>> it has been studied a number of times since the two thousands on the bike, and at this current iteration, our board asked us to roll back and look at any fatal flaws to the concept, as well as to refine some engineering and refine some of the cost estimates so we can make a more informed decision when the time came. we have been working diligently over the last several years, looking more into the technical aspects of the bridge, how we would make physical connections,

also dealing with the changes in traffic pattern that have been happening in and around the bay area. it has taken some time, but i'm here to show -- i don't want to say preferred, because we're not there yet an environmental tag but what would be our design team's recommended alternative that we would pursue. it is not the preferred alternative because we are not there environmentally. so i am just going to walk through part of the presentation that we did back in thanksgiving i will watch from the island, into downtown oakland -- sorry, into downtown san francisco. we will start from the orange circle here and you can see here , it is the new band. you have an open a few years. but the red line is the current path on the east span period is a 15-foot pathway that takes you down into a landing area at the southgate road area where you

are jointly funding an error change project and will improve our connections there. the orange line is hillcrest road and we looked at a number of alternatives to get from the east band to the west band. that is a primary focus. it was not so much to focus going on to treasure island, it wasn't at the time. our project was from bridge to bridge. we are coordinating to get down to the treasure island area. we did look at a number of options along hillcrest. we had options that went through the tunnel, utilize mccullough and whatnot. we ended up settling primarily because it is the most logical along hillcrest. we do have challenges in the area. they have a steep rate. and the landing area on the right-hand side. it will be of a challenge. as well as the greats on hillcrest road. i think to note is we have an active co- spot -- coast guard you are aware of. we need to make sure those names

are happening because they have residences that are along hillcrest road and the active base. the orange line follows along hillcrest and drops down a little bit. we still need to stay high to get over the bay bridge portal. we realize that we chose the north side of the bridge for better reviews. it seems like the public outreach we had earlier. people -- it would not preclude you from going to the south side but we think most people would like to be on the north side of the bridge. we would span over the tunnel and then we would not be on the same level as a current hillcrest road. this is below the portal that you see now that has a fence over it." be slight -- sloped slightly below its." tee off here and go over the bus ramp or the ramp that you have here and tie in -- were still working on. on the west side maps and have a tie in. it is as successful as it can be and let it had down into treasure island.

and then i can answer more questions. i noticed treasure island focused, but on the main span itself, which is the bulk of the project, and the cost, we looked at a number of different structural solutions, as well as size. this is looking at the reviews of the north side, southside, we looked off the bridge with the outboard. we looked at what an on deck option would be to take a look at traffic or try not to take a look at traffic. it would not be good for traffic i would say. we were asked to look at all of those options and then we did a lot of variations on structural options for the bridge. it is nearly a 100-year-old bridge at this point. it is -- it would be a challenge to retrofit. that is where a lot of our focus was put. we are looking at putting in a new cable, suspending the deck like the brooklyn bridge, the brooklyn bridge is slightly different because it already had that bridge -- project -- bridge

deck there. we looked at every option out there and what we ended up settling on is what the structural engineers called the connection off each one of the trust his members here. would line up to an existing vertical member and this yellow piece is the new piece that we built onto the bridge. we can't weld to the bridge because of the age of the steel. carbon content makes it better if we could bolt on versus having a welder connection. then we would follow on what the steel decks that are right up on the top and sit on each one of these l-shaped brackets. that is a shot. the width of the path mimics the east band bike path. it is about 15 feet. there's a lot of comments from the public that they felt is if we had a lot of ridership, it would be very challenging and tight still. this is probably the most with

you can build without running into additional engineering problems. we are planning to widen the vista point areas around the towers and places where we could logically widen the path and make better connections. there are connections there. and then as we drop down into downtown san francisco, we look at a number of options. the one on the upper left was one that was noted in the chronicle back with a number of loops coming on down. there was eight loops coming down from the top deck of the bridge. we have an elevator scheme, what we are choosing on the north side, their options to drop down on the southside, but are preferred on the north side. it would drop down along essex street. we can see it follows the yellow line and it makes -- it comes around the buildings, the new buildings we have their -- we have there and follow fremont because the grade does not

necessarily allow for that. but then it would have a switchback right here. a switchback here. this is a planned area. is currently the second street on ramp to the bridge where the buses are now. there's a plan to convert that into a bus boulevard and take you into the new transbay terminal. so you'd work with the city and we can be in contact with them about how we would land a bike path in that area with a switchback. and then we do see a strong demand for the project and to the advent of ebags and that mode is definitely been a rapid over the last several years. i think it does -- even though we have a fairly long structure coming from the west path, it is about 3 miles long.

the existing east span is four or 5 miles long. so we have a line that from end to end, is over 7 miles long. but with ebags, it gives you the -- it gives you an opportunity to cut your commute down if you are on a bike. it is not just for hard-core cyclists but almost anybody can do that. and some of our modelling that we did, it does open up more of the east bay to get into san francisco. this is if you are just on a regular bike is what our consultants felt, how reasonably you could get into san francisco , but that does expand quite a bit with the bike and getting higher speeds on your bike without having -- with the push of a bus in. and then i think there was a question earlier about the modelling. we did rely on the modelling that we used for the transportation plan. the last column we did see quite a bit of usage from treasure island that were developed with all the residents that we have. we are up to a per hour peak of

about 750 from the island itself , and 2700 in total. that is with the bike and that concept. we still have a lot of users commuting across, as well as tourists and others. to get to where we are today, we are in 2018. we just finalized our last outreach for this phase of the project. it got us between -- depending on what phase or area of the project we are, we are at different levels of design, but we are really only about ten and 30% design, and we just really looked at the pitfalls. there aren't exactly a lot of environmental fatal flaws, primarily the challenges will be historical properties and that sort of construction. it will be difficult particularly with traffic control and being able to take lanes in the middle of the night it will be quite difficult day today. funding is probably our number 1

driver. the estimate for the project, at this point if we were to start today, is around $350 million. however, we don't have the funding for it. we are seeking other funds too, and the same pots of funds that. is looking for. we are trying to look for opportunities on -- there is a strong case to be made to seek funding jointly to build the connection along hillcrest. there will be independent utility for both projects and parts of the island. i don't control all those funds. that is a different side of m.t.c. at this point. but we are looking for funds there. regional measure three,. >> speaker-01: , as well as the city transportation agencies that would benefit from this project. but that said, if we were to start today, we are probably in 4-8 years before opening, including risk and delays --

delays that we would possibly would be having. i am available to answer any questions if you have. >> okay. first, if there's anyone from the public would like to speak on this issue, i guess we could always raise the tolls. [laughter] >> just joking. >> not on cyclists on bicycles. that is currently an eligible toll. >> okay. anyway. director? >> too soon to joke about that. thank you so much for the presentation. this is so exciting. for comparison, i mean if we can get downtown on bike in 17 minutes from the island, that is just so amazing. i mean the inner city traffic on the mainland is so horrible that it can take you easily 45 minutes to get downtown if you

live in the richmond or something. for me i live in the caster and it takes me easily 30 or 40 minutes. so i think that would be really amazing. you mentioned environmental review. what is the environmental review that is currently underway? >> we would have to do a document. we haven't proceeded. we just did a screening of what would be red flags for the project in areas that we are concerned. or wes or any that would stop us cold from implementing the project. i would say one other thing, aside from historic elements, we will have challenges with the shipping clearances in the area. we are adding weight mac to the bridge. in the jurisdiction there is the coast guard, as well as the navy , and lowering the bridge, we didn't have the ability of bringing the larger ships that they were bringing in. that is something that we would have to deal with. funding continues to be a

challenge. and we have other work that has to go on the bridge. that's why we can't simply just fund one project. >> i see. you have perhaps done initial scoping, with it hasn't been funding identified for the actual study yet. >> no, we haven't. >> we just initiated looking at what we have and we haven't got that far because we had limited funding in this phase. we are pretty -- at this point in time, we are settling down to try and identify additional funds and decide how far we want to go. we are meeting with various stakeholders and coalitions as well as others to continue to have conversations of where we want to go with the next steps for the project. >> on the preferred -- i don't know what we are calling it, but the current scheme that exits over excess street, is there an existing bike lane there, or how does it connect with the bike network? >> it would be on the bite can network. it is a bike boulevard

designated to go in along that stretch all the way into the transbay terminal. >> that sounds great. >> even on the south side, on beale street, beale street is a designated bike paths do not call. honestly, six years doesn't sound that bad. six years is may be three years beyond when we first start having residents on the islands. this could potentially work very well with our timeline, i think. please keep us posted. thank you so much. >> thank you, mr lee. we finally got a chance to meet you and see you. what a wonderful presentation. i also want to echo what our director said. this is a very exciting thing. it really demonstrates that we have the right people trying to make decisions. i raised some fundamental issues earlier, and you heard me loud and clear. about the fact that your agency

is taxed with the region. and you just mentioned -- i think that looking at the treasure island project, especially with what you just presented, it really underscored and it would be good to hear that if we are able to implement and collaborate -- can collaborate and work together, we have something here for the region. this is the way that this project should proceed, and i think that with that kind of approach, i know that the funding will come easier for you , and i think one of the things that we will be doing here, we are all up -- also have representatives like scott weiner and debbie to, they are outstanding legislators in this state. they need to see this

presentation. they need to see what you just presented to us today, and they all need to do that. this is a way, on the board of supervisors. i think when you take that road, people are going to believe and see the potential that we are talking about here. so suddenly, the emphasis has been on the toll, now they need to look at all the alternative modes of transportation that was written on the treasure island transportation plan that we are trying to implement, and with those kinds of balances people. people will be able to see what we're doing here. it is not a standalone. you're not just putting a toll, but this area has significance and semblance to the region as a whole. because from what you are doing here, we are also looking at how you can get to hunter's point, we have the south and waterfront and along central soma and all

that. all of this for san francisco is connected and if you are walking , we know 17 minutes, my god, you can walk that span 455 minutes. a lot of people coming to san francisco for the weekends, rather than take anything, they know they will be able to take the ferry. and then they will be also able to walk here. this is something we believe in. that this plan will be implemented. we want to try and help you so we can work alongside each other and also all the goodies from the m.t.c. i would like to bring you back for the, is that correct, so we can have a comprehensive discussion again, for years, i read your transportation plan. and just also i just concluded chairing the transportation subcommittee for the port of san francisco in their master plan. all of this transportation for

san francisco is really within your jurisdiction. if you look at munimobile, they have jurisdiction for what goes on inside, but to your plans, it is actually helping. now to facilitate and alleviate the congestion that we are having here -- the way i look at things, the solution to the region is actually you, m.t.c. and the sfcta. because their boundaries and what is feeding from the east bay, the north bay, from treasure island, is basically what is complicating the transportation gridlock. and you are the ones that have the mandate and jurisdiction to alleviate that. why are we now talking about that? i would like for you to look at what i said earlier. maybe we can alleviate a lot of the gridlock going to alameda or oakland as they are passing

through treasure island by ferry , by all of this. why not? so we are doing that all now with m.t.c. it is time to be thinking about that. you might be able to collaborate with alameda and all of that and what you are trying to do and foster the solution. i am highly excited, and again, we have the people that can do the work on the grounds. we just need to move the plan forwarded to you sfcta. thank you for this presentation, and in january, if possible, i will ask bob back to try and bring you back. i think we need to bring you back so we can see. we also wanted to see how you are communicating with the sfcta thank you. >> i just wanted to thank you click on the first thought we would see this pic i thought it was pretty impossible, but

that's also. thank you so much for your time and for looking into this great thing thank you. >> thank you. >> okay. next. >> item number 9, opportunity zones. >> treasure island, as we have discussed previously, has been designated as an opportunity is zone by the federal government, n.t.i. c.d. has been exploring what this might mean for bringing additional investment to their programs on the island, also the city is forming an opportunity zone working group to look at opportunities across the city and that has yet to be convened, but it will be convened in january, and we are also absorbing and digesting information and discussing that

with treasure island. i will bring you future updates an opportunity zones coming out of the conversations with the city and one treasure island. for today's presentation, dan fetter from the treasure island community development will give an overview of what opportunity zones are, and some of the things that they're looking at. dan? >> thank you. i appreciate it. i am sure many of you have seen opportunity zones in the news. they have been very hot topics. in fact trump, in the wall street journal today, there was an article about how the government is focusing on committing spending and allocating budgets to opportunity zones in the future as part of the budgeting initiative for 2019. i just want to give a broad overview of what opportunity zones are, why they were created in the first place, and how treasure island can benefit from

them in addition to the rest of the city his opportunity zones were come just completed as part of the tax act and the 2017 trump administration. this is a bipartisan effort on both sides of the aisle. it was spurred by silicon valley tech money. a lot of c.e.o.s have a lot of capital gains from all of their wildly successful businesses and there's a lot of tax they have to pay if they cash in on those gains. they also want to help invest in the country and they wanted to find a way to bridge the gap. shawn parker from napster and facebook created the economic immigration group which is a group in d.c. to help spur this bill. it has s.f. roots and silicon valley routes and a lot of the money will come and invest in all these opportunity zones across the country. it is based on silicon valley. it is an opportunity for

treasure island to take advantage of that and also be a really shining example. so what are opportunity zones because they are distressed opportunities across the company does country that suffer from poverty and our minority base and have average median income well below the poverty line and national average, and also in areas where rent or ship is actually very high compared to the national average. these are areas that need investment. they need people to come in who previously wouldn't have looked at these opportunities for investment from real estate, or from businesses. it is a way to bring money into areas that really need it. twenty-five% of the census tract qualifies and about 10% of the u.s. population lives in an opportunity zone across the country and there almost 9,000 in the u.s. key benefits to the program and why they are relevant, it is not competitive process for other tax credit programs. it takes years of competition

and application and money for an opportunity zone. if you can own the land, you can invest in it pretty quickly. it only takes one filing. so it's a very easy process. the government wants to incentivize investment in these opportunity zones. any eligible taxpayer can participate. there's no caps on investment. if you have $100 million or $100 billion of capital gains, you can invest. there is no tiered structure. and the two benefits to the program, first if you have other q. -- capital gains, you don't have to -- to get a temporary deferral of the actual tax. if you hold your investment in one of these opportunity zones for more than ten years, any capital gain on that investment is written off. so the benefit is if you want to bring money into this community, you want to also keep the money in the community for a long time

that is why they are trying to incentivize the long-term hold. the total ways to apply opportunity zones in treasure island and in san francisco and across the country, the two main forms are through commercial real estate investments, and through operating businesses. commercial real estate could apply to a few simple interests are long-term leases which is relevant for retail in building one. rental office, mixed-use a theory a theory. you really have to substantially a theory substantial late the land. the bill does not want a slumlord come -- to come into the community and invest and not do anything. the purpose is to substantially improve the areas. the operating businesses can be any existing business and build

new office space. it is to enhance the businesses. you can continue -- create a new businesses well. for a lot of places on treasure island his that are currently in existence, or people who want to invest in treasure island today, they can still do that and benefit from the program. a few other items is that you have to also substantially invest in the business and you have to do a lot of the work and the opportunity zoning, which you operate. you can't buy a 1,000 square-foot office, college opportunity zone headquarters, and conduct business anywhere else in the country. they want to make sure the businesses are operating in the zones. a very high level, there are 900 opportunity zones in california. 4.1 million people live in these zones. there are 2 million jobs in the zones, and about 170,000 businesses operating in the opportunity zones. on the chart on the upper right

shows that 90 5% of these tracks are in urban areas. and so it is also meant to build density in these communities. california has a housing crisis and compared to the rest of the country where it is just 75% urban, it is a big statement by everyone that designated the zones that they want to build density in urban areas. the bottom of the page you can see the california demographics, and the california opportunity zone demographics. in almost every category, there is a very clear message being sent that these are people who need help, you need investment and in community development. eighty-eight% are minorities in the communities. thirty-four% live at the poverty right mac versus 16% in the country. and so on. it is very clear that these opportunity zones need investment. next page covers some of the very key criteria numbers.

for an opportunity zone to exist , you have to have 90% of your assets invested into the opportunity zone, and there are tests every six months to make sure that that is happening. one concern for developers early on is that if a development project takes 30 months to complete, how can i pass this test and what i be penalized because the treasury issue guidance said you have 30 months to develop the property before you fail any of these tests. across the country, there are 2 million businesses operating in opportunity zones. 31 million people are living in the zones and so it's about 10% of the population that is being affected across the country. on the right-hand side, there are a few dates and a nice big number to show the potential of the program. in 2026, that is when the initial gains are due. and so the faster you invest today, you stand to benefit more in the future.

they don't necessarily make these deals. the way i would describe it is that if there were only one or two people who would look at the still before, there are now 10- 20. it brings competition to the table and it brings creativity. on treasure island, there are a number of ways where we can make this work with people who previously would not have considered this. there two main benefits. the first is through the original capital gains tax deferral and the treasury has created incentives to invest earlier on to take the most benefit and make the most of the program. if you invest in 2019 and hold your investment for five years in an opportunity zone, you don't have to pay taxes until your exit date and you also get a 10% discount on that tax. you get to do for your talks for five years, and you also get 10% off.

for seven year hold, he would get 15% off instead of 10% off. there are benefits to investing now see you can hold your investment until 2026 when the cut off really ends. part two is a capital gains tax on the opportunity itself apple stock, which i don't own, and made a lot of money, which i haven't, i would probably want to invest through a long period of time. the benefit of this investment is if i invest $100 million into a building on treasure island and hold it for a long period of time, and i make $300 million, i/o no taxes on that gain. that is really the incentive that is making people focus on this program. for a lot of high net worth individuals and tech c.e.o.s, they care the most about part two. part one is great but part two is a most important parts because you can shield your taxes for a long period of time. when we think about treasure island investment, people have come up to us and a number of

investors that are in treasure island, and they want to find ways to invest as long as possible in these programs. we believe that these incentives make sense on both sides and we are particularly excited about part two of these benefits. the next slide goes through a very high level example. if i were to realize $100 worth of gains in 2019, the traditional treatment, assuming a 20% tax right mac is i would pay 20 bucks immediately. for opportunity zones, i don't pay anything so i have to invest $100, which represents $100 of gains in 2019. if you hold it for three years, you get the benefit of not having to pay taxes for three years but you still owe $20. if you hold it for five years, you see the benefits accrue. you get 10% off of that capital gains tax. at seven years, you continue on and get 15% off. and the real benefit is if you

hold it for ten years, you will have had to pay, in 2026, the $17, but you pay nothing. just a high level example, once again. this is a map of san francisco and the opportunity zones contained in the bay area. for some reason, water is a census tract. you will see a lot of orange but it really means nothing. the highlight is that treasure island and other islands are contained in that circle and there are a few census tracts in the south city. this is also a broader map of the bay area that shows concentrated areas for opportunity zones pick vallejo and richmond in particular are key areas. if you were to zoom out in this map and look at california, the three largest areas are l.a., san diego, and fresno. so the bay area has not received as much interest, if that's okay

, but we want to make sure we take advantage of the opportunity zones we have been given from the city. so with that, i have provided links and helpful sources if you want to dive into it more. i'm happy to discuss and answer any questions. >> thank you for that. >> i would first like to hear if anyone from the public would like to speak on this. okay. >> thank you. nationally there was a debate against a senator from south carolina. i see how it could benefits a lot of communities, but i'm curious how specifically to treasure island this will be held. i have a few questions for you basically.

in the normal world, currently, if you want to defer an investment, you probably do it through a 1031 exchange. that will live forever until you sell and then you can redefer it and this has an expiration date, which is sort of interesting. it brings up a couple of questions for me. one, given that a lot of the real estate in treasure island is going to be residential, i don't know how applicable this will be for an investor coming in who is deferring tax from capital gains sales somewhere else. but i guess we also have businesses where we will have some commercial enterprises that could benefit from this. basically it expires in 2026 specifically. there is no extension beyond 2026. >> correct.

there are a few items impacted. the first being the 1031 versus an opportunity zone. 1031 exchange is great for people who have capital gains in real estate already, and who want to roll those gains into real estate investments. and for opportunity zones. you can come from anywhere in the stock market or in the real estate. it allows people to participate in the real estate capital gains program. on the back end, you can elect not to recognize that game and -- gain and roll that gain into 1031 in the future as well. so if you want to continue to benefit from real estate capital gains deferrals -- >> it is a good thing you just said that. basically, when you're given an expiration date, are we going to suffer from a d. investment in 2026 club people -- of people will start paying taxes, they

are getting it deferred for five years and they get a tax on aggregates. if they don't sell, if they still hold it, they would still -- they would start to pay taxes beginning in 2027. >> rates. that is a really good question. the 2026 deadline is really meant to incentivize investment as soon as possible today. it does not mean that the benefits of the program are gone after 2026. so the first part of that deferral, of the two benefits is highly relevant for 2026. you could invest in an opportunity zone in 2027, and still benefit from the second part by holding the investment for more than ten years. as far as we can tell right now, the designation of an opportunity zone ends in 2028, but if you have invested in the opportunity zone area before

2028, you can still hold it until 2047 and benefit from the major benefit which is the long-term hold. so we think we will have a ton of investment in the next year or so because in order to take advantage of the seven year deferral, you have to invest before the end of 2019 because 19 to 2026 would be the longest you can hold it for. we don't anticipate a drop off, but we are interested to see how the market treats opportunity zone investments after the 2026 .-period-paragraph is also so they are excited to see if the program takes off. if it takes off, it doesn't mean that 2026 is the end date, and they may extend that. >> okay. >> i have one more question. so this is not meant to buy a hold or substantially invest. how do you quantify that quota. >> there are a few ways to

quantify that. for current operating businesses , you need to invest 70% of your money on top of what you have acquired your interest for. this means that if you buy the business for $100, you need to put $70 into it as well. if you buy real estate and it is a hundred dollar building, you need to substantially improve it well beyond that. you need to put double the money in. this is really measured at a substantial improvement, which is why you real estate developed is so relevant. of course, you will have to put in the money to make it a better deal. i want to comment the investment we are looking at opportunity zones in two different ways. one is as it applies to rental buildings that we are considering developing, there are a number -- it has been very difficult to build in this environment right now with costs extremely high.

we believe that opportunity zones bring a larger pool of investors to the table who could be interested in a rental product, and that would bring more people to the island sooner and activate the island as soon as possible. the other area for investment is in the retail side, and for the administration building character there are ways to work around leasehold agreements and master leases and ground leases. that could bring new capital to the table faster and help accelerate the islands improvements and make it a great place even faster. there are a number of ways to apply this to the island and we are continuing to look into finding a way to make that enticing for anyone who would be looking to invest capital gains. >> great. thank you. >> ms. miss richardson class. >> thank you. this is very exciting. as you are making the presentation, i was going through san francisco to identify some of the economic

opportunity zones. i know that the hunter's point shipyard in the southeast sector will qualify. they are in treasure island, on the development of the south and waterfront, which is also around the bay view falls under the jurisdiction of port san francisco. i think you'll be talking to them also about of the opportunity zones. the question i have here is that this is very exciting. treasure island is a mixed-use development, and we not only have substantial real estate involved, we also have retail, and a whole combination. and even the itinerary where we went to new york, we also saw signature projects that we can model into treasure island. the question for us would not be when, but how do we leap to taking advantage of this

tremendous opportunity, because like you said, the government is a bipartisan deal. we create this in 2026. that really means now that in 2019, we must -- treasure island to begin to map out development mechanisms around opportunity zones. that is basically the messages that you are trying to give us here. now some fundamental questions here. in every zone again, i guess it depends on eventual capitals from the investors, so there are no competitions. for example, if we were to tell you right now we need to begin to market treasure island to all the investors, whether you talk about stockbridge, or other adventures, we have to do that on a standalone. we need to begin to do that

because we know the other parts of san francisco are competing for the same amount of investors these are the messages you are trying to convey here. i will presume and assume that all of the economic opportunity zones in san francisco,, once a city's presentation they would get on board. it is a tremendous opportunity that we have in this region. and even nationally. they can come in and help us here. who, in san francisco, were a city agency, have you made any presentations? how are they going about this? >> how are they going about that >> i think that's more a question for myself than for jen but the controller's office is convening a working group to

coordinate activities at treasure island and the other opportunity zones within the city. we have a lot of work to do and as obviously as it has been highlighted over the next three years, that is the peak opportunity to be able to appreciate maximum leverage from the opportunity zones. there is a rapid timeline to try and make the most of these opportunities and attract the most investment. >> i think we need to come out of the gate. it is very important to know that this opportunity zone is highly applicable to treasure island. i know you -- i know we have projects that we do not have financing for. and so earlier on, i think this commission was engaged in trying to find out different kinds of

financing. we have the i.f.t. and many tax increments. we also know that is the state of california is looking at different financing mechanisms, especially since the dissolution of the california redevelopment agency. so the opportunity zone also would be applicable from the state legislature. how would their involvement to also make these possible for us. i think that it is very exciting so the statistics are about 31 million that would be living in the opportunity zones throughout the country. that is a substantial number. and within california, san diego , in los angeles would also be competing with san francisco. >> thank you. this is great. i hope you will be back to help us here. we would love to explore some

opportunities here. this is the message that we want to convey right off the bat. >> thank you very much. >> this is really interesting to think about. thank you for helping us wrap our minds around us. i mostly cleared -- curious about the types of investments that could fall under these categories of commercial real estate, and operating businesses are the definitions pretty strict, or is there -- here is what i am thinking of. to me, i think it would have been a much better opportunity for treasure island if we were able to somehow expand the definition to include things like infrastructure projects. i know you mentioned the waterway is not really real. but is there a way to make that part of it? obviously we have a lot of

infrastructure and we need to building that may require bond measures or private bonds, and is there some way to get some tax relief for that type of investment or reinvestment so that we could create a more attractive deal to build the infrastructure? you think that is possible? >> my first thought would be that the bill was written for flexibility and to incentivize bill investment. it was not meant to be a roadblock or anything that would serve as an impediment. i would be curious to see how we can make that happen. i don't think it is out of the question. i would have to look into it and do some research. i believe there are ways to make it happen as it relates to public buildings, or affordable housing. the city would have to find financing for. there are better ways to bring capital into it that could supplement other forms of financing, but it is a really good question. we thought about it from the ferry service perspective.

if that could be an operating business, and how could you finance that? we are trying to be creative. this bill was meant to be used creatively. there are a few businesses that are excluded. liquor stores, casinos, golf courses, we don't want to build those in the communities that need real financial help. so those are the businesses. there are currently wineries in the island that theoretically would stand to benefit from a program like this, but i do not think they would be included in the bill. that is the only thing i can imagine right now. >> thank you. >> that is a really good direction for us to explore, whether or not we can create a business out of the ferry service. and then also, it just seems that this is a great opportunity for us to explore some more lease. it would allow for some of the

deal structures to be more feasible and help alleviate some of our financial constraints and building it up. thank you. >> thank you. >> i have another quick question may be bob can weigh in on this as well. and moving forward, having a master developer, i know there will be some opportunities for private developments and parcels for sale. if we are talking about residential opportunities and of investment in rental building or something like that, then i know we just discussed some public components like the ferry building and other infrastructure projects. if they could be included into the opportunity zone, could someday come in and take part of

that and invest in it? >> absolutely. within the real estate developments deal with the master developer, there is a couple of things pick one is under the development agreement. they are allowed to self develop 40% -- 60% of the vertical residential development, and they are allowed to joint venture on up to 20% more, but they are required to auction off 20% of the vertical development opportunities. that opportunity definitely exists. also, the development agreement calls for a minimum of the 10% of the market rate housing that is developed to be for rent.

in the sub- phase application, they identified one parcel in the initial sub phase to be a for rent product, and because of this opportunity, they want to modify the plan and provide more for rent in the first sub phase. those opportunities definitely exist, and they are being actively evaluated by t.a.c. d. >> and at one point in the development process can these be made available for someone, given the timeline of the expiration of this program? >> i may refer to dan, but i -- the initial sub phase, you know, they are undergoing the geotechnical improvements. the expectation is that in about 18 months from now, some of these parcels, the surcharge and all the rest of the geotechnical

work would be complete. so it is a matter of timing, auctioning of the opportunity, versus the preparation of the site. the other thing was the 30 month window to make your investment so it also factors in here. >> i agree with bob. we are currently looking at opportunity zones for the first phase, and first stage of vertical development from the private side. we have always needed to add more rental projects to treasure island. it brings more people and a project dealt -- demographic to the island. it brings them sooner. we are actively discussions with a number of different capital providers and partners to figure out ways to structure these investments if anyone wants it. we have the benefit of a few things. one is a 30 month timeline for development. you also have six months from

the date that you sell the capital gain, you realize a capital gain to investing in the opportunity zones. if you tack on the 30 months to the six months, you have three years before the construction is complete, which gives you a nice lead time to invest. i think we'll continue to see interest in a project over the course of the next several years , but i don't see that weaning as a 2026 deadline looms because there are still opportunities to take advantage of the program for the tenure benefit well through 2028. >> got its. one more question. this is so exciting. the more i care about this, the more excited i get. i know we have been looking for affordable housing funds. can thus also apply to affordable housing projects? >> that is something we are looking at and different ways of structuring that.

it is definitely in our works. we are exploring to see how we can make it viable. >> that is great thing i thank you. >> we need to get going. >> thank you. >> appreciate it. >> okay. next item. >> item number 10 is some phase application update. >> okay. we have talked to evan -- and had a couple presentations on this, but conrad is back to give us an update. as i mentioned in my report, the intention is to submit the sub phase application mid-january and consistent with an air charge executive directive, the goal is to shepherd that through the review process by city agencies within 90 days. by mid april we will be looking to approve the sub phase application. >> thank you. good afternoon, commissioners commissioners. i am with landscape architecture where the light -- lead

landscape architects on the project. i am looking forward with giving you an update today on the sub phase. we have two agenda items, first off is i will walk you through the sub phase application itself and give you a preview of what you will be seeing and what we will be submitting to the city department. and then the second agenda item, as requested, to talk a little bit about some of the design elements that we have incorporated into the public realm that make this place the safest and most accessible place we could make it as we are possibly able to. i am joined with the team behind me. and jeff is here with the transportation engineers. and brandon brendan, who is also contributing from the streetscape design. jeff will be joining us and we talk about signalization. just a recap on the process that

we have been going through, we were here in may to first introduce the sub phase to you. we have met with city agencies, all enter agency groups several times, and worked with the city accessibility coordinator several times as well. we had an opportunity to meet with the cabinet last week. the cab has seen the same updates that all of you have seen. we have some positive comments from them about the sailing centre, the bicycle coalition, a number of other stakeholders and constituents. we are incorporating all the feedback into this application, and as bob mentioned, will be submitting the application january 11th and with the intention of getting any comments and wrapping that up early in the spring. we are hoping to be moving forward into permanent -- permitting into the summer. the intention is we will get this approved and get going with

them and move things forward. so this document that we will be submitting, to clarify for anyone who is new, will be submitting an application document. it is an illustrative -- illustrative book that is a high level and summary of all the information that we will be submitting. that is something that is information that we have been working on for about 15 years. it is all based on what was in the design for development document that was submitted in 2011, and subsequent documents that came out of that. the open ski -- open space plan, the infrastructure plan, the major application, and now this will be the third sub phase application that we have submitted. so just a high-level overview of what the table of contents is for the application document itself, i know it is so tiny to read on the screen. but generally, what it includes as an introduction, a land use

section and a transportation section portion about the parks. a section about utilities and a handful of dependencies that are included. some of the high-level sections that you might be interested in learning a little bit more about , the application includes a schedule performance which includes the application dates and completion dates for the project. this is just a sample. this is not all the pages, just to give you a heads up. and includes things like the associated public benefits. things like parks and open space , community facilities and include things like the fire station or the sailing centre ticket also breaks out details about the housing. you will see in this section it talks about the total number of units and the type of units in the area of those units. it also gives totals. will be nice to see there is 2300 new units that will be part of this next phase. also, elements of the projects like the building heights and

massing requirements are all carried forward from the d. for d. the lead credit checklist is inhere. it is all the credits that we applied forward to get the lead nd accreditation. this is what we need to continue moving forward to the project to make sure we uphold our standing as the highest ranked, largest lead project in the world. there is a section for the streets and gives you an overview of the high level of design and includes diagram -- diagrams which includes which streets or in the trust area, and then we go through, in detail, into all the important intersections that show all the things that we thought through and how pedestrians and vehicles and bikes all move safely through all the streets on the island. and for the parks, there's a section for each part within the sub phase. those include a description of the overview of the park design, the concept and program, access and circulation, and then we go

through the plan view and highlights the program design elements and highly any changes we may have made since the last application and when it was approved. we talk about things like sustainability and how those have been incorporated into the project like implanting stormwater management and irrigation design. and then there is a utility section as well. and so we will go through and they will be a diagram and description for all of the different types of utilities, at a diagram explaining how they work. that include stormwater treatment, storm drains, sanitary, sewer, low pressure washer, recycled water, supplemental firewater, joint trench and geotechnical mitigations. as i mentioned, there is this illustrative book. it is an application -- several appendices go along with that. to give you a sense of what some of those are, that includes 50% construction drawings for all of

the streets and infrastructure, 100% design development for all the parks and open spaces, includes shoreline drawings, geotechnical reports, and a whole bunch more things. it was a very large and comprehensive package that summarizes the whole project. that is an overview to give you a sense of what is coming. in terms -- shifting gears for public realm and safety, i know we talked a little bit about how they were questions about how the intersections work, or what were the innovative strategies that were incorporated into the design of the public realm. i want to walk through some of what those strategies are that we are including. as you know we are all very proud the treasure island -- we have prioritized pedestrian movement on the island and safety. it is a very flat place. there is no reason that everybody and anybody should be able to get a look around easily and