Objection. And item one. Item 5 a submitted voter so for the planning code to require the conditional use authorization for the distribution and repair for the institutional and acts use and replacement space. Thank you and so at this time we held a special rules Committee Meeting really just to be able to entertain the amendments that were made at the last rules Committee Meeting id like to invite april to come forward if you want to say anything otherwise this is a procedural hearing we have today. Ill make my remarks brief thank you commissioner tang and to supervisor farrell for sitting in for supervisor cowen very much appreciate the special meeting we can consider the amendments i think the legislation that we have before us has been considerably improved was of the rules committee praerngs and is participation of the public and thank you very much. Thank you okay seeing no questions or comments open up for Public Comment so if anyone wants to come forward to speak okay. And now a motion to the full board as a does she property for july 26th. So moved and send out without recommendation and okay without recommendation and without objection mr. Clerk, is there any additional business to come before this body . No more items madam chair. All right. This the meeting is adjourned the office of controllers Whistle Blower Program is how City Employees and recipient sound the alarm an fraud address wait in City Government charitable complaints results in investigation that improves the efficiency of City Government that. You can below the what if anything, by assess though the club Program Website arrest call 4147 or 311 and stating you wishing to file and complaint point Controllers Office the Charitable Program also accepts complaints by email or 0 folk you can file a complaint or provide Contact Information seen by whistle blower investigates some examples of issues to be recorded to the Whistle Blower Program face of misuse of City Government money equipment supplies or materials exposure activities by city clez deficiencies the quality and delivery of City GovernmentServices Waste and inefficient government practices when you submit a complaint to the charitable online complaint form youll receive a unique tracking number that inturgz to detector or determine in investigators need Additional Information by law the City Employee that provide information to the Whistle Blower Program are protected and an employer may not retaliate against an employee that is a whistle blower any employee that retaliates against another that employee is subjected up to including submittal employees that retaliate will personal be liable please visit the sf ethics. Org and information on reporting retaliation that when fraud is loudly to continue it jeopardizes the level of service that City Government can provide in you hear or see any dishelicopter behavior boy an employee please report it to say Whistle Blower Program more information and the whistle blower protections please seek www. Twere live. Good afternoon, ladies and gentlemen. Welcome back for another session of the land use and transportation committee. My name is malia cohen, chair of this committee and to my right is supervisor scott wiener, the vicechair and to my left is supervisor aaron peskin. Our clerk is victor young, yes. And i also want to recognize Jessie Jim Smith and leo who are televising this meeting on sfgovtv. Mr. Clerk, do you have any announcements for us today . Yes, please science all cell phones and Electronic Devices and completed speaker cards and documents to be completed as part of the file should be submitted to the clerk. Items acted upon will appear on the august 16th, 2016 meeting of the board of supervisors, unless otherwise stated. Thank you. Could you call item 1 . Item no. 1 resolution authorizing the sublease between the city and county of San Francisco, as tenant and sublandlord and the crossroads as subtenant. Of 4124 rentable square feet in the building located at 167 jessie street for an initial term of five years. Thank you. So colleagues, today we have mr. Brian chiu to present on this item. Mr. Chiu, the floor is yours. Thank you, supervisor. Members of the committee, as you may recall back in january of 2015, you approved the city entering into a lease for this space. At a time when we were eagerly looking at opportunities for the city to be able to provide some Additional Space for our nonprofits and as you may seen in todays examiner, were very excited this is one of those opportunities. Back in 2003, the initial landlord for this space, third and Mission Associates entered into agreement with the California Historical society, a 99year lease as part of a restructured deal with what was then sfra and what became the Office Community investment and infrastructure. About ten years later the California Historical society decided that they did not need the entire 15,000 square feet. And was going to return that to the landlord, the ocii commission rightfully was concerned about the loss of nonprofit space. And so as part of that agreement, the landlord agreed to enter into an 87year lease with the city for approximately 4,000 square feet of unimproved space along with that there was a portion of the payment that was going to come to the city, characterized as Community Block grant income, which would allow for the Capital Improvements necessary for that space. So the city agreed to enter into that longterm lease for a dollar a year with the landlord. We then worked with our colleagues at oewd to come up with a process to identify the appropriate nonprofit for that space. We wanted to line it up with the recommendations that came out of working group on nonprofit displacement. And so we issued an rfp in september of 2015. We distributed information about that through the Human Services network and many city departments. 25 different nonprofits indicated interest in utilizing that space. Two different nonprofits completed applications and after review, the city determined that the Youth Organization at the crossroads was the best organization to utilize that space. Since that time, in the fall, at the crossroads has been working to finalizes sublease agreement and we come with you to authorize the lease between the city and at the crossroads and propose to ent near a fiveyear lease with one fiveyear option to extend the term of that sublease. Were very excited about at the crossroads in particular, because of its focus on reaching out to Homeless Youth and young adults. As some of the you may be aware at the crossroads is really a National Leader in services to the Homeless Youth population and they are going to be offering oneonone Case Management services at that site. As many of you may know its becoming increasingly more and more difficult for us to identify spaces for these kinds of direct services, and so were really excited that were able to provide this for at the crossroads. Im here to answer question and were joshua from department of real estate and the executive director of at the crossroads. I would like to ask rob, if you wouldnt mind to come up and make a few comments . Thank you so much. Its incredibly exciting to be here. Two years ago when prada bought the building and let us know they would not be having our lease renewed and we faced an uncertain future terrifying for us and terrifying for our clients. For the last 18 years our organization has been helping young people street San Francisco with the focus on those kids falling out of of services. We dont have the option of moving out of city for cheaper rent. We need to be right where our clients are. When this opportunity presented itself, it was basically like a dream come true. When we were selected we were overwhelmed it was the singlemost important moment in our organizations 18year history. It will allow us to help every year more than a thousand young people in San Francisco get the support that they need to move beyond the streets, and build outstanding lives. A lot of our office use is going to allow us to expand the money that we save with the space will allow us to reinvest in the young people that we work with. I just want to thank a couple of people, josh keen from the department of real estate. I want to thank brian chiu from mohcd and oewd and bill with related the owners of the property, and the nonprofit displacement mitigation fund. But i just want to say thank you for this opportunity. Were really thrilled to have it. Thank you for your presentation. Mr. Chiu, is that it . All right, colleagues, do you have any questions for mr. Chiu . Lets go to Public Comment. Ladies and gentlemen, if you would like to come and speak on item no. 1, please do so. Just by way of reminder you will have two minutes. Will you hear a soft chime indicating that you have 30 seconds remaining. All right, seeing no speakers for item 1, im going close Public Comment at this time. Thank you. [ gavel ]. The matter is in the hands of this committee. I would move that we send this item to the full board with recommendation as a Committee Report. All right. Thank you very much. And without objection, that motion passes unanimously. [ gavel ] mr. Clerk, lets bring up item no. 2. Item no. 2, ordinance amending the administrative code to revise the residential unit conversion ordinance to require hostion platforms to verify that the residential unit is on the city registry prior to accepting a fee for book a shortterm rental transaction and to provide an affidavit of compliance to the city and retain Certain Records authorizing the office of shortterm rentals to issue an administrative subpoena to obtain records provide for civil, administrative and criminal penalties against hosting platforms for violations of their obligation. Supervisor peskin has opening remarks. Thank you, madam chair and supervisor campos who is the lead author of this legislation, which is really a series of technical amendments to the shortterm rental enforcement legislation that supervisor campos authors and coauthored with supervisors mar and avalos and i just wanted to make some remarks about the ordinance. Which is pretty straightforward. Is still to require that hosting platforms do business with lawabiding hosts and ensure that they are not aiding and abetting scofflaws who are further deteriorating our housing stock. Its modest commonsense legislationing and i think its fair for everyone and for lawabiding hosts and fair for San Francisco. Most residents want to give our shortterm rental law a chance to work, but san franciscans wont be played for fools forever if shortterm rental platforms persist in keeping our law unenforceable. After confering with the City Attorney about airbnbs legal amounts that after they filed litigation on the law we passed last month, it is our desire to simultaneously address for this needed regulation or if there real motivation is to continue to flaunt our tourist rental laws with impunity. At the end of the day, the board didnt pass this ordinance to litigate over the scope of federal law. Our intent is to make San Francisco shortterm rental law enforceable and fair. These amendments aim to accomplish exactly that by simply making language more precise by making modest changes in Record Keeping requirements and by tailoring enforcement to work through administrative subpoenas rather than a publication option. I want to thank Carolyn Goosen and she is here from supervisor campos office if you have any questions as is deputy City Attorney jon givner. That is it. Thank you very much. Supervisor peskin, question through the chair, in terms of amendments, i have heard that this will not necessarily apply to all shortterm rental companies because of the way its structured. For example, a company like vrbo, can you comment on this . Because this has been reported to me . Insofar as that it ised at the point of sale is that the argument you are making through the chair . Why dont we defer that to ms. Goosen. Welcome. Carolyn goosen, supervisor campos offices as deputy City Attorney givner wants to add to this, but the way San Francisco defines web [tpaorpt ] one that facilitates advertisement of units, but is involved in any kind of business transaction related to it. So clearly craigslist is one company not included in how we define a web platform, but other companies where there is a business transaction that occurs between the platform, for example the way airbnb does it that company is relevant under this law if there is a business transaction plus the advertising. Supervisor peskin has an answer. If you look at section 41a4 line 4, the definition of booking service, i think it actually would apply to all platforms. A booking service is any reservation and or Payment Service provided by a person or entity that facilitates a shortterm rental transaction between an owner or business entity and a perspective tourist or transient user and for which the person or entity collects a fee in connection with the reservation and Payment Services provided for the shortterm rental transaction. As i understand even these platforms that in essence charge for a listing, i think that they would be covered under that definition, but i will defer that to competent counsel. Deputy City Attorney jon givner. I dont frankly know exactly how vrbo operates. The ordinance as supervisor peskin says would apply to booking services. Which is basically those that collect a fee in connection with reservation or Payment Service. I think ms. Goosen is correct that craigslist does not collect a fee with a booking service. I cant say vrbos business model. Thank you for the clarification, supervisor wiener. I asked the question, because i think its important when regulating shortterm rentals that were regulating as broadly as possible and not regulating some companies and not other companies because different companis have different structures. But they are all facilitiating shortterm rentals and for all the good reasons that we want to regulate them it should apply to all shortterm rentals. This measure that this amended, that i voted for, to try to increase enforcement because we want people to comply with the law, to the extent that the amendments were to contract that and basically exempting out Certain Companies and focusing on other companies; that would be an issue for me. I would be interested in perhaps this is a Committee Report for tomorrow, is that correct . Yes. Perhaps by tomorrow trying to get a better sense for that. Because i know this came up i think 30day waiver and it sort of moved quickly, which i understand why because the litigation, i presume. So i would like to have a clearer answer to that. So maybe we can get deputy City Attorney and supervisor wiener together. Were going to continue to move forward. Ms. Goosen, did you have a presentation prepared . No. Lets go to Public Comment. I have a stack of the cards here. Dale carlson. Jim lazarus, peter quan, ed bell. Dan nu feld. Rodolpho. And karen cansino and if there is anyone who would like to speak, you can do so after the folks that i have called. Thank you. Dale carlson, share better San Francisco. They have traditionally used a subscription model to pay an annual fee to List Properties on their website. They are moving to a model more similar to airbnb and they are too going to be taking a commission, a percentage of every rental. I think its ironic that were here today. Give that airbnb spent 10 million last year telling us how much they hated the idea of neighbors suing neighbors. Here they are suing us. Their hometown neighbors. Portland adopted similar ones on their listings long before San Francisco and airbnb didnt raise a squawk and spent 10 million bragging about the Hotel Tax Revenue that they pay to the city each year and admonished us not to spend it in one place, but now to spend it defending the ordinance that you passed unanimously. They are telling us that they are only in business to help home sharers, legitimate home sharers, simply trying to make ends meet and thrust of the their lawsuit is clearly intended to defend the people violating the law that you passed two years ago, who are not complying with the Registration Requirements and they are using it and they are using the First Amendment to defend their practices. Maybe we should buy some bus shelter ads of the our own . Dear airbnb, the First Amendment does not protect aiding and abetting, love the founding fathers. Thank you very much. Thank you. Next speaker, please. My name is peter quan the cochair of the home shares Democratic Club. Supervisors the reformation of this platform Liability Law that is being considered today attempts to sidestep the legal flaws of the first version, instead of making them liable for posting without a valid registration number, this new iteration instead imposes liability puting aside whether this dodges the bullet regarding federal law. This new version is not achieving the results it seeks. Platforms at home away listed rentals for hosts, a Subscription Service as the previous speaker described it. Many cases the booking itself, the contractual relationship and agreement on dates and rates, these are entirely between the host and guest, home away simply facilitates the transmission of the basic information and payment mechanism. So if platforms at home away dont accept or conclude bookings, they wont be liable under this new version of the law being considered. Hosts who want to avoid legal entanglement will simply migrate away. We think there is a better way ahead. Everybody agrees that the goal is to increase registration rates to maxing maximize the compliant hosts. It is legally flawed as i said and to look at ways that the current Registration System can be improved to remove roadblocks and increase incentives to register. The home share Democratic Club has proposed reforms that we believe is a more productive approach to increasing the registration rates. So we urge the supervisors to consider this approach rather than one that in all likelihood will shift from one platform to another. Thank you. Next speaker. Good day. My name is karen, a registered host that has submitted all required paperwork. Do you recognize me . I have been coming up here for two years and im getting tired of seeing you all. So im hoping that well get this resolved soon. I could have decided not to come, but feel Strong Enough to come to represent registered hosts who cannot be here because of work or family responsibilities. It is quite obvious that each new requirement is an attempt to squash home sharing. Its creating a law by piecemeal the best way. Hosts are not registering; that is a fact no one disputes. They are being unfair to those of us who are. But i can understand their hesitation as the citys reaction. I can envision opponents around the table trying to think up what next can be regulated to discourage home sharing . Our hosts from becoming legal . It is time to give it a rest. Put politics aside, focus on solutions already suggested, applying reservation and giving potential host a tryout period and ferret out abusers. It continues to grow. Citizens defeated prop f, please listen to the majority of San Francisco voters rather than grandstanding politics rather than Civic Responsibility govern your vote. Driving out homeshares will make the city even more only for the wealthy. Thank you. Thank you. Good afternoon. Im jan nu feld in district 8 and im a homesharer and homesharing helps me be able to pay my mortgage and live in the city and place that i want to be. My 18th street merchant neighbors also very much benefit from my guests and many others who come to the area because of the desirability of that territory. It seems clear to me that the proposed amendments would only push bad actors to other platforms. Lets not do that and please read what homesharers have put together and work in that direction, rather than being political as was just mentioned. Thank you. Thank you, next speaker. Jim lazarus, San Francisco chamber of commerce. Last time we were here we raised the very issues that you are trying in a small way with the advice of the City Attorney to correct and legal questions visavis federal law that were challenged in the legislation you approved a few months ago. Getting people registered and having a registration process that works and lets not beat around the bush and come up with 6,7, 8, 9, 10 different amendments. This was cuttingedge legislation three years ago, but where it filed is a process that allowed the average citizen to feel comfortable and understand how to be registered. What the exposures are . How to manage the system . That is what you need to be dealing with. Having multiple pieces of information about your residence. Having to come in in person in an online era just makes no sense. If we want people registered get them registered in a modern 21st century way. That will fix the vast majority of problems. And lastly, that very complicated series of articles in the chronicle yesterday i think the bottomline to that is our housing crisis in San Francisco is not and should not be fought on the back of homesharers in San Francisco. To spend as much time trying to maneuver through zoning changes, density bonuses, some have you have solve, accessory units and some you havent and lets solve those and get on with building San Francisco. Thank you. While the next speaker is coming up, i want to note that the quotes in the piece from the chief economist at zillo to the effect that some of the shortterm rental behavior in San Francisco is exacerbating the housing crisis should not be overlooked. Next speaker. Hi. Ed bell. I live in noe valley and lived in San Francisco for almost 60 years. I am a host and list through airbnb. Last year i told my wife we would have to sell our house in july of this year and leave the city we love and join the hundreds of families that can no longer afford to live in San Francisco. I am happy to tell you my house is not forsale and i have currently no intentions to selling due to the income generated through heir incumbent. Airbnb. I have tried to convince several of my senior friends to become host and almost all afraid to get involved in the computer interaction mandated by the city of San Francisco. Airbnb should be rewarded rather than penalized. Last week i filed my occupancy report the computergenerated report [speaker not understood] and a friend of mine owns a business selling toxic chemicals and doesnt have to report which days his business is own. I share a bed and pillow in my home and why do i have to file these reports when he doesnt . Why is the city changing my requirements . I believe these actions disproportionately affect senior citizens. I hope you keep your senior constituents in mind and vote accordingly. Help people like my wife and i hold on to our homes and stay in the great city of San Francisco. Thank you for letting me speak. Thank you. Next speaker. Hi, im the other cochair of the home sharing group and i want to thank the supervisors who took meetings with us to talk about the improvements. Supervisor peskin did not return our calls unfortunately, but were happy to meet with you still. We produced a 7page report and met with the office of shortterm rentals detailing what we think could make it easier for people to register and maintain registration. In addition, its not just office of shortterm rental, but involves the Tax Collectors Office as with the as Assessors Office and were going to be meeting with the Tax Collectors Office this week. We have a lot of detailed suggestions about improvements. We also think there are a couple of legislative amendments that could make it more inclusive, so that more people could come forth to register. We hold monthly workshops on registration we have tried to share this with the supervisors. We would like to share it with you, too, mr. Peskin and we think that the law could be improved so more people can come forward. Were all about maintaining longterm housing and helping people who really want to stay in San Francisco. I would like to add, because i use vrbo, as well as airbnb and they use a thirdparty for collection. We would be happy to meet with the City Attorneys office to provide more insight on that as well. You were all emailed the report, and unfortunately over the weekend, we didnt realize the process would move to quickly, but you are welcome to call us and invite us for more details. We have a lot of the input on this. Thank you for listening. Thank you. Next speaker. My name is tony robles and i work with seniors and people with disabilities with an Organization Called senior and disability action. Im just taken by all of the talk by the socalled homesharers, and homesharer platforms that ring philanthropy and we have seen the effect on housing stocks and neighborhoods, whole blocks that we have seen evictions and people using these shortterm rentals as a business model. And at the same time, it has had drastic effect only on the health of seniors who are living in stress about whether or not they are going to be able to retain their homes . They live in fear of eviction. And the stresses lead to very negative health impacts. So i think what this really is about is accountability on the part of a multibillion Dollar Corporation that has tried to do anything within its power to thwart regulation of any kind. Were in favor of the amendments and legislation being proposed. Thank you. Next speaker. If anyone else would like to speak, please come up and get in line. Im teresa and im in support of this amendment. Anything that will help make it very clear that if you want to do business in San Francisco as a platform, you are required to follow the rules. You may not advertise illegal activity, if people arent registered that is an illegal activity. Im completely in support of this. Im also excited about this helping planning do what its supposed to do, which is to ensure that a neighborhood is not impacted negatively in terms of the environment, the character of a neighborhood, no rezoning that if you have a picture of 22 units within a block units being used on various websites,. That these platforms in being required to delist if there are too many in the neighborhoods and do something about it. If its really about sharing a home, your home and one room, that doesnt affect our housing, as much as entire units entire buildings being taken off the market. Those people will never register, because they are property they own 8 properties say in scattered throughout the city. They dont live here. They are not living in those buildings. Those people will never register. So its to hold the platforms accountable for the illegal activities that have indeed been go on and people do need to register in person. Its not about 21st century, but to make sure that that person matches the paperwork. Thank you thank you. Next speaker, please. My name is rodolpho and we have one tiny little room we rent out. Were registered. First i would like to comment on the multiplicity of attempts of registering airbnb because of the unregistered hosts and every piece in a units that seems to punish registered hosts and drive away nonregistered hosts. Accomplishing little or nothing while collecting a measly 130,000 for the city and just making people uncomfortable. That and other attempts at regulation also have the obvious taint of single out one platform and encouraging hosts to go to other platforms. This proposed legislation of yours will create a carveout for home away, make it obvious, and also for vrbo and craigslist and did the dpt City Attorney basically say he doesnt know or doesnt necessarily agree with supervisor peskin . How is this legislation how this legislation going to affect home away and vrbo and craigslist, its a carveout. Its been in the making 30, 40 years and not just San Francisco where zoning regulations have slowed or prevented new construction. Dont blame airbnb for the housing shortage. Maybe it exacerbated it slightly or somewhat, but dont believe it as you have for the past two years or month. In trying to finish this off, i would like to comment on the individual who tried to rewrite the First Amendment with his little comment. Thank you, mr. Rodolpho. Please, next speaker. Hi. My name is kathy wu and im a San Francisco voter, and a member of the better housing policy. Our organization is committed to supporting solutions that address the Housing Affordability crisis in San Francisco. Unfortunately we cannot support supervisor campos amendment because it will make things worse. The proposed amendments would Exemption Companies that openly refuse to follow the citys primary residence requirement for shortterm rentals. Rather than working with hosts to make the registration process easier and simple. Supervisor campos has proposed a loophole that will primarily benefit nonresidents, who own second or third homes in San Francisco. This is wrong, and unfair. We could do much better and urge the committee to please oppose these amendments. Thank you. Thank you. Another speaker, come on down. Good afternoon, supervisors and thank you for taking action to put some teeth in the shortterm residential regulation you passed several years ago. These technical fixes blessed by the City Attorney address the companies who are making money illegally in San Francisco by facilitating illegal rentals. They can pay taxes all they want, but if they are facilitating illegal rentals, its illegal. We wouldnt take tax money from drugdealers, from houses of prostitution, and the companis that are claiming to be such civic minded people and yet have hundreds, thousands of units that they are collecting money on, making money on, and its not right. So these fixes are attempting to handle that situation. It may be that there will be one or two other technical fixs that we have to get, but every company that makes money in any way off of an illegal rental in San Francisco should be stopped. Please pass this legislation with recommendations to the board. Thank you for your comments. Is there anyone else that would like to speak on item 2 . None . Okay, Public Comment is closed at there time. [ gavel ] the matter is back into the hands of this committee. Colleagues is there a motion for this item supervisor peskin, do you have a motion . I would like to move this item to the full board as a Committee Report, and given supervisor wieners outstanding question for deputy City Attorney, why went dow with do that without recommendation. Supervisor wiener. Thank you, i was going to recommend that we put it out without recommendation and that makes sense and we can can get answers by tomorrow. This Committee Report goes to full board without recommendation. Thank you. Mr. Clerk the next item is item 3. Item no. 3, resolution aboving the disposition of land located in south one third bounded by howard, spear, folsom and main streets, assessors parcel block no. 3740, lot no. 027 by the office of Community Investment and infrastructure a Successor Agency to the San FranciscoRedevelopment Agency to block one property holder l. P. Thank you,. Supervisor kim is the author of this item. But i believe well have a presentation by shane hart from ocii who is here to present. Good to see you again. The floor is yours. Good afternoon, supervisors my name is shane hart and work with ocii as transbay manager and i would like to introduce mr. Campos with our office and Aaron Foxworthy with our office. For the developer, jenny wang and carl shannon. Where is mr. Campos . Oh, in the back. All right. Thank you. The Land Use Committee action is to approve the disposition of ocii owned land within transbay block one to block one property holder l. P. , an affiliate of Tishman Speyer. This slide shows the timing of the transbay redevelopment plan, as well as other area plans that have been approved. Also in bold you can see that in 2003, the former Redevelopment Agency purchased this portion of block one site for Affordable Housing. In april of this year there was a redevelopment plan amendment that came before the board, and was approved. That plan amendment increased the tower height for block one from 300 to 400. In june of this year, the ocii Commission Approved the plan and this shows the overall Transit Center district plan. As i mentioned to you before, ab 812 and redevelopment plan require that 35 of all the units within transbay, within zones one and two be affordable. Ocii has land use jurisdiction over the formerly stateowned parcels, as well as this parcel and you can see that in the lower section of this map that is on the slide. The Planning Department has land use jurisdiction for zone 2. Transbay block 1 is located on folsom street, between main and spear streets. This slide gives you an idea of the Development Program that has been approved. This slide shows the parcelization for block 1. The top portion is the ociiowned parcel which consists of about 34,000 square feet. The lower parcels are the ones that are owned by tishman and those are about 20,000 square feet in total. The project summary is a mixed income homeownership project consisting of 391 units. 40 of the project is affordable, 156 units and theyll be available for households earning between 80120 of ami. The affordable units are dispersed in the first 26 floors of the tower and in the podium and provide protections for owners, there has been included a certain Homeowners Association for the bmr owners, as well as the developer has put up 225,000 dollars for what we call a homeowner associations dues Assistance Fund that could be used by the bmr owners in case there should be special assessments or large dues increases. 156 units are affordable as i said. 80 of those units are in the tower and townhomes, which are all funded by the developer and 76 units are in the podium buildings. And there is a subsidy of 19,180,000 that is being provided by ocii for the podium and remaining costs are funded by the developer. Regarding the fair market value for the ocii parcel, 3343 report concludes that based on the appraisal, and the analysis that was done by kma, 19. 2 million that ocii is receiving for its land is fair market value. And that ocii is receiving an additional 31 million of consideration beyond fair market value based on the current deal terms negotiated with the developer. This is a rendering of the block one tower and podium. This is also a view from the bay bridge. Last friday the ocii executive director and i met with supervisor peskin, and he was concerned about the effect that the construction defect litigation could have on bmr homeowner as the Association Dues and the construction defect litigation is common and as a result we proposed to allow bmr homeowners to access 225,000 bmr homeowner dues Assistance Fund for construction defect litigation costs, and to include in the project ccrs a requirement that the marketrate hoa pay for the cost of construction defect litigation without differentiating between marketrate and bmr units in any settlements. Proposed changes to the resolution are on page 6, lines 1220. And on page 7, lines 2022. The developer has reviewed and agrees with these changes. With that, thank you, and im happy to answer any questions. Thank you, mr. Hart. All right. Colleagues, i think were going to go to Public Comment. Appreciate your presentation. Madam chair, i would like to move those amendments on page 6 and page 7. Okay. I thought we could do Public Comment and talk indepth a little bit about these amendments. We have a stack here. Lets see who is still here . Laura thompson, are you here still . Rudy corpus . I think i saw charlie, danny campbell. Tony rodriguez. Joel coppell. Adrianne simi. All right. Why dont you just all come on down and welcome back, boys. Marcus im sorry, marcus, i cant read your last name. Go ahead, rudy. Welcome. Good afternoon, supervisors. I am here representing united players in support of the project. United players has been an organization that has been serving the city of San Francisco for the last 22 years and 8 months. Were fortunate that were located in a neighborhood where a development is being built. What has been in district 6 with the organization that we have built a great relationship with the project, with the developers, Tishman Speyer who has been helping and assisting us tremendously. Not only just coming to our center, and meeting the kids, but also donating their time with people with books, and mentorships and also helping us support our organization. So we can continue to run and thrive. So im in here in full support of the project and here with people from the community. Im born and raised in district 6, still live there. My kids went to school there and i just want to say this is the type of project that we need in order for people in our neighborhood to survive. We are probably groundzero of gentrification and displacement, but with projects like this help us to stay in the communitis that were born and raised and the amis that were part of helping out is a winwin situation for us. So thank you. Thank you. Charlie. Good afternoon, chair cohen, supervisors wiener and peskin. My name is charlie, the District Representative for the operating engineers in San Francisco and san mateo counties and associated with the Building Trade Council and Labor Councils in both counties. As a representative of labor, i want to thank you all for your Civic Service and hard work on behalf of the citizens of San Francisco. With regard to the agenda item i want to say that tishman he or speyer has been a bluechip partner and we are looking forward to working with them on this exciting project and they have been proactive many their efforts to strike the right balance of retaining neighborhood values and providing units for a wide range of incomes. I want to speak in support of the project. Thank you. Thank you. Next speaker, please. Good afternoon, my name is marcus and im here to show my support for block one, and for more Affordable Housing here in San Francisco. A yearandahalf ago my wife landed her dream job as a flight attendant, as a condition of her employment, we had to relocate to boston. This was a real tough decision to make, to pack up everything that we owned, to leave our rentcontrolled unit in the mission, and to say goodbye to our home. Well, as luck would have it and after a cold boston winter a position became available for my wife at sfo. We were moving back to San Francisco. But now the apartment costs 40 more than we were paying before we left. This exponential rise in the cost of housing made our return to San Francisco seem almost impossible. But thanks to the mayors office, a few forwardthinking developers, and the voters of San Francisco, we found a once inalifetime opportunity to actually own a home here in the city. 1400 mission, below market rate had a handful of units left that we qualified for. Although we havent moved in just yet this bmr program has given us hope, hope that we can have a permanent home in the city. Hope that we can raise a family here without worrying how were going to make rent. Hope for the future. I encourage you to share this hope with other working families by approving block one and more Affordable Housing here in the greatest city in the world. Thank you. Thank you. Next speaker, please. Good afternoon, supervisors. Danny campbell, sheet Metal Workers local 104. I, too on behalf of the membership of the sheet Metal Workers put our support behind this project. Its refreshing to see this project building the type of housing that the city has not been building enough of lately and that is for middleincome families. Such as teachers, librarians, firefighters and construction workers. Like i said, its a pleasure to see that, tishman has and continues to be a strong industry partner with the San Francisco building and Construction Trades Council and ask you to move this disposition agreement forward today. Thank you. Next speaker. Good afternoon, supervisors. My name is Tony Rodriguez and im with local 43, fire sprinkler union and were here in support of the project and what charlie and danny said about tishman always providing wellpaying union jobs and benefits is true and i dont really need to go into that. The exciting part is the 156 units. I have mentioned many times that i have three daughters. One is say a nurse and one is a teacher and the other one is going to school to become a nurse. They live at home and cant afford to buy a house. Our construction workers cant afford to buy homes in the city and projects of this nature would help to alleviate the thing of people having to move out. Yesterday i was in sacramento and or friday we went to sacrament and spent the weekend and its amazing the number of people that i know that live in sacramento and work in San Francisco and only do that out of necessity, because they cant afford the rents and to buy a house here. I ask you to help by approving this project. Thank you. Thank you. Good afternoon, supervisors. Chair cohen, joel coppell for electrical workers. Once they need a home to house their kids and their family, sometimes 1520 a year of our members are leaving the city. That is why projects like this are of the utmost importance. Tishman speyer has been more than a responsible developer here in San Francisco with the lumina and infinity towers and south of market and 160 folsom is going to be a great project also because of its proximity to the Transit Center and looking forward to building this project and hope you approve the disposition today. Thank you. Thank you, joel. Next speaker, please. Good afternoon, supervisors. Tom oconnor, president of the San Francisco firefighters. I, too, am here to support this project. This project not only represents a wonderful opportunity for our members to live in San Francisco, but it also allows tishman has helped to us explain the complicated process of applying for these unitss and enabling many of our members to stay in San Francisco and live and walk to work. Quite often when we talk about keeping Public Safety in San Francisco, people they exaggerate and talk about the big one, the earthquake or a Natural Disaster, but what is more important to Public Safety in San Francisco, when a personal Natural Disaster happens. If your kid is hit by a car or your mother falls and breaks her hip, you want your Public Safety partners here. This project and Tishman Speyer are helping us to do that. We speak in support of this project and thank you very much. Thank you. Next speaker. Good afternoon, madam chair and supervisors. My name is adrian with carpenters local 22. Not much i can add that hasnt been said already, but carpenters local 22 does fully support this project and looking forward to working with the long time partner of Tishman Speyer and i think most of all what hits home for me, this will put apprentices to work. Young carpenters, male and female who live in San Francisco, who have a nice job with benefits and in todays world, that is what is needed. Thank you. Thank you. Is there anyone else who would like to speak on this item . Public comment is closed. Thank you, folks. [ gavel ] now the matter is in the hands of this body and supervisor peskin has an amendment he will walk us through. Thank you, madam chair and i have every hope there is no construction defects in the project and no litigation, i think our primary policy concern and the reason that the developer has agreed to a 225,000 contribution for the below market rate 156 units is because we want to make sure as condo dues rise, people like this gentleman will be able to continue to pay those condo dues. That is the fundamental reason for the 225,000 fund. But it is not uncommon, as mr. Hart said, in Residential Condominium Development to have construction defect and a little bit of litigation after these projects are built. So i wanted to make sure that no. 1 insofar as there are going to be under the covenance, conditions and restrictions that the developer has agreed to, three different homeowner associations. A bmr homeowner association, marketrate and master hoa that would require a super majority vote in order to raise annual condominium dues or special assessments, above certain percentages 10 and 5 . I wanted to make sure that we actually were thoughtful about litigation, if it should occur . So i wanted to make sure that the bmr Condo Association was not disadvantaged in that unlikely, but possible, event. So to that end, one, in the second paragraph on page 6, we made it clear that the 225,000 could be used for the affordable unit hoa cost including litigation costs, if she should ever arise. And furthermore, a provision that says that if the marketrate hoa would like to pay for all of the litigation costs, they can do so provided that any settlement would be shared equitably between the marketrate and bmr hoas subject to the relevant governing laws of the state of california and the bureau of real estate. Those are set forth on page 6. I want to say mr. Shannon, i know its never fun to put money into a wellmeaning goodspirited fund that could be used against the developer and hopefully that wont happen, but i want to foresee the unforeseeable here and thank you for agreeing to those and the developer has agreed to those in the sub4 on line 20 to 22 on page 7. Im happy to answer any questions and i want to thank ocii and their director, ms. Boe and mr. Hart for helping craft the language around the suggestions that i made on friday. Thank you for the amendments. Lets go ahead and take a motion to accept someone could make a motion to accept these amendment s. So moved. Thank you. Motion to accept the amendments, moved and without objection passes unanimously. [ gavel ] thank you, on the overall piece of legislation, i would like to make the motion to send as amended ai as a Committee Report with recommendation for hearing tomorrow, july 26th. The motion has been made and without objection this motion passed as a Committee Report with recommendation. Thank you. [ gavel ] mr. Clerk, what do we have next . That completes the agenda for today . Excuse me . That completes the agenda. Thank you, this meet is adjourned. Thank you. [ gavel ] welcome to the ribb cutting d