plan, and that is the bond capacity analysis based on others we have today. we talk about infrastructure and other core costs as well as the valuation development rights. so maybe this is a good time to talk about the economic impact. i would like to go into a little more depth to what carrie had mentioned briefly. essentially, the race is expected to attract all of the race itself, the challenger series, the defender series where everyone brings their boats here and hopefully the sides the final two boats in the race, and all the -- as exciting activities are expected to be about 600,000 visitors gaze of true visitors to the region. additionally, it is expected about 3 million visitors gaze from local to people who are either going to drive from sanford cisco, get on bart and

come here -- about 3 million visitors days -- drive from san francisco. economic activity as opposed to other one-day events like the super bowl -- the difference is that there will be a number of races, a number of very exciting days on the venue, even more than the world series. so with all those visitors in town, john is here today, has done the analysis, it is conservatively estimated that they would attract a total -- about $900 million to $1.4 billion of new economic expenditures in the city. it would create the equivalent of 8840 full-time annual jobs -- full-time equivalents -- and on a relatively short time frame, so that is a lot of economic activity. just to give us some

perspective, that is the equivalent of 5% of the full year except it is happening in two or three months. so it is a lot of activity. i think that's -- and also, i think it is important to underscore something carey was saying about how tenants will be involved. with all those additional visitors in the city, the tenants, especially those who are taurus, whether they are serving them in a restaurant or by taking excursions' today, will benefit tremendously. again, if anything, we have conservatively estimated that instead of a 5% bump for tourism overall, it will be a 10% bomb -- 10% bump without doing any in-depth analysis of the individual establishments. about $1.2 million more, direct

flow bruce, and there will be commensurate large increases to the tourist-related industries. it is also important to maritime-related industries that they will all be called into service. i'm certain that not every activity that will happen on the they will be local, but, frankly, the businesses who are here now know today they have the infrastructure in place, and they will be by far the biggest beneficiaries of the event, so i think there is some significant benefits for the event as we have all been talking about. the term sheet was unveiled in early october. since that time, and i believe even at the board of supervisors when this was introduced, there has always been discussion of an event on the northern waterfront as well, so the court staff working closely with city staff

and the authority have tried to catch up and tried to craft a no. waterfront alternative that serves all their needs, attract the authority in the events to san francisco, but will highlight the central waterfront and northern waterfront, so can you move that one there? essentially, this takes the same level -- the same events, functions and starts transposing to the northern waterfront. the central waterfront will still be in play as one of the areas of use. it will convert to the industrial base, and the catamarans will be taken out of the water, will be worked on, and i'm sure that will be exciting activity for the central waterfront. then i can i ask what we're looking at?

>> i'm sorry. right now, we are looking at table four from the staff report, and i'm trying to link it to -- exhibit a might be the best way to follow along in a staff reporter trying to name facilities and give people a sense of what this alternative looks like. still the first graphic that was attached to the host city agreement as well. >> hang on. can you turn at it for the commissioners for just a moment? you can turn it back to the audience. >> maybe you could put it over there? i think that is fine. my apologies. 3032 essentially becomes the industrial base. they will be supported by sea wall lot 330, and pier 28 will be a potential area to support that industrial area, and the

northern waterfront will really be the public face of the event in this case. the main venue will be pier 27. 21, 23, and 19 are also likely to be pressed into service. we have been moving very quickly. i'm not sure we have specific visions of what will happen in each of these locations. it should be noted that unlike the southern portion of the central waterfront, piers 48 and 50 where we have a number of tenants, but a lot of those tenants are long term maritime tenants, many of the tenants in these specific facilities are short-term. they do storage. they have other activities going on. it should be noted that, as you commissioners have heard a lot about a project at pier 27, is our cruise terminal. part of the excitement and was the no. waterfront is catching up a little bit is first, staff had a difficult time envisioning how long term occurs terminal will work with a short- term or long-term america's cup race, and one of the key events

that happened is the teams -- the authority announcing that the ac 72 catamarans were going to be the boat of choice. these are very fast, very low- drop catamarans, and these ships really -- the maneuverability and speed probably will not need breakwaters. breakwater was probably the one thing that would make this incompatible with the terminal, so you can envision, and we have been in discussions with the city and even the authority on demolishing shed 72, and making it available on the basis of accelerating the cruise terminal but stopping for the event. building a building, similar to the buildings you have had before you. a new building there.

essentially have that available at the primary race event of a new where all the boats with launched from and race from and essentially come back to the winner's circle at the end of the race. this would be sort of the primary exciting the new. if you take down the shed and look at the value, that is a significant amount of land that can be used for public revenues. of course, there will be some industrial uses there as well. this really creates a wonderful focal point on the northern waterfront for the public event of the race. so this is sort of our concept of what a race primarily on the northern waterfront supported by the central waterfront would look like. i think, quickly, we need to go through our estimates of what it would look like from the financial perspective from the port. turning to table five in the staff report, there is 57

tenants in these facilities. a little bit more than on the central waterfront. as i pointed out, almost all those tenants in 1923 complex or pier 27 our short-term storage units. pier 27 was up to 10 not that long ago because of shoreside power and our conversion and moving forward. those tenants have already been there. they are not going to be long- term tenants. the effect is significantly different. another factor on the northern waterfront is rather than trying to transform the northern waterfront permanently, we are viewing the first race and any subsequent as a shorter-term event from the northern waterfront. that is how we have been conceptualizing it. but in short-term uses in use for no more than six months at a time, and that would allow us a

lot more flexibility about how the investments balance with the rewards of the race to the city and port. just to summarize this table, we believe the over the total event, rather than $13.2 million of event lost, we would have about $6.7 million of revenue loss. if you step back and look at the capitol and other costs as well, there are still tends to be relocated. there is still some debt that would need to be issued. in this case, that debt, i should point out, will be essentially doing secret clearance and corp. and shell improvements on the asset we are already leaning towards. then, there is some short-term cruise terminal shortfall. the project will need to be accelerated, and as you have seen before, there has been a

shortfall in how we will fund the project to accelerate the project and make it part of the improvements of the northern water from alternative. we will take a contribution both from the team as part of the infrastructure contribution as something they will be able to recoup. we estimate that currently at $6 million. we will need an investment as a financing mechanism. now, we are allowed to not only deliver a terminal corp. and shell but deliver earlier than the terminal has put into play. again, there still will be investments. there will still be some long- term trade in terms of that compared to that infrastructure investment compared to their long-term capability. we are currently envisioning that as commercial leases at

pierce 3032, seawall lot 330, and there's potential that there will be other facilities as well. if you look at it in that regard, we are proposing a slightly different structure. i guess i should step back and say court and city staff have been working on this tirelessly but have not always been in as close communication with the authority to say that all this is something that is agreed upon. there is still a lot of work to come to a final agreement, so the city agreement you have seen is a long, complicated document. but essentially, we are projecting there is about a $55 billion infrastructure investment of the port from the event authority, and there will have to be commensurate long- term leasing that will allow them to recoup that long-term investment. i would say this $55 million investment is well placed for the commission and molasses to

kickstart our terminal. anyway, to summarize, there is about a $15.8 million price tag for the port. with that, i wanted to know one change to the resolution in front of you, and then i will be ready to entertain any questions. because, as i mentioned, this is a work in progress for coming up with an accessible no. waterfront alternative, and i should note that both agreements are before you because there has been no conclusion either from the city or event authority side of what is the -- where the final venues are going to be and what the final arrangements are going to be, and this is something that given the

shortness of time we are going to be asking you to approve both of the agreements. that just is a way to acknowledge that though you have two documents in front of you, there is some flexibility that is needed. we have some alternate language we would like you to consider. in the shortness of time, i did not take it out of my bag. but in the result clause on page 24, that begins, "resolve that the port commission hereby authorizes and urges," i believe that is the last one, that after the phrase saying, "do not materially increase obligations or liabilities to the city," we should add the phrase, "or the port, except those that are offset by the benefit to the city or the port, which will allow us in negotiating a final

host city agreement and getting full agreement with the host authority that we will have the ability to essentially rejigger the give/get if you will. we have been talking about infrastructure works as something that the city or court needs to receive, the long term investments in four properties and anyone that does those improvements should expect to get something in return. i think that is a really critical issue to align our interests, and i think what we are asking for in this change of resolution is that the balance between the liabilities and obligations stays the same, that we should have some flexibility in negotiating a final host city agreement. >> for the benefit of the audience, please say it again slowly, the language change. >> thank you. after the clause saying "do not materially increase the obligations or liabilities of the city," we suggest adding the

phrase, "or the port, except obligations or liabilities that are offset by a commensurate benefits to the city or pork." and it goes on "and are necessary and advisable to bring the 34th america's cup." with that, i apologize for the link of my presentation. there is a lot of concepts we have been working on, and i am available for questions. >> i second the amended resolution. commissioner fong: commissioners, you have questions for staff or public comments? ok, great, thank you. let's go ahead and open it up to public comment. i'm going to call a couple of different names at a time just a you can prepare yourself. first speaker is rich smith. second speaker -- kevin barry. >> good morning, commissioners.

in general manager of marine services down ad pier 50. we are a women-owned harbor services company, and we employs 75 people in good-paying union jobs. released quite a bit of space from you folks. margin of lock between 48 and 50. some space down at the south side of pier 96. we first least add pier -- leased at pier 46, but we relocated in 1997 with the construction of the giants' ballpark, and our former offices are now the right-field bleachers, so we might be in the same situation again.

we did move to pier 50, but what that experience, we were not fully compensated for our move. now, we may have to move again. the staff report notes relocation capital costs would be $275,000. that is not completely correct. that is just the capital improvements we put into new fender piles when we renewed our least a couple of years ago, so we have other capital costs that would be associated with this move. actual relocation costs, actually are unknown because we do not know where we would be moving. the other thing i wanted to imagine is that we're going to move further south down the waterfront, and it will introduce higher operating costs for us. our water taxi customers like the land close to the city, so moving two miles further south would require us to have some sort of commercial water taxi landing and a waiting room of

here in this portion of the city rather than down pier down -- rather than down near pier 80. all we ask is that we be treated equitably. >> in the program director for the treasure island family center. i just came down here because i wanted to show our support of my organization for this event to come from san francisco. i know one of the biggest questions is how is sailing available to people from different backgrounds. i know that it at times can be considered an elitist sport. we just wanted to come down and say that we worked tirelessly to try to provide sailing to people from all different backgrounds. we work with many organizations in san francisco, most of whom use organizations to provide a sport that will give them a lot

of skills and a lot of self esteem, and just an opportunity to get outside of their normal comfort zone and deal with these things. we think that the dress that came here, they would provide -- it would make the sport more visible to people from different backgrounds and benefit us and the community in general, and it would also give our students very strong role models. we have had the team work with our students in the past when they have come here for other events, and our students were very motivated and afterwards, this showed them something to strive to be. i will just be brief -- our organization works mostly with people back do not pay for our services. we work with the glide organization. had over 200 students come, and we are just hoping that we can

bring this event to san francisco because if they come, it would increase the sailing in general, and through that, we are hoping to increase the participation of people from disadvantaged communities. thank you. commissioner fong: thank you. >> good morning. i am a resident of san francisco. as a journalist, i have a lot of background with the america's cup. in the 1980's, i watched the shabby port town lasting the transformed by hosting one of america's cup. in the 1990's, it was a stretch of waterfront in auckland, new zealand. then, valencia, spain, leverage and an america's cup to reposition itself on the world stage. now, it is our turn, but i would like to leave you with a different perspective that is just as important to me.

when the yankees gunter, that upstart yankee schooner -- a sailing vessel represented the epitome of technology and national pride, there were newspapers in new york city running editorial saying, "do not go. you are going to embarrass the whole country." but they beat the best of britain. the bearded the english lion in his own den. it was a big deal. all across this young public, church bells rang. headlines screamed, and what became known as the america's cup is a national treasure because they had the gall to call that boat america. ever since the win in february, cynics have been telling me that san francisco will never get its act together to host an america's cup.

let's prove the cynics wrong this time and finally, ultimately, put an end to our season of torture. [laughter] commissioner fong: thank you very much. >> before we begin, we created and rehearse our combined three minutes to fit into six minutes, so i'm probably going to speak really fast to where we can fit it into the four minutes now allowed. my sidekick is norman appears, and we are here to talk about youth sailing in san francisco. our first slide shows south beach yacht club, and we hear people ask how we got there. used sailing programs in san from cisco is the answer to that question, but first, let's review some history of sailing. sanford's is the benefited from sailing vessels from our

beginning from vessels in first came here included familiar names, but it also included names such as mariano vallejo. this is what mission bay used to look like, filled with boats arriving and leaving with product and bounty. the next slide shows a picture from clay st. of ships arriving. people excited about getting to the gold rush. as time progressed, ships became a representation of what commercial sailing look like. also dock at hyde street is the alma, a working hate scowl, and you can see how different it looks. recent discoveries from the opening of chinese archives are reports from 1401 of eight chinese armada that arrived in san francisco, sailed up the

sacramento river and then returned to china with news of their exciting discovery. this next map reflect key sailing clubs and recreation areas in san francisco, many of which offer you sailing programs. these include, as we just heard, the treasure island sailing center, south beach yacht club, mission creep, and also lake merced -- mission creek. the eastern waterfront is home to our youth sailing -- commissioner fong: i would like to extend for just a couple more minutes. thank you. >> i had better speak more quickly. the central waterfront is the area where a lot of the youth sailing glasses take place. the no. waterfront is more geared toward senior and up and coming sailors. in 2000, don riley hosted

america to vote in the america's cup, and her home base was san francisco. she created the true you sailing program, which continues to exist today through a legacy of hers. in india basin hunters point about 10 years ago, annual program was established to offer kids of all ages the opportunity to spend the day on the water, and this has been widely attended, and kids you can see learning how to tie knots, using the grinder, which helps raise the sail, enjoying a male actor, and food always taste better after a day on the water. i'm a little ahead of the slides, but that is okay. i'm going to keep going. back to south beach, another youth program was established 18 years ago, giving kids the opportunities and sailboats,

kayaks, and the opportunity to get your children out on the water, and you can see how happy their little faces are. in addition, there is a large bad association, and that is the bay area association of disabled sailors. you have people who are quadraplegic, who are blind, who all sail and love being out on the water, and they sail with their senses, with the wind on their faces and their ears. so in conclusion, there are many programs in san francisco to not only encourage our used to sail, but to give them the opportunity to do so. many go on to become full-time sailors. thank you very much, commissioners. commissioner fong: thank you. [applause]

>> i'm president of the sailors' union of the pacific. we support the concept of the america's cup in san francisco bay. we have a problem with exhibit bd, referred to by the mayor's office. this would allow the transportation of spectators. this has got to come out of this. the mayor's office has assured me, and i hope they assure you, that this will come out because we have people who are dependent

on their livelihood, you know, who are american citizens, residents of san francisco, who would be affected. so that is all i have to say. commissioner fong: thank you. >> thank you very much. i work with latitude 38 magazine, which is a west coast sailing publication, and i'm here primarily because of enthusiasm, and i got so caught up in it 25 years ago i have been trying to make a living in, so i'm also here to represent small businesses on the west coast, and on the west coast, lat 38 customer serving marine industries, sailing businesses, and we all know that coming to san francisco bay, the america's cup would bring lots of new business opportunities. our small customers will probably get into the