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 we were trying to achieve and base on how big the center was. what we are assuming happens in order to get subsidy spots -- what i understand is when a family is received subsidy they qualify based on their income and they pay a very either sliding scale or pretty minimal am so i'm not sure what that minimum amount is, but i understand it's very limited, very small amount, or a sliding scale based on what they can afford based on their means daks. and the subsidies are deferred by the first five program in san francisco. they're the ones that control the amount of subsidy and what

subsidy goes to which center. >> and, you know, in terms of what the market rate slots will be the market rate slots. the firms the child care providers provided to us are the financial analysis and we received thoiz questioned and we need to review those and it will be part of our selection process to review those and it's not based on how many children they're serveing, but actually the amount of child care improvement based cost, they need to finance because the tenant improvements of the child care space are not included in our budget. . they need to finance those. >> the provider will develop the space. >> they'll develop the tenant improvement space. >> mm-hm. >> so although they get the subsidies and there's all kiebdz of subsidies to build out the space also from the city available, there's some element of it they're going to have to finance and will be using the market rate spots

essentially to -- the cost over there to operate. that's my limited understanding of what i learned about child care in the last -- >> i'm impressed that we're actually becoming children friendly and i hope the idea came from our commission, our office. thank you. >> it did. >> that's very good. especially if we're adding units and there's two, three bedroom units obviously for families with small children makes sense, people got to work, got to have the babies taken care of. >> got to take care of the kids. nice that it's close to home. okay, so we have two -- >> do you have any list for the affordable housing? you have the list which you are going to -- who can come there? >> to lease up?

we'll do a lottery process and then that's how we'll qualify people to move into the project. >> okay. >> this is our lottery. the executive director you know is going to ask those questions. lottery process according to marketing protocols and with our own possible prequalified list of marketers. >> yeah, so actually jeff white, our housing program mechanicer, we were discussing that very recently and can shed some light on that. >> yes, we're making progress. there is an rfp that's got on element that's access for housing so we're going to be

hopefully creating a panel that will result in organizations that will provide the early rental readiness and homeowner ship readiness programs that we are hoping to reach a lot of cop holders very on so we anticipate connecting the doech developers with those providers just after construction starts because that will be a long period of time so that when the lottery comes along the search will be more qualified to get a unit either rental unit or homeowner ship unit. >> and to that i'd like to add, we also expect through that rfp process, through that panel to be able to get a diverse group of organizations that could market to the diverse communities of the city in san francisco to provide the

services that mr. white just described. >> all right, excellent.

>> the vote is three is. >> motion passes. >> next item please. >> thank you. >> thank you. >> the next order of business is item 5i amending ocii's debt policy to reflect redevelopment dissolution law, ocii's responsibilities for community facility district debt and federal disclosure requirements for issuers of public debt. >> commissioners, the last time we amended our debt policy was

well over a decade ago. we have before you a proposed amendment to our debt policy to really reflect the state of where things are today, so with that, i'd like to ask -- looks like john, our senior financial analyst, to walk you through the substance of the proposed amendment

post issuance debt is expandsed to include cfd bonds, follow fcc guidance and to impend the city's disclosure policy appendixes as best practices model to be applied as appropriate. current ocii practice is to have secondary market tables

prepared by a fiscal consultant and we've adopted that formally in this policy. the swap derivative policy, which was amended to the 2004 policy was deleted. this revised policy has been reviewed and commented on by the san francisco controllers office of public finance, by jones hall, our current bod counsel, and pfm, our current financial advisor. this concludes my presentation. thank you. >> thank you. any speaker cards? >> no speaker cards . >> very fascinating subject the public does not want to comment on. i mean that, sincerely. do we have any comments or questions by commissioners?