test. >> good afternoon, everyone the mocking i'd like to welcome you to accident regularly scheduled meeting of land use commission

i'm supervisor cowen and to my right is vice chair supervisor mike wasserman and supervisor wiener will be joining us shortly the lovely and talented any andrea ashbury i'm to recognize jonathan and charles kremenak that will be televising that sfgovtv madam clerk do you have any electronic devices. completed speaker cards and documents to be included should be submitted to the clerk. items acted upon today will appear on the april 7th 2015 board of supervisors agenda unless otherwise stated. >> excellent call item one. >> number one a hearing the implementation plan for the pregnant impact fee. >> colleagues i'm the sponsor of that item this is a hearing i requested largely because every

year the planning department has a report on the interagency that is a collection of city agencies it fund and implement the designated infrastructure improvement within the neighborhoods and the planned areas that is critical like time we're now the ones we're in now we're experiencing a second amount of housing construction and growth i have really for years said the city has not lived up to hitsz it's end of bargain it has bargained sore in my note are out of order we've set up a system where we know there would be a funding gap in the city to fill from my prospective in dealing with the be eastern neighborhoods plan we're over 6 years in and we're just starting to have a grasp with the financial hold i know

that supervisor kim you've got smart questions around the eastern neighborhood plan our city needs to continue to grow rep a great opportunity for the growth, however, we cannot expect neighborhoods not to accept the streetscapes improvements and others things liveable and can't continue to borough our heads in the stand sand for the markets so the city plan can catch up and the san franciscans are smarter we've not been doing everything we can to get the infrastructure built in the neighborhoods so i have this hearing around the infrastructure development is essential to build nor housing as well affordable housing in the city our discussion on this

item will to the next item on the calendar i want to bring up the planning department staff who are here to go over their report addressing those issues welcome. >> good afternoon, supervisors kirgs 10 if the planning staff staff here for the enter agency implementation committee what call it i peck reports the impact fee report when the controllers puts out what are we doing it the impact fee and this is an accounting of the fund collected this is part of our packet today. >> thank you. >> so as supervisor cohen's remark we've had the report since 2008 this is one of the fingers we have a lot of revenue

and progress i'm excited about that again, the report comes out felt planning staff implementation a group of staff that are here adam and ms. snyder we also staff the cac for eastern neighborhoods in market octavia and cooperate a lot of the infrastructure projects as a reminder the i p work as the map shows the areas that are covered by the areas we don't work in the areas that have redevelopment agencies but those plan areas have been rezoned important new growth and roof of those plans also include impact fees to cover the new infrastructure agency was established and this

is a reminder of the tavengd but generally what we're 0 doing as a group bringing all the city agencies the mta and rec and park planning heads this forest to come up with a 5 year capital plan based on the revenue for the areas and the goals of the plan so this is an annual process every year the update our understanding of the projections we meet with the agencies to develop a new recommendation i present the report not planning commission to ourselves and the planning committee and actually decisions are made through the budget allocation of impact fee revenue so just to start this is a report but we're anticipating $117 million in impact fee across the areas in the next 5 years the eastern neighborhoods

it is largest enclose graphically and experiences the most impact fee revenue you'll floss that are a bump in fiscal year 2015-2016 all the revenues are based on the projects in the pipeline and expedite the impact fee that's why there's the big gap in the revenue. >> what i wanted to do was highlight for each plan areas some of the progress the report you have before you is the decisions and prioritization choices we've made to roanoke city is the first plan area that was adopted in 2005 includes open space and streetscape improvement plan and redevelopment plan rincon hill

we've recently updated the cost estimates for the entire streetscape plan and scheduled to have a community meeting in the coming spring may to make decisions about the detailed streetscape plan different from the other area plans roanoke city as a straight e streetscape for each sectors and they call for costs but the details are north yet to be implemented and roanoke city the park will be funded this year and funded prior to construction the impact fee revenue has the developments we have the revenue to building the park we're looking forward to that and market octavia is is a plan that includes 4 districts that includes sort of the intersection of market and

octavia made room for 6 thousand new you housing units and the transportation prospective a lot of progress has been made the picture is the finishes of the market octavia improvements 3 this is an example with the vertical develops and builds the improvements and it is working well in the intersection that of those a a plan that was called for by the plan area a small amount of impact fee to match the hates street improvements and the bicycle lane those are examples to use the impact fee to move the infrastructure projects along also you know a lot of the ideas that you are called for in the plan area and supervisor cohen alluded to the impact fee didn't cover all the needs had are

examples of project are funded from the escape park right by our office i like that the best watching the kids this is the example of the other kinds of revenue to make it possible eastern neighborhoods again, it was the bigger plan it has the infrastructure nodes converting neighborhoods to residential the 16th street i'm sorry as a result of that when the plan was adapted we have the mou or the eastern neighborhoods mou that prior i's 10 infrastructure improvements to make them small rather than large the plan prior ssi i till earth and heaven ring. those at streetscape improvement the rapid transit that will link the mission to the central point

is one of the major we're death $14.6 million to that project and the task force has identified the revenue to match that to complete the project in the eastern neighborhoods our first childcare facilitated with the impact fees was completed through an in kind agreement on third and 23rd i believe at the potrero sorry the potrero kids facility and it is a beautiful facility a nonprofit in market octavia will be releasing an rfp for developers or childcare facility provider to assess the money so the there to build a childcare facilities and lastly the mou calls for a new park in the sub plan areas and we have

if he funded and expect construction on the 17th and fulsome park in the mission district this the $2.5 million a state grant and for the triangle in the mission bay area and finally the rec and park has been working with the cac to build a strategy for the existing improvements for the parks visitacion valley also is part of the area and not a lot of things have happened there but the shackling project that of those developed in 2014 has changed the dynamic that will generate $6 million in impact revenue and the department is working to help to prioritize the improvements a lot of them were defined but a call program

for the block site so we're working with the community on the transit plan is really different than the others we didn't include it it operates so devil basically, the update is the melrose has been sdashd in the past year to help fund the infrastructure project management in the plan mr. b will be moved to comprehensively to help move this project forward and cooperate with the prioritization so just before we close up i usually end my presentation an what things have been done and the capital plan committees engagement and choice to ask the agencies to come up with a 5 and 10 year plan in the his/her and the goal to understand where

does this city need to participate to match austin all the impact fees the first thing we looked at the plan area and what do we need to support the new growth we're calling that a constrained capital plan a 20-year vision what we will accomplish and put a dollar like no rincon hill like the plans call for overcame we went through an experience matching the projections to summit the impact revenue to have an understanding of the gap and this information will help us to solve the problem one of my colleagues made this graphic that summarizes the market octavia and eastern neighborhoods what that experience reminded in for

impact fees across the projects over the next 10 years it's $141 million of that mta rec and park and dph noah funds are european fund in the order of $200 million plus leaving the gap and noah says a lot of that is 5 years and out we don't have a funding strategy in mind but the other funding that the agencies really understand in the first 5 years maybe become available in the next 5 years with that, staff is available for questions. >> supervisor scott wiener do you have a question, please. >> thank you and thank you for the update my question is more is not about in the plan areas but really just i think not really a

question but stating facts about our citywide impact fees and particularly the transit impact development fee or t.i.d. f so just for the benefit of the public the t.i.d. f didn't apply at all to residential development; right? >> yes. that's correct. >> so all the unit going up in different parts of the city are not subject to the requirement of foes the residential requirements are not paying the fees. >> part of that they're paying. >> part of the area plan fee. >> but in terms of that no. >> if you're building a commercial office building you're paying the t.i.d. if but residential not.

>> that's correct. >> and two floors of commercial and 50 floors you're paying on the two floors that's commercial. >> that's correct but in this southern certain plans people go to transportation. >> in terms of of the amount of that the amount is going to transportation it paltz in comparison to the citywide impact foes. >> it depends on the district what the rate it in some areas it is barely comparable and some not. >> for example in market octavia or in eastern neighborhoods we're projecting or excuse me. collected $7 million in district impact fees in the 2014-2015 fiscal year of that will $7 million how many went to transit.

>> i think it is minute. >> in the frontalss we have a significant amount going to the 16th trojan project so we've put an amount of money to the engineering project and dedicated i don't have that number in front of me but 40 percent of the revenues that go to the future. >> future. >> i mean the 16th street transportation. >> but thought $7 million that was collected last fiscal year how much was dedicate to transit? >> what we do with the impact fee we round up every 5 years the eastern neighborhood have thirty or 40 percent goes to transit but the point you're trying to make the citywide experience of contributing to the transportation fund is

really only on a residential basis in eastern neighborhoods and market octavia in eastern naktd neighborhood that is about 40 percent and market octavia is 20 or thirty percent. >> and if when you're paying if you have a project if the eastern neighborhoods and market octavia and paying the impact fees for the sgroenz 0 e zones the market octavia does that were replace or in addition to the citywide fees for the childcare and, etc. >> it is well, in addition to the citywide fees that's correct they're all paying a higher rate. >> in addition to and so i'm i understand that there are those zone impact fees that some of which go to transit but it is not a replacement and in the end if transit impact fees apply to

residential that will dwarf the market octavia or eastern neighborhoods zones from those produce for transit would you ago. >> i'll have to look at the numbers when you in terms of good i didn't they show of areas may the fees it is a quarter of the city. >> if you look at 9 development going on in the city right now do you get a sense of what percentage of that is residential versus non-remain. >> that's a great yes, we have a sense of that project basis but not per square feet so residential is - >> i'll bell e bet it's overwhelmingly residential. >> that's correct. >> maybe the second-story but specifically. >> do you only u downtown for sure. >> my point we're leaving an

enormous amount of money on the table the 2014-2015 all the impact fees went up the last fiscal year not surprising so we've collected 12 and a half million dollars for the impact fee embarrass that to $40 million for affordable housing and we're collecting $40 million for affordable housing one hundred thousand percent to support that we need more it shows how it is deeply prioritized funding is in the city and frankly it's ridiculous and unsupportable that the t d i f didn't apply to the residential this is not our decision but our decision and the mayors decision i look forward to eliminating that.

>> thank you very much supervisor kim. >> thank you supervisor cowen and thank you so much for the presentation and it is also great to see the successes we've accomplished with the using the fees to help fund many of the open space transportation projects as well as what is in the what else is in the plan i had a couple of questions starting actually with the rincon hill i know this is the first program to start looking at impact fees structure and i'd like to talk about this is a neighborhood that in some ways it feels like we're building in the ground up not a lot of infrastructure and we're putting a lot of primarily residential building in that neighborhood and, of course, to the north of that a mixed use commercial residential what the transit plan now we're in place

and development is happening and tremendous need of construction in the area yet a gap exists between the impact fees and the non impact sources for the capital improvement the economy has exploded and high-end development is occurring in the area we're finding the medium home prices for the condos are way above one million dollars for units i'm curious we're not charging for recreation and open space for example, we have a need for open space in the area and it is significantly rincon hill and market octavia are lower for example the thought processed behind. >> in the original about the impact fees with the plan we

worked out the value of the land at the time and the city was occurring through the development we want do to set the impact fees at this point that the housing and office space we're falling for will move forward and we'll be able to have a funding of a reasonable amount of infrastructure rincon hill is different when we adopted the plan we had a release to fund one hundred percent of the impact revenue it's not a clear understanding of the eliminating the infrastructure and the value that was considered the type of construction when you alluded to support the generous fees i'm sure you're aware of there are two specific areas the rincon hill fee it what we're talking about today and the selma

stabilization fee we're impairing to the eastern neighborhoods or market octavia so we did an assessment and feasibility analysis to match all those things together so i understand that and i know that we have maximum nexus we don't have necessarily hitting all the fees we want to make sure that the development is feasible but given what we're seeing with sales of the unit in that area we're reconsidering did fee segment we're hearing i know you've heard this we hear so many from the neighborhood their thrift for infrastructure open space transit and, of course our costs of construction is going up as well as with the boon and development we're competing with private developers with the same finite universe of the construction companies now we have a better

sense of what developers are able to bring in per unit are we do you think that is appropriate to reconsider the nexus for a number of reasons the childcare fees are at zero i know this is the first program and you have the stabilization fund with the feasibility will it be appoint to relooking look at the fees given the dollars coming in we have the decisions within the community process so this citywide look at the nexus this is the next item or how we spend the money that is a thing the department took on but we do as much as we can you mentioned something about rising costs and couple years ago we had a index so the revenues when it's collected it we're doing the

best to capture the interests across the city to build the infrastructure the impact fees are not responsive to the ups and downs of the real estate marketed so i i think i understand. >> we certainly heard from folks we want to relook at that and taking a look at we have a sense of what residential units are selling for but certain residential units are not going to command the same level of money but we're seeing high wholesales many the rincon hill area and the residents want to see the developers put more of that back into the infrastructures for the residents moving into the neighborhood i had another question about i was noticing this is just in the

bio annual report through the controller's office i wonder can you address that question it is on page 3 about the development impact fee summary with market octavia eastern neighborhoods and the c-3 district do you know if there's been an increase in projects between fiscal year 2012 and 13 and 2013-2014 for example, market octavia 13 in one year and next the impact fees tripled that year why is that is the developers building smaller projects in fiscal year 2012, 2013. >> good afternoon drew from the controller's office to some stent we can look at the

specification as needed but i've attributed that to the value of the projects in those years as well as the subsequenting of the deferral fee a program to have a better impact collection. >> so it's not the size of the project only the increase in value that is truly amazing and i just point that out for the members of the public for example, in market octavia 13 unit were built in fiscal year 2012 and brought in $207 million and in 13 one less and brought in $7.8 million attributed to the value of those projects going up over the one fiscal year primarily. >> i would say primarily but to get it do specification we'll have to look at it better i'll

be happy to do that. >> and back to the planning department what's the do we look at the index because it is far below the rising costs of construction. >> there's a process explained in the admin code how we establish that index this is established every year with the blend of construction and the unit interest rate so to perhaps we'll be holding the money in a municipal account and the cost of construction and the capital planning committee is responsible for derrick that interest rate annually that's how it is done. >> i think your office is certainly interested and in working an updating the foes we appreciate the nexus analysis i want to appreciate the balboa between both what we could charge and the nexus al