folsom, third street. we could potentially building a 100,000 square foot exhibit space that could connect to mosconi's out under the street. an above-ground public space, 133,000 square feet of meeting space with a mixed use development, which would be a unique public-private partnership. it would be a tremendous opportunity to expand mosconi and improve the neighborhood. it would improve the entrance to the neighborhood on third street. right now, stoney is a very unattractive entry into san francisco -- mosconi is a very unattractive entry into san francisco. the other would be the north-sow 3 configuration, which would require excavating under howard street, which would have done when we first built mosconi south. it would have only cost $3

million. connect north and south and make it one large exhibit space. that would provide the total exhibition space between 500,000 square feet and 600,000 square feet. that sounds big but that only puts us in competition with a city like san diego. you have hotels in las vegas that have 1 million square feet of exhibition space. even with both of these projects. -- even with both of these projects, we are still small. these things could not only help to continue the revitalization of neighborhoods -- and those of you who remember this neighborhood 30 years ago -- things have changed quite a bit. we believe this would bring increased vitality to the neighborhood, increased spending in the city that would help overall -- the overall economy. when we look at the political will, we look at financing

options and opportunities to take next that's. the best opportunity is mosconi east in 2008. that would be a perfect time live from what we believe meets the demand that is growing at the moment. the last thing i want to talk about his proposition j, the proposition to increase the hotel tax. it increases it two points, 14%. it just went up 13% two years ago, so we would have a 25% increase in hotel taxes in just a few years. it is important to know that the customers pay this tax. san francisco would have the highest hotel tax in the country. new york did the same thing a few years ago. new york had the highest rate in the nation and the business collapsed. hotel spending went down, they lost meetings, conventions, and

in an emergency situation, they lowered the tax. in new york budget office said that when they had a lower hotel tax, it generated more revenue because more people came into town. we have had five groups presenting $110 million in book business that said if we increase the hotel tax, we may have to reconsider. it would result in the loss of 2000 private-sector jobs, $70 million in deployment wages per year. it is bad news for san francisco. we are in a fragile economy. hurting an industry that is showing some hope, the largest private-sector employer in the city at this time, would be a poor decision. i encourage you to oppose proposition j. it also limits our opportunity for financing for expanding and mosconi. thank you.

[applause] >> thank you, joe. next on the program we have monique moyer, executive director of the port of san francisco. port properties are such a jewel-like development, many opportunities. monique and her team have found opportunities to finance projects, including a new cruise ship terminal. i am just going to let her speak because of our limited time. please welcome monique moyer. >> good morning, thank you for sticking around for chris and i who are batting cleanup today. i think all the electives are gone, so we can tell you the unvarnished truth. i have limited job security when

that happens, so i try to contain myself. i want to first pause and share my condolences and sympathy for the passing of bill coblin. it is great that we are here talking about what will happen in the next decade. i truly believe the next decade will be incredible for the southeast sector of the waterfront. i cannot but help think of bill and all of his contributions. my condolences to his friends and family. i also want to bank supervisor david chu who was here earlier. he had to leave because of the board of supervisors meeting. rebecca, who is running for district supervisor. janet riley, who is running policies. court president, rodney -- port

president, rodney fong. thank you all for coming to support the port. thank you for having us back. it is a pleasure to talk about the port's land use activity. it continues to be an exciting time at the port despite economic realities. we have a thrilling opportunity to have the america's cup in the port of san francisco, which could really give us a fast for a change in the look of our waterfront. i am sorry the mayor did not spend as much time as i thought he would because there are some fabulous slides about that and i hope the have the opportunity to see that. not understanding the current environment, the port has a continuum of projects in our portfolio, 12 of which are depicted here. as you can see, they really are in every sector of the portfolio, ranging from an

aquatics part in the east, to harris had parked in the southeast. each of these are in various stages of development and we could easily add projects to the list if we could get the america's cup. the continuant ranges from things such as the tinkling of a new idea, the jarvis and public street ground. it is a creation of the fisherman's wharf community benefit district. it is currently being funded by the city design group. the continuum also ranges from planning projects port wide and city-wide significant. as we did with the peer 70 master plan. analyzing and directing a project neighborhood impact and integration to designing and engineering a particular project locale to generate support and enthusiasm for a project.

now i am being a bit cheeky with this picture. the enthusiasm for the olympics torch run. this was taken from the port office on embarcadero street. it reminds me about the public debate that we have around here, in this case, on human rights. ultimately, the portfolio consists of projects that are in the final stages. we have been working on tools continuously to keep our portfolio growing. we were recently able to leverage our balance sheet to use revenue bond capacity. we have had tremendous support from all of you for ballot measures for bonds, streamlining, entitlements, infrastructure financing, support, etc., so we really

think we're working continuously to keep the port's portfolio ready for whatever is next. unfortunately, the cost is not declining as rapidly as we would like, but we're doing our best to help with investments. we cannot do it alone. we work with all kinds of stakeholders, constituencies, regulatory partners, developers, financiers, etcetera, and it really depends on all of the voices, not just one of the voices. success -- do you like this one? can you even see it? success is dependent on a number of factors, not just the elasticity of supply and demand, but a whole bunch of factors that are really quite relevant, in the debate time of development demand. so the reports continue to work with our partners to continue to

be ready. i approximately two weeks time, they will hear a term sheet for the proposed development, known more commonly as the eight washington site. this is a really key critical site in the development of the port's gaap and parcel, and i want to commend supervisor chiu on his willingness to consider development at this site. there is a lot of development opposition. clearly, the site could use a lot of improvement, and great things could happen, so i'm going to ask of you, when you're going to the ballot, take a look at the things the mayor asked, so please also consider supporting your partners in the development community. this is an incredible project for the city as a whole, but has a very strong vote of local opposition. primarily, i might note that from the golden gate where apartments, as you can see, they used to beat portland, that then became the produce market, and then, staff underwent tremendous

controversy before the project was actually built, so we are just recycling and recycling at the port. we also have a very important project at pier 27, which is a development business. as a public works project for a new cruise ship terminal. like any of our projects, it is most of -- multi-faceted. there is also a two-acre plaza, and a new development opportunity here, which i have circled. as you may recall, rincon park was built for the redevelopment agency's project, and then restaurants was put out for bid and ultimately developed by j and eight partners.

the mix of an incredible amenity not just for the neighborhood where district 3, but for the entire city, and we're hoping that we will be awarded general bond money in the next part bond to help get this under way? like the lincoln park area, we have a development project area that we would like to consider. this could be something similar in the retail/entertainment field. of course, most of you know about our peers 70 projects. the 69-acre partner along illinois street. the master plan balances ship repair with waterfront parks, historic renovation of particularly stunning resources. i hope all of you by now have seen them, and with new development, it offers a framework for moving forward. it is not the only recipe, so we are looking for development partners to help us move forward creatively and to achieve some

success in the very near term. step one is the development of the park seen there in the green circle, for which we have already secured general obligation bond money. step two is the issuance of a waterfront site development opportunity, a request for qualifications issue of august 30 and due november 19. it is 25 acres at the southeast corner of the pier 70 area, and it envisions 2.5 million square feet of a building and 260,000 square feet of renovate buildings. later this year, we hope to see partners for the iconic historic buildings lining 20th street. that will be a request for information. we're looking for the themes of reuse and invest ability to help us save those amazing buildings. we are also procuring numerous park projects. we have really tried to envision our investment in these parts as

a way of stimulating development, particularly in the southeast region. sorry about that. we are undertaking these during this development low because we have the bond money to be able to do it, and we think it not only better positions development on the waterfront for billy assists with the eastern neighborhood's plan. i know this is not a very readable map, but it is planning street and open space concepts for the eastern neighborhood. it illustrates the proximity of the eastern neighborhood's plan to the port portfolio as well, and the importance for that shared infrastructure to go forward. you can see by the highlighted areas this is a zoning map to the plan that significant rezoning is going to result in significant new population, and this growth requires assessment, not just in the public infrastructure of the plant, but also the public infrastructure, so we have gotten that started. thanks to all the mission bay

partners, we have a great shoreline along mission creek, a great idea of how open space could look along the edge of the southern waterfront. you can just make up the ship repair yard in the background. we are already pursuing that. this is mission creep, but it gives you an idea of what could be done. then, the port is rapidly pursuing the blue-greenway, which is san francisco's name for the bay trail, as it will exist along the eastern waterfront. in addition to the parks, we are also looking at st. beautification, very similar to what may your news and talk about depicted here. and again here at cargo way, for those of you who ever drive out,

it is a very desolate street with not a lot of visual integrity, and this could make it something that is welcoming not just to automobile traffic, but to bicyclist and pedestrians as well, and for us, it is a way of exploring a more friendly way of integrating all the different users who, along the pathways along the waterfront. we are also looking at the entrance to herons had parked. this is how it looks today. this is how it could look so that it can support this great new building, the tech center out of heron said park. it is a living classroom, and is off the grid, and i hope you have all had an opportunity to go out and visit. it is really quite spectacular. in conclusion, what i want to say to you is the key to development success, not just with the port, but with maria's project, the projects that mosconi, the projects at treasure island -- is the same

as failure in my view. it comes down to the unity of vision. people in san francisco have to care about the waterfront. we have to be united in our desire for change and improvement, but we have to see a vision and how that visual will benefit all of us. it has not turned out that just looking at life and of utilization is enough to stimulate change. so again, i want to -- i want all of you to be participants in that dialogue. you are each invested in what happens in the southeastern sector of the city. a look forward to seeing you at each and every board of supervisors' meeting with us. thank you. [applause] >> thank you. all right, now, i would like to introduce chris. when treasure island is finally

a reality, we will know that we have arrived in san francisco, and the economy will certainly be back. i'm going to let chris tell us the latest on treasure island. chris has been doing innovative urban infill development since 1985 in california, and you know him for the ferry building, the sled building. he is parrot -- presently leading the redevelopment of san mateo and treasure island, so please welcome chris. thank you for being with us. >> thank you. treasure island community development is a joint venture. our equity partner, lennar urban, and its equity partners. all of us are incredibly privilege to be partnering with the city of san francisco and

the u.s. navy to repurchase naval station treasure island. so i want to begin with why, why develop treasure island. to have that conversation, i want to start with a little context. what is before you is the set of images that show the population in the bay area over time, beginning about 160 years ago when the population was 75,000. 50 years later, it had climbed to 500,000. in 1940, when treasure island was one year old, the population had climbed to over 1.7 million people, and 50 years after that, the bay area population topped 6 million. the most recent census that was

completed shows the nine-county bay area having a population almost 6.8 million people. i want to have you pause and think about something that you all low absolutely. over that time, growth has happened outside of the urban core, remembering something else you all know, that the infrastructure that best serves our region. this shows our population. along the bottom of this chart, we showed the year by year growth. this is just a fraction of time. this shows the year by year growth of population within san francisco. up above in blue shows the same time, the year by year growth in

growth in population. this is a slightly different time scale. this is from 1970. since 1970, san francisco has been able to add approximately 170,000 jobs. during that same time in our region, outside of san francisco, we have added 2.5 million jobs. again, i said this is something you know. why do you care about it? that growth happening outside of the urban core has implications. for everyone% expansion of the metropolitan footprint, the area that our beloved bay area occupies in terms of its land footprint, we have a 1.25% increase in vehicle miles traveled. even though we might think we are filled up, when we let

growth in our region have been at its outer boundaries, those people and we'd drive farther every year, bringing us more and more traffic, and with it, a degradation in the quality of life that is central to why most of us live in the bay area. one of the members of our treasure island team introduced me to this "new yorker" cartoon, and in the showroom, the salesman says "it runs on a conventional gasoline powered engine until its senses guilt, at which point it switches over to battery power." we have been incredibly good as a region and community in adopting in little ways sustainable practices. many of us have cut down on our use of bottled water, and many

of us have our priuses, but it will not make a difference. the thing that we can do, that every one of us in this room can do, is we can participate in changing how we consume land, which is the single thing that can most impact our children's future. so why treasure island? we as a community cannot afford to leave 400 acres of fallow land adjacent to the downtown under used. that does not just apply to treasure island. it applies to places like my partners' project at the hunters point shipyard where we have large pieces of land underutilized. we need to find a way to have our development concentrated there so that it replaces development that would otherwise take place at the border of our

region. there is a reason that those sites are actually undeveloped. or undeveloped, at the present time. they have a lot of hair on them as real estate developments. when you think of developments, we have to account for sea level rise. we have to come up with a system of public transportation. all of which will cost some $1.5 billion before a single building is built, but again, why? there is 50 million square feet of office space in downtown san francisco, and treasure island will be a short seven-minute ferry ride from that space. one more question because we are in an economic downturn, and so many people say to me, how can

you ever think of the realm again? for those of us that have been developing for a long time, we know we have developed for several decades before we get our permit, so we have to take a slightly longer perspective. again, this chart shows you population growth. what i have highlighted for you is growth in california and in san francisco. it is true that our region is relatively mature, and we do not have rapid growth population to. over the last 10 years or so, our population grew at a rate of 1% a year. is forecast to grow in the next 10 years at a growth rate that sounds terribly small, but

remember the big increase in population growth we had over the last 100 years. it means that our base is quite high, so our region needs to accommodate something like 800,000 to 900,000 people over the next 10 years, so again, i asked -- why develop? because where those 900,000 new people live is relevant to all of us. we think it should be treasure island. so i'm going to now turn from the white to the what -- from teh why to the what. i know we are short on time, but i have to be here a little bit. we are clearly in political season because we have heard a lot about initiatives and elections this morning, and it reminded me something that is one of the unique features of treasure island. treasure island is the first of

san francisco's major projects in which all of the major stakeholders got together. the beginning was 6 years or so ago and said we must do it differently going forward. we have to stop these wars in which large developments are done under the radar, and it comes to the board of supervisors were there is a battle. the incomplete plan, the work in progress was blocked through many public hearings. there have been over 150 public hearings and meetings on treasure island so far brought to the board of supervisors. when incomplete, the board of supervisors could vote and endorse unanimously, as they did, the vision so that we could make sure that the idea of treasure island was one that was not a mayor's office versus the board of supervisors, but was instead a common vision from the san francisco stakeholders.

those public meetings produced a set of ambitions for the project. first and foremost, the idea was to make this one of the most sustainable developments in america. i'm going to talk about sustainability in a moment. to also create some real public benefits for san francisco. a great new parks system that could be used by citizens of san francisco and the region, increase our housing stock, and provide other community benefits. with respect to sustainability, when you're talking about an island, you have to think about things uniquely. sustainability does not just mean -- how do i use natural resources? but how do i use natural resources? how do i have a place that has an economic life? how do i create an environment that is socially fulfiling 40 people to participate through work or living there? at treasure island, one of the

challenges we have had is to find the sweet spot between how big this island needs to be so that it can provide enough support, for example, for a grocery store? for a public transportation system? and yet, not so big that it overwhelms the public transportation system. through a lot of work, a lot of public process, a lot of environmental evaluation, the program has been designed to hold up to 800,000 homes, 500 hotel rooms, retail adaptive use, 300 acres of public parks. we start with a public transportation system which will include bus service to both the city and to the east bay, a ferry service to the points shown here on the map in front of what we call building one on treasure island, and from this multi modal transit hub, it takes you