we have formal approval from nabf that they will go to the next step. if this does not get approved, this will stay as an office building is what i think will happen. this is the latest cac analysis of offices. (off mic) we budgeted $29 a foot. if you look south of market overview, the current market for that space is $42.30. that is a 46% increase in rents. we are a unique building. it is a legal office building they could turn. around and lease that -- an annual increase in revenues of 5.3 millon. if we don't get this approval, i am a local developer. we don't have a project. that thing will stay as a big ugly building which i thoroughly dislike. in conclusion, prop c was designed for this. all bunch of us work hard to get through prop c. we are the first folks to come to you and we need this approval. we don't have a project if we don't have this approval. we will start this project in the next two weeks if we get the approval. that's it. 12 minutes. not a very good presentation, i apologize. >>: calling for public comment. i have one speaker card. p

nabf is proud to pick up this building and transform this on something more useful for the city. we hope that you move this project forward. thank you. >> president fong: anymore public comment? seeing none, public comment is closed. >> commissioner borden: all the paperwork that you provided us, i think what might be helpful for the future, having a lot of people maybe we can get in advance; it may be helpful to show the financial differential between the 12 percent and 15 percent so we have visualization in our minds what financially that means. in general we have always had this conversation about what is a cost to provide a below market rate unit. i don't know that we necessarily know what that cost is. you have always been an advocate for affordable housing. everyone understands why it is necessary and desirable to have this housing project versus an office project. is a great adaptive reuse. i regret that i was not here in the original hearing i'm happy to be part of the secondary hearing, the type of project that we would want to be supporting, especially since it looks li

we have formal approval from nabf that they will go to the next step. if this does not get approved, this will stay as an office building is what i think will happen. this is the latest cac analysis of offices. (off mic) we budgeted $29 a foot. if you look south of market overview, the current market for that space is $42.30. that is a 46% increase in rents. we are a unique building. it is a legal office building they could turn. around and lease that -- an annual increase

we have formal approval from nabf that they will go to the next step. if this does not get approved, this will stay as an office building is what i think will happen. this is the latest cac analysis

stepping back from this thing a little bit, when we were contacted by nabf well over to the years ago they issued a request for ideas basically about the project. we got extraordinarily involved. in fact, we submit it on our own dime a 700-page proposal to analyze the building. will look at this building from every possible way that you could look at it. one of the big ways that we looked at it was keeping it as an office building. it had been vacant since aaa moved out. our analysis on the office was that basically this would be a 29 dollar a foot analysis, based on talking with many of the office users and with talking with brokers and developers. here is a statement that we did all this. sorry for the % and by the way here is the plant budget which shows the 111 million dollar construction cost. what is happening the last year is that construction costs have gone up 21 million on this thing. rents have gone up somewhat. it has made up for most of the difference but even with the prop c approval we are just barely good profit. these big institutions use return on cost parameters; na