and father a change of the terms of the agreement to remove the 5 year term that expires in october of this year and makes it expire when the last conveyance agreement or the navy transfers other parcel transfers whichever of those say the soonest is the expiration trigger 0 is removes the 5 year limit it commit the navy to provide 3 hundred thousands of funding for the next 12 months months for security and the clarification is separate but the commission is authorizing the executive order for future modifications for the cooperative agreement is as long as those are approved if the occ budget will reduce the runt

second approval that is otherwise required the security services at the shipyard are funded by itself navy and lamar they have a small portion approximately 23 percent of the costs no ocii funds involved this allows the funding for the navy's portion of the services and allows ocii to pass throats fund for the lenore shipyard so the corrected resolution makes it clear that the modification only changes the terms and authorizes the budget and that the resolution in the resolve clause it authorizes the executive order to approve future modifications as well as those are included in the ocii budget, of course, this commission approvals. madam secretary do we have any

public comment and to speaker cards >> no, i move this item. >> it's been we have a motion and a second. commissioners commissioner singh. president director murray. commissioner chairperson rosales. madam chair the veto is 3 i's >> thank you matter passes next item, please. >> the next order of business authorizing the transbay implementation agreement the chondroto execute a negotiation with a joint liability company between the illinois corporation and the john company by a proposed commercial project on block 5 portion of lot 25 and portion of lot 27 on howard street transbay redevelopment

project discussion and act 2014 madam director. >> commissioner i'm sure you're aware of our agreement with the transbay joint powers authority requires ocii to dispose of certainty public parcels in the transbay project area you've seen a number of parcels 0 come before you we've disposed of the residential project this is the first office project you've seen come before you an informational memorandum to select the team about a months ago but this is the exclusive agreement for our consideration that lays out the timing with that, courtney please present this item. >> good afternoon, commissioners and director bohe

i'm the ac acting manager i'm joined by the lock team who flew out from chicago if you guys want to stand up to we can great. thank you. block 5 is one of the state owned parcels if the transbay project area that ocii is presented e prepared to sell into a trust account for an account the parcel is on howard street between main and beale street for a hundred and 50 foot

office tower the only one in this project area. as you can see in this diagram it's oddly shaped 20 with two parcels on one side because they couldn't come to terms and a an rvp was developed for m-1 and m-3 required the open space. on april 2nd of this year ocii opened a question the proposes o proposals were due on june 25th, 2014, the teams were asked to submit the concept proposal and a plan to meet or exceed occ ociis workforce they were look

at by a panel by the ocii learning post who is here and a representative from the tjpa deborah and a representative from the sfapt input was received from the staff and the architect planning department and a real estate xhountd firm. this selection be looked at the proposal and interviewed the team and based on the criteria outlined in ross mirkarimi the selection team scored it comprised of the john dot company and r.c. architects they've approved the selection on the august meeting they've reiterated the configurations of the ground floor. so prior to coming to you for

the xylophones i'll discuss shortly will go to the cac the selection criteria was heavy weighed by the $172.5 million the next is boston property at approximately one hundred and 35 thousand and kilroy had a a proposal they've received the scores for the - they have significant experience the team was happy about the including the killing e kilroy group. the proposal from the team included a purchase price of

$145,000 approximately 5 hundred and 65 thousand square feet of office space and includes 15 thousand square feet of publicly open space a ground parking facility and streetscape improvements on thomas street and ground floor retail space of 5 thousand dollars square feet space and a certification of sustainability. while the good neighbor policy i think team had the highest score on development but the ground floor on the massing needs to be improved on to make a positive contribution based on the review the gun control i think team have begun working on the project and returned to the commission if the commission

approvals this item i want to show you a few rendering to give you a general idea of what this building will be like and the things we like about the proposal this is views from the north and south we like their sky balconies and those will continue on to the next phase since they were one of the positive things that the staff really liked. this is am image of the ground floor. and this is a peak of what you'll see next month on the left is beer their ground floor plain in the proposal and the right is an idea for the ground floor that we've seen to date it increases the amount of retail space and decreases the lobby and the curb cuts along the street and activates this

street. the dna includes the seven months term to expend up to 6 months and an deposit of 5 thousand dollars to cover staff and legal costs $5.2 million and to participate in the special assessment district cv d and to ply with the ocii policy. as discussed the team will return to you with a design next month and the project will go through the plan process and the allocation process with the approval of the d c a and the seismic designs excuse me. the anticipated to come before you in march 2015 and closing in 2015 with the construction closing therefore. i with the democrat team if you

have any questions, i'll be happy to answer them thank you >> before we treason questions my public speaker cards. >> no one. >> not many members of the public wish to speak. any questions from the commission >> yes. >> thank you. commissioner singh >> yeah. i want to know in chicago who is the expeditecy in california or san francisco? >> yes. the gun control i think team is under construction on the first market rate block transbay block 6 there's the developer selected at 413 on their construction. >> i have one more question. $172 million 5 hundred thousand

why only 5 hundred thousand is enough for the project why not 10 percent >> we based it on a realistic estimate of staff and legal costs to cover the period from now for the d b.a. >> it's nothing incarcerated to, you know, $172 million is that the beacon and it's the $500,000 deposit is more than we required on the other development parcels. >> that big i mean $172 million. >> the development - the sale price has varied but the work that is required to get the project through the approval process is similar between the blocks so - >> okay. >> commissioner mondejar.

>> i have a question there was a concern about the urban design initially you said they have the least points can you expand further about that. >> sure in the attachment two i believe of our august 5th memo a detailed analysis the design done business owner by an architect at the sfapt the main thing we wanted them to have a cohesive story we liked did elements they were things we thought could be approved upon and look at it holistically like i said on the ground floor they have h had a couple of loading docks and driveway we've asked them to reduce their retail

space and that helps to activate the neighborhood and put more thought into the skin of the building so it differentiates itself and relates to the neighborhood at the same time. >> on slide 10 this is the new design that was prospered. >> no all the renderings are from the proposal except the ground floor plain that shows the january and the september clearly land january and september ground floor plain the rest of the proposal we're in the development process working with their team on a direction so we can bring the imply conceptual designs back next month. >> thanks. >> i have a question perhaps

for the executive director this is the first rfp that was identified; is that correct? >> yes. that's correct. >> i want to note that all of the competitors i'm pleased pleased to see that all of the competitors had a workforce in contracting team metabolizes added so in that the concern i think of the t tjpa had the mixing, if you will, the possibility of the high bid interest was basically just that a concern and it does not pan out as a problem so i commend all the teams is someone from butler enterprise here? >> thank you. so those are my only comments i think we're going to see this

again soon so we'll probably have no more questions >> i wanted to note they've done everything for the contact through the i want to talk to josh. i want to know they're meeting all the requirements towards the contract >> yes. commissioner singh. the workforce plan identified butler enterprises we're working closely with butler and the gold i think team to insure we in good faith meet but exceed the expectations like commissioner chairperson rosales said this was the first to go out and we're going to work closely with the developer they've committed on block 6 to work with us and

we're looking forward to working with them on this project >> okay. thank you. >> thank you. are there any other comments from the audience or the commission? i'd like to entertain a motion >> i move that. thank you commissioner singh is there a second >> commissioners. commissioner mondejar. commissioner singh. commissioner chairperson rosales. madam chair the vote is 3 i's >> thank you. next item >> the next order of business j for the transbay development plan on affordable housing requirement as it applies to the mixed neighborhood project on fremont street subject to approval by the board of supervisors in the city and county as the protective body to

the san francisco redevelopment agency and 30 years a payment to the association agency for the use of supporting it project in the transbay area and resolution number make director. >> commissioners the one 81 fremont project is in zone two automotive designated that to the department so you know the transbay district has an unpredicted goal of 31 percent of affordable housing in the district that satisfactory the inclusivey there's an mixed neighborhood project we believe that will create an undue hardship for the blow market

rate homeowners with that, i'd like to ask courtney acting project manager for transbay. >> lots of bays to present this item. >> hello, again commissioners i'm courtney the acting project manager for transbay i'm here to request a variation for a project in the redevelopment on fremont street i'm joined by the project manager jay. that's - (laughter) >> we're san franciscans. >> yeah. thank you. the project is located on fremont street north even if howard street adjacent to the transbay transit center as well as assembly bill requires that

35 percent of the residential unit in the transbay area be made affordable to low to moderate homeowners and with the stand alone unit and 15 on site 14 percent affordable housing on all resident projects in the zoned area. the redevelopment plan gives the commission the permission to meet the affordable housing requirement if it results in practical hardship enforcement will constitute an unreasonable plan and their unique restraint applicable to the property it gives the commission the authority to approve a variation to secure the goals and the

related documents. one 91 fremont street is a mixed neighborhood high i rise project in zone two of the project area designed by the j paul company it's currently under construction and was approved in 2014 it's a 52 story seven hundred foot tall building containing 4 hundred thousand square feet of office and for sale the highest 15 floors of the tower and have 15 thousand feet of retail and 16 thousand square feet of sub terrain parking spaces and in compliance with the on-site requirement the project requires that 11 of the 74 unit be available for low income families. the project developer estimates

that hoa fees will exceed 2 hundred $0.34 thousand dollars per month are the are developer has requested the 11 on site variance from the demonstration the 11 on site be converted to market rate and $15.85 million for the project area. this project is unique in that it's the only mixed neighborhood office and housing development within 9 project and it has the smallest units and the residential units are located on the upper 15 floors. given those unique characteristics the creation of the practical difficulties will be there because of the hoa fees are already high will increase

over time such as the original resident will not be able to afford those and it will have an hardship on the resident. hoa fees could not be adjusted and no help for the residents when the monthly increases occur as initial occupancy they can be increased without the owners and constitute a small minority and this will make owners sell their units. the con cared group talking about the market rate unit they've analyzed the demographic and supply and demand and comparable to develop the

revenue estimates for the 11 proposed b m r unit. they concluded $13.8 million is the net revenue that will accrue to the developer. the $13.85 million is 2 1/2 times the fleeing fee under the dollar housing it will affect e effect the units within the project area ocii will use the money on transbay block 8 just two blocks from the site. ocii is on track to meet the transbay affordable obligations of 35 percent to date ocii has completed one hundred and thirty units on block 11 and provided

funding for other units under construction on block 6 we have 85 affordable units on block 7 and construction will commence in 2015 other 2 hundred and 86 in block eight and nine they've facilitate 6 hundred affordable housing on block 2, 4, and 12. custom 86 the affordable units will achieve the transbay obligations. the payment of the $13.85 million as a condition of the granting the veterinarians requests insures that will not

be detrimental to the public welfare ocii will use the payment to complete the obligation specifically ocii will use the $13.85 million to fund the units on a ocii evaluated site but fund 24 more units. again staff is programming the majority of the fund for transbay block 8. as required the commission approval of the variance request will be subject to approval by the board of supervisors and in capacities as the protective body for ocii because it constitutes a material changed in the ocii programming and additionally because the project is in zone two the planning

commission and board of supervisors will consider approving the development agreement with the developer consistent with the action i'm here along with the property owners to answer question and madam secretary do we have speaker cards >> we have one and (calling names) >> good afternoon, commissioners thank you i'm with the council of community housing organizations here to express our support for the change there are clearly significant issues raised business owner around the hoa dues this addresses that problem we want to say in general we don't want to see this effect the mixed neighborhood to the rental building but clearly this is the

out liar in the types of building we want to commend the methodology using a third party consultant to look at the opportunity cost and come up with a number will probably become a significant point of reference in our work to be able to point to a project that can contribute one $.5 million per unit that will go to building affordable housing in the area so thank you very much. >> thank you. any other speaker cards >> no more speaker cards. >> no other. we'll close public comment questions from commissioners >> i just want to know what is the expeditecy in the past the j p company has in building -

>> yeah. >> you want to speak to that. >> please go to the mike. >> state your name for the record. >> jeanette ceo j paul company we've been in business 35 years and own 35 thousand square feet of office space in the bay area and throughout california we're an experienced developer we hire topnotch architects and although this is our first building in san francisco we come with significant experience. >> but you never had anything in san francisco before. >> no, but we've been based in san francisco for the last 20 years our offices are here in embarcadero and what else do you have in san francisco.

>> say that again. >> what else. >> we have subsequential 40e8dz in susanville and mother-in-lawville and own property in san diego. >> okay. thank you. >> yeah. what is the total price of the project? that is the cost of the project. >> no, no you know the project. >> the total development costs is there an estimate and again, i'm going to turn it over to it's that a little bit different in zone two a privately held parcel so i believe that jay paul bought it from a private developer we don't have the same information for the project that we have for other