what - why you zoning i think it was 85 feet maybe a housing district during that time we removed that portion second half of the conversation is the portion of western selma that was part of the western selma plan and rezoned to sally district it is the same thing as s r i no jobs and bigger investments like the flower mart and the tennis club and the obama old oracle so during the werment your rezoning it we recognize this portion will be rezoned as part of central selma

it is the main thrust maybe a couple of other blocks that are getting anlt of that maybe 65 to 85 but other little changes predominantly the areas are not industrial like 1989. >> the rational for the geography 5 m. >> 5 m was removed from eastern neighborhoods this process has been going on longer than than this process i'm not engaging that process but a single development we can negotiate all kinds of beneficiaries benefits the disadvantageous and advantageous you have a broad conversation it was out even before central selma began. >> if i can add the project is the 4 acres on its own a whole

development agreement that is discussed many of the provisions are similar to what we're presenting in the central selma but as steve pointed out it started before this process. >> a couple of more questions so those are really great presentations that was incredibly informative maybe you could add page numbers the target rate return on one of the pages what percentage did you assign to the profit margin. >> i believe that was a smaller projects we were looking for 90 percent and yeah for the bigger riskier 23 or 25 percent. >> the other question the needs for flexibility to make sure that the capture we don't over shoot with the targets

percentage from 19 to 23 since 25 there's more for the developer that goes to their bottom line so maybe index the rate so we don't leave much on the table. >> could you explain by the index. >> if everything goes well we are extracting six the best of both worlds they'll get 33 percent the value so any way to split the difference or the best of both worlds the more we grant the more we get back. >> probably possible we'll look at my understanding is that concept your creating realize for thousand parcels same thing and every one has their economic and don't share with the performer so our goal to take

those 4 prototypes and extrapolate that they look different than each other no way to index it certainly the conversation what are the current economic conditions we those economic conditions change certainly the eastern neighborhoods we'll push the envelope that's the height of the market and then nothing happens for a number of years and now the rates in each neighborhood we've blown past them this is such a town that motives and we're certain we'll get $2 million and they'll get value. >> if i might add commissioner to add to steve's point the changes over time one of the factors we have to over lay the nexus study for the limits we'll

put forward on the fee that's not overlayed you only saw the economic feasibility. >> so another layer. >> i don't know if it is, it could justify those numbers but we need to over lay that. >> we might be able to get the percentage higher so from the fees coffer 60 percent maybe we'll get to. >> that's on or after an arrest warrant are a they've got the expenses just nobody is getting into it if it they're only making one dollar we didn't include all the costs but that's my other thing. >> other question another slides open constrained alternatives 10 different things who sets the policy on the mix community? commission?

>> we're on the board and the mayor the goal this was what are the you know almost like car toosh this is our work ; right? this is the kind of point of the conversation we haven't been able to do that up to now our work what is possible? what can we get from the plan we can get more been by the there needs to be trade offs and other resources we call. >> last two comments first one the criticism in eastern neighborhoods no police mechanisms or any rate so whatever we do i'd like to see a mechanism for reiteration the commissioner said that 10 or 20 hearings guarantee ago in the

werment there is a one-time opportunity for that the steward of that. >> commissioner hillis. >> a couple of follow-up questions so along the same lines we did this analysis in market octavia and eastern neighborhoods and my sense of that is it is highly you changed assumption like the 10 percent in sales prices of property it starts to vary and the public benefits by huge margins like double it or somewhere is that your sense if we looked at the eastern neighborhoods and the market octavia do we over shoot our benefits. >> at the time we maxed out

the conditions we could only say those are the current conditions we can't predict economies in san francisco your we'll hear and take on our prototypes if you remember les i can't see slides here's the amount of revenue and the costs you're trying to talk about the difference it is a small percentage felt overall money that is partnering in f this transaction it is incentive and at some point you have to pick a spot there is definitely no exact answer they're definitely going to look at this. >> my advice be aggressive i think we under shot it in the eastern neighborhoods nobody saying the prongs are on the

feasibility never but you did when we rezoned it we were putting fees on those projects that were making feasible whether rincon hill or other areas but recapturing the fee but you know points made recapture what we didn't capture and guj everyone but really protons of affordability and transportation and not now, when so think we can lear lien from that we've heard the stories we see all the projects going up in rincon hill that were kind of zoned and planned for they would not because the fees were so

high so upcoming i think those are good analysis we need to do good analysis but make sure we push the envelope on that. >> on the fee called tdr. >> downtown has the rights and south of market has dense building they're not that at all but one the benefits to expand outside of downtown into those district and allow the buildings historic buildings we've identified trying to landmark them and sell in their 2rd the translation on what people are selling tdr for it is $30 a

square foot we create, however, a million square feet of tdr and $30 million the revenue will be for those buildings a private transaction; right? so no way to know what that amount is the historic knowledge this is the public benefit for the historic building. >> some ways that doesn't help 38 e they've sold the tdr and for new ones that haven't that 9 opportunity to have the conversations around the solution. >> right things like preservation and funding for premise i meant vehicle would be kind of a melrose community. >> we've just started a contract with melrose consultant that tells us what is possible under melrose and not we looked at the financial feasibility but how you can spend the money is

an legendary animal but it is flexible and you can look at things not subject to nexus for the melrose studies. >> you touched on the process of determining you can determine the value of how to allocate it and what goes to affordable housing and what goes to t f d and park space how are you doing that. >> that's the start of conversation commissioner hillis so we haven't had the ability to have this conversation how much benefits are we planning we've been talking about in terms of

development and this is the bridge pay back $2 billion and a lot of it is exciting in areas but we have an increment of 6 to $800 million this is a the point of the conversation if we throw it in transportation or affordable housing you can't do both we'll have moot meeting and have an open invitation you want us to come to our neighborhood group we'll come there is a simple convenience to get people we're totally open to the metabolism the continuation only to talk and it is. >> i i mean sometimes preservation they kind of get

lost we tend to see about the as opposed that's the ball and we around towards that looking at the preservation sometimes it gets kind of lost in the destruction their tremendously important and on the 5 m project are i know you've said you've not been involved but the benefits consistent with what we're kind of starting to outline i think the general genocide is this is a similar exercise. >> similar okay. thank you very much. >> commissioner johnson. >> thank you very much okay. >> i didn't sit down that time (laughter) fantastic job through the

planning department staff obviously an eir and question i guess are we actually goes to see a nexus study or relying on the study 6 months ago the numbers for transportation and open space complete streets, childcare they're all kind of keyed up to the nexus study the next affordable housing we have this case in santa fe said thank you to the city attorney's office thank you very much and some of the things we're working to can you really ask someone to provide office spaces there's the not only nexus anglo is the community facilities that's ongoing with the controller's office through supervisor kim's office that get the money so i don't think we're

looking at a new nexus study maybe the only one out there for jobs and linkage that is another concept you know people have been saying hey jobs let's increase the jobs this is one we'll - >> deputy city attorney susan lives that is underway. >> i guess i'll say just echoing a lot of the comments i'll have no more thought when we look at an eir and the mixed benefits he understand the boundary analysis but we are looking at that in between the benefits i've actually will look at the lens of the issues we've seen with previous plans and the commissioner mend the eastern neighborhoods plan

i'm sure we can make the argue to capture the value but i see that as an issue of the eastern neighborhoods is large and it is really hard to pinpoint what actual community benefits what they see where they'll be naegs in relation to newdemonstrate and i also see the needs are clear so one thing i'll like to see in the future analysis especially we talked about the needs assessment or the community benefits i'd like to hear less about dollars and more about the community development when we say we're going to reallocate a few 5 or $10 million of potential overall community benefit dollars from

childcare to open space or transportation what did that mean and how will be that deployed many of them are managed i other agencies that are having their own timelines and transportation has they've got to do in new york city fiscal project but it would be nice to see what part of their project is accelerated by getting one more dollar of the community benefit dollar from eastern neighborhood normally we don't see and try to ask trying to ad hoc it i'd like to see the work going into that people are going to fight all day long whether or not we're getting $50 million or hundred million dollars or 35 percent but this is not what matter in the end

but what actual benefits people see and benefit from that's what i want to see thank you great job. >> i totally appreciate that comment i don't want to set up expectation i think we'll answer some of the questions not necessarily all of them but on the transportation side are long term it is going to be hard to say this $50 million will be spent on this street or timeline in the eastern neighborhoods we'll identify four or five major priority as you recall at the end of the process there were a handful the focus is on transportation and open space at least in the first phase while try to do that we'll not be able to allocate every there's in the

short time. >> my colleague made it sound like what kind of master plans bementd you've made a plan you know where all the parts are and the childcare i understand there are some areas for example, transit where it does have to remain in the budget of dollars it gets down to whatever mta's plan is for this area there are other areas open space, nonprofit space if this is something we can add in as a benefit for central selma childcare facilities and things like that where we can put boundaries around what are rereducing this it reducing a park or childcare facilities we've got to find ways to make it more tangible or

we'll be arguing about percentages and large-scale dollar amounts but not understanding this is what is happening in the eastern neighborhoods tiers the community benefits but the area is so diffuse we see people talking about the community benefits plans in their neighborhood there's not an ability to make it tangible what those dollars will fund and approximately where they'll be. >> commissioner moore. >> i only have one question for the gentleman and that's first, i'd like to express my admiration for what you did that is an unusual tool i'd like to ask you how did you balance value capture if community benefits with continued citywide value capture

as well as value of attention for liveability? >> are you saying like how it balances between the plan area versus spending it elsewhere. >> they're not physically modified for the protocol i'm interested in seeing a nuance response to how value you capture in this area guarantees value capture for other parts of city as well as value of attention it's a mutual responsibility. >> thank you. we'll look at that. >> okay. i'll add a couple of thoughts and questions so i am glad we were reminded the selma sud and ask that maybe we take into account closely at the sud

the way we treat nc ds i don't know but really look at fine-grain uses of the sud and maybe concretely have more value to the central selma on this question of pdr and in time space as a community benefit that we want to see i think i'd like to see more thinking how we already have pdr space and nonprofit space there instead of creating a fund to build more i don't know as rent or something like that how do we preserve it something like that a one by one square footage replacement or the right to return for nonprofits i'm not sure how deeply we want to get into it but you're saying it is easy in some instances to create

a right to return rather than building. >> a new center you'll charge rent i would second or third the desire ami i've heard from the commission to be aggressive and be interested in some way because we're in a hot market every project in the eastern neighborhoods is coming a lot of public comment that the project or the plan no longer fits the need or the projects the plan is not allowing us to get out of the prongs making sure the planning commission in 20 years didn't face the same thing the question i have is around displacement i wanted to ask every lisa or someone whether or not the methodology can or does consider displacement and thinking about value

i don't know if that's the question that can be answered if you lose a pdr space bus you dominic o knock down a building can you consider if within the methodology? >> libby or lisa that's okay. so the will performer sfrooik from an economic sense didn't capture the pdr land and certainly the pdr land has a value the baseline for example the buildings in the valley were a one story pdr building the revenue was taken out of the overall plan that's the land has value of the one story they could use that for planning for income that's accounted for we recognize the pdr jobs more

indifferent than the rent income that's why we included it as a benefit that's why we put in requiring a right arm like e like the flower mart; right? this is not a new benefit any project like the sally district you have it you have to replace it. >> if i hear you right commissioner you're asking whether there's a way to quantify the loss? >> existing uses. >> that's the bottom line how do - i think conceptually how to lose the things that are community benefits because of the rising benefits i assume you have to knock things down to build how do concept listed it

we integrate or bring back. >> certainly part of the range of pdr options we're keeping some of the areas zoned sally we're requiring a one more one replacement not replacement but maintaining and replacing current s l index district to incentivize maintaining a one story pdr building to accommodate growth we get the same amount of pdr but a one story spits out jobs and linkage and and trades of open space and open to the public and preserves the market there's a way to get that into the plan. >> i would ask maybe if there recent a possibility for a

smaller group of commissioners to have conversations with staff that will be helpful that was a tough forum so if no more than 3 commissioners at that time that's great commissioner antonini and yeah. count me in i want to talk with staff and commissioners i think you're going about it the right way using percentages you've got how much of a return the investors will need because fund managers will take flyers on invested that is speculative in a how did market we've seen in san francisco million dollars have been thrown on projects that may not go forward in the mission district because tlsh there's a lot of pushing back but i extrapolate that into dollars it is the right way but the percentage makes sense

because as things get hotter costs increases from the land is not acquired labor costs are high and material costs and, of course we've seen process is much more difficult in bad times the process is automatic none has is jobs but they start working and talking about other things that's part and the percentage works as the city get better things get better from the city goes down rincon hill sat idle for five or six years with the exception of rincon hill was the only thing that got built so things can go down your pursuing it the right way and looking at things raeltd and taking into account what you need to do to

attract the investment and if there are other things in return for that the higher amounts is good way. >> commissioner richards. >> looking at the calendar of this plan viruses some of the other things going on like the implementation monitor and roster eastern neighborhoods i'd like to see that come out first we can verify let's make sure that is in here f this didn't work maybe this shouldn't be in here other question if affordable housing nexus study how did that play into this this is coming in a year. >> my council might have a better answer. >> is that for the entire city. >> yeah. we're undergoing the job housing linkage for the nexus study aid also an update to the residential