So move. Second. All in favor say aye. Aye. Opposed . Item three, comment on the executive session. Is there comment on the Public Session . Were here and the public isnt. Can we put that in the minutes . All in favor say yai . Aye. I move to reconvene in open session. Second. All in favor say aye. Aye. Opposed . I move to not disclose anything discussed in closed session. Second. All in favor say aye. Aye. Opposed . Madame secretary, next item. Pledge of allegiance. I pledge of allegiance to the flag of the United States of america. And to the republic, for which it stands, one nation, under god, indivisible with liberty and justice for all. Please be advised of the use of cell phones, pagers and similar Electronic Devices are prohibited at this meeting. Please be advised that the chairman ordered the removal from the meeting room of any person responsible for the ringing of or use of ale cell phone, pager or other similar soundproducing electronic device. Please be advised that a member of the public has up to three minutes to make pertinent Public Comments on each agenda item unless the Commission Adopts a shorter period on any item. There any Public Comments on items not listed on the agenda . I dont have any cards so if you have anything to say, please hit the mic. Seeing none, Public Comment is closed. Madame secretary . Item 9a, executive directors report. Good afternoon, members of the commission. Members of the public and port staff, im elaine forbes, the ports executive director. Id like first to update you all on the resiliency by design challenge. In may of 2017, this challenge, which is called the r. B. D. Challenge was kicked off with a call for innovative approaches to Climate Change. And this was really modeled after what happened in new york in the wake of hurricane sandy. The Rockefeller Foundation contributed a large amount of money, 4. 6 million to this design challenge. The design challenge, as i said, there was a call for Innovative Solutions from multidisciplinary teams and r. B. D. Received 50 submissions. On september 10, 10 teams were selected. Those teams are composed of local, national and international experts. For two months, the teams have studied Climate Change issues. This is a ninecounty bay area challenge. So these teams have been looking in the north bay, south bay and bay. On november 1, they were here in San Francisco and they toured the citys recommended options for sites which were isla creek and fishermans what are. Wharf. The tours included stakeholders from the bayview hunters point. There is additional outreach. There will be five to three implementable communitybased solutions presented on november 15. If you are interested, you can go to the website, resilientbayarea. Org. The ideas will be available for the public to comment for a few weeks. On december 8, r. B. D. Staff will then team up, design teams, with site selection. And then the more Detailed Design will begin and well keep you posted. This really offers an opportunity for us to learn about sea level rise. As you hear, all three sites are on port property. Crab season is open, im happy to announce. We will have crab for thanksgiving this year. We heard from mr. Collins of the Community Fishing association. There is an agreed upon price and the california can Public HealthDepartment Said that the commercial crab season can begin and it is expected to begin today and it will be here for the San Francisco fishing fleet and the region south of the Mendocino County line. As we know in recent years, theres been concern because of the dominic acid that has been occurring and we did see some of that near fort brag this year. Fort bragg this year. But the good winds prevailed and commercial crab season will begin. Also our own fish sales have begun in Fishermans Wharf so here in San Francisco, there should be a steady supply of good seafood this year. I would like to turn it over now to peter daly or mike nerny. They attended with our own president willie adams, the west cruise cruise in the west conference in seattle november 7 and 8. Mike, can you tell us about the conference . Thank you. Good afternoon, commissioners. My name is michael nerny, Marketing Manager in the maritime division. For a change, im not going to talk about retail fish sales. [laughter] i have a new topic today. Last week, as elaine said along with byron, retz and peter daly, i went to seattle, washington to attend the annual fall meeting of cruise the west, a Marketing Association of 10 west coast cruise ports from california, oregon, washington, British Columbia and hawaii. The president of cruise the west is chris chase from the port of los angeles and i am the secretarytreasure. The Association Works together to promote our region to cruiselines every year in march at the sea trade cruise global conference in florida. The main purpose of last weeks meeting was to plan for sea trade in 2018. Items such as the budget and member dues, booth arrangement at the Convention Hall and details for a customer reception. Also taking place in seattle last week was a postseason meeting of all the cruise lines doing business in alaska during the summer months and it was organized by Cruise Lines International association or clia. Cruise the west sponsored a reception together with clia for the cruise line executives and stakeholders which included Port Commission president willie adams and stephano borzane. While in seattle, byron, peter and i met with sign cruise, c. E. O. Of Holland America group and toured the companys newlyrenovated headquarters. We also met with Holland AmericaVice President bill sharp to discuss port and shore operations and growing the business in San Francisco. And we also toured the newly renovated pier 66, the bill street cruise terminal which, in 2018, will host norwegian bliss. The largest envelope vessel ever to sail in alaska, carrying 4,000 passengers and 2100 crew members. Norwegian bliss will visit San Francisco on her maiden call in october 2018. Commissioners, this concludes my report. Thank you, mikeful id like to speak about the impacts of the proposed tax bill being considered by the house of representatives and the senate. There is a nice handout that staff prepared about historic tax credits that is available to the commission and the public. As you know, there are two tax bills under consideration and both really have major consequences to the port. For two reasons. In house bill, federal historic tax credits would be eliminated as would private activity bonds. Federal historic tax credits are a major tool for historic rehabilitation of our finger peers. This would be fairly devastating to the future of our finger peers and to other Historic Buildings on port property. Per our staff estimate, we would have a direct loss of between 230 to 350 million and up to 1. 7 billion in public and private investment. The loss of private activity bonds would also be detrimental to us. It would increase our cost of borrowing for port projects like the james r. Herman cruise terminal. And seriously undermine the citys Affordable Housing efforts. We sold private activity bonds at, i believe, 3. 7 interest for our james r. Herman cruise terminal. If this had gone into effect, we would have needed to sell taxable bonds which would have increased our rate substantially, at least 100 basis points, at least. The senate bill is a little less bad. It reduces tax credits by 10 of rehabilitation cost and would eliminate historic tax credits for buildings cruxed after 1936. We have buildings like that. We project the impact to be between 130 and 175 million and an unknown loss of private investment. So this would impact really the world war ii era Historic Buildings at pier 70. They would no longer be eligible for historic tax credit under the senate bill. The senate bill does not eliminate private activity bonds, which is a good fact for us. Support staff is working closely with the Mayors Office and our city federal lobbyists to educate members of congress about how these tax bills would harm the port of San Francisco. Next the schedule of Port Commission meetings for 2018, id like to say that it is available and in the commission packets. Please note that we will be doing an audiovisual upgrade and, to this Port Commission hearing room and, as a result, well have meetings for february 27, march 13, march 27, those will be held in pier one while we get the Port Commission and the public a new system. And that concludes my report. There any Public Comment on any executive directors report . Being none, Public Comment is closed, madame secretary. Item on the consent calendar no. Sorry. Park commissioners report. Commissioner . Thank you. I just wanted to report that i actually just returned from a private personal cruise in europe where we stopped with my family in bars low na, va barcelona, valencia, livorno and rome and obviously i had a chance to experience all these other cruise ship terminals. Of course, while i cruised before so it is not the first time, but i had to say that i was absolutely reminded how beautiful and how nice our cruise ship terminal is relative to some of these other major cities in europe. Even barcelona, which is one of the busiest cruise ports along with greece in terms of the number of cruise ships that they can host. But many of the other cruise ships are obviously docking where the port is, even in valencia and monte carlo and they are in ugly neighborhoods and it wasnt a pleasant experience to get off the boat. And i would say just even the terminal itself in some places, even in monte carlo they try to have at least a nice terminal. But i have to say it is i think we have to remind ourselves and appreciate that we have a worldclass, beautiful facility when you walk out cruise ship terminal, you are in the best neighborhood of San Francisco for a for a tourist experience and i was just so appreciative, realising how ugly these other terminals were. Than commissioner katz . Nothing. So glamorous. Nothing to report. Commissioner brandon . Our cruise terminal used to be like that. [laughter] but now we have a nice, new cruise terminal and freeway is gone. We are very lucky. I have a few comments. Before we start, id like to have a moment of silence for the victims killed in texas in the church here recently. May they rest in peace. I did attend the reception after the west coast conference. The only reason i found out about it was because of stephano, the c. E. O. Of metro. I wasnt in the loop. But the maritime division. Once i did find out, i got a hold of mike nerny. He got on it right away. He registered me for the reception. I thought it was really good because i wear two hats to the Port Commission and the secretarytreasure of i. O. W. What i found funny is all the Cruise Companies were thanking their partner. But partner they didnt thank was labor. And i did mention to them that you sit up in your high offices but you arent the ones that load, unload the ships. Labors a part of beinging the process of loading and unloading the ships. So, were just as much of a stakeholder as everybody else and we were remiss in that mission in labor. One other thing i want to give a shoutout to sfgovtv. Thank you. Item 10a, requests authorization to award construction contract 2779a upgrades project. In the amount of 702,350 and 10 of the contract amount for unanticipated contingencies for a total authorization not to exceed 772,858. So moved. Second. There any Public Comment on 10a . I dont have any cards for anyone. Is there any Public Comment on 10a . Being none, Public Comment is closed. Colleagues, all in favor say aye . Aye. Opposed . Madame secretary, passed unanimous. Next item, please. Regarding responses for request for proposals for the lease and operation of the pier 70 shipyard located at pier 68 and 70 and sea wall at 349 near 20th street and illinois street, including dry dock eureka and Dry Dock Number two. Good afternoon, commissioners. Im jeff ballor, the project manager for the r. F. P. There we go. And, again, here to give you a brief presentation, professional presentation on the progress of the r. F. P. And the responses that the port received. As you recall, on july 11, the Port Commission authorized staff to issue the request for proposals for the operation and lease of the shipyard. The r. F. P. Was issued on october 15, 2017. The goal was to enter into a lease with an operator who has the experience and the Financial Capacity and capability and knowledge of west coast ship operations to bring back to life the shipyard. As set forth in the r. F. P. , the tenant must demonstrate a strategy to retain, modernize, operate this very important asset of the port for the life of the lease. And which presents the greatest opportunity to achieve and contribute in a substantial way to meeting the ports strategic objectives and goals. Following the takeback of the shipyard in february 2017, in the Settlement Agreement with b. A. E. , the port took several steps. We hired five former employees, the fab 5, who have done a tremendous job. We cant say enough about them. The port has undertaken some significant projects. Weve undertaken a 3 million electrical upgrade power grid separation project. Which will separate the shipyard from the adjoining developments. We currently anticipate that project being complete by april 2018. Construction of the new 19th street extension that will connect the shipyard with illinois street. Give more direct access to the shipyard. We anticipate that being completed by april 2018. And then were on our way to demolition removal of two structurally deficient buildings that will create an additional 20,000 square feet of yard space for the next operator. Thats currently under way and we anticipate the completion of that project by 2018. Dredging project to include dredging beneath dry dock two, wharf four east as well as paying for the support costs of testing, permitting, Management Fees along with deployment fees and management costs. The port is nearing final project partnership, a p. P. A. With the army corps of engineers to continue the dredging of the basin, which is the gateway, the driveway of the shipyard. As part of the r. F. P. , you had requested that port staff bring the short list of respondents to make brief presentations to the commission. We received one response. And that was from vigor. And i have their representive, Kellan Lancaster here, to make a brief presentation. Vigor is the largest ship and new vessel Fabrication Company in the Pacific Northwest and alaska and id ask kelen to come to the mic. President , Port Commission, thank you again for having me today. Im going to talk to you briefly about vigor, give you a highlevel overview and talk about some of the opportunities we see at pier 70 and talk about labor and touch on some of the challenges we see Going Forward. So the name vigor really embodies the work we do and the people that work with us. We have key values and make everyday decisions that we like to work with people and also show the same values. The values are truth, responsibility, we act on what we know is right. Evolution. React to this changing world. And we care about the people we work with and the environment we work in. So vigor does ship repair, ship building, specialty boats and heavy, complex fab. We started in 1995 as a small repair company in portland, oregon and have grown through interim growth and acquisitions and becoming the largest in the Pacific Northwest. Here you can see where were at. We have locations in portland, oregon, up and down washington, seattle is our main yard in washington and up in kejikan, alaska and seward, alaska. We have eight dry dox and a ninth coming on at the end of the year. Heres some pictures of our facilities. Again, nine separate locations. Access to waterways. So at our heart where ship repairing conversion company. Approximately 60 of our revenue comes through ship repair and conversion opportunities. On top left there, you see a cruise ship, thats on our vigorous dry dock. Its the largest floating dry dock in the United States. And the military, military civ command and u. S. Navy coast guard and a variety of commercial customers. At the bottom left here, you see the weided hydris. You can see the city of San Francisco fire boat. The first fire boat for the city in the past 60 years. And then finally, you hear the transit sitter at transbay. We have a history of working with the city of San Francisco and are a big part of what is going on here. So, next ill touch on opportunities we see for pier 70. Pier 70 is a special asset. Its on the waterway. And there is only so many shipyards in the u. S. You cant build a new shipyard, essentially. So some of the work here, we see opportunity with, more work with military command, more work with the maritime administration, they have vessels stationed in alameda and throughout the San Francisco bay area. Working with companies such as weida, golden gate ferry can i interrupt you for a second so there is not confusion. We have a screen up just for the audience to know that the screen thats showing is not related to the presentation. Sorry. Ill go back to the front. There we go. Didnt want to confuse people while you are speaking. Yep. So, a lot of Good Opportunity here. Dry dock two is a great asset. 900 feet in length and can service the majority of the ships on the west coast. As far as labor goes, vigor is currently a mix of union and nonunion labor. We Work Together in getting jobs done essentially. Were we to come down to San Francisco, we would hire the local workforce and work with the local labor unions to figure out the best path forward. That said, projects ebb and flow. Depending on customer needs and workforce demands, there are times when we would bring labor in from our various yards, down to San Francisco. Theres also times we bring labor from San Francisco up to yards. Our goal is to maintain a core workforce and work on projects that we can be successful at. Last ill touch briefly on some challenges we see with this opportunity. One theres been some new dry docks that have entered their competitive landscape. A couple in vallejo that vigor has put in in the last two years and one coming online later this year and new dry docks have entered the market in the hawaii region. So, theres a lot more assets out on the west coast now. The other challenge we see is there is documented challenges with the structures and various parts of the port that we need to figure out a way to work on. All that being said, vigor looks forward to working with the port and finding the way forward for the best for everybody. Thanks. Thank you, kelen. Depending on the outcome of this informational item and further discussion with vigor, we open that we may be back at the december 12 meeting, 2017, to ask for an exclusive right to negotiate with vigor. You know, at this point were information gathering. We havent negotiated. What wed like to do is in the proceeding time of now and december 12 is, you know, we still have some more questions for vigor and depending on the result of those questions, potentially come back and ask for an exclusive right to negotiate a lease for the operation of the shipyard. Im happy to answer any questions. Thank you. Is there any Public Comment on 11a . I dont have any cards. If anyone would like to hit the mic, would you please anybody on 11a . Seeing none, Public Comment is closed. Commissioner brandon. Thank you, jeff, for the presentation. Thank you. Youre welcome. Jeff, you said that there was one respondent, but in the staff report it said there were three respondents. We did receive three responses. Two were deemed well, they stated that they werent responding. It was just really a courtesy letter that they acknowledged that the r. F. P. Is out there and they chose not to respond. And so what were what were the minimum qualifications to meet that . Operational of a shipyard for 10 years. Continuous for the last seven years. There was an earnest money of 25,000. And the middle of a Business Plan and r. F. P. And that was it. Did we receive a Business Plan . Yes, we did. From vigor . Yes, we did. Were there any terms or thoughts about what exactly happened with the shipyard . What they would invest, what we would have to invest . Sure. We are putting 11 million of port money into the shipyard with these projects ive described with the settlement money from b. A. E. We see potentially there could be a reduced foot print and maybe one of the dry docks would not be included into the smaller drydock would not be included. Again, were in a preliminary stage. Although it is not a negotiation, some of these may be positioning themselves for an up coming negotiation. If im answering your question. Ok. I think for me, it would i would like to have a better sense of what is going on overall with the shipyard. I heard a lot about what weve invested and what were doing. But to understand, you know, if were only using one dry dock, then what happens with the other once and what happens with the buildings that were tearing down on that land. The whole thing. So, thank you. I look forward to yeah. When we come back absolutely. Additional information. Commissioner katz. Thank you both for the presentation. And thank you vigor for stepping forward and responding and potentially working with us. One thing i would want to get a little more clarity on is, you know, moving forward given as was mentioned the other dry docks and other facilities along the west coast, what we could do to differentiate ourselves, make this a stronger opportunity and ensure that as we move forward on this, that it is a successful venture for all involved. One thing weve done is concluded in the r. F. P. That it would be permissible for the operator to do other work like you saw where they were due Metal Fabrication for a variety of things so they have the workers there that could do fabrication. They could do ship building. Its a competitive market. There is no question about it. But San Francisco has advantages and disadvantages. So again, were in the early stage, although weve gone through this process, think well know better and be able to report back to you in a much more coherent way once we meet and negotiate with vigor. Thank you. Thank you. I want to thank jeff and vigor for stepping forward on this. We obviously hope that we have the opportunity to retain the shipyard. But the economics and the feasibility obviously have to be right given our recent history. I guess i just had a couple of questions. One, i guess, in the process has vigor already done a physical inspection and Due Diligence as part of this or is that to come next . Sure. It is part of the r. F. P. Process. We had three meetings at the site. We discussed the r. F. P. , the procedures applying what a middle package would look like and then we had indepth tours on three occasions. We picked different times of the day. We made all the areas available to the respondents for thorough inspections, including boat tours of the perimeter. Yes, very thorough. And made the appropriate disclosures in terms of the issues yeah. Full of disclose sure, yes. Thank you. We want the buyer or i guess to be fully aware of what theyre walking into here. Absolutely. The second thing i was interested in what the speaker mentioned from vigor that seems like obviously we have a lot of experience already in dealing with San Francisco and multiple areas and mentioned some we the votes and so ill be interested when the proposal comes back how much is a differentiating factor to be able to do business locally based on the fact that they have the business interests here and since we are not restricting them to necessarily ship repair, but ship building. How can they tie that into making it much more of a robust, local business than simply waiting for some navy ships. You know, that need repair, which has been the traditional business in the past. Sure. It needs to be exened paed. To be expanded. They do have connections. It would be nice to have the boats built here. We anticipate having those discussions. Ok. Thank you. If i go too far, you have to stop me. [laughter] we got to have a painful conversation here. Im going to be brutally honest. Everybody was up. In arms and i want to thank elaine and her staff. You guys responded immediately. The mayor responded. Because we talked about losing 300 Good Union Jobs and stuff like that. Im goinging to put it out there. Just straight up. Vigor was one of our competitors that took 50 of the work away from San Francisco. That is just our goals. All these companies are competitors. And i just need to put it out there. I knew a lot about vigor being up in portland and keshekan with the i. O. W. I think were in a bad spot because we responded and really we only got really one, i think commissioner brandon brought it. And said that they really want to come here. Do they really want to come here . That, i dont know. But saying that, we might have to look at ourselves and go we remember how pier 70 used to be back in the day. This might be an opportunity, it might not work out for us and i said that when we started to go down this road and we might have to be honest with ourselfs because it is so competitive. Theres san diego, portland, kechekan. We might have to think about this and go through the process. But i dont want anyone to get disheartened or downtrodden just because it may not work out. We go through the process, we hear what vigor has to say. I trust elaine and mike and i think theyll bang jeff the best they can. But if it doesnt work out, we have great Real Estate Property but we have to be realistic. I get nervous about people flying into work and if it is not union jobs, this is a union town. This is a blue collar town. That is a blue collar place. And i take a lot of pride in that, in San Francisco. I have to be very honest about it. I want to see what happened. You have my best. By really dont know what vigor is up to. I really dont. And, you know, sometimes in life, you know, people they may not be interested but they dont want nobody else to be interested, neither. I dont know but im going to be open to see. Im going to see and then i know the port staff will come back to it. I think were in a bad spot. And i think it is very painful. But i dont think it is going to be like it used to be when we had those 300some union jobs. We have to get used to that. And i think that but yet i trust you guys to do the right thing. Youll come back. The public really needs to be in this debate because this is a great area over there. And so im not looking for going to the moon or even landing among the stars. Its a bad position that were in. But we have to deal with that. So i wanted to be very honest on how i personally feel. Elaine, please, you guys go out and do the best you can. But i think it is going to be really, really tough because we didnt have any other competitors that were interested and they didnt really put a halfhearted bid in. And we have to look at San Francisco on our property and go, ok, all these other Ship Building Companies that is up and down the west coast. A lot of times, even in the cruise industry, people say that it is so expensive to do business in San Francisco. Elaines heard it. Peter daly. They hear it all the time. Mike hears it. It is expensive to do business here in San Francisco. But that is just how it is. It is worth it. Were a union town. We pay good wages. We talk care of our families and that is something that we dont compromise on. So with that being said, they come back, hope that youll come out and stay up with this debate. Because this thing, we need to get down into the weeds and really see what vigor is up to. Thank you. Thank you. Item 12a, informational presentation regarding the transaction structure for the Mission Rock Development project and 337 and 348 third street and San Francisco bay. Good afternoon. President adams. Vice president brandon, commissioners. Brian williams yamson, senior project manager with port staff. Before you today with a detailed informational review of the mission rock project at sea wall lot 337 at pier 48. My comments today will provide context and project highlights that reference and expand on the series of informational presentations you received this past june, july and august. Assistant Deputy Director of Waterfront Development rebecca menocini will present a detailed review of the projects transaction documents in deal terms. Following our presentation, jock b. E. A. Er and fran well from the giants will briefly speak to the collaborative process begun more than 10 years ago. That resulted in Todays Mission rock project. Switching over to the power point presentation before you. Heres a somewhat dated but helpful yal view showing sea wall lot 337 and pier 48 and its location south of at t park. Youll notice obviously this area is quickly becoming the final piece of undeveloped property in the mission bay neighborhood. As you know all too well, we have been at this for quite a while and believe the passage of time has resulted in a feasible, achievable, wellsupported mixeduse project and before you is is the timeline going back to 2006 when members of this commission helped convene a Community Process to define the objectives for the site. Heres another view of the undeveloped site and i want to point out significantly that Mission Rocks proposed mixed use program which you will be hearing about today is achievable and accomplished without displacing any residential or existing commercial uses. So, it is really taking this blank slate and creating something new and fresh and important for the waterfront. And youll see in this picture, the rendering of what the site will become when it is fully built out. It complements the surrounding area with muchneeded new apartments, new retail, new restaurants, new open space and expanded open space and appropriate new Office Development to fully activate the site while meeting the ports financial goals. As you heard over the summer, the planning permission rock has been detailed and meticulous. Providing a framework for responsible and Responsive Development with roots reaching back to the objectives outlined in the ports 2007 r. F. Q. And r. F. P. Includinging Affordable Housing. The site will produce and provide 40 inclusionary Affordable Housing to critically needed members of the citys population and the regional population. At multiple levels need from 45 to 150 of Median Income. The project will provide eight acres of new and expanded open space to serve the city and the region, thoughtfully designed and actively programmed to maximize public use and to energize the waterfront. The site is fruili a transitoriented development in that sense of the word that you hear so often and emphasizes pedestrians and bicyclists and makes tangible commitments to neighborhood transit through dedicated use of Development Fees generated by the project and funds off site improvements to address congestion in the neighborhood. The project team is proud to have a 21st century awareness of the environmental impacts of development, taking full advantage of the sites lack of infrastructure today to build a responsible, sustainable, new neighborhood with remarkable goals of water conservation, waste diversion and energy efficiency. While also recognizing the need for enhancing the ports active working waterfront through smart street design which will accommodate ongoing commercial activities, trucking activities, deliveries and other important activities at piers 48 and piers 50. Over the summer, you also heard of the projects conservative approach to sea level rise, raising the site for resiliency up to 66 inches to protect the New Buildings that will be constructed. And building parks accommodating the future effects of sea level rise. Mission rock is thoughtfully and intelligently designed to serve the port, the city and the region for generations to come. At full build out, the 11 developed building, the retail, the open space and the rehabilitated pier 48 provide a landuse program that will transform this part of the waterfront. With phase one shown here on the north side of the promise, anticipated to commence construction in 2019 and subsequent phases following as quickly as Market Conditions allow. Dont go far, phil. Good afternoon. The financial structure for mission rock is in relation to the publicprivate partnerships you are familiar with. Starting at the bottom of this dprafk, the developer will be obligated to front all the costs for the infrastructure that is needed in the project. With the port having the opportunity to invest and qualify costs. And the developer at the port will receive our money back with a return, excess land proceeds will go to the ports rent and be split with the developer giving them an incentive to help us maintain land value to keep the costs consistent with what the infrastructure is planned to be. Shown here are base Case Financial results from our current modeling. The key point with these results is that both parties have to meet their financial metric to requirements to want to Work Together to get the project to move forward. The key metrics for if developer are receiving an 18 return on their money and a 1. 5 multiple on their equity outstanding for each phase. They do achieve those metrics under current results and they also receive participation rent on the back end as the project is developeded over the years. For the port, our key metrics are we have a revenue we have an assetproducing revenue for us today. We want to meet that revenue were seeing today thats sort of shown in that first row unrestricted annual rent. Under state legislation that relaxed trust restrictions on the site. That was supposed to be our unrestricted revenue and then revenue we received above that, that we would expect because of some of the trust restrictions that are being relaxed. Revenue above that is to be spent on historic rehabilitation along the port and open space. Along the ports. Those are revenues directed to those important trust octoberives. We anticipate other revenue from transfers and other real estate activities and really consequencially we have this Public Financing source for shoreline protection that were going to be receiving through the special taxes and the tax increments. The ports revenue shown over time, over what were projecting 10 or 12year build out, plus our 75year leases goes out past 20, into the 20 90s. We have various Revenue Streams and sort of the key bumps that you are seeing with that sort of yellow shade is the return of our portland advances. So, to the extent that were providing prepaid lease revenue, were geting that money back in lumpy chunks of money and the Revenue Streams all the other Revenue Streams are moron going and sort of projectable. The establishment of a couple Public Financinging sources are really foundational for our whole project. And what will need to be done prior to implementation. In particular right now, were going through the process of activating our project area within the portwide i. F. D. I. F. D. S will capture the local share of tax increment. Very important for being a source of revenue of infrastructure that mission rock will be building. And the other key pillar of our Public Financing sfraej is overlaying a Community Facilities district atop the i. F. D. And the chi reasons we really need this is to provide an early source of revenue. Well have those taxes coming in while the buildings are getting on the tax roles and generating tax increment. Well have this earlier source of revenue. The concept is the taxes that would pay off the c. F. D. Tax and pay another additive tax and a Maintenance Tax in order to make sure we have sufficient financing for all new infrastructure and beautiful imagery that we showed you earlier. When we return for an action item, well be requesting that the commission adopt, consent to or recommend that the board approve the variety of entitlements and ability to guide revenue Going Forward and consequentially all these comes that we request that you all allow us to enter into with the developer will guide all of our roles and responsibilities over the next 10, 20, and for the parcel leases, 75 years. Now is the 250i78 when i abuse all of you with textheavy slides that speak to all the documents that weve been work on over the years and distill them down into a couple of bullet points. The transaction framework includes a variety of documents. One of the key documents is the development and disposition agreement. This is the document that guides the relationships with the clients where were bound on scopes and standards for horizontal delivery of infrastructure, Public Benefits including how theyre going to be going through Community Processes and park designs. It has their phasing, their schedule of performance and outside dates for delivery of different benchmarks. And also outlines the process for fair market value determination for the parcels in the development. Ing plan sets forth all the key economic terms including very importantly the ports reserve rents that was set forth in the proposal that we would elect not to receive so we have that ability in our discretion. Otherwise, were seeing reserve right and then some. We are committed to reimbursing the developmenter from the specified project base Revenue Streams for their delivery of infrastructure. We alsos have a very robust workforce plan that were proud to have helped the giants negotiate. All the key metrics shown here, commitment to a 30 local higher goal, 20 local Business Enterprise utilization. First source hiring participation and oewds program. A commitment that the project will provide 1 million in funding to support further training and job readiness programs. And these commitments apply to horizontal and convertible construction as well as some aspects applying to ongoing maintenance in the project. Phil spoke about the housing plan that includes 40 inclusionary units in the project. A. M. I. Levels spaning from 40 to 150 of Median Income and 24 ages youth units which are targeting individuals coming out of foster care and other sports of programs and transitioning them into independent living. The infrastructure plan sets forth the concept level design for all the utilities in the project with infrastructure being designed to meet city standards for public acceptance. We values a cooperation agreement. We know we cant do this alone. So, all of our sister agencies, including sfpuc and public work will be coordinated in our review and will be submitted in the coming months. The Development Agreement is the agreement between the city and the developer that vets the develops entitlements and protects them from some changes in future city law and locks in different sea levels that they will be required to pay as their Development Moves forward. The master lease is a document that provides the developer access to the site. And allows them to continue using the site for current uses, which are primarily parking uses. And will allow construction access. That footprint of the lease will shrink over time as development occurs and will be replaced by the vertical in disposition agreement. This is the agreement that each developer of each building will enter into. It will give them an option to enter into a lease for the parcel. Will include a schedule of performance for them building the building and it will include their requirements for design review. Design review will include bringing their Building Design to seawag and well have staff level reviews related to their consistency with the design for development for those buildings. They then enter into the ground leases which will be 75year ground leases that set forth their rental obligations and events of default and how were managing that relationship. Pier 48 lease is anticipated to be an interim lease for existing uses. I think many people are aware that there are different longterm users that were contemplated for pier 48. At this time, a longterm user has not been identified. However, the pier will be a very critical asset for the Development Project as construction is going on throughout the site. Some of the uses that are currently on lot a will be sort of pushed into pier 48 for an interim time period. With the ultimate goal being a path to longterm development. And that path to longterm development we anticipate will be with the giants. However, were looking to have an option to use another developer if it turns out that they turn down the option to extend into a longer term lease which would include significant investment and rehabilitation of pier 48. These are the missions as we complete these developments and come to you with additional analysis, specifically around the financial aspect of the project. Well be running sensitivity on some of the numbers i showed you, to show you Different Cases around likely outcomes. That chart has been a0year basis and ill show you more within our 10year period. A j our anticipated schedule has us coming back to the Port Commission december with board approval sought early in january. Id like to pause here to just oh, you cant read all the names. This has been an incredible journey with so many people supporting us throughout this project. Phil, i think you left your own name off of this slide. But he has been an incredible project manager and we had support from all of our sister city agencies and all of our individuals that have spent plenty of long hours on this project. So, thank you to everyone so far. Well see you all at project approval as, of course. You have to come back. Id like to spend a couple of moments with jack baer and fran well to allow them to speak about the project. Sthau, becca. Thank you for your presentation. We wanted to acknowledge the hard work thats been done to get us to this point. It has been a long journey on the mission rock project. 11plus years and with the jiens 23 years with the port. Weve had a longterm relationship and fortunately that relationship will continue for many decades to come. We worked effectively together as organizations with Mutual Respect and goodwill between us and we worked across the table from some very talented and smart people. Together we crafted a thoughtful project, even inspirational and it all started in 2006 when commissioner brandon chaired the task force to look at possible uses for this site. So i know a lot of us have been involved with this project for a very long time. I wanted to briefly talk about all the things that weve done with the community. We worked very closely with the neighborhood and a Neighborhood Organization and many people involved in the process are here today, not because anybody asked them to be here but because they have been active participants in the process and are interested in things Going Forward. We work with the Central WaterfrontAdvisory Group when the group that led the event are here today. The make sure Time Commerce advisory committee, i think ellen is here and i saw veronica in the audience. The south beach Neighborhood Group with katie ladell and alice rogers was here and bruce agate, dog patch neighbors, communitybased organizations and advocacy groups all throughout the city. Especially Affordable Housing advocates and park advocates. We have had a long journey together and i feel really good about it. Not only the relationship with the port, but the relationship with the community has produced a promise that im proud of. Weve worked hard with the sister agencies throughout the city. The Mayors Office of housing, the m. T. A. , planning department, p. U. C. , public works, contract monitoring division, city build. Josh arsay is here. Bcdc state lands commission, the department of environment and energy. It really has taken a village to get to this point. Were very grateful with the positive relationship that we have and getting start sod we can transform this part of the waterfront. Im also going to pass it to fran whos really been heading our project on a daytoday basis for many, many years who has spent hundreds of hours working with your staff and staff of the different city agencies. Good afternoon. Under the incredible leadership and vision, this group of people has been really an Extraordinary Partnership and had the pleasure of working with. Byron rhet, mike martin have provided wonderful leadership. Rebecca, of course, has been a great addition to the team. Together with dianne and dan, steven and kevin, we collaborated on the design and engineering that you see and all the documents that you had. We took two pieces of successful, statewide legislations to sacramento with brad benson and daly dunhams help. We developed the financial structure with Meghan Wallace and her team in the finance division. And, of course, have responded to countless media requests with renee martin. The inordinant number of hours that eileen, joanne, grace and rona have spend on the transaction documents we are very grateful for and not many people know that our mission rock team within the giants has almost lived out of the pier ones one day a week for the last several years. So, they have been incredibly hospitalable to us as we spent so many hours squating in your offices. [laughter] really it has been a huge team effort. And we just are very grateful and thankful to be here today. And happy to answer any questions. We have a great relationship with them dating back to the ballpark construction and working with the p. L. A. For this project as well. This really has been a great experience and one that i think we all feel good about being involved in. Its not always the case when you deal with a complex, difficult negotiation. It takes a goodwill from both sides and we really enjoyed that and enjoyed working with with you and your staff. Thank you. We turn it over to you. Thank you. Mike . [laughter] there is an almost celebratory aspect to this particular hearing and for good reason. You know, just as of a few weeks ago when i came