appearel, convenience stores cosmetics and boutiques. >> we will. >> on. we're having technical difficulties. >> okay. so convenience, cosmetics and boutiques, electronics, flowers and news stands and because the retail component is really part of the urban fabric of the neighborhood we envision that it will offer amenities for residents as well such as wellness, dental and optical. at the roof top park

we envision a restaurant as fred described, and cafe space providing iconic architecture as an attractive setting to a chef driven concept and a sheik city cafe. the theater and grand hall will provide the perfect back drop as well as for corporate events and concerts and performances such as weddings and possibly ballet and/or choir. so why retail? transportation centers and transit oriented developments throughout the world are contributing to the urban fabric of our cities. the center has the opportunity to capitalize on this trend while shaping the neighborhood. the goals and objectives of the retail space

and operations are first and foremost to maximize revenue through successful market driven retail programs. to activate the facility with destination oriented amenities that make the transit center accessible to all the residents of the neighborhood; to provide programming for open spaces at the park and amplitheater and last but not least the culture of service that offers a vibrant, safe, and clean and welcoming environment for residents and commuters. using case precedent the tjpa has created a market driven concept and approach drawing on best practices throughout the nation, both locally and nationally. we have looked to the wonderful offering at the ferry building. as fred mentioned it's 65,000 square feet. we love what is

happening at san francisco airport with the blend of national and local retailers, and then we've also looked to grand central station and the station in boston for best practices. as i mentioned the retail consent is market driven and san francisco is repeatedly ranked among the leading real estate investment markets in the country due to its diverse economic base, its unparalleled access to intellect url capital and quality of life. the transit center is redefining the city. the district which is part of the central business district is emerging as the new center of the city and it's being defined by those new property in the the trans bays neighborhood some of which are shown here. strong real estate fundamentals contribute to this growth and make san francisco

highly desirable to investors. some of these trends include single digit vacancy rates and innovation, economy with vigorous employment growth, rapid leasing activity and healthy absorption and as this graph indicates rents have reached a 10 year high and vacancy rates have reached a 10 year low. san francisco continues to dominate all other u.s. markets. presently we have seen 18 consecutive quart ares of occupancy growth and rent of 15 quarters. the neighborhood is experiencing a flurry of activity and is now considered the must have address by notable companies. some of the strong market fundamentals as i have mentioned include work force

population with over 6 million square feet under construction of new office space we anticipate that there will be -- another 35,000 workers in the trans bay neighborhood with over 4500 res residential homes under construction we anticipate 7,000 new residents in the neighborhood, not to mention that san francisco continues to be one of the top tourism destinations in the country with over 16.5 million visitors annually and approximately 100,000 visitors to the trans bay trans itd center are anticipated. moving on to the approach and i can't under score enough about the creation of this culture of service excellence, so in order to do that the tjpa seeks to contract

with an experienced owner, developer leasing agent or manager of real estate spaces such as the transit center with a vision and skills to successfully lease and manage a highly public venue. again we look to best practices. these are some of the models that work where they have out sourced leasing and management. they're managed and leased through long-term ground leases and they're public /private partnerships. the benefit of this approach essentially is that it out sources leasing and management to real estate experts, reduces the capital investments required by the tjpa, limits the risk and provides predictability for revenues. some of the responsibilities that we will look to the master leaser and

the facility management and operating team will be to provide a success merchandising program, to provide that culture of service and memorable experience, to program the public spaces with events and activities, and last but not least and certainly most important to provide that secure, safe environment for transit users, visitors and residents and workers in the neighborhood. last but not least the schedule that we anticipate and that is necessary in order for the retail component to open coincidentally with the transit center is as follows. we open to issue the rfq in coming days which is the primary qualifying round of the process. and we would then issue the rfp to those qualified

teams in the first quarter of 2015 with the anticipation of executing a development -- excuse me, a master lease agreement in the fall of 2015 and then opening the retail in 2017. this gives the designated team two years pre-leasing activity which we deem appropriate for this amount of space and that concludes my presentation and open up to questions. thank you. >> recs are there any questions or comments? director reiskin. >> yeah thank you. i think it's a great report and concept and i think essentially out sourcing the entire operation makes all the sense in the world, so my only main question has to do with the diversity -- how do we create diverse its of the retail mix? >> >> and i think in the

presentation it said the idea is not to be a mall but i didn't see about the goals about local businesses, local retailers and how do we keep it from becoming a generic mall feeling place? >> i should have in the powerpoint -- i mentioned it's one of the key objectives to have a space that reflects the diversity and richness of the bay area, the various ethnic groups that we have diversity and that will be in the documents, the rfq and rfp and karen can add more to that. >> right. i think the goal is set the vision, not only through the merchandising and programming but also through design guidelines and we have met with san francisco airport and we were very inspired by their local business program and i think a similar model to what they have adopted there would be very appropriate for the transit center.

>> so is there a point in time where either the staff or the board will identify x percent of the space will be reserved for local bay area businesses? how do we have assurance that -- [inaudible] it's great to have the goals -- >> yes, we do with all of our procurement documents. we state a goal and objective that the tjpa encourages that the proposer provide and that's something that we will do similarly here in keeping with the 2009sbe program adopted by the board. am i missing anybody debra? >> at this point we're at the rfq stage so we're identifying qualifications and criteria for teams that are eligible to respond to the opportunity. we will move to developing the request for proposals which will spell out the minimum criteria and the necessities for the

program that the qualified teams respond to. at this point we could specify criteria related to small business and like matters. >> okay. and this is maybe a little bit different than a kind of construction -- >> it is -- >> or sbe requirement. this is as sfo has done to some extent and other -- union station in denver has done to some extent and bring in restaurants and businesses that exist in the area opposed to national chains. in terms of the rfq i imagine some of the firms that -- mean of the firms could be more traditional mall oriented retail managers who would -- that's who their networks are. that's what they do, so i think it's helpful to have that language even at the rfq stage so that's really clear that we want folk who know

how to bring in local, regional businesses. >> i agree. and one of the things that we discuss the with the airport when we met with them on this is the outreach and they have a good outreach program that they go out into the neighborhoods and into the community and that's what we're going to be doing as well and we asked them for the contacts and who they go out to when they're letting people know the opportunities are coming on board whether in the retail merchandising area or the food restaurant area and you're right director we will add language in the rfq. >> so the rfp -- would that come back to the board before it's issued? >> we would bring -- we would let you know about it, yes. if you would like to see it and comment on it you could do that as well. >> again i think this is for a lot of people -- >> [inaudible] >> -- experience the transit center the experience is through the retail and the programming so i think -- >> yeah, absolutely. we will let you know who qualifies and we will bring that back to you.

>> okay. i think those criteria are going to be important because translating from goals into minimum requirements three quarters of retail needs to be reserved for local, regional, something like that i think is really important. >> i agree. >> thank you. >> director nuru. >> yeah, i think in line with what director reiskin and should be part of the package now and that's what they did at the airport and it says we are encouraging local businesses, local stores to come in so rather than go to this level where the big chain and national stores come in and we look at who is local and who can come in i think the advertising and everything should happen at this stage so those people know there is an opportunity for them and they're not coming in as second or third and a lot of the local ones are doing well now. at the airport many of the local restaurants -- every year it's

about 10%, their growth, so i would recommend that at this stage that there is clearly advertising that says there is going to be room for you and you should join as part of the package. >> right. i think the airport is at 35% local businesses and as i mentioned we have met with them and they have a terrific model and we can adopt some of the language that they have used in the past and their process has been incredibly successful so we anticipate given the location of the transit center that we should be equally as successful. >> you might also want to look at the [inaudible] project is doing also. they're trying to get local businesses and local participation for their project. >> okay. thank you. >> director harper. >> yes, i agree very much with director reiskin. there's a lot of policy in this, and i would

very much like to keep on track of this as it goes through because some of the of these -- what you say the first document is going to indicate what we need and in addition but i don't think san francisco airport is much good as a model for us beyond attracting -- i mean believe it or not ac transit is not going to supply 99% of the customers in this retail space. it's a much, much different setting than san francisco airport in which the transit is 99% of the customers. 99% of these customers are going to come from the neighborhood and that's what i can tell the architects already know so i'm not saying this as a way to enlighten you but what i am suggesting at this point we put out there that there be a

neighborhood advisory group that talks about what they would like to see in the area and can start with the developers developing around here because they want to find out what is going on and would like input and certainly the people that already live around here would appreciate getting that kind of input, and i think it will strengthen the whole thing because that's where our income is going to come from, not from my riders. >> agree. >> so it's going to be important to stay very sensitive to both the people who live here and the people who are developing here, and i think we need to start that -- send that message out from the beginning. we want your input. we want to know what you think about what we're trying to do here, and just kind of get everybody secure that this is a beautiful design, i mean gorgeous. it's just great, and it can be just all of this, no question, but i think we have to fulfill that to

the community and the neighborhood around here and say we're going to have constant input. we're going to start it early and maintain it as it goes and this master leaser is going to have to deal with the advisory committee and they want to anyway. >> >> and i hope they appreciate the fact we want to set it up that way. >> agree. >> just to make some additional comments. i think i'm in concurrence with the directors. the design is beautiful and exciting to visualize how the retail is going to look and what is exciting about is i think the terminal will be more successful if workers and residents view it not as a transportation hub but a place where they can go to a great restaurant, get lunch, retail and even service which actually i never thought about, the concept having spa or exercise, gym classes, dental services is going to provide a really good resource and i know

from the residents in that part south of market the complaint is often it's not an activated neighborhood and they have to go very far for retail and food and services so if they can go there it will activate the terminal through the night which is exciting. i would love to stay involved in that process. i was going to suggest that we present to the small business commission here at city hall and get their input and feedback on how to get local businesses engaged in what would encourage them to apply and ensure they will have a strong footprint in the terminal. i know i hear more and more from residents they want to see formula retail controls and not it's appropriate for this site but they want to see a mix and what streaks people to restaurants and they're going to a unique place and unique to san francisco. one thing i was going to suggest and i know

there was a push for child care on the terminal and i don't know where that conversation has gone because we simply lack resources on it but it might be good to partner with an educational institution and usf or state and i know they have a school downtown, business school and what is exciting because it's connected to so many transit lines they could have classes that people from the region and high speed rail around the state can access and from the airport so that might be something that is interesting to pursue as sort of classroom spaces in the terminal. >> thank you directors. thank you karen. well, we appreciate your input and we will implement it all. thank you very much. >> because it's the last meeting of the year i wanted to end by thanking our staff for all of their hard work throughout the year. we accomplished a lot and i want to thank everyone and thank our board and our chair and vice

chair for all of your support this year. it's a great year and have the steel rising above ground and many more exciting things to come so happy holidays and that concludes my report. >> thank you director and i will concur with those comments as well. i think that i get an opportunity to work with a lot of agencies and the transbay joint powers authority agency is just one of the tightest organizations that i certainly get to work with and nothing ever seems to flip from the staff and it's incredible how such a small staff is on top of so many different details for really major project for the city and happy holidays and thank you for all of your work. at this time we will move on to the citizens advisory committee update and i think our chair, chair olson. >> chairwoman kim, directors, executive director

ayerdi-kaplan. thank you so much. it was a most exciting meeting, but what i am really thrilled by was to hear your discussion in terms of the retail opportunities here because this mirrored exactly what our discussion was particularly with the local emphasis, and it was very well received of course by the authority as well, so i was grateful with that. it was a special meeting for us at the end of the year because the executive director joined us and especially for presenting this wonderful presentation that fred and karen just presented to you. we also heard from brian about the platform standardization that is going on. we were pleased with that kind of process. we are pleased with the progress for the joint community facilities program as

that's coming forward. in the construction updates as steve mentioned he's taking to heart a couple of the recommendations by the committee to add in percentages. you saw some of those already and also to provide when we have straight numbers of pylons or whatever and we're alerted to what is the projected number for that period, so we're very pleased with that. as i say the supervisors' constituents were particularly important in this meeting and they emphasized the significance of the selection of the master lessor and the terms by which that would be chosen and they very much want a part,

not just them but want the neighbors to be involved very much in that, so we were happy with everything. i would like to leave you with one thing they presented at the tremendous opportunity that is afforded to you that is about the size of the project we're working on. as you know 2015 is the centennial of the city's second of three world's fair. i am an official partner with the city on this. i think that this provides a tremendous opportunity for us to present our project which in scope was rather similar to what the city produced in rather short time out in the marina, but this is a way to build that commitment from the citizens to see and appreciate all the work that you and the staff and all of the crew have been accomplishing in

this brief time, and i think it presents a involve opportunity for us to keep the citizenry alert to all the opportunities before us, and i offered to work with the tjpa on that. with that that concludes my report if you have any questions. >> any questions from the board? >> thank you. >> thank you. for all of your feedback and great to see vice . >> >> chair at the meeting as well to comment. thank you. >> you have one member of the public that would like to address you. >> and if there are there other members of the comment to speak at general public comment please come up. >> good morning directors. you're absolutely on the right track. you really need to commend staff for what they're

doing here. i understand your nervousness and the way to address the issues. we're going to have the rfq so companies will be qualified. at some point the people will be coming up come up with a rfp and have multiple proposals and that's the time for the companies to come back to the board or some venue and present the vision and what they want to do and that's the point i want to say. yes you're the people we want to do the business with. to mr. harper's point i agree with what you said about transit and think about phase two and who is coming out from the basement. it might be 50% or higher of the people going to the shopping mall. that's the way in london, i can assure you. the only i think point i want to make and go to grand central and my advice is book a flight and go

to manhattan and look at the new world trade center. you might find something that you like there. thank you. >> thank you. is there any other public comment at this time? seeing none public comment is now closed. i would like to move on the regular calendar at this point, but i have to apologize because i have to leave briefly for a mayor's press conference at 11:00 a.m. so if there is no objection from the board i would like to go to the action items first which i think will be fairly short before we move into item 8 which is the presentation and then our last informational item on the audited financial statements. is that okay if we move straight to the action items? so can we please go to item 9. >> yes item 9 is authorizing the executive director to

execute the city and county of san francisco community facilities district for the district. >> good morning directors. i know you're familiar with the plan and as a refresher and for those watching the plan was enacted by the city in august 2012 and it allowed certain parcels in the area immediately surrounding the transit center to up zone, meaning to allow developers to build taller buildings. they're worth a lot more money so it's a significant benefit for those developers. you can see that illustrated when you look at sales force tower. that was zoned for 550 feet. now as a result of the tower it's going to be 1070 feet and twice as tall. >> >> and the developers had to participate in a mello roos community facilities district

and the idea they're helping to support the infrastructure to support all of the additional people that the taller buildings are bringing into a dense urban area so this is very relevant to the trans bay program because most of the revenues are designated to trances bay so in order to move forward with receiving those funds the mello roos act requires that if an entity other than the entity levying the tax, which in this case is the city, is actually receiving the revenue there needs a joint facilities agreement and the agreement specifies how the funds will be spent and it's laid out in the implementation document that accompanied the transit center plan and allows us to spend the funds on the d tx and the rail components and the roof top park

so the resolution before you today would approve that agreement. the city already approved the agreement through the board of supervisors when the resolution of intention to form the community facilities district was approved by the board on the 15th so we need to move forward on our end before the board of supervisors considers the ordinance to levy the special tax for the cfd. i wanted to note and you see on the slide here the city's original schedule had the board of supervisors considering that ordinance on january 6. just yesterday that date was changed to january 13 because the board isn't going to hold a meeting on the january 6 so staff recommends that we recommend the resolution that refers to that hearing date on january 6 so it reads january 13 and with they would be happy to answer any questions that you have. >> i don't see any questions but i will make a motion to

make that amendment as so stated and i think we can do that without objection. [gavel] so at this time we will take public comment on this item. >> no members of the public to address you on this item. >> seeing no public we have a motion and approval. roll call please. >> motion to approve to correct the date and the whereas cleaz to december 13. director nuru. >> yes. >> director reiskin. >> aye. >> director harper. >> aye. >> chair kim. >> aye. >> that is four aye's and that item is approved. >> thank you. can we please call item 10. >> item 10 is approving amendment to the contract with webcor/obayashi to award a contract to shimmick with the lowest bidder in the amount of $5,875,000 and the bollards and barriers and increasing the direct costs by the same amount