momentarily. this is a regular meeting of the commission on community investment and infrastructure. the successor agency commission to the for tuesday, september 17, 2019. welcome to members of the public. madam secretary, please call the first item. >> the first item of business is roll call. please respond when i call your name. [role call] the next order of business is item two, announcements. the next regularly scheduled commission meeting will be held on tuesday, october 1, 2019 at 1:00 pm (city hall, room 416). announcement of prohibition of

sound producing electronic devices during the meeting. please be advised that the ringing of and use of cell phones, pagers and similar soundproducing electronic devices are prohibited at this meeting. please be advised that the chair may order the removal from the meeting room of any person(s) responsible for the ringing of or use of a cell phone, pager, or other similar sound-producing electronic device. a member of the public has three minutes to make pertinent public comments on each item unless the commission adopts a shorter time frame on any item. strongly recommended that members of the public who wish to address the commission fill out a speaker card and submit a card to the commission secretary. no reportable actions. the next order of business is item four, matters of unfinished business. there are no matters of unfinished business.

the next order of business is item five, matters of new business consisting of consent and regular agenda. approval of minutes from the regular meeting of july 16, and august 6, 2019. >> do we have any speaker cards? >> no for this item. >> closed public comment. hello commissioners, do we have any comments or edits to the minutes? >> no. >> of july 16, and august 6? no. may i have a motion? >> yes, i move that the minutes be accepted. >> the motion has been made by commissioner scott seconded by president bustos. [role call]

>> the consent agenda is adopted. madam secretary can you call the next item. >> the next order of business is regular agenda item 5b. authorizing a fourth grant disbursement agreement with the mexican museum, a california non-profit corporation, and 706 mission street co llc, a delaware limited liability company, in an amount not to exceed $1,000,000, for tenant improvements for a new museum facility at the 706 mission street project, pursuant to a december 14, 2010 grant agreement between the museum and the successor agency; former yerba buena center project area (discussion and action)(resolution no. 24-2019) madam director? >> thank you.

this item before you is a request for disbursement, since the approval of the grant agreement, we have had three disbursements, and this will be the fourth. the crest -- the request before you for a million dollars to assist with the partial funding for the museum. with that, we have representatives here. >> thank you. good afternoon. i am develop services manager, i am here before you today to present a grant funding request. with me, are representatives from both the mexican museum and 706 mission street company. the developer for the 706

mission project. andrew kluger who is the chair of the board of directors of the mexican museum and market for our from 706 mission street, he is a project manager. i will provide a brief overview of the project, and the current grant disbursement request and then turn it over for discussion. as you know -- there we go, the project is located in in yerba buena center. which the agency helped assemble and develop over the years into a the cultural district that you know today. the last remaining undeveloped parcel is the mexican museum site. that is shown here on central block one. here is an an aerial view. and reggie 706 mission street site, which combines it with a building that was purchased by millennium partners. there is a long trajectory to

the history of this project. in 2013, ocii entered into a purchase and sale agreement with millennium for a mixed use project on that combined site. the project started construction in 2016. in overview, the develop a program for this project includes 190 units of condominiums, and a 480-foot tower. the build out of the korn shell of about a 48,000 square-foot museum space and the four floors. the developer is responsible for building that shell and transferring it to the city. also, part of the project is historical preservation of the aaronson building on the ownership and operation of the garage. you see renderings of the project.

as i mentioned, this is the last project and fulfillment of the yerba buena cultural district. we contributed the land and the garage. the developer provide significant community benefits, including the construction of the shell of this museum space. when it is completed, it will be deeded over to the city and the city will lease it to the museum. the mexican museum will be responsible for the design, and construction of tenant improvements. ocii has approximately 7.1 million available to fund those. the balance will be the responsibility of the museum there is a recent photo showing construction of the tower. in terms of status today. the construction completion is anticipated in 2020 with initial delivery of the residential condominium units in approximately april or may of this year, and delivery of the museum space to the city, in the

summer of 2020. in terms of the public art. when the project was approved it was approved by the city's planning department and it had to meet the requirements under the planning code including article four which was the provision of either on-site public art, or a contribution. the developer and the museum jointly proposed that the public art fee be applied to a façade screen. which was a unique public artwork worth roughly $3 million. here's a rendering of the façade screen. it basically wraps the four-story condominium. that brings us to the grant request today. the former agency of the museum

entered into a grant agreement, in 2,010 to help fund museums portions of its cost for tenants portions of this mixed use project within the 706 mission street project. the total grant agreement arouns $10.5 million, 2.78 has been disbursed for predevelopment costs to date, approximately 7.8 [of that the current request would utilize at 1 million to fund the museum's portion of the façade screen. the grant agreement itself has a ten year term and expires in december of 2020. the joint request that is before you today would be to access funds for the museum's portion of the façade screen. in light of the fact that the developer has taken on the obligation for the design fabrication and construction of the façade screen, the proposed

grant disbursement agreement would disperse 1 million grant funds directly to the developer, on behalf of the museum pursuant to the budget contained in the disbursement agreement. the final budget for the total cost of the façade screen approximately 3.6 million. the developer would be contributing their public art fee, plus some cost allowance savings for approximately $2.6 million and the museum would contribute the remaining amount of $1 million due to the grant disbursement agreement. the grant agreement -- itself includes provisions related to compliance with the policies and programs, including the small business enterprise program. which both the museum and the developer are complying with. they have been working closely with our contact compliance team to date.

the approval of the fourth grant disbursement agreement would be in compliance of the 2,010 grant agreement. the proposed use of funds is consistent with the grant, and the fourth disbursement agreement would include or does include a budget and the roles and responsibilities of each party and the mechanisms for disbursement and compliance. if the commission approves this request the parties will move forward to complete the façade screen and disburse the million dollars in funds by the summer, june 2020. this concludes the presentation. thanks for your time and we are available to answer any questions. thank you. >> thank you. madam secretary do we have any cards? >> yes, we have oscar james. >> good afternoon commissioners, director.

my name is oscar james, i'm a native resident of hunters point, san francisco california. when this proposal was first brought to the redeveloping agency, in 2010, it seems like it was longer than that. ramon was one of the commissioners that was sitting up there at that particular time. we had other commissioners sitting up there, at the same time. there was a lot of people that did not want this to come to fruition. i stated then, and i state it now this city should allow any any race, religion, arts commission if they desire to have arts commission and the city and county of san francisco. it was a big fight about some of

the commissioners did not want it. it did pass. this city, san francisco is built on the mexican-americans, in the city and county of san francisco. this country as a whole, before the mexican war, before the alamo, all of this was mexican territory. they have a right to have a museum here, in san francisco. the only thing i ask for them to do is give some of the history of san francisco what it means to the whole united states. what they have done here in san francisco. all of those people trying to come back to california, the mexican-americans, they deserve to have the right to be here this is their country first. i don't care what kind of war takes place, where you move people out, what have you. this is their land. you have a lot of mexican-americans who built mission dolores.

the country did not start in 1776, it was way before 1776, and they were here. i would like for them to give the history of the bay area, the fights that they have done in san francisco, how they made san francisco, san francisco. i am just glad that this is happening. to me it is taking too long. i give credit to the mexican-american people. god bless you all. >> thank you. no more speaker cards. >> thank you. public comment is closed. i turned to my we have any questions for staff? >> have no questions, just the comments that i am thankful for the work that you have done, and the plans that you have going forward. i totally agree with mr. oscar james, and i am thankful for

hilda scott. thank you for your report. i approve. >> this is a motion? >> yes, i would like to move that we authorize a fourth grant disbursement agreement with the mexican museum. >> have a question, is there a second? the chair booster is a second. i have a question, i didn't see in the packet about the small business participation. i think the numbers are impressive. i would like to know who the professional services providers are? >> i am the contract contract supervisor with ocii. the project started off with a consultant team of about 12 consulting firms with a

participation of 66.8%. there was a joint venture with a/d architecture. i do want to note, however, because of the duration of time, and changes in some of the firms has now been merged with harkins and wales. the joint venture is no longer in effect. we have been, in recent conversations with the mexican museum their attorney, in terms of looking at the replacement. what has been brought forth to us as a hispanic firm, as a replacement for the architect. we expect that the participation will remain above 50%. >> thank you. on construction -- i guess i am

reading 22.9, is that accurate? >> that is correct. this is the construction of the tower itself, not the mexican museum. the museum itself will be putting forth bids when the leaseholds aren't contemplated. >> okay. you have a comment as to why it is 22.9%? it seems kind of low -- is it just because of the nature of the work? >> unfortunately it has to do a lot with the tower constructions that we have talked about in recent times. just the magnitude of work, and the different type of work with respect to type one constructi construction. the participation of small businesses, while there are quite a number of small businesses, their level of participation is not a 50%.

approximately 30 small businesses that are participating. the largest package that i see, in terms of dollar amounts is about $7.5 million. >> i would like to have a report, not at this time, typically the kind we receive f -- with our packages, and the details. thank you. >> the item has been moved by commissioner scott and seconded by chair bustos. [role call] >> the item has been approved. thank you. please call the next item. >> the next order of business is agenda item five c.

workshop on the amendment to the recognized obligation payment schedule for january 1, 2020 to june 30, 2020 including the administrative budget for the successor agency and supporting documentation. madam director? >> thank you. the item before you is an amendment to the 19-20. back in january we had held a workshop, for the commission, as well as a workshop on approval for submittal to the department of finance, by february 1. we did submit, but we got pushed back in terms of specific requests related to our pledge agreements. when we do estimates, we had allowed through the recognition of the payment schedule for the controller to transfer actual receipts.

the response back to us in approving, they gave us feedback that that is not allowed if we had to approve drop -- it does not allow us to construct the controller to disburse to the agency over what was approved. what we are proposing to do today, is have the commission hear the item, which is subject to oversight approval and ask that we make to public finance based on information, from the controller, under the certificate of assessed valuation that shows an increase in property tax revenues generated in the three project areas beyond what was in the original approved draft. today we will be working through the specific line items and changes we are proposing with regards to the amendment. we are typically allowed to do this in september for submittal

in october. >> good afternoon. i am the financial reporting management analysis -- analysi analysis -- analyst for ocii. ab 26 requires the agency to create the roth, sb-107 requires a time period to amend for the 12 month period. no later than october 1. resubmitted to the department of finance on february 1. we received approval on may 17. on the ninth we presented the workshop to the oversight board. we are here before you present in the workshop on the amendments for the oversight board will be taking action on

the 23rd and submitting the amendment to the department of finance by the end of the month. this is just a reminder of the funding. we have the proceeds, reserve balances, other development payments on grants and we have the redevelopment property tax trust fund, add and non- admin. you can see the total requested increase is $53.24 million this is non- admin. again, when we submitted this earlier this year, we had used estimates. then we receive the finalize property tax role from the assessors in august of 2019. we are amending to updated figures. we receive had just used straight-line projections for our estimates. we had a number of projects come online. we've also built a model for more robust property tax

increment calculations and projections moving forward. again, the total increase is $53.24 million which brings the total to $461.45 million and this will be used for the construction of infrastructure and approved housing areas. this table shows the requested increase by our uses. we have 16.33 in our affordable housing, plus this will be used to fund projects and our pipeline for future years. we also have the remainder of the increase that will be used to reimburse developers for infrastructure already constructed in the art project areas. again, this is used to pay for ocii funded affordable housing.

here we are just showing this will be used to read -- [inaudible] we wanted to show the net impact to our different project areas. here we have a table showing the impact in mission bay. you can see the 34.38 is driving the requested increase, because of some major projects like the chase center and the uber office building that will be coming online. here we are showing the net impact, this is reflecting where we sent project completions and the infrastructure pledge line 102 will be transferred to support the terminal. here we have the increase to the shipyard, hunters point shipya

shipyard, it is a $.9 million increase, primarily for flex and adjustment for inflations. off of the gross tax incremental amount, 20% of the top goes for taxing entities, 20% goes to ocii housing, and the remainder this group we are requesting in our amendment will not adversely impact the tax amenities because the shares are being constant. there is no budget amendment required because it is only an increase in the revenues, and not the expenditures. budget amendments are only required for changes and expenditures. these funds will fall to fund balance and be programmed for our out years. this is just the next steps. the oversight board will take action on the item, we will submit our amendment on

september 30, that concludes the presentation. >> thank you. >> any speaker cards? >> we have one speaker card, oscar james. >> mr. james. he is waving hello, and goodbye, and waving his right -- so no more speaker cards. this is a workshop? there is no action. this is an opportunity for questions, or comments, reflections. [laughter] commissioners? any questions? >> thank you for your report.

>> the only question i have, just because it is a nagging question. this is essentially money in? >> yes. an increase in our revenues. >> not estimated to come in actual money that has been scheduled or has been collected? >> yes. we have collections from august, and it is an estimate for january. it is a more robust as that we had initially submitted. >> i think you address this, it's just a curiosity, our original projections were more on the conservative side, because, you know there is lot of things that can happen during the year. >> s, it was more on the preservative side -- conservative side. we did this in the fall of 2018. we would include, in our rough

notes, these are estimates, but anything over would be distributed to us, but because of the decision to keep it to what is actually requested, we revisited our assumptions about our estimates. >> okay. yeah, because obviously if we can capture as much as possible, it's better to have it on the front and. -- end. i think it is very impressive actually. when you look at this picture, every area has increased. i don't have any other questio questions. it is a no action item. thank you. please call the next item. >> the next order of business item no. 6, public comment on non-agenda items. members of the public may address the commission on matters that are within the commission jurisdiction and not on today's calendar. each speaker shall have up to three minutes to make pertinent public comments unless the commission adopts a shorter period. it is strongly recommended that

members of the public who wish to address the commission fill out a "speaker card" and submit the completed card to the commission secretary. i have one speaker card. oscar james. >> oscar james again. i don't want to take up too much of your time. what i wanted to speak on. we are having a meeting, thursday night, pertaining to the seawall that is going around the city. the city is going to do their part, both the navy has not committed to putting a seawall up in the shipyard. i want to bring that to you guys attention, that we need a seawall in hunters.shipyard. we would like for you guys to support it. the other thing i do, and i have done for years, things that really matter to me about hunters point, or any area, as far as that goes, i always get a

package. besides getting a package, i also go downstairs and i get a dvd. they stopped making dvds, and oscar james is not up to recording. i would like for you guys to have them downstairs, make dvds for the public, because i keep my record read when i come up here to speak, or someone comes up here to speak, i can go back to that dvd and see what was g gay, or what was nay. it is important to me to see what has been happening in these meetings but i've been coming to these meetings i came and there was no minorities in this commission. we flipped over desks, and everything else, to get you guys here in our communities. i am proud of what the outcome has came to be.

i need to have a record, just like if someone would say today, what happened in the hunters point shipyard, when he first closed, i was on the task force on what we wanted the city to come in and do it, the city didn't want to do anything in the hunters point shipyard. mr. soul, the director at that particular time, the only thing he wanted to do was bring a coal train into hunters point shipyard. we told them in a kind hunter's point way. hunter's point came up then with different programs, we wanted to go into hunter's point shipyar shipyards. the city decided they would sell that, the officers club and the hotel restaurant for young community developers, fenced off

out at partial e. i can go back to those tapes and say what was said back then. it is important to me to have a record of ocii, or the redeveloping agency and what you say, what you don't say. when i get out into the community, and the good lord give me another 70 years to be here, i can tell what happened here at this commission and hope some young people start coming to these meetings so they can take it further. what you are doing is important, and it is good. if we don't have a record of in communities of what is happeni happening, you know, no sense coming here. it is fruitless. i would ask, i would beg, even though they are doing a good job downstairs i would like to get a dvd from them. they told me how to go about on the thing, and tape it. like i say come on out into. my grandkids is into that, so

are my young kids, but i am not. thank you very much. >> no more speaker cards madam vice chair. >> thank you for the comment. please call the next item. >> the next order of business is item seven, report of the chair. >> i don't think the chair has a report. >> the next order of business is item eight, report of the executive director madam director? >> none at this time. i do want to acknowledge, since our last meeting, the chase center open and it was a huge success. they've had a few concerts be mitigated. i want to thank everyone for their work on item nine, commissioner questions are there

i have a follow-up question, i'm glad you brought up the there was two concerts saw that it was coming news reports only thing i noticed instead

item ten, no closed session items. the i don't think i need a motion 5:00 p.m. and the meetins

>> well, well, we have one of the most exciting projects in district 11 in over a decade. supervisor safai, for the past 10 years, no one has been able to get a housing project of this significance built in this community, and guess what? you made it happen. [applause.] >> 116 new units, 50% affordable units for family of four making up to $123,000 a year.

how incredible is that? this will provide housing for low income families and for foster care youth. i mean, this is how you get housing done in san francisco, working together, working in partnership with sammy and people who love. the fact is people who love this community and didn't have to go above and beyond in providing higher affordability on this project but wanted to do something to support the city and county of san francisco and what we are dealing with as it relates to our housing crisis. we are grateful for you and the community is here, and i also know your family is here. i am so excited. this will make a difference.

on top of that, that is not even all. 40% of the units that are built of the affordability housing will go to the people who live in this neighborhood first, neighborhood preference. the legislation that i worked on back in the day when i was on the board of supervisors. it is going to be used on this project so that we can make sure that the community who lives here, where they might be struggling to hold on to their unit and whatever capacity, they will have a real shot of being a part of this incredible new community. i am excited about this project. i am grateful to supervisor safai for his leadership. i can't wait to be here when we open the doors for people to walk in their new places, and it is absolutely amazing. the person who led this effort

to make this happen, who also did more than just help get this project through the process but also makes some zoning changes to make it possible to have as many units as we can on his site no other than supervisor safai. [applause.] >> supervisor safai: thank you, mayor breed. i feel like i am at a family reunion, but i did joke with sia and sammy i think we could put a runway strip here. this is the largest development in the history of this neighborhood in this community. there has never been any family affordable housing built in this community. i remember sitting with them a decade ago when they laid out

the vision of wanting to do something to give back to the city that they feel made their family anal -- and lifted them back up after going through a revolution in their country they. they came here with very little and they have worked 50 years to build what we are seeing happen today. this is truly a gift to the city and county of san francisco. this is not something that is required. this is completely private land, privately financed by a family that wanted to give back to the city. i want to say thank you to the family for everything and you will their children and siblings and relatives for everything they did to make this happen. it is truly a gift. this even out paces the giant's

ballpark development omission rock, which is 40% affordable on public land. 50% will below market rate. home-sf set the income. he said he wanted lower than what we laid out in the city. we tried to do the remaining 50% as rent control. sometimes the city gets in its way. i know they will continue to keep these rents affordable for this community. they are doing so much to give back to the city and county. we talked about this over a decade ago. we sat down with mayor lee before i became supervisor. he said he would prioritize this. the reason i bring that up is because this mayor has made not anything more of a priority than building housing. that was when we sat down with

mayor lee, that was in the middle of 2016. we are going to the end of 2019. even with everything that -- and i would get monday my phone would ring. every monday i would get the call from him and family members. we are still over three years into getting this project done. this was supposed to be one of the highest priority projects in the city and county of san francisco. i know this mayor is dedicated to finding a way to cut through the layers. when a family wants to give a gift to the city, we have to wait almost three and a half years to get this done. besides all of that, i want to shout out to crazio. she guided this every step of

the way on behalf of the mayor's office. my team was guiding this every step of the way. the planning department, the mayor's office of housing, city attorneys, all of the people working on behalf of the mayor. there is more to come, there are two more projects that are 100% affordable. she dedicated an additional $53 million in the budget. we break ground in october next year on two more projects. out of all of those together, almost 600 units, 65% will be affordable below market rate units in this community and affordable to the people living here. that is a big accomplishment. i am so lucky to have a partner in the mayor's office who prioritizes this community like no mayor has done in over 20

plus years. [applause.] i could go on and on. i will hand it over to the patriarch of the family, the mind that doesn't let any little thing get away from him, but he has to be that way. three and a half years, he has to be that way. someone was bragging about him the other day. he knows how to get projects built in san francisco. he really does. i am honored to have him as a friend and invest in this community. [applause.] >> thanks everyone. mayor, my good friend, supervisor and my family and everybody who is here. this wouldn't have happened without participation of everyone for this to happen.

he is right i call every monday morning. if i wouldn't have done it, it would have taken seven years. this happened in three and-a-half years. i want to tell a story about my life, how i am here. i came with my wonderful life about 40 years as an immigrant from iran. i have been here 1973 i came here to san francisco. i was a student and i fell in love with the city. i still love this city. i always said we have got to do something. whatever i have, i got it through hard work. being in this wonderful diversified city. we talked a lot about it. this came about in 2007 when there was a melt down and i was able to purchase these. that is when me and sammy, she

is an advocat of foster and homeless kids. this came about. i said maybe we can do something about it. finally here we are. thernext step is the foundationd get the super structure. i want to thank the wonderful mayor. i am so proud of you. you are a wonderful mayor. you are a great person. i want to tell my brother-in-law who designed this property, my kids and this is all my family. i love them all. it is great to be here. too many persons. (laughter).

it is a great thing. i am so blessed. i asked my wife to be by my side. if i make a mistake she will say stage right. i think i have done go, right? she gave me a list and said memorize this. i said i will do this. that is not me, i have to talk how i feel. that is how i do it, you know. [applause.] >> i want to thank the mayor's

office of housing. wonderful job. i forgot about my wonderful friend tom. he is a big support. thanks a lot. >> i lived in the mission neighborhood for seven years and before that the excel see your district. 20 years a resident of the city and county of san francisco.

i am the executive director of a local art space nonprofit that showcases work that relate to the latino community and i have been in this building for seven years and some of my neighbors have been here 30 year. we were notified from the landlord he was going to sell the building. when we realized it was happening it was no longer a thought for the landlord and i sort of had a moment of panic. i heard about the small sites program through my work with the mission economic agency and at met with folks from the mayor's housing program because they wanted to utilize the program.

we are dealing with families with different needs and capacities. conversations were had early in the morning because that is the only time that all the tenants were in the building and finally when we realized that meda did have the resources to buy the building we went on a letter writing campaign to the landlord and said to him we understand you want to sell your building, we understand what you are asking for and you are entitled to it, it's your land, but please work with us. what i love about ber nell height it represents the diversity that made me fall in love with san francisco. we have a lot of mom and pop shops and you can get all your resources within walking distance. my favorite air area of my homes

my little small patio where i can start my morning and have my coffee an is a sweet spot for me and i shop and dine on the 49 promotes local businesses and challenges residents to do shopping and dining within the 49 square miles of san francisco by supporting local services within neighborhood. we help san francisco remain unique, successful and vibrant. where will you shop and dine in the 49? san francisco owes the charm to the unique character of the neighborhood comer hall district. each corridor has its own personality. our neighborhoods are the engine

of the city. >> you are putting money and support back to the community you live in and you are helping small businesses grow. >> it is more environmentally friendly. >> shopping local is very important. i have had relationships with my local growers for 30 years. by shopping here and supporting us locally, you are also supporting the growers of the flowers, they are fresh and they have a price point that is not imported. it is really good for everybody. >> shopping locally is crucial. without that support, small business can't survive, and if we lose small business, that diversity goes away, and, you

know, it would be a shame to see that become a thing of the past. >> it is important to dine and shop locally. it allows us to maintain traditions. it makes the neighborhood. >> i think san francisco should shop local as much as they can. the retail marketplace is changes. we are trying to have people on the floor who can talk to you and help you with products you are interested in buying, and help you with exploration to try things you have never had before. >> the fish business, you think it is a piece of fish and fisherman. there are a lot of people working in the fish business, between wholesalers and fishermen and bait and tackle.

at the retail end, we about a lot of people and it is good for everybody. >> shopping and dining locally is so important to the community because it brings a tighter fabric to the community and allows the business owners to thrive in the community. we see more small businesses going away. we need to shop locally to keep the small business alive in san francisco. >> shop and dine in the 49 is a cool initiative. you can see the banners in the streets around town. it is great. anything that can showcase and legitimize small businesses is a wonderful thing.

>> chairman: good morning. the meeting will come to order. welcome to the thursday, september 19th meeting of the government audits and oversight. i'm supervisor gar gordon mar, the chair of this committee. >> excuse me.