and the housing authority the mou establishes how the cash flow are made to the ocii and others forns it includes the subsidies provide for each phases and they'll be lending the phase 13 all repayments go to the mc d as the housing per phase the lessor of the ground lease cash will be paid for rent and the rest for repayment of the ocii and other loans as with hunter's view the portion will be held night completion to be used as a source of development funding for alice griffith that have a shortfall so that wraps up my discussion of m.d. a i want to include a reminder in my deadline as mentioned we must have phases one and two completed we're on track and the remaining phase as 3 we're full board on track to start that in october of next year that will allow to be complete in advance of the 2015 deadline to produce those units i also include a picture of the current conditions of affordable care act so this is rendering of the first two phases you can see where we're going and finally, i want to give you an idea of what's cop this december for the design approval for phase 3 and n

the fee for the affordable housing rather than having this on site the supervisor wants to thank the ocii staff for in their expertise in understanding what was actually be a fair fee out for this project i think they'll be more presentation about this in detail i understand it is 2.5 times more than the fee that is required in the inclusionary housing program it would be used only for the creation of the transbay that's an important consideration this be within the location and in close approximate to the primary project i understand this will be used to subsidize 64 stand-alone vs. the 11 on site units that were not originally proposed the variation has broad support within the housing community and the constituency recognized the building type and housing project while this is indeed a unique circumstance it is the 181 fremont area says they can participate in the area and become actually members downtown so again, i ask for your support. >> thank you. >> once again kevin with the planning staff just for a little bit of project background in december of 2012 the commission approved the

units for example, the fee can be used to fund housing on transbay two metabolics from 181 fremont ocii is on track to meet the affordable housing of 45 percent of approximately 12 hundred utilities i units in the project area many of which are in construction and again, i want to reiterate that the project sponsor has been specialist from the outset and the agreement includes the prerogatives is that require the property owner to vote in favor of the cf d and pay a fee that is due if it were not formed the certificate of occupancy again, the ocii stiff recommends approval and if you have any questions, we'll be happy to answer them. >> thank you. i of the hoping you could articulate more sorry your point about the hoa fees i know that's a policy conversation we've had before but borrow the members of the public that don't understand the full policy reasoning behind that one question i know there's office asked it's to the only for 181 fremont but other him or her in the south beach we're running across folks that are packing their mortgages but having difficulties with our hoa's could

agreed to contribute a fee for more affordable housing in the transbay area i want to recognize our ocii director tiffany bohe along with her former person michael for their work and council on the unique circumstances in transbay district i'm sure you're aware of this is an redevelopment area plan we've been lauded by the state to wind down under our state agreement we've committed to 35 percent of affordable housing which is an incredible goal four our thank you it meet because of the building of transit that makes it a smart growth neighborhood they've worked with our office to push to have the highest fee available and i want to recognize i know that mayor's office of housing director olsen lee also advised us in the process under this proposal 181 fremont pays a fee differing from the other fees judge context if 181 were able to oven their unit they'll pace $85 million they ocii has negotiated this developer will now pay $13.8.03 times more than what they would have paid only for the creation of affordable housing within the transbay project area to really counter some of the concer

with the attachments and the body were in our staff report i want to acknowledge and introduce the ocii staff to go into the detail. >> okay. thank you. >> good afternoon, commissioners i'm courtney with the infrastructure and investment area as scott and kevin mentioned on october 10th this year the community infrastructure department granted the redevelopment plan and made findings of the extraordinary circumstances an enforcement of the on site will result in a difficulty and unnecessary limitations in summary summary this is unique it has a residential offices in the planned area and the smallest area of residential projects and their located on the upper 15 floors of the 7 foot twenty-four hour in this case, the small units at the on top of a high tower has undie hard of hearing for a number of reasons first per state law the hoa fees can't be adjusted for the income level of a homeowner second while the city and ocii have programs that sure the affordability of units there's no programs for assisting the hoa fees over time and third hoa members may approve the fees without the sup

from the other fees judge context if 181 were able to oven their unit they'll pace $85 million they ocii has negotiated this developer will now pay $13.8.03 times more than what they would have paid only for the creation of affordable housing within the transbay project area to really counter some of the concerns b around segregation we're assuring those below market rate will happen in the neighborhood two blocks away from fremont vs. the 11 units on site and the 65 new units will be available 60 percent ami and that will again only to 10 units in the building allowing for deeper affordable and 181 fremont will pay fees and the communities benefit district assessment and has supported the formation of the district and not participate in my effort to propose or litigate we will appreciate they'll help to build our term we're proposing moechgsz which we've circulated to our offices and i'll present later and this project is already under construction but will provide 12 hundred union jobs and have local hiring agreement and meeting their goals for local hire they've broad support and the

subsidy and therefore, if ocii were to use the 13.85 payment, with the transbay block 8, the payment could subsidize over 69 affordable units which is a net increase of 68 units over the 11 that would be generated by the project on site. and at the hearing on the 12th, the commission expressed concerns about whether approving this variation would set a precedent for other housing projects. it is unlikely because the project is so unique, it is the only approved or proposed mixed use of housing development in the entire area and it has the smallest number of residential units of any high-rise building in the area and residential units are located on the upper 15 floors of the 52-story tower and then if we look outside of the project area, they already have the option of what the transbay cannot currently do. and then, finally, the next steps, the approval today is subject to approval by the board of supervisors, in its capacity as the legislative body for ocii, and because it is constitutes a change to the program, the planning commission and the board of supervisors will be consideri

credit and the depth and quality the panel gave strong consideration to ociis goals with respect to 1950 c and the financing panel makes the final represents to the b bonds the managing under brirg and the steve nicole's company at this point, i'd like to introduce the representatives of those firms from pipeer the managing director and from steve we have the senior vice president and from stevenson london i didn't odom for the series 2014 c bonds baxter and berry was chosen as managing underwriter and dean as co-managers here today representing those firms are vincent and baksz take care ma collateral and our senior vp and the senior advisor our next steps in the issuance have november 18th will be the final commission acts and the commission will consider approval of the preliminary official statement and that will the final action prior to the bond and also there will be a meeting of finance authority that will approve the redeems agreements the bonds currently outstanding were issued by that authority so it will be an agreement with the financing authority and the commission or

is in charge. >> ocii is gathering the information the mou basically puts the responsibility on all parties to do theirs part bus as the gatherers of the information obviously we'll be in the position to make sure we're doing the best we can to exceed our goals and is there a plan in place or will happen later and there's plan that is documented but we've been meeting as a group for several months in advance of the mou so we're going to work tote for folks being prepared for the infrastructure and the vertical so we're meeting as a group including the contractors and the developers for into infrastructure and vertical at least a monthly basis. >> and we'll be getting updates for the plan. >> brown we'll be before you in the coming years as the phases progress you'll be getting updates with the presentations. >> okay. i had a few questions but commissioner mondejar covered two of them on the relocation of the residents can you tell me a little bit more of the relocation of the service providers it sound like some are going to be temporarily displaced and some permanently. >> one of t

leap for the plan that is in the planning code and require the developer to pay the housing fee to ocii and the agreement also requires the developer to participate in the community facility's district that was authorized by the board of supervisors, the items are schedule for the planning commission on october 16th, and the land use committee of the board of supervisors on october 20th. >> and that concludes my presentation, and we have representatives from the developer, jay, paul here as well as myself and maria available for any questions that you might have. >> thank you. >> thank you. >> madam secretary, do we have any speaker cards? >> we have two speaker cards. >> april, and marty. >> good morning, commissioners, my name is april and i am the legislative aid for supervisor jane kim whose district is a district for 181 freemont and i am here to experience our support for this variation from the transbay, redevelopment plan, in general, the supervisors supports on site affordability, and but that just something that is important to her that is related to mixed income neighborhoods

transbay area not 12k3wr5ig9 them and block 8 is located open fulsome between 1 and fremont street ocii has xuftd awning agreement with companies and tenderloin development corpse to build the project and transbay block 8 designed by obamacare m a this proposal will include more affordable housing than proposed with 67 hundred and six 3 unit in which one hundred and 77 are affordable to hourldz between 40 and 5060 percent of the area medium income it's low on the superdome the items being introduced will be heard alters ocii and planning i want to express my strong support and come back to the board of supervisors as we see sit on the proportion of the area plan this proposal will allows us to get more affordable housing and thus set an important precedent of setting a higher off site fee and demonstrates that the developer can and will pay higher fees to do off site with had it develops for affordable housing the rest i submit. >> thank you, supervisor kim supervisor mar. >> thank you embarcadero i want to join supervisor cohen in honor of brent from sacramento as a child growing up in

ocii is supportive of it. on october 10th our commission voted unanimously to approve a variation from the redevelopment plan to allow the developer to pay the $13.85 million fee in exchange for converting 11 of the on-site affordable housing units to market rate. on october 16th the planning commission unanimously approved an amendment to the 309 approval and conditionally approved the development agreement with the project sponsor. i also want to point out that in the development agreement the project sponsor has agreed to support the community facilities district and to vote in favor of it and even to pay a tax in lieu of the fee if the fee is not formed at the time of tco and this project sponsor has, in fact, been supportive of the csd from the very beginning. so, in the interest of time i'll conclude. i am available for questions as well as kevin guy and tiffany boeing aloe, the executive director of ocii. ~ >> colleagues, any questions to city staff? ~ bogey okay, seeing none, unless there are any other

a condominium we need the cc&r and homeowner association for our approval so as you guys know the ocii the equal opportunity program those in the shipyard and candle stick point by having contracting the work and hiring goal for these for the employment contract has a 50 percent goal for hiring the local residents the first for bay area residents and the small enterprise there is a 50 percent goal for contracting for first consideration of bay area on this vertical project it is moving well they've achieved 50 percent of which 32 percent from minority owned businesses and the total cost is $50 million which we think translated into 8 hundred jobs and the participation thus far is 83 percent it is high and 57 percent to women owned businesses and 73 to san francisco based businesses, of course, more opportunities for part of the construction phase before i conclude i want to give you a quick update with the phase as you can see we have over 5 hundred units with over one hundred of them being affordable approximately 2 hundred and 50 are under construction represented by the green shadin

the gray lines within that of the transbay plan, and zone one, which are the public parcels under ocii jurisdiction and it is indicated there, and sort of at the bottom of the plan area and then in zone two, are private parcels under the jurisdiction of the planning department and so within that boundary were rezoned through the center and district plan and they got significant height increases on several parcel and previously they topped out at 550 feet and now, multiple development parcel cans go up to 700 feet or above. and they also removed, the density limits which has allowed more development on parcel and as part of the adoption of the plan and the up zoning, the code was amended to require new impact fees and participation in this melarue district by the new development. and here is a closer out, more detailed view and you can see that the initial parcels, are shaded in there that are, the initial ones, and then, the, and they would vote on the cfd and that includes all of the publicly owned parcels and then all of the parcels that have already entitled projects, and have joini

. >> thank you very much i want to say nice to see you both recently on the ocii commission i see a lot of this stuff here i echo the comments made but i'll add a couple of things i definitely agree with the hoa discussion about the task force what is there to be done i don't know if there's another answer than the having enough affordable housing stock and in terms of the fee i don't think that cross the board the fees are a inclusionary fees their calculations leaves a lot of money on the table when we come back to the nexus study we should look at the fees by product type of and neighborhoods this is a tower that's built over office relatively a large residential unit and 2, 3, 4 downtown area that i think that's a totally different communication thereon the buildings we're seeing in the eastern neighborhoods maybe that's a discussion across the board where we're not leaving money on the table and fully support this project one thing that may not not clear from the memo maybe everyone got it the dollars that will be applied to the 69 will come out to the six 9 units so the ocii is ca

ocii is supportive of it. on october 10th our commission voted unanimously to approve a variation from the redevelopment plan to allow the developer to pay the $13.85 million fee in exchange for converting 11 of the on-site affordable housing units to market rate. on october 16th the planning commission unanimously approved an amendment

. >> it's actually everything but the moscone center it is everything that our ocii now owns outside of the premises of moscone north and south so in this case, the case of the permit to enter it involves the children's gardener and there's going to be a new potluck create by the moscone team as part of the project that will be happening that will involve ocii improvements and so they're to demolish some improvements and bring back new improvements as well as we own the property we need to get our okay. and that's one of them i got back from two weeks vacation i'm sorry but the next one is related to the children's garden as well. >> okay. please call the next item. >> the next order of business commissioners questions or comments ass. >> commissioners questions or matters that the commission wants to raise no. >> the next order of business closed session there's no closed session the next is adjournment. >> yes. we've adjourned motion by commissioner singh and unanimously endorsed by everyone approximately (clapping). >> ladies and gentlemen, welcome to the city of san francisco and

have started to receive the increment from those sold parcels and received our first payment from ocii earlier this summer, for parcel t. and the net tax increment is fully committed to tjpa under the various agreement and there are no further approvals and there are authorizations required for the revenue to flow for the project, and the total revenue that we expect to receive and this is a conservative number but over the 45-year life of the pledge is on the order of about 950 million dollars. and however, as we have previously discussed we do need a cash flow, and so it is a revenue for the early part of 2015, before we can draw down on the tifia loan and so we have been negotiating the financing solution, and we expect that it will be secured by the tax increment as well as some of tjpa real estate, of course, and we anticipate that we will be paying back the financing with the proceeds of the loan when we are able to draw down on that at the end of next year, and we have been working with usdot, cal trans, and ocii and the city and mtc, to make sure that all of the collateral can