And roll call vote, please. Certainly. [roll call]. Commissioner burton wasnt seated on the 13th. Ill go to commissioner gill million. Yes. Commissioner woo ho. Yes. Item 3 is Public Comment on executive session. Thank you. We will open the phone lines to take Public Comment at this time for executive session for members of the public and the operator will provider instructions now for anyone on the phone who would like to provide pc. At this time well open the lines for anyone on the phone wanting to make a Public Comment on executive session. Press star 3. The system will let you know when your line is open. Others will wait on mute until their line is open. Comments are limited to three minutes permission. The queue is now open. Please dial star 3 if you wish to make Public Comment. Thank you. Do we have anyone on the line . At this time there are no members of the public on the phone wishing to make Public Comment on executive session. Commissioner thank you. Item 4 is executive session. Commissioner may i have a motion. Motion to go to executive session. Second. Commissioner roll call vote. [roll call]. Commissioner commissioner gillman. Yes. Commissioner woo ho. Youre on mute. Commissioner motion passes unanimously. Now its open session. Commissioner ill make a motion we dont disclose anything the closed session this afternoon and the commission unanimously approved the point of Michael Martin as assistant port director. And not disclose anything else the commission discussed. Commissioner may i have a second. Second. Commissioner roll call vote. [roll call]. Commissioner motion passes unanimously. Next item please. Thats the pledge of allegiance. Pledge allegiance to the flag of the United States of america. And to the republic for which it stands one nation, under god, indivisible with liberty and justice for all. Thats item 7. Announcement. A member of the public has up to three minutes to make permanent Public Comment and note during the Public Comment the moderator will instruct dialing participants to use a touch tone stone to register their desire for Public Comment. Audio prompts will signal to dial when theyve been enabled for commenting. Dial in when the item you want to comment on is announced and if youre watching on the internet theres a broadcasting delay so when you hear the item you want to comment on dial 14156550001 then access code 1468494764. Please mute the volume on the telephone or computer. When Public Comment on the item is announced when prompted, press 3 to be added to the queue. And please mute your microphone and turn off your cameras when youre not presenting. That brings us to item 8, Public Comment on items not listed on the agenda. Well open the phone lines to take Public Comment on items not listed on the agenda. For members joining on the phone and the operator will provide instructions now for anyone wanting to provide Public Comment. Well open the phone now for anyone wishing to make Public Comment on the items not on the agenda. When prompted, press 3 to be added to the queue. Others will wait on mute until their libe line is open. The queue is now open. Thank you, jennifer. Do we have anyone on the phone . At this time theres no members on the phone wishing to make Public Comment on this item. Commissioner thank you. Seeing no public on the phone, Public Comment is closed. Item 9a the executive directors report. Good afternoon, the ports executive director. First and foremost, i would like to welcome senator john burton to the Port Commission rank. You paved the way for the modern port with the seminole 1968 legislation that bears your name. And advocates for the water front, you have been long devoted stakeholder of our water front to celebrate our world class working class heritage and our current promise to sustain and support equity and jobs and diversity in our vibrant water front. Were fortunate to have you join us and grateful to mayor london breed for our choice. Its notable youre joining the Port Commission during the commission because were preparing the port for short and longterm economic recovery to continue to protect and enhance our water front. Ob behalf of port staff were excited to welcome you to the Port Commission and we look forward to working with you into the future. My report is brief. I have an equity update followed by a report on the economic reopening. On equity the port has concluded our listening tour which is an important milestone for the development of our Racial Equity action plan. Were now working to incorporate recommendation to ensure it includes our collective voice and work with stakeholder including Racial Equity working group to complete required action items in seven areas of the phase 1 framework. The plan will be before the commission in december and excited for you to see it and comment on the plan. Economic reopening and port recovery. Last week our mayor breed announced the city is continuing its measured reopening as San Francisco is performing well against key public indicators. The city is opening nonessential offices at limited capacity. San francisco will also reopen indoor climbing calls and expand to other businesses and activities. We continue to benefit from the citys policy of reopening. Since the state introduced the tiered system august 28 San Franciscos approach resulted in us being the only place in the country in the yellow tier and continue to do well. Were on the time line for reopening activities and expanding previously reopened businesses in the following weeks. Additionally the city plans to enhance Indoor Dining to 50 and make expansion for places of worship, theatre, museums, zoos and aquariums all if the virus stays under control in future months. Winter is coming and as the Public Health director and city officials have warned we need to stay vigilant and exercise all the Public Comment measures of social distancing and masking as we enter the Holiday Season well have more businesses open and have more travel in and out of the city and as we are seeing the virus is spreading in other places in the nation and internationally. Very close monitoring and you can all find the data and key Public Health indicators on the department of Public Comment website and its structured to maximize the ability to track local Health Indicators but open the economy so we continue to recover in a safe and sustain manner. The reopening plan is Available Online at future of sf. Gov reopening. Im excited to announce our partners are offering dollar days on the ferry for the month of november. With 1 fares all month long to thank essential workers and welcome back riders. Theyll continue to adhere to Strict Health guidelines requiring all passengers to wear a mask and have limited capacity but be aware of the offer. Its very enjoyable to get out on ferries and takes traffic off the road. Note the 1 fares are only available through an app available on apple and android systems. That concludes my report and wish everyone a safe and participatory election cycle. Thank you. Well provide instructions for Public Comment. When prompted, press 3 to be added to the queue. We need to detail the services for everyone. Thank you. [indiscernible]. [indiscernible] commissioner commissioner burton . No comment. Commissioner senator burton, welcome and congratulations. Im glad you had a nice chance and welcome. Youre an icon in the city and state of california. Look forward to work with you. You know a lot about our history in the iow and great to have you on the commission. Thank you. Elaine, thank you for the report. I too would like to welcome senator burton to the commission. Its an honor to work with you and look forward to learning you from and experiencing all your knowledge about the water front and history and San Francisco and all i know you have to offer. Welcome. Thank you very much. Commissioner next item, please. 9d, the commissioners report. Commissioner commissioners is there anything to report . Nothing to report. We do not need to take Public Comment on this item. Next item, please, karl. That would be item 10a request approval of the resolution recommending the board of supervisors approve the district financing including the issuance of bonds in aggregate not to exceed 15,000,100 and a bond Purchase Agreement or form a pledge agreement, continuing calendar certificate, and official statement and authorizing and directing the executive director to cause the package to be committed to the board of supervisors and work with the director of the office of Public Finance to finalize and distribution of the official statement and the issuance of the bonds. This is resolution 2048. Thank you, carl. Good afternoon president and commissioner. Im Phil Williamson with port real estate and ill hand it over. Over a decade in the making and fully support all stakeholders at full build out the project will create a vibrant new water front neighborhood including approximately 1200 housing units, 40 of which will be affordable and that crosses a wide range of the median incomes from 45 up to 150 so addressing a wide swath of housing needs. And these are rental and retail and production space primarily on the ground floor of the projects buildings and the rehabilitation of 240,000 square foot pier 48. And well be breaking ground. Phase 1 will include two rental housing buildings totalled 560 units, 202 of which are programmed to be affordable. Two Office Buildings totalling 550,000 square feet and ground floor retail and totals approximately 65,000 square fet and excited to build a new park on the north side up mccovey cove and this will all be accompanied by robust project infrastructure including new streets, sidewalks and all the utilities that will serve the buildings and side users. Phase 1 is targeted to be complete in 2022 and again as i mentioned were looking forward to breaking ground next month. A lot of activity is soon to be coming to this part of the water front. Id like to introduce wyatt to continue the presentation. I work on the finance side of the Development Project and will present on the bond itself and the financing structure. The general financing structure on the bottom on the left are the different sources going in and the early investments in the project are developer and equity to build the horizontal infrastructure and Pre Development costs including things like roads, sewers, parks, etcetera. And the near term is the value of the project the ground leases provided an additional source of funds and the final source is two tax districts. The Community Facilities direct a special assessment and the infrastructure financing district which is baked on the value of the growth of the property and it increases the Property Value and this captures that value to invest back in the project. Eventually the isd will repay the developer and land value for all the cost of road sewers, etcetera. On top of these investments and this is a key factor is the developer receives 18 return on their investment in the project. Whatever they pay, they also receive 18 return to limit the total return and make sure that that amount is repaid as quickly as possible. The port uses those tax sources as much as possible and maximize the Public Financing available which is what were discussing today. The phase 1 budget includes the bond were discussing today and theres three main costs in the project hard costs the physical infrastructure, roads, suers with sewers, electrical and soft costs like engineering, permitting associated with the improvements and return on the developer equity based on the 18 return. The different Revenue Source the leases which have all been executed now. Theres one of the bonds and the general tax over the years. Theres the Community District and special practice and the infrastructure financing district tax increment. And we have the total cost of 25 million. The key sources 225 million and the Development Payment are the prepaid ground leases and the two are key. Because theyre early on, theyre the main sources to fund the cost of infrastructure. We already executed and received the Development Rights payment and next key and the bond on unimproved land was expected to generate 35 million for the project. Were hoping for a little bit more and ill get in to that in a second. Thats a critical piece of project sources were discussing. Theres action have been taken to get us to this point on the Public Financing side. In february 18 the project area was established around and the city made amendment to the special tax law to allow for special tax use for the pier 70 and things like seismic retrofitting historic rehabilitation and in may 2020 we had the formation of the Community Facilities district which is what is the security for the bond here today. The district has four purposes. The first say Development Tax which funds infrastructure and parks. It has 40 years of bond authority. The second is the office tax which funds infrastructure and parks as well however, the difference with office tark is it has park is theres more flexible use the third is a shoreline tax for protection study and facilities and the final [audio digitizing] and maintenance. The bond were discussing today uses only the Development Tax as a security. The other three come into play later. The bond issuance were discussing today is limited by two factors. First, the appraised value. The city has a policy of only issuing debt with a 31 value that means the value of the underlying property and land must be three times as much as the amount of bonds were issuing. This is a conservative approach to ensure we always have a means to pay the debt service. The current evaluation is 150. 4 million which would result in a value ratio of 50. 1 million in bonds. Were asking to exceed the bond amount of 50. 1 million. Its was from earlier in the year and were updating the appraisal with the latest data from covid. There may be a change from that. If there is a change the bond issuance will not exceed 50. 1 million or the 31 value. 50. 1 is the maximum but if it decreases we will not exceed that. Thats the main limiting factor here. The second is the tax revenue available to pay the debt service on the bonds and you need 110 coverage. The Development Taxes ants paid for phase 1 is in excess of this multiple times. Its not a factor here but will come into play for future issuances as the value increases due to the development. The sale of bond of 50. 1 million could create for the investered and the table to the right showed the potential uses of this amount including different reserve funds and the main use there is the Improvement Fund which will repay various infrastructure and development costs. Thank you commissioners and thank you for the action we ask for approval and the recommendation is the board of supervisors approve the financing in the amount not to exceed 50. 1 million including the form of the bond Purchase Agreement and form of the pledge agreement and continuing disclosure agreement. Were available for questions and also have our private partner available for questions. Commissioner commissioners can i have a motion . So moved. Second. Commissioner well open the Public Comment for those joining on the phone. At this time well open the queue for anyone on the phone who would like to make Public Comment on item 10a. When prompted, press 3 to be added to the queue. Comments will be limited to three minutes per person. The queue is now open. Commissioner do we have anyone on the phone . At this time there are no members of the public on the pho phone. Commissioner seeing no one on the phone, Public Comment is closed. Commissioner woo ho. [indiscernible] commissioner you have to speak up. [indiscernible] the presentation is straightforward. This is very complicated financing structure with many sources for a complicated but great project, mission rock. At this time i commend the staff and all the work thats gone into it to come up with the structure. I dont have further questions the this time. Commissioner i have no question on the bonds or how the financing structure was put together. I had one question because we also know how important the structure is to fund the development and excited this has anchored one of the Office Building and my understanding was that was an agreement