Report for december 12th. Supervisor cohen all right, thank you very much, and well take that without objection. Madam clerk. Call item 14. Clerk resolution authorizing the execution of the performance of a Second Amendment to the ground lease between the city and mission bay Affordable Housing for a Real Property at 150 barry street to 13, to 15, to 17, to 19, 23, 25, 27 king streets in connection with the zone refinancing and minor rehabilitation of the space at the commons. Supervisor cohen we have amy chang from the Mayors Office of housing on this item. I want to call you up and i understand that the Mayors Office of housing would like to continue this item due to issues with the lender. So i dont know if you want to speak a little bit and then well take Public Comment and then a motion. Sure, good morning, chair cohen and supervisors. Amy chang from the housing and Community Development. For item 14 we request that the item be continued one week and the project lender has brought up conditions for the ground lease that were still negotiating and so we would like to request a weeks additional time to resolve this issue. Cloip than supervisor cohen k you. Public comment, any member of the public to speak on item 14 come up to the podium and you will have two minutes. Seeing none, Public Comment is closed. May i have a motion to continue this item to the next meeting . So moved. Supervisor cohen thank you. And well take that without objection. Thank you. And item 15. Clerk itema 15 supervisor cohen excused me, before we go further id like to call the budget of finance federal select committee to order. It is 11 07 and im calling the budget and federal Budget Select Committee to order and we can continue with items item 15 and then well pivot and go back to and i will call items 1 and 2 from the federal select committee agenda. Clerk. Clerk item number 15, resolution of approving and authorizing the grants of an easy easement on a City Property of 68. 52 square feet of the parcel looking at 1101 connecticut street. Supervisor cohen thank you and im the sponsor of this legislation and i bring up miss faith kirkpatrick to share with us about this resolution. Thank you. Thank you, supervisors, i am faith kirkpatrick and im a project manager and working on the project and im here to request your approval for an access easement at the cityowned parcel at 1101 connecticut street and the size of the easement is 68. 25 square feet. And 1101 connecticut street is the parcel for a 72unit Affordable Housing project known as black x and its part of the revitalization project. This committee and the board of supervisors has previously approved a 75year grant lease with a 24year extension to the affiliate of Bridge Housing which is the developer of black x. And black x began construction in january of this year and its currently 25 complete and theyve completed the Foundation Work and they are about to start the framing work. The project is estimated to be completed in november 2018. And includes Infrastructure Improvements on 25th street and connecticut street. Adjacent to the project site as part of the master plan revitalization work. And the small access easement is required to give pg and e the permission to install an underground vault that requires three feet of access area around all four sides of the vault, three sides of that access are located in the street and the fourth side is located on the edge of 1101 connecticut, that parcel. Mocd supports this easement as its ensuring that the undergrounding of the lines provide temporary power to the project and if approved pg and even will schedule the work and the overall project will maintain its current schedule to be completed by november 2018. On behalf of the mocd and Bridge Housing i thank you for your consideration today and were here if you have any questions. Supervisor cohen thank you very much, faith. Lets go to Public Comment. If theres any member of the public to comment on this item please come on up. This is for item 15. Seeing none, Public Comment is closed. Thank you very much. Colleagues, id like to make a recommendation to move this as a Committee Report with a positive recommendation to the full board. Supervisor yee so moved. Supervisor cohen thank you, taken without objection. So earlier i had mentioned that we would go into the im going to refrain from calling items 1 and 2 from the budget and finance federal select committee and were going to hear that at the end of our regular Budget Committee meeti meeting. So i just want to acknowledge that weve got two more supervisors here in the chamber and we have supervisor sheehy and supervisor fewer and hell substitute for supervisor yee in about 20 minutes, so with that said, call item 16. Clerk item 16, resolution approving and authorizing a longterm ground lease with 96 housing on cityowned land and wall street for a term of 75 years with 24year lease to extend and in order to construct a 100 affordable 94unit multifamily rental housing for lowincome seniors and formerly homeless seniors. Supervisor cohen thank you very much. The sponsor is supervisor ronan but we have miss sarah ama maral that will speak to this item. Good morning, im with the Mayors Office of housing and im the project manager. To approve a longterm ground lease between the city and the project sponsor of 1296 shotwell l. P. That has the agency and the Chinatown CommunityDevelopment Center. The city obtained the land from oyster l. L. C. Who elected to satisfy the requirement of inclusionary housing for the new Mission Theatre development and by dedicating 1296 shot well to the city and the city had an r. F. P. To develop the site into 100 Affordable Housing for seniors with 20 of the units set aside for homeless and formerly homeless seniors and it was chosen to develop the site and they have predevelopment work and construction is ready to begin in march 2018. Once developed the property will be 85 feet tall with 94 units, and one unit reserved for a manager, onsite manager. And 19 homeless units at 30 a. M. I. And the rest is up to 50 a. M. I. And the ground lease will have annual payments of base rent and resil saidual rent, which is 10,175,000 and the city will collect 15,000 in base rent and to the incident that the residual receipts is available, they will collect an additional 1,205,000 and they will have a ground lease for 74 years with the option to extend for 24 more years and otherwise we are in full support of this project and the Analyst Report to we request that you move to approve it based on the Analyst Report. Supervisor cohen what did you say . Sorry. I was fumbling a bit. At the time i was saying that were in a full support of the project and we considering the budget legislative Analyst Report hope that you move to approve it. Supervisor cohen lets hear what the budget legislative analyst has to say. Yes, this project would be this resolution would approve 74 up to 99year lease for 1296 shotwell street and the tenant would be a limited partnership between the Mission EconomicDevelopment Agency and the Chinatown Development corporation. And the base rent would be set at 15,000 a year with a residual grant to go up to a Million Dollars a year which represents 10 of the appraised value of the property and this is Standard Terms for a ground lease for this type of Affordable Housing project and we do note in our report that given the lowincome threshold for the tenants of this property that it seems likely that there would be residual rent to the city over the term of the lease and we do recommend if, for example, a new lease and license negotiated at the end of the full 80year term of the lease. In addition to these items requiring board of supervisors approval, on september 19, 2017, the ssmta board approved purchasing 48,177 square feet, 1. 1 acres of property for 1. 15 million which is not subject to the board of supervisors approval. And the ssmta agrees with the proposed amendments recommended by the Analyst Report. Thank you for your support and im happy to answer questions. Supervisor cohen thank you, as you know theres a lot of conversation around this particular project with the neighbors, specifically my constituents janet carpanelli and robin chang. And at some point there was a promise made for use, access to to open space and public use. Can you explain the agreement that you have reached with the constituents of mine in dog patch . Currently were working on a spaceuse policy for the Community Room which is on the ground floor and were also looking at opportunities for the community to be able to access the second floor but yet keep our employees safe and secure during their operating hours and which are 24 7. So were in the process of looking at that as well as a space plan overall for the islis creek facility. Supervisor cohen to be fair you have looked at it for a very long time and this is the subject of many meetings for a couple years now, so what is the status and how close are we . We have a draft policy that were e viewing internally and we hope to share with the community soon. Supervisor cohen umhmm. And in this draft policy, i havent had a chance to review it, so does it have a clear access to the public space, to to the meeting room yes, there would be a way for the community to access the room thats on the ground floor as well as possibly to use the second floor space. Supervisor cohen umhmm. What about the requests i think that there was another element that was a point of contension was the a contention the amount of time to notify m. T. A. And the need for security, have those been resolved . Part of the access issue is access to the ground floor room and the hours that the m. T. A. Operates as well as when the Community Meetings would be so those are all part of a spaceuse policy that were in the process of finalizing. Supervisor cohen how do we remedy that issue . In terms of giving notice to the m. T. A. , so well work out the number of hours or days that we would need notice so we can have the staff available to let people into the room. Supervisor cohen how much notice are you proposing in this draft proposal . I believe that its three days. Supervisor cohen three days . So i just wanted to kind of go on the record for a couple talking points. As you heard in my questioning i have heard several several pieces of communication from residents in dog patch about the Public Community space that was agreed upon several years ago and i think that it was me as supervisor. Thank you for an update on the outreach and the collaboration with the community. I know that there have been several meetings and i would be interested in seeing the draft policy, i have not seen that. And im honestly have to authorize the m. T. A. s approval authorize m. T. A. s approved additional lease, extension without coming back to the board and maybe you should explain publicly why i should support this . The director of transportation has the authority to approve the extension under the city charter and so thats what we are requesting. Supervisor cohen so. All right. Thank you. Thank you. I just want to go to the budget legislative analyst to hear a few of her thoughts. I think that youre making a recommendation of four amendments if im not mistaken and detail them for us. Okay, correct. The board is actually under this resolution asked to approve the air space lease with caltran to a license and easement agreement and some Planning Department determinations. Our recommendations are generally to correct numbers in the report. The first is to amend the resolution to clarify that the rent is actually theres from 191 to 241 so theres a dollar difference with the lease and another amendment is to correspond to the commencement date and so that the total costs would increase from 2191, to 21903676 and the third recommendation is to change the cost based on the closing date, so in the resolution 1328185 and that is 138931 and the more substantive recommendation is that this is a 50year lease with two, 15year extension options to extend and the way that the legislation is written is that the board of supervisors would be approving those extensions upfront and would not have Approval Authority at the time of it coming due and we consider that to be a policy matter to not have the authority to approve the extension through the time. Otherwise we recommend approval as amended. Supervisor cohen thank you, i appreciate that. Madam clerk, did we take Public Comment already . I cant remember. Anyone here from the public that would like to comment on item 17 . All right, seeing none, Public Comment is closed. And supervisor tang, may we may we let me say this i would like to id like you to make a motion to support the first three of the amendments and possibly consider not supporting the fourth. I do believe that we should have m. T. A. Come back to us when they want to extend the lease and we should not allow the m. T. A. To make authorizations to extend and that is where i am on this particular item, i dont know how you feel, but i will defer to supervisor cohen on that dpifn that shes following this very closely and so ill make a motion to that effect. Supervisor cohen thank you, i appreciate that. So well accept the first three of the four amendments and that the budget legislative analyst has introduced and also what id like to do is to im going to send this to the full board without a positive recommendation and im going to send it as a Committee Report and in that time between now and next tuesday i want to see the draft policy and it will determine whether or not ill support it as a full board. Okay . Thank you, and if we can take that. Okay, so ill send it forth as amended as a Committee Report without recommendation then. Supervisor cohen i would like the record to reflect that sandy fewer is voting in place of supervisor yee. May we take these changes without objection . Thank you, well do that. Okay, please call item 18. Clerk item 18 resolution thursdaying the corrective actions by the mayor and the director of the Mayors Office of housing and Community Development to mitigate or to avoid the negative consequences of the proposed federal tax reform on multifamily housing Revenue Bonds of the city and on the multifamily rental Housing Project and authorizing the collection of certain fees. Good morning, supervisor, i am the Bond Program Manager for the housing and Community Development and im here to present a staff report on the corrective action before you. As a sort of matter of background i wanted to provide a bit of information on the private bonds and construction draws as reported to the Affordable Housing projects that the mayor of housing and Community Development typically finances. As members of the committee are well aware, the city issues tax exempt private activity bonds to finance the development and rehabilitation of many Affordable Housing projects every year. And these p. A. B. S provide tax exempt financing for over 90 of the projects and they allow projects to access federal lowincome housing tax credits as well that cover about 30 of the costs of the development for each project. Whether than disbursing all of the bond proceeds upfront, they are often structured so that the construction lender disburses the proceeds to the project gradually over time through a draw process. Proceeds are not subject to interest charges until theyre drawn so this saves most projects millions of dollars of interest each year. And so with that bit of background comes the the private activity bond repeal that appears in House Resolution 1, so on november 16, 2017, the u. S. House of representatives passed the tax cuts and jobs act, h. R. 1, which repeals the Tax Exemption for private activity bonds effective january 1, 2018. And any bond proceed that is drawn on or after that date is taxable and any live financing with those proceeds would also be lost so it would be a tremendous blow to many deals that are outstanding that have been financed with live equity as i have mentioned before, typically 30 or more of the project is financed with this, and it would open up significant holes in the budget for these projects. To preserve, the they must draw down all bond proceeds at the end of 2017 as a result. And this includes the projects currently under construction and together these projects have 900 million in undrawn proceeds that the city will have to facilitate drawing down by the end of this year due to this pending legislation. While the p. A. B. Repeal is not yet law, its potentially disastrous consequences and the