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 affordable housing requirement required by occ to meet the affordable housing incentive of 35 percent for the transbay redevelopment plan area the under the redevelopment dissolution it is an enforceable obligation that occ is assumed to go before the oversight board and the called department of finance to determine it is in the best interests

board of supervisors acting a protective body it remains the effort authority to review the material to the ocii affordable housing those actions will happen later this month and early december i want to point out you have a revised reducing resolution in front of you basically, we made editing changes and fixed some type we're recommending approval of t the first amendment and we may make some minor changes going forward as we near the end of the transaction i'm here as well as at representative if the transbay joint powers authority to answer questions thank you. >> thank you

do we have speaker cards. >> i have no speaker cards okay and do we have questions or comments concerns board members of the commission? commissioner mondejar >> yes. i'd like to hear from the tjpa representatives for their comments. >> obviously you need the financing. >> i'm deborah miller the egyptian and one of the principles in norwalk this transaction i have scott the elective affairs with the tjpa as well as bryant jen kings from the tjpa i want to first start off by thanking the staff for

their assistance in negotiating this transaction we've struck a balance for the tjpa to move forward with the financing in the interim basis as needed in order to allow construction to move forward as planned while protecting the agencies interests in affordable housing and the fire chief development of parcel f and block 4. >> i like to hear the comments of the financial advisor. >> hi, i'm as deborah mentioned the financial advisor to the tjpa as evidenced in an early staff report to the tjpa board back when tjpa staff identified a need for funding we went and

reached out to the tiff learned the department of transportation asked us to draw down the loan before we met the conditions present they agreed to amend it to allow us to seek interim finance we have a competition which we have an valuation mranl panel that contained the cities department of finance and interviewed 6 out of the 9 entities and viewing a spectrum of direct loans with the bank and capital markets where short-term or long-term as well as replacements and at that time the golden sacking bank for direct loan is most in terms of due diligence everybody else for the most part look at the transaction offering up

transactions and the loan is for 4 years. >> it was 4 years. >> how is it going to be paid this is one of the reasons we come before you today i'm sure you're aware of the tiff loan is supported by a pledge of tax increment revenue we've been getting from parcel t and 6 other components is additional capital contributions from the transit in general $417 million we expect to get even though initial tax increment is loans $15 million it is not able to pay the hundreds and $75 million we'll capitalize interest we'll on day one have an account to

pay off the interest requirements for investigators and then what the assumption is courtney mentioned hopefully by third quarter of next year we will expect to meet the tiff requirements and get the disbursement and take out the payments. >> do you know how the - >> i'm sorry. >> the interest rate. >> i believe as indicated i hope you received in our packets but it is a loan based on months it is currently around 2.33 and the credit spread in the first year will be 2 hundred and 25 basis points the overall amount will be 2 you know a little bit below 2 hundred 5 percent and requirement in order to structure the capitalized

interest we're going to going get into a hedge that cost is embedded within the bridging. >> okay. thank you. >> you're welcome. >> so he presume the use interim egyptian and this district attorney's office make sure the dot all the i's and cross the t's so everybody is reading the same language we're fully protected. >> we've been working closely jim is our interim council and the city attorney's office is representing and carol wong is representing their department of real estate it's a due diligence review on our part certainly on the part of the tjpa the cycle of comments come back from god man we appreciated the

commissions patience in getting the documents to you, we have reviewed it we do feel in the event number one even we do expect the bridge loan will be paid by tiff precedes we plan for the worse in the event that happens there are provisions in the loan there's a lien price we can moved forward on parcel f and block had the likelihood we'll do so it's difficult because block 4 courtney mentioned the double prime are being used for the temporary terminal and bus ramp reconstruction we can't move forward without the tjpa so even so we plan for the unlikely for the worse case scenario so we

can move forward number 2 again, we don't expect it to happen but again for some reason there's a foreclosure action could we still moved on those and fulfill our obligations in the requirement we've embedded those in the transactions we've planned and done our due diligence and planned for it. >> okay. thank you i move that. >> okay we have a motion by commissioner singh do we have a second. >> second. >> commissioner mondejar has seconded it commissioner singh's motion madam clerk, please call the roll. >> commissioner mondejar commissioner singh supervisor bustos is absent public utilities madam chair rosales 3 i's and one absent.

>> so the resolution is adapted thank you please call the next item are the the next order of business public comment on the items. >> madam chair. >> are there are no speaker cards. >> no. >> the public is out voting obviously so if not please do vote okay. next item. >> the next order of business the report of chair. >> madam chair. >> i have no one. >> the report of the executive director. >> commissioners, i will simply direct you to the forward calendar in our packet we're drawing towards a close at the end of the year we still a a rigorous work program to be - if you have questions we'll bring them up to the setting of the

chair that concludes my report. >> are there any members of the public that want to comment on the director's report. >> okay. next item please. the next order of business item 9 commissioners questions or comments and matters madam chair. >> does any member of the commission have a question or matter? no. >> i have a question i have a comments lift ev'ry voice and sing send is doing a great job. >> the record will reflect. >> the next order of business closed session there's no closed session the next order of business is item 11 adjournment. >> thank you we're adjourned at

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>> that the commission does not tolerate disruptions of any kind please silence all electronic devices. that may sound off during proceedings and when speaking before the commission, if you care to, do state your name for the record. i'd like to take roll commissioner president wu commissioner fong commissioner antonini commissioner hillis commissioner moore and we do expect sociocommissioner johnson's and commissioner richards to arrive first on our agenda is for the case for the agenda the 2013 nexus study to december lovingly, 2014 item 2 for case at 1423 oefgs a