carved out of wood and it is a cast plaster sealing and the only spanish design in an arts building. there are no records about how many people worked on this building. the workman who worked on this building did not all speak the same language. and what happened was the person working next to the other person respected a skill a skill that was so wonderful that we have this masterpiece to show the world today. i'll second the mo been moechld please call the roll. >> commissioner mondejar abstain arrest commissioner singh madam chair rosales madam chair the vote is 2 i's and one abstention. >> the minutes are approved

thank you. >> the next order of business is consent calendar authorizing the executive director to enter into an agreement with the city of san francisco i city ac throw the mayor's office of community and development a $250,000 between the neighborhood center and the formal dissolution law action 90 madam director. >> good afternoon, commissioners and new brunswick u members of the public thank you for joining us commissioners this is a proposed assignment of on economic development loan to the center made in 1994 certainly like as we've seen a number of items got catch up in dissolution and at this point we are recommending the assignment

to the city as the housing successor so the city's plans and missions neighborhood plans for affordable housing project in the mission at the 24th street location can happen with that, i'd like to ask clinical 10 the senior real estate developer specialists to walk through the background and the proposed actions for your consideration. >> thank you director bohe and good afternoon, commissioners over the last several years the centers have been 2, 3, 4 discussion with the mayor's office of housing and community development on a property 35 unit affordable housing project for protecting households on a property on 24th street in the mission district predevelopment funding for the project was approved in 2012 but unfortunately did project faced impeded a loan agreement between

the former agency and n nc out of experience the item before you for consideration this afternoon is the assignment of this loan to ccii to be modified in support of the affordable housing project before getting into the details of this assignment request i'll status with background request and the affirmativeness of loan first background brob b director bohe mentioned back to 1994 in the early 90s, the prospective jurors program called the 24th street revitalization program for small business loans and public space improvements in the mission district there this program nonprofits were eligible to purchase rerehab and use 3w4r50ig9er commercial prompts on 24th street to encourage the

revitalization the program required any acquisition provides the property to the community in terms of jobs and retail original attractions in 18994 the former agree approved the agreement in the amount of 2 hundred and 50 thousand for ac acquisition of the properties and 3 to 5 on the bowling alley under the terms this site with the exception of the space n nc was urging for head start to be used for commercial and leased to nonprofit commercial tenants, however, after n nc worried this site the bowling property can't be converted due to existing commercial zoning and the

property required expensive upgrade as a result, it wasn't leased and the balm i didn't alley site was leased to commercial tenants during the term the formation easy those problems and in 2002, the former commission authorized an agreement to authorize $90,000 to 24th property but the go upgrade were unfortunately not made and the funds dispersonas percent in substantial years this t the provisions of loan agreement were not completed prior to the former agency so currently, the loan which has maturity date of november 2014 is still in place and secured by deeds of trust for forgiveness

only if the terms have been met on the agreement so in february of this year nc c made a request to ccii to informative the loan for the loan agreement to reinvest the loans in the affordable housing project that it needs occ determined it can't be forgotten first, as i imaginations e.r. mentioned all terms and conditions be met in order for the loan to be forgotten n nc has unfortunately not been able to meet all the conditions for the economic development purposes due to the provisions mentioned earlier and forgiveness of the loan needs to imply with the law to have companies to make finding of the

forgiveness of the loan in the best interests of the taking industries now the assignment of the loan all the time at that occ we believe this is consistent with the law and allows the funds to be used for the affordable housing project as requested under the proposed translation n nc adding it will contributor a total of 2 hundred and 50 thousands of sales that represents the loans to the affordable housing project to effectuate the use of the loan in the affordable housing project occ will fit the needs of affordable housing project

consistent with redevelopment dissolution law the project will be funded this will benefit the taxing entities through affordable housing which you know is a critical need in san francisco and in particular in the mission district where the project will be located that will wind down the former agencies activities as required by the dissolution law to occ that concludes my presentation. myself as well as representatives from the n nc n are here to answer questions you might have. >> thank you do we have speaker cards. >> i have no speaker cards. >> no speaker cards mr. mar questions would i like to address the commission on this translation i'll invite members of the public to come up

and victor for the neighborhood centers or centers we have as project manager indicated we've been working on this for quite some time this is the best approach to to resolve this issue in light of the dissolution laws and it will be highly unlikely to get the terms and the conditions of the loan agreements to enable the director to forgive the loan this will be highly, highly unlikely what the project intends to do is take one residential dwelling that was never intended to remain as part of the inventory so the the president to take that asset the single dwelling housing which

when it was rented rented to students who at that time, were going to stanford university and he everyone thought they'd move out but because of the rent control laws once they graduated and become professionals they decide to stay there so we're not in a position to take any action to evict them the only thing would have been the ellis act and in order to fulfill the economics he development requirement to generate a commercial space out of this housing unit it will mean we'll have to get rid of a housing unit a special condition to convert it into commercial 0 it is an impossibility so to cut to the chase the best outcome the

key language that is in the assignment we'll take once we sell the asset we'll take a total of $250,000 and allocate it to the bigger project the higher immensity housing for seniors or special needs residents of san francisco which is highly, highly needed we've been working closely with the mayor's office and members of the public members of the community that support that that project it will yield community e community space at the center that will be complimentary to the type of housing that will be built out so it's an ideal type of program in order to move forward we need the supported from the commission it is a bit of more complicated than it ought to be but no way

around getting around it from the local prospective good thing the upside because m mc has been responsible and keeping the asset in working condition navigation the 24th street property has created more jobs than complamentdz it exceeded the number of jobs it wasn't the same category of jobs complaemd but a lot more than required under the amendment that that fulfilled again that legal be combonlt stopped it from the full term caught between a rock and hard place the mayor's office has identified this as one of four important projects in the mission district and we're working with the, in

fact, we've got a meeting with the mayor on thursday to look at feinstein's opportunity to get the project underway. >> okay. thank you do the commissioners have any questions. >> this loan is going on for a long time is it a loan or grant? it's structured as a loan but it is structured so it can be forgotten at the end of the term if all conditions met in if not due >> what are the conditions. >> the loan agreement basically says all conditions have to be met and as was alluded to provided permanent jobs and done a lot of wonderful things for the community the big-ticket items we couldn't finds inclines for meeting the converting the

space or renting out the space for commercial purposes that's the intent of the loan as you've heard they were not able to do that to rent to the tenants. >> okay. thank you. >> when just because you've mentioned it it when that condition was compassed did the agency not knows or the party know that the zoning wouldn't allow commercial purposes. >> an balm i didn't. >> awning on balm i didn't and victor mary confesses might be able to talk about that. >> well, we actually discovered when we approached the agency over 5 years ago to try to see if we could have a part of the loan forgiven at that time, navigate we scheduled the item to come before the commission

over 5 years ago but we decided that that was better to just let the time run because it was going to be an impossibility it was not dlofrdz until i reviewed the loan document and brought it to the council more and more wills this was a mistake that had been made in 1994 unfortunately yeah. >> do you have any questions i want to raise before the impanel supervisor bustos that's not here. >> i have questions so when we make this loan there are interests payment that have to be made were those payments made and the interest payments under the loan are only made in it was in default and custodial due

otherwise no interest payment. >> no interest payments so thank you sure. >> supervisor bustos is not here obviously he had a a lot they couldn't avoid and was committed to before articulating on the commissioner duty he expressed a concern from his prospective he was concerned that a building on balm i didn't was being returned to the market and was very generosity impressed but worried and concern i'll put this on record this is perhaps not an answer to freud would that asset essentially when it's sold it is sold in the open market at

market no conditions no market conditions to make it an affordable unit of it's from the mayor's office and your correct someone else can probably do a better answer but from my prospective and the translation before you the braid has my understanding they've voted to authorize the sale but this is as far as it goes so n nc court so unless theirs negotiation once the loan transfers to occ but this is the last thing nc c board authorizes the sale. >> would you like to say something because victor was concerned he was a member of the n nc board and now on the agency he's a little bit couldn't be

here. >> the n m mc as you may know is really in the provision of caregiver services for youth and families they're not in the residential or housing business they're not in the business of running residential units so the project that is being contemplated is not operated by them it would be the 35 units or more operated by mercy charities so it was contemplated this asset would be either incorporated into a larger project or sold or potentially demolished unfortunately, because it's a historical asset is wouldn't be demolished we enclosed that possibility so the board voted in order to comply with historical preservation laws and policies it will not

move to demolish it even though there might have been an argument the need for greater immensity we might have been able to get the approval from the commission we decided we were working in partnering with the city not to pursue that at the end of the day that's one of the reaps why m mc decided to secondly, it it will be a greater liability for money to take it councilmember their program 80s to rehab the building it's a significant sizeable property and it exceeds over 35 hundred square feet more or less so it would cost them a lot of money and really that money can better be spent in stabilizing the services they currently provide into investing

the money into higher immensity the other way of commissioner bustos the m mc about bring 35 units on the market at the expels of one that will be sold in the open market to answer your question. >> thank you okay any other questions? >> i want to know if the mayor the mayor's office of housing has to say anything? good afternoon teresa mayor's office of housing of community development we're looking forward to the assignment of this particular loan to our jurisdiction so we can move forward with m mc in making that affordable housing possible at

their 24th street site >> thank you. i move this. >> okay item has been moved by commissioner singh we have a second commissioner mondejar please call roll. >> commissioner mondejar commissioner singh supervisor bustos is absent arrest madam chair rosales madam chair the vote is 3 i's and one absent. >> okay seeing the item passes thank you please call the next item the next order of business is continually authorizing the amendment to the transbay option for the purchase and sale of real property to take related actions to facilitate the transbay joint powers authority and golden sacking by a subject to the approval of the board of supervisors of the city of san francisco the oversight board of

the city of san francisco and the california department of transbay project area decision and action madam director. >> thank you madam secretary commissioners i'm sure you're aware of the transbay redevelopment will project area has a number of agencies with core missions certainly the topple is key mission to assure the fill construction of the transbay transit center and the commission under the enforceable obligations this have the parcels that flow through the tjpa has a key mission to assure the development of the affordable housing another structure in the transbay area a be complicated project one that requires multiple levels of financing and review the actions before i help to facilitate the

overview project and further the project in a way that allows us to continue with our obligations as well so with that, introduction i'd like to ask courtney bash if the transbay to talk and representatives from the tjpa are here as well. >> hi, i'm courtney the acting project manager for the project area we're having technical difficulty oh, there we go thanks dawn a brief history of the transbay project with the enforceable obligation i'll run through this quickly as a background in 2003 the state impacted 8812 the don't guess for the construction of the new

transbay center the tangle or the tjpa is responsible for planning constructing and eventually operating the new transbay center also in 2003, the tjpa the city and state entered into a coach agreement and agreed to transfer 10 acres of the transbay land to help fund construction of the new transit center in 2005 the transbay plan, which provides for have you development of 40 acres of land in downtown san francisco including the torrential two of the primary goals are funding for the sales precedes and the non housing for the new t pc and, of course, developing a new transit orntd neighborhood on approximately 10 acres of public property most

was owned by the state 12 hundred units affordable and commercial space as well as parks and landscapes and other improvements in 2006, the tjpa implemented the agency to take the lead roll for the state owned parcels in 2008, the city and tjpa entered into the tax increment budget all the time for the proceeds from the pubically owned parcels for the project in 2008, and indicator out the implementation agreement the city and agency and the tjpa entered an option agreement that inquires the state owned parcels and distribute the tax increment to the tjpa the option agreement requires the former agency to perform all the obligations

under the prelims agreement which requires amongst the affordable housing obligation and i'm sure you're aware of in april of last year the state determined finally and exclusively that the implementation agreements and associated agreement were an enforceable obligation so the brief background on the transbay center phase one fwlo grade 5.4 rooftop park and grants connecting the before this on bay bridge to the terminal the terminal itself and business storage phase two the extension of the rail up to the transbay transit center

in order to fill it's obligations to complete the center the tjpa entered into a hundred and $74 million loan under the innovation act the tjpa has not satisfied the conditions that include receiving the gross sales revenue of $129 million and demonstrated the project is fully fund for the f d district as a result, the tjpa can't you currently drive down the are an and those conditions will not be met until the fall of 2015 with tax increments generated from the parcels so meet certain funding and cash

requirements the tjpa must secure interim financing tjpa constructed a procurement process to negotiate a credit agreement to secure a hundred and $71 million direct loan it will have a 4 year terms in full maturity and full or in part at the option felt tjpa at least one year after closing of the fivensz the tjpa intend and required by the terms of financing to repay from the proceeds from the tiff loan in addition to this security of the revenue golden sacking needs the protection in the inlikely friend of mine they're not able to repay the finance within the 4 year term of loan this includes the deed of trust on parcel f is a commercial

office development located on howard between 1 and second street available for development in 2016 after the tjpa is finished you urging it for construction of the terminal itself additional security will be needed covenant on parcel o and o double prime those are the site of temporary terminal and b will be subsidize into 3 blocks block 4 on the northern portion will be a mixed use development and block 3 the middle site will be a public small business and block the one 0 the southern portion will be an affordable redevelopment those parcels will be made available for development on the temporary terminal is no longer needed in 2018

additional security requires an amendment to the option agreement that is before you today and subordination related to parcel f and double prime while the fingsz is outstanding occ will remain the right loans as long as it is adopted into a lockbox the lion adding about minimum value under the redevelopment plan like the affordable obligations the obligation will be released when the bridge loan is repaid subordination specifics that any party that ours block 4 affole