Will be used and working the appropriate expert to build Site Specific website. Examples of the information on the website for brv, schedule of the park programming, activities that are open to the general public, information on how to sponsor an event, information how to book an event, similarly for pearl, it will contain information about Advertising Opportunities for the retailers, store hours, events, sales, and then for the tenants, an access, portal access to the work order system. Finally, it will also include links to colliers and p. R. I. Websites and youll be hearing from p. R. I. Later this morning. This needs to happen soon because meeting, already meeting with potential partners and add ties advertisers so we need a site to point them to for information. As we move through each month, this slide will change when contracts are completed. Last month we talked about the architect selected, but this is the Financial Information on, informing you of the competitive pricing. So m. B. H. , commenced work and are moving quickly on amtrak and greyhound. Apples to apples pricing comparison was based on a provision of that limited scope, plus a comparison of hourly rates. The second one is the general contractor. It is close to being completed. Because each individual construction job will be put out to bid by the general contractor, the Price Comparison is based on hourly rates, fees, general conditions over a twomonth period, with both the architect and the general contractor, the highest rated bidder in terms of quality was also the lowest bidder in terms of price. This is the contract that lincoln has in the pipeline. This slide will change as contracts are completed. The one in the pipeline right now is the waste and recycling vendor. This one is time sensitive because we need to complete it in order to start working out the logistics of the trash removal equipment in that it has a long lead time. This slide is familiar to you, its again this will change every month as the, as we get through the issuance of r. F. P. S. The one thing i want to highlight though, lincoln decided to extend the due dates on some of the first batch to november 16th for various reasons. Additionally, lincoln is rethinking its Small Business outreach at the tjap encouragement, so some of that is extending the dates a bit, to make sure we are doing the appropriate outreach. So with b. R. B. , the roof park, focus on a few points. As of yesterday, b. R. V. Has identified more than 130 potential sponsor partners. They have contacted more than half of them and have conducted a handful of tours. Of these, their experience is about onethird of them turn into actual partners and the list continues to grow every day. Some of the tours were in partnership with pearl, colliers and p. R. I. Im not going to broadcast the names but would be recognizable. Over the last month the communication between b. R. V. , pearl and colliers and p. R. I. , formally structured through monday afternoon transition meetings so that they can share information on the prospective sponsors and retail tenants. This has led the teams to conduct joint tours as warranted, so an example would be a Bank Interested in putting an a. T. M. At the Transit Center, this naturally lends itself to discussing sponsoring park programming, as well as placing ads on the digital screen. In parallel, b. R. V. Is refining the programming plan. Similar to colliers, detail planning follows the general vision. Five main areas of activation have been identified and segmented. They have been mapped. They have been measured. Each area was then further sliced into what b. R. V. Called nodes, and each has a main activity like arts and culture. This was followed by drafting a programming calendar that indicates activities all day and every day, and they have also drafted an equipment budget which we need to review and then decide how we are going to move forward. On pearl media, i find this one challenging to talk about. Their work is so very technical. I sat in a meeting yesterday where probably only comprehended about 50 of what was being discussed. Additionally, to b. R. V. And colliers, they have been conducting tours while wrapping up the sales package and they continue to spend a considerable amount of time on refining the content of the transit information as well as way finding and then making sure the equipment will work and i stated earlier that the expectation is that they will be ready to test in january. The notes on the slide are a few highlights, and i wanted to take this opportunity to recap where we have been and where we are going because we are at a juncture, moving into a different phase. Segmented into four phases to discuss with you. The first is develop, the second is prep, the third phase blast to the market and marketing, and then the fourth phase would be tenants. So just to remind everyone that we had a merchandising vision that was developed. The emphasis is on local with varying price points. The merchandising plan was completed and approved. This entailed the general layout of the spaces and the types of retailers conducive to those spaces. For example, on the first floor, conducive to grab and go. The second floor, conducive to destination businesses. Phase two prep, so we got the approval for the lease template, the letter of intent. Collier did many tours doing what are called test fits. They bring a business to the center and ask that business whats going to work and whats not going to work, to drill down into the details of the merchandising plan. All the spaces were professionally measured by the architect, and then line drawings, its a one dimensional view of the space itself so the prospective tenant can envision what its going to look like. Creation of a website, colliers, Transit Center retail was activated, gone through two iterations, so more information now than there was a couple weeks ago. There was creation of a video, thats also on the website. Also development of a work flow process to inform the tenant of the steps involved. Rent parameters, term, tenant improvements, going to talk about later, and the creation of a marketing plan and budget. So now we are in what i called phase three, which is blast to the market and marketing. What that means is that all the prep work is done and now we are outreaching, or colliers is outreaching to the various markets, the brokerage community, the 85 inquiries in the pipeline, they have to go back and reach out to those. Online newspaper publications for advertising. So whats next . Whats next is tenants. So, in the expectation, we will start to see this soon, generation of lease deals and ongoing conversations with the tjpa and with the board, as deals and inquiries solidify. The expectation starting next month, specific details on that activity in the report through the executive director. This you have seen before, i dont have a change on this slide. And some of this was discussed earlier. The transit aspect. So the lease for the bus plaza is in progress. Completion was slowed with the decision made for ssmta to take the entire plaza and sublease from a. C. Transit, on the earlier timeline we showed a completion in about the january time frame. So a. C. Transit is now working directly with sfmta for a sublease on the bus deck, along with greyhound and amtrak. Greyhound has a draft sublease, amtrak has not, and there is a call this afternoon to figure out whats going on with that. So for the second floor last month, reported the greyhound lease was completed. We are working with amtrak, they are moving at a slower pace with the initial comments due back to the tjpa this month, and also completion of their lease is going to hinge on the progress between a. C. Transit and amtrak sublease, because amtrak would ideally like to present the whole package to their board. And sydney is going to do security. Earlier i presented the security readiness tasks and timeline and these are currently my highest priority tasks. Security guard r. F. P. Negotiations are underway, bring it to the board in december. And Law Enforcement in progress, bring it to you in december. Transit center code of conduct is being formulated and i anticipate we will issue the roving security and good will ambassador r. F. P. Later this month. That concludes my briefing. Questions . Thank you. Next item. Item 11 is the presentation by p. R. I. Of the proposed public Retail Program for the salesforce Transit Center. Eric sorry. Derek kravitz will present this item. So, good morning. Debra kravitz, and thank you for seeing me today, directors. I am the owner and founder of problem resources inc. , combined we are p. R. I. Been in business 25 years, actually a little bit more. And we are a national and international firm. We have over 25 employees nationally. We have offices in santa monica, and in denver. Under resource, we own and operate the largest ped cart program on the 3rd street promenade in santa monica, we won through r. F. P. In 2004, and Denver International airport, the largest airport cart kiosk and popup Retail Program we won through city and county of denver. Additionally, we operate as consultants for shopping center, hybrid centers, transit stations, airports, and cities. So, we have done some Business Improvement districts as well. We are a california disadvantaged Business Enterprise since the year 2000, and the first acdbe, in the state of california. Additionally, we have an s. E. E. Northern california area, a fairly deep penetration. We have worked with, we are working currently, actually with city center, the bishop ranch, brandnew project. Worked on jack london square, bay street at emoryville, and a small cart program customized for each merchant but did 15 artisan units. So scattered throughout the project, 15 local artists who got the opportunity to participate in santana row for their grand opening. Additionally, we do a lot of platform training. Worked with Larger Companies like westfield and general growth and training there. What we call Specialty Retail leasing, now popup programs, how to do that. Yes. So, why a popup program . Especially here at the salesforce Transit Center. One of the reasons is to establish a sense of place. So, we want to create a daily shopping, eating, dining, Service Opportunities for not just the commuters, but also for the local consumers and residents. We want to attract food vendors and some new retail ideas. We want to do incubation and development of small local businesses and local concepts. Become the place to test and launch some new ideas. We want to offer some of the local artists, some opportunities to showcase and sell their wares, and we want to give some of the merchants the opportunity perhaps to go from popup, or shortterm retailers, to become permanent retailers through colliers. We are going to add excitement to the common area and the exterior areas and create an activation on grand opening day. So how do we do that . Obviously partners. With colliers, they are looking at the longterm, permanent leasing, identifying and negotiating retail spaces, restaurants and services. B. R. V. Is doing site events and programming and creating their destination in the park. Pearl media is the Partnership Marketing and interactive brand representation, and for us, we are working on the shortterm activations, popup and incubation retail, food, beverage and services. So, how does this work . So, we are going to give you an example. Savvy natural is a homemade lotion, potion and soap concept. Shark tank winner in 2016, and they are a bright, relatively new retailer. They sell their products wholesale in other retailers, but are looking to be a retailer. So, for us we are going to try to bring them in as a popup or incubation retailer. Hopefully they will then advertise their services and their wares with pearl. With any luck, they will become a permanent tenant when they are ready, with colliers. They have a sophisticated product line advertising and promotions so we think they are sort of ready but not there yet. And then with b. R. V. , they are interested in doing a soap making, interactive, whether its with the children and the childrens plaza, or arts and crafts venue. So, how do we create the dining destination, we think is very critical. First with food trucks. Three daypart dining, breakfast, lunch dinner and hopefully afterwards as well, with the brew pubs and wine tasting also as popups. We also hope to have mobile vendor units with packaged food, thats something for the park. And perhaps even on the bus deck. Thats a true grab and go, perhaps on a single day part. Retail units, a lot of brand retail to capture new customers and for ecommerce to test brick and mortar opportunities. Typically they are going to be bringing their own units. As you know, no capital expense, dollars for the salesforce Transit Center to build the unit so we are looking at the merchants to bring their own. A lot of the popup brand retail will be experimenting. How does that differ from what pearl does . Typically it will overlap a great deal, but if the merchant wants to sell the product, not just show and tell, probably come through us and work with pearl as well on the Media Marketing side. Brand activation, product launches, and we will determine their footprint, we will make sure none of them are overscaled. Fashion trucks, one of the new hot things, its a way for the entrepreneur to bring their wares for shortterm or longterm. If you look at the picture on the top right, thats actually a fashion truck converted to a permanent retail opportunity. So a lot of these merchants are a stepup from a quick popup, and almost ready to become permanent merchants. What we are looking at, and this is just some examples, is for a lot of the popup merchants that we find in fairs and festivals, they do not have a setup yet. They dont know what they are going to look like here. We have been trying to find them some inexpensive but cute and mobile units that they can a barrier to entry still stays low. Something they can afford, something they can fixture, something they can make their own. Company in the process of manufacturing these and we are looking at perhaps some of our merchants able to utilize them. Automated retail, we see being a very big component here. Everything from makeup, if you look at the machine with the checkerboard, thats actually unique glow, the store chain and they are selling their 50, 69, i believe it is now, puffer jackets out of a machine. So, you find out its cold in San Francisco and you are surprised . You get off the bus and you are a little chilly, this is an opportunity to purchase an actual retail product. Obviously we dont want to do havianas in the winter, but we would Something Like that in the summer. And then the souvenir concept, if you have flown out of oakland airport, a concept from oakland, and we are talking to them about customizing something for here in San Francisco. Another immediate customer need and want or even commuter need and want, on the left is something we find very needed and wanted for women who have accidentally trekked through with their high heels. These are roll a soles. They roll up into a pouch and ballet slippers and you can put them on and walk the rest of the way home or jump on the bus. A lot of the snack machines we are looking at, obviously, are healthy snacks. And thats been a big focus in the Automated Retail community. They understand the need to kind of replace pringles with something thats a dehydrated carrot chip. And then electronics. You have forgotten your charger, you want a pair of earphones, Automated Retail is a way former chants to pop up very quickly. Amazon has a new concept, its the amazon treasure truck and they have been taking it to different locations and cities. And we are hoping to get on their list fairly quickly. We have the amazon locker system as well. Entertainment, everything from karaoke machines, to Virtual Reality booths, to photo booths, to charging stations. Both sponsored, so in this case, if this is a charging station and a vendor says i want to be a sponsor, we are going to turn it over to pearl, hopefully we can also charge them rent. Farmers market, we think of Farmers Market can be an integral part of the salesforce Transit Center in attracting a consumer every single day. They can buy their groceries on their way home. They can find it convenience in front of them as they board the bus. So, next steps for us, we have been in the process of identifying locations, where can we put some of this, where do we have electricity, whats appropriate from a building standpoint, from egress, etc. Canvassing area locales, we have been doing a grid canvas. We work with predominantly small local retailers and food and beverage businesses and also done a fairly large push for national and regional merchants so they understand that theres an opportunity perhaps for them as well. Meeting with prospects and thats been ongoing. Taking those tours. Engaging the local partners, working with b. R. V. , pearl media, and of course with colliers, obviously colliers is going to get calls from merchants that are not yet ready for a permanent location, and thats an opportunity for us. And then stage for opening. Our goal is on grand opening, whatever day that turns out to be, that we will have as much, in march, i promise, as much popup as possible. And then obviously our last page is the schedule, so we have been in process with administration, everything from applications to deal sheets, license agreement, template, canvassing and prospecting. [please stand by] we will have a much better idea of what will and wont be successful. So you see two activations one is grand opening and we put in ongoing activation because we do anticipate that on an ongoing basis there will always be evolution to this. And then our contract information. Director, if i could add something, debra promised if we gave her this space, she would populate it. She is convinced she can populate the whole center by march, if we give her this space. Dont offer her that [chuckles] Santa Barbara and denver. Thank you for your presentation. Im just curious, about opening march 20th but im curious about the sensitivity to the vendors who may be here, i think they are expecting people to go through this Transit Center, if we dont make that date, if we are off a week or two weeks before busses are flowing through and passengers, what is the nimbleness or sensitivity of our popup vendors to be there, but no one is there, can we adjust two weeks and things like that . Actually, director gee, thats a perfect request because we do this all the time. Our grand opening dates are ever evolving in every probability property we work with. We are extremely up front with the merchants, unless theres a hard fast grand opening date we are clear what it is, if they are hiring staff and purchasing inventory, those are our two concerns. We dont want them sitting on inventory that puts them in a cash strait, right. We are clear if its an evolution towards a date. And depending on who they are. For the food truck folks we dont want to reserve their trucks and have them sit there for two weeks with nowhere to go. So we will be in constant conversation with all the different layers of merchants and retailers and services about where that date goes, so they are clear how that will work for them. At the same time, these are merchants who tend to make decisions, frankly, very late. Its one of the things we have tried to warn everyone, but warnings dont usually work well. We dont get license agreements back from these merchants until we are very close to opening. They dont want to give us a deposit, they dont want to commit. It works both ways. They hedge their bets because many have been through this before and we make sure they are very well aware of what the situation is. As we talk to them now, we give them the march date. We dont wink when we do it but we give them the march date. As this progresses, we will be very clear with them what that looks like. Vice vice chair j. Gee thank you. Is that too much, my wink . Thank you for your presentation. Question . Go ahead. I take it, your contract will be with lincoln . It is, sir, yes. The compensation for your company will be based on like a Leasing Commission . No. So we are a consulting company. And we only get a retainer. And our retainer includes everything we do. Expenses included. So we set a price based on what we need to do for a client and thats that. The reason we do that, frankly, these are small vendors we are dealing with. Our goal is to be an advocate for the property and maximize your revenue but at the same time we have to be very careful we are also not putting merchants in a situation where their ability to succeed is jeopardized in any way. We want to be an honest ombudsman. This is how we have worked for 25 years. We are not a broker in this sait waigs. Situation. We are truly the advocate for this property and the vendor. We may come with deals that are extremely high value and say to the landlord or lincoln, this is why we think this merchant can pay this, and we are comfortable with it, at the same time if its a small local merchant we want to give them an opportunity and they have to buy and build the unit we say look, they have to spend 3,000, this is how we want to offset that and this is where we think their sales will be. Can you speak to what the potential is for this kind of retail at the bus, the ground floor bus plaza level. And i guess on the perimeter of the building, particularly, i guess its the east end where the bus plaza will be. Obviously the bus plaza itself is kind of a tight area. We think the opportunity there will be predominantly Automated Retail based on serving the commuters. We havent isolated locations over there for anything at this point, but thats our next step. I guess maybe i would encourage us to think about the perimeter of the building, particularly at the end where the ground floor bus plaza is. Some of those folks will never really be going into the building but there will be a lot of folks moving in and out of the bus plaza, out onto beel street and the surrounding streets. There will be a lot of foot traffic. And we are looking at the exterior areas as well. The interest level has been very high, frankly. So as many opportunities as we can capture, we shall. And we will call that first foot traffic will be december, not march. Chair m. Nuru thank you for your presentation. Next . Item 12, authorizing the executive director to request approval to use interim financing from the cost of base Building Improvements and market share of the cost and improvement, necessary for retail intercommercial leasing. Directors, chief Financial Officer will present this item. Good morning, directors, sarah deboard. I will provide you a summary of the staff report we provided you with. So we collaborated with colliers to get information on projected cash flow for base Building Improvements as well as timing of paying out allowances for tenant improvements. And you can see that split into, over the course of the next three fiscal years. The estimate for base Building Improvements which are things that are necessary before the tenant spaces could be built out is just over 21 million and the assumption for a 50 tenant allowance is a little over 14 million. As we stressed in the staff report this is not guarantying a particular tenant allowance to any particular tenant but thats what a budget would be for an average of a 50 allowance. We then took a look at different Funding Options. And whether or not, one how those Funding Options would affect operator contributions and whether or not those options could meet the merchandising plan. Options 1 and 2, they build out the base Building Improvements and they offer the full tenant improvement allowance, the 50 . Its just the Funding Sources that differ. So the rents are not affected between option 1 and option 2 and the merchandising plan should be achievable. When you look at options 3, 4, and 5, basically each option you are lowering the amount of tenant improvement allowance until you get to option 5, you are offering no tenant improvement allowance and colliers doesnt believe the merchandising plan is achievable under that scenario. So then we took a look, we flowed through the dollars through operating projections. Option 1 is obviously most beneficial to the transit operators because it uses city financing for the full amount, both the base Building Improvements and the tenant improvement allowance. That allows naming rights revenue to be used to offset operating expenses and consequently lowers the transit operator contributions. So an estimate of the total for a four fiscal year period is 11 million for a. C. Transit and 4 million for m. T. A. Option 2, those contributions go up because the naming rights revenue has been used for tenant or base Building Improvements. And then option 3, yet up again, and option 3, the rents have been reduced because we are offering less of a tenant improvement allowance, so that, in turn, needs to be offset. We are prepared at your direction to go to the Cost Review Committee next week and ask for authorization to use city financing for both the base building and tenant improvement allowance and should the Cost Review Committee not agree to that, to ask them to, at minimum, cover the base Building Improvements and t. J. P. A. Would use naming rights revenue to offset tenant improvement allowance. Second option. Remind me, when we had the discussion earlier, city financing was something we said wer going to use . We have always hoped to be able to use the city financing for at least a part of these costs. And i believe the city will be amenable to covering at least part of the cost. Yes, director . Can you explain, is the idea the more we ask the tenants to pay for their t. I. s, is it a delay in when the revenues come in . Or depression of the overall, kind of a longterm viability of the retail . I guess im trying to understand, is this a onetime issue or ongoing issue in terms of the future revenue potential . We have someone from colliers here i can ask to come up. But i think, in general, in particular with option 5, if you arent offering any tenant improvement allowance, we dont expect we will attract the small local businesses, we would be looking at national bigbox type retail. So the less you offer in terms of t. I. Allowance the less of the local mix we will have and the more it will become like a mall. Like a mall. But you are also, the m. P. V. Is dropping significantly as well. And thats based on what . Based on having to offer free rent. So you are stretching out the revenue stream further out. Okay. So theres two dynamics going on. One is just pushing out when we start generating revenue. And then the second, what you are calling the merchandising plan, you are really talking about the mix . Correct. Yes. I would heartily support option 1 for a lot of reasons. Do they all then potentially stabilize to the same operator contribution, over time . If its kind of a onetime ramp up issue in terms of free rent offering to the horrible big boxes we dont want there in the first place . Playing out that Case Scenario . Do they stabilize to the same amount of annual once you lets take a look at it from the merchandising plan. If you are having to bring in, if you are populating the Transit Center with national chains, because they are the ones who can afford to be there, they are building out their spaces in a particular way. So that will impact the Second Generation space. So you may already have a builtout space but you are changing the nature of what the Transit Center is. Is that your question . I think in talking to folks whose approval we need for this, i think it will be helpful to understand if the choice that we are making today affects, how it affects the longterm Revenue Generating capacity. Director reiskin, we can show numbers for 10 years. Because what you want to see, how much you are losing at the very beginning and whether you recover later on and stabilize, a tenyear period. E. Reiskin i think it makes sense, not just because of the burden on the operators. Theres a case to be made there and i want to make sure you all are making the case as strongly as you can to this committee to hopefully get the favorable yeah, we can expand on that and show the net present value for more years, yeah. We expect the results to be the same, but i think its good just to show that. E. Reiskin is there anything, depending on where other Board Members are, if there is anything we can do to be helpful in this process, please dont hesitate. You are going to pass a resolution directing me to go option 1 so, we will reach out to you. E. Reiskin i would move for that. Im really glad to see this finally quantified. I knew these type of relationships existed. And when im trying to get a. C. Transit to do is to, as fully satisfy the pentup demand for transbay services out there. So the more i can get them to say no, put it into the busses, put it into the drivers, because we have to satisfy that demand. Which we cant do now because of the streets of San Francisco. It just cant be done. But with the new terminal, it can be done. And the idea is that, if we can come out of the chute with a lot of service, and build it up after that, and just keep going, then we can say, okay, we can start a spiral here where we feed the retail, and we start contributing to everything. And if we can get the right tenant improvement mix, for the right retailer, then we can start a spiral, an economic spiral, which is what Shopping Centers all try to do. They try to get into that spiral where the rents do that. I think option one does that. Thats the idea is to say, you know, let me get the busses to the terminal so we can get as many people in the terminal as we can, as soon as it opens up, and start to buildup the terminal as a place to go and Commuter Center and a shopping center. Chair m. Nuru we need a resolution for this . E. Reiskin i will second the motion. First and second. And no members of the public wanting to comment on the item, director harper . G. Harper aye. Director reiskin. E. Reiskin aye. Vice chair gee. Vice chair vice vice chair j. Gee aye. And chair nuru. Chair m. Nuru aye. Call the next item. We are coming to you with minor modifications as we get ready to transition into operations, the budget policy keeps our same budget schedule, we would come to you in april with a budget outlook, draft fiscal year budget in may and june but we would layer in, january each year, our preliminary operating budget projection. This allows us to meet the schedules in the a. C. Transit leasing use agreement as well as the draft Lease Agreement with s. F. M. T. A. Which requires us to give transit operators that information in the fall, so they can go through their own budgeting processes. The investment policy has very minor modifications. The reserve policy, we are proposing to put in a target for the o m reserve. We took a look at what other agencies have as a target. The o m reserve is already a reserve in our reserve policy, but we would suggest having a target of 25 of the annual expenses of the Transit Center. Of course it would only be funded as money was available. But that would be a goal to build up to the Transit Center revenues could be susceptible to economic downturns, whereas expenses would be staying the same. So we think a healthy o m reserve can help us off stand potential future economic disruptions and hopefully not have to pass decreases in revenue in the form of increased contributions from transit operators. The capitalization policy changes, the major change there is just to put in different thresholds for different types of assets. It doesnt really make sense to have Building Systems have a 5,000 capitalization threshold, just the same as what you might have for Office Furniture and office equipment. So thats the main change there. And just an annual review of the Debt Management policy with no changes suggested. And im happy to answer any questions you might have. Chair m. Nuru yeses . Questions . Director reiskin . E. Reiskin just one. They all seem fine but question on budget 1, the changes reflect the fact we havent established a finance or budget committee, which the current policy refers to lots of things going to this committee we dont have. So i appreciate you are recognizing that. Theres a lot of places where it says if established. My concern though is that, given that i think we are probably unlikely to establish such a committee, i wouldnt want the board to lose potential budgetability, it was a challenge we had 34 years ago where the board ended up being somewhat surprised by the need to significantly increase the budget, which we had to do twice. I dont know if you can speak to that. I guess i would have rather have things, rather than it goes to the finance committee, if established, it goes to the full board, if there is no finance committee, as the alternative. And im wondering if you can speak to that. Or if i misread and thats the intent. That is the default. If theres no finance committee, it comes to the full board. For instance the budget outlook and the draft budget, those would go to a finance committee first, before coming to the full board, if there were a finance committee established. But since there is not a finance committee established, they come to the full board, and the final budget approval will always come to the full board. E. Reiskin but nothing in this proposed new policy that the board, the full board, wouldnt see, for lack of having established a finance committee . Thats what i would want to be assured of. No. You would still see the draft budget. Basically, having a finance committee would add another month and another step into our process. E. Reiskin yeah, and im not advocating for that. I just want to make sure if there was a lower level review of some things that wouldnt otherwise come to the board of directors, that we dont default to those who dont come to the board of directors that they do. So if thats the case, then im good with it. No, it would still come to the board of directors. Even if there were no finance committee, it would still come to the board of directors. E. Reiskin okay. Chair m. Nuru director gee . Vice vice chair j. Gee thank you. I might have missed this, just remind me, theres a lot of things. Based on the last two presentations about the leasing and the popup and the tenant improvement, is there a line item for future tenant improvement terms as we transition from construction to kind of being a buildingoperator . Thats separate from the mno reserve . We dont have to do this again when we have like 56 years and we have to go find tenant improvement money . Theres not a reserve specifically for that in the reserve policy. I know that our long term budget projections do assume that when you have space turnover at the end of a leasing period, that is included in the projections of an expense in that year. We also have, under our kifi loan, access to net tax improvement for capital replacement. Vice vice chair j. Gee best practice, it might be good Going Forward to have that as a separate line item. There will be tenant terms and to have that separate budget for our share of tenant improvements, i think, so we dont lose it and spend it somewhere else, i think, would be a good practice. Sure, we can look at adding that in the future. Chair m. Nuru any other questions . So we need we are approving. Make the motion to approve. Second. First and second and no members of the public wanting to comment on the item. Harper . Aye. Reiskin. Aye. Gee. Aye. Nuru . Aye. Four ayes and its approved. At this time you are schedule d to go into closed session. I understand vice chair gee will have an announcement and we have one member of the public who wants to address you on the items. Before we clear the room. One moment though. Just for the record, i will be recusing myself from the closed session. There are a number of conversations under way in this very complex project and until theres great clarity and in an abundance of caution i will step away from the closed session agenda at this time. Chair m. Nuru noted. Noted. And we have mr. Patrick. Relative to the closed session, its my feeling that we talk about the leaning tower. And our responsibility there. I point out to the board we spent 250 million in kasons supporting that building. I think it with stood the test of time and its done what was predicted. I also point out we have this Public Relations p. R. Piece put out a year ago on our website and it talks about how this leaning process has gone on with this building and its been quite predictable. Thats the good news. The bad news we have chosen not to update it, i think thats been a mistake. We need to argue our case in the public realm, as well as argue it in the private realm. I dont want these lawyers getting together and say gee, you should take responsibility for this. I dont want to give up the ship. I think we should move to dismissal and get out of these cases and be very aggressive how we handle this thing. We already invested 250 million to make sure this problem didnt happen. Thank you. That concludes members of the public that wanted to dress you address you on the closed session items, so we all right the tjpa board of directors meeting is back in session. There is nothing to report. That does conclude your agenda for today. Chair m. Nuru okay, we will adjournment meeting. Thank you. Thank you