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>> good morning, everybody. want to welcome everybody to this early meeting. it is great to see such a full house. obviously, we had different people interested in learning more about this. i have a huge stack of cards, and we are going to go ahead and get started. >> roll call -- commissioner fong. commissioner brandon. commissioner lazarus. item two, approval of minutes for the previous meeting. commissioner fong: any discussion? all those in favor? >> announcement of prohibition of sound-producing devices during the meeting. please be advised that the ringing of and use of cell phones, pagers, and similar sound producing electronic devices are prohibited at this meeting. please be advised that the chair may order the removal from the

meeting room of any person responsible for the rigging or use of a cell phone, pager, or similar sound-producing electronic device. please be advised that a member of the public has up to three minutes to make pertinent public comments on each agenda item, and the board commission may adopt a shorter time on any item. the executive director's report. >> i would like to move the public, the limited to two minutes. >> any discussion on that given the size of the room and how many people want to speak? all those in favor? any opposed? ok. >> good morning, commissioners. welcome. thank you for making time for us for a special meeting, and good morning to port staff. there is a good turnout of staff and tenants and members of the public. it is heartwarming to see all of you here. we have extra overflow chairs outside. this back i'll have to be

cleared for the fire marshals, so i hope you will honor that. do not worry, when it is your turn to speak, there is time to speak. you can easily come to the podium, and we will make sure you can be heard. thank you for the fantastic turnout. sorry for the inconvenience. if i can ask the back row to set out side, that would be fantastic. i have a couple of non-agenda items to discuss which are equally meritorious and important to us, and the first is to congratulate the san francisco giants on their world series win. [applause] many of you have heard me say this before, but it bears repeating -- we have the most amazing october here at the port of san francisco. we started off with an incredible fleet week, and then we moved into our shoreside power inauguration, and then

into the exploratory mortar breaking ceremony and suddenly, the giants were in the championship series and then in the world series, and it was a terrific month for us. i know all of the poor tenants share the enthusiasm, and we thank them for their incredible sportsmanship and they're good neighbor status. they did a tremendous job making sure that all the people that came to the waterfront either for the games or for the parade were able to do so quietly and friendly and happily to spend gobs of money here at the port and throughout the city, so we are really grateful for that. statistics are that there were 86,000 people at at&t part on wednesday october 7 and thursday october 8, and estimates are that there were over 1 million here for the parade, so it was just a phenomenal time for the port but also for the city, and we congratulate all of them and look forward to a repeat next

year. next is our annual crab season has opened. it opened monday november 15. the last three years have not been particularly good for our crab fisherman or any of the port fishermen. this year looks to be much more promising. there has been numerous articles in the press talking about the great crab season, and i hope everyone in this room has had a chance to sample that a great delicacy at the port of san francisco, so we are hopeful this will be a much better season for our fishermen. to that end, there was a fantastic article which i hope you saw in "the san francisco chronicle," featuring one of our tenants at san francisco's first family of crab. it is really worth reading, and i congratulate them on their longevity and a great work they are doing. next is that the pier 70

responses have been extended from being due november 18, 2010 at 3:50 p.m. to now being due on december 13 at 12:00 noon, so we should have a little bit of a report for you at your next regularly scheduled commission meeting. i will not say too much more in the interest of time. finally, i would like to note that on sunday, there was another fantastic story about one of our tenants, and i saw captain horton in a room somewhere, so that was a terrific story, and again, if you have not seen it, i urge everyone to look at it, and congratulations to our partners on a terrific and dangerous work that they do. with that, that concludes my report. >> thank you. any public comment on the executive director's report? ok, thank you. next item, please. >> a resolution approving the

host city and the new agreement along the america's cup authority for the 34th america's cup, authorizing and urging the mayor and the port to execute the host city and a new agreement and authorizing the executive director of the report and such other city officials as appropriate to take such steps and execute such additional agreements as are consistent with the host city and the new agreement to bring the 34th america's cup to the san francisco bay. >> good morning, port commission, executive director, members of the public. my name is jonathan stern, and i'm with the port planning and development commission, and we are here with a cast of thousands to present our current host city agreement, its current status, and some analysis of how it will affect the city and port. this is a project that the city

has been working on since earlier in 2010. i believe the cup was one in february, and the city has been hard at work. before i launch into the port's involvement and our analysis, i wanted to yield the floor to terry mcclellan of the mayor's office, who has been spearheading the city's team since the moment the yocks crossed the finish line. with that, i'm going to make way for the top-level overview, and i think we will also hear from the america's cup organizing team as well. >> good morning. thank you. we are here today because the port has been at the forefront of this opportunity, from the resolution that this commission passed back in the spring to the works that the staff has done as part of our negotiating team.

we would not be here today obviously, if it was not for the work of the port and the city family. so i want to thank you for that. we are here with an opportunity for a twin transformation, not only for trent -- san francisco and the waterfront an opportunity to bring investment and transformation. it is also an opportunity for the america's cup race in what is the natural marine amphitheater of our day and showcase the san francisco theater to the world. what comes with that is an opportunity not only for economic investment and benefit to the city to the tune of approximately $1.4 billion as well as up to 9000 jobs, which comes from the bay area council economic impact report, but also recently harvey analyst rosy economic report. the host city agreement has

three principles. we needed world-class facilities in a world-class city for this international event. we needed to secure state and federal for the port for the on the water activities as well as the air activities, and we needed to bring corporate sponsorship to this event because it was obviously untenable to have the city's general fund facing the deficit that we are there these burdens. we have endeavored with the board of supervisors endorsement of the term sheet for a vote back in october to move forward on those principles, and as we have been in negotiations with the team, which are ongoing, i should add, and i think you will hear more from your team today, how we very much remain in conversations with them and are trying to improve upon that which is before you today, we have created the america's cup organizing committee and an honorary committee that includes the mothers and fathers of san francisco who stand behind a

commitment to raise the money necessary to make sure that the city's costs associated with hosting the event, police, fire, certainly some of the port costs as well, will be covered through their efforts, and that we have members of our elected family at the federal level, the state level, and locally that stand behind the city's bid and will insure that when we need to work with coast guard, need to work with homeland security, we have the relationships or can add to those to make sure that we are able to fulfil our commitments to bring this opportunity here. we have sought to engage the community throughout this process to the extent possible. we have met with bcdc, mtc, the maritime academy, our pilots, a host of organizations that have come forward and endorsed bringing the america's cup to san francisco, and we are very much in the bid process right

now. we are putting forward an opportunity to the team that we think is our best offer and that if we are ultimately selected, we have a lot of work that still remains ahead of us, and those future agreements would obviously come back to the port commission and the board of supervisors for additional approval. i personally have been out and tried to meet and sit down with south beach harbor, the rincon hill south beach harbor cac. we're going to the northern and eastern waterfront advisory committee tomorrow night, and many folks have raised good questions, expressed concerns, but i have also heard a lot of support along the way, and i'm optimistic that you will hear quite a bit of support as well. i want to acknowledge that there is an issue that remains to be resolved. there are several that in particular because we are here and a number of folks have come out today, section one point to

d is language that states -- 1.2d is language that states that we can ensure that foreign flag raising knots and spectator boats can go out and be part of the race itself. our intention is to make sure these yachts that are the 72- foot catamaran that will be racing around the bay that will be built all over the world and come here to showcase the world do not have restrictions to be out on the bay racing. additionally, the large spectator vessels, that their owners can go out because it is part of the vision of the team to have those super yachts lining the bay. part of the majestic nature of the event. we really want the support of the local maritime community and think this opportunity generally is going to be great for our tour operators, for the cargo

entities, and all the businesses up and down the waterfront that will benefit from hundreds of thousands of people that would come here to benefit and participate in this event, so with that, i would like to introduce mark buell, who has graciously accepted the position of chairman of our america's cup committee, and i will be here with my colleagues to answer any questions you may have. >> thanks. i will be brief. kerry covered a little bit of it, but i have the pleasure of chairing the america's cup organizing committee. we have been meeting for the last two months on a regular basis, and in my capacity as chair, i have also been in the negotiations that have been going on. i want to compliment staff, the attorneys of the port, and the attorneys of the staff. i honestly believe that first

and foremost, this is an event we cannot afford to miss, so we are going to split every effort forward to get it here. in that context, we all know the limitations on dollars, federally, state, and local, so we have to find a way to make this revenue neutral or make sure it pays for itself. in that regard, i characterize it as a three-legged stool. we have those efforts to create the facilities themselves, and that is the work you are doing, and that is still on going to arrive at the right mix and match of peers, structures, improvements, etc. the second leg is what is called the america's cup event authority, and that is an entity that has to raise the sponsorship to put on the venues all over the world, including 2012 and 2013 in san francisco.

it is an ambitious program by the event authority, and they want to raise $270 million. it has been my opinion from the beginning that that is possible if it is an economic equation where sponsors can see the value of supporting it and that they get an economic return on their sponsorship. we have committed, as the organizing committee, to work with them and introduce them to a number of corporations that are headquartered here, and to that end, we have probably had 20 meetings already, and we have not been selected yet, but we have been working like we have been selected to try to indicate to them that we can open those doors and make those introductions. the burden rests with them to make that argument that a visa or bank of america or whoever this are going to get their money's worth. the third leg of the stool is the america's cup organizing committee, and it has been formed with some very high-

powered names. we have the governor and our state senators and the speaker of the house and the mayor, etc., but we also have some very powerful san franciscans that have been meeting on a regular basis to talk about how we raise roughly $32 million to cover what we project to be at this early stage the city's costs associated with police, transportation, getting the necessary permits, dealing with the necessary organization, and as i say, we are operating under the assumption that we will get selected because we have been holding those meetings and talking to people. we filed for non-profits that is, and we have already had some early commitments of the nation's -- we filed for non- profit status. i have probably spent more that i had taken in, but what i want you to know is that it is with enormous enthusiasm, and as recently as monday, we had a meeting of the acoc, and i do

not want to embarrass them, but people like tom perkins, the queen of america's cup racing, resident of san francisco was there. walter and alan newman. pat gallagher, who was president of the convention. alex marron, representing the bay area council and introducing the team to various people there. i'm going to close by saying that we're working very hard at this. none of us are on salary. this is pure love of the event and spirit of san francisco, and i just want to give everybody that sense that this is an enormous undertaking with the right skill set to do it. thank you very much. commissioner fong: thank you. [applause] thank you for giving us the overview and history to date. the task at hand in front of the

port commission is essentially to take the host city and a new agreement that the three parties, the city and port, entity have negotiated the ground rules for how san francisco will bit and hopefully succeed in attracting the america's cup. the ground rules that have been proposed to date, really to solidify some things to put together a bid that will -- that we can be proud of in the city. with that, i'm going to dive into the host city agreement and talk about the venues and land uses as well as the financial implications for the port as well as the financial implications of both the poor tenants and the city overall, so that is what i'm going to try to accomplish today. first, i want to point you in the direction of the drawing over here, which shows the plan that was originally attached to the host city agreement. this is