Clerk mr. President , you have a quorum. President yee thank you. Everybody, please place your hands over your heart, and would you please join me in reciting the pledge of allegiance. [pledge of allegiance] president yee thank you. Supervisor safai supervisor safai is present. Clerk thank you, supervisor safai. President yee okay. On behalf of the board, i would like to acknowledge the staff at sfgovtv who air the meetings and make the transcripts available online. Madam clerk, are there any announcements . Clerk yes, mr. President. During the Board Meeting, members will participate online as though they were present in person, and the public is invited to participate in the meeting in the five following ways. First, you are welcome to submit via email at board. Of. Supervisors sfgov. If you do not have internet or youd like to listen on the go, you can listen to the meeting on your cell phone. The telephone number is 8882045984. When prompted, enter the access code 3501008, press pound, then press pound again to join, and youll get to hear the meeting in progress. If you do have internet, you can hear the meeting on San Francisco cable channel 26. You can watch the live streamed meetings online at www. Sfgovtv. Org. And if you would like to present up to two minutes of comment on general Public Comment, it is item 19. If you dial in early or wait until general Public Comment is called, utilize the telephone 8882045984, and 3501008. Press pound, and pound again, to join the meeting. Once you join, you will hear the meeting in progress. Dial one, and then zero, to be added to the speaker line, and you will be queued to speak. Thank you, mr. President , for allowing me to give all that information to the public. President yee thank you, madam clerk. Just a friendly reminder for all the supervisors to mute your microphone before we get started to alleviate audio feedback. Before we start, i would like to give you a few comments. As all of us has heard, the governor has announced the number of rooms available for the Homeless Population in california totaling around 10,000 rooms and hotel rooms, and an additional 5,000 motel 6 rooms. And at this point, the number of rooms that are availabhave them number 4,000. When you look at it, its almost about 25 of the homeless that are being housed in hotel rooms in california. San francisco is housing about 25 of the state, but that doesnt actually [inaudible] president yee so im just going to point out that although we as a city want things to move faster, and were hoping itll get done. Supervisor fewer, would you like to give a comment on the p. O. C. . Supervisor fewer yes. Thank you, president yee. Since my office first started at the [inaudible] fuiava supervisor fewer highlighting the disproportionate impact of the virus on our citys historically marginalized community. Last week, we open up a new site for the public in soma. This weekend, ucsf will begin testing thousands of residents in a foursquareblock section of the mission [inaudible] supervisor fewer with you remain under both state and local shelter in place orders. A week ago, San Francisco had 987 confirmed cases and 15 confirmed deaths. As of this morning, we have 1,231 confirmed cases and 20 confirmed deaths. As of this morning, approximately 53 of our beds remain available. Thanks to the [inaudible] supervisor fewer to transport people directly from the street to hotels as safely and quickly as possible. The a. O. C. Continues to provide food secure services and sites that allow isolation. I would like to extend my thanks to the thousands of workers that are delivering groceries and other services to contain the spread of this virus and minimize loss of life. While those of us working at the city hall and a. O. C. Provide these services, many do not have that privilege. I look forward to continue to working with my colleagues on the board and work with the e. O. C. Staffing to continue to providing services. We appreciate supervisor mandelman and aaron mundee for all their work last week. Next week, we will be joined by supervisor mar, allen wong, and jennifer lee. Please reach out to my office if you or your staff can join us. Thank you for allowing me the time to provide this update, and i look forward to hearing supervisor safais update next week. President yee, i think youre on mute. President yee thank you, supervisor fewer. For tomorrows e. O. C. Update, is there somebody thats going to be a guest on there to talk about something . Supervisor fewer yes. Tomorrow, the e. O. C. Has arranged for the doctor who set up all the testing im sorry, but i forget her name shes going to join us to answer all the questions we have on testing. Clerk supervisor, is it amy lockwood . Supervisor fewer madam clerk, yes. President yee madam clerk, lets go to the routine calendar. [agenda item read]. President yee okay. Colleagues, would anyone like to sever any items from the Consent Agenda . Okay, seeing none, madam clerk, lets go to lets take roll on the Consent Agenda, 1 through 5. Clerk on items 1 through 5 [roll call] clerk there are 11 ayes. President yee okay. Thank you. Seeing without objection, the ordinances are finally passed. Madam clerk, lets go to our regular agenda. Please call item number 6. Clerk item 6, ordinance to amend the planning code to modify the gearymasonic special use district regarding minimum parking requirements, ground floor ceiling heights, and to allow payment of an inclusionary highway fee and to make the appropriate findings. President yee okay. Supervisor stefani . Supervisor stefani thank you, president yee. Colleagues, before you today is an ordinance that would provide 144 affordable homes. During last weeks meeting, requests were made for the requirements and various b. M. R. Options. When this first came to me and the request was made, i was not going to take this something that straight out of the mouth of the developer was going to go through my legislation. I met with the project sponsor multiple times, and i asked the joint Development Team at the office of Workforce Development to walk me through what objects needed to be met to [inaudible] supervisor stefani i know that the sponsor has proactively made a short presentation that was made to supervisor ronen and supervisor preston late last week. The best chance of delivering the maximum amount of new housing in my district, including the maximum number of b. M. R. Units, is by approving the legislation today. As it stands, with 100 commitment to union labor, which is over 250 jobs, and the increase in construction pricing that has occurred over the last 2. 5 years actually, which has been approved since the site was permitted some things have changed. Covid19 will likely continue to push construction pricing up further as labor forces are cat exasperated with limiting social distancing measures. For example, the number of people allowed on the man lift will decrease dramatically which will slow the number of workers moving on and off the site. Like youve heard before, i have been working on this project for over six years, i started during my time as a legislative aid and have continued as supervisor. We have negotiations and renegotiationed every element of this proposal, and if i thought we could get anything more, i would not be here, asking for you to vote for this legislation today. The site has been shutdown since 2015 due to a rising cost of restaurant operation in San Francisco. It is currently in a trap and nuisance, endangering the residents. There are thousands of people who are in desperate need of accessible housing in this neighborhood, and this project will provide 101 homes for these people the result of which will be a vacant site and a missed opportunity. We are seeing this problem citywide. As of the latest Planning Department report, there were 72,565 units of housing entitled, 87 of which were not under construction, so going to direct our housing project, it is not just enough to entitle the housing, we have to actually have the housing built. I think in a perfect world, we would love to see 100 subsidized housing on every site, but building the project is a better alternative than letting the site sit vacant. Colleagues, i ask you to help me build 101 homes in a district that has historically built very little housing, and to create 250plus union jobs, and i want to thank my chief of staff, daniel, for working so hard on this legislation with me. I ask that you vote yes on this legislation on its second reading, and thank you again for your time, and thank you to the supervisors who met with the developers last week, and i hope your questions were answered. Thank you, president yee. President yee okay. Any questions . Supervisor preston . Supervisor preston thank you, president yee, and thank you, supervisor stefani, for your work on this. Over the last week, as supervisor stefani mentioned, i had the opportunity to speak with the developer and his representatives to learn more about the project behind this request to eliminate the onsite Affordable Housing requirement for this project. I want to just start by saying i appreciate their time, their willingness to engage in a respectful dialogue on this issue, and also, weve been in communication, my staff, with supervisor stefanis staff, about ongoing questions and concerns, and we appreciate their work on this, as well. I want to remind folks this ordinance is not to allow how many units on this site, this is to allow the developer to do whats otherwise prohibited by the special use district that was created specifically for this project. In this, the developer got the right to quadruple the number of states units on this site, and the affordable units were required onsite as part of that deal and as part of that legislation. As weve heard it, the developer now claims because of intervening delay and other factors that onsite Affordable Housing are not feasible and proposes to build this project without any Affordable Housing onsite. I have some questions for the deputy City Attorney. First off, some information was presented to me by the sponsor last week. I must say that i am baffled as to how we as a supervisor can decide to amend a special use district at the request of a developer based on a claim of financial need or hardship without any showing for all colleagues to see before they vote or any leigcolleagues to. In the 1990s, the voters passed the sunshine ordinance, including section 67. 32 that quotes the city shall give no subsidy, money, tax abatement or services to any private entity unless that entity agrees in writing to provide the city with financial projection, including profit and loss figures and annual audit figures for the project thereafter upon which the plans the project is based. I think this makes good sense so that we all get the relevant information before us before making decisions that would benefit any particular developer. Through the press, i would like to ask deputy City Attorney pearson whether this Current Situation applies to the current provision where the developer pledges to amend a special use district to generate higher returns on a specific use project, and if not, why not . President yee so deputy City Attorney ann pearson . Yes. Deputy City Attorney ann pearson. You are correct, supervisor preston, that the project sponsor may not ask for subsidies unless they have a certain percentage of Housing Units. President yee supervisor preston . Supervisor preston, are you wanting to speak . You need to unmute yourself. Supervisor preston yes, thank you, president yee. Thank you, miss pearson. I so my understandings right, if a developers directly given land as a subsidy, it would apply, but if the property is either rezoned or the requirements changed, your opinion is thats outside the scope of the sunshine provision . I think the sunshine ordinance would be triggered if the city were to give a financial subsidy to the developer, but not in this situation. Supervisor preston okay. Thank you for the clarification. The other issue, just focusing on the numbers, raised some concerns for me about the intended use of this property in order for it to pencil out and returns of the developer. The developer claims returns just under 17 with all the affordable units onsite, and that goes up to just under 20 if the b. M. R. Units are not onsite, so thats the percent were dealing with here. 17 is not enough for the sponsor to pencil out, so were told that we need to forgo the Affordable Housing units. I think its important for my colleagues to understand, all of these are based on furnished rentals, and, in fact, the projected returns for this project are, according to the developers own figures, 19. 1 higher with the project, including furnished rentals, and that is the plan here, to make it pencil out. So this raised some questions for me as to the intended use of the property, whether were looking at a situation where they may be used for short or medium term occupancy that generate higher returns, whether by this or another owner. So i wanted to ask deputy City Attorney pearson, is there anything in this law or in this proposed ordinance that would categorically the owner or future owner from doing any short or intermediate term rentals at this site . President yee deputy City Attorney . Im not aware of anything in this legislation that would prohibit the owner from using it for rentals, although legislation has been introduced that would prohibit short and intermediateterm housing. Supervisor preston i think, in conclusion, colleagues, we need Affordable Housing at this location. Beyond that, i think we need to make sure that where were being asked to change zoning or legislation or enhance the private returns, that we all have a chance to review that in committee before reviewing it at the full board, and that the public know the basis for any such legislative action that benefits a specific individual or a private entity. So i, unfortunately, will not be voting for this project, but i appreciate the time and layout. President yee okay. Thank you. Supervisor safai . Supervisor safai thank you, mr. Chair. Just wanted to thank supervisor stefani today for the information that was laid out. I think one thing to know about these projects is, particularly when youre dealing with a project that has a long time frame, is that a point of departure doesnt always end with a final product, and a lot has changed in the last six years in terms of cost, in terms of the market, and then, most recently, as we all know, the pandemic that were living through. One thing that i wanted to say on the record that i thought was really important because i think theres been some discussion about this today, the commitment to 100 affordable excuse me 100 union labor on this project is a crucial element. Its one of these things in this market to go out and incurring debt and being able to finance projects. When you have a commitment letter from a union thats a funding source, it puts you in a category in this crisis all by itself. Without that commitment to 100 union labor, you might not have a fundable project in terms of the ability to go out on the private markets and get debt. Were not talking about a city subsidy. Were not talking about city credits, were not talking about government revenue, were not talking about a public source, were talking about hundreds of millions of investment from the private market, and in these uncertain times, as supervisor stefani said last week, any doubt prohibits that and hinders the ability to get that. But the fact that this is a 100 union labor is huk, and i just want to commend supervisor stefani for all the work that shes done in getting this over the finish line. I think that we would all like to see Affordable Housing on this site, but the 400 million contributed to this project will create Affordable Housing. I think that it could be in supervisor prestons district, supervisor stefani, or supervisor fewers district, and i think theyve all committed to that, so im going to let supervisor peskin speak about the last item that i was going to talk about in the intermediate rentals because i know his legislation would deal with that subject. Thank you, mr. President. President yee sure. Supervisor peskin . Supervisor peskin thank you, president yee and supervisor stefani. First, i want to acknowledge some of the words that supervisor preston was saying that were referred to at the last meeting as trust by verify. Its if a majority of this body agrees, and i here by seek all of your sponsorship, there is no way that if that legislation becomes law that any corporate rentals will be able to happen at the depending on what you want to call it, lucky penny, copper penny, the laurel site. So i fully intend to pass that legislation. I want to thank supervisor peskin for being a sponsor of that legislation and ask you to affix your names to that legislation. That would obviate any fears of this being used for shortterm rentals. President yee thank you. Supervisor stefani . Supervisor stefani the units will be 350 square feet, will be furnished for murphy beds. Used as housing for students, nurses, people who might come and go. This will not be a project that will be leased for master use. There are 68 studios in the makeup of this house. Only 40 of them will have the murphy beds, and what i just mentioned, so this is not a case of Corporate Housing run amok. I feel comfortable with it. Its something, like i said, i went over with the office of corporate and workforce housing. I urge your support, and with that, id like to call the question. President yee before we call the question, ill just make a quick comment. The concern about the corporate rental, supervisor peskin, thank you for moving that potential legislation through. Id also like to be a cosponsor of that, so at this point, supervisor i mean, mat am clerk, can you call the roll. Supervisor peskin thank you, mr. President. Clerk on item 6 [roll call] clerk there are ten ayes, with one no, with supervisor preston in the dissent. President yee okay. This item is finally passed with a 101 vote. Madam clerk, can you please c