House. It seems to me we can increase housing on the sites we hold and so it teams to me we should target the projects if only we can get the financing resources available. Id like to work with you and if theres not a way ive been asking the nonprofits to do and the city and our staff here to to look at the projects coming up not as individual projects but theres efficiencies if youre going to build 2,000 units of housing. The first three sites, is there not a way to have efficiencies in designs and operations that can being looked at where we pull resources. Perhaps its negotiating in advance the fee paid to general contractors or an insurance policy backed up by the city to be used by the Nonprofit Developers on Treasure Island. Perhaps special subsidy programs for the projects. Theres a list of things that can be looked at. And i would ask your office work with us to think of ways in which we might be able to get those resources and use them more efficiently. For one thing San Francisco, the cost of building an Affordable Housing unit in San Francisco is so much higher than the rest of the bay area. Theres certain ordinances we want to support but we have to look at them and see how much cost it adds to the overall construction and design costs and is there not a way to make them more efficient. Id like the Nonprofit Developers involved id like to come up with a list of efficiencies. Ways in which to fast track the local ordinance need to be looked at which perhaps can be streamlined but basically a list of things we can reduce the Construction Costs so theres less to put in as a subsidy because its already too much. Rest assured were looking at these things. I know youre working in concert with the Nonprofit Developers and our staff to come up with that program. Id like to open it up to other directors. Linda. Commissioner thank you for coming here today. I think its a matter of time because weve been anticipating getting to know you and working with you a long time now. For the record we have people who have developed housing for decades and were active in the community. We advocated for housing to chinatown to San Francisco. Your predecessor, mr. Lee, no relation to mayor lee, was considered one of the foremost housing directors in the state of california and mayor lee was the first mayor out of the gate in the state of california and set up the successful agency and began rolling up his sleeves to stabilize housing and create bond measures and the rest is history. Youre welcome here and we want to establish the relationship. At the end of the day, Treasure Island, well be working with you and fulfilling obligations. Your predecessor worked on many sites. And some projects today are a great testament. When you look at San Francisco budget and were only spending 220 and thanks to mayor lee with the special bond measure its a disgrace about the measures. I foresee the situation will improve and again citing mayor lees legacy he was instrumental because again, San Francisco is leading the state and because of the efforts now we have leaders in San Francisco to push that. One of the things we know the state needs to advocate pore more leadership we only have 2 of the state grant but with all the bills in place now, but its still not enough because well have to be creative locally to see how we can extract and we have the capabilities to work with you to make sure Treasure Island doesnt fall through the crack. And use influence to move it forward. One thing we mentioned and we know is about the cost of housing and also the entitlement. You were correct. San francisco is very hard to build even with the scarcity of land and i think its a foregone conclusion as a member of the community were pushing modular housing. Its no longer where we have concerted efforts thats the trend everyone is looking at. How can we put that on the joint board in San Francisco. The discussion is not only going to be limit to us here but to the community. You need to help us to know modular shougs what modular housing is what is needed and use us to push the discussion. Thats the bottom line. Its Wishful Thinking to think we have the deficit and the limited use of funding and the modular housing shows other places in the world are going to that way. When i look at your pie chart you mention mentioned the impact fees its a substantial amount but whats the projection. What are the challenges that can make that because if that impact fees maybe you can site what you for see and how we can be helpful. I will do my best to answer that question but im not the director of mocd im representing kate hartley our esteemed director. It is with great difficulty we have an accurate predictor of the impact fees because of the way in which the legislation needs and the way the money comes to the city. In general terms we do expect significant fees to come in this fiscal year and next fiscal year and thats because the Planning Department does tracking and look at the projects that have submitted planning applications and have a sense of whos planning and who needs to do environment Environmental Assessment and who will get to the payment of the money. What we see trend wise is were at big numbers now. This year and next year and then then there are assumptions made on what will happen about the economy in general and wed expect theres fewer inclusionary fees. And inclusionary fees were incredibly lucky to have the best inclusionary laws in the country in San Francisco. One of the challenges of the rules are about the timing of the money and how to predict when its coming in. Yes. At some point, kay needs to come here to to be on the same page. Lastly i have a question for how were managing. I know we have all kinds of documents but i think it will in instrumental if we can have an excel sheet format. It would be great in march to know how many of the households weve have oneonone with and on one spread sheet. That could be posted at the end of the day on were website and the supported documents would be there for people to review. Its such a significant aspect of the development and given the known issues we have to deal with so its important to look at that and translate to that point. I know you collected on the house of tida. Thank you again for your presence here today and ask your director wed like the discussion and were passionate about the modular housing and any assistance to find creative ways for Treasure Island. I will do that, thank you. Thank you, linda. Sharon. Thank you for the presentation. I found it helpful to get the recent history on how tax reform has impacted the funding. Im not familiar. I have a question on how the pads work. Would the individual Affordable Housing developers be responsible for bond financing or can mocd look at more resources. It rates right now are pretty good. Are there efficiencies with just taking issuing a larger bond versus having smaller bonds over the however many years. Thats an interesting question. There are many kinds of taxes and bonds. The buyer is going to bank x and they give a rate. The city has issues of bonds purchased by the bank. The transaction for the borrower have to go through a required process but its pretty easy. Its a loan backed by bonds. We already act adds as the issuer. We generally charge the lowest rates of most of our peers. Were getting efficiencies with the city in that function when were the issuer. So it would be more challenging if you were doing one project every two or three years to cost effectively issue bonds that would have to cover a large amount of time. I think that would fall in the category of things youre colleague was asking about. Are there ways we can efficiently do all parts of the transaction and since we are a major part of financing of the housing we would certainly be looking at that. We havent done exactly that to date but we are always looking for ways to get the money out the cheapest. Both our own and the private money. And then i think the city is in the process of exploring the idea of creating a municipal bank. Will that impact our financing capabilities . I will be frank. I have no idea. Commissioner and similar to lindas question about the pie chart you provide. From what i understand it sounds like youre anticipating the federal funding section to basically be reduced over time because of the 4 or something. And the state portion of the pie would increase. Do you see that to even out. Are you anticipating a gap . Well still be able to utilize them. They were worth less than a year and a half ago. We know that hud has less of their home federal grants money which represents that portion of the pie chart. Where he dont know how the state will pull their money out every time they put out a notice they set a lone limit and said the parameters and and theres a program on how much money theyd need so its hard to get to the point where we can say it will cost a certain amount more. We have been predicting though well get new state money. Last question. Part of the cost increase in developing Housing Project youve noted has to do with the duration also the labor costs associated. Im wondering if you can speak how theyre work the other offices to address trained labor shortage which is the driver for increase in labor costs. The labor challenge on the west coast with the fires and natural disasters creating more demand than we had before for Residential Construction i dont know anyone has a solution for that. We work with our City Partners on programs like and participating in the development and thats a great challenge where theres so much work locally to get people to their jobs. Id like to move the agenda forward. Ill ask a quick question. Thank you for the presentation. Its very helpful and look at the impact its having locally. I thank you for all your good work. We need to Work Together to make it work to build Affordable Housing of course. One of the specific questions i have goes to the impact fees. Those are inclusionary fees. Developers who put time into several ordinance. As it pertains to Treasure Island, do the funds go into the city fund or are they Treasure Island specific. So when we look at the budget for the development and in the budget theres impact fees do we benefit Treasure Island or is it exclusive of Treasure Island . I look for support. Im wondering how we relate to the city wide budget. Youre getting funds from the city pot. Because much the escalation in the last five years weve seen some of the decreases in other revenues and other revenue values like tax cred its we have a shortfall and theyre helping to find solutions. Our program will be get significant contribution either directly there city funds or from city allocation of state funds. To help fund the program. And other fees. Commissioner thank you so much mara for your presentation. I would like to have a report back on the efficiencies that we can do think of. Are there ways we can streamline the process. Well calendar that. Commissioner thank you so much. Lets see. For the next item i would like to have the item number 8 item. Jill manton is here and has another commitment. The clerk item number 9, art selection rfq results. Weve completed the qualification phase of the art selection and shell speak to the items short listed for proposal. Happy new year. Im excited to be here in the art Selection Process for the first series of sites to be for series of art works to be commissioned for sites on Treasure Island. The three sites are building one plaza, water front of plaza and herba buena plaza. Theres an allinclusive fee with the artists fee and engineering, transportation and we met december 1. The Selection Panel was president of the art commission, ticd, our guest curators from San Francisco museum of modern art and a curator part of the smithsonian museum. We reviewed of the 495 applicants after multiple screening to pare down the list. 37 artists were select. After the first vote, that number was reduced to 15 shortlisted artists and the panel looked more carefully at each site and identified corresponding artists and there may have another couple of votes before we established our lists of three artists per site. Im pleased that our artists represent are internationally renown. We have artists from Different Countries and its a diverse list. We have artists of color and from european. We have a great group of artists. I think the panel worked very hard. It was an allday panel as you can imagine going through this much work. I think there was true consensus about the deliberations and later commissioner tsen would like to comment and in accordance with the arts master plan they reviewed and comment on the artist. The Steering Committee responded during the holiday vacation to line up the votes to proceed. Now that we have the approval from our Steering Commission we contacted the finalists and let them know they have selected. I believe we have five or six of the artists or their representatives who will be in attendance with cmg, walter hood and ae com. If there are any questions about the process, id be happy to answer. I can also show you a quick thumb nail image of each of the artists. This is a chance artist and does projects all over the world. We dont have an x marks the spot location. I just heard back from the local gallery hes interested in developing proposal. Those artists at the height of their career dont usually participate in competition but they found Treasure Island compelling and wanted to participate. A new york artist typically works in recycled tires. Im please to say she was selected for a finalist for two sites. We look forward to seeing what she will propose and another artist has a studio in Northern California near the russian river. Though this is a glass artwork her work is typically characterized by her use of vivid color. We have a local artist that works with phenomenon. He has a number of works in the city and has been commissioned to do a water work for trans bay and hes an alternate in the event one artist cant participate. And for the herba buena park site we have a photographer who has start to work in sculpture and architecture. She was featured on the cover of the New York Times and there was an in depth article about him. Again, booker whos work i just mentioned and then andy gotze a british artist and perhaps the best known in the world at the present time has done a number of installations in the presidio and those are our finalists and im happy to provide further details about next steps. I should stay speaking of next steps the artists will be asked to develop the conceptual proposal and paid a modest honorarium and well have drawings to know what the sculpture is going to look like and what materials and what the corridors are. It wont provide us with engineering. We hope the artists will be able to work with our time line. Were asking for submission. We would convene the Selection Panel after that and then go through the process of Treasure Island art Steering Committee and proposed to tida for your final approval. Theres also a twoweek public exhibition period built into the schedule. Wed like to have the works displayed on Treasure Island and then analyst in the city at a public site to be determined. Commissioner are you ready for questions . I am. Commissioner to be able to narrow it down to just a handful was a lot of work and the selection committee. I think that what we wanted to do was to set a real standard. These are the first art commissions that will be made on Treasure Island. Im hopeful this will be will make Treasure Island a distinction. I came back late last year visiting a group of islands in the Southern Japanese inland sea its very similar in history having basically industrial uses and then and getting people to visit has revitalized the islands. Its our hope Treasure Island will become an International Art destination for people around the world to come and visit these incredible art works by the greatest artists of our time. Its wonderful we had such a response to request for qualifications to have incredible artists respond and this is a final grouping. You will all be involved in this when the final decision is made. It will come back to the tida board. Very exciting. Thank you, jill. My flash. Commissioner any comments or questions . I was present for the selection committee. Though it wasnt expressly discussed as an objective, the result with the selected artist is we have a group of artists that have demonstrated a broad range of work in material and theme. Often youll see a piece of work and youll be able to know the artist regardless of the location. Youll be able to say that was done by so and so. And theyll speak to the Treasure Island and herba buena island opposed to something that will be specifically recognized for work by a specific ar