. >> okay, thank you, mr. rose. mr. updike, is your department okay with these proposed recommendations? >> yes, we are. >> okay. if no other questions at this time, we'll open this up to public comment. if anybody wishes to comment on item number 26? seeing none, public comment is closed. [gavel] >> supervisor mar, we have our budget analyst recommendation. he >> so move the recommendations by the budget analyst. >> take the underlying objection. ~ gov. >> thank you very much. madam clerk, can you call our 10:30 special meeting? >> item number 1, resolution did he nating central city extra to be the neighborhood outreach newspaper of the city and county for the central city neighborhood; northside publications/marina times to be the neighborhood outreach knew paper of the city and county for the northern san francisco neighborhood; west portal monthly to be the neighborhood outreach newspaper of the city and county for the west portal neighborhood; and potrero view to be the neighborhood outreach knew paper of the city

and mr. updike's department. and have come up with a ken except tail plan that has been reviewed with city planning. the site divides the [speaker not understood] in half. the northern and eastern portion of the site basically would become a build to suit for the city of approximately 4 62,000 square feet. i'm going to walk you through the initial massing concept for that in a second ~. importantly, this portion of the site is contiguous to a building that the city already owns. it runs south van ness. so it really is literally and figuratively a consolidation of the city departments. one of the objective of the master plan we've been working on is to give the city a presence on van ness, and also to accommodate a programmatic requirement, very large well played -- something very hard to do. ~ anywhere in the city, but particularly this part of the town. and at the same time, create a project that would be a good partner or good neighbor to the 565 units of residential that we are building on the south and wester

mr. updike, you're getting quite a workout here. >> thank you, chair farrell. john updike, director real estate still. this item is 258a laguna honda boulevard, [speaker not understood]. under prior ownership, ownership [speaker not understood] simply self-renewing leases. i have the ability to execute those within certain parameters and so within the administrative code we have taken care of that until now when we have a new owner who desired a longer term agreement, we thought that was also beneficial to the city. and, so, we have now before you this five-year lease with a renewal option for another five years and as a result of negotiations we're actually decreasing the rent of office space, which i find startling. and i'm very pleased to bring you a deal that has the rent rising from $3500 a month to about $39 50 a month in year five ~. that's 23 28 square foot a year ~ and i mentioned what the rates are currently so you know where we stand from a market perspective. the increaseses are set at 3% per year, so, this gives some fiscal stability to the public

. >> okay, welcome back, mr. updike. >> thank you, chair farrell. [speaker not understood], good morning. so, this item is a master lease of 144 eddy street known as the empress hotel to empress, llc. it is a ten-year lease for the direct access to housing program. this facility has 90 residential units on five floors. ground floor includes a significant common area with a kitchen, laundry room and lobby. tide center, delivery innovation [speaker not understood] as we affectionately call it dish man gentlemen the day-to-day operation of the facility. they were selected through a competitive rfp process and will be providing property management services through a board approval that was he secured last year through 2018. the current rent in terms of the transaction is -- was 56,5 79.13 per month. through this renewal the new rent will be 60,6 87.03 per month. that is $674,30 per housing unit per month. we feel that is a very competitive rate. we're pleased with that ~ fairly limited increase. in future years the rent can increase back of it by minimu

. >> thank you, mr. updike. supervisor mar? >> yeah, i wanted to just comment to mr. updike, i'm realizing also in reading the budget analyst report, reviewing it more closely, that it not only department of public works building inspection and planning, but it looks like it's also the retirement department and health service systems that would be consolidated into more centralized location. and given how much the rents have been increasing commercial property i'm seeing the tremendous benefit to the city for those. i did want to ask, the head of mayor's office and housing is here. i know the 550 units proposed and 110 below market rate is cited a a goal. and i know that we're looking at middle income residence as well. but i'm wondering if you can comment on the tremendous need for below market rate units and what you're doing to ensure that we're going to have enough to that, for example, workers from good will would be able to afford to live in the building they used to work in. >> supervisors, olson lee, director of mayor's office of housing. as director updike me

updike. okay, no questions for mr. rose, we'll move to your report on item 15. >> yes, mr. chairman, supervisor mar. on page 58 we know the total rent over the ten-year lease term is 35,256,045. that's shown on table 2 of page 59 of our report. we also report, supervisors, on page 60 that in the first three years of the lease the sfusd and hsa will also spend up to $6 million on capital improvements. sfusd will contribute up to 3.5 million and hsa will contribute up to 2.5 million and that's described on page 60 of our report. we recommend that you approve this resolution. >> okay, thank you, mr. rose. no other question, we'll open this up to public comment. anybody wish to comment on item 15? seeing none, public comment is closed. [gavel] >> supervisor mar? >> yeah, i just wanted to thank mr. grasielli, the chief operating officer for the school district. i know the ten years i was on the school board, the cleaning up of the fiscal health of the school district really it's like night and day compared to 10, 15 years ago in the school district. but i think this is a great w