Community Investment and Infrastructure, Commission - Regular Meeting

provide a comment. We'd like to begin by inviting everyone who joined in person, if you'd like to provide a comment, please come up to the podium at this time. Seeing none in person, moving to our remote callers. I also do not see any callers on WebEx. Madam Chair, at this time, it does not appear we have any members wishing to comment on the minutes.

Thank you. I will get an approval of the minutes. May I get a motion to approve of the minutes?

I'll make a motion to approve the minutes.

May I get a second?

I second that motion.

Thank you. It has been moved and seconded. Fellow commissioners, you take roll.

Thank you. Motion made by Commissioner Shattuck, seconded by Commissioner Hakimi. Commissioners, please announce your vote when I call your name. Commissioner Hakimi. Is that a yes, Commissioner? Yes. Sorry. Commissioner Lim?

Yes.

Commissioner Shattuck?

Yes.

Vice Chair Miller? Yes. And Chair Scott?

Aye.

Madam Chair, the vote is five ayes.

Motion carries. Madam Secretary, please call the next item.

The next items are the regular agenda items. Number 5B and 5C, related to Transbay Block 4 West, will be presented together but acted on separately. 5B is authorizing an exclusive negotiations agreement and a pre-development loan agreement. IN AN AMOUNT NOT TO EXCEED $5 MILLION WITH TRANS BAY BLOCK 4 WEST LP, A CALIFORNIA LIMITED PARTNERSHIP FOR THE DEVELOPMENT OF APPROXIMATELY 314 AFFORDABLE RENTAL HOUSING UNITS AT TRANS BAY BLOCK 4 WEST TRANS BAY REDEVELOPMENT PROJECT AREA DISCUSSION AND ACTION RESOLUTION NUMBER 7-2026. 5C is authorizing an infrastructure development agreement in an amount not to exceed $1 million in pre-development funds with Transbay 4 Tahama LLC, an affiliate of Transbay Block 4 West LP, a California limited liability company to design and engineer the East Tahama Street extension adjacent to Transbay Block 4, and AND PROVIDING NOTICE THAT THIS ACTION IS WITHIN THE SCOPE OF THE TRANS BAY TERMINAL, CAL TRAIN DOWNTOWN EXTENSION, REDEVELOPMENT PROJECT FINAL ENVIRONMENTAL IMPACT STATEMENT, ENVIRONMENTAL IMPACT REPORT, A PROGRAM EIR AND IS ADEQUATELY DESCRIBED THEREIN FOR PURPOSES OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. TRANS BAY REDEVELOPMENT PROJECT AREA DISCUSSION AND ACTION RESOLUTION NUMBER 8-2026. DIRECTOR KOSLOWSKI.

Thank you, Madam Secretary. Greetings, members of the commission, members of the public here. These items, an exclusive negotiations agreement, a pre-development loan agreement, and an infrastructure development agreement, are implementing agreements for the development of Block 4 West. Block 4 West is located at the corner of Howard and Beale in the Transbay project area. It's being led by the development team of Mercy and Young Community Developers. I want to acknowledge the teams that are here in the audience here today. Thank you for coming. These agreements set forth the terms and conditions of the development. and authorize funding to prepare the design for the 300-plus, 100% affordable housing project and the adjacent new street, Tahama, to complete the street grid in Transbay. To present these items is Jasmine Kuo of the OCII's Housing Division. Jasmine.

My name is Jasmine Kuo, a development specialist on the housing team at OCII. We last discussed this project in October when I presented the commission with our developer recommendation following the request for proposals or RFP process. Today I am here to present on the first major action to move this project forward. So today's Commission action will authorize OCII to enter into an exclusive negotiations agreement, or ENA, and a pre-development loan agreement with the recommended development team, which will confirm the development team selection and provide necessary pre-development funding, allowing Block 4 West's development to begin in earnest. A second commission action will authorize OCII to enter into an infrastructure development agreement with an affiliate of the development team to provide pre-development funding for the design and eventual construction of East Tahoma Street adjacent to Block 4. Block 4 West, outlined in red on this map, is a 0.6-acre downtown site located on the western portion of Block 4, which is bounded by Howard Street, Beale Street, the planned East Tahoma Street, which is outlined in blue on this map, and Main Street. Within zone one of the Transbay redevelopment project area, we're down to just a few development parcels. Construction is wrapping up on block two, And Block 3 is planned for a public park, leaving us with just Block 4 and Block 12. Affordable housing is planned for Block 12, but that is a highly constrained, smaller site, which leaves Block 4 as the key balancing parcel for meeting the Transbay redevelopment plan's requirements for 35% of the residential units in Transbay to be affordable. To that end, OCII issued an RFP for development of Block 4 West and the adjacent East Tahoma Street in May of last year, with submittals due in July. An interdisciplinary evaluation panel interviewed applicant teams and provided scoring in August. The panel's recommendation was then presented to the Trans Bay Citizens Advisory Committee and Commission in October. Within the RFP, we asked respondents to base their proposal on a development program that includes approximately 300 to 325 affordable housing units across two separate buildings, a family building and a senior building. Because we knew the site was highly constrained, the RFP also asked teams to evaluate a single building alternative. Mercy and YCD's analysis, supported by additional high-rise research, showed that a single building on the site would be more cost effective efficient, and operationally aligned. Based on this, OCII is now moving forward with the one building approach. This slide provides an overview of the development team and their vision for the project. Mercy Housing is lead developer and will also be the property manager and service provider. Yonge Community Developers, or YCD, is a co-developer. The broader development team includes a joint venture of Kennerly Architecture and Planning and SCB as lead architect and Episcopal Community Services as the supportive services provider. Both Mercy and YCD will lead workforce and contracting outreach and compliance. For this project, the development team envisions a vibrant intergenerational community with 314 affordable homes for households of all ages while prioritizing preference holder needs. The design emphasizes resident well-being with shared spaces and amenities that foster connection across all ages. The preliminary program proposed by the development team includes a single building with 314 affordable rental units, 4,200 square feet of ground floor, community serving commercial space, and amenities including a central landscaped open space parcel, multiple roof terraces, a community room with a kitchen, amenity spaces for children and teens, and laundry and lounge rooms on every floor to help foster micro communities within the building. The preliminary massing shown in your commission packet is essentially identical to the massing we would have seen for two buildings, with a high-rise portion along Howard Street stepping down to eight stories along East Ahama Street facing the future park. But please note that this massing concept will be further studied and modified throughout the pre-development period, so this is in no way final or approved. To allow further and more detailed exploration and development of the program and design, the ENA and Predevelopment Loan Agreement are the necessary next steps. The purpose of the ENA is to grant this development team with the exclusive right to pursue planning and pre-development activities to develop Block 4 West. The ENA is secured by a $10,000 performance deposit and a performance schedule that will be aligned with the schedule within the pre-development loan agreement. Four key performance milestones are submittal of design documents and cost estimates, a subdivision map application, execution of an option to ground lease, and the execution of a ground lease occurring concurrently with approval of construction gap financing. The ENA term is three years and may be extended up to an additional 12 months. The pre-development loan agreement is meant to fund pre-development activities for the Block 4 West project in the amount of $5 million. It was approved by the Citywide Affordable Housing Loan Committee on Friday, March 6, 2026. Pre-development activities include working with the lead architect and other consultants to further develop the design, prepare drawings, and submit for permits. The pre-development loan bears 3% simple interest and will convert to a permanent loan at construction closing, subject to future loan committee and commission approval. Within the pre-development loan, some key loan conditions for the development team during the pre-development period include meeting and incorporating COP holders' needs through active outreach and engagement evaluating the implications of the project's large size on operations and long-term financial feasibility, including detailed review of unit sizes, bedroom mix, management and services plans, operating budget assumptions, and staffing levels, and refining these components throughout the pre-development period to ensure the building can be effectively operated at scale. And then finally, also evaluating the impact of the potential removal of permanent supportive housing units on competitive scoring for funding applications. As I mentioned earlier, the development team will also be responsible for developing and constructing the new East Tahoma Street. extension, which is adjacent to Block 4, for subsequent acceptance by the city as a city street. This will ensure the Block 4 West housing project has both pedestrian and emergency vehicle access before the first residents move in. Under the infrastructure development agreement, an affiliated entity of the developer will complete the pre-development work associated with East Tahoma Street. And OCII will reimburse this entity for this work in an amount not to exceed $1 million. The scope of work at this stage includes pre-development studies and the design and engineering of the street, sidewalks, utilities, street lights, and other streetscape improvements. Following today's commission action, the development team and OCII's contract compliance team will continue to work closely to issue RFQs and RFPs for professional services and for a general contractor, all in strict compliance with OCII's contracting and procurement policies. Outreach efforts for the general contractor will begin this month and will include emailing the city's LBE list, advertisements, and announcements to OCII's CACs and to various contractor affiliations, including hyperlocal groups in Bayview, Hunters Point. A pre-submittal meeting will be held for all interested contractors and subcontractors to attend. And the general contractors would be encouraged to pursue a joint venture or similar partnership with an SBE contractor to the extent economically feasible and practical. With the development team's architectural joint venture between Kennerly Architecture and Planning and SEB, their SBE participation is currently at 100%. Additionally, there will be an associate architect opportunity available to a San Francisco-based SBE architect. In terms of workforce compliance, the development team will be required to work closely with OCII's contract compliance team to ensure local hiring goals are achieved. Marketing for Block 4 West will adhere to the city and OCII's policies with a focus on compliance with occupancy preferences listed here, COP holder outreach, and providing extensive services such as rental readiness counseling, technical assistance, and a robust marketing and application process that is required to be provided early during construction and to be as broad as possible in their outreach to groups such as religious institutions. Much like every other aspect of development, marketing and outreach will be community-centered. In early 2027, we anticipate returning to Commission for approval of the schematic design and for preliminary gap loan approval. Throughout 2027, the development team will proceed through design and permitting and will request OCII Commission approval of construction financing in late 2027. Construction is expected to start in late 2028 with anticipated completion two years later in late 2030. That concludes the staff presentation. Thank you very much for your time and attention. I'm joined today by members of the development team. We're here for any questions that you may have.

Thank you.

Thank you, Jasmine, for your presentation.

Madam Secretary, do we have anyone from the public who wishes to provide a comment, question, or concern?

If there are any members of the public who wishes to provide a comment on items 5B and C, you may come up to the podium at this time. Seeing none in person, moving over to our remote callers. If you'd like to provide a comment, please press star 3 if you already called in. Madam Chair, it does not appear we have any members of the public wishing to comment on these items.

At this time, members of the public Wish and we're saying there aren't any more so hearing no further requests to speak on the item I will close public comment and I'll turn to my fellow commissioners for their comments questions or concerns Okay

Thank you, Chair Scott. I guess this is for anybody, really. Back to page 7, the execution of ground lease. We have on here 4,200 square feet of ground lease. Just curious, is that one?

Parcel of 4,200 square feet or the plan is to break that up into several I'm trying to visualize one Right now it's envisioned as one space their goal is to get a small grocery store because we know through community meetings that this is an amenity affordable groceries is something that's missing in this neighborhood and

Okay.

And if they're unable to secure a grocer, the plan would be to subdivide the space. Okay. That's a great answer. Thank you very much.

If I could just add to that, Jasmine, Commissioner Shaddix, Mercy is also the developer of the adjacent Transbay Block 2 parcel. That project is complete. It's leasing up. We're going to get you guys all there to do a nice walkthrough. They did an extensive amount of outreach about community. They have commercial spaces essentially across the street as well. they did an extensive amount of outreach of what the community needs were at that time. And so those spaces are getting filled with I think a family restaurant is going into one of them. But this idea of sort of a medium to smaller grocery store for sort of a community market has been sort of at the top of the list for a lot of the folks in the community. And so I just wanted to emphasize that desire. And if it can't get filled, like Jasmine said, they would be able to break it up into smaller units for others to use.

Vice Chair?

Yes, thank you, Jasmine. Good presentation. And I really appreciate the amenity spaces that are being provided. I think that's so important for our residents, future residents there, to enjoy the space and make it livable and a place they want to stay and raise their families. And the bicycle parking.

Vice Chair, if you could come closer to the microphone. Sorry. They can't hear you.

I appreciate all the emphasis on amenities, Jasmine. That's great for the future residents there. And I really like the bicycle parking that you're providing. 314 spaces for bicycles, I think. Yeah, that's great because you see more and more bicycles in our community and pedestrians out in this neighborhood. It's great. Thank you.

Anyone else? Well, Jasmine, thank you. I'd like to ask a couple of questions regarding the elevators in the building. What floors do you intend on putting seniors and people that may be challenged? Is there a plan for that?

Seniors would not be restricted to certain floors, but the elevators would, of course, have to serve every floor of the building. Right. And we will have accessible units scattered throughout the building. They won't all be concentrated on any particular floor or any part of the building.

I'm thinking and I'm loving the fact that it's going to be community and cross, you know, the generations. And that's exciting because it's a time for developing and restoring. a sense of community. I'm just thinking youth are youth. Seniors are seniors. And for respect of community, is there a plan of maybe having the younger on a certain level and seniors in a place? Are you just going to mix them all on one floor?

If I could turn that over to the developer.

Hi, Chair Scott, Vice Chair Miller, thank you, OCI commissioners. My name is Sean Wills. I'm from the real estate development team at Mercy Housing California. So like Jasmine mentioned, there won't be any units restricted specifically to seniors. But of course, seniors and anyone of any age is welcome to live in the building. Because of fair housing, law, we can't specifically say that one part of the building is for a certain age group demographic than another part of the building. Like Jasmine said, accessibility units will be shared and split evenly around the building. But certainly, when we are bringing folks into the building, whether it's through the coordinate entry system or through the Dahlia lottery system, we walk through the floor plans with them, we go through how the units and the building are designed, and we can provide them an option of if there are units available, if they would like to live closer to the elevator lobbies on each floor, if they want to live on a higher floor, if they want to live on a lower floor. If there are still units available, depending on what part of the lease up process it is, yeah, we're certainly open to hearing resident preferences. That's good.

I'm just concerned because our generations have changed. When I was coming up, there was always respect. for anyone even a year older. But it's different today. And we really have to understand it's a cultural difference now. And our young people are different. And expressing themselves just pops out at any time, any way. And I would not want a setup for failure. and would just ask that you just kind of really think it through. And I understand if fair housing would not prohibit that, that there would be some thought into what we call is respectful customs and manners. This is what you should not do or some conversation around respect and where they are. And I think that's going to give you one of your best, if it's an ongoing thing, things that would bring them together to get to know each other as well. But I know it can work. I've worked with that for years. But we always had to really work with cultural respect, manners, and customs. Yeah.

If I can add, thank you, Dr. Scott. I appreciate the advice. I think Mercy and young community developers and Mercy will be doing the property management. That task of creating community will primarily fall to them to develop that culture of mutual respect, resident respect. And so I have a great deal of confidence in them to be able to do that. And we've taken what you've said here to heart to try and implement that in a way that complies with all the fair housing rules, but also makes it a very welcoming place for all ages and all groups. Thank you.

Thank you. And Director Thor, I too have such confidence in YCD. and mercy and just bringing that up wanting to hear that you've thought about it and it will be something that happens. That's always today a concern of the older generation such as myself. How do we get them not to feel offended, feel loved, but yet understand there are customs and manners that we can consider. Yeah, for one another. Thank you. Is there?

I have to still learn the system over here. I apologize. Ah, there we go.

There you go.

It's making a funny noise, so forgive me if it's... Yeah. So can I ask details about the agreement at this point, or should I wait for a different time? Go ahead. Is that okay?

Commissioner, yes.

So I'm a lawyer, so I read this. I actually read it. I had a couple of questions. I just want to clarify. So the term of this loan, which is $5 million plus $1.2 million, For the second, I'll get this combination for $6 million loan. This is a transition loan just to start the design elements. And when that's done, getting into the actual construction contract with whoever is going to develop it. So there's a three-year period to pay back. I just want to make sure that. Right now, we're approving a three-year. But then it has an option for a 12-month extension. But it won't go through the commission. it will be executive director's choice to extend based on circumstances. So it won't come back for us if it gets extended for another year. Correct. For the extension.

For the time, Commissioner Hakimi, for the time extension. Yes. And I just also want to clarify, the way you said it, you implied there might be another developer who does construction. These are the two only developers who will build, design, construct, and operate the building. Perfect.

It's the same developers then, the two. OK. And then the second question I had, because I just want to understand. So in the loan agreement itself, it states that for the maturity of this loan, and may I ask that question? Sorry, that's a legal question. Yeah, any question is OK. It says that 3.3, it says that this loan will be forgiven or actually put into a different loan. I assume that's the main loan for the construction. So these terms are negotiated temporarily until the other contract comes in, and that will be the obligation, whatever is negotiated at that point. Correct. Does that make sure my question makes sense?

Absolutely. And Commissioner Kimme, maybe it's helpful if Jasmine could just walk us through the evolution of the project just a little bit. The ENA is the very first loan which encompasses a degree of work. We anticipate coming back for another loan for construction. And do you want to just maybe say a few things about that that help explain it a bit?

Thank you. So yes, this is for the pre-development loan. And that will get us to the point when we're ready to begin construction. So once we have all our financing in place, our other financing in place, we would return to the commission for a GAAP loan approval. And that is the larger loan that you're speaking of to construct the entire project.

My understanding is that this loan is not payable until three-year plus option of a 12-month, depending on the timeline. And then at that point, it rolls into. So technically, there's no payment back. It will roll into the next loan.

Right.

That's what I want to clarify.

Into the larger loan?

Thank you so much. That's what I want to say.

Thank you. Vice Chair?

Thank you, Chair Scott. I saw that the principal development issue, or the first one listed, was the cost per square foot and cost containment. In these inflationary times, how are we looking on the cost of this? Because it's already high per square foot for affordable housing, so expensive to build affordable housing, I understand. But do we have a handle on the cost containment strategies on this?

So although the cost per square foot, I think we did note that it is higher than comparable projects, the cost per unit is actually lower. But in terms of cost containment strategies, we'll be looking to minimize the number of different floor plates, you know, ensuring that each floor can be stacked efficiently and that we don't have multiple floor plates to deal with. So that'll bring down the cost of construction. Trying to remember what other, if you want to.

Yeah. Thank you. That's a great question. It's one of the main components of the job here is to figure out how to keep costs down. So yeah, like Jasmine said, making sure the floor plates are the same, one exterior skin system. We're going to explore a variety of different air conditioning HVAC systems that can take air flow through the center of the building, through the windows, through louvers, so different pathways to make sure air can ventilate and flow through the building. There's a lot of new technologies out there, so seeing what new products are on the market. Yeah, and we have a new set of design standards at Mercy. So we're in the last year since I think we adopted new design standards in May of 2025. We have a lot of standardized products that we're getting more in bulk, utilizing on a more consistent basis across projects to get better pricing. And then one of the key decisions that we already made was going from two buildings to one building, which we figured would save on hard costs about 9% while still achieving the same amount of units, community space, et cetera. So yeah, there's a number of different strategies we plan on employing to streamline and simplify design. Another one of them is looking into more prefabricated materials so that things can be made in factories, installed on site. Yeah, so there's lots of different strategies we're looking into.

Thank you. Mr. Wills, is it? Yes. Thank you.

Thank you.

Commissioners added one last thing to say so perhaps it's true director Kozlowski So that would be nice to have a walk through that area in person. I don't know how many we can take did not not be a quorum, but I think it's as someone who does walk the area. It's it's interesting to walk it on a weekend versus a weekday It's just two different worlds and I don't know if anybody wants to give up one of their Saturday or Sundays from I see Zach. If anybody wants to give up one of their Saturday or Sundays and maybe walk us around. And I'd kind of like to hear more of the vision in person, especially the grocery store and that. That would be kind of interesting if that's possible. And that is my final comment.

Thank you, Commissioner Shaughnessy. I think that's a great idea. I think unless Jim Morales says otherwise, the entire commission can come. You just can't discuss and decide any business on site while you're all present. But this is a social. No, Jim. You've got to notice it. You've got to notice it. Okay. So maybe not. Two at a time. But anyway, to get you out there, come in shifts. All right? Don't talk. Don't. to get you on site, see the building that people are moving in now, and talk to the folks at Mercy who are doing, again, the commercial tenanting of both this new site that's being planned and the existing site. And then we can have our project team who knows the area and the other projects that are nearby and give you a sense of what the neighborhood feels like and what's going on. And I know we did that walkthrough when you got seated, but we can do like a part two or a second version of that.

Thank you. Thank you, Director Thor. Commissioners, we will need a motion and vote for each of these items. Let's start with a motion and a second to approve item number 5B.

I'll move to approve item 5A.

5B. 5B.

Sorry, 5B. Thank you.

I will second that.

Thank you. Been moved and seconded. All in favor, will you take?

Aye. Do you want me to do a roll call? Madam Secretary, please take the roll. For item 5B was motioned by Commissioner, Vice Chair Miller, seconded by Commissioner Hakimi. Commission members, please announce your vote when I call your name. Commissioner Hakimi. Aye. Commissioner Lim. Aye. Commissioner Shaddix? Yes. Vice Chair Miller? Yes. And Chair Scott?

Aye.

The vote is five ayes.

Ayes. Motion carries. And commissioners, can I get a motion and a second on item 5C? May I get a second?

I'll second.

Thank you. Madam Secretary, will you please take a roll?

For item 5C, motion by Commissioner Hakimi, seconded by Commissioner Shaddix. Commission members, please announce your vote for item 5C when I call your name. Commissioner Hakimi? Aye. Commissioner Lim? Yes. Commissioner Shaddix? Yes. Vice Chair Miller? Yes. And Chair Scott? Aye. Madam Chair, the vote is five ayes.

Thank you, Madam Secretary. It's been moved. Motion carries. Madam Secretary, please call the next item.

Item number 5D is a workshop on the budgets and levies of special taxes and the annual appropriations limits for July 1st, 2026 through June 30th, 2027 for community facilities districts administered by the successor agency to the redevelopment agency of the City and County of San Francisco. Discussion? Director Keselowski.

Thank you, Madam Secretary. Members of the public and commissioners, this is our annual community facility district, or CFD. You'll hear that term thrown around, CFD. And it's the CFD budget review. This is the CFD budget for fiscal 26-27, which is the 12-month period starting this July. And this CFD budget presents approximately $57 million in infrastructure maintenance, capital repair, administrative, and financing costs for projects across six CFDs. And to present this budget is Mina Yu, the Deputy Director of Finance and Administration, and she'll be joined by the project team to present specific items and activities. Mina.

Thank you, Director. Good afternoon, Chair Ransom-Scott, Vice Chair Miller, members of the commission. Again, my name is Mina Yu. I am here to present the workshop on our community, facilities, districts, or CFDs budgets and annual appropriations limits. So in fiscal year 26-27, the total budget request for our CFDs is $56.8 million. The table before you shows the budget for each of our six active CFDs, and each budget is separate and discrete, meaning that funds cannot be moved between our CFDs. So I'll just walk you through the table by the expenditure types in the rows. So debt service is budgeted for CFD 6 and 7 for payments on bonds issued to reimburse infrastructure built in the districts. Capital repairs are budgeted in CFDs 1 and 8. In CFD 1, these funds will be used for improvements such as resetting pavers, irrigation repairs, light pole repairs, amongst others. In CFD 8, these funds will be used to repair artwork and the exterior of the site office building. Our maintenance and operations reflects professional services to maintain the park systems and streetscapes. This includes janitorial, security, utilities, tree maintenance services. And then our infrastructure budgets reflect the entire fund balances for CFD 6 and 7. We have collected special taxes over the years to fund anticipated reimbursement requests from our development partners that reflect multiple years of work. And then administrative expenses reflect our agency costs, consultant fees, insurance costs, and city and county fees. And then we have contingency amounts for CFDs 8 and 9 for any unanticipated expenditures. So the Melrose Act established community facilities districts. It enabled local governments to form special taxing districts to issue bonds to finance improvements and services and levy a special tax on properties within the district to repay bonds and fund ongoing services. The CFDs are voter approved and levy a special tax based on formula approved by commission at formation. And these taxes must be spent on facilities identified at formation. OCII has two kinds of CFDs. We have infrastructure and maintenance CFDs, and these are in the four project areas shown on the map before you. And the commission serves as a legislative body for the CFDs, and OCII staff administers these CFDs. And I will turn it over to Jasmine Kuo.

Good afternoon again, Jasmine Quo, Development Specialist. CFD1 is a maintenance CFD that provides landscape and hardscape maintenance for four public plazas and various streetscapes in several areas within the former South Beach Rincon Point project area. Last March, OCII entered into a three-year contract with Corotkin Associates to provide these maintenance services. The fiscal year 26-27 funding is $891,000, comprised of the $221,000 in special tax levy to fund the ongoing maintenance, a portion of the capital repairs and administrative costs of the CFD, and $670,000 from the fund balance to fund planned capital improvements. Capital improvements for this year may include major resetting of pavers and stones within the plazas and streetscapes, planting trees and empty tree wells, and replacing or aligning bollards. And now I'll turn it over to Nikki Henry.

Good afternoon, commissioners. My name is Nicky Henry, development specialist. I'll be presenting on Mission Bay CFDs today.

Can you use your mic, sir? Yeah, I'm sorry.

Higher is better. OK. Mission Bay is comprised of three CFDs. CFD 4 funds the infrastructure in Mission Bay North. It is currently inactive, and no special tax is being levied. CFD 5 funds the maintenance and operation of Mission Bay parks. which is performed by the Ports and the Recreation and Parks Department and is funded by the CFD. The map to the right shows the both completed and planned open space, along with the underlying ownership. And CFD 6 funds the new public infrastructure in Mission Bay South. The CFD 6 budget totals $37.8 million, consisting of $25.4 million in fund balance and $12.3 million in special tax revenue. The majority of the budget, approximately $29 million, is allocated to reimburse the master developer for the construction of public improvements in Mission Bay South, including streets, open space, and utilities. The budget also includes $185,000 for CFD administration, covering staffing and special tax consulting, and $8.5 million for bond debt service. No new CFD debt is planned for fiscal year 26-27. CFD 5 funds the maintenance and operation of Mission Bay Parks, completed to date, totaling 30.7 acres. The total budget is $4.3 million, comprised of $1.7 in fund balance and $3.1 in special tax revenue. As shown on the previous slide, waterfront parks are maintained by the port, while the remaining parks are maintained by the Parks and Recreation Department, with a total cost of $4.2 million, covering labor, materials and supplies, utilities, and security. The remaining budget supports CFD administration, including staffing and consulting. As anticipated, as additional parks have come online, reliance on the fund balance has increased. At the current rate, the city will need to identify alternative funding SOURCES WITH THE NEXT FIVE TO SEVEN YEARS, AND THE CDFD IS SET TO EXPIRE IN 2043, SO THIS IS, WE KNEW THIS WAS GOING TO BE COMING. AND THANK YOU. I'LL TURN IT OVER TO LAURA SHIPLEY.

Could you state your name, please? I'm Inder Garawal. I'm a development specialist for the Hunters Point Shipyard and Candlestick Point. The Candlestick Point and Hunters Point Shipyard project area has three CFDs. There's CFD 7, which covers infrastructure, specifically streets and parks, that have been constructed in the Phase 1 area. CFD 8, which covers long-term park maintenance. As you may recall, last month I was before you for approval of the joint facilities agreement with Rec and Park and the San Francisco Arts Commission. That long-term maintenance is funded by CFD 8. And then finally, there's CFD 9, which covers both infrastructure and maintenance for Candlestick Point and the Hunters Point Shipyard. A bulk of our CFD funding for fiscal year 2027 will focus on Phase 1, so specifically CFD 7 and CFD 8 for the long-term maintenance of parks within the Phase 1 area. And on the screen here, I have displayed the open space and parks for both the hilltop and hillside areas within the Phase 1 project area. And as you all are aware, the hilltop area is constructed and open to the public, so Our CFD 8 funds are going towards maintenance of those parks. And Hillside will come online in the future. So for CFD 7, this is specifically dedicated to reimbursing the developer, HPS Development Code, for parks and streets that they have constructed at the Hilltop area. In fiscal year 2027, we are anticipating a reimbursement of about $11 million from CFD 7 to the developer. This is separate from the street acceptance process by the city, but it happens in coordination with the Department of Public Works, who inspects the infrastructure that has been constructed and they deem it substantially complete. So it's not fully complete and accepted by the city yet, but specific components have been deemed substantially complete, and therefore, Lennar, OCII, and the city can undertake this process of reimbursing the developer for their costs related to the streets and parks. CFD 8, of course, covers long-term maintenance of the parks. In fiscal year 2027, about $1.3 million will go towards parks and art maintenance. This will be used by RPD for specifically equipment, supplies, and labor needed to steward the parks over the next year. There's another $684,000 going towards capital expenses. About 334,000 of that is going to the San Francisco Arts Commission to conduct some capital work on the art pieces in the area. Back in 2025, the San Francisco Arts Commission conducted an assessment of the art pieces, the eight art pieces that will be under their jurisdiction to see what repairs or capital needs are needed for those art pieces. And they determined that there's some repainting that needs to happen, maybe coating and waxing for some of the art pieces. After all, they've been in the elements for all these years. And now that this is their first opportunity to maintain these art pieces, They're hitting the ground running, requesting $334,000 to perform these repairs. We expect these to be one-time requests or at least one time in the near future. They may come back a few years later if additional repairs are needed. And then another $350,000 is going to RPD for capital expenses, specifically for repair work outside of the site office building. There are some cracks and chips. They don't need to replace anything or demolish a building. They just want to make simple repairs so that they can activate the site for programming in the future. And finally, CFD 9. These funds, about $450,000, are being held in reserve. As of now, there are only four parcels within CFD 9. And that's the candlestick area that is paying into the CFD. And that's actually FivePoint, the developer, paint into this fund. But as things do get built at Candlestick Point, and we anticipate construction starting later this year, more parcels will be annexed into the CFD, therefore generating more revenue, and then that revenue being used to reimburse the developer for streets and parks that they construct, and then the long-term maintenance of those streets and parks. And I'll pass it back to Mina, I believe.

So in addition to the budget information, we're presenting the annual appropriations limits for your consideration and review. So the Melrose Act provided for the establishment of these limits by resolution. Per state constitution, the total annual appropriations may not exceed the appropriations limits for the prior year adjusted for the change in cost of living and the change in population. I just want to emphasize that the appropriations limits is not an appropriation of funds. The limits just exist to ensure that CFDs don't raise or spend excessive tax revenues without voter approval, and it provides transparent documentation of the maximum allowable tax revenues. So this table shows what those appropriation limits were at the year of inception and what they are for the upcoming fiscal year 26-27, adjusted by those two factors I mentioned previously. And then this table provides a comparison of our budgets to those annual appropriation limits, demonstrating that our annual budget authority will not exceed those limits for each of our CFDs. And this table just shows the limits for each of those CFDs. And this concludes the presentation on the workshop on our budget and annual appropriations limits for our CFDs. We will bring this item back before you on the 21st for your action.

Thank you, Mina. Madam Secretary, do we have anyone from the public who wishes to provide a comment, question, or concern?

If there are any members of the public who wish to provide public comment on item 5D, you may come up to the podium at this time.

It's Ace Washington. I'm not the Fillmore Corridor Ambassador. I'm the resident from the Western Edition. And I'm looking to do these procedures. And your staff members can't be over 37, 38. So that's how long I've been with redevelopment. I was redevelopment for all of y'all except this gentleman, that gentleman. So y'all don't even know what I'm getting ready to talk about, the history of the Fillmore. And I'm just going to say it. I'm going to say it publicly. Why did you leave unfulfilled obligations in the Fillmore? Listen, it's 20 years since y'all been gone. So I'm here to advocate for the Fillmore. We're going to try to bring redevelopment OCII back to the Fillmore for at least a couple of years to safeguard. Listen, we got, let me just give you an idea. We got Yoshi's, Ella Hill Hutchins, Buchanan Mall, Plaza East, West Bay, Thomas Paine, Martin Luther King, Hayes Valley, Friendship West, Gary, I'm just kind of nervous. We got 18 projects in the field. Where the hell are y'all at? I'm just angry listening to how y'all going over this. We need this money for that. We need this money. But I ain't a damn dime coming to the Western Edition. So I'm going to be axing. that y'all come back. We're going to ask the mayor to bring y'all back for two years at least to safeguard, to find out what all these developers and tell them what they have to do. And I'll be back to talk. Oh, I've got another minute and a half. So basically, my name is Ace. I am on the case, but I'm here just dressed as a resident coming to talk to y'all when it's public time to talk. Thank you very much. Thank you, Mr. Ace.

RANDALL EVANS, Good afternoon. My name is Randall Evans. And I, too, am seeing how you guys are splitting up your budget and about all these different areas. But let me just give you not enough time to tell you everything. But when you talk about 4,700 black people that were erased from a community, you're talking about 800 businesses erased from the community. You're talking about 2,500 Victorian houses erased from a community. And you, the development agency, had a whole lot of doing in that. Then they closed the area out. They brought Brackle in and closed the area out. Now there's no one sitting over it. So just like the gentleman that spoke before me, I think it's very important that the request starts here, that you guys need to get back into the Western Edition and deal with those projects that you left unfinished. The saddest part about it is that there was things that were supposed to take place, like the certificate of preference building. You turned that into something for other types of folks to move into, just like the areas that's undone and unfinished up there on Ellis and Scott Street. You gave it to the Jewish community, and there's still just a big empty slot there. There's other projects and other areas that should have been more safekeeper, in a better word, in a better sense. But it's difficult to say everything you need to say here with one or two people. So it's painfully obvious that we got to bring about 25 people or 30 or 40 people up here into you guys' commission and make it clearly known that it's time for you guys to reconsider how you left out of the Western Edition. It's just a shame for all these people to disappear and erase, not to mention the 900 people that are left with the Jonestown Guyana folks. 900 people dead and buried in Oakland. You're not hearing it enough, because now you're talking about all these other community areas. It's like we don't even exist anymore. We're not dead. We're still there. There's a lot of us there. And it's about our children's children and children now. And that's who I'm speaking for. And I think you all should be about that business too. It's unfortunate that you can't respond and we have a conversation about this, but it's painful to be up here to speak of it. You know, I'm 70 years old. I started raising hell about this kind of stuff when I was 18, and I'm still here. And it was just evaporating and disappearing. And we need your help to be a part of this.

Thank you. Mr. Randall Evans, thank you. And again, thank you, Mr. Ace. Thanks.

Are there any other members of the public in person who would like to comment on this item? Seeing none in person and checking the remote participants, Madam Chair, it does not appear we have any other members wishing to comment at this time.

Seeing there are any others to speak, I turn to my fellow commissioners and ask if you have any questions, comments, or concerns. Vice Chair? Yes.

Thank you, Dr. Scott. Thank you, Dr. Scott. Appreciate your comments, Mr. Ace and Mr. Evans. Regarding the parks in this part of our jurisdiction, I think every time I go out there, I'm amazed at how well the parks are maintained and the infrastructure looks good. And it's so important.

Commissioner Miller, my apologies. Could you speak just a little bit closer to the microphone?

I'm sorry, Director. Every time I'm visiting these areas, I appreciate how well-maintained the parks are and how great amenities they are for the neighbors. I appreciate that. And the CFD is a great mechanism to keep that maintenance. We spend all this time and effort building affordable housing and infrastructure and to have the CFD in place to be able to finance the maintenance is really great and support these CFD expenditures. And I wanted to thank Mr. Ace and Mr. Evans for your comments too.

Anyone else?

Madam Chair, if I may. Appreciate your comments, Vice Chair Miller. I also want to acknowledge the city's rec park department that for the past handful of years has been maintaining Mission Bay. I think people in Mission Bay especially are really, really grateful for their work. And we're transitioning that now to hundreds point shipyard as well So I just want to acknowledge their work because they're the gardeners and everyone who the landscapers who are all doing that work directly.

I Want to thank you both Mr. Ace and you've not stopped being a voice in a bill Tolling for our community and thank you. Mr. Randall for being here. I I'm a native, and you're in your 70s. I'll be 80 this year. I have gone to school, worked, served, and helped build my family, has helped build this city. And I am very concerned about District 5, as well as Haight-Ashbury, every community. Lakeview, I've lived in all of them. And we do have a place and a presence that needs to be addressed. And thank you for saying what you've said. And you're not forgotten. You're not forgotten. That's the bottom line. Thank you. Fellow commissioners, if there are no more, we can move on. Madam Secretary?

Next is item number 5E, workshop on OCII's budget for the period July 1, 2026 through June 30, 2027. Discussion? Director Kozlowski.

Thank you, Madam Secretary. And members of the public and commissioners, this is another annual workshop. This is our annual agency budget, distinct from the community facilities district budget that you just heard about. We manage them both. It's for the same fiscal year, fiscal 26-27, which is the period of July 26 through June 2027. And it presents just over $670 million in projects. And the expenditures in the proposed budget will enable us to implement our various agreements and complete our enforceable obligations in our major project areas, including Mission Bay, Trans Bay, Hunter's Point Shipyard, and Candlestick, and continue our good work to build vibrant and inclusive communities for all of San Francisco. And to present this item is Grace Longardino from the Finance Division. And she'll be joined, similar to the CFD presentation, she'll be joined by others from OCII. Grace.

Thank you, Director Kozlowski. Good afternoon, Chair Ransom, Dr. Ransom-Scott, Vice Chair Miller, and commissioners. I'm Grace Longardino. I'm the accountant IV for the OCII Finance Department. I'll be presenting our budget for the 26-27 fiscal year. As the successor agency to the redevelopment agency, OCII is charged with completing work required under enforceable obligations approved by the State Department of Finance. Those enforceable obligations are our projects in Mission Bay North and South, Transbay, Hunters Point Shipyard, Candlestick Point, and includes our retained affordable housing obligations in these project areas. Our mission and strategic goals reflect this charge. Upon completion of our agreements, we will have built 22,000 units of housing, of which approximately 30% will be affordable housing, 379 acres of parks and open space, and 13 million square feet of commercial space. In 26-27, our major initiatives will be to complete parks, a pump station, and streets in Mission Bay, secure the permit to construct under-ramp park, and complete construction of the streetscape for the Block 2 affordable housing project in Transbay. and to complete street acceptance on Hilltop and related shipyard infrastructure in Hunters Point Shipyard and Candlestick Point. In our housing program, we will be funding projects in Transbay, begin pre-development work in Mission Bay, and complete project closeout on projects in Mission Bay and Hunters Point Shipyard. This is an overview of our budgeting process. Our recognized obligation payment schedule, or ROPS, which serves effectively as our state budget, shapes our local budget, which is before you today. We presented a workshop on our ROPS for the 26-27 fiscal year to the oversight board on January 12th. and the Oversight Board approved our ROPS on January 26th. We then submitted it to the Department of Finance by February 1st. Department of Finance is currently still reviewing our ROPS, and we expect to receive the decision letter by April 15th. The budget before you today reflects our ROPS for the 26-27 fiscal year, and upon your approval, we will submit our budget to the Mayor's Office in May. Our budget will then be submitted to the Board of Supervisors by June 1st. Our 26-27 budget is $676.4 million. This table provides a summary of sources on the leftmost column and project areas and uses across the top row. The majority of our authority requests comes from bonds due to the planned new bond issuances for Mission Bay, Trans Bay, and affordable housing and replacement housing. Our largest use is in the Mission Bay, including affordable housing and replacement housing projects. This table summarizes our budget sources. Our largest source is bonds at 36.5% of our budget. Our second largest source is property tax at 25.8%. Developer payments reflect fees received from our development partners in the current budget year. Other funds reflect lease revenues and other sources, such as rent. Fund balance reflects revenue received in prior years. These are largely developer fees, property tax from prior years, bond proceeds from bonds issued previously. These sources are generally restricted and used to specific project areas. We bank these in our fund balance and program them when the use arises. Prior period authority is expenditure carried forward from prior year, including affordable housing loans awarded but not yet drawn down fully, and multi-year construction budgets. This table provides a year-over-year look at our budget by source. We have an increase of $54.2 million. This increase in sources is primarily due to an increase in bonds planned for issuance in 25-26 to fund replacement housing projects and an increase in fund balance for affordable housing loans. The total increase is offset by a decrease in prior period authority. due to continued spending down on affordable housing loans in Hunters Point Shipyard and Transbay, Mission Bay infrastructure reimbursements, and a delay in the Transbay Park schedule. This table shows our budget uses separated by direct and indirect programming. Our largest use of funds is affordable housing at 24.3%, followed by infrastructure at 23.9%, and then replacement housing at 22%. Our operations are 3.1% of our total budget. Community development and workforce reflects our grants to fund community benefit programs and work with OEWD to support local hiring efforts on OCII-administered projects. Debt reflects our debt program costs. The pass-through to the TJPA are funds that we received from state-owned parcels that we pass through to the Transbay Joint Powers Authority. This goes primarily towards debt service on their bonds and is required under the tax increment and sales proceeds pledge agreement. Other funds are rents that we pass through from the developer to the Navy. This table shows our uses year over year. Our budget is increasing by $54.2 million. Changes to current year uses compared to prior year are primarily due to an increase in new replacement housing loans and a planned increase in debt service on our bonds issued for those loans, as well as our associated staff costs. This increase is offset by our continued spending down on our existing affordable housing loans. I'LL NOW HAND THE PRESENTATION OVER TO NIKKI HENRY TO GO OVER THE MISSION BAY PROJECT AREA.

GOOD AFTERNOON, COMMISSIONERS. MY NAME IS NIKKI HENRY. GOOD AFTERNOON, COMMISSIONERS. NIKKI HENRY. NICE TO SEE YOU AGAIN. THANK YOU. DEVELOPMENT SPECIALIST. I'LL BE PRESENTING ON MISSION BAY. Mission Bay's total budget is $64.4 million. Approximately 90% of that, or $58.2 million, is allocated to reimburse the master developer for new infrastructure, including streets, open space, and utilities. This includes recently opened Park P19, the 5.7-acre Park P2P8 expected to begin construction later this year, improvements to the Fifth and King intersection, and completion of a stormwater pump station and Bridgeview Way mid-block. The budget also includes $2.3 million for staffing, supporting land use and design review for infrastructure, as well as residential and commercial development. An additional $3.1 million is allocated for professional services, which funds other city departments responsible for reviewing and approving construction documents and expecting the work as it is completed. A small portion is also dedicated for public art at P2P8. The majority of the funding source are bond proceeds for $44.8 million. Additional sources include $3.7 million in developer payments and $15.9 million in fund balance comprised of reserves and bond interest for a grand total of $64.4 million. This slide shows some of the major projects previously mentioned. The top left is the stormwater pump station in Mission Creek Park near the Fourth Street Bridge, currently under construction. While the pump station is not visible and sits underground, it is a key piece of infrastructure in the new separated sewer system in Mission Bay. On the right is the Fifth and King intersection realignment and signalization work at the landing of the I-280 freeway. The bottom left is Park P2P8 along Mission Creek. The small image is the public art to be provided by the Arts Commission that will go into the park. The bottom right is Bridgeview Way, a pedestrian-focused mid-block between completed OCI-sponsored affordable housing on Blocks 9 and 9A. We will also be working on the design of parks P7 and P9 and the redesign of Mission Bay Commons, where the food truck and miniature golf interim uses are located. In 2005, the former agency commission approved a very passive park designs with large costly water feature. The community has expressed the desire to redesign the parks and keep the current active uses. We are in the early stages of the design process, and we will be bringing the schematic designs to the commission for approval early next year. This concludes Mission Bay, and I'll turn it over to Laura Shifley for Transbay.

Thank you, Nikki. Good afternoon, Chair Dr. Scott, Vice Chair Miller, commissioners, and Director Kozlowski. I'm Laura Shifley, a development specialist, and today I'm presenting on behalf of Transbay project manager Ben Brandon, who is away this week. I will walk you through the fiscal year 26-27 Transbay project area work program and fiscal year budget sources by uses. The image on this slide in front of you is a rendering of the Transbay redevelopment project area at full build out in the year 2035. And I'm pleased to say that OCII has made great progress delivering our projects and realizing this vision. In fiscal year 26-27, the key activities we will focus on are, firstly, the environmental testing and investigation of Under Ramp Park. If the environmental testing shows a feasible path forward, we will work on permitting, bidding, and beginning construction of the park. However, these activities are contingent on the environmental testing on the site. Secondly, we will complete construction of the Block 3 Phase 1 infrastructure project, currently under construction, and it consists of the East Clementina Street extension and the Main and Beale streetscape improvements. We will seek community feedback on the future program for the Block 3 park. We are managing the interim activation of the former temporary terminal site and the Essex Hillside open space. We are developing the program and design of the Block 4 West affordable housing projects, which you heard before this presentation, while monitoring the market to determine the best time to release requests for proposals for the Block 4 East project site. And finally, we will sponsor critical infrastructure development to support the Block 4 West affordable housing project, which is planned to provide 325 new units of housing for families and the formerly homeless. And again, the East Tahama Street Extension must be designed and constructed alongside that Block 4 West housing project, because the new right-of-way will provide important ingress and egress for the project. So we've budgeted $90 million to fund the infrastructure covering pre-development and construction of Under Ramp Park, construction completion of the Block 3 Phase 1 infrastructure project, pre-development work on the East Tahama Street Extension, and stakeholder engagement related to the Block 3 Park. We've budgeted $32 million in property tax proceeds to fund the required pass-through to the Transbay Joint Powers Authority, or TJPA, $2.4 million for staff, and just under $700,000 to fund the consultants that support our projects. The total budgeted amount to cover our Transbay work program for the next fiscal year is just over $125 million. Now we'll look at the sources of funds that support our Transbay work plan in the next fiscal year. The primary source is $84 million in bonds to fund our infrastructure work, followed by $34 million in property tax proceeds. 2 million of that is funding our project area staff, and 32 million of that is pledged to the TJPA. The third key source rounding out the Transbay budget is $7.2 million in fund balance, which is simply the balance of our Transbay park fees and interest. We've also budgeted $50,000 in developer reimbursements related to staff work to close out some of our completed projects. While infrastructure is the primary use of our Transbay budget funds in the coming fiscal year, it's important to clarify that we do not anticipate expending the full $90 million. This sum includes $13.4 million in existing bond proceeds that are currently funding construction of the Block 3 Phase 1 infrastructure project, the potential redesign of the Block 3 park, and the pre-development work on the East Tahoma Street extension. The budget also includes the issuance of another infrastructure bond, currently estimated at a not-to-exceed value of $70.6 million to fund the eventual construction of the under-ramp park project. Since we do not plan to fully expend the bond proceeds tied to infrastructure in the next fiscal year, the largest true expenditure will be the TJPA pledge at $32 million. As I think Grace mentioned early in the presentation, the TJPA pledge is codified by the Tax Increment and Sales Proceeds Pledge Agreement, which irrevocably commits net tax increment and sales proceeds from formerly state-owned parcels in the project area to TJPA's Salesforce Transit Center project. Consistent with this agreement, OCII will transfer pledged RPTTF non-administrative funds to the TJPA to finance the continued development of the transit center project. The $7 million in fund balance is comprised entirely of Transbay Park fees and interest, and again, it covers the consultants and service providers who support our Transbay work. Of these funds, there is approximately $1 million set aside for continuing environmental testing on a portion of the under-ramp park site to determine the extent of soil vapor contamination that may require remediation as part of the project's development. And therefore, the project's overall scope and funding will need to be evaluated once the additional testing is complete. This slide shows a few images representing our active projects in Transbay that we'll continue to work on over this fiscal year. At the top left is a construction photo of the East Clementina Street extension. That's the key element of the Block 3 Phase 1 infrastructure project. On the right are two views of the future Under Ramp Park project. And lastly, on the bottom left, is a bird's eye view of the East Cut Landing partners' interim activation at the former temporary terminal site. As OCI owns the site, we play a property management role. However, we do not fund the interim activation itself. So this wraps up the Transbay portion, and I'll now turn things over to my colleague, Inderbir Graywell, to provide the overview of our Hunter's Point shipyard and Candlestick Point project areas.

Thanks, Laura. I'm Inder Garawal. I'm a development specialist for the Hunters Point Shipyard in Candlestick Point. On the map here, we have our project area. So just as a brief overview, Hunters Point Shipyard phase one is slated for 1,428 housing units. Of that, we have 767 housing units already constructed. It also includes 13 acres of parks. It's being constructed by HPS Development Co. The second project area is Candlestick Point and the Hunters Point Shipyard Phase II, being constructed by CP Development Co., also known as Five Point. There we have combined 10,700 housing units, about 6.9 million square feet of commercial, and roughly 300 acres of parks between the two project areas. For fiscal year 2027, we plan to expend a little less than $14 million. I know that's chump change compared to my counterparts at Mission Bay and Trans Bay, but it's a reflection of where we're at on the project, the planning and design phase as we move towards construction. About $10 million of that $14 million is going towards plan review and finalizing these designs, specifically for phase one. As the developer has completed infrastructure or constructed infrastructure at the Hilltop area, the city is currently inspecting those improvements and will be issuing a notice of completion at some point and accepting those streets. At Candlestick, as Five Point is working towards finalizing and advancing their infrastructure designs for the next phase, the city has a role in reviewing those plans and getting them across the finish line and issuing permits. All of this is represented in the Interagency Cooperative Agreement, which is in both the Phase 1 and Phase 2 DDA, which obligates that the Department of Public Works play a hand in reviewing infrastructure designs and inspecting constructed infrastructure, and that the developer would reimburse the city for staff time and any costs related to that review. Also included in the plan and permit review is OCII staff time. Also our outside consultants, such as Hollins Consulting, which provides advice around infrastructure coordination and technical advice around engineering issues. And then our outside counsel, which supports with land right issues as it relates to the different government agencies who have jurisdiction and ownership within the Candlestick and Hunters Point Shipyard project areas. $1.2 million has been reserved for community benefits. This is specifically the community benefits fund that both the phase one and phase two developers pay into. This funds programs such as neighborhood building, scholarship programs, college readiness, and career building programs. Oversight is provided by the Legacy Foundation. And we're currently working with the Legacy Foundation to, one, identify partners to administer these programs, specifically neighborhood building, college and career readiness, And then also identifying specific programs, specifically around college readiness and career building, just given the changing landscape of our job market and being able to proactively adapt youth and young adults in Bayview-Hunters Point to a changing economy. Another area, of course, is developer reimbursement for their infrastructure costs. So that includes costs made by FivePoint in the candlestick area, as well as, as we discussed in the CFD presentation, there's reimbursement for the Hunter's Point Phase 1 developer. And then finally, about $400,000 of payments being made to the Navy, specifically for the artist studios and the San Francisco PD site at the shipyard. The primary source of funding for everything I just described is coming from both the Phase 1 and Phase 2 developer. roughly 10 of the $14 million that we plan to expend. The rest is rounded out by about $2 million in fund balance, $1.5 million in property taxes, and then finally $400,000 in lease revenue that we're collecting from city agencies. And that rounds out the $14 million. The slide up there is very candlestick heavy. It's been a huge focal point over the last several months as we work towards the next phase of construction. And as we speak, there are meetings happening between the developer and the city to finalize designs. But I also want to point out, For the Hunters Point Shipyard, the Navy is moving forward with demolishing six buildings at Parcel G. This creates an opportunity for local contractors and local workforce to plug into workforce opportunities at the shipyard. So I don't want to gloss over the work that is happening at the Navy base, even though it has been slow moving. And also, as I pointed out, for Hunters Point Shipyard Phase 1, the city and the developer are working to close out punch lists for streets and utilities that have been constructed. The photos on the screen are renderings of Candlestick. We're hoping that a huge chunk of this $14 million that we plan to expend in fiscal year 2027 turns these renderings into actual reality, and that someday we can show real photos of Candlestick and just our overall project area. And I'll pass it on to our affordable housing team.

Good afternoon, Chair, Dr. Scott, Vice Chair Miller, commissioners. My name is Elizabeth Columello, and I'm the housing program manager here at OCII. And I'm here to discuss our housing budget for fiscal year 26-27. Starting with Mission Bay South, we'll be wrapping up pre-development and starting construction on Block 4 East, Phase 1. The amount here represents both our pre-development and the remainder of our gap funding. And this project also represents the remainder of OCI's enforceable obligation to fund housing in Mission Bay South. And you can see a rendering of it down below. In Transbay, we'll be closing out the construction loans for Transbay Block 2 West, an affordable senior project that recently completed construction and is currently leasing up, and Transbay Block 2 East, an affordable family project, which is on target to be complete by next month. We'll also be getting started on pre-development for Transbay Block 4 West, a 100% affordable family project that you just heard about from Jasmine. In the shipyard in Candlestick Point, we'll be closing out our construction loans for our two affordable family developments in phase one. That's block 56 and blocks 52, 54. And we will begin pre-development on Candlestick Point block seven, which is a new block that will become available to us as part of Five Points' upcoming infrastructure phase. And we anticipate it will include approximately 100 units of affordable family housing. We will also restart pre-development on Block 11A, another affordable family project, which has been on pause as a result of the overall pause on work and CP. And for that reason, we've added about $2.5 million in additional pre-development funds there. We expect Block 10A to remain on pause during the fiscal year, as the infrastructure for that block is part of a later phase of development. The fiscal year 26-27 budget also includes the first SB 593 or replacement housing project funding request. As a reminder, the SB 593 replacement housing legislation was signed into law in 2023 by Governor Newsom, and it allows OCII to use a portion of tax increment financing to fund and develop up to 5,842 affordable units. The portion of tax increment we are allowed to use, per the legislation, with approval from the city via the annual budget process, is what remains after funding our current enforceable obligations, including infrastructure, parks, and affordable housing in Mission Bay, Transbay, and the Shipyard and Candlestick Point, and after the taxing entities, except the city, receive their distribution. Replacement housing units must be developed following affordable housing standards set forth in state law governing redevelopment agencies, which establishes the following. Those units may be built anywhere in San Francisco. They must be restricted to and affordable to households at or below the income categories of people displaced and in no event higher than 120% of area median income or AMI. and they must have long-term affordability restrictions, which, based on our current practice, will mean essentially in perpetuity what we call life of the project. And these units must be in addition to our existing obligations to build housing. In 2023 and 2024, staff with input from community groups, including our Citizens Advisory Committees in the Shipyard, Transbay, and Mission Bay, as well as our Commission, gave OCII staff feedback on what priorities the use of these funds would follow. The resulting priorities are intended to be guidelines for staff to use when evaluating potential replacement housing projects and are not requirements of SB 593. The first priority would be to add affordable units in our project areas where we have land available, such as in Mission Bay South on a portion of Block 4 East and on 12 West, a Block 12 West, and in Hunters Point Shipyard Phase 1 on the hillside. This land has capacity for additional units that could contribute to state-mandated citywide housing production goals for affordable housing. However, the Mission Bay South Owner Participation Agreement and the Hunters Point Shipyard Phase 1 Disposition and Development Agreement housing programs designate sites for the development of OCI-sponsored housing projects and establish a maximum number of affordable units that may be developed. The former agency and OCI have developed most of the affordable units on those sites, and OCI only has authorization to develop the remaining balance of 165 units in Mission Bay. and that will be on Block 4 East Phase 1 and 33 units in Hunters Point Shipyard. Other priorities include developing projects in former redevelopment project areas and in other areas of the city in collaboration with the Mayor's Office of Housing and Community Development, or MOCD. As part of our replacement housing budget, we have included the GAP funding commitment for Mission Bay South Block 4 East Phase 2 and affordable family development, which is currently in pre-development along with Phase 1, and other pre-development funds for our remaining Mission Bay South parcel, Block 12 West. As I mentioned, we will be fulfilling the Mission Bay enforceable obligation with the completion of Block 4 East Phase 1. So staff will propose that Phase 2 of 4 East and Block 12 West be funded as part of the new replacement housing obligation. The budget also includes $10 million for Freedom West. Freedom West is a multi-phased initiative to redevelop an existing affordable cooperative in the Western Edition. The first phase, a senior development, has been awarded funding from OCD. The next phase is expected to be in pre-development in the fiscal year, and this project aligns well with the objectives of the replacement housing legislation. And with that, I'm going to turn it over to Nick Jones to discuss debt.

Good afternoon, Commissioners, Chair Dr. Scott. My name is Nick Jones, OCI Debt Manager. So here we show a sources and uses table laying out the funds we expect to spend on debt-related programs in fiscal year 2026-27. We plan to spend up to $108.6 million of property taxes on debt service for our tax allocation bonds. And you can see in the next row called Other Debt, we have $6.5 million of debt service reserve funds on hand associated with our 2014A Mission Bay South bonds that will be contributed as a source towards a Mission Bay South bond refunding that we aim to undertake in fiscal year 26, 27 as well. For professional services, we estimate $10 million to be spent on cost of issuance and underwriting for new bonds to be issued in the upcoming fiscal year. And in the final row, you can see our estimate for debt service for the replacement housing bonds that Housing Director Colamello just discussed. On the next slide, we show a breakdown of the bonds we plan to issue in fiscal year 26-27. The not to exceed amounts and issuance approvals for the 2026 Transbay and 2026 Mission Bay South New Monte bonds in the table have already been received in fiscal year 25-26. So that's the two asterisks there indicating that we already have approval for issuance for those bonds. For the other two, so the 2027 housing and 2027 replacement housing bonds, we will seek authority for a not to exceed amount totaling $275 million. And you can see the estimated debt service to be paid in fiscal year 2026, 2027 for all four of the bonds we plan to issue totals $42.5 million. As I mentioned, in addition to the new money bonds discussed in the prior slide, we also anticipate refunding some existing bonds that were previously issued to fund infrastructure in Mission Bay South. Those are the 2014A, 2016B, and 2016C bonds. According to estimates produced by our financial advisor and that we showed to commission when we sought approval for the bonds, we estimate an interest rate on the refunding bonds of approximately 4.5% as compared to the current interest rate on the outstanding bonds of 5%. And being able to lower the interest rate from 5% to 4.5% will save approximately $790,000 in debt service annually for a total estimated at $14.9 million. And you can see in the table at the bottom the breakdown between the 2026C new money bonds, which will be about $40 million in bond proceeds for projects, and the 2026D refunding bonds, which are the bonds that will generate the debt service savings. So with that, I will turn the presentation over to Monica Steen to discuss operations.

Good afternoon, Chair Scott, Vice Chair Miller, Commission. I'm here to give you an update on some activities related to the operations for the agency that we're targeting for next fiscal year. Similar to the project areas, OCI has its own infrastructure work. And that's done through the information management division that includes IT, records, and the website. The two critical work our activities will be doing in the next fiscal year and onward are related to the Power BI centralized database and our website activity related to accessibility audit. So moving first to the Power BI centralized database. The big picture here is our current databases include seven mini databases that are on Microsoft Access. That is the... Correct, Dr. Miller. I read you there. Microsoft Access is a very old and legacy system that is no longer going to be served by Microsoft. So we're now moving to a new Power BI system The migration will occur over three phases. The first phase includes our resolution and bond databases. Phase two will include contract compliance, our overall contract administration and correspondence. And then finally, the third phase will include our forward calendar and record storage. The overall work is broken up into two phases. It's the development of the database and then production. So Diamond Technology has completed the development of the resolution and bond, and so we're now in the testing and quality assurance phases with our key users before we launch it agency-wide. Diamond Technology is currently developing a scope and budget for the phase two. And we are planning to present a contract amendment to this body in August of 2026 for that next phase of work. Lastly, the Power BI database creates the infrastructure that will support our record digitization project as we move forward with that. And more to come on that as we develop that scope for your consideration. Then the next big activity that we're moving forward with is with our website. What that accessibility audit means is the city department of DT has evaluated saying that our website needs to be available to all types of users, those who may have site issues, language issues, things like that. So we have worked with our contractors, lowercase, who is our website developer, and also 5Pass, who is our other partner, to do some very critical work to bring our website to that high level of accessibility standard. At the initial phase of the work, our initial score was six out of 10. But based upon the work that has been done to date, we're now at eight and a half out of 10. One key development that happened late last March, because the initial timeline to finish this audit was April 2026. The city departments, the administrator's office has postponed or extended that deadline. to fiscal year 27-28. But we're still moving forward. The next big piece of the work for our website accessibility is dealing with our PDF formats. A lot of our documents on our sites are PDFs, and part of the standard is that they are readable and accessible to a broad range of the community. So we are working with our developers to work on that, to look at some software, some other tools to make our documents accessible to a wide range of our citizenry. So that is the scope of the work that we've targeted for fiscal year 26-27. Then I will now pass this on to Grace. Thank you.

Thank you, Ms. Dean.

Continuing with our operations, our operating budget is $21.2 million, which is about 3.1% of our total budget. A little more than half of our operating budget reflects our staff costs. We have 40 full-time equivalent positions. The cost of living adjustments per the union MOAs are reflected in these costs. The cost of living adjustment includes a 2% increase in January of 2027 and a 2.5% increase in June of 2027, which is effectively a 4.5% increase by year end. We have $5.2 million in non-labor costs, which reflect work orders with city departments. software and IT costs, insurance, and other current expenses. We have $4.5 million in retiree obligations for pension and health benefits, which are determined by actuarial valuation. This table shows our year-over-year change in operating costs. We are increasing our operating costs by $1.2 million. Our year-over-year expenditure change reflects an increase in our staffing costs due to the cost of living adjustments as determined by the union MOAs, as well as rising health care and pension costs driven by actuarial liability schedule. This total increase is offset by a decrease in our non-labor costs. which are costs to run the agency outside of staffing. 2.5 million of our non-labor budget makes up work orders with city departments. Our office rent costs with the city administrator makes up the largest expenditure, followed by affordable housing services provided by Mayor's Office of Housing and Community Development. These services largely support the COP program, including work with potential COP holders who are applying for the preference, assistant with documentation, issuing certificates, and providing information on using their preference through Dahlia and existing wait lists. Our OEWD costs include utilizing the city-built division of OEWD to work with resident workers on training, referrals, placements, and with general contractors and subcontractors on worker needs, requests for workers, referrals, and day-to-day construction workforce compliance services. In closing, highlights of our budget for 26-27. The total budget for the 26-27 fiscal year is $676.4 million, which is an increase of $54.2 million from the prior year. Our labor costs are 1.7% of our total budget. We have 40 full-time equivalent positions. Our budget includes four bond issuances, and our work plan reflects 13 affordable housing projects. That concludes our budget presentation for the 26-27 fiscal year, and we're here for any questions that you may have.

Thank you, Grace and team, all of you, for this incredible report. And Madam Secretary, is there anyone that would like to speak on this?

If there are any members of the public who would like to provide public comment on item 5E, you may come up to the podium at this time.

I'm serious with y'all. I've grown sick of hearing all this money, billions this for the consultants, billions for that. But I heard one thing there. Y'all dealing with Freedom West? That's in the Western edition. So that's violation, or it's a good thing. So when I'm going to talk with public comment, I'll talk more about that. But listen, I got sick over there. I hear these millions of dollars for the consultants. set aside money that you got over there for them and the staffing and all this money, community benefits. I haven't heard that in years because they used to have community benefits in the Fillmore. And money's going to communities. Listen, we're going to talk about Newsom when we talk about it because we might have to file a lawsuit. Anyway, I'll leave that later. So right now, I'm so convinced that y'all do have money and that y'all in the Western Edition in a way, because Freedom West is in the Western Edition. But the only reason why y'all talk about Freedom West, because that's a billion dollar job. And that's just two blocks away from City Hall. But it's still in our community. So I'm glad that. And I'll mention this. Oh, my. I am so distraught. My heart's hurting. My blood pressure's up. And I don't know what to say. Y'all up there looking at, oh, we're going to okay that money there. We're going to okay that money. But what about the Western Edition? Now, we're going to have to bring it back to Newsom with the governor. But yet, we're definitely going to have to go to the mayor. Because I know he cares, even though he's a billionaire. Anyway, I'm not trying to be facetious, but I'm trying to tell you how we are in the Western Edition. Listen, I'm 72 years old. I got children, they got children, and their children got children. So I got three generations on it, and I've been coming to this redevelopment for 35 years. Y'all wasn't nowhere around. And now we're here in 2026, and you don't give a damn about us in the Western. No, let me put that back. I understand you guys can't do that unless you get some permission from the mayor. So I understand that. So that's why we're going to start lobbying and getting on the mayor. Listen, I got somebody to go have me sit down with the mayor. I'm not at liberty to tell you who will be representing me, but everybody in this county knows this person that's going to be representing us. Let's start with an A. You can guess the attorney that's been fighting discrimination for the loans. I ain't going to tell you yet. You're going to guess that. I know her quite well. I'm telling you that. I know her quite well. So anyway, I'm going to wait for a public comment. But I am distorted that all this money is being spent. No mention except for Freedom West. And y'all got to mention that because billions of dollars is involved.

Thank you, Mr. Washington. My name is Randall Evans. And I'm just listening to some of the dollars that are being spent. And I've heard about the tax increment dollars. You've got $10 million going this way. You've got the word obligations. You've got the community benefit packages. You're talking about the PACs and things of that nature. But here's the problem. You guys are talking about things that partially took place in the Western District, and then all of a sudden, you closed it down. But I want to speak for the city of San Francisco, because there's only one mayor's office, one police department, one San Francisco redevelopment agency. So basically, there's only one black community. OK? And we're spread all over the city. And I hear all these fine folks getting up, talking about things that are going to be happening in the Bayview, Hunters Point area. But I don't see none of the people talking about the actual black folks that's got to be represented. Because the only people going to take care of black people is black people. And I'm seeing right now is a repeat of what happened in the Western edition to a strong extent when you don't have us deeply involved. And right now, I'm just at the point where it is about a court injunction. It is about getting some attorneys to talk about how do we stop some projects and stuff, because it seems like that's the only thing that the city and the mayor's office understand. Don't take a rocket scientist to figure out how many people you have put out of homes and businesses and stuff, and now you're just moving on, and you're putting dollars on the side. These tax increment dollars, it was a gang of that money in the Western Edition. It just didn't evaporate. When you guys closed out that area, where is the workshop that you want to talk about and put together to make sure that all folks in the city are well taken care of? Yes, I understand that you got a little bit of dollars. There's $10 million going toward, what's that, Western District Project? Freedom West. But that's a big project. And it's got a lot of folks talking about that particular project. But where do you start the workshop to talk about us connecting not only in the Bayview 100th Point, but in the Western Edition? You can't just close that out with a big, giant, unfinished agenda. But just to keep it On points of what you guys talked about here today, Bayview Hunters Point people should be advised of this and be on point with this and be able to be speaking on some of this. I don't understand why they're not here, but we're here. And we're speaking for them and with them. And I just see a repeat. of what's happening. So I'm just hoping that there's an opportunity where we can get more than three minutes of your time. I've heard that. I'm 70 years old, and I've been up here too long, and I'm tired of you guys knocking projects down and knocking an organization like WAPAC and the project area committees and the PACs and stuff, and you don't have no input on folks that can take care of our children's children. We need to start talking about that. Thank you. Thank you, sir.

Are there any other members of the public wishing to comment on this item? Seeing none in person and also seeing none remotely, Madam Chair, we have no other members wishing to comment.

Hearing no further requests to speak on the item, I'm closing public comment, opening it to my fellow commissioners, and asking for your questions, comments, or concerns. Only one.

If I may. Commissioner Sadex. Thank you, Chair Scott. Candlestick question. I don't want to use your words, chump change. But I am curious, just looking at the, oh, I just turned the page, which means I'm going to have a hard time finding out. It looked like the budget, while I find it, for candlestick for 27 was $34 million, if I'm I can't find the page. It was $34 million. So my question is, $34 million for 2027, for construction dollars, is that pretty much going to exist just on paper, that we're not going to actually see construction in Candlestick for 2027, just based on that $37 million budget?

So clarification, the budget for the full phase one, phase two in Candlestick area is $13.8 million. And that just covers staff time. It covers infrastructure review. It's money set aside for community benefits as we work with the Legacy Foundation to identify partners and programming for that. It does not include future construction of Candlestick, OCI isn't paying for that. It's being paid for by the developer, and then eventually will be reimbursed through a tax increment generated from the property tax revenue increase.

If I could add to that, thanks, Inder. Commissioner Shaddix, what Inder is saying is correct. The construction spending that will occur through FivePoint will occur at FivePoint. It doesn't run through our agency except for infrastructure reimbursements, which eventually will occur. There's about $110 million in the first phase of infrastructure construction that is planned for maybe Q3 of this year. that is still on track permitting is nearing completion. There's a final map action that is planned for I think mid-May at the board. And then the first activity that will be seen on site is soil importation to surcharge and sort of level the area that's going to undertake the construction. So that is on track. It's not represented in this budget because it comes through another pathway.

Okay. Thank you. I found it. It was the 26, 27 budget summary. So I was looking at like Mission Bay 300 million, Trans Bay 163 million, et cetera, et cetera. And my poor little candlestick, you know, down there at 39 million. And so, okay. I think that answers it. So May we'll be looking at some news.

That is the planned schedule for the Board of Supervisors final map hearings and then later for construction for infrastructure which initially consists of surcharging and soil importation. So trucks bringing dirt in to surcharge and level the property. So final map action May, June at the Board of Supervisors and then later on site construction occurring in Q3 of this year.

OK. Thank you all for the budget presentation. That was a lot. And I know that took a lot of work. So thank you.

Can I just chime in just to clarify? So in the budget summary, that $39 million does include the affordable housing portion in the project area also. So what Inder presented on was just on the infrastructure slash non-housing portion of the budget. And that's $13 million. But then in the summary, we have an additional $20 million that is going towards an affordable housing project.

Okay, no further. Vice Chair.

Yes, great deal of work. Thank you. It's an impressive amount of work that goes into these budgets and to see all these numbers come together and all the work that's going on in the field. Nice to see the Freedom West have some funding on that project. It was great to see the Hunters Point Shipyard Campbell Point teasers. The teaser photos were good because it's been a long haul out there, and to see those renderings, that's nice to see. On the under-ramp park, would that be under Caltrans if the environmental issues surfaced on that?

Thank you, Commissioner Miller. Yeah, there's a couple of parties involved. Caltrans is one of them. The Trans Bay Joint Powers Authority is another. But the contamination that we're still looking into in partnership with the Department of Public Works, the Department of Public Works is sort of the lead. agency helping us with construction management and reimbursement of the water boards, investigatory costs. That is on Caltrans property. So once we're understanding the full scope of it, we'll know more clearly what the schedule could be and if it's still a feasible project based on the amount of contamination that's found.

No further questions, comments, or concerns, commissioners. This is a workshop item, and it does not require any action on today. Staff will be back later this month to request approval. Madam Secretary, please call the next item.

The next order of business is item six, public comment on non-agenda items. Madam Chair, we do have a couple of speaker cards for this. But at this time, we'd like to invite members of the public who wish to provide public comment on non-agenda items to call the number 2661-718-4293, followed by the pound sign, then the pound sign again to enter the call. And then press star three to be placed in the queue. If you're already listening to us by phone and would like to provide your public comment on non-agenda items, please press star three. And we'll begin by inviting members who provided speaker cards, starting with Mr. Washington.

I'll take your credit card. Okay. Mr. Public comment, the A. I'm here speaking for the public, the Western Edition. I'm going to request that you set aside an agenda item that we come, the Western Edition people, organize a group of us to come speak to this commission about the Western Edition, how we need redevelopment, OCI, back for at least two years to monitor and organize and get these developers in track. Now, you mentioned that y'all dealing with the Freedom West. That's just one of them. Yoshi's, I'm going to name them again, Buchanan Mall, Ella Hill Hutch, Plaza East, Thomas Paine, West Bay, Hayes Valley, Marcus Garvey, Freedom West, as I mentioned before. And we got the Dream Keepers thing in our Safeway. That's a big project that's going to be going on. Richard Cito, Fillmore Center, which I was there when they first got there. African-American Arts and Cultural Center, the Muni Station, Gene Settle Plaza. So there's a list of projects. And when you call us to come, we'll be able to present this. And now we're going to have to put pressure on this mayor, because I found out that he's the only one that can construct y'all to do it. It's not the governor or mayor. So we're going to have to put pressure on that mayor to make things happen, to lend y'all to come back with a special committee or whatever house you want to do it. But I can work as the... Conduit. You know what a conduit is? Put everything together. And I'm asking for the permission to put a small committee, and we're going to come before y'all on the agenda item and speak on the Western Edition. Now, that would be a wonderful gesture for this commission to consider. And we will put it together and come before y'all, and you'll see the Western Edition for the first time in a long time. And we will be pleading to ask y'all to ask the mayor... then have him come in and say, well, listen, okay, we're going to lend OCII to the community for about two years until we get things together. And that would be such a wonderful gesture. And so as I stand here, only 40 seconds left, I want to thank you all for listening to what we're doing and your comment because you didn't have to say nothing. But I appreciate it, and it looks good on my video. Anyway. Live and direct. And you know what? You don't have to adjust your set.

Thank you, Mr. Ace. Mr. Randall.

I just don't think we have to come up here all the time to ask about the things that should be done automatically. It's a shame that nobody's taking into consideration all the damage that was done. And even though you may say he's talking about two years, it's going to take way more than two years to get this plan going. take two years just to talk about it and put the workshop together for it. But I came up here for a whole different reason, to talk about a business I was trying to get started in the Fillmore. But I feel remiss if I don't talk about the things that need to take place in the Western Edition. And I think you guys need to take a revisit back there. Some people say we have to talk to the mayor. I think you guys need to put the word into the mayor. We'll do what we can. We're going to come up here with many more people. But I think it's high time that just don't come up here to be able to talk just for a couple of minutes about some issues that takes hours to talk about. It's impossible to speak clearly and on point about all the things that we need your help in. But I think there's some real considerate and concerned folks up here on this commission. And I appreciate all of you. But I tell you that it's a crying shame that things have just walked over and passed us. And now they're talking about the same kind of things that they talked about in the West Edition that all your staff is talking about now. And nobody's talking about the problems and the concerns that's happening to our children's children. I have a son in the penitentiary for murder. And a lot of problems that these youngsters are having out here by not being involved in a lot of these things. I've got other family members that are dead, no longer here, and they didn't even reach the age of 25. And it's a shame for folks not to be taking what we're talking about more seriously. We're not included with the Fillmore Action Plan and other things like that because we're too sincere about what we're talking about. We're not willing to compromise on some of the BS. And I think you need to take real serious consideration on what we're talking about today. Because it don't take a rocket scientist for us to get a gang of people up here and just clog up your agenda. We need some respect and some feedback that makes sense. And thank you very much for recognizing me. And God bless you all.

Bless you more, Mr. Randall.

Are there any other members of the public wishing to comment?

Yeah, my name is Ken Johnson. I'm a native San Franciscan. And I've been asking, mainly begging the city to fix the signs on the Fillmore Heritage Center. If any of y'all have went by there, you see our black famous singers and artists. The pictures have fallen down. Now, it's been like that for more than a year. And I took pictures and I made copies and gave them to all the supervisors and asked them to fix it before the Super Bowl. That was Super Bowl 50 last year. So when people come in from out of town, they see the film, I didn't want them to see the pictures hanging all off the wall. If you go by there, you can see it. It's still like that. Then recently, I produced a TV show at the African American Art and Culture Center every week, a couple of programs that come on local access. I was in the African American Art and Culture Complex and the elevator wasn't working. So I had to go back, had to take some of my equipment upstairs. And when I came back downstairs to get to my tripod, some men were around the elevator and I asked them, were they going to fix it in the elevator? And I asked them where they was from, what they were doing. And this was a the maintenance group that fixes city buildings up. The city has a maintenance department that fixes city buildings up. And I asked them, why don't you guys fix the signs on the Fillmore Heritage Building? And they tell me ain't nobody put in no requests. So I'm trying to figure out what's going on. See, that don't make no sense. It makes the black community look bad. The picture's hanging all down. And then the building hasn't been open for, what, all these years. And we want to get in there and train our youth and maybe culinary. I could teach them TV production. teach them something so they can have activity or some kind of skill where they can try to create their own business or get a job or create their own job. It's just a shame that the building, the big old building there, it's been empty. And we've been trying to talk to the city about operating and stuff like that. But something is wrong. That building was built to revitalize the Fillmore community. And it seemed like the city's mishandling of everything is not doing what it's supposed to do. Thank you.

Thank you, Mr. Johnson.

So I just hope you guys can work with the community and come down there. Come down. Don't just be up there and just listen at it. Come down and see what we're talking about. You know? So anyway.

Thank you, Mr. Ken Johnson. Well taken. Thank you.

Moving over to our web callers, I do not see any members of the public wishing to comment further. Madam Chair.

Hearing no further requests to speak on the item, I close public comment. And Madam Secretary, please call the next item.

The next order of business is Item 7, Report of the Chair. Madam Chair.

I do have one report. Over the Holy Week and our Good Friday, the tabernacle had a huge coming together in celebration of the Holy Week, and it was a sacred time. But during this time, they talked about affordable housing and what they were doing and shared with the communities that came together. And many of them still, they do not understand or know enough about the COP. And some of them were holders. Well, many of them were. And so I had an opportunity, I was asked to share a little bit, and thank God for Pam's latest disclosure and sharing of everything about COP and making it very clear and simple. So I was able to give out information and find out, again, there are many folk that want this information needed around our COP program as well as how to move. So I'm hoping links will come and give us an update and we'll find out who we have working with us along with our OCII for the COP folks that are holding. And they need a clarity of how it works. who it serves. And that was an opportunity to just give them a snippet of that information. That's it.

The next order of business is Item 8, Report of the Executive Director, Director Kozlowski.

Thank you, Madam Secretary. I want to briefly report back to the Commission and the public on my recent trip mid-March to Washington, D.C. It's called the City Trip D.C., and it's a joint effort with civic, public, and private leaders in the city. The Mayor Lurie's office partnered with the San Francisco Chamber of Commerce to advance several of San Francisco's initiatives that require federal funding or policy support. And they include topics such as housing, infrastructure, and economic recovery, as well as others. Those three that I just mentioned are directly in line with our redevelopment mission, which is my primary focus for attending. It was to meet with the federal elected officials about the federal funding affecting the Hunter's Point Shipyard Navy remediation. As you're aware, that's being funded by the federal government through the military budget. as well as infrastructure funding for the Candlestick Point project. As Commissioner Shaddix asked about the spending that's going there, there's some federal money that is a $20 million grant that is assisting with that. And there were meetings that were held on Capitol Hill with California's elected representatives, most notably Speaker Emerita Pelosi, Senator Schiff and Senator Padilla's office. The San Francisco delegation, of which I was just one, of about 20 people, also met with the Bay Area electeds, which include Representative Gomez, Huffman, Mullen, Lofgren, and Garamendi, all those representatives we were able to meet with and talk about our topics. For the 100-point shipyard, the Navy spends about $50 to $70 million annually on their remediation. And nationally, only $30 million is allocated. So each year we have to advocate with our electeds to have more money sort of designated for Hunters Point Shipyard and other base communities throughout the country do the same. But it's through this advocacy with the federal electeds that the city stresses the importance of cleaning up the shipyard for the health of the community and for the revitalization of the neighborhood. As you know, the shipyard will have just over 3,000 homes, and it's projected to produce about 7,000-plus jobs over time. And for candlestick, as I mentioned, there's a $20 million federal grant that was given but not provided just yet. It's through the former RAISE program, now called BUILD. And it's an important component of the $100 million first phase of infrastructure I was describing earlier. So the elected group committed to trying to advocate for the funding for the shipyard and also for this $20 million grant to finally be approved and dislodged. So this trip offered us an opportunity to address all of our priorities that received federal funding to the California delegation. It was essential to us fulfilling our enforceable obligation and wind down these projects. Thank you.

Thank you, sir. Any other questions, matters, commissioners?

Madam Secretary, please. The next order of business is item nine, commissioners' questions and matters. Madam Chair?

Commissioners, do you have any questions or matters you'd like? No comments, questions, or matters?

It's not in our agenda. What can we do?

No. Yeah. Just a question and a follow-up from the follow-up first. When last meeting we talked, you and I talked about perhaps having a presentation from either the Arts Commission or whoever's in charge of the art at the shipyard and just kind of going over what the art assets are currently, and then what's in the pipeline as to opportunities for new art to be installed or considered through whomever that is. And to close, just a fast question. The comments about the Fillmore Center, doesn't somebody do maintenance on that building? Is somebody in charge of that building or leases that building? Is there somebody that we call and say, fix the lights? Is that a person?

Madam Chair, do you want me to respond right now? Yes, sir. Okay, thank you. And let me just address Commissioner Lim's question first. The gentleman who discussed Western Edition matters. As you saw in your budget packet, there's a project which we'll provide more detail later called Freedom West. The mayor's office has been working with them for a number of years on the restoration and revitalization of that neighborhood. I think it's about a four square block cooperative that exists. And the city is nearing a development agreement to sort of revitalize and do a number of things for the project. The city did a notice of funding availability, which is a procurement for affordable housing funds for a portion of the project that's out there. They were successful in that solicitation, so they applied and got approved to do, I think, a first phase. I don't remember the exact number of units, but I think it's just under 200 units as a senior part of the project, but it's an initial phase of the revitalization. And so the city has asked us to help fund some further activities on site, which is where the $10 million comes from, sort of like the pre-development that you saw for Transbay Block 4. So we have not approved anything just yet. We're still discussing a potential term sheet with them, which is why we've not brought it to you. But because of the future planning, we have to put it in our budget and share it so that later, if funds are made available, that we can then speak to you and talk about what the project is, what activities we're proposing to consider with that project. So that's Western Edition and Freedom West. And the source of funds for that are the new funding that was described by Elizabeth earlier, SB 593. Those funds are allowed to be used outside of our project areas, outside of our contractual enforceable obligations. Those limits have been in place since 2012. So this is the first time since then that we would be acting outside of the project area using this new authority. And this might be the first project that we do that with outside of the project area. SB 593 is also funding the land, excuse me, the affordable housing development at Mission Bay 4 East and Mission Bay 12 West as well. So that's sort of the portfolio, if you will, for SB 593. Switching to Commissioner Shaddock's question, I did read the minutes and spoke to Deputy Director Slutskin about the request to have more information about public art and parks and what's planned, what's happening. And we're preparing probably an informational memorandum. We can discuss it at a future meeting. As it stands right now, there are, I believe, about 10 public art pieces. They were federally funded. They're in the shipyard, Hunter's Point phase one. There's information about those art pieces and those artists on our website. There's also a plaque at each area of each art piece. Rec Park and the Arts Commission are going to be maintaining them. I think we discussed earlier in the budget presentation, the CFD presentation, that there'll be a restoration that will be undertaken in the next fiscal year to make sure that all the art pieces are Some repairs have been made over time. The swing at some point, which is one of the art pieces, had been repaired previously. But to have more of a restoration, which is done every handful of years, as well as the side office building that's out there, which has an adjacent art piece as well. We got some outreach from a local artist who received a arts commission. Thank you, former art commissioner. an art commission grant to do some temporary art. And there's been a program to install temporary art throughout the city. There's one in India Basin right now that was either just recently installed or about to be installed. And this artist is now looking for a potential for a home either in India Basin or Hunter's Point Shipyard. So we've been talking to the Citizens Advisory Committee about having a workshop for that artist to talk to the community there and help her identify a location for this temporary art. I believe it comes with funding for not only her time, but also the installation and maintenance of this temporary art structure. We've not been asked for any money. And so there's a future communication or workshop about the shipyard and public art. And then we'll give some information later about this potential Freedom West project in Western Edition. There's a third component. You asked about Fillmore Heritage Building and about maintenance related to that. For at least since 2015 and 16, the Mayor's Office of Housing and Community Development and now with the Office of Economic and Workforce Development are working together to try and get that building occupied and reused by someone. They've had multiple attempts, which none have really shaken out just yet. But any property management issues within that building, maintenance that's needed, temporary use of the building goes to the Mayor's Office of Housing and Community Development. And if anyone is interested, I can put you in contact with the folks there. But they have a lease that they maintain that building. Despite the fact that we own it, it's been transferred in terms of control per state law to the city for their future development, and that was per dissolution law.

I ask then if I go over there and take pictures of what the gentleman was just describing, not the artwork, but the posters and the signage that's hanging down, if I take pictures of that and then send it to you? Or should you connect me to someone from MOHCD to get that fixed? Because that's hard to hear. That's hard to hear that. That's a very important building. And I agree. It'd be nice to have it rolling. But at least maintaining it should be the bare minimum.

Happy to work with you, Commissioner Shaddix, on that. If you want to interface with me, at least for now, and Dr. Scott as well, I can be the conduit for now and then turn you over to the mayor's office. Absolutely.

I would like to say still, yeah, the strong heartfelt comments just really moved me because it concerns me too that we would fix the whole city for Super Bowl. But not the corridor of D5. AND THAT WAS HARD NEWS. I'D LIKE FOR THE COMMISSIONERS TO HAVE A TOUR OF THE AREAS, D5, D10, YOU KNOW, ALL TOGETHER IF WE CAN IN SOME WAY, SOME KIND OF A TOUR TO LOOK AT OUR DISTRICTS SO THAT WE'RE PERSONALLY MORE INFORMED. I WAS WONDERING HOW ACTIVE the D5 CAC committee is, if there is still one.

Madam Chair, I'm not familiar with any citizens' advisory committee for District 5. They may be citizens' advisory committees, but as you know, we're not involved in any of them, and I'm not aware of any right now. The WAPAC, I think, was formally closed out with the closeout of Western Edition, expiration of the area. In 2008, Ms. Morales referred me to.

Okay. All right. Well, thank you. Any other questions, comments, or concerns? Madam Secretary, please call the next item.

The next order of business is item 10, closed session. There are no closed session items. The next order of business is item 11, adjournment. Madam Chair.

Thank you. May I get a motion to adjourn? May I have a second?

I do second.

Thank you. Moved and seconded. Madam Secretary, we need a roll. Moved and second. Meeting is closed.

We're done. Thank you.