adviser and lead attorney for three america's cup teams for the last 10 years, including two times where i spent months in auckland, as well as most recently in valencia. i have seen what has happened to the port areas with the development of an america's cup. it is an extraordinary event. it would be amazing to see in san francisco. we have not been through and america's cup. i know you have walked races on tv. the months of planning that goes through it -- it will be quite an event from the time that you first see the 90 foot america's cup logo to the final races. even if the golden gate yacht club loses, you will have a venue here. you will have fully occupied tenants there. you will have port facilities that have been rehabilitated. time is of the essence. i am in intimate contact with my former colleagues.

the teams need to know where this thing you is going to be. that puts immense pressure on ellis's groups now. supervisor mirkarimi: thank you. next speakers. >> i and the operations manager for two sailing companies here in san francisco. we are located on pier 40. we have seen an uptick in business already, just due to the possibility of the cup being here. we have been fielding phone calls from around the world about what it would cost to torture a boat to be out on the day to see the races and our waterfront. i was talking to my boss. if this goes through and the board votes on it as a yes, we will start the conversations about purchasing a new vessel to

grow our business and take care of the demand coming in. that will be an immediate four to five full-time jobs, probably in the world of 40 to 50 jobs while the cup is here. some of those will go away. but we will see a large increase on that. we have also seen an uptick in the interest of sailing on the beginner level. we have a sailing school. over the last year, we have talked about 300 new people how to sail. -- we have talked about 300 new people how to sail. we will probably seek 500 or 600 people within new interest -- we will probably see 500 or 600 people with a new interest in our school. supervisor mirkarimi: we have exhausted our speaker cards. if anyone is interested from the public wants to speak, feel free

to line up in the middle and come one after the other. >> my name is tom rilley. i have sailed with ted turner. i have sailed for a number of years. it is a huge thing for the city of san francisco to have this opportunity. i think it is great exposure for the city. i think it is a great job creator. i think it will benefit all of us. not just the sailing industry, but the whole industry. it is an opportunity to update the port area. you guys are doing a great job of fiscal responsibility. you cannot put a price on the atmosphere that america's cup brings to the area. it is a dynamic, energetic atmosphere that will support the city and attract businesses and tourism. it is a result of the synergy of the beauty of the bay area, the

dynamic business area, and the possibility coming from your foresight in supporting the cup to be here. i also want to say one more thing. the guys who race these boats are big kids. they get their way all the time. they are used to it that way. they do not acclimate to your ideas or your time frame. i would suggest that if you're going to do it, do it fast. do it reasonably and get the job done. thank you. supervisor mirkarimi: thank you. next speaker, please. >> good afternoon, supervisors. my name is john harold. i have worked in san francisco for 20 years. i had an office in the ferry building before the remodel. i am a sailor and a volunteer with the bay area association of sailors. you have seen the studies and

are familiar with the economics of america's cup. i am convinced that by hosting the cup san francisco will experience long-term benefits in infrastructure improvements, jobs, and ongoing revenues. i would look -- i would like to talk about another opportunity for san francisco. i can think of no other sport that is as successful to as many types of people as sailing. sailing does not discriminate on the basis of race, economic or social status, and is available to people with physical or developmental disabilities. there are huge sailing programs in our area that serve kids. there is a mix of able-bodied volunteers and disabled sailors that allows people with limited or no abilities to use lakes and to experience the exhilaration of sailing on san francisco bay. guide dogs wearing life vests are also on board during many if

not most live sailing events. american poet and abolitionist john which your wrote -- wittier wrote -- let us make it happen. let us use this lifetime opportunity to encourage all to enjoy the activity of sailing. we have an opportunity to host the world oldest trophy sport in our own city. i urge you to support the america's cup in san francisco. supervisor mirkarimi: next speaker, please. >> i am a lifelong san francisco resident. i am here to support the host city agreement. i recently read in "the garden," and a fellow supervisor spoke to the two-threshold test for

voting for the america's cup. is it is a good deal -- is it a good deal for san francisco? is it the best deal? the first threshold makes sense. i believe it is a good deal for san francisco. especially the northern waterfront option and the new protections guarantees suggested by supervisor chu. the second notion that this needs to be the best option seems misplaced. it is unknowable. as in poker, you have to put your money in before you can see the other players' cards. the only way to know if you got the best deal possible is if mr. allison walked away from the deal. -- if mr. ellison walked away from the deal. secondly, other cities are ready. we should take this opportunity now with the deal we are presented.

lastly, i think it is unrealistic to term the exchange of development rights along the bay as "giving them away." they are valuable development rights. they have not been utilized. people have avoided developing here because of the cost. this is an opportunity to develop the waterfront. i urge you to vote yes. thank you. supervisor mirkarimi: thank you. this will be the last public comment, unless anybody else would like to do so. this is your last opportunity. >> good at afternoon, supervisors. ball the black with the san francisco chamber of commerce. -- good afternoon, supervisors. by black with the san francisco chamber of commerce -- bob black with the san francisco chamber

of commerce. we have an opportunity to marry sports, technology, and media in a way they have never been married together before. we will see images, not just one blimp flying around in the park or the at&t stadium or whatever. we will see many blimps. we will see cameras on boats. we will see images broadcast around the world that will change people's perception of what san francisco and america is. that is something you cannot value in a spreadsheet that we will present on economic analysis. think about how much it costs you to buy a one-minute ad on the super bowl. $1 million? maybe more? we will have months of ads internationally double the projected. that sort of benefit to san francisco's tourist economy, our

experience economy, will be unprecedented. when you tie that into what oracle will be presenting on the technological side and the social media side, that will be how we market these games and people watch these games -- those are the other sweet spots for economic development in san francisco. this is about selling the city, selling an image and beauty of america around the world. you have the chance to make that happen here. the san francisco chamber urges you to move forward with the program and a project that the city family has put together that has been unprecedented both in pace and in quality. thank you for your time. [applause] supervisor mirkarimi: if there is no other public comment, we will not close public comment. -- we will now close public comment. the matter now returns before the budget and finance committee. mr. chair, i would say that we

return to several housekeeping needs. one is in the very beginning of this long but very instructive and constructive hearing. i would motion that we once again moved this -- a move to strike the entire further resolved clause at line 8, which would remove the option of the central waterfront. in that same amendment, these would all have been passed some time ago. move to insert after the parent tentacle of page two line 22. -- move to insert after the parenthetical of page 2922. -- 2, line 22. chairperson avalos: without objection. supervisor mirkarimi: not an

amendment, but a modification. we would signal to oewd and the port that on lead equivalent event management plan and the low-income youth involvement plan -- this is on the lighter side of things, but nonetheless very important to us with regard to having a more well-rounded discussion and expectation of the acoc and the agreement we finally solidified. would you like to make any comments about that? if not, it is self-explanatory to us. >> we understand there is additional language you would like added into the host city agreement to address the leed standards, the sailing commitment, and the commitment to adding $32 million. supervisor mirkarimi: we do not need to do this as an amendment.

it could be a condition. >> it is simply your construction -- your instruction to us to add that to the city agreement we bring back to you. supervisor mirkarimi: that is correct. chairperson avalos: it specifies low-income use from young people throughout the neighborhoods of san francisco. i think diversity is a key concern we have. supervisor mirkarimi: absolutely. i just want to say on the note -- anybody fearing the idea that this may not become a reality -- i think this hearing was incredibly positive and useful. it helps align a multitude of city stakeholders, and stakeholders who are interested, no matter what the outcome is, as to why san francisco should or should not host the cup. a very strong case is being

made that san francisco should secure the hosting rights to the america's cup. because of the time and has been spent, thanks to the mayor's office, oewd, and all the city family, and to members of the boards of supervisors, and to the community, and of course to the patients -- pacienctience exercised by the cup organizing committee, a better deal will only be a byproduct for all. we can be more confident in the bidding process. we want to make sure that we continue to do our due diligence. we want to be sensitive to the fact that one of our colleagues had to leave earlier. i think it would only be correct and appropriate that we would

recess this meeting in making sure that the conversation returns officially to the board on tuesday as a committee report, so that the flow of this continues and that it not be interrupted, so that consideration of our ability to host the cup is decided on tuesday, december 14. >> that is agreeable to us. we would like to take the opportunity to work with the budget analyst office, the comptroller's office, and others so we can report back on that. supervisor mirkarimi: there were threats hanging like the 32 million -- there were threads hanging like the $32 million. chairperson avalos: president chu had an amendment for the

resolution. on monday, we will meet again. i think that will be worthwhile for us to consider again. i know we had a discussion with that amendment, and we had an opportunity for public comment on that at the budget office. it would be possible for us to consider that addition on monday. that is for the city attorney. >> city attorney's office. the change that is being proposed would be a term of the host agreement. that could be done during the interim before monday. supervisor mirkarimi: we should also make sure that the purpose of this is also to see a return of the budget analyst and any of the economic assessments on monday. that is the core reason we want to close the conversation officially on monday so it is

prepped for tuesday's consideration. supervisor campos: thank you, mr. chair. i think it was a very useful hearing so far. someone who has been supportive to the concept of bringing america's cup to san francisco -- i am glad there will be for the discussion on monday. but i am not convinced that this item is ready to go before the board on tuesday. i hope there is no pre-judgment on that until we actually see where things are on monday. i would like to ask a couple of questions through the chair to the budget analyst which i think are relevant. i actually think they need to be aired out for purposes of having as complete a hearing as

we can. to the chair, mr. rose -- through the chair, mr. rose -- what happened today is we have essentially a different agreement that is being asked to be approved by the board of supervisors. the original host agreement has now been amended to essentially be the northern waterfront plan that was put together with the input from port staff. the analysis that you and your office conducted of the original agreement is a pretty thorough analysis. i think that whenever you may say about your views on the substance, i know that it took some time to complete that analysis. i would like to ask you through the chair -- have you engaged in the same level of analysis of the northern waterfront plan that is now the item that is

being asked for approval? >> members of the committee, supervisor -- the short answer is no. we did state in our report that we issued for this meeting on the host agreement that we had not conducted an independent or detailed review of the northern waterfront agreement. now it has been changed. both supervisors of the lows and mercury me have requested -- both supervisors avalos and mirkarimi have asked that we prepare a report for the monday meeting at 1:00. i did clarify that it would be a brief report. it would not be as thorough and detailed as the report -- if the committee wants to do it for monday, as the report we repaired for today's meeting. supervisor campos: it is clear this is a very important project. i think we need to be as

thorough as we can in our analysis. how long would it take your office to conduct the kind of in-depth report that on the northern waterfront plan -- that you conducted for the original host agreement? >> supervisor campos, i would estimate at least one week, and may be up to two weeks. but at least one full working week. supervisor campos: thank you very much. ms. mattson, you want to add something to that? >> as the no. waterfront alternative, there was an effort to keep the budget analyst in the loop, initially through informal conversations as we saw the potential developing. on november 23, the tuesday before thanksgiving, the no. waterfront alternative was offered to the port commission -- the northern waterfront

alternative was offered to the port commission as an alternative. we believe that would continue to be part of the record. that is the basis, that document, the 11/23 document for the northern waterfront. that is before us with slight modifications. the document today is slightly modifying something that has been in the public realm since the tuesday before thanksgiving. >> i would be curious to hear from the budget analyst. from -- supervisor campos: i would be curious to hear from the budget analyst. from my perspective, i did not know for sure that was the direction we were going to take until today. well i appreciate the fact that the budget analyst has been kept in the loop, from my perspective, the budget analyst is doing work at the request of

the board of supervisors. this is the first time in this chamber that the northern waterfront has been sought for by the board of supervisors. >> i am not trying to be argumentative. only to say that we are all working under extraordinary pressure to meet deadlines in order to have this be possible, have ceqa begin, and have this baby something that can be considered by the team -- and have this be something that can be considered by the team. we have been trying to work were operative and under these circumstances to get the bid succeeded. supervisor campos: does that change in the answer? >> i do not understand the context of those comments. if it is meant as a criticism, i would state this.

we learned today there are two more significant projects added to this agreement. if she is speaking for the budget analyst and saying how much longer they should take, i am telling the board of supervisors it will take at least a week to do a professional report. we will do the best of our ability to get a report for you for monday. that is what the supervisors requested. supervisor mirkarimi: then we will see what the work product looks like. >> i am sorry? supervisor mirkarimi: we will see what the work product looks like on monday. >> absolutely. supervisor mirkarimi: but i firmly believe, since we have literally been inundated with data before us in the last week, week and a half, especially from the original plan that is

now the northern waterfrong plan, a lot of data can be extrapolated before us. hopefully, what has appeared to be new would be able to be ascertained and assessed between now and monday. we are counting on you. >> we are going to do the best we can. i want the board to know we work hard in our office. i left my office at 11:00 last thursday night to get this report out to the board. there are many variables. we will do the best professional job with him, supervisor. i promise that. supervisor mirkarimi: i know. supervisor campos: mr. rose, with respect to peer's 24 and 38 -- piers 24 and 38, was the use of those disclosed to you prior to this meeting? >> absolutely not.

supervisor campos: i want to ask the budget analyst about this northern waterfront proposal. something which has jumped out is this notion that the city would be giving away development rights for 60, 77 years. i am wondering if in your research you and your staff have found whether any other city or jurisdiction that hosted the america's cup has in fact given or provided development rights as part of any package to host this event. >> mr. chairman, members of the committee, we did some brief research on that. we did not find any other city that has done so. however, that does not mean it has not been done. based on our limited research, we could find no other city that has granted development rights for such an event. supervisor campos: earlier, we

had a conversation about whether or not there are competing bids for this proposal. you indicated that you in fact had not seen anything in writing that confirmed that. my understanding is that the city attorney made the same representation. have you looked at the term sheet for some of the prior host cities -- valencia or any other host city? has that been provided for you by staff so that you have a basis upon which to compare the city bid to those? >> we did not. we did not look at any other term agreements of other host cities. supervisor campos: were those provided to you? do you know whether or not those were considered by the negotiating team? >> they were not provided to us. i do not know whether they were considered by the negotiating team. supervisor campos: in light of that, you have no way of

comparing how what we are proposing to do in san francisco compares to what happened in some of these other host cities? >> that is absolutely true. the basis of our report was to determine what was exempt, to determine the costs and the benefits, and to name the fiscal feasibility determination in accordance with the board laws. supervisor campos: one of the things i am trying to understand in this agreement -- we keep hearing about the very positive prospect of the economic benefits that this agreement would have for the entire region, not only san francisco. one of the questions that comes up to me -- i am not sure if this is something your office looked at. to the extent that the benefits are not just benefits for san francisco, is there any consideration in this agreement where some of the other jurisdictions in the bay area

also contribute to the plan, since they also would be benefiting from the event? >> mr. chairman, supervisor campos, the answer is no. this is precisely why -- let me read to you a statement i made today. it was option # 4. -- it was option number 4. are option was to structure a joint powers agreement to enable joint funding from the jurisdiction such as berkeley and sausalito that receive economic benefits from having the america's cup held in the bay area. such jurisdictions would not incur costs. similar regional financing was used in hosting the 32nd america's cup in valencia, spain. supervisor campos: we talked

about america's cup and the president of giving away development rights, the value of that -- and the precedent of giving away development rights, the value of that to other host cities. in other sporting events we have talked about, we have heard about this in terms of the income and new job creation. this ranks pretty high. it is probably just behind the olympics, the world cup. do you know if in those types of events, whether it is the island before world cup, if development rights are usually -- whether it is the olympics or the world cup, if development rights are generally given by the host city? >> i do not know. as i indicated, we are not aware of any development rights being granted. i do not know. supervisor campos: a final question. i have some questions for the city attorney.