Electronic devices are prohibitedat this meeting. Please be advised that the chair may order the removal from the meeting room or any persons responsible for the ringing of one or use of a cell phone, pagerer or other similar soundproducing electronic devices. Its strongly recommended that members of the public who wish to address the commission fill out a speaker card and submit the completed cards to the commission secretary. The next order of business is item 3 report on actions taken at a previous closed session meeting, if any. There are no reportable actions. The next the order of business is item 4 matter of unfinished business. There are no matters of unfinished business. The next order of business is item 5, matters of new business consisting of consent and regular agenda. First the Consent Agenda, 5a approval of minutes, october 4, 2016. Madam chair. Thank you. Do we have speaker cards for this item . No, we dont. Commissioners, we have the minutes of october 4th, 2016. Does anyone have any edits, comments . Motions . I approve. A motion by commissioner mondejar. Second. Second by commissioner pimentel. Please call the roll commissioner mechanics please announce your vote when i call your name, commissioner pimental yes. Commissioner bustos. Yes. Commissioner singh. Yes. Vicechair mondejar. Yes. Chair rosales. Aye. The five ayes. The Consent Agenda is adopted. Please call the next item. 5b, authorizing an exclusive negotiating agreement with tenderion Neighborhood Development corporation a california nonprofit public of pb yuan Young Community developers, a california nonprofit pba and prein an amount not in to exceed 3500,000 for the development of 140 affordable rental units including one managers unit, for a lowincome families and formally homeless households at Candlestick Point north, block 10a, bounded by ingerson avenue, m street, earl street, and a midblock break, and providing notice that this action is within the scope of the candlestick and Hunters Point shipyard phase 2 disposition and Development Agreement and that the Program EnvironmentalImpact Report for the dda adequately describes this action for the purpose of the california Environment Quality act k bayviewHunters Point reDevelopment Project area, distancing action, resolution no. 522016. Madam director. Thank you, madam secretary and good afternoon to the commissioners and good afternoon to the public and thank you so much for joining us. Commissioners were very pleased to bring this item before you. As you recall, you selected a suite of Development Teams and were bringing forward an exclusive negotiating agreement and predevelop loan with tndc and ydc before you now and you should expect to see block 11a shortly in next couple of months. We have the Development Specialist in our Housing Division and she will walk you through background, the terms of the ena loan, as well as the predevelop loan. Does she work for us . Yes, she is in our Housing Division. Good afternoon directors. As director bohee mentioned im Gretchen Beckman for the authorization to enter into an exclusive negotiating agreement in the amount of 3. 5 million for Candlestick Point block 10a one of the first ocii affordable parcels to be developed in the candlestick neighborhood of the bayviewHunters Point redevelopment area. Ill start by orienting everyone to the future Candlestick Point neighborhood. As you all know Candlestick Point is located in the nonvested southeast jennifer tip of the city of the shipyard. [tpha upt ] shipyard phase 2 and Candlestick Point project complete with residential, community and park space served by new transit lines and infrastructure. The first slide shows the plan for the Candlestick Point neighborhood in detail. When complete the candle stick point neighborhood will be anchored with my the candlestick center, outlet retail space, featuring ground floor space leased to communityserving and midsized chain retailers, as well as cafes and restaurants. In addition to the retail amenities the neighborhood will also feature a grocery store, four family child units serving approximately 60 children and internationals african marketplace and to be planned community space. Existing amenities of the neighborhood include brett heart elementary school, Gilman Playground and True Hope Church approximately half a mile away to the northwest of the site. 3rd and street and numerous shops located there is located approximatingly one mile to the west of the site. Finally Candlestick PointRecreation Area is approximately a quarter mile to the southeast of the site. The 10a site falls under the phase 2 disposition and Development Agreement. The phase 2 below marketrate housing plan requires that 32 of the total Housing Units built in phase 2 be below marketrate. These units will either be built as part of 100 affordable ociisponsored projects or they will be workforce and inclusionry units to be included by the developer. They are of the first of ociis 100 affordable lots and units will finish construction this winter. This slide is meant to review the rfp and developers selection project. As you know, staff released a single rfp for two ocii lots earlier this year. Respondents were encouraged to partner with organizations operating out of the southeast. Two teams complied with this requirement very well, and scored high in the rfp process and thus were recommended for selection including the 825,000 max when we started this conversation, wasnt it about 250. That was sometimes that was your portion of the subsidy or if we had other sources. It used to be 2 and now it creeped up to maximum 250,000 but that is your side and multiply that you leverage your dollars costs commissioner bustos . Commissioner sink. Singh. Vicechairmone jarr. Please call the next item, but before you read it, i need to make a statement. After yes, that is right. So please call the item and ill make a statement. The next order of business is item 5c, authorizing the issuance of new money tax allocation bonds as permitted in section 3417. 7a i a and b of the California Health and safety code to finance one Affordable Housing obligation in , et cetera. Okay. Im taking over. Madam secretary, call the next item, you have called it already. Through the chair, chair mondejar, i will give a brief introduction and turn the presentation over to the Deputy Director of finance and administration for ocii. Commissioners, again, i am so pleased to bring this bond item before you for this First Issuance for Affordable Housing bonds one of which was the project you approved that is in the bucket along with other important housing in the shipyard and Candlestick Point, as well as critically important neighborhoodserving infrastructure for the housing that were building in transbay. So we have incredible open space and public improvement and so our thinking has evoltched evolved. Just as a reminder, a credit is the revenue stream against which the issuer, which is ocii says were going to work to pay back the bonds, to pay the principal, which is the amount that we borrowed and the interest, which is the debt service cost. So which the market is looking at the bonds and determining whether or not to boy them, they are looking at the strength of the credit. We have five credits, the first is a credit we used prior to dissolution and we pooled all of the dollars from our many project areas to create one really diverse, really strong credit against which we issued our bonds. But then along came dissolution, and dissolution changed our Credit Structure because the requirement that we spend and so a new credit was created and that is called the Redevelopment Property Tax Trust Fund credit. We refer to as the rpptf credit. Then as i mentioned before, that credit didnt because of the limits of dissolution, didnt allow us to do the kind of financing that were proposing to you today. So ocii, reached out to the state legislature and to the governor, and we asked for this special authority to issue bonds in support of Affordable Housing of our enforceable obligations, we call them our enforceable Affordable Housing obligations. And in support of issuance of trans of infrastructure in transbay. We refer to this as the sb 107 credit and lastly we have two special credits you have seen before. Last year when we issued the 2016 bonds in mission bay and utilized these credits and these credits are special, because the property tax increment in mission bay is pledged. Which means we have promised the city, and the developer that we will use all of the property tax increment, developed or generated in that project area in furtherance of the development of that project area. And we separate that credit into the infrastructure credit, and the housing credit. So we have in summary we have five credits. We have the cross collateralized credit, which we used prior to dissolution. That was replaced by the rpttf credit post solution and you are new credit were using today and mission bay north and Mission Bay South credit and housing credit and the reason its important is because across the top line of the slide you can see that those were the credits that we had intended to issue against when we presented our budget to you last spring. We said that we were going to use 185 million in bond proceeds to fund Affordable Housing and asked for the authority to reissue bonds in the case to achieve debt savings. And to do that we planned to use sb 107 credit which was newly awarded to us. Once we hired the Financing Team and we started talking about this new credit and understanding the technicalities behind it, we realized that the obligation to protect the mission bay pledge, because remember, we have that requirement . Because of the pledged intentionment. Increment to spends the dollars in mission bay to, spend them in mission bay that we wanted to peel out that portion of the tax [frpbgs ]. Increment in issuing this separate set of bonds helps us really protect those dollars, and ensure that were implementing the pledge. So whereas we originally conceived of issuing two bonds a transbay under sb 107 and Affordable Housing bond, what were now doing is were issuing a single set of sb 107 bonds in two series. One series is 2017a, and that is because its for Affordable Housing, which means its a taxable bond. And one series for 2017b, which is to fund the infrastructure. And that means it has to be a tax exempt bond. So you can see in this little chart that the sb 107 credit which we had originally conceived of as fundings as covering all of our Affordable Housing bonds is now being split up slightly into the mission bay bonds, which well talk about later today, the box directly under the housing bond. So the mission bay portion is going into c and thes other housing bonds were going to issue is going into 2017a and then the transbay issuance that we had originally planned in the budget goes down into 2017b. So were basically taking the same pie presented to you in the budget and cutting the slices of pie slightly differently, but with the same ultimate outcome, which is providing dollars to fund Affordable Housing and to Fund Infrastructure and transbay. So what we are presenting to you specifically today with that background in mind is bond issuance of 112 million to funds Affordable Housing and bond issuance of 150 million to Fund Infrastructure in the transbay. The Affordable Housing bond as i said before is a taxable bond and were estimating about an 8 total interest cost for those bonds. Currently were looking at about 5. 8 Interest Rates, but there has been a lot of market volatility since early november. So we have given ourselves a wide margin to ensure that we can still meet our project fund needs depending on which way the markets go over the next few weeks . We wont be able to issue until spring, and that is four or five months away. A lot can happen in those 45 months particularly with the new administration coming in in january. So wasnt to we want to make sure that we have the room to meet our Significant Project Fund needs. The second bond were presenting is 2017b. That is 50 million of taxexempt bond to Fund Infrastructure in the transbay and there were looking at a slightly lower Interest Rate of 7 . A total consider cost of the 7 in the market right now were seeing about 5 Interest Rate. As a reminder, taxexempt bonds have a lower Interest Rate than taxable bonds because the holders of the bonds get the tax benefits of the taxexempt bond. Going into a little more detail about 2017a, there is a list on the right of the projects we intend to fund with the proceeds. Its about 536 units, all of which are in Hunters Point and Candlestick Point and of course as our Housing Program evolves, these numbers might change, but in this moment, about were looking at where our funding needs are and the number of affordable units we can fund, this is what were seeing. If you to talk in a little bit more detail about 2017b, those proceeds will be used to Fund Improvements of the folsom streetscape, the transbay park, essex park and underramp park and its the first of many issuances that will be coming before you to fully fund the project. But we anticipate that these dollars will get us through the remainder of 1617 and 1718. Our Financing Team you have met many of the members before in Prior Commission actions you approved. Psm as the Financial Advisor and kit hara as the coadvisor and [speaker not understood] and in a third Prior Commission action you have approved urban analytics as the fiscal consultant and well hear more about that later today about we talk about resolution 552016. And today for the first time you will be meeting our proposed underwriters, who have steeple, as the senior managing underwriter and back strom and stenson, an lbe as our comanagers. All these of these underwriters were selected through a competitive process that was run by our Financial Advisor in participation with the citys office of Public Finance and of course our finance team. And all three underwriters have provided Excellent Service to us in the past. So next steps pending your approval today, well be presenting the two bond issuances to the Oversight Board next week december [ 12 7b8 ]. 12th and depending the Oversight Boards approval well send to the department of finance for their approval. Pending their approval, well return to you with a second set of documents, our official statement, which is the document that we use to describe the issuance to the financial public to our potential buyers of the bonds. And pending that approval, we hope to issue in february and close in march. So if you have any questions, id be happy to answer them. Thank you. Before we take commissioner questions, are there any speaker cards . Yes, i have one speaker card, oscar james. Excuse me, oscar james again. I asked for this commission to approve this particular package, but i do have some concerns with some of these firms. Not troubling things, but can you kind of get them to do some scholarships or some Training Programs for places, like College Track . Who teaches or prepare our young people to go to college and what have you . Some may want to be in the financing business and what have you, to do some of the summer jobs, training for summer jobs and things like that . Where we can train different people in our community, young people in our community to advance their expectations, their minds, or what have you . A lot of these firms we have dealt with before, and they were successful and they completed an