And it was sent by a committee to the full board with no recommendation. Thank you. Do you have updates for budget . I also wanted to say that the new school was presented, we put it forward with no recommendation and also wanted to let the public know that, at that meeting, the Budget Office shared a lot of helpful information about the timeline for the year, and i encourage folks, budgets are important, and i encourage folks to come out to budget meetings. It is the best committee ever. If they go online they can also see what we are going to be covering over the year, so that when we make decisions those things are not surprises. I encourage folks to come out. You can also reach out to me im happy to share with communities how were trying to make things more transparent for families and staff, how we make budget decisions. That will be happening throughout the year. There is lot of opportunities for folks. Thank you. Thank you. Do we have any board member delegate membership updates . Okay. Seeing then. Any other reports from Board Members . I briefly want to thank ida wells, and a few other schools that i went to parade. [laughter] all of the schools, the academy. I think i said them last time though. For having the other school sites. I appreciate the site tour, and the students at walden bird that took me on a tour of the school. Also, what are you doing here . I thought you retired . Oh, it was rita, my bad. You are not allowed to leave. Stay put. Commissioner norton . I want to remind everybody the Student Assignment committee is meeting on monday at 6 00 oclock. I am really excited about, i just did a planning meeting with ms. Okeefe who staffs the committee. We have some really good items on the agenda for this year, as we move towards redesigning the Student Assignment system. This monday were going to talk about particularly about diversity and different ways on how we define that. It really would be great to have attendance from as many of you that could make it. Im anxious to have as much as possible engage in these discussions before we get to an actual redesign proposal. Thank you. Anyone else . Im going to announce the next Upcoming Committee meetings. Budget and Business Services on wednesday, october 2. Rules policy and legislation monday, october 7 at curriculum and program monday, october 14 at 6 00 p. M. Buildings and grounds and services monday, september 23, 6 00 p. M. Committee on personnel matters, the meeting will be scheduled soon. Committee on Student Assignment will be monday, september 16 at 6 00 p. M. The joint City College School district, and board of supervisors meeting scheduled for october 11, friday at 10 00 a. M. That meeting will be held at the city hall. Section and, other information items. There are none tonight. Section o, memorial adjournment. There is none tonight. At this time we will take Public Comment for those who have submitted speaker cards were closed session items. Five minutes for Public Comment. Any Public Comment on closed session . Seeing none. The board will now going into closed session welcome back. Following closed session. We will resume regular board meeting. I will read the actions from tonights closed session. In the matter of the department of social services sfusd, Education School case number 2019060075, the board approve the stipulation to settle an early Education School license revocation matter. The board gave direction to general counsel. That concludes tonight board meeting. Good night. Shop and dine on the 49 promotes local businesses and challenges residents to do shopping and dining within the 49 square miles of San Francisco by supporting local Services Within neighborhood. We help San Francisco remain unique, successful and vibrant. Where will you shop and dine in the 49 . San francisco owes the charm to the unique character of the neighborhood comer hall district. Each corridor has its own personality. Our neighborhoods are the engine of the city. You are putting money and support back to the community you live in and you are helping Small Businesses grow. It is more environmentally friendly. Shopping local is very important. I have had relationships with my local growers for 30 years. By shopping here and supporting us locally, you are also supporting the growers of the flowers, they are fresh and they have a price point that is not imported. It is really good for everybody. Shopping locally is crucial. Without that support, Small Business cant survive, and if we lose Small Business, that diversity goes away, and, you know, it would be a shame to see that become a thing of the past. It is important to dine and shop locally. It allows us to maintain traditions. It makes the neighborhood. I think San Francisco should shop local as much as they can. The retail marketplace is changes. We are trying to have people on the floor who can talk to you and help you with products you are interested in buying, and help you with exploration to try things you have never had before. The fish business, you think it is a piece of fish and fisherman. There are a lot of people working in the fish business, between wholesalers and fishermen and bait and tackle. At the retail end, we about a lot of people and it is good for everybody. Shopping and dining locally is so important to the community because it brings a tighter fabric to the community and allows the Business Owners to thrive in the community. We see more Small Businesses going away. We need to shop locally to keep the Small Business alive in San Francisco. Shop and dine in the 49 is a cool initiative. You can see the banners in the streets around town. It is great. Anything that can showcase and legitimize Small Businesses is a wonderful thing. pledge of allegiance . Cell phones, pagers and Electronic Devices are prohibited. Any person responsible for the ringing of any electronic device. A member of the public has up to three minutes to make comments on each agenda item on the supPort Commission on any item. Item 8, Public Comment items notlessenotlisted on the agenda. Any Public Comments . Seeing none, Public Comment is closed. Item 9, public directors report. Good afternoon. Im the support director and first, i would like to update you on the fire station at pier 22 and a half, the expansion project. This will be the ports first floating facility and were excited about this important lifesafety project. We have issued the first of two in a series of Building Permits and Construction Activity is set to start this month. The project should be completed april of 2021. The initial work will consist of demolition of the existing finger pier and fire boat shed behind the historic firehouse and were anticipating a groundbreaking ceremony with oupour partners partner. The first is the American Society of Civil Engineers awa award. They have been elected as the San Francisco section and they will have an awards ceremony in the historic green room at the War Memorial Building and also, weve won the collaborative partners award. This is the Second Annual partners award taking place september 26, 2019. So its exceptional that our project team has won two awards and i would like to congratulate the following people. Twere very, very proud, both of the project and accomplishments. Finally, we have Coastal Cleanup day, a saturday. Please mark your calendars from 9 00 to noon and this year, the port is excited to join mayor breed, the public works department, public Rec Department for statewide cleanup day. We recruit a lot of volunteers to pick up debris. There will be cleanup crews at pier 94 and warm water cove. We are in a friendly competition with oakland this year and we need to pick up more trash than they can get. If you would like to know more for the battle for the bay and please go to the website. So the game is on. Mark your calendar and that concludes my report. Thank you. And congratulations to the engineering team. Is there any Public Comment on the executive directors report . Seeing none, ok. Item on the consent calendar, for members to travel to norfolk, virginia on september 13 to september 16 to attend the American Association of port authorities annual convention. So moved. Second. Is there any Public Comment on the consent calendar . All in favour . Resolution 1934 has been approved. Requesting the agreement with specific cycling incorporated, two california facilities as Foreign Trade 3 subzone for a term of five years with three options, the extent for five years each and outlining the conditions for the operation of the use its driven. Good afternoon, president brando. Im requesting approval of a Foreign Trade zone operators agreement with specific cycle. I want to provide some background on the Foreign TradeZone Programme and the history with the port. Foreign trade zone act was signed into law in 1934 by president Franklin Roosevelt to stimulate trade while mitigating against the nex negative of frao keep economy in the United States. A Foreign Trade zone or ftz, is a designated area considered to be outside of u. S. Commerce, allowing for benefits around duties and tariffs. The programme is administered through the ftz board by grantees like the port of San Francisco. It is important to note that when the programme started, Foreign Trade zones were brick and mortar locations at the port of entry. With the changes in international shipping, such as containerrization, the programme shifted to an alternative site framework. This allows grantees to expands their service area and for private entities to activate an ftz at their own location which no longer needs to be directly connected to a port of entry. The ftz board and u. S. Customs are wholly responsible for compliance and oversight of the operators which allows the grantee such as the port to offer this public utility to all of those that have been vetted by those two approved government agencies. The port of San Francisco was given grantee status for Foreign Trade zone number three in 1948. We were the third Foreign Trade zone in the programme behind new york, which was Foreign Trade zone number one and new orleans, which is Foreign Trade zone number two. The ports Foreign Trade zone originated on one of the ports piers before the change to the alternative change sitework in the early 2 thousands. 2,000s. It was to include five additional bay area counties. The port currently has five active ftz operators and users, all of which are within the expanded service area. Each operator pays the port and annual fee to cover the ports administrative coast. The port has no oversight responsibility on the actual Foreign Trade zone operation. The specific sickishly a global manufacturer and distributer and in january of this year, they reached out to port staff requesting to activate their california Distribution Centre as a Foreign Trade zone. Be its headquartered in madison, wisconsin. They used product and brands to promote an active lifestyle while participating in programmes that donate thousands of bikes to those who may not be able to afford them. The specific cycle imports products and materials to the port of oakland and would use Foreign Trade zone status to benefit from streamline processes associated with the Foreign TradeZone Programme. The support staff held several meetings with u. S. Customs at their vacaville location. Both have approved specific cycle for activation with the grantee which needs commissioner approval. The ports Foreign Trade zone number three falls within the scope of the Strategic Plan by sustaining Economic Vitality in the region and providing a public utility that supports the local maritime industry. Specific cycles Distribution Centres received approval from the two bodies, being the Foreign Trade board zone and u. S. Customs. Staff recommends approving this operators agreement with pacific cycle, allowing them to act as a specific trade zone. Thank you. That concludes my presentation and ill be available for questions. Thank you, a motion . So moved. Second. Is there any Public Comment on this item . Seeing none, Public Comment is closed. Commissioner gilmore . Thank you for your reports details someone who knew nothing about this. I have one question, which is, could we at some point have hundreds of these operators to the trade zone, specifically will whats happening to at the National Level . Could this be a new source of helping folks do this here in the United States . I mean, its built to be a public utility offered to anyone that is approved by u. S. Customs and the Foreign Trade zone board with an actual Business Case to work. And then as the grantee, we can decide if we have a reasonable factor to not allow them to go and do business as a Foreign Trade zone. But to answer your question, we havent seen that many. Maybe i can explain. This is because some imports and they intend to of course port immediately. Its not to, for an import that is for a business consumer in the United States. So if its going to be reexported, theyre trying to simplsimplify the process. The fees in your report is all whats paid in the report. Is that correct . Yes. So that covers overhead. Yes. Weve reviewed many, i think, in the past and seems like its not really lucrative to us but its a god thin good thing for the or and to promote trade. Thank you. Vice president adam. Im supportive. As am i and thank you for this report. All in favour . Resolution 1935 has been approved. Item 12a, informational presentation on the phase one budget, parks plan Management Agreement for the mission work project at 337 founded by china base channel, third street in San Francisco bay. I feel really happy that im the presenter and thank you for letting me do this. The informational item the phase one budget and the parks for mission rock. We anticipate coming back on september 24th for action on these two ims. Items. Back in 2009, 185 allowed fort explore this mixed use neighborhood by relaxing and trusting restrictions on the property and were here ten years on with the first Port Commission action item, which would allow implementation of phase one. Really important milestone for the project and i want to note that we signed the transaction documents in august of 2018. Those transaction documents include the development and dispostion agreement. The phase one budget and parks plan is a part of the transaction documents and its sort of is during the last year work on implementation items including basis of design for the entire site, a number of mapping, permitting utilities, street design types of activitied and those are going through the board and other city agencies, the Port Commission, budget and parks plan are two implementation items. The mission rock site is 28 acres outlined here in this slide. At full buildout over the four phases, we anticipate 2. 7 to 2. 8 gross feet of development, including 1200 Housing Units, 40 below market rate, affordable, a million, a little bit more than a million, up to a million four of office, 240,000 square feet of retail and 240,000 square feet of retail space in pier 48, the overall project design. Phase one is in pink on the righthand side which would include 560 rental units shown kiddy corner, pa parcel a exami, 550 square feet of office delivering the local hire and 20 lbe commitment. Just the 5. 5acre park, i cant stress how much of a major benefit this is, more than twothirds of the open space and parks all delivered sort of on the backs of these four parcels, all in phase one. Looking back at approval, the primary changes that have occurred from what was anticipated at phasing, at approvals is that parcel f was swapped in to swea develop more Housing Units and geotechnical solution, with what was anticipated for the fill site to solve and really mitigate any anticipated settlement was pile supported streets. The now preferred and approved through the city with conditions geotech solution is lightweight cellar concrete. Cellular concrete. How much do these city blocks and 5. 5acre blocks costs . The cost for phase one approved through the budget process in the next meeting is 145 million. The total for phase one is almost 175 million, adding an developer return is up to 265 million. Phase one balances because of the sources that are identified, the first of which is the 42. 2 million in net land revenues, we call them Development Rights payments referring to the four parcels, prepaid 75year leases, also a known number. That number is derived and based upon the appraisals of those sites. The bonded here are the key Public Financing sources and this is issuing community facilities. Its based on the completed plan and building and the row in that charge is the ongoing tax payment not to the debt payment. So we have a balanced one phase budget. The cost that you see in phase one are arrived from a competitive bid process the competitor went through. The port has a thirdparty cost estimator who reviewed those and found them to be reasonable. Thy include china bases and park, resulting in 18 million in hard Cost Increases. Cost cost isoft cost is a couplf factors. This is sort of a typical budgeting procedure. The soft costs have come in higher because we have costs from contractors who provided byes to design some of the work and the second key factor is that phase one has shouldered a lot of sit sitewide design wor. The basis has been done sitewide. The mapping, the tentative map has been done sitewide as the utility systems. The costs for phase one are higher than for approvals and higher as a ratio than subsequent fay phases because of this work that has advanced. I spoke earlier about the 5. 5 acres of parks, eight city blocks and we have a couple of different aspects i want to bring to your attention. First is unique street network. We have what we called shared public ways. These are streets that are designed to slow down traffic and have more pel pet friendling to china basin park and two districtscale sustainability measures and there will be a District Energy system serving the entire site to reduce energy needs through Heat Exchange similar to what they use at thet exploratorium. We have the lightweight concrete, the geotech solution, a lake merit project done recently used in cases to recues settlement because youre reducing heavier soil with the concrete to ensure streets over time arent settling and having the types of any types of problems in this fill circumstance. Also, of course, the 5. 5 acres of parks and open space. This shows sort of just outside of the tabular format how the uses and sources measure up. This is because of the Cost Increases weve seen for construction and we anticipate higher assessed values and thats bad because that drives down land value but its good because we will have more taxes from the buildings to use to support the Public Financing sources. We are getting closer to issuing a bond. Were now months away, we think, from issuing a bond and we can zero in on what we think the Interest Rate will be and they are lower than anticipated at project approvals because at project approvals we had an average bond Interest Rate and now that were getting closer with the office of public finance, we can project the Interest Rate will be lower. Overall returns to the port, interestingly from project approvals have gone down slightly from 198 million at approval to 190 million. This is ow on a net presence bas and you might recall much of the revenue it comes from a variety of source. Some from leases and tax proceeds not needed for the project. Across the four, we project an 8 million decrease in net value terms, primarily driven by the second part of the bar chart. This part of the bar chart, the 58 versus the 40 million is derivederived from lower land v. When we have lower land value, we loan that land value to the project and get repaid from Public Financing sources in the future for that loan and we anticipated that loan at project approval to be 58 million because of decreased land value, we think it will be 40 million. All of these projections will provided with assistance from our thirdparty economic consultants. In conclusion, were looking act the staff report and based on that review and the work with the thirdparty economic consultant, it does balance and we want to note that balance relies on the budget approvals, including a couple of dust items. First the mixedused impact of thiimpact isimportant. We have a subsidy anticipated between 135 to 181 million. This is a unique feature of the project, that they will go together. The developer has proposed and weve agreed, contingent on your approval that 1. 7 million of the entitlement cost is allocated to a future phase at a 0 return. A measure to make sure the budget balances, subject to a future approval for phase 2, 3 or 4. The Port Commission would allow us to repay the entitlement sum, 1. 7 million of the entitlement cost with that cost accruing a 0 return starting last year and this is a good benefit to the port. The last item is that the cfd taxes i mentioned earlier, based upon the higher tax increment, the developer has propose aned d we think its beneficial to increase them on 20 on commenter and 15 on residential. We think the tax increment was conservative and we can now increase the projection based on what we think the billing buildl be assessed at. This is the phase one that we anticipate, once we get into implementation. Its important for us all to be aware as we take these next implementation steps that we are a true partner in the Public Private partnership, that. The development project. Many of items ive mentioned are projectioned. We do have risks around these projectses. Projects. We form the district and were able to issue the bond, assuming the mark is still respective and we anticipate we can get those sold and the Interest Rate at time of sale is known at that point in time. So that risk is a risk for the next six months until this is affect waited. Uated. Theyll receive a return on every dollar and thats a big incentive for them to control their costs. And i want to pause here and turn over to the parks and open space plan and well all be available for questions on the budget or parks plan. Good afternoon, president brandon and commissioners. Port staff have been working to develop the parks plan for almost six months but i should acknowledge that this park has been well in the make for close to a decade. This network of open space will certainly as a regional waterfront destination for our portfolio. Its location is a key intersection where a Historic District needs a greenway chinabasin will serve to a series of parks in the southern waterfront and a symbolic evolution of the role towards a waterfront open space. In summary, the park plans sets forth how it delivers activation. It includes 5. 5 acres at china basin park, an acre at Mission Rock Square and remaining one and a half acres in channel street, channel lane and the wharf. We have executed several documents that lead us to the parks plan. Two are the Development Agreement and the permit the Development Agreement requires that the parks plan be approved prior to or in conjunction with the phase one budget. Botboth will be before you for approval on september 24th. The management and concession agreement and the phase one parks design will be presented to the Commission Later in the fall. This slide provides an overview of the parks and openspace goals. In summary, we aim to deliver vibrant, well managed parks that are welcome to all. We ensure that the park is selfsufficient and we aim to foster responsiveness to storieds anstoriedstakeholders n reestatrealestate value at the. In order to achieve these goals, port staff recommends contracting with a single Management Entity for the management of the park. This is advantageous to focus on tight management of the parks, immediate neighborhood engagement, Leverage Private investment for public programming and intense public maintenance of the parks and allows for collaborative management while ultimately maintaining port control. While the mechanics of the park and how they are managed or customized, the far park will be incidenintegrated into the manat of the parks. It will have a variety of responsibilities that will be memorialized through a concession agreement and vary from daytoday responsibilities, such a coordination of maintenance and security crews, to programming and special events. Annual responsibilities will include delivering key documents such as the operating the operating budget and the performance report. Both of which will be subject to port approval. The parks plan identified periodic responsibilities that include Housing Community meets and coordinating with port staff. The Management Entity will manage the following concession opportunities, two restaurants, four retail kiosk and one rental kiosk, estimated to be 7,000 square feet in space. As you know, programming and activation is a key been provided through this parks plan. Its envisioned this plan will occur at china basin park and Mission Rock Square. This slide shows examples of what small, medium and large events would include, such as salsa in the park, yoga in the park or childrens reading programme. Media events may include large concerts or seasonal activation. On pages 2122 of your staff report, a detailed matrix outlines the number of events that can occur within the park. It should be noted that medium to large events cannot exceed more than 100 event days in each of the spaces. Of those, 24 can be ticketed and 18 can be private additionally, the total number of paid ticketed events and private events cannot exceed the number of prePublic Events in the same fiscal year. This provides the operating budget at the closeout and we project well have a 5 million operating budget. Revenue keys for maintenance and utilities and for programming and other expenses. All revenuegenerated on the parks will be subjected to the following allocation. First to budgeted operating opeg expenses and to Capital Repair reserves and to the extent the capital reserves are funded, they may be al lowe low kateed e fund. On the phase one budget and parks plan, i want to mention the district scale blackwater treatment plan and District Energy system is proposed to be run by a nonprofit entity that would run those two systems. In order to support the formation of that nonprofit and with support from sfpuc, we will be presenting a resolution of support for nonprofit status for this entity. This will help them to get lower cost financing to build facilities within the buildings and they would then be able to charge lower better rates to the utility customers, being the apartment dwellers as well as office tenants. Those will be provided on september 24th. Scenscenesubsequent to that, wee work on park Design Review anticipated for early october p. Then schematic Design Review through advisory committees would come back to the Port Commission for approval in december. Prior to that, well be working on the parks and open space agreement. The contract between the port and Management Entity to manage parks. We anticipate coming back for that item in october. And that is the end of the presentation. So looking forward to Public Comments and all of use comments. Thank you. We have one Public Comment. Bruce edgett . Good afternoon, executive director for berks s, president brandon, commissioners. My name is bruce agette and im speaking in support of the Mission Rock Development. For identification purposes, im a native, a tenyear resident of mission bay and a rep on the south neighborhood association. Over the past seven years, i have worked to be involved in the planning process for the Mission Rock Development. Together, we provided input on this project which helped to shape the project we see today. It strikes a delicate balance on the amount of parks, desperately needed housing, neighborhoods serving retail and office space. This brought together an amazing and Diverse Group of experts to fine the optimal mix of Land Services mixed land uses providing neglect to ensure success and delivery of her project. As important the elements of this project, the developers are key. The San FranciscoGiants Organization will enfir inspire. The open space is a perfect example. We provided input to the components of the open space and to ensure was included in the first space of the development. The giants listened and found a way to make it happen. Just a few months ago, we were invited to provide additional input mission bay is a developing community. Housing is being built but as we know, its the activated open space, retail, services, activities and restaurants which create community. We see this with stage coach greens, miniature golf and a wakwalk along area on fourth street. It is crowded and at capacity. When mission bay and mission rock are built out, we will have 8,000 residences. The 6. 5 acres of open space provided in mission rock will fill a need, helping to create and enhance a development a vibrant community. We see this throughout the city and this is what is needed here. Movie night nights, marketing ay other activities. With this said, we have a parking lot and community desert on the waterfront. Please provide the necessary approvals allowing the Mission Rock Development to move forward. Any other Public Comment on this item . Im director of the contract division. First of all, i want to thank the commission and staff for their continued and strong support of the lbe community and participation. I, too, like many here have been working with the giants and the ports since 2008 on this programme and i want to make sure that you all know that mission rock team and in particular, phil and boris and bosco and his team have been particularly dedicated on getting all of our lbes as much as possible on to this project. I wanted to let you know that have shown a full commitment on trying to get more transportation, especially as we move from the planning stages to more of the actual vertical and buildout. And again, i just wanted to thank you again and well be working continuously with the mission rock team. Thank you. Thank you. Are there any other Public Comments on this item . Good afternoon. Director forbes and president. Im the director representing the office of economic and Workforce Development and i want to thank you and your support of the programme and give you a quick update. With the work weve been working with the giants and mission lock team and a lot of exciting developments, not just to help with the citybuild economy that trains sa San Francisco residen, preparing them for construction work, but we are using this opportunity to supplement whats currently going to expand our programme. As the mayor has said, we dont want to leave anyone behind, through our partnership and efforts, looking at new ways to develop more training so that way workers in and out of the programme are ready for the work happening in mission rock, not just for this development but the expansion happening that will be happening at the port. I want to come up and say thank you for your support and i want to acknowledge not just the support of the programme but myself, my growth and i appreciate all of the leadership that you have been providing. So thank you. Thank you. Any other Public Comment . Jack, i know you wont miss this opportunity. [ laughter ] i generally subscribe to the view and you stay seated. [ laughter ] bull i will say this has beea 13year odyssey weve been on, surviving an economic downturn. Weve won an election and plotted through a very complex and seemingly neverended approval process. And now were on the verge of finally Getting Started with this project. And i think its an appropriate time to express our appreciation to our friends and partners at the port. And there are so many people, and i cant thank all of them, but i would call out you, commissioner brandon, and ann lazareth who launched this back this 2007, the leadership of director forbes and the support director and mike and becca and phil and all of the Staff Members that worked for a decade. A partnership at this complexity requires smart, dedicated people and we have this on this transaction. I think it shows in many different ways. I think it will manifest in what we build and the community that we have. At mission rock. I want to say thank you to everyone and including our neighbors. I saw bruce speak. I know alice is here and a special thought to corrin woods and she was insistent about the park in phase one and won that battle. Thank you. Any other Public Comments . Seeing none, Public Comment is closed. Commissioner . Well, i think that i have been here not for the entire journey, but since 2011, sit hat has been a long journey and weve had many discussions as phil can attest to at the commission and its staff and with the executive directors in the past, as well as the current one. So its taking us a lot of effort with the giants and jack and now tishman buyers. So i want to commend to everyone that its detailed. There have been changes along the way, but weve figured out how to deal wit changes with th. We cant wait for a brand new neighborhood and to complemen ct what the changes are doing. He was able to give a clear, clairvoyant vision of why this is what the giants proposition is San Francisco is all about. So its not viewed as a standalone real estate project but to build a neighborhood around the park and thats commendable as we look at mission bay as well as the ballpark and fills a gap and the fact we will continue in the later phases to provide the parking and whatever we need and transit interim policies of how we will handle that. So i think its better to see the entire concept vision and not just look strictly at the project itself. Obviously the Affordable Housing is needed and addressed in phase one and we should thank corrin on vision on the parks and weve had vision to say theyre a part of the development in any phase of our development to have it upfront and the Public Benefit is there. I think weve hit all cylinders but its taken a long time to get here and we appreciate that. My only question, rebecca, on the developer return, do you know what the number was originally before we had this increase in cost . Do we have any idea what the original amount of return is and i hope the port gets its return because weve been waiting for a long time. Thank you. And im hoping raven will save me with the number. The return metrics continue to be the 18 around return or 1. 5 invested in phase. Theyre projected to get a 90 million return, based on the peak equity and when the bondses come in. Do we know what the return number was . Thank you so much. So project approvals, their return was estimated to be about 40 million. And the reason its going up, the hue higher cost and anticipd pace of paying them back, we think theyll be outstanding as the bonds come in, from the land bonds and i think theres a third round of bonds as the buildings go up in value a couple years after their completed. Just remind me, in the ports return will be . The ports return will be for the whole project will be 190 million down from 198 million. And the reason for that reduction is that the land value in phase one and projected lan value on the difference between Construction Costs and the value of the building has gone down and as theres less land value going into the deal, the port will get that land value back on the backend and were getting what is equal to that land value and has gone down over time. The fact that more residential upfront in an Office Building would increase that . The more office at this point in time, and as a part of the economic cycle, office is more valuable than residential. Phase one is balanced and theres more residential than we anticipated at approval. The s building is larger than the k building, so providing about 100 units additional to what we anticipated at phase one in approvals. So more residential means less land value as well, as just the dynamic were seeing through the appraisals of these sites, is that Construction Costs have gone up, that the residual land you have has gone down. I want to make a comment to what you said, this will be an actively open space and just wont be developed and the public comes and enjoys it. Its important and were going to be looking forward to see how that set as new model to be an actively programmed space and it is going to continue to be under port jurisdiction, under this joint venture agreement. So thats also exciting to go forward. Thats all my comments. Thank you. Commissioner gillman . To. Thank you. As the newest member of this commission, im excited that i get to be here to help bring this project home. Im excited to see this project get off the ground and moving. I want to commend the team again because in 2015, there were few developers will doing 30 affordable and the giants helped to set that bar for the stars thastandards that we have today. Im excited to see the frontloaded in phase one. I just had one sort of question, comment. I just want to make sure that we put safeguards in around the use and activation of the park. I agree with the commissioner and im very supportive of the activation, both Public Events and paid events. But i want to ensure that folks moving into the residential portion dont have buyers remorse and that we five, six, ten years from now have folks coming to us about the deactivation. I hope it will do due diligence. Let the new neighbors know the existing neighborhood is supportive, just so that everyone goes in with their eyes wide open. I think its important to have this much of the park activated with a variety of things and im very supportive of it. Vice president adam. I have to tell you, one thing about a good presentation is how many people say, um, and not one time did you have any ums in your presentation. [ laughter ] it was very fluid. You knew what you were talking about. A lot of time people use the word um a lot. Jack, you beat me to the punch talking about corrin. She was the conscious of this commission and a lightning bolt. This is sopl