you're standing on their backs with what you're doing if they can't hear what you're doing because a lot of the ideas and the creativity

stems from their struggle not their vocalized struggle because they can't hear what's going on. they don't know what's happening to them and i feel like as a body or community leaders you need to be responsible to hold the entities who are contributing to this impoverished state that we live. we can pretend like there's no development or we can go out identify and interrupt business as usual. we can -- you know what i'm saying -- intercept contracts. we can do a lot . i can and you can. i'm doing as much as i can with my time and my hands and my time and availability and my life and my struggles, so let's

angle our struggles towards those who truly, truly need them. san francisco as a credible city don't need anymore pumping up. we need to start from beneath the bottom to rise upward. and i just hope everyone in the room hears me. not just this body, but also the black, brown, yellow, white, red , everyone. i need the sky to hear me. it's a lot going on under the sun. my mama gone, but there's a lot of new things going on under the sun that we need to educate people on. >> thank you. >> no other speaker cards. >> no other speaker cards? okay. we will close public comment unless anyone else would like to provide comments on our

commendation of former commissioner ellington. do i have any questions by commissioners? >> i move. >> moved by commissioner ink. >> i second, i think. [laughter] >> moved d and seconded. >> commissioner mondejar. >> yes. >> singh. >> yes. >> rosales. >> yes. >> the vote is three is. >> thank you. thank you. [applause] >> i think we're doing to do a -- >> are we doing the photo op?

you're perfectly attired.

okay, so now to business -- more business i should say please call the next item. >> items 5g and h will be presented together, but acted on separately. item 5g, authorizing a loan agreement with mercy housing a california limited partnership in an amount of 3,382,000 for affordable housing units at 222 beale street on transbay block 7 pursuant to the california

environmental quality act. and item 5h, approving a revision to the transbay block 7 schematic design package originally approved by the commission on april 16, 2013, to reorganize some of the ground floor uses to create building efficiencies and increase from 77 to 85 units and making environmental findings pursuant to the california environmental quality act, trab redevelopment project area, discussion and action, resolution number 712014. madam director. >> thank you. commissioners, as you know in the transbay district where you have land use, contract and design authority, the transbay district has requirement for 35% affordable housing. the bulk of the low income housing will be provided on

state parcels that -- the net proceeds of which actually go towards that big hole in the ground, the terminal, the transit terminal, but landfill proceeds actually help to subsidize the landfill parcels. what you have before you are two separate actions in transbay really that are an implementation of your overall mission and goals for the transbay district and a continuation of the actions you took last year related to transbay blocks 6 and 7. with that, i'd like to ask elizabeth to start off this presentation and she'll also be joined by courtney, the transbay assistant project manager. >> good afternoon. i'm elizabeth, development specialist and i'm here with those two requests today. i did want to mention that in

the rezs there's a change. now back to the project. the project will be an affordable 85 unit family project and will include a child care facility and open space. this project is part of a larger master block development in the transbay redevelopment area. the transbay redevelopment project area was adopted in 2005 with the purpose of redeveloping 10 acres of property that were owned by the state of california to generate funding for the transbay power authority to construct the new transbay transit center and meet the affordable housing requirements. 8812 is an enforceable obligation that requires ocii a successor agency to the san

francisco redevelopment to ensure that they're affordable to an occupied by very low, low and moderate fk households. the implementation agreement is an enforceable obligation that requires ocii to sell that state property to [inaudible]. >> a little bit of history, in july 2011, pursuant to that implementation agreement, the former agency issued a request for proposals to design in december of 2011 after a competitive selection process the former agency commission conditionally authorized staff to enter into negotiations for the development of block suks and seven with a development or mercy. on april 16 of 2013 the commission approved a disposition or development agreement or a dda with mercy

for block six which required them to pay a total of $54.3 million dlar for the site. this included a purchase price of 30 million dlars for block sigs and an affordable housing fee. also at that meeting the block six and seven designs were approved. here's a site map for blocks six and seven. on october 10, 2013 they paid the affordable housing fee of $22.2 million in two payments.

were paid subject to ocii approval and in conformance with the negotiated terms of the dda. construction on the podium and market rate project began in november of 2013. on april 15 of this year commission authorized a total loan of $14 million for block six and that began on may of this year. we've been working on block seven and is requesting a development loan of $3.3 million. on july 2014 the city affordable housing loan committee recommended approval of this request. mercy is now proposing a revised design for block 7 that adds eight ewe anyones, bringing it to 85 units including a manager's unit.

because if those maintains are reasonable that is within the guidelines established in the original rfp and that provides additional affordable units for the project area that was required under 8812. the proposed revised project will be an 85 unit family project with 34 one bedroom units, 33 two bedroom units. it will include a 3500 square foot daycare center along with open space and the dare care will serve approximately 30 children living in the building as well as local families. the project will serve households up to 50% of median income as published by the mayor's office of community development. this means a family of four could earn up to $48,000 per

year and pay 1093 for a two bedroom or 1201 for a three bedroom. consistent with other affordable housing projects certificate of preference will be given. staff anticipates including such a precedence here for this project. the marketing plan requirements will be included in the future gap funding loan and ground lease, both of which will be before you for commission approval. the project will be financed with tax exempt bond financing. the ocii subsidy will be consistent with the dda, which included a $200,000 maximum subsidy unit.

and other ocii including developer payments from transbay jobs housing linkage fees. ocii will not be obligated to increase the per unit subsidy in the event of substantial development cost increases. staff anticipate an award of home loan housing funds. now for today's request. first off, about the predevelopment request and i'll turn it over to courtney to talk about the design revision. as i mentioned mercy is requesting a total loan of $3.3 million to fund predevelopment activities for the project. this will allow mercy to complete the activities including design process and finalizing the financing plan making the necessary financing applications. it was based on documentation

of predevelopment expenses for block 7. loan will include this amount of expenses as the previously paid portion of the loan, leaving 2.9 million to complete predevelopment activities through construction start. we anticipate this will become part of a larger permanent loan and we will bring it to you closer to start of construction. i'll turn it over to courtney to talk about design and i'll be back to wrap it up. >> good afternoon, i'm courtney, assistant project manager for transbay and i'm going to quickly walk you through the proposed changes to the schematic design. i'm here to answer questions as well as [inaudible] the architect of this project. the following changes have

allowed for an additional eight units. this is the approved floor plan from april 2013. the biggest change here is in building 7a. in order to cut costs the basement was removed and some of those uses were -- the uses on the ground floor needed to be rearranged in order to accommodate those. biggest change was moving the office that was originally facing the garden down to the street. this will actually help to activate the street at all times of the day. the rest of the street is town homes so this will give eyes on the street during the day. and then there's some relocation of services, just an expandsing of the -- like, mechanical services and stuff on the ground floor.

the other change was adding an additional story to building b and this is how we accommodated the extra units on the site. the building was brought up one floor, 11 units. here is the rendering of the approved schematic design as the original height and here is the increased height. you can see the additional height really adds the verticalty of the building with the extra pair pit on the top. it improves the relationship between this building and the adjacent building. there is a change in construction type, which is how

they are adding a floor here. there weren't changes to the townhouses other than adding the offices. the street is now a curbless street really adding to the pedestrian character of it. there will be no vehicular access from beale over to fremont, but there will be -- because there's a freeway off ramp right there, there will be removable ball ards so fire trucks can pass through the site. the [inaudible] has remined and is consistent with the street scape and open space plan. i'll turn it back over to elizabeth.

>> i wanted to wrap up to give you a heads up regarding when you'll see this project again. we expect to return back in the spring with request for a permanent loan and ground lease and we expect for construction to start late next september and be completed the following fall so that concludes my presentation. i want to introduce sharon and [inaudible] from mercy housing who are here, as well as myself and courtney, to answer any questions you may have. thanks. >> thank you for that presentation. do we have any speaker cards? >> yes, we have one speaker card. antonio elmo mimms. >> any other speakers? >> no other speakers.

>> we can close public comment unless the speaker shows up. do we have any questions, comments? >> i got a question. >> commissioner singh. >> how many loans have we [inaudible] before so far? i know that we have a few loans, but -- >> i think we'd have to do a little due diligence -- in transbay how many loans do we have with mercy? >> mercy housing >> in total. gosh, perhaps jeff white, our housing program manager might be able to provide -- >> unfortunately i don't have the answer off the top of my head, but we can provide that information with you. and transbay, i can just address, as far as rfps that have been issued in transbay for affordable housing, one of the projects was awarded to

mercy, one to glitch housing and one to tnbc. >> i know mercy is doing a good job, but which is is presented of golab? mercy's partner, what is it? golab? >> mm-hm. >> is he here, anybody? >> they are not. the project today is affordable only so the block six project was the combined project with golab but this project is being fully developed by mercy housing . >> have they done any project with us before? >> golab, i don't believe so. block six and seven was the first project, the first rfp that was issued prior to dissolution and that was

awarded to the team golab and mercy. they're based out of chicago, although they're fully compliant with our local hiring professional services and hiring goals. >> okay. >> commissioner mondejar. >> i'd like to hear from mercy housing housing, , do you have any comments? >> good afternoon commissioners, i'm barbara walker with mercy housing. i'd like to tell you we're thrilled to be here before you on transbay. our transbay block six development as elizabeth mentioned is well under construction, scheduled for completion next fall and as soon as that one's finished we hope to start on block seven so

i would be happy to answer any questions you might have of mercy that might help you in your decision making. thank you. >> thank you. >> thank you. >> i just had a small question, just one out of curiosity because i don't recall seeing one of our projects with a daycare center. is this -- are there others with daycare centers that we have under construction? >> there are family daycare centers. actually the mission bay project on fourth street has a family daycare center. previously -- perhaps -- i think this is the first one that's come before you with a -- oh -- before this particular commission, but in the history of the former redevelopment agency in mission bay, commons had a daycare center. we will be programming for a future rfp at mission bay, a daycare center, but this is the

first one in transbay. >> i see. yeah, it makes a lot of sense and i like the reference that it would be open to children -- is it the neighborhood or is it -- or for the residents. >> child care center. >> yeah, who would be eligible? >> we expect it to be a mix and we expect half of the spots to be subsidized. mercy's in the process of selecting a provider for that daycare center so the next time we're before you we'll have that info for you. >> great, excellent. >> would you care to comment on your selection process from mercy housing. , the process that might be underway. >> yeah, we actually worked with city agencies to come up with an rfq so that we could

make the opportunity available to all the daycare providers in the city and so we issued that rfq and i think i may need sharon's help, but i think we got quite a broad response. i think we had at least four daycare providers responds and we're in the process of making the review and selection. >> excellent. >> thanks. >> any other questions? the only comment that i would make is that i see that the developer has achieved a 98.8% sbe participation for services and that the 98% are san francisco based sbes. that's amazing. thank you. no more questions? do i hear a motion?

>> i just want to know about the babysitting job, what do you call that? child care senor. how much do you charge per child? do you have any idea? center. how much do you charge per child? do you have any idea? >> we don't know yet. that will depend on how many slots they can bring in, but it is anticipated to be a blends of both subsidized an market rates so i don't know if that answers your question, but that's what we know so far. >> it's good enough for me. >> do you happen to know what market rate is? i don't want to venture because my children are no longer little, but it was very expensive. >> i actually don't know, but i think it is quite expensive.

>> so when you say subsidized, what does that exactly mean? >> i will have sharon -- >> i assume it's more expensive, but how does it work. >> elizabeth and i have learned a lot about child care this past few months. so based on the responses -- again, as barbara indicated we worked with city staff, the department of early childhood education and representative from the first five program in san francisco and they helped us develop an rfq. the agencies rfp had identified that centers should serve 50% subsidized and 50% market rate so that was our starting point. so the child care providers responded to us on that basis of what