those that can participate in the plan with a preference. it's lease holders living in their homes prior to june 29, 2011, we define as pre-d.d.a. households. persons who moved in after june 29, 2011, post-d.d.a. households and we have a mix in there. and a household a mixture of people that are pre and people that are post. the podium building constructed in 2020 will have 14 b.m.r. unit, below market rate units. and two studio units. 6 one-bedroom unit, five

two-bedrooms, and thr three three-bedroom units. there will be 110 market rate. you can see the breakdown. so all those units whether below will be the same square footage that will be presented here. one of the things that we talk about, many times we use jargon understandable to us and not necessarily to the community at large. we are trying to help the community understand where they fall in the eligibility. so this is a chart, a sample chart, from san francisco about our area median income. and i will show you how we read through it.

if you are one person and your income is $56,300 a year, you are 80% area median income. if you are four-person household and injure -- two-person household and income is $113,650, 120% of area median income. we're trying to engage the community and help assess what their income is and how they fall in that so they can prepare themselves for the opportunity to purchase on the island. there's a path to home ownership for the below-market rate program and we want to cover that -- and present that information to you tonight and

we'll continue to present that to the community. one, you need to be a first-time homebuyer. someone that wants to participate in the programmed, cannot have owned a home in the last three years. they need to income qualify for the below market rate program and that's really the charts that we went through to determine if they are between 80% and 120% of median area income. households will need to save for a downpayment. and that is an assistance under our program. and need to complete the mayor's office home buying program. so the classes and participation and credit counseling and securing loans. to explain that further about the path for the mayor's office of housing home ownership programs, households will need

to attend and complete home ownership classes. they will need to attend and complete credit counseling sessions and mohcd certificate, prequalify for a home loan and enter the lottery for b.m.r. condominiums and treasure island preference. i know it's a lot of information, so we hope to walk people through this in the coming months. there is a series of certificates that people will need to understand. step one, enroll in the b.m.r. homebuyer program. when they complete that, they will get homebuyer education completion. and ultimately, a certificate of completion and that will be good for one year.

so if anybody in the community is interested, if they think they might qualify for that, we strongly encourage them to sign up on sfhdc's website for some of the classes. if they have any questions at all, we're eager to walk through that with them. we are the treasure island advisors, here to engage the community in these programs and happy to meet with folks and answer any questions and encourage the community to give us a call, send us an email, sign up for classes and the goal is to funnel as many people as we can into an opportunity to purchase a home on the island. >> president tsen: wonderful. thank you. karen, you are the person to see for any questions about the home ownership program. >> correct. >> president tsen: thank you. i will open it up to the board for any questions or comments.

>> director richardson: thank you. just some questions and the staff can help. where are we with the relocation program that we have, the status on that, for people that are hearing for pre-d.d.a. household that was mentioned in the presentation? we have an ongoing series of programs to do outreach and get them prepared for the presentation that you have just heard today. so my question is, the status on the last commission meeting. we know we've done a lot of outreach households. my question is, just the status for the record on where we are with that and then we have some other questions.

>> as background, we conducted interviews last spring. we met with better than 85% of the pre-d.d.a. and mixed households and letters have gone out to the majority of the households, some this week, as well as letters that have been prepared for the households that were not interviewed. and i will let karen speak more to those letters that will be going out. >> we were really excited about the turnout on the island of people that will meet with our team. we have a pretty big team. so from those interviews, we met with mary and bob and one of the first steps was to prepare

preliminary notice of eligibility so people understand -- it's one thing to know, but another thing to have in their hand. so we're working to get that out so people have information in hand and can contact us with questions. we've been reaching out to those that didn't respond and encouraging them to get back to us, so we have that engagement as well. many people would like to buy homes. with our team, we've been working with treasure island staff to put together home ownership information programs. so some seminars here on the island. english and spanish, to help people understand what that means. what steps need to be taken.

so we continue to work with that and engage people to help them funnel into that process. >> director richardson: part of my question would be, so we have 14 b.m.r. for 2020 and so does treasure island pre-d.d.a. have first preference? i know that the city has the series of preferences, so our obligation for pre-d.d.a. household. how are you treating that for that available eligible, which is something that we would like to understand and would like to know, because we have the mainland, potential homeowners, but also the primary on gaugss for pre-d.d.a. for treasure island, so we need to know how that's being treated. >> we've been trying to engage

the community with giving them more information and helping people understand, what does it mean? so you want to buy a house. what does that mean? what are the steps? where do we go to next? that's where we're at. it's our goal to sell every single 14 b.m.r. units with our people. and we're really trying hard to make that happen. >> director richardson: thank you. >> director lai: thank you for the presentation and doing this work. i think there are a lot of people unclear about the mechanics. it's a big step to be a first time homeowner. i saw the letter about the prices to be determined. i think it's clarification for the public, but it's my

understanding that there is a set limit on b.m.r. sale prices. are uplessing those because it's two years out and the price maximums are 2018 numbers? is that why it's t.b.d.? >> the general range for below market rate housing is 80% to 112% of a.m.i. each of the 14 individual units will be priced at a specific price point within that range. and that designation has not occurred yet. so individual units may be priced to someone at 90% of a.m.i. or someone at 110% of a.m.i. and the price will be different for those units, depending upon where within that 80% to 112% of

a.m.i. range the price point ends up being set. for each unit, the specific, targeted price is not out. >> director lai: i think that normally it's maximum prices, 70%, 80%, 90%, 100%, 120% a.m.i. levels. in terms of financial planning for the pre-d.d.a. residents or b.m.r.-unit occupants, it would be helpful for them to get a sense of what is the downpayment that they need to save for or hopefully well on their way. and so i completely understand that perhaps we haven't figured out exactly how many units we may have but perhaps providing

those numbers would be a frame of reference and helping them to figure out whatever the increase might be in two years' time and what that amount may look like. >> and i wanted to answer one of your questions about the preference in case it wasn't clear. there is a treasure island preference, in case that wasn't clear. so we're trying to engage everybody in that. >> and you mean that treasure island residents will have the first priority? >> correct. >> president tsen: thank you. >> director dunlop: thank you for the presentation and all the work you've done. are you going to be located on the island? i think you were for a while and then you left and now are you going to be coming back here

full time as we get moving towards the actual purchase potential? >> we will be here as needed. as we move forward and engage the community, continue to try to funnel people through the b.m.r. program, we will be here as needed. it's not necessarily always in an office, but whatever we can do to get people engaged. we have a lot of work to do. >> director dunlop: yes, indeed. it's important to know after the first 14 units are taken, there will be more. it's not the end of the world. it's like somebody doesn't make it in the first round, there will be more affordable housing available. >> yes. we'll be doing this for quite a few years.

>> president tsen: okay. good. any other questions? hearing none. next item. >> clerk: any public comment? >> president tsen: if you have a question or a comment, you can come up. >> good evening. i'm chris. i was curious if you could tell us how many units will be made available for below market level and how many residents there are on the island today. thank you. >> i think the question was how many residents currently qualify for b.m.r. units. is that the question? [inaudible] >> there are 650 households on the island, including 250 one

treasure island residents. 203 mixed or pre-d.d.a. households. and over time, there will be 307 inclusionary units. the vast majority of which will be for sale inclusionary units. there will be some inclusionary for rent units as well. >> president tsen: but i think overall as far as the programs, the master plan is that we will build 8,000 units of housing of which 2,000 will be affordable units. and that is the purview of the treasure island development authority. what you're talking about here is the ownership program, which the private developer or private venture partners is developing. and this is the first for sale housing that they will be building and will be seen.

we have a long road ahead of us. many more units to build. and we will be hearing about the rental, affordable rental housing next. any other questions? hearing none -- can you please come up here? we cannot hear you. >> current treasure island resident. would love to have some written documentation on what preference means. to receive a 60-day notification by mail, i don't know what that means. that would be terrific. thank you. >> president tsen: okay. all right. >> clerk: item 8, resolution approving and endorsing an option of lease agreement between treasure island development authority and catholic charities and mercy

housing california providing an option with a term of three years with an extension option of six months to lease parcel c31 for the development of low-income housing. >> could you also call item 9 with this? >> president tsen: we'll have the presentation on items 8 and 9 but take them separately. >> clerk: resolution aauthorizing the treasure island development authority to execute a grant application as defined herein under the department of housing and community development affordable housing and us is staunable communities program with joint application with mercy housing, california, a california nonprofit, ac transit and/or project c31 and authoritying the authority to assume the joint and several

liability for completion in the projects required by the terms of any grant awarded under the ahsc program and adopting findings under the california environmental quality act, ceqa and guidelines and chapter 31 of san francisco administrative code. >> thank you. the second affordable housing project will be undertaken with mercy in partnership with catholic charities. we've talked about the first project, which will be the diagram on the screen, showing the parcels. c3.2 is the first that we'll develop with chinatown community development and we're talking about c3.1. the c3.2 project, as i mentioned, is in predevelopment with chinatown community

development. we approved their option of ground lease last march and they received an award last month from the veterans homeless prevention program, as part of the funding for the project could keep it on schedule and give it moving forward. tonight, we're talking about c3.1, developed with community housing partnership -- sorry, catholic charities and mercy housing. the current programming for that building, we're estimating between 134 and 159 units, depending on the final construction budget and interpretation of the planning guidelines. so the key terms of the option to ground lease include the

commencement date that they would need to move into the ground lease december 31, 2012, with an optional six-month extension to that deadline. the ground lease would be substantially in the form utilized by mohcd. and would be for a term of 99 years. mercy housing and catholic charities would be responsible for all taxes and the property could only be used for the development of affordable housing. and they would pay a rent to the city of $15,000 a year to offset mohcd costs in complying -- monitori monitoring compliance with the property. operations will be the responsibility of the tenant. fee title to the land would remain with tida.

and developers would have title to all the improvements during the term of the lease. at the end of the lease, title to the improvements would revert to tida. in terms of the grant applicati application, the housing and sustainability program is a state program administered by the strategic clothe council, which distributes money for housing programs from the carbon tax and cap-and-trade program. and we're putting together a application and partnership with mercy housing, with original the

treasure island developing and transit improvements part of the application. but expected that 3/4 of our reward would go to the funding project. the applications are due on february 11 and city policy and guidelines require the board of supervisors to take action assuring that the city will accept and expend those funds if awarded. and in order to file our application, we need to make sure that we have a commitment to fully funding the construction of the program. so that's our big goal. if we are successful in our

vote, our application, and it's a very competitive program, there are three other projects from within the city and county in san francisco that will be pursuing funding under the program in addition to ours, but if we are successful, we would need to start construction way june, 2021. so that's my presentation on these items, but i'm happy to take any questions that you have. >> just to reiterate, we have housing in collaboration with chinatown, again, a nonprofit developer to san francisco that have extensive experience in collaboration and i think that i would make a moment for approval. >> second. >> president tsen: moved and seconded. yes, can i have your comments,

sharon? >> director lai: director beck, a question about, what is -- do we have a backup plan if we don't win this grant? is there another source to identify? >> if we are not successful in getting the grant, it will take more time to fund the program. one of the primary sources of funding for us is a tax increment and that only accrues over time. other city sources for affordable housing are very taxed or overcommitted. so we'll -- the time will be the solution. that said, we are well-positioned to compete for this grant and also it appears to be on a schedule for regular offering. if we are unsuccessful this year, we would anticipate

pursuing it the following year. >> president tsen: anybody from catherine charities here? yes, hello. >> good evening. i'm with mercy housing and i wanted to thank you for having us we're excited to be a part of the community. and we're really early in planning for the building. once we start going into design, we're anticipating what residents would like to see. >> president tsen: thank you very much. i know mercy housing does great work in addition with catholic charities that provides the services. the task of building affordable housing is so difficult in the bay area. housing costs have risen enormously. housing construction costs have risen enormously. and at the same time, we are

faced with the funding landscape, where the federal government has abandoned sub siddies for affordable housing. we had a $350 million bond several years ago and it's been expended for current affordable projects. the state fortunately did just pass a bond issue, so there will be more issue going towards affordable housing, but it will take some time for that money to be distributed. and it will be very competitive. so we know that you have a hard task ahead of you at mercy and ccbc. we're very committed to making sure that affordable housing is built on treasure island. this is, one of the major parts

of our housing program and we won't abandon it. and we will make sure that it goes forward. and this housing is not just for sale. it's rental housing, which is going to meet the needs of low income, correct? >> yes. we'll have units for pre-d.d.a. households, as well as what can be applied for. >> in terms of numbers, catholic charities rents 66 units on the island. half the building will be filled with existing catholic charities uni units. it is two dozen market rate

units for pre-d.d.a. households to transition. and so good luck in your application and hopefully we will be able to start the construction of this project in 2021. >> thank you. appreciate the support. >> president tsen: okay. next item, please. no, i'm sorry. so we'll take any questions or comments from the public before we take a vote. hearing none, the vote is before us. there's been a motion and seconded. all those in favor, say aye. opposed? this is for resolution 8. and so for resolution 9, may i have a motion and a second. >> so moved. >> second. >> president tsen: all those in favor, say aye. opposed?

ayes have it. >> clerk: item 10, timma update on transit service, toll policies and affordability program. >> i would like to welcome eric cordo cordova. they've been doing work to plan for the start of toling on the island and conducted a couple of outreach sessions and eric is here to give an update. >> happy to be here this evening. a follow-up from last month's meeting and i want to update you on where we're at as it relates to the revised proposals here.

as we've indicated, the island is 1800 residents now and we're planning for 10 times that amount and the question is, how do we do that and make sure we don't create gridlock and the tolling policies in front of you are basically developed with that in mind. the key is to develop an incentive program for transit, walking, biking, discouraging the use of private vehicles. we know everyone has to use a private vehicle at certain times of the day. we appreciate that. but to go ahead and also -- tolling is part of that measure as well as paid parking. the performance targets require a 50% mode-share split. it's important to keep in mind that we have to have a

sustainable program. we want to try to develop that over the years here. we've heard a few questions and in particular, why toll? we want to remind the commissioners, and this slide does that, that 2008, legislation was authorized for toling. 2011, actual development plan included in its program description toling for the island. in 2016, our timma board approved a toll policy and the goal once again is trying to meet that 50% split related to transit and vehicles. our thought process here and people ask the question, why implement in 2021? that's the target date for the

model here. we should have households there and growing to the 8,000 number. why can't the developer and the city pay for the services? the developer is contributing $30 million. and in terms of transportation capital improvements, the muni service itself will be city-funded in terms of incremental increase there. there is also -- and i will get to this on later slides, a lot of other areas that we've been successful in getting to be able to bring money to the table to help offset the costs for the transportation board. want to give you a -- i apologize. hold on. let's talk about the timeline. and where we're at today. 2018. we're at a point where we need

to move forward with a policy proposal to our board. the final program adoption with tolling and business rules, etc., is two years away. and so we are here today to update you on what our major toll policies are, but a lot of the business rules, violations, etc., to that extent, will be developed over the last two years. this timeline shows the occupancy start of 2021 with the build-out, full build-out by 2025. we had meetings at the ship shape center in september. we're having in essence another

-- frankly tomorrow, tomorrow night, there will be an open house. we're trying to reach out to the community, talk to the business community. and hear their thoughts and get their thoughts on anything that they feel must be incorporated as part of the program. so let's talk about what we heard. making sure what we've heard here is provide for business employers, the residents. it's expensive to live here. i cannot afford to pay a toll once, twice, three times a day. so we're hearing that loud and clear. and that there will be tourists coming here and they need to pay their fair share, too. the original plan that, frankly, i did not develop, only called

for tolling of the residents. so what we passed in 2016 said, we need to toll everybody coming to and from the island, including residents in that regard. i want to get into the essence of the meat of what i'm here to state today. after talking to the residents and hearing from them and we want to continue to hear -- we have a couple of options here. in talking to our board, they've indicated, is there a way for there not to be a toll during the mid-day? it's an option. it's shown as option two here. option one, it's a monthly credit or a stipend of $250 to $300 for every household here on the island. that would help offset the cost, costs that they might incur. what is important to note is

that we're proposing that it end after a five-year period. after five years, you reach a critical mass. 2,000 units. you really have to go ahead and in order to meet the transit mode, increase the transit, full ferry service, etc., and so that's one major component of option one. the second component is dealing with the business community. we have a lot more work to do in terms of understanding how many businesses will be here in the future, etc. so we have work to do, but we understand there's -- it's a hardship in that regard. we're looking at a credit or stipend for qualifying businesses. we want to work with staff to better understand that and have more outreach. what is clear is that five-year

mark. you need to have a financially sustainable program. if we were to continue it on, we would have problems in that regard in terms of financial sustainability. i want to talk about some of the other components of the program that -- based on some of the feedback we've received. let's get it right here. we're basically also proposing to reduce the weekday offpeak from $2 to $1. we also want to incentivize and give a toll credit for every 10 one-way transit trips. last month or at least part of the proposal, we had it for every 20. so that's -- in that regard, it's 100% increase as it relates to how many trips, 10 one-way trips, versus 20.

the other important item on this slide is, on the weekends, we're proposing instead of $1 toll a $2 toll. and some increased hours for toling on the weekends. i want to talk about the $250 to $300, if you do the math, it would equate to two round-trip tolls per household every weekday. so in perspective to understand that, that's what that stipend would be able to in essence pay for. so if each were working, two people in a household, they would get a roundtrip free. if i could learn to -- there we go.

a graphic in that regard also, so you -- for you to understand, that money would be available to pay the toll. to purchase the transit access pass we've been talking about, with the difference going in the pocket. the toll is significantly less in the offpeak and on the weekends. the resident business credits, we would have business passes. working towards getting availability to workers through an employer program. we have to work out the details of that. as i mentioned before, the one-credit for 10 one-way

transit trips. what you have in front of you there is the similar table we showed you a month ago, but highlight what you have highlighted there in orange are the difference proposed tolls to be paid depending on if peak, off-peak or weekend. we're imposing the $3.50 toll and i'm concentrating on the fast track column there, which we're hoping and will invent -- incentivize people to do that. we were in l.a. metro, they have a nice program there. and we can help everybody get a fast track in that regard without any financial problem and having to pay that. we think it's something to

incorporate into the program here. there is a cost to all this. this may be a little confusing. i apologize. the $250 to $300 stipend equates to $3 million a year for five years, $15 million. if you were to pay for that by increasing the toll, you would increase it to a higher dollar amount. we're not proposing that. we're proposing what was on the chart on the previous slide. what this translates to is a short-term cash flow problem in the early years. we think we can work with the development team to look at other ways of financing to bring additional money to the table to offset that short-term cash flow

problem. so there's work to be done in that regard over the next couple of years, but we think it's not insurmountable. i do also want to talk about other funds that of have been brought to the table because a lot of folks, i think, may not understand that. and as i indicated, i'm deputy director for projects for san francisco transportation authority and we've brought $200 million of federal and state money to upgrade the interchange, westbound on and o off ramps, as well as west side bridges, as it's shown here on this chart. those are seismically deficient bridges that we've been able to bring a significant amount of money from the federal and state government and we intend to have the improvements done and

completed by 2021 late to early 2022 time frame. we're committed to try to find every available resource to the table. on ferry service, we're having discussions about getting an rm-3 ask for ferry service operations and maintenance. we're going to try to get every pot of money we have for clean airbuses to off set the program cost. when you combine it with the ticd contribution and whatter that bringing to the table, you are talking about $500 million that you are bringing to the table. we're doing everything we can and we're committed to do that.

obviously, i can't operate this well. want to talk about outreach and engagement schedule. we have an open house tomorrow night. we have our timma committee meeting on november 27. and we'll be requesting approval of the two options based on input that we get here from the board tonight and future meetings. we want to go to the tida cab for concurrence in december and seek approval in timma and come back to this board for concurrence in december. that concludes my presentation and i'm available for questions. >> president tsen: thank you. i think what we'll do, board. i know there is some public

comments. let's take questions and comments from the public first and then i will open it up to the board. if there is anybody here that -- in the public that would like to address the board, come forward now. yes, please come up. >> thank you very much. my name is jim rorsky, treasure island wines, a pioneer business out here. started in 2006/2007. i will keep my comments short and also a question. first, like many other businesses on the island, i think this toll proposal will fundamentally put us all at danger and probably have to shut down. currently, my customers are 65% from the east bay and north bay. i have commercial and retail. i do full winery production and i have a tasting room. 65% to 75% come from east bay

and north bay. they've indicated because of the press, that we have customers coming in saying, if there's a toll, i don't want to come out here anymore. i'm already paying a toll on the bridge already. so i'm getting feedback that customers are saying no. vendors -- i have vendors, one of them called up and said, do you have tolls now? i cannot come out there. we'll have to see about pricing or i will have to charge you to come out and do vendor deliveries. this is within the last couple of months. and, finally, employees. i have two employees from the east bay. the buses will not work on the weekends. they said, i cannot work here on treasure island if there's a toll program. so that's just my own experience and my business that's been out here for over 10 years just in the last two months. the proposal about a tax credit,

it's a great idea. however, if i don't have any customers, i won't have employees, therefore, a tax credit won't do me any good. and tax credits are great, but they have a tendency to be at the whim of them as they go. i'm not a fan of that, because it goes to the -- i have to get my customers out here on the island if there's a toll. i have a question -- i've been to some of the timma-sfcta meetings. i've been part of the business gro groupened several i have not gotten an answer to. just one i will give today. the proposed toll plan is to cover mitigation of congestion, starting in 2021. the rollout of housing in 2021 is relatively modest and it really is not going to happen until 5 to 10 years down the road. so why is the toll being

implemented so early when the real congestion ostensibly will happen 5 to 10 years down the road and doing it in a way that will tax existing customers or residents and businesses, such that we may not be around to see the benefits of the transportation infrastructure down the road. that's it. thank you very much. [applause] >> i'm alexandra powers. i have a metal fabrication company out here for the last 10 years. excuse me. i'm a tad bit nervous. it's weird to say it, but i have a suburban that seats 8. on a fun night, i can fit 20, unsafely. i'm not sure how they pick 20,000 to be on this island and

being able to be taken care of by our fire department, police department and natural disaster. it seems like a very large number for this island. this on-off ramp is my driveway. if you have to go to walgreens and come home and then go to a doctor's appointment and then come home. and then go to a movie and then come home. i love our grocery stores, they're amazing, but most people would probably not shop there. they do a great job, but they're not san francisco high maintenance. i leave the island a lot. an on-off toll is pretty -- it's a pretty big burden. thank you. [applause] >> hi.

i have been a treasure island resident since 2007. i'm really concerned about the toll and the off and on toll. i don't think it's equitable for anybody let alone low-income families we have hardships already that we're trying to overcome. realistically speaking, a toll to access our house, to access where we live, i don't think it's very efficient. i don't think it's effective. and i don't think it's equitable for everyone. a lot of people have more than two four-family households and i'm concerned about being able to survive and thrive. thank you. [applause] >> hi. thank you, board of supervisors

and bob beck. i'm mison boyce. i will try to speak quickly, but i get nervous. when we decided to submit, we knew that we were ahead of the development and we know there is pet ebb enshal-- potential. and we believe in the future of the island. we thought it would be easy to get investors, but it wasn't. when we decided to explain that we would do something on treasure island, they really didn't think it would be wise. but park and i dug into our savings and i took a second out on my house and believed in the future. for the partnership with sherry and tida, we've been part of the

community hiring a veterans program, like mike bartell and trying to hire as many local residents and support the coming of the circus to bring awareness of the island to the public. but we need more people from all around the city from an employee standpoint and from a business standpoint and we've spent thousands and thousands in p.r. just to get our name out there to be successful as a business. speaking of the risks, the construction is shutting down the road has affected 50% of the businesses to try to build more of the business and bring customers from east bay, west bay, anywhere we can. we're dealing with vandals and graffiti and car break-ins and challenges that make it difficult for a business like ours. even water shutdowns. and if we take $6 a day per

employee. [please stand by]

>> -- are you going to charge them, you know, fees and tolls to get into their neighborhood and to do business, entire employees? i'm affected by vendors that don't want to have to stop here, and employees, that i won't be able to hire employees. it will begin to affect us in multiple ways, not just ourselves. so i just ask that you take all that into consideration. and i know that was approved through jane kim. i know matt haney, the new supervisor for the region.

i would like to hear what he has to say, and hopefully, you'll allow the businesses to have a voice. [applause] >> good evening, commissioners. my name is nick, and i'm a current business owner on the island. i would say 80% of my employees also live on the island, and 100% of all my clients and customers come and visit me in my office on the island. i want to share the sentiment of all the speakers before me and behind me, as well. i was the one that represented the treasure island yacht club. i'm the current commander of the yacht club. knowing that some of the -- most of the current members of the island have been on the island since the beginning of time, i

know they would also disapprove of this motion. so i just want to object on behalf of the yacht club, as well as a business owner and resident of the island. [applause] >> good evening. my name is linda, and i'm the owner of araceli cafe, and i agree with everything that was just said. however, i understand that money has to come from somewhere, and as businesses and the residents, we're going to benefit from increased transportation services, increased residences on the island, and so i just actually want to propose some other options. one of the perceptions, a toll, no matter how low it is, it's going to keep some people for coming here, and i think that defeats the purpose for everybody trying to build this island. there's also no way to bike or

walk here from san francisco, and there's not a single other neighborhood in san francisco that has a toll. however, i think there's ways, like neighborhood parking permits, which we have in san francisco, that instead of getting all these discounts and benefits, why not just adopt a model that's working in the city and pay for people who want to keep a car? personally, as a business, i would be willing to may a monthly -- pay a monthly fee, a fixed fee that would go towards transportation, because we would directly benefit from the ferry service. i think you can increase parking rates just like they do in downtown san francisco or areas that are in heavy traffic, and i think increasing the ferry rates, especially at peak hours, instead of having a low ferry

ticket, just increase those costs. i know i was at the business meeting, and i asked for a lot of the numbers, and a lot of it is to pay for the ferry service. and i just think we should create a space that people want to come to, and then get the money from all these places. but $10 million being spent on something that is not really going to benefit anyone, i think everyone needs to go back to the drawing board. this is an old proposal from, i think, 20 years ago, and i think there's other solutions. that's all. [applause] >> good evening. i'm a resident of treasure island. with a full disclosure, i'm also a member of citizens advisory

board, and also a past commander of treasure island yacht club. very unique situation. i actually came to treasure island in 1990 as one of the first businesses that we invested in the infrastructure of bringing telecommunications and internet to the community here. and we spend millions of dollars for this venture, and i could see the similar unfortunate kinds of situations that happens in the future with new residents and businesses that don't want to invest in this kind of infrastructure in treasure island. in 2002, the first wave of economic decline, i had to close the business and take the company through bankruptcy and lose millions of dollars through that venture. i could see us going through the similar situation if we don't think about this