General Public Comment, Public Comment will be held during each item on the agenda. Members of the public may address the board once per agenda item for up to two minutes. You will hear a chime when indicating you have 30s remaining, and a second chime when your two minutes are up. At this time, your microphone will be muted to comply with city rules and maintain hearing decorum. Okay. Are there any any Public Comments . Senate item number three approving the minutes of the february 2nd, 2024 hits committee meeting. Okay, commissioners, um, i move approval. Okay so moved by commissioner chen. Second. Okay all in favor . Aye aye. Guys have it. Thank you. Item number four review of proposed amendments to the disposition and Development Agreement and entitlement and transaction document. Uh, thank you, directors. Bob beck, uh, ill be presenting today with anne marie rogers. Uh, our deputy director. Um, also with us today is lee lewinski from, uh, the Mayors Office of economic and Workforce Development, who were instrumental in negotiating these changes. The um, we these changes have come about, um, because of, uh, changes to the project over the last decade. Um as well as as acknowledging and recognizing challenges that, uh, to the projects, um, financing and administration that we wanted to, to, um, address to make sure that we maintain the momentum of the program, um, um, to cd first came to, uh, tida and the city with, uh, concerns about the status of the project progress, uh, costs and other issues. Um and we initially explored the arbitration provisions of the dda that are in the agreement. Um but rather than heading down a path of arbitration or mediation, that would be, uh, by its nature, uh, somewhat adversarial in terms of, uh, and frankly, backwards looking rearward looking at, well, why are we here . And whos responsible . Um, we elected to work collaboratively and forward , looking on on how could we, uh, address the challenges that the project faced and, and keep the, the momentum of the project going . Um, okay. Can we bring up the slides. Okay okay. Uh, thank you. Um so, uh, just a reminder for, for the, the, the members of the public who may be watching as well as as members of the board, um, the documents that were adopted in 2011, uh, to entitle the program and move it forward are, um, theyre numerous and, uh, a complex set of documents, uh, just the disposition and Development Agreement and its many exhibits and, and the Development Agreement, those those two documents alone fill two four inch, uh, three ring binders. Um, so its a large volume of material thats included in these documents. Um, also, um, adopted at the same time as the, the da and the dda, uh, were the base closure and homeless assistance agreement, which is otherwise known as the tie dye agreement, or the one Treasure Island agreement that spells out , uh, the participation of one Treasure Island in the in the Housing Program on the island, uh, as well as as other matters. The tie tip, the Treasure Island transportation Implementation Plan was adopted, uh, by the board of supervisors as, again, a separate standalone document, uh, recognizing the importance of that that plan to the overall success of the project. Um as well as, uh, interagency Cooperation Agreement and the certification of the Environmental Impact report. All of those occurred, uh, in that june 2011 time frame. Uh, subsequent to that, there are two other key documents that have been approved. The conveyance agreement with the navy. Um and as well as the trust Exchange Agreement with the state lands commission, they were largely drafted in 2011, but they both those documents were not final. Until 2014. Um a little more detail on the disposition, Development Agreement and the Development Agreement, because those are, uh, the two documents to which the bulk of the amendments are being made. Uh, the disposition and Development Agreement is, is the, uh, transaction agreement between tida and Treasure IslandCommunity Development. Um, it contains the most the bulk of those exhibits and information that i was describing earlier, uh, with, uh, a total of 33 exhibits, including the financial plan, housing plan, um, infrastructure plan, rec and park, rec parks and open space plan, uh, schedule of performance, uh, financial proforma and many others. Um, the Development Agreement is an agreement between the city at large and Treasure IslandCommunity Development. Uh, it is more streamlined and a little more narrowly focused. Uh, it has only six exhibits. Uh, three of which are, uh, duplicative of exhibits to the dda. Um, and i mentioned some of the other, uh, 2011 documents that were similar approved, um, so, uh, our timeline Going Forward from here. Uh were having obviously this conversation today, but we expect that, uh, the actual legislation to be introduced at the board of supervisors next tuesday. And were working, uh, fervently to finalize the drafting of that document and exchanging it back and forth with, uh, Treasure IslandCommunity Development as and this team and the City Attorneys office. Um, we, uh, plan to come to. And when thats introduced at the board of supervisors, we will, of course, distribute it to the board members. A copy of that package in anticipation of coming back to this board to seek your approval. Uh, at the meeting of march 13th for the for the dda amendment, specifically, um, that sets up an april 4th meeting of the Planning Commission, uh, where they will, uh, hear, uh, consider the amendments to the Development Agreement as well as the design develop, not design for development. Um and well talk a little bit more about the design for development later, but essentially its a, uh, i view it as an implementation tool. Um, summarizing the special use subdivision regulations as applied to Treasure Island and um, uh, putting them more in a application workbook type format and then, um, we anticipate being scheduled at budget environment, finance and land use on the 14 and 22nd and having the items considered by the full board at their meeting of may 7th. And our overall objective here is to, uh, uh, keep, as i said, the project on on track, particularly the next sub phase of infrastructure is the stage two infrastructure for uh, encompassing hangars one through three. Um and uh, so, so part of this is a Financing Mechanism where the city will offer bonds. And ill talk a little bit more about that earlier, but we expect to go to the board of supervisors in the fall for, uh, the approval of that bond issuance in, in conformance with the, the, uh, proposed amendments. And then that would allow, uh, stage two infrastructure work to commence, uh, as expected, late this year, early 2025. Um, and just in terms of the sequencing, uh, the title board action, uh, is necessary. Uh before the Planning Commission because we refer, uh, those amendments to them and both the planning and title actions are required before the board of supervisors takes up the item. Thank you. Bob. Um, i rogers, and it is my deep pleasure to be before this committee today, uh, representing an immense amount of work by a high quality team, um, uh, that under bobs leadership, uh, uh, central to this has been our finance manager, jamie rubin, as well as the city administrator, the Controllers Office and the mayors budget office. Uh, as you know, Treasure Island has made significant progress in the last few years. We are nearing the completion of the first stage of construction with almost a thousand homes ready for occupancy. Parks, utilities, uh, public art, new streets, Ferry Service are all open or will be shortly. And yet due to infrastructure delays in a very challenging economy, this project is at risk of slowing or stalling. Its no secret that the city, the nation and the world have been in unprecedented times. And yet this project has advanced. Treasure island is the citys largest project underway. In a moment where there is a tremendous push to build housing in San Francisco, especially Affordable Housing, continuing this project is more important now than ever. And because of this, the city and cdd are committed to ensuring that the project does not lose momentum. Um, now is the time for both cdd and the city to double down on the project with thoughtful da and dda adjustments. The sponsors, mayor breed and supervisor dorsey, have committed to stay true to the spirit of the original deal. While affirming a mutual commitment to Treasure Islands next chapter. This effort is particularly important as we move to integrate the island and its services into the city. Fabric and, uh, service provision. Here are the objectives that were laid out from the outset to guide our work. Keep the existing Public Benefits package and that includes maintaining the Affordable Housing requirement of 27. 2. Defer our costs to improve financial feasibility. Modernize sections to be comparable to other Development Agreements in the city and with todays schedule on the island, and accelerate, Treasure Island generated revenues back to the project through this challenging economic period and finally, implement process improvements at and reaffirm commitments to review timelines. Thank you. Ann marie. Um, so ill highlight a few of the changes, um, to the to, um, to the dda, uh, including some of the more prominent ones, um, first category are scheduled performance changes. Uh it has taken us, uh, you know, activity really began in earnest in the fall of 2014 with the, uh, with, uh, beginning work on the sub phase applications and major phase and sub phase applications for, for the program and then, um, uh, demolition beginning in 2015. But but you know, that thats a decade ago. So its, its taking on a lot of time, uh, for us to get to the point were at, and weve made tremendous progress. Um, but, uh, originally we were it was envisioned that we would be further along at this point. And so a lot of the these changes under the schedule performance are kind of an acknowledgment of where we are and where we have yet to go. And, and how much time thats going to take. Um, also, um, there are some investments that are required in the schedule of performance by the developer here. Uh, and we working with, uh, particularly the police and Fire Department and the school district, uh, weve, weve agreed that actually the, the most more realistic, uh, milestones for those are later out in time. Uh, again in, uh, so by resetting the performance milestones for those, um, we help level out the, the cash flow requirements to build out the infrastructure on the island. Um theres also within the stage two Building Development parcels. Um, theres a plan, uh, proposal to, to, um, reallocate 27 inclusionary affordable units that would be constructed within stage two to, uh, later stages of the project. Um, but again, keeping the total 307 inclusion of affordable units, uh, in the plan. And as well as the total 27. 2 affordable um the two of the most significant changes uh, to the to the da and dda uh include uh pfizer changes to the to the um agreement, the Disposition Development agreement in particular, um, the, the da has originally, uh, drafted, uh, provide did uh for any type of revenues in excess of tied expenses to be turned over to, to cdd, um, and it also required, uh t cdd to, to um, backfill any shortfall of tida revenues relative to tide expenses. Um and that exposure to um, theres only been one year, uh, in the last 13 where we invoiced to cdd for authority costs. Um, but that that exposure in their pro forma to um, uh, create a, a big challenge, uh, to them and looking at our, our current and historical commercial leasing revenues, uh, as well as future, uh, Community Facilities district, uh, dollars that will be able to flow to tide to, to support uh, parks and open Space Operation as well as the maintenance of many of the buildings that we, uh, own and control. Uh, we feel that this, uh, uh, you know, tide should be able to manage within our revenues. Um but it does create potentially, uh, general Fund Exposure for the city should, uh, titan need to request supplemental funding . Um, the second and most significant, uh, item is that, uh, we formulated a proposal to issue, uh, up. To 115 million in city supported capital funds, reimburse the developer for stage two infrastructure as its created. Um the, uh, anticipate form of that debt issuance is through certificates of participation, which would be a general fund backed, uh, debt instrument. Um, but but that 115 million is being sized and, uh, relative to anticipated, uh, rent dues accruing to the general fund as a direct result of the project. For instance, sales tax revenues associated with construction. Um, uh, uh, tax increment, uh, dollars that uh, currently that are not pledged to the infrastructure revitalization and financing district and other other streams and again, the goal here overall is that, uh, the developers currently, uh, expended, uh, more than 800 million to advance the program to the state that were at. Um, meanwhile, the Community Facilities district and infrastructure revitalization and financing district have have generated, uh, roughly 100 million of reimbursements to the developers. So the developer has taken out a lot of leverage to get us to where were at. And, um, in the current markets, uh, it would be very difficult to get, um, continued, uh, uh, market based, uh, uh, finance to continue the infrastructure. And so this doesnt increase the total reimbursement obligations to developer, but merely, uh, provides a different instrument, uh, to bridge us to the time where the erfde and cfd are more selfsustaining for the program. Um the changes to the, uh, to authorize this alternative financing are going to are being drafted in the form of amendments to the financing plan, uh, which as i mentioned earlier, is an exhibit to. Both the dda and da, uh, necessitating amendments to both documents. Um, there are other reasons to amend both documents, but this is one, one item that is common to both of them. Um, um, and uh, as i mentioned, well be uh, uh, secured by the general fund. Um and uh, um, also, were updating the acquisition, reimburse agreement, which is the instrument by, uh, the document that guides the reimbursement of tiktok for, uh, expenses incurred in constructing the Public Financing to, uh, address and provide specific reimbursement application procedures relative to this funding so that that, um, those reimbursements can happen as the work is being constructed rather than waiting for the construction to be completed and accepted for, for reimbursement. Um this took a form of a lot of work in bringing us to where we are. Um, this, uh, um, solution, uh, was, is was very complex to, uh, come up with a concept that that, uh, both met the developers needs and also, uh, worked well for the city. Uh, and this is something that weve reviewed with the Mayors Office staff with Comptrollers Office staff. So, uh, again, the work of the office of Economic Workforce Development and the work of jamie rubin were instrumental in, uh, crafting, uh, this solution and Building Support for it. And ill turn it back to anmarie. Oh yeah. Second agenda. Thank you. Bob uh. Uh, so thank you. Lets talk a little bit about the housing plan. Um, here again, we are are retaining the full. 27. 2 of Affordable Housing on the islands. Uh, the changes would increase the ami for inclusionary rental units, um, from the average of 63 to an average of 80. This would allow people that cant otherwise get into units subsidized by hcd to have the opportunity to live in the island. Um, but still, those who are less than the median but also amended inclusionary milestones to reallocate 27 units from this upcoming stage two and spread them across future stages. It would extend the developer housing subsidy call period from 45 days to 90 days. And those are largely the housing changes for transportation. We would confirm the eligible expenses, uh, under the subsidy, we would allow tema, the transport agency, to access some of those subsidies a little bit faster to help with the start up costs of Transit Services. Similarly, we would add more flexibility into the subsidy and set aside an amount of up. To 13. 9 million. We would allow cdd to credit the interim Ferry Service<