of a larger conservation grant to water agencies under the water management program in particular those funds are going to agitate existing puc funding for portable irrigation landscape areas particularly to use to help fund the improvements of the parks it is about the 7th project we've done this way in terms of the cost-share with the vice president with the rec and park department to improve the efficiency and safe water i'm happy to answer any questions you may have. >> colleagues any questions okay. seeing none mr. rose your report on item 4. >> yes. own page 19 of our report we report that the total alamo budget is $2.03 plus on

table 19 of our report and table two on the same package is one million dollar for the rec and park department and $1 million plus from the puc for this project we recommend that you approve the proposed resolution. >> thank you, mr. rose colleagues any questions any public comment on item 4 seeing none, public comment is closed ohoh - come on up absolutely. >> good morning honorable supervisors and friends i'm mary i live in the tenderloin thank you all for you for your financing and tenderloin of the pit stop pilot program. >> so ma'am, that's a different item we're not there yet just

item 4 anyone wish to comment only item 4 the conservation grant okay public comment is closed. colleagues a motion to move this forward we'll take that without objection. >> all right. we don't have the hearing sponsor here yet madam clerk item 7. >> item 7 the resolution he retroactively accepting the priority conservation area grant fund to support of the parks for the pedestrian of october 2015 to 2016. >> thank you rec and park department to speak on this issue come on up. >> good morning, supervisors.

i'm the project director this is the only area that borders the bay the area features the marches and the upland habitats that provide for a variety of wildlife and trails that link to the bay area in august 2014 the city acquired property adjacent to the open space and they've been included in the bayview hunters point and the india shoreline plan and the port of san francisco 13 mile blue green plan this hopes to develop a new service park providing residents

for open space and recreational opportunities including closing the gap connecting the two shoreline parks and simultaneously many acres are being developed to the south by local real estate developers there's a unique and spectacular opportunity to develop the islander baseline into a legacy project in may 2014 rec and park planning division was awarded the conservation area grant in the amount of $500,000 for the planning park project the priority conservation program is a program by the mta the goal of the program to enhance the

social value of the rural areas across the bayview and it improves the san francisco trails more broadly the project is consistent with the conservation strategic plan goals as well as the projects in the san francisco bay area bay plan working with the trust with public land rec and park will use the funds to have a open space for islander and shoreline park it will fund including the public outreach and the preparation of analysis and environmental studies and the costs with the strategies with the possible prelims of park improvements as recently submitted an operation the improvements will be at a minimum construction of a full park and construction of a green

trail water trail through 9 hundred across the dpw right of ways and connecting the open space the construction of a continuance bike lane to provide a route that's safe for bicyclists of all ages and the construction of bicycle to the shoreline and the to be repurposed with services for recreational cafe uses in addition the project will study the feasibility of the quality wetlands beyond the problematic areas a range of possible improvements maybe proposed like a new boat launch for recreational activities and new piers and facilities for consolidations and educational signage and art installation as part of a soon to be launched

parks plan an extensive plan for the preferred use of this space based on the decision the design competition will take place and environmental assessments are complete an elevation terrorist title areas this winter we're working with the toxic substance control and develop a clean plan and leverage the funds for environmental protection agency for brown grants it is 2ker78d to be cartly exempt from the quality act it is $600,000 plus the grant requires a match through open space fund in the autumn memorandum a of $600,000 plus and rec and park for more money the grant agreement runs

from a prospective dates there november 30th, 2016, however, it stipulates it will be completed by august 2016 it is supported by itself islander base alliance and the trust four public land and parks and hunters point family i welcome questions you have and look forward to developing this open space into an extraordinary shore like e line parks in terms of public assess thank you thanks very much clooegz colleagues any questions. >> supervisor mar. >> i want to ask how this connects u.s. bancorp up with the park there's a trail and how far is that from home sharers head park to 9 north. >> between the parks is the pg&e landing lands that's 13

acres as part of the vilg assess we'll include that park because we include them in this network of open spaces there's already developed we want them to ask them to redevelop their parks but this is part of the process. >> this is really great for the southeast part of the city and what an exciting project as well and the industrial areas but the areas i think that the m t c and the government it is good they've included the priority conservation areas i think that is an example of how we used a city create the industrial space thank you for your work. >> any questions. >> is there a map anywhere handy that will be good.

>> supervisor we'll get a map it's an amazing space from the north end to the shipyard development and its a big portion we've get you a map and briefing on the project. >> okay thanks. >> okay. we're done with the budget analyst report public comment seeing none, public comment is closed. colleagues, i have a motion to approve this item we'll take that without objection. >> madam clerk call item 8 please. item 8 a resolution 30 years the acquisition of the real property at 495 adam street for $15.5 million and adapting various understanding and we have john updike to report. >> again and again good morning

john updyke director of real estate the board approved a lease for 1995 the subject before you now we selected this site to relocation the city's crime lab and traffic investigations from hunters point and all of justice respectfully the crime lab being in the path, of course, of redevelopment and the traffic investigations located seismicly where we have a exit plan reason of purchase option was required to provide certainty to the site control that enables the city to process the sequa application for the approval of the 2014 geobond measure that geobond was overwhelming

approved by the 0 public and the conclusion of a purchase price at $16 million that is subject to completion of due diligence so that due diligence includes the sequa completion and all the planning and design that entails as well as our environmental review and value confirmation the test results no concerns about the soil and the appraisal is an elevation under the purchase price we tendered the exercise notice to begin the process of exercising the rights we've retained to ownership awhile sharing with them the appraised value which suggests it is fair to say too high the negotiations ensued and now the agreement at a purchase price of

$15 million plus ownership was under no requirement to revise the purchase price the city recourse on this deal like my buyers recourse on any similar purchase option deal is not to pursue the purchase in a normal real estate market there might be other choices with appropriate zoning to provide the fast track sequa clearance it would have been a viable option here it is not the case in this market and not for this need as the budget analyst report it took option with the appraisals with all due respect an art form not a metric of numbers

we thought there was interesting sales and pending sales being more difficult for the appraiser to include a back market that is indicative of current market conditions would justify the purchase prices of $16 million that's approximately $180 per square feet or looking at the improvements over 44 thousand square feet on site which have value that would be about 3 hundred and 75 sdlrs we're square feet improvements one example not included in the appraisal report to be as relevant as those selected 268 last name alabama sold for $575 per square feet an industrial use of a printing plant the

subject was the industrial use of a printing plant this was compatible other pending sales support other numbers with that said as the director of the property i'm comfortable with the purchase price that's a fair and reasonable revolution between the buyers and sellers of this property it's the best interest of the city for the project as noted in the resolution before you we do have the full sequa clearance and general plan conformity for this acquisition and the budget analyst has four options for i i'm here to recommend option 4 this the john gibner, deputy city attorney are happy to walk through the logical challenges in options one through 3 if you want that

discussion. >> thank you, mr. updike colleagues any questions at this point why not move to the budget analyst report. >> mr. chairman the purchase price of $15 million plus is part of the total of $165 million budget for the 1990 evans in package 4525 of our report the project will be fund by the earthquake you safety proceeds on page 268 of our report the proposed perspire price is for one million dollars $15,000 plus 2 percent more than the cb r e purchase prices of

$11 million plus we also note on page 26 the negotiated purchase price of $179000 per square feet as shown on table 5 the average price per square feet is comparable which translated into 3 hundred plus for the 89 thousand square feet and the 1995 evans street if the lowest price at 6000 third street at one hundred plus per square feet the average price is one hundred and 64 thousand dollars at an estimated one million dollars plus for the 89 thousand plus at

1995 evans street the proposed million dollars purchase price would then be 8 hundred thousand plus or 5.8 percent more than the amount that is including the lowest price comparable property as mr. updyke stated on page 28 of the report as explained on pages 28 and 29 this board of supervisors may wish to consider four options one to continue the proposed resolution and experience eminent domain and second for the negotiations and third is to do not approve the resolution and fourth as mr. updyke suggests to approve it on page 29 we request the director of real estate to add the

inquires and other due diligence prior to specific the purchase price it is a policy decision for the board of supervisors. >> thank you, mr. rose any questions for the budget analyst. >> maybe we can more clarity the delta between the option price and the agreed upon price for the negotiations is a big difference can you walk us to this and talk about that. >> sure chair farrell everything traction has a story during the negotiation for the purchase option price at the present time, the torn passed away during negotiations i was

required to complete the new york city with the widow the purchase price was real something that was near and dear to my heart to mr. spencer's heart you can understand from the family issue that price was that important also to mrs. spencer once we got the price in although the other data showed it could be appropriate in this case, the ownership agreed to renegotiate we reopened that question the number before you ask a reflection my desire was to go lower so our leverage is somewhat limited again due to

market forces there were not other market opportunities in the marketplace logically give consideration to in the budget analyst report we had own one million dollars in the investigation of this site and the sequa approval that cites specific the value that is lost if we move to another site compound that with potential time issues if we have to pursue another site and get the sequa proposals and now the cost running 5 to 10 percent given the project cost of 0 over one hundred million dollars that's a hefty amount when i weigh all those factors and the market dynamics i think we'll these not

far from the property that suggests this is a fair prissy hope that helps give a little bit of context. >> thank you, mr. updyke. >> supervisor mar. >> thank you, mr. updyke and our appraisal and your budget analyst report your responses to the cb r report are helpful but a wide gap of 4. $5 million from the cb r e appraisal from $14 million plus and option 2 to go back and see if you could get closer to what the appraisal was but look at the comparable the different comparable sales you think are relevant to the and i prevail that would be my hope i

have a dw question about eminent domain since it's brought up how is fair market value how would you determine that i don't know the process. >> i'm happy to give some context on that i'm sure john gibner, deputy city attorney will share information as well in the eminent domain process it involves let me speak to logistics why that's not one of our prime options for a bond project that requires a new parcel in order to move forward with the eminent domains action and bring before this body a notice of intent resolution the intentions to require the eminent domain sequa must be completed in order to move

forward with a geobond project sequa has to be completed before that bond comes before you in placing the bond on the ballot we have to insure rights to the anticipated property so you see the logical compendium not having sequa or the eminent domain process which is legitimate i didn't so the court process that as availed to a public agency under the threat of eminent domain is the fair market value that is paid for by the city up to a certain amount and the negotiations can continue if they fail to result in a reasonable supplement by either party the court can rule

through a jury action so that's the process it's long it's complicated and it's just not a very good fit for a general obligation bond measure that has a few things in the wrong sequence for us. >> i understand the delays in the eminent domain process i see that thousands us off in the faurment it be. >> john gibner deputy city attorney to provide more detail after the city has it's appraisal and the owner does his appraisal the city has to make an offer as the first, i think formal eminent domain process if

that form offer does not result in a settlement it would be our awe operated value not there are the board of supervisors can precede with the eminent domain will have to adapt a resolution of public necessity by a 2/3rd's vote and that resolution will have to find a public use for the property and that it will serve the greatest public good and cause the least harm the city files a lawsuit and ultimately will decide whether this is an appropriate use of eminent domain and after a trial probably before a jury the jury will decide where our offer is reasonable just compensation in the jury decided we've low bald and made an inu inappropriate offer we'll loss the eminent

domain and have to pay the property owners attorney fees and costs a little bit more by way - in this situation it's a hard to predict how a jury will come out it's relating difficult in the last two years the city has negotiated a price point with the property owner i'm sure that will come into play. >> that's very helpful. >> mr. chairman and members of the committee as a followup to supervisor mar's inquirey regarding a renegotiation that is what the budget analyst office is suggesting option number 2 to continue the proposed resolution and to create request fufbt negotiations we understand that

this city has invested money in the purchase to purchase this property we understand that there is according to mr. updyke no other viable location that's understood but we don't understand the huge difference between the appraised value and the proposed purchase price we believe there is room to get some sort of saifrz as and point out if in our report even if you include the one property from the comparables there will be an $800000 savings and mr. updyke said it was a tough negotiation through was a death in the family we don't think that is relevant we think what was relevant the huge differences between the appraised value and the purchase price. >> mr. updyke you want to

comment? >> so mr. rose mentioned the appraisal happened in august of 2014 when was that appraisal done and inform our work as well. >> so, yes as part of the due diligence process i mentioned the city ordered an. >> a prevail tendered in august 2014 so we get a disparity between the purchase price so how do we reconcile that? this took months of negotiations to get to the number before you now i don't respectfully building that we're turning to ownership will make a difference in anything it jeopardizes our option rights we have

technically have expired due to the negotiations both parties realize is a negotiation to extend the negotiation rights 23i9s that's problematic in and of itself this is a lease with a purchase option lease payments are not recoverable through geobonds it's not a bond expensive that's an expense to get us to the privilege to acquiring which is geobond and the acquisition st. is funded throttle bond if we extend the negotiations and do not acquire and lease the property it is costing us $2,500 a day anti of general fund and we've got it went crutch >>