generally good steps in terms of the city. i started my year facing multimillion-dollar set deficit. i had a $58 million deficit. had very little reserves. we were able to move forward with our unions to get over all across-the-board two-tier tension return and give back &. we were able to stabilize the budget. with the redevelopment surprises and most of our vacation over christmas and new year's, worked on rebalancing the city budget again. we did it in a way that we did not just cut redevelopment, but reorganized the city. the consolidated many departments. we eliminated many levels of administration. a lot of that goes to the second most accomplishment a mayor is expected to do. i believe i have hired a strong

administrative team. the business times calls them the dream team. i think they are a dream. we are a city of dreams. our new city administrator, dance and, -- san santana. my chief of staff, and washington campbell, who used to work for jerry brown. in this city, jerry is the governor, the only jerry we talk about. and a home boy a lot of you will get to know. i want to make a couple points for this year. v/#i .wr? forward in the city. we're going to build on what is the whole of retail in oakland. i went to ics myself this year.

we are going to go with retail . we are going again in maine. what is a vector symbol bent a asian-american woman? we are the best shoppers in the economy. when i was campaigning door-to- door, i have to tell you, the women in oakland will have my head if i do not bring retail by the time i finish my first term as mayor. that is their number-one goal. we have interest in downtown retail we have not seen in decades. we plan to build on that and work on that. everyone was bragging about the new york times, so i will not do that again. we were considered the fourth best place to celebrate lunar new year, with san francisco and new york city. the cultural and the arts scene here in oakland as one of the

most diversity's in the world -- 125 languages. in my family, i always say that means 125 different kinds of restaurants to figure out. oakland is an amazing cultural scene, attracting an intelligent, young workforce. it is what makes our young people ready to deal with anywhere in the world. if you believe what many economists say, that you need to give your kids the ability in the perverse world, the global economy -- oakland is a great stage in place for that. we are expecting the food and entertainment industry to grow perhaps not just in oakland, but in our amazing neighborhoods. oakland and san francisco are both lucky to have great neighborhoods. whether it is piedmont avenue or the up-and-coming neighborhoods -- the laurel, the diamond, and

along international boulevard -- oakland is a place where there will be continued growth. our second major focus will be continuing to be a hub for new, innovative companies. oakland has been the home to companies that now seem old school. kaiser may seem old school, but remember when henry j. came here. nobody knew that his most lasting product would be a health care institution. he was a capitalist who wanted to provide a fair and efficient work force with a health care plan. that was the model for hmos. it may be the model, long term, how we deal with health care in this country. we now have a new model, the fastest-growing home solar companies in the country. it just expanded its office

space. we have pandora. if you have an apple phone, you probably have pandora on your phone. they have helped the discussion around young companies. recently, we had an open house, so to speak, for about 150 investors. we had standing room only. they are leaving, i think, the discussion, particularly for tech companies. some of the tech companies in san francisco want second campuses. we are hoping they will come across the bay. by bart, they can be there in 10 minutes. i take bart to visit the mayor in san francisco. it only takes me 10 minutes from downtown to get to market street. everything in real estate is closely linked. i am loving the fact that his

friends are growing and i still have a lot of space here. this will probably be a once-in- a-lifetime development opportunities in oakland. oakland made a clear policy to save industrial land, so we could have a mixed economy. we are paying much more attention to the port of oakland. i say the port. the commissioners of the port are here. oakland is the only port in the united states -- president obama is trying to double exports. if he doubles them here in the bay area, that is about 6000 to 7000 new jobs. the port of oakland is the only port that exports more than we import. i have been trying to talk ed and jerry brown into doing joint export offices in china. we as a state need to have probably a dozen offices in

china, and go into the interior. i think that is what we need to do in the region. we need to talk about how we are going to share resources in that way. the coliseum city also would be an amazing opportunity. those of you who are going to ask questions about sports teams -- all three could fit there. i am holding out hope may be for victory park for the a's. oakland remains the center, transportation wise. you are looking at the rail service to sacramento, the most heavily used in the state. or you are looking at the fact that -- where the heart of the bart system. with our good transit system throughout the case -- throughout the bay. with the airport expanding more and more flights internationally, oakland will continue to be a transportation

hub. we will be working hard on federal and state investment. these are the main strategic areas we will be looking at. as a mayor, the things i have been particularly trying to not be preoccupied about, to try to get more involved in was to look at our service areas. we will have an upcoming joint conference in may to look at some of these sectors, including health care and transportation, and particularly the entertainment and trade areas in may. we will basically have a conference on this. we will take people to major areas of development. i hope you will join with us in that, i think the first friday in may. oakland as a city is on the rise

in the -- in many ways. this is a city which has the highest concentration of poverty still in the bay area. that property does not just affect us and oakland. it affects the whole bay area. when you go out, you will see these little cards. i am still a school board member at heart. i am going to be asking oakland and east bay companies to join us in three initiatives. you may know that when i started as mayor i asked oakland to come forward to get 2000 mentors for our toughest kids. we are at about a thousand. a thousand to go. we are asking companies, particularly with cuts to the federal government -- my goal was at least a thousand jobs. we are halfway there. consider giving a job. think about your first job. think about young people who may not have people who have

traditional jobs in their families, what a different world that opens to them. thinking of my adopted city of new york, where my husband and i live seven years, they had a fresh air fund. there are a lot of kids in oakland who when they come up thick ask the staff, "are we still in oakland?" there are so many kids who have never been outside of their neighborhood. i am running this campaign in the 100 block area where i believe we have to change the city forever. oakland, we do not have a corporate tax. we will give discounts in our business tax and our sales tax. we have a pretty active enterprise zones. we have rearranged and reorganized all our economic development services so we can maintain them despite the loss

of redevelopment. oakland is open for business. we welcome you. our weather is better. we have great restaurants. we hope you will join us in a city we really, really love. we do not think we are second to anyone. san francisco is often known as the kansas city. -- as the can-do city. we also believe we are a can-do city. our futures are so links to each other that we will rise and fall together. thank you for coming, so many of you who did come. please join us on a first friday, and join us for some of the best art galleries and restaurants. it is basically a party downtown. if you are coming early, give my office a call. we pour a little bit of wine on the first friday and invite you to stop by the mayor's office,

if you are looking for real estate. fred can help you any time. we often will show people around on first fridays. >> thank you, mayor quan. to introduce for the q&a portion, and again, hold your please welcome dan angell, president and ceo of golden gate university, who will introduce our moderator. >> recently, i saw a sign coming down the highway, and it sent a simple message. it said paradigms' may have changed while in flight. a lot of changes going on very quickly. at golden gate university, we have been part of the greater bay area economy for 110 years. looking at the future, we have a

three-point formula to get there -- sustainability, enhancement, and trying to reach our potential. you know what? that is the same program we all have in this area, trying to make change for the better. it is our privilege to be here this morning and helped sponsor the event. i want to thank mary huff, a member of the board of trustees at the university. my job is to introduce jim gardner, the managing editor of the san francisco business times. he coordinates the print and online sides of a very active operation. he also writes most of the editorials in the business times each friday. and he has moderated this mayor's event for the past several years. please welcome jim gardner, managing editor of the san francisco business times. [applause] >> thank you.

and thank you for spending at least the first part of valentine's day with 700 of their nearest and dearest. i apologize for remaining preoccupied for just a moment here, but i would like to be able to put the -- as much as you would like to put the occupied incident beside you, and many in the bay area would like to do the same, is it fair to regard occupy as something in the rearview mirror, or are you expecting further disruption at the port and elsewhere in the city? >> i think the bay area has a group of anarchists. with the oakland occupiers, two years ago, we had the bank demonstrations in san francisco. i think it is a very similar group. you had a lot of broken windows and demonstrations. everybody was wondering if --

this was after seattle, the international monetary fund meeting. everyone wondered if they would leave there. they came over and seemed to hang out in oakland for a while. i think we have a particular political element in the bay area that other people do not have. people in oakland -- that is the difference. i do not think it is fair to call that the whole occupy movement. there is a general sense in the world and the u.s. that there should be more income equality. there is a broad group of people in oakland -- i think that was one of the hard things for me as mayor, to get the city to have consensus on it, because people were very sensitive to that. there is taxing oil companies, etc.. that is not unique to oakland. occupy in the fall began to fall away to different groupings. you had groupings that would be

doing purely electoral measures in the state. you have unions that are going to do their stuff. you a groups of people working around foreclosures in of glenfed continue to do their work. then you have a small group of about 200 people involved in violent demonstration. when we were able to arrest several hundred of them, the stats were stunning. of the 88 people arrested for violence, only 11 live in oakland. a couple of them i recognized as people who said they just moved here. it is, i think, a shrinking movement, in terms of the violence. i think the long-term issues will not go away for a long time. i am hoping, and it is one of the reasons i have been willing to debate this, for the commonwealth club in the bay area. most of the people were coming

into the demonstration, whether in support of oakland, or this recent, more violent grouping -- two-thirds are coming from outside the city. it is the blessing and curse of being so centrally located. we watched the demonstrators come off of part. many are coming from the city and the area. it is not just an oakland problem. it is in the whole bay area. >> if there is another attempt to shut down the port, will the police take additional steps to stop that from happening? is that something you will have to live with the experts >> let me be very clear. i did not appreciate theit is ca lot depends on what the longshoremen to warn do not do. -- do or do not do. we certainly have the resources,

if we want to do that. that is something the port and we are both committed to trying to keep the port open. but it is more complicated than police. it has to do with how the longshoremen feel. it has to do with what kind of resources you want to use. several of the families i have been talking to the last few months decided to divert or change the times of operation. keeping it open or not means a lot of different things. it is not a simple thing. nobody should doubt we are firmly committed to keeping the port of oakland competitive, and to do what we have to do for the protection of the port in the port companies, and the poor leadership. -- port leadership. >> to move to the 1%, in terms of yacht racing, america's cup has been a big story in san

francisco, and so far a success story. it seems negotiations and fund- raising have hit significant sticking points. what is needed to get the process back on track? what are you doing about it? >> america's cup -- we are very fortunate to have landed in the city of san francisco. that was one of the first things i talked with mayor jean quan about. we are engaged in discussions in three sides of the bay, to talk about adequate security for the people who come here. we are still very excited about it. we know the budget analyst report caused some concern. they talked about the worst-case scenario as well as the best case scenario. worst-case scenario -- the money is not raised on the private side. we have challenges with investments and the agreements

we want to have with the investors. the best side is we make $2 million after a billion dollars of economic impact for the bay area, 8000 jobs that will be created as part of this ongoing effort. i think we have the foundation for it, going forward. i think the private fund-raising is there. we have a good team of people. they are raising that money. i think the negotiations that are going on with the event authority and our board of supervisors right now to talk about the trade-offs, if you will, with these investments -- a number of our peers will have good discussions that might signal some changes, because of certain areas where the public would like to have some types of

development. that is all i think being negotiated. we trust that by the end of the month we will reach that agreement and go forward on the infrastructure work. i was very excited to help physically and knock a hole in the wall at pier 27 to get the cruise ship terminal going. the port for decades has suffered from non investment. that has allowed half of our peers, if not more, to deteriorate. we are lucky that this yacht race, one of the world's most watched sailing races, has turned a corner with us and allows for this private investment of over $100 million. we have not seen that kind of investment in several decades. i have often said this. i am no longer looking at this

division between 1% and 99%. we want people to be successful. but we also will create an atmosphere where the best success would be shared. you have a mayor and a board of supervisors working together to create new generations of philanthropic programs that we must have, working for an intense year with a billionaire, who created the right foundations, reached out to you, and connected the gaps in education. that is what i want to do more and more with people like mark benny off -- benihoff, and zynga and twitter. we will have a cadre of billionaires' at the same time they are to san franciscans. they will demonstrate how they want to work in the city and how we can create jobs. >> it was said no public money

would be spent on stage in the america's cup. is that a promise you can still make? >> i am confident we will be dependent on private investments to make sure america's cup is successful. the $32 million, $12 million of which has already been raised, will be succeeded in our fund raising. >> oakland has had a bit of a hot streak the last few years in attracting tech companies -- pandora, and rumors of a couple more. there is indication that rent is about to go off the charts, or at least up the escalator, in san francisco. that has historically been very good for oakland. are you expecting that to happen again? are you encouraging those

companies to come to oakland? >> i try not to get in trouble by venturing over there too much. we're trying to respond and take people out. in may, we will be doing very broad outreach to investors. if you take the lower rent, the fact that we do not have a business tax, a payroll tax, the discount we give new companies moving to oakland, and if they use enterprise zones -- that would save us $35 million over five years. obviously, san francisco -- a lot of their companies are growing. they grow naturally. we have a similar climate. which is finished hour by plane. we are right next to berkeley. the art and restaurants in is attracting a young, well- educated work force in oakland.

i think we are pretty attractive. i know that a lot of people are trying to lock in their leases around broadway. i think things can start to happen around the airport. there are 2000 committed units already on the books. "we see is already action toward people changing those permits so that are of little more diverse than mixed development. i am pretty optimistic that within the next year or two you are going to see that, plus the opportunity for some major new projects. we see policy in the city as being a lot like the staples center in los angeles. it is where the airport connector meets the coliseum. we think the combination of sports franchises, hotels, other entertainment units, and this area of retail is going to be an

amazing project. we are about to name the company that will be leaving that in the next couple of weeks. particularly for hotels. >> the flip side is with all the tech built in san francisco -- if those companies are going to continue to grow and more are going to join them, new development is going to be the answer to that. getting anything out of the ground in san francisco can be a bit of a trial. how could you clear away some of the obstacles of this sort of development can happen quickly? >> it is a good challenge to have. i bring back my days of the department of public works, where we did sit -- did do some very efficient processes. i am meeting with development

groups on a regular basis, with technology groups to get their input. we have good synergy going on where all the different departments are in gage, whether it is building inspection, planning department, public works, a different agencies as we go to the port. we have good leadership at the port. others are focused on being on the same page with me about job development and creating an environment in which projects can go faster. once projects are out of planning, which is a challenge of itself, i want an execution team led by my office to make sure there is no delay in permiting and the coordination it takes, whether it is with pg&e, at&t, and the others. we all want, once that permit is improved -- is approved, to have those jobs come quickly. we want an efficient team. we have created that with all

the different agencies collaborating. we have different point people already engaged in all the major projects in the city. we of project managers that cover hunters point, alice griffin, and the commitments we have with federal money, treasure island, and mission bay. the critical years when messrs. brown and newsom created mission bay, we used our re-development tools in such a way that it is attractive right now. when we have great entities like the giants, who now have development rights on their parking lot, we have a very strong biotech industry. heat is -- there is a major investment team with innovation hubs or write in mission bay.

>> what are you going to do differently? >> we have to replicate the tools we used best. i know that is what mayor quan and i are going to. i created an oversight committee. they were all technical people that had been very much involved in the redevelopment processes we had before. i wish fred would have stayed with us. but the mayor did come in and rob one of our best talents. i think fred has been wonderful to us. he left us with a very good team, good vision, and good discipline. we are transitioning as we speak. now that we have established, with the unanimous oversight committee -- we are creating a delivery team. we have divided responsibilities between our city adminis