existing development does not pay and that the tax based and the taxes based on land use, consistent with the value is described in the transit center district plan and based on that evaluation performed by the group and the land use category and residential, and looking at those for sale and rental and the office and hotel, retail, and the initial maximum special rates for each property, based on a fiscal year of 13, 14, base rates and the base rate increases by an annual infrastructure cost inflation estimate each year and which is consistent with the impact fees and there is a gap and a floor of a 4 percent change. and after project receives its certificate of occupancy and then there will be a maximum rate of 2 percent each year. there are exemptions and the affordable housing is exempt and child care space for instance. >> and so here is a map showing

the cfd boundary along with the transbay redevelopment boundary, if you can see the outline in red is the cfd boundary and then, you can see sort of the gray lines within that of the transbay plan, and zone one, which are the public parcels under ocii jurisdiction and it is indicated there, and sort of at the bottom of the plan area and then in zone two, are private parcels under the jurisdiction of the planning department and so within that boundary were rezoned through the center and district plan and they got significant height increases on several parcel and previously they topped out at 550 feet and now, multiple development parcel cans go up to 700 feet or above. and they also removed, the density limits which has allowed more development on parcel and as part of the adoption of the plan and the up zoning, the code was amended to require new impact fees and

participation in this melarue district by the new development. and here is a closer out, more detailed view and you can see that the initial parcels, are shaded in there that are, the initial ones, and then, the, and they would vote on the cfd and that includes all of the publicly owned parcels and then all of the parcels that have already entitled projects, and have joining the cfd as part of the entitlement requirements and the future an nexation is the same as the boundary and as property jects get in this boundary they will be required to annex into the existing cfd, but the future parcels don't vote yet on the formation of the cfd. >> so, and now i will talk about the plan for both the revenue and the expenditures within the cfd and it will primarily pay for that downtown rail extension that i

mentioned, but from the fourth and king, to the new transit center and along with a lot of street and open space improvements, and this is going to supplement the tax fees and revenue and there is a list of eligible capitol projects in the cfd legislation and specifically those items are funding the train box, that dtx extension and the roof top park on the transit center and a lot of public realm improvements to serve the pedestrians coming and the new development and the intention, really is that we do anticipate that there will be a large number of pedestrians coming to this transit terminal and this new development and moving between there and market street and so it is paying for a lot of those public improvements in that area, and the planning department and the department of public works are working on a detailed street scape plan including the detailed cost estimates of what that will take. >> and before the issuance, and that will be issued after the

district is formed, and after the first certificate of occupancy is issued. and each bond issuance will then be secured by that special tax payment with a cap of up to 1.4 billion dollars. there is in terms of government and administration, of the cfd, that will be governed by what is called a joint facility agreement, and the board of supervisors then is also, responsible for forming the district. and once that district is formed, the board must approve bond authorizations as well as a capitol plan and a budget through its usual board processes. >> the capital planning committee will approve a plan and making recommendations about the plan in the budget and the city's director of public finance will be responsible for projecting those bond renew and recommending issuances and recommending tax commitmentments for the specific project and based on

those revenues there will be a committee that will meet to develop a five year capitol plan, spending that and consistent with that agreement. and this would then be recommended to that capitol planning committee for the approval and you can see that there are several steps and reviews to be sure that they are in step are the revenues. >> so, as i mentioned the final steps are to hold the election for the formation of the cfd and the board of supervisors will take the final legislative action in december. and so, with your approval today, and then the executive director will be authorized to execute a ballot since we own the block one which is within the district. >> and so that concludes my presentation and i am happy to answer any questions about this matter. >> thank you. >> do you have any speaker cards. >>vy no speaker cards. >> okay. no conversation, and discussion? comments by commissioners? >> i just want to know about

this. 1.4 billion, bonds. can you explain that? >> one second. so the, and the 1.4 billion is the maximum amount of debt that be issued and the question of what it will be spent o >> right, and so that was that list of item primarily and the train box for the trains coming in to the terminal and a lot of street scape and there is a capitol list that is included in the legislation and then as the district goes forward, the

city's capitol planning committee will be reviewing things to determine, what this specific uses will be for each bond issuance. >> and do you know if a vendor is going to or what wither going to issue these bonds? >> well the city will issue them and so it is not an ocii controlled cfd, it is a city and, we will be taking action because we own a parcel of land within the district. and so, once the first project gets the cfo i think that was the point at which, they can issue the debt. and i am not sure if i know exactly, unless the director has a sense on when the first bond issuance and i can find that out. >> and i believe that the first project will get a cfo about a year, or a year and a half from now. so, after that, building gets its certificate of occupancy, and then, you know, all of the other steps will have to happen and the city will start to issue the debt. >> okay. >> do we have any other questions? >> no i would like to move the

item. >> before we move that i just have a question and just because it is interesting to me and you have explained how ccii would cast our vote and with respect to the other property owners in the district, if it is a private company let's say jay paul or anyone else, how is it that they do, and do you know? do they go through the board of directors? >> i think that it probably would depend on how each development and entity is controlled, and so they will have their internal, you know, review process and how they cast the ballot and that i think it depends on the type of that company, with the property owner. >> okay. >> thank you. >> and i have no other questions. >> the motions are made by commissioner bustos and we have a second. >> second by commissioner singh. >> call the roll. >> announce your vote. >> commissioner mondejar, absent. >> singh. >> yes. >> bustos. >> yes. >> madam chair, rosales. >> yes. >> three ayes and one

>> hi everyone, welcome.

my name is jason freed man and with the associated estates and this is really exciting, i have to tell you, to see all of you here and to be standing at this site, in which for many of us, has been a long time coming. and this spots that been in the works for 7 years, plus. and to see it actually being built, especially for many of you who have been gone for that long. and this is, this is exciting. >> and thank you for joining us here today, for the official ground breaking ceremony for project known as 35 , supervisor kim for being here today and really your support for this project continues to support in the community is very important to us, and so thank you. >> mayor lee, you really did a fantastic job in this city of san francisco, both in raising the commercial and the

residential development and really unprecedented development. supervisor kim, your team has been really supportive and we are very appreciative. your efforts we could not do it without you. and we thank you very much. >> let me tell you a little bit about the ro ject for those of you who don't know, we do have photographs up here and probably the most important one is to my left, which is where we are in the city of san francisco. truly a gateway site, and a gateway project, and we are proud to have it stand out in san francisco as a place where people will see, recognize, know, and be proud to be a part of. this project really is a culmination of a lot of thought and effort into trying to embrace the community. and the neighborhood. through the task force, and the

local community members, we now have a project that embraces the neighborhood, and it has a lot of unique feature and we have 7 buildings, distinct buildings with the unique design. 410 apartments and 62 of which will be affordable. we are going to have restaurants, neighborhood retail and over 10,000 square foot office building at that end of the project and we have over 1,000 square feet of unique zoning called pdr state and which is production and distribution and repair and really a very complimenting use for this area. and where we are sitting right now is going to be a public park, and probably one of the most exciting parts of this project and it will be open to the public and we will have restaurants and coffee shops surrounding it and it should be really unique and special. one of the most meaningful

parts of this development has to be the valley, which is just behind us. as many of you know that the valley has significant social heritage to the lg btq community. and there are nearly a 2 million dollar investment by the city to improve the (inaudible) valley will insure the preservation of the history and the significant improvement to one of the most well known streets in the city. and just like western soma, we believe that the community will be a greater sum of all of its parts. >> in order to pull off a development like this it takes coordination and kaor ration with the city and the development team and the community is represented by the western soma task force, and with the many ways a conscience of this project. and they set the high expectations and desired it to be as special as it is of course, the gateway to san

francisco. thank you for keeping us on track, and making sure that we preserve the integrity of what has come before us. when developing urban core properties like this, the come mri date indicated and responsibilities fall on the shoeders of many groups like the planning department and the task force and other city agencies like dpw and mta and dbi. all of these groups have been and will continue to be critical partners in helping us realize the full potential of this project. thank you all for all that you have done and your continued efforts. and it has been just as important to have good partners, and let me first thank aig, and the global real estate and the partner in the development and they continue to be an invester in the community and an owner of property in san francisco, and together, with us, they see that the true potential of the

358. and we have been doing business with tnc bank for over 30 years. and there is support has been tremendous, and to have them involved in really what is a transformational project means a lot and thank you for your support. >> certainly last but not least, in order to pull off the development like this, they do not appear just out of the ground and then they are created for the brilliant minds like massey and his architect team at kma, and probably the most important person that i need to acknowledge here is amir massey amir has been the one is responsible for meeting with the city and working with the community and going to i have heard, 120 meetings and 150 meetings, and a lot of meetings. and that is really the difficult part of creating a project like this. and i know that amir is excited

to see his brainchild come to life and get and so con congratulations he and his team have the great support from the best professionals in the business including the general contractor, robert sobiahi, the developers and the operators of the department communities all across the country, associated estates and has some exciting cities that were in, but i have to tell you that san francisco is the most exciting city that we are in. definitely the most eclectic city, i know that for many of my new friends here what makes the city great is that it is different and unique. and we are so pleased to call san francisco home for us now. and we are proud to be part of your community, and we want you to know that we take our

responsibilities very seriously. and we plan to build and operate a community that all of us will be proud of. associated estates has been in business for over 50 years, and when we come to the community, we make it our home. san francisco is a place where we will call home for many years to come. and we want to be proud of our contribution to the community. and i can tell you that it is my goal that when the people drive down the highway, or 8th or harrison, and they look at this beautiful development, they will say, wow, that is where i want to live. thank you, again for all coming today and mayor lee, and supervisor kim and i would like to invite you up to say a few words and thank you again for all of your support. enjoy. [ applause ] >> jason, thank you. and good morning, everyone. welcome to the heart of san

francisco, our western soma. and it is great weekend and let me tell you that i like getting up on monday mornings when the giants win the 9ers win, and when we have developers that love this city and know what it is about. it is great to get up and let me say this, this is a very first time supervisor kim and i have been together in a ground breaking in her district. first time this week. and a monday. but i will say this, in reference to jason's wonderful comments, he is absolutely right, you know, sometimes when you are trying to bake something really good and you want to demonstrate how much this development can be for the community and you spend that quality time and i just didn't know that it would take you seven years to do so. and so, of course i walked up

and i told tom and taken seven years to get the permits and we better move faster than that, but when you look at what they have proposed here, and what they are about to build and what they are permitted to build, you already can recognize that there is a tremendous reflection of respect to this community, supervisor kim knows that because she works with a lot of developers and we work with a lot of developers in the city. and yes, these are good times. but we distinguish between developers that love our city and developers that just want to make a buck. and it is nice to be here with a developer and a team of team that are reflective of what this community wants and needs, and spend the quality time doing that and this will be a very distinctive measure, reflected in the way that you have done this and i love the flexibility that you have made, it is not just forwarded and ten units of people living there, they are flexible units and they are units that will

come in a different lifestyle and a different sizes of families, and the measurements that you made for the streets and how your designers have regarded how people get around these streets. and making sure that people just don't use the alleyway as a pass way to freeway on-ramp and the pedestrian safety is not only to be reported and honored but the open spaces that you have designed here will allow the people to stop and say, hey, this is a community, that we have here, not just a place where people live, it is a community of space, of retail, of small businesses, and of manufacturing, and i was there just a block away at pinky's bakery this morning and they got the really sense and they were telling us, when is it? is that really for sure? and of course, they are expressing the years that people years and i

wondered gosh isn't that a little bit under utilized and when we saw the other developments go around, we became more convinced that the

excitement that this will have and we knew that during those years that you were working hard to meet with everybody and make sure that you did it right, and did it well. and it is already reflected in the designs and the concepts that building that you have here and, so, you have created kind of the giant 49ers type of excitement here and we are going to win with this one, and we are really going to win world class, designs, and a complimentary of our neighborhoods and just, timeliness, is so important, and certainly, with your investers and this is a good time but it is also a time to say let's do something for all of our communities and let's really have a blessing here rather than a ground breaking and it is almost a blessing that it compliments the hours of people's input, and everybody is excited and anxious that you are here, we are going to not only watch we are all participate in some level to support this going up, and going out, and then, to be

able to have and invite hundreds of families to live here, and work here and we are excited about this, so thank you, for bringing this development here. and we will do what we should do and we will honor this investment appropriately, and we will work with everybody to resolve every problem out here, and anything that you need will be there for you, and certainly, i know that supervisor kim is excited about this as well, and i think that we both share this as a great, great moment, moving forward, thank you very much for being here. >> [ applause ] >> and supervisor, this is the first of this week, supervisor kim. >> thank you mr. mayor and we often trade off at introducing one another. and really the incredible case of construction development that is happening here in this part of the city and the growth that is happening here in the south of market, throughout district six is truly

tremendous. but i have to agree with mr. mayor, and actually he gave me speech, and i don't know if i needed to talk to them, and for them to stop talking to one another, but that was really my exact speech and this development is really a jewel at the heart of western soma, and i do meet with a lot of developers, but sometimes when developers come in with a project and a plan, i don't want to sound cheesy, but the project actually kind of sings to you and it is beautiful. and when amir came to our office, and by the way, i have only worked on a withs with the western soma for three years, there are many here that worked for 8 years, and they served on the task force for 8 years. and i know that amir was a integral part of the process every part of the way, but when he came to our office to present the two projects both, the bus depot, and the musical

concourse, i was struck how incredibly sensitive that the project was to the neighborhood, and often times, we spent a lot of time wrangling and we would like to see this and how we will fit into the neighborhood and we want to see the affordable housing and we want to see the jobs and a diversity of jobs and all of that came wrapped in this beautiful project that came to our office, because, amir had spent the countless number of meetings i guess it was 150 meetings listening to the community about what it wanted to see from a major development project. and 8,000 square foot of pdr i see sf made here and which trains, you know, women particularly immigrant women to run their own businesses and in a city that is obsessed with food. and so they can share in the wealth of this economy and thank you for being here, and we want to see the affordable housing and thank you for doing 15 percent on site, that is a huge commitment.

>> and making sure that we have a mix of jobs and also recognizing the stud bar which is an icon in the western south of market community and making sure that we respected that cultural icon here and of course as the mayor mentioned the history of the lgbtq is particularly the leather community in wrinkled alley and that park and alley way is going to be one of the most exciting parts of this project and i can't wait for the stone benches that are warmed by underneath, i am always cold in staoet city and so i live two blocks away and i know that i am going to come here with friends and sit on a warm bench and those are the creative ideas that are going to make this project a true part of what san francisco is. and san francisco is eccentric and diverse and that is why the people want to come here and live in the city and it is great to not just get another glass project which i also support in san francisco, but

it is something that really going to fit into the fabric of the neighborhood and make the identity of this neighborhood even stronger not less so. i want to recognize a couple of other folks i mentioned the eight years that i see paul lord a former planner with the planning department and i know that his heart was in the western soma plan and so thank you for all of your work and dedication and we will be making this a community process and i know that was challenging for the planning department for us and so thank you, and i don't see corey, but he took over and really, and really, made sure that the true vision behind this plan stayed true, throughout his course, and i see sf county transportation authority, and that worked on the transportation portion, and we super chesser young and i know that liz bryson who could not be here and of course, chang and the pedestrian safety improvements are essential as we move from more of a manufacturing neighborhood and the light industrial

neighborhood to a mixed use neighborhood and we need those crosswalks and we need the wider sidewalks and to be safe for the people to walk so that they can go to work and safely and to bike safely. and throughout the neighborhoods so that we can build that smart road of neighborhood and so finally, and amir i want to thank you, and it was truly, an extraordinary effort to put this project together and incorporate everyone's idea and make it fit into this one project, and i am really excited for this project to get built and i know that you did a lot of work with sunny and gulo in my office who also went to a lot of meetings on behalf of this project and april, but we really want to support this project and this was something that we were really proud of to be a part of and to support and thank you all, thank you to everyone, here. that is participating so that we could be at this ground breaking today,