requires an assessment of direct and indirect financial benefits. the construction costs, available funding for the project, long term operating and maintenance costs, and impact of the project on debt load. the results of the project are shown here -- direct and indirect financial benefits, as already discussed. that was the net cost to the city relative to the estimated new tax revenues. city construction costs of about $47.4 million, again, largely the port for the original plan. available funding has not been identified. the port had indicated that they could issue debt for about $25 million to cover their costs through certificates of participation. that is the maximum they would be eligible for, so we identified that. the assumption for the rest is a transfer from the general fund,

as is allowed by the administrative code. long-term operating and maintenance costs -- we identified none because largely, the properties are transferred, the new landlords would bear responsibility for it. not the landlords, lieutenants, excuse me. finally, on the debt load again, the potential $25 million certificates of for dissipation issuance would increase the city's debt by $25 million. we did get last week the proposed northern waterfront alternative agreement. of course, that was not including the amendments that came forward today. this was as advanced by the port commission at their november 30 hearing. there are differences in what events and what facilities will be used. you have heard much of this already this morning. moving it to the northern waterfront.

the properties that are proposed do not require as much repair and improvements to be used. the race timing would be approximately the same. some of the same facilities would be used as in the central waterfront plan, but to a lesser extent and therefore require less in the way of infrastructure improvement. some of the obligations, and as we showed for the original proposal, some of the obligations for both the city and event authority are listed here. what changed -- the big significant change is the movement of the dredging costs, which are estimated at $16 million from the original proposal are shifted to the event authority, and that is in both the agreement that -- the no. waterfront alternative agreement as proposed by the commission, as well as the document you receive this morning.

this is a comparison, then, as best we could do last week with the two agreements that we had before us. the $57.8 million is the net cost from the original host city and the new agreement that we estimated for the no. waterfront, and this is assuming that the event authority assumes the dredging costs, which is being proposed. i think it has been stated already today that this has not been endorsed by the event authority at this point, but it is in the draft agreement and is recommended by the port commission. if that occurs, the net cost would drop to $11.6 million. if it does not occur and the dredging still is a city cost -- by the way, it would be higher at the northern waterfront alternative then it would be with the original plan -- then the city's net cost would be

$47.6 million, assuming that the city incurs all the costs at the high end of the range of estimates from the port. for the long term development rights, the change. in the northern waterfront alternative agreement, there are ~ will properties instead of three that would be transferred. pier 50 was excluded. there are lease payments required now which were not required in the original. the lease payments, however, would be offset to some extent by the repayment -- the credit to the event authority for the $55 million that they are required to spend on infrastructure improvements. the incremental property-tax could also be used under the terms of the property agreement for repayment of the $55 million, said that would also have some impact on the city, but we do not have the

comparison of this alternative versus not transferring the properties to the event authority as there were some details that still are not available or at least had not been worked out by the time we produce our report about these amounts and how that would be structured, so we can include the lease revenue that will be coming back to the report. that is the summary of our report. i can answer any questions. supervisor mirkarimi: i think we will reserve our questions. thank you very much. we understand there may not be too much to weigh in right now from your perspective. is there anything you would like to speak too quickly? >> yes, thank you. we did do a report, which we issued this morning, that attempted to measure the fiscal impact of the original host city agreement, and the version of the northern waterfront alternative that was approved by

the port commission last week. that is not the version that is before you, and our conclusions that we drew in that report were on the basis of modeling two proposed agreements that are really no longer in place. the consequence -- with your forbearance, what i would prefer to do is take a few days, see how the new agreement affects our model, and issue a report at that time. i would be happy to answer questions then. supervisor mirkarimi: we are discussing whether we hold a special on monday or somehow facilitate additional information for our board meeting on tuesday, so we will hopefully know that before the end of this committee hearing. and on controller, same thing? anybody would like to speak? no? ok. >> leo robinson, budget and analysis division. i deferred to ted begin on this in terms of waiting for his

updated report. supervisor mirkarimi: very good. think the moment most everybody here is waiting for is on public comment, so i'm going to read the comments as they were handed to us and corrected. [reading names] just come up one after the other. do not hesitate, and i recommend may be standing in the aisles so that we are able to expedite this. >> good afternoon.

supervisor mirkarimi: if you could start the time now. >> yes, i was born and raised in san francisco. i'm a member of the golden gate yacht club and the st. francis yacht club and the st. francis -- san francisco yacht club. i have been part of five america's cups, and in the mid- 1980's, i was the general manager of the first challenge for the america's cup. this is a very historic and exciting opportunity. set aside what you know about the grand 159-year history of the america's cup because its san francisco gets to host the america's cup, in our city, we can transfer the america's cup on the most exciting, popular, financially viable america's cup ever. there are three reasons why this is the case -- our natural a minute, our reliable wins, and a spectator-friendly, spectator- oriented race course -- our

natural arena, our reliable winds. this is a great contrast to the offshore races, which have been characteristic of the america's cup until now. the races are all 20 miles offshore. a spectator could ever see them. secondly, reliable wins. in newport, about 40% of all the races were canceled. in valencia, half of all the races were canceled. by contrast, the reliable wins in san francisco, averaging 20 knots on a summer day, permitted a schedule of summer race days. reliable race days would present a media coverage, generate bigger audiences, improve sponsorship a dissipation and potentially enable more teams to compete for the america's cup here. lastly, our spectator from the

course. by creating a spectator- oriented course along the northern waterfront and essentially keeping boats so they could not go below san francisco, we could have a media-friendly event, which would make this the biggest in the america's cup history right here in beautiful san francisco bay. supervisor avalos: thank you very much. next speaker please. >> i'm with latitude 38 sailing magazine and have been sailing on the bay and enthusiastic supporter of of course having the cup here. i just want to make note -- it has been noted several times, we know the greatness of having a championship team in town. sanford's is good giants just prove what value having a championship team can be, and we now have a championship sailing team in town, and i would like to know what it would be like if we had delayed any thought of

not hosting the world series here or what if we had not be it -- built that beautiful ballpark. these facilities become great assets for well into the future and you do not know when they are going to come into use. the giants just prove that. also, we had just a few days to plan to host the world series. we have two three years to plan to host the america's cup, and that leaves a great time to create the economic benefit. lat 38 works with a few hundred small businesses, of which we are one. we all know the economy is tough. it has been tough for all of us. this could provide a huge shot in the arm for our businesses and many businesses be on the waterfront, and we all look forward to the approval of this process. also, i would like to note with the three years coming to plan the cup, that there is numerous people that come from around the world there already has a place to start business. the san francisco bay area is a huge creator of new businesses,

and all they need is a green light. there are loads of on the burners, and people that we hope when $1.4 billion is on the charts as a projected income, that we can blow by that number. i think the san francisco area knows how to create businesses, and i think the city and supervisors have done a great job, and the mayor's office has done a great job putting this together. we look forward as businesspeople in the bay area to take full advantage of the opportunity, you very much, and i look forward to watching the america's cup. supervisor mirkarimi: after this next speaker, please line up. [reading names] >> good afternoon, supervisors. i'm addressing you as a representative of the st. francis yacht club, long time sailor, and marinas look older, married a homeowner, and san francisco concerned citizen. today's discussion concerning

the financial aspect of the proposed america's cup, and that is the focus of the finance committee. clearly, you are aware of the e enormous potential of this event. the international exposure, the opportunity to fix the waterfront, the multiplier effect of the event itself can only be benefits for the city financially in terms of prestige and stature. this could be a huge windfall if we approach the hosting and selection process the right way. consider the many well-financed and capable developers whose previous attempts to fix these peers have gone awry. all have gone away. either there are use issues, construction costs, surprises, permit debates or some other defeating issue. please do not let the phantom prospect of some of the developer who might offer a better deal for the city become the issue at this stage. there is no such developer, and

it is conceivable that a more fitting use will ever come to the city put the table again, especially if we can get unified behind this unique and once-in- a-lifetime bid. this is not a question of leverage or appropriateness. every element of the highest and best use of the san francisco waterfront is contained in the america's cup requirement. this is a multi-year sporting extravaganza with an ongoing payout. the benefits will be felt for a long time. this is our big opportunity to get our valuable waterfront finally in shape. i urge you to approve the effort to have san francisco selected as the next america's cup location and please, do not let this opportunity slip away. thank you. supervisor mirkarimi: thank you. next speaker please. >> good afternoon, everyone. when i put willie brown in

office, the second thing i propose to him was fixed the port. this is so important. the ne waterfront happens to be in my neighborhood. the city is broke. that is the reality. we therefore need the america's cup huge cash benefits like we need a blood transfusion. the court does not have the money to repair the deteriorated peers, unfortunately, because it was long neglected. the history is peir -- pier 27, a previous developer failed because it was a bad proposal. they dropped out at pier 30 and 32 because the expenses were insurmountable. we have a huge opportunity now that will bring jobs, benefits to hotels, restaurants, retail, etc. we cannot and must not miss this

once in a lifetime opportunity to complete the job of resurrecting those san francisco valuable waterfront. i have never backed a bad proposal. this is one of the best. just do it. imagine the giants world series and the america's cup in one decade. it does not get better, so please do it immediately. thank you. [applause] supervisor mirkarimi: walt, your card is not here. you have a little ways to go. please have a seat. we appreciate the enthusiasm, but it would be better to not do it so we can expedite this process. >> good afternoon. in the program director for the treasure island sailing center. i came on behalf of my organization to represent them

and say that we fully support bringing america's cup to san francisco. i understand that this meeting is mostly about the fiscal numbers and whether or not it makes financial sense for the city of san francisco, and i think that is very important to think about, obviously, but i also want to speak about the other things it would bring to our city. we believe an event like this could do a lot to the sport of sailing and also to increase events in communities that do not normally have that opportunity. our mission that treasure island sailing center is to try to introduce these four to people that normally would not have the opportunity -- introduced the sport to people that normally would not have the opportunity. we tried to introduce sailing to the communities, to students, so they have the opportunity to experience something that in my life has been very positive.

sailing to some is a passion. for others, including myself, it is my job. luckily, i get to combine both of those, and i think that bringing this event with the role models and the exposure that it is going to bring can only increase exposure to these four but also benefit the youth of san francisco, which need opportunities, positive ones, to go outside, did physical activity, and better their lives. at treasure island, we have eight junior instructor program where we try to get members of these communities that we serve and bring them up to our ranks, teach them how the sale and eventually teach them as teachers. hopefully some day they will become teachers themselves and use it as an opportunity to provide structure for the use for the future. thank you. >> before we begin, but i have the -- thank you -- computer,

please. i took the liberty of combining my card with norman's card, my first mate. we are going to talk a little bit about the history, but more important, you'd sailing in san francisco. you are looking at a picture of south beach and yacht club. if we could get that on the screen from the computer, please. ok, hopefully, we can see these slides that we have made for you. anyway, many people look at the boats at rest and ask how they get there. this is a picture of south beach. used sailing programs in san francisco answers that question, but first, a little bit of history. from the beginnings of san

francisco, many sailors and adventurers who first came here -- names are well known, but they also included others. this was mission bay, which was filled with boats of arriving and leaving with goods and products. the next vote is from clay st., showing ships arriving filled with people coming for the gold rush. over time, ships became a representation of commercial sailing scoters. also there is the alma, a working hayes got used to transport goods in and out of san francisco. recently, information about a chinese armada from 14 01 was skippered, sailed into san francisco bay and up the sacramento river. this was discovered when chinese archives were opened.

this is a map that shows the key sailing clubs and recreational areas in san francisco, many of which offer you sailing programs, including st. francis, golden gate, south bay yacht club, treasure island sailing center, merrill post hunters point yacht club, and mission creek. this is one of the areas where america's cup village is proposed. this is where four of the providers for youth programs are located. in 2000, don riley entered america's cup with her home base being in san francisco. she then found it true you sailing programs, and the legacy continues today through a continuing endowment -- and that is important -- that was established by the 2000 america's cup campaign. here is an example of kids and happy faces who have participated in this program. in addition, india basin,

hunters point about 10 years ago began an annual program that was established to offer kids of all ages the opportunity to spend a day on the water. to date, about 500 people have taken advantage of this opportunity. here you will see watercraft being delivered. kids in their life jackets getting ready to board kayaks. kids on the water. holy katz, which are small boats with no kiel's so they can sail in shallow waters. the whaleboat association also for dissipates in this event, as does supervisors of the maxwell, who has not only been a big supporter, but participate annually. barry had the kids and adults each year -- a very happy kids and adults each year. we of work in partnership with san francisco state university's program.

the best way to get kids on to larger boats is to begin them on kayaks and smaller boats. finally, back to south beach on the south beach yacht club, which has operated a community outreach and viewed sailing program for 18 years. we see kids getting instruction and on the water in mission creek. as you can see, there are many programs in san francisco to not only encourage our youth to sale but to give them the opportunities to do so. many go on to become full-time sailors for their entire lives with the dream of winning an america's cup. i thank you. [applause] supervisor mirkarimi: try to keep the applause down. after the speaker -- [reading names] >> good afternoon. i'm the journalists who follows america's cup matters closely. i find that instead of speaking

to benefits i have seen accrued to previous host cities, i must speak to time. you have heard mention of a protocol. the protocol is a covenant between the defender and challenger of record and one of the elements of the current protocol is the defender will announce the venue by december 30. we spent two years in court arguing about difficulties, but the previous protocol is not an element to be taken lightly. my friends who want to get spared -- partnership, start building teams have been waiting since february for the final elements that will enable the process for them. i do not have any behind the curtain information on the italian option, but i would consider that normal. what is going on here in the background of the america's cup,

i do have the best possible sources on the rhode island america's cup committee. when they were told that they were no long been -- no longer in the running, the rhode island america's cup committee went right on rolling with an ambitious to build part of a new waterfront to put in a bid to host a world series america's cup event, which they believe will be bigger than the america's cup matches they used to happen in newport. i can tell you on the basis of conversations in the last week with figures and said the america's cup organizing in rhode island, they have a bid for the america's cup world series regatta, and all they have to do is take be wide out, take out the world series, and they have the america's cup bid.

>> i speak an endorsement of the america's cup, but with the special feature i would like to bring to your attention. let's speak about pier 30 and 32. if this new proposal is going to be -- it is a bit of giving away the family jewels. the only thing i can rely upon is this report, and the gentleman knows how to crunch numbers with his unimpeachable integrity, and that is a lot of money being raised. it is a gift of public funds, and it may well be illegal, so i

would request you to approve of this project that is being proposed for the america's cup. everyone is going to enjoy this. as a former seaman, i agree it would be a wonderful thing. you are being railroaded to approve this thing. it strikes me that you do not have to give away everything around here because of the conditional agreement for the no. waterfront well in place. i would invite you to take that under consideration. i know it is an unenviable task, but it does not have to be that way. i thank you for the time and wish you luck in your endeavor. supervisor mirkarimi: next speaker please. thank you. >> i own a company called north beach marine campus on pier 40. sailing is dear to me. i never knew it before i got on

a boat when i was 21, and then i just needed to be in the industry. this is a strange city to be in a sailing industry because i am the only canvas yacht shop in san francisco, and i have been there for over 20 years. everywhere else around has more industry based on sailing, and this is a tremendously unique situation at san francisco can get a hold up right now. having seen other things leave the city and losing bids myself on different things, and my husband is a sanford says the businessman, to see when you lose something -- if i could just put in this last line item, then i will get this thing that i want, and you look at the competitor and think maybe if i did not do that, maybe if i was not 1 inch a little bit further, i could have been the biggest of something or other, and to see san francisco potentially not get the america's cup, to even think that potentially not getting it is part of the conversation is a very scary

thing. this is really a great city. the world series just made me realize how truly the whole city loves this city, and to have this come or not, -- to have it not, after the world series is not even something i want to think is possible. i encourage you guys to do what you have to do to bring this to san francisco because it will improve my business. it will improve other businesses around san francisco bay, and as other people mentioned, it is a difficult economy out there, even for something as simple as business. bring this to san francisco. thank you. [applause] supervisor mirkarimi: beyond the speakers i have already called, i'm calling these other names. [reading names]