i have a summary of the post redevelopment budget for you today. i am trying to provide an overview of what has happened with the redevelopment agency, where its services and functions have been absorbed in the city, where its staff has been a guard in the city, but the work plan going forward looks like. i have with me today my colleagues tiffany from the city administrator's office and can draw from the city administrator's office, jennifer from the office of economic and workforce development, angie from the mayor's office of hounding. -- housing. i thought i would do a brief overview of the dissolution. most of you are aware of the broad strokes of that. talk about staffing changes and staffing loss. walk through the budget with you had an overview level, talk about tax increment, the gsa budget impacts and the general fund impact. finally, talking about the general fund supported activities that will be and absorbed into the general fund in this budget, rather than in the redevelopment agency's budget. as you remember, earlier this year, the s

i know earlier you had a discussion about redevelopment. five attorneys that are currently they're doing that work. we will be absorbing much of that work and have asked for two additional lawyers and a legal assistant to help us with that work. we also requested an attorney and a legal assistant to assist us with a dedicated consumer protection unit that we happen to believe will be cost effective and will pay for itself over the course of the entirety of this two-year budget cycle. as most of you are aware, we had a long history of doing affirmative litigation in the city attorney's office that has always been supported by the mayor's office and board of supervisors throughout the course of my tenure. it resulted from an effort started by my predecessor where we used affirmative litigation to receive tobacco money, to which extend we still get $50 million a year. i have continued that tradition and you have continue to support that, i'll be -- albeit subject to reductions over the past several years. last year, i back filled through some

the concept plant was adopted by the redevelopment commission a number of years ago.here will be a public process in the future led by the successor agency to the redevelopment agency to design this park. there are possibilities to form partnerships, possibly with recreation and parks regarding maintenance of the park in the future. living streets -- these are important. we call them a linear parks. these streets have major tracks chip -- major traffic functions for only a couple of hours a day. most of the time, they're fairly vacant that traffic use and starting with the redevelopment plan for the residential neighborhoods, we saw the opportunity to take a significant portion of the rights of way and convert them into parks that connect from market street to the residential neighborhoods and offer various amenities. this street was built just a few years ago by an adjacent developer. it is a beautiful addition to the downtown environment and augments the more formal parks system and offers green connections between the various open spaces and residences. lastly, osc

redevelopment statewide is in need of reform.an francisco is a model for redevelopment and it needs to stay intact. >> let's talk about the role of sports. are you happy with the plans for the america's cup? should the city spend money to keep the 49ers'? >> i am thrilled about the america's cup. it will not just be an economic boom that creates jobs and long- term economic development. it will help us shore up our aging and deterioration appears -- deteriorateing piers. it will help us clear of deferred maintenance. it will be a >>> promotion for the city. people will see the panoramic views of san francisco and want to come here. i would very much like to see forty-niners stay here. what that means, we will have to talk about it. i am not a big fan of massive public subsidies to sports teams. i think we should work hard to keep them here. >> we're almost out of time. are there any other issues or concerns we have not discussed? are there any other specific issues you plan to concentrate on throughout your turn? >> a couple that

the concept plant was adopted by the redevelopment commission a number of years ago.here will be a public process in the future led by the successor agency to the redevelopment agency to design this park. there are possibilities to form partnerships, possibly with recreation and parks regarding maintenance of the park in the future. living streets -- these are important. we call them a linear parks. these streets have major tracks

those are full scale redevelopment projects. hunter's view is in the first phase of construction at this point. that contract as well as griffith are both being managed by the redevelopment agency. so if you want contracting information and opportunity, you should look for that to come from the redevelopment agency. but those are housing authority projects, and so there is a 20% m.v.e./w.b.e. requirements project. you can contact our office to get information about them, and we can connect you to the right folks at redevelopment to make sure you are aware of the opportunities that are coming up. additionally we have modernization and rehab contracts for the other sites that are not going through redevelopment but have some modernization needs. you can contact our office. i don't have any flyers or anything, but you can call us at 715-3280, and we can add you to the list when we solicit companies to do some of the rehab work at our sites. we have over 50 sites in france. we have a number of activitying we do, from roofing repair,

we have been managing the passat improvement through the redevelopment agency. has been general fund it and it's a program we work directly with businesses on making sure -- it has been our department that has overseen with redevelopment money that has overseen the work of that because we work so closely with merchants and we would continue to do that. supervisor chu: thank you. i think many of us are very supportive of the invest in the neighborhoods of goals and objectives. i think for areas that do not typically receive support, it is very exciting to see that this would roll out to outlying areas as well, whether it is a supervisor avalos' district or mine. i am wondering if, as a follow up, you might be able to share more affirmation on this new invest in the neighborhoods perspective? we have bits and pieces, but i want to make sure we're not doing the same thing we did before. i think when we last talked about the revolving loan funds and about how many different programs we have in all different departments that there were so many programs, so want to ma

as you know, the redevelopment agency know, the redevelopment agency went away on july 1st.we are truly excited about the opportunity to keep south beach harbor and to maintain that. it is one of the best, if not the best harbors in southern california that is the good news. the tough news is we have some real financial challenges ahead of us. we are still learning day-to- day. we have had more interest in the last few weeks then we have ever had. but we have operational books calling for the fiscal year 2012-2013 budget would propose further reductions and expenses. the harbor anticipates a deficit of $90,000 this coming year. that isnn ++ are one fte short of where we were prior to the takeover. they are making improvements to south beach pier 40. this money is not budgeted at this point. there is capital improvement funding taking place. the harbor is about 25 years old. it has about a 50-year life span which means it will increase long-term capital needs. at the last meeting, commissioners talked about the light speed transmission to engage with the community to discuss

i want to thank our redevelopment partners and d.p.w. and sfmta and all of our public agency partners for their working together because this does really create that collaboration that is absolutely needed. but there is always someone who i will always cherish for a long, long, long time and certainly for the rest of my life. you know, leader pelosi has been there from the start. you know, we have named something for her as a complement for 25 years. but i'll tell you, that's just going -- sfu you went to any other part of the city whether it is presidio, mission bay, you could easily name another drive there with everybody's support for her because she has been everywhere with us. mission bay did not happen overnight. it required sustained, long determination and commitment action and who has been there frr for all day one and has never ever lessened her commitment to this? that has been leader pelosi. i just want to take this opportunity to thank you, leader, for being with us, not just today, not just for this announcement. i know we'

for the redevelopment and the housing authority. until then, if anyone knows about western editions, it is circulated. they did not make it in the but -- nip it in the bud, the housing for affordable low- income families are not at that stage that the law requires. i am not making something up of the top of my head, this is documented proof. and the the law of the state of california means declaration of public policy. if we are going to move forward with the development in this community, we want to do it by the book. [applause] >> we had a couple questions that he had asked. with regards to the housing authority, dominica? >> so the -- first, the housing authority has 20% -- i'm sorry. the housing authority has 20% contracting requirement. 20% will be awarded to minority business enterprises. that is the rule of the housing authority goes by. as far as the last question that you asked, the housing authority's unit serving low- income residents. those that we build, operate, and maintain serve those populations. in addition to that

this redevelopment not only helps fund the new transit center, it brings a new neighborhood south ofarket street to life. once that temporary terminal closes, the site will be transformed into a 1 acre park and 762 new residential units by the resident -- by the redevelopment agency. this park will be an open community space for the new trends bay neighborhood. people can play frisbee and walk their dog. this visionary transportation and housing project will transform a downtown area opened up by the removal of the embarcadero trade route and return the san francisco bay area and the state of california to a culture of mass commuting. the new transit center is five levels. >> the morning, commissioners. i'm with e transit center district plan. i will take you through an overview of the plan itself. you've just seen a beautiful video and i will start with a brief background on how we got to where we are today. the planning director remarked a little bit on history with the downtown plan. the plan was adopted in 1985 and is a renowned milestone for shaping the downtown tselinograd toda

most of the time, they're fairly vacant that traffic use and starting with the redevelopment plan for the residential neighborhoods, we saw the opportunity to take a significant portion of the rights of way and convert them into parks that connect from market street to the residential neighborhoods and offer various amenities. this street was built just a few years ago by an adjacent developer. it is a beautiful addition to the downtown environment and augments the more formal parks system and offers green connections between the various open spaces and residences. lastly, oscar park -- these are adjacent spaces being designed right now, being led by the successor agency to the redevelopment agency. combined, it is about 4 acres. most of this space is owned by caltrans and the redevelopment agency ender the existing free e ramps that connect the transit center to the bay bridge. but there are some challenges to making it a desirable part but there is an excellent design team and robust process that has created a comprehensive vision that features many active and passive the amenities.

what do you think of that plan and the value of redevelopment agencies? >> redevelopment agencies have been very successful. golden gateway, treasure island, bayview. there is no question about it. they have been very beneficial. that said, i have a tremendous amount of respect for the very difficult position governor brown finds himself in. i am not as familiar with the state budget as the local budget. i think the state budget to any casual observer is absolutely broken. it will take radical changes like what the governor is proposing. when the state government gets fixed, whether it is redevelopment or some other local important piece, san francisco will get hurt. there is no way to fix that problem without hurting san francisco and every other city and county in the state. the state has been far outspending what it should. it will come home to roost in the next couple of years. >> was talk about the city's economic development and whether we are on the right track. if we are not, let's talk about the right steps to take. >> i think we're on the right

but governor brown has proposed -- >> governor brown has proposed redevelopment agencies. hawhat are your thoughts on tha? supervisor chu: we currently have plans that really are dependent on having the development agencies and the financing mechanisms that helped it. i think that the redevelopment agency plays a very strong role in the development in some of our more blighted areas. to completely do away with the redevelopment agency would be a significant shock and change to the system, and i think we really need to understand what that will be before it should happen. i am a strong believer that the redevelopment agency played a strong will also in the creation of affordable housing in this city. to the extent that that money is taken away and we are not able to accomplish some of those goals with the financing mechanism, it would be a big step back for the city. >> what are your thoughts on the city's economic development? are we on the right track? what would you like to change about the city's approach to developing the economy? supervisor chu: in some aspects, our e

when the state passed its budget and dissolved the redevelopment agency, i can guarantee you having been an aide to the board of supervisors, the intent of the state was not to blow a hole in the county's budget. there must be something missing from this equation. that $800,000 either is stuck at the state court is coming to the city or it is coming here and we are not getting credit for it. that is the second thing. the assessment that was done was faulty and did not take into other south bay marine as. my personal boats is an oyster point. we are very open to solutions. sorry for speaking so fast. three minutes those in a real hurry. for the boats that do not go out, the port is now in the small craft harbors in business, a tremendous revenue generating plant would be to be able to -- the folks that want to be a part of the south beach harbor, make it available, use some underutilized port facility to pull the boats out. at a western point, there is an additional charge if you want to live aboard your boat. the last thing, a sliding scale. this is a publicly owned facility. a sliding s

the first is redevelopment tax increment. this is property taxes currently pledged to paying housing bonds that were issued to support affordable housing. with the dissolution of redevelopment, as those bonds have retired, the revenue that is paying that debt service will flow to the general fund, increase general fund revenues, and we are using that increase in general fund revenue as it grows to calculate the size of the housing trust fund, a component of the housing trust fund. we are also including in our allocation 25% of that same revenue stream that supports infrastructure bonds. the infrastructure bonds and housing bonds, because, and i will talk about the program at a component of the housing trust fund directed that infrastructure improvement, but because we have that piece as part of the housing trust fund, we are also using in our calculation an assumption about increased revenue to the general fund based on current tax increment that is pledged toward infrastructure bonds. in addition, the board of supervisors ha

secondly, the city is absorbing the entire budget of the redevelopment agency into our own budget. you will see that the majority of the increase, as well as some of the increase in the mayor's budget office, is due to that absorption of that function. we are also increasing the costs related to capital services, related to the implementation of federal health care reform, and other growth in the enterprise apartment. notably the puc and airport. in general, the city's proposed two year budget has service reductions, which i think you are aware of. it also includes public safety hiring for police and fire. the police department in one class with the fire department in each year, we include the quota for nonprofit organizations in this city, as well as the $95 million in general fund capital for the next few years. i would like to point out that our reserve position is strong and improving in this budget. our general reserve, which has historically been $25 million, annually rose to 32 million in this budget. in the first year of the budget we have included a state reserve and in th

. >> 1, 3, and 5 have been redeveloped into a combination of office space and restaurants. they are in the process of leasing those out and it is also listed on the national register of historic places being a sailor, you are familiar with the public wants that sits behind us. >> usually, i sailed out of south harbor pier 40. there are very few places along the whole bay waterfront or there is public access. right up the street at pier 1 1/2 is a brand new public launch or you can pull in a boat up to 40 feet, spend hours, and it is a wonderful thing. whoever did that, thank you. >> it is a public/private partnership that was done with the port redevelopment. we hope to be putting in more of that type of facility up and down the waterfront as part of a collection of smaller facilities that may someday be used by a water taxi. >> excellent. is there any major change or vision for the plaza behind here? >> we're just starting to look at phase two of the downtown ferry terminal, looking at how we will accommodate three times as many ferry passengers. we will look at this plaza

affordable housing at a time when federal assistance for housing has been severely cut and the redevelopment agency, as the major sponsor for funding housing in the city, has been dissolved. let's now look at the five to nine unit project. when the smaller projects became subject to the inclusion reprogram in 2006, since then, there have only been seven project entitled, of which, only one has been completed. these projects, should they move forward under their requirement, would bring $1.4 million and provide three onside affordable units. the implications -- now, i will talk about the implications of the proposed ordinance. the proposed ordinance is being reported into the housing trust fund after a collaborative process through which more than 50 stakeholders of housing came to contact us. these stakeholders include developers, affordable housing advocates, bankers, lenders, city agencies, and elected officials, all of which are not in support of the housing trust fund. staff finds that the impact of the proposed ordinance are insignificant for the following reason -- first, the residenti

most of this space is owned by caltrans and the redevelopment agency ender the existing free e ramps that connect the transit center to the bay bridge. but there are some challenges to making it a desirable part but there is an excellent design team and robust process that has created a comprehensive vision that features many active and passive the amenities. that includes children's play areas and cafes. you can see an image up there. the southern of leg south of folsom street will feature a dog run and and other landscaped areas to really link the residential neighborhoods to the transit center. >> i know we have one more item on the council -- on the calendar and i bumped your item. on the revenue side, we may want to skip that portion and go to the shadow issue just to prop us for what is coming down the line. >> i could make a couple of points on the funding. the plan has a substantial funding program, one is a new set of impact fees and the other is a new set of taxes which would generate close to $600 million over 25 years for public infrastructure. that includes a new and ope

ultimately, our director can jump in as appropriate, but the revenue source is property tax within redevelopment areas that is currently directed toward servicing debt, and that debt was issued in order to generate economic activity and provide infrastructure and build housing. that is the source. it is just property tax. commissioner antonini: i understand. property-tax continues and will only get higher as the parties are sold. it is not really lengthening the time of the bond but rather using the tax increment which remains, but instead of it having to be used specifically in the project area, it can now be used for the housing trust fund. >> that is correct. commissioner antonini: then there is the issue about the gross receipts tax, which is a separate issue that will be part of the ballot measure, but i believe i heard a figure of $13 million is the part that would have to come out of the gross receipts. at least i guess that is the initial figure. is that a figure that would grow as time went on? >> that is correct. it is not linked to the housing trust fund, the gross receipts tax measur

and it will feel kind of steamy out there with afternoon showers and thunderstorms redeveloping. early showers and we'll see if we get a few more developing later today. >> let's check in with julie wright. i hope you weren't listening when tucker was noticing the days are getting shorter. >> what? what? >> i know that means less sunshine for you. >> did you hear something. i death penalty hear anything. all right. on the roads right now, you will find wet pavement which is what we're waking up to. in some place, it is coming down pretty good. allow extra time out here on the roads.

i'm skeptical of redevelopment overall. it led in the 1950's and 1960's to the devastation and destruction of many low-income neighborhoods. it was often done without a heart and was very disruptive, displacement in fact, especially of lower income and working [inaudible] market is one place where they used to be families living there that have been displaced by high-rise hotels and other types of structures, but i think as redevelopment reform moves forward, we need to be sensitive to ensuring that san francisco can protect its projects that preserve decent housing and better housing for the lowest income population. i think the governor's proposal is very dangerous and may impact treasure island development, so we have to watch very carefully, but i'm skeptical. >> what are your thoughts on the city's economic development? are we on the right track? what would you like to change about the city's approach to developing economies? >> in the chair of the land use committee this year, and i was vice chair last year with our f