>> good morning and, welcome to the transbay joint powers authority board of director's meeting on thursday, september

11th, and the board would like to recognize the staff at sfgtv who record each of our meetings and make the transcripts available on-line and today we want to recognize charles who is filming today's meeting and madam clerk. >> we have a scheduling conflict and therefore will not be present. >> and we have director lee. and we have the representative for the court and the joint powers board. and with that, director lee, and here. >> lee, present. >> director nuru in >> present. >> harper present, and kim? >> present. >> madam chair you have a quorum. >> do we have any communications or board of director's new or old business? >> good morning, directors and members of the public, would i

like to begin by thanking mayor lee, and the tax rates that were introduced in yul july and i would like to thank all of those in the process, and i have been in with, and working along our side and helping to move the project along and thank you very much and, you are support is valuable and now i would like to ask the counsel to provide a little more detail on the out come of the hearing this rate. >> and the counsel for the djpa, and the transit center, plan, provides, that in return for the permission, to build, the taller buildings, then allowed by the existing zoning, and the developers building to these increased heights will

pay the community facilities, district, special tax. the proceeds will be 82.6 percent, which would, help to fund the dtx, and the roof top park, and the train elements of the transit center. and the remaining 17.4 percent would on the street improvements and living streets, other parks, and in the transit center area and the bart station, capacity. and the special tax will be used, to repay the bonds, and that would fund this infrastructure. and now, 4, high-rise buildings in the district, plan area that will be subject to this special tax have received their entitlements from the planning commission and have started and will be breaking ground rkts

350 mission, the developer is kill roy, and the 415, mission and that is the developer sales force, tower and the developer is boston. >> and 41, tahama and the developers and the 181 freemont, and the developer, and the investment ocii, rather than the planning commission and block six is included in the initial cfe, and and they are required to participate in the cfd, and the dda, or the

distribution and development, in the ci and also, prosides the same thing. and developing by tmg has not yet received the entitlements and if it does receive the entitlements and the planning commission will impose the same condition that the tmg participate in this cfd. and so that makes a total of 6 development projects that are subject to the cfd in the near term. >> and the in conjunction with the transit district plan that the per described methology for establishing the special tax rate, the rate will be the annual same as 0.55 percent of the building value, and that will be paid, annually, and 30 years and so that is about a half of one percent, and for 30

years. and the implementation. to determine the tax rates, and to set be forth and by the supervisors and by required by the mela rus, law, and after that the city conducted the study of the current real estate values in the district plan areas and developed the special tax rates for the rm a, equivalent for the annual payment of a 0.55 percent of the value of each building in the district plan area, subject to the tax. >> and the rm a, included an escalation factor, applied to the base tax rate, in the rm a, and based on changes in construction costs prior to the issuance, of the first certificate of occupancy, for each building, and subject to

the tax, and with the escalation, pre, certificate of occupancy, capped at 4 percent. per year. and it will be automatically two percent per year, and the developers objective of these, on the rates and to say, that the rates, stated in the implementation, document, which were based on 2007, real estate values and in the district, updated to 2012 value and we were binding on the city, because a developer is bought the property in reliance on these rates. >> and the document and the rm a are varied for the type of use and whether the office or

the residential or the hotel or the retail. but the rm a, rates also, veriyed the rates depending on the height of the floor in the building, because the higher floors were, or are worth more. and now, to give you an idea of the difference between the rates, the office rate, stated in the implementation document was $3.30 per foot. and per year. and the rm a, averages about 4 dollars and 20 cents per square foot for the office development which is about 25 percent higher than the implementation document rate. and now, the difference in rates for the residential and the hotel and which we were about the same, as of magnitude. and so the city and the rate stated in the implementation, for the soul purpose of projecting the revenues from

the special tax and were not the rates that would be, or that by which the city would be bound in the rm a, and and the implementation document was pretty clear that the rates were going to be established in the future, following this study. each if the rates were determined as of the 2013 values that the rates were too high and the city in response contended that, not only were the rates based on 2013, values, equivalent to 0.55 percent, of value, at that time, but they were actually about 25 percent, lower than the values of today in 2014. based on the developer's bids for the office project, on block five. which were received in july of 2014. and the city, rejected the developer's arguments, and in

july of 2014, the city initiated the cfd, and process, before the board of supervisors, and based on the rm a rates, and the developer and if the city approved with the rates and vote against the formation of the cfd which vote was schedule for december, of this year. it requires a vote in favor of two-thirds of the land owners within the district. and at the public hearing at the board of supervisors on september 9th, last tuesday, on the formation of the cfd, the board of supervisors announced a tentative settlement, with the developers, and the general terms of the settlement are, that the developers will vote to establish the cfd. and the developers will pay the special taxes at the rates, stated in the rm a. and the rates at which the rm a rates will be escalated for the

period before, the developers, start to pay the tax, and where the escalation, formally could go as high as four percent per year. and lower, and but it will be fixed at plus, 2 percent per year and that is until each developer gets the certificate, and starts to pay the tax. and in exchange the developers will pay the special tax for 7 additional years, in other words, from 30 to 37 years. and seven years of additional taxes. and or it will wave all time lines or the cfd to expedite and they will not sue the city. and for the two weeks to allow the details to be worked out and we will be looking closely at the terms of the agreement to determine that the final agreement is consistent with the terms proposed at the board

of supervisor's hearing on september 9th. >> and the proceeds, with about 665 million of that going to the tjpa. and we, the city projects, that the net of the lower escalation, and the tax payments, will result in the same revenues, to the tjpa to the cfd. and if the settlement finalized the staff, though, and will present the settlement to the board at the next board meeting with the resolution that will instruct the executive director whether to vote in favor of the cpd as modified at the settlement and that could occur at the october nine meeting. >> thank you, and unless there are any questions from the

board, moving on with my report, i have previously reported to the board that the u.s. department of transportation has referred to our project as a national model. and identified a lot of our work as national best practices. and as a result of this, we were invited by the federal rail road administration to present that the first delivery conference in washington, d.c., and our own scott delay and mark presented on our behalf and both presentations were very well received and generated positive feedback both from the audience as well as the fra itself, additionally, it was very complimentary. and when they came and conducted their construction, site visit and review of our program. and they identified as a national best practice, our risk and management, and as well as the buy american jobs map and i have provided one to you in may and we are updating these every two months and in may, we have 6140 jobs that we have create and in california

and across the united states, we are adding about 500 jobs a month as a result of the transbay project and right now, we are at 7121, jobs. and in california, and across the united states. and that is about, 16 states in the u.s., that are employing people as a result of our project. >> i also wanted to let the board know with respect to the downtown rail extension, supplemental that we are going to be bringing more information to you some time in october and at this point, the administrative draft has been released for comments and we expect to provide a release to the public for the public comment in time to install in part to present you more information, and i also want to let the board know that we concluded the internship program with the motivated and inspired students that was gratified for all of us involved as well as the contractor to see the good work of the students and we can see the remarks on the website,

under the transbay. and finally, you are going to hear about the construction progress from steve in a moment, but i want to highlight that this month will be completing all of the utility relocation work and it has been many years and it is a milestone to have that mind us, and i will report on that in october, and the in addition, the train levels and it is schedule to be poured on september 27th, and also, a huge milestone, again you will hear more about that from steve. and now, regarding block five, we have good news today, and here to present, on the block five is courtney, of the office of community investment and infrastructure. good morning, and the successor to the redevelopment agency and as you know we are responsible for propairing and selling

certain state-owned parcel to third party developers. lot five is one of the state owned parcels in zone one of the transbay, redevelopment project area and it is located on howard street between main and baoel, and it is zoned for a 550-foot tall office tower, and as you can see in this diagram, the block is oddly shaped with two private parcels on either side, because the typa and the oci, could not come into terms of acquisition, the rfp was issued to develop the western most piece of the block while making parcels m1 and three available for the project required open space. on april second, of this year, ocii issued a request for proposals to the sale of block five, and proposals from the development teams were due on june 25th, 2014, and the

development teams were asked to submit the qualifications and basic development, and the financial proposal. and four proposals were received and evaluated by a selection panel, comprised of the staff and a representative from the transbay committee and, representative from. tjpa and the planning department and also input was received from the ocii compliance staff and the architect of planning and real estate consultant firm on contract for ocii. and the second, and the selection panel reviewed all of the proposal and interviewed all of the development teams and each team is based on the criteria out liepd in the rfp and the selection panel scored, the development team, comprised of the real estate, and who partnered with the john buck company and with the architect sketch partners and benz and

worked with the compliance and consultant butler enterprise group the highest. >> and as you can see that it the selection criteria was heavily weightd on purchase priel, golub had the highest prize for the site. and the next itest was boston properties at 135 million, and jay, poul at 115, and kill roy at 107, and golub received high scores for developer, experience, and they are the developers of lot six. and a residential parcel, also, in zone one, of the project area, and they are partnered joe and buck has extensive commercial experience in chicago. and they also were scored well for their dedication to meeting or exceeding the ocii contracting goals. >> and as i said, the proposal

from the team, included a purchase price of 172.5 million dollars,., 665,000 square feet of rental office space and 550-foot tall tower and also includes the approximately, 15,000 square feet of publicly accessible and open space on parcels m1 and m3. and underground parking garage, for up to 117 parking spaces. and street scape improvements and including the extension of the street and the improvements on howard and main and beal street and the ground floor retail space of 5700 square feet and a minimum lead goal certification for sustainability. >> and now, the team had the highest over all score and, it did not receive the higher score on the design and the selection panel has had, and an oci staff and request that they look at things of the ground floor and the building and we have begun working on them on

kind of refining the concept designs and they will be going back to our commission with the revised designs, and for the purposes of this presentation, i am going to show you, what the over all concept is, and this is the their ground floor and the building tower from on the left is looking north, and on the right, it is looking south. and this is the ground floor. and increase the retail component and decrease the lobby space. and and one of the things that we really like is the addition of these sky balconies for the tenants in the building and again, one of the things that they are proposing in their revised designs is to have them on both sides of the building and the balcony can relate to

the park on top of the transit center. >> they are going to hearing the ema, at the special meeting at noon tomorrow and then we will go back with the presentation on the revised concept designs, and then, we have a lot of work to do between now and march to finalize the dda and get the team to the scematic level and one of the requirement is to pay a non-refundable good faith deposit of $2 million and we anticipate the full amount of the purchase price in september of 2015. and then they will start the construction, and soon as they are ready but more likely than not, april of 2016.

>> with respect to the purchase price, when we presented the budget we identified, 241 million in funding and assuming the price of 172 million holds for block five that will get us to (inaudible) in land sales for phase one or 26 million more than what we presented to you in july of 2014. , the additional 26 million to increase the budget, and we would wait until the financial close of block five to do that. >> we are going to have steve here to update on the report but he was called to jury duty and he will be here next time to present that. >> absolutely. good morning, steve rule with turner construction, and providing the construction oversight for the typa and as

the jective director mentioned some great progress made this month with the last two months we have not, with the meeting in july, and so, but, the success as we have had in the field and also, off site and also with the start of the column sit up and we will show you pictures of that. and change things up just a little bit in the presentation and put some of these issues up front so that we can get into that and this is of course the schedule that have you seen before and the critical areas are really in these structural steel fabrication, and that is the next most critical areas are continuing the lower, concourse, and the concrete, as well as the third lift walls or the first lift off of that lower concourse and all that have work has to be in place for the steel to begin and that is where we are heading towards right now. >> and this is the slide

through the packages approved in the board meeting and mark will update this with the release of the request that are for you tonight with request for the new packages. and the safety statistics, and we did have, unfortunately, two recorded incidents in the last two months, since our july meeting and one trip and fall with an injured wrist, and was a modified duty and so it became recordable and the individual whose shoulder got dislocated while doing the work and that become a recordable incident, and we are up over 1.1 million, craft hours and we have put in place, nearly 70,000 craft hours in the last two months, and again, the lower concourse. is over 80 percent complete and that is the kick off for the structural steel and that is going very well. and some of the statistics and of the lower course, there are 36 in total from the west to

east and we have completed some of them and they are pouring another section on monday and that foundation is almost complete with the upcoming pour on the 27th and this will track the progress of the walls and columns and you will have it at your laser and get through to some of the construction photos here? >> and this is in the western zone and again, the being poured and we have completed all of the level one and two walls and the first and second and, we are completing all of the columns and it is time to get that over and start to put in the lower concourse, and that is the primary focus and you can see that on the entire is almost decked over with the lower concourse and the first pures there will be starting next week, and moving on through and a completing of the western zone, and poureds. >> sxh and in the central zone

this is the core of all internal bracing and shores, and we are thinking about revenue generating like go cart and basketball and while we are waiting for the train to show up. >> and the executive director about those ideas. the third wall allows us to take the level of bracing close to the street and bring that down to the third lift and that opens everything up for the structural steel start and you can see that work happening in two right-hand photographs and in the eastern zone, we are all about the first and second lift walls. and i want to show you the

super structure and steel and concrete and the current schedule indicates that this below grade is getting started at the end of october, with the structure rising out of the ground in the first part of november. and we will keep you up to date on that and the cast notes continue to be delivered as-needed up to oregon and we have a team up in oregon this last week, and our qa team and our qc teams working through the fit ups which i have some pictures, up here in a moment and these are just some of the work going on, and oregon and both for the robotic welding and the attachments and pieces that go to the notes and, prior to erection, and this is the structures, all the way around the structure, all of these are dry fit in oregon in this frame that they have set up and the first and the second one is under way right now and the

first one went very well with the structural engineer and the qa team up there beginning this week, and dennis accompanied them and the reports were that they were doing a very good job and it was exactly what the structural engineer was expecting. >> some of the other fabrication, and this comes from the xkt and we are working on the light column system in the subpoena mer land hand photo in southern california and, that is one of the tapered beams that helped to form the park level. >> and this is the catnote and 139, and of the 304, and they are keeping up with steel production, quite well. >> and yes. >> this is the last shot to the fabrications and the cast nodes and so i did want to bring up the exciting news with the start of the bus ramp that was happening in july and it