as abag indeed abag is a regional planning agency with, quite frankly, limited powers and they have a healthy public finance unit and the authorization from the state to create assessment districts and so we're using them and they are competent and have done in many jurisdictions and, if you will, they are the experts on c.f.d.'s in the bay area. >> what is in it for them? >> i think they cover the administrative costs and get a certain percentage of every one of the transactions and they are not a profit making entity and covering the administrative co-s. and in mainry suburban jurisdictions and also the mid plaza c.f.d. was an abag and administered district and a c.f.d. on 690 market street it was abag created and managed. perhaps, i don't know, maybe the city attorney can clarify that mission bay might have been administered by abag, although i'm not sure. and so there are a couple of examples in the nine counties part of abag. >> and a financial role and like the umbrella organization but no other organizations and looking for increased entities and pushing us hard to assume the r

development stimulus part ii and contains two resolutions and a joint facilities agreement between abag and the city. as a resolution this, item is not required to come before you but it has been asked from the mayoro bring it before you to get your feedback and thoughts on the issue. the first entitled the area plan infrastructure finance committee introduced by supervisor maxwell would establish the finance committee to supervise a study to develop policy on the use of the i.f.d.'s in the newly adopted planning areas and the steps to take to establish an i.f.d. and supervise the formation of one pilot i.f.d. in rincon hill. the second resolution approving the formation of a c.f.d., community facilities district, and financing by abag. this resolution was introduced by mayor newsom and south korea duffy and with the issuance of a special tax bond for city impact fees and also approve the form of joint community facilities agreement and grant authority to city officials to implement that. so. i go through the department's analysis and recommendations, i would like to introduce michael y

the goal here is to create the process by which a project sponsor may go to abag with an application to create a starter district where we say this is a citywide district and there won't be overnight a giant district and we're giving permission for the project within the city boundaries to apply to create one of the mini assessment districts on their property. that is it. just their property. no one else's. and this will require just a vote of that property owner because unless there's 12 registered voters on the development site, which is usually not the case, there is no need for -- there is no public vote. it is a vote of the property owners. to be really specific, a developer that wants to finance their impact fees through this tool would apply to the abag to create one of the districts and go through a process with the abag finance authority for nonprofit corporations to eventually form a district and eventually sell bonds. i won't get into the details of that, but it's a six to nine month process basically with multiple hearings and multiple resolutions and a lot of the attorne

it just simply says to the abag board and all we're doing is opening a door, not taking people through. and the community facilities district is a special property tax assessment district. it increases the property tax in a given area. unlike the i.f.d. which keeps property taxes the same way and takes away an increment in the future, the c.f.d. increases the property tax overall, so that's an important distinction. and once this district has been established, bonds can also be issued from the c.f.d. and to pay for infrastructure today and those bonds are amortized or paid off over the life of the district and the districts can be from 20 to 30 years in length. the goal here is to create the process by which a project sponsor may go to abag with an application to create a starter district where we say this is a citywide district and there won't be overnight a giant district and we're giving permission for the project within the city boundaries to apply to create one of the mini assessment districts on their property. that is it. just their property. no one else's. and this will require

second resolution approving the formation of a c.f.d., community facilities district, and financing by abag. this resolution was introduced by mayor newsom and south korea duffy and with the issuance of a special tax bond for city impact fees and also approve the form of joint community facilities agreement and grant authority to city officials to implement that. so. i go through the department's analysis and recommendations, i would like to introduce michael ya yarney who will describe the intention behind the resolution and more of the specifics and technicalitieses about how the two districts would work. >> thank you.