port would also need to complete building the improvements needed for a cruise terminal facility. needless to say we will have a complete funding strategy for phase one and phase two, and we will return to the port commission to provide you details of that. so to summarize, we are requesting approval to initiate only the schematic design on scheme b-2, an option that would create a new 96,000 square foot cruise terminal at pier 27. we believe this design work could be integrated with the city's proposed -- or host city agreement for the 34th america's cup. and if san francisco wynns the america's cup, the interim use by the america's cup could help

solve a funding gap for the cruise terminal and accelerate the design and construction of this building. again, we hope to bring this back to you. as soon as we get information, we will get that back to you. but over the next months, we would like you to review -- come back here for schematic approval and overall site plan of how phase one and two works, as well as funding plan. with that, i would like to introduce peter and dan lamb to briefly go over what scheme b-2 is from a design perspective. thank you. >> good afternoon, commissioners. i just wanted to quickly introduce you to our core

design team that makes up the cruise ship terminal design team. k.m.d. architects is joint venturing with fowler architecture to form the design team for the project. we are teamed up with the well-known cruise ship terminal designer out of miami. we are very excited about the news we heard this afternoon about the america's cup possibly coming and possibly helping us push the project forward into the next phase. to date we have completed about a third of the overall project phases for the project. we are very anxious to move into schematic design to kickstart this in the coming year. i want to introduce you to peter. peter will talk a little bit

about the design on the project for you. >> good evening -- i guess it is evening now, commissioners. it is a pleasure to be back before you. i know it is late in the afternoon, so we are going to try to quickly orient you to scheme b-2, because i know at least two of you saw it before. commissioner crowley, we will try to get a quick review of how we got to scheme b-2. up on the screen now you see the general site plan. of note is -- can you get a pointer working, dan? can you point to pier 27? which is a non-historic building. it is one of the few non-historic buildings along the waterfront, and therefore, a good candidate for demolition in order to build the cruise terminal. adjacent to it is our new installation of shore side power, which is already in place and operating.

at the end of the pier is an area that we will be retaining for operations. however, that is something that may change with the america's cup use as they have talked about removing pier 27 all the way down to the end of the pier. next slide, dan. as you know already, the plan is to demolish the front of the building to create the northeast wharf plaza, which will be the next significant civic space in san francisco. and then behind that towards the water will be the cruise terminal. what you see on the screen is scheme a and b. scheme add looked at reusing the existing shell, and scheme b looked at using a new building on the side.

the existing shell did not offer us much of an opportunity to do a green building because it was not environment altight. also, the g.t.a. that we could provide with the new structure was increased in size. this reduced traffic impacts during some of the larger ship calls and was a significant motivator for choosing the newer scheme. so after feedback from the cruise ship industry, we looked at the larger option. dan, shift to the next scheme. which makes the overall building longer. so it encroaches slightly into the plaza area, and it gets longer towards the part where we allow trucks to go out to the apron, which is that area there that dan is .ing to. again, that provisions area on the end -- provisioning area on

the end would probably be demolished by the america's cup needs to aleo views in that part of the site. next slight. you can see there is a long thin space on the ground floor that can be used for event spaces and is the primary lay-down area for ship arrival. when you are going to a ship, you pull off the embarcadero. you pull into the ground transportation area. there is accommodation for taxis, buses, personal vehicles. and those can all pull immediately off the embarcadero, minimizing impact of traffic on the embarcadero and into the g.t.a. up in front of the building, people go inside, and they go up to the second floor, which is shown on the bottom of the screen there, into a departure lounge, which then allows

direct access out on to the gunningway. currently we have one gangway. the building is designed to eventually accommodate two gangways in the future. on the other mode, they come down here to long thin space. one of the excelling things -- compelling things about this scheme was it had a lot better numbers for event use. as we have made the building longer and offered more flexibility in the building, in particular we've reconfigured the building to allow it to open on to the plaza space at the very tip of the building. that is a real benefit for the different kinds of uses, particularly for the america's

cup proposed uses of the building where different kinds of event-related uses can be accommodated in these basically open bays of the building. next slide. so the building is long and thin. it is about two stories high. in height it is actually smaller than the existing structure that you see there, so it shouldn't be a significant impact. next slide. these are some views of it, an aerial view looking down on it. it has a simple roof form. the next slide, you can see looking at the main arrivals area you can see as you came up to it as ae strahan walking over from the embarcadero promenade. next slide. looking at the face of the building that addresses the plaza where it opens up to the plaza, we have some large roll-up doors there and some covered space that makes a kind of front porch for the building to the active plaza space with

the northeast plaza. next slide. and then the main entry that you would come to as you came up to the g.t.a. offering people a kind of collection space for people who are coming in and out of the building. and then a series of views looking at the kind of ground transportation area, and looking back towards the city from the building. next slide. and then an overview of the building giving a sense of the size of the public space created and the cruise ship terminal. so you can get a sense that the cruise ship terminal is a good vehicle for -- it is right sized for the future needs of the cruise i industry -- cruise industry, and it offers a shell that would be beneficial to the america's cup uses and a great opportunity for the city in both cases. if you have any questions, i

would be happy to answer them. thank you. >> thank you. so moved. >> second. >> is there any public comment on this item? >> part of me would say couldn't we wait a couple of more weeks until we know, but i also recognize we need to move forward. and if you are saying that this scheme with the expanded bag ang is what we need to do, then it is what we need to do. because if we are going to undertake this and not be looking forward as to what is going to be required, then the whole effort would seem to be wasted. i hope we can get moving on it. you all are very creative at finding funding, so i am comfortable that it will come. >> comment? >> i would just ask as a

technical point, but rigging points with heavy loads going in, anchoring those with the shell. how many events do take place with the america's cup as we predict, they will need apparatus for hanging weights and balances and trusts and motors. >> there is some serious head >> stretching there. we need to resolve all the loads on the pier points. that is something we will help them with moving forward. >> is there any provision for gray water or environmentally friendly platinum status down the road? >> yes. we are targeting lead silver, and we to make this the greenest building we possibly can. that is certainly a commitment the team has and that the port shares. >> thank you. >> i just have one question on the cost. on table one, the total cost

for scheme b-2 is $100 million. but yet on table two, the total use is $114 million. i was just wondering what the difference is? >> right. the $99.9 million was for the cruise terminal and the g.t.a. only. moniqued asked as one point as well what would it cost to do everything you wanted to do for the northeast wharf plaza? that is an additional $14 million. >> ok. that is just for the plaza? >> that is just for the plaza. >> ok. >> but there are other ways to reduce that cost over time that we would consider over the next few months. >> ok. thank you. commissioners, all in favor. >> aye. >> resolution 10-80 has been approved. thank you. >> thank you. >> item nine, new business.

>> commissioners, monique had to go back up to the mayor's office. anything i can relay to her? it has been a fun meeting. >> lots of good stuff. >> any public comment on new business? >> item 10, public comment? >> is there any public comment on public comment? [inaudible] >> i'm sure you will. >> can i have a motion to adjourn? >> move to adjourn. >> second. >> all in favor. >> aye. >> meeting adjourned at 5:13. happy holidays.

supervisor avalos: good afternoon and welcome back to our recessed budget and finance committee meeting. last wednesday i said this would be the last meeting of the year for the budget and finance committee of the year and i was right. it's the last meeting. it was recessed. the other half of the last meeting. we are here to discuss final approval of america's cup agreement as well as the civic center community benefits district and budget updates. mr. young, if you could call the items number three and actually did, two and three first. >> item number two, hearing

before the budget and finance committee to review the fiscal feasibility and responsibility including analysis from the budget analyst of the city hosting the america's cup regatta under the conditions contemplated and set forth in the term sheet to fully understand and define the city's expectations for both the short term and long term benefits that would accrue to the city for the purposes of negotiating a formal host city agreement. people number three, resolution approving a host city and venue agreement among the city, the america's cup event authority, and the san francisco america's cup organizing committee authorizing the mayor or his designee and the port to execute the host city and venue agreement, authorizing and urging the mayor, office of economic and workforce development, port and other such city officials as appropriate to take such steps and execute such additional agreements as are consistent with the host city and venue agreement and this resolution to bring the 34th america's cup to the san francisco bay and finding that the proposed event

is fiscally feasible as set forth in administrative code chapter 29. supervisor avalos: thank you, mr. young. supervisor mirkarimi. supervisor mirkarimi: thank you, mr. chair. as you indicated, we are continuing our hearing from last week. i want to say in advance our strong appreciation to the city family in working around the clock in order to produce the kind of analysis that we just did not have the ability to have a thorough vetting of last wednesday. thank you to the budget analyst's office, controller's office, economic analysts and all of the city family. as we had well indicated in last wednesday's hearing, the plan for the northern waterfront, in order to strengthen oured by to secure the rights -- our bid to secure the right to host the america's

cup is substantial improvement. it has been amazing that based upon time lines that have been imposed upon us and how the city family has been able to marshall i think the resources to together in order to try to put forward the best bid we possibly could. the bid that is under consideration now on the northern waterfront is, we think we believe, the best that the city can do. and that we think by moving to the northern waterfront presents a number of advantages for both the city and the event authority. most certainly to develop facilities within the very restricted timeline that is required in order to certainly allow for the race and prepare for the race to happen as delineated in 27 and 29. the cruise terminal process which is already underway,

paragraphs 30 and 32 which has substantial ceqa review because of prior projects. there is less risk to the authority, smaller investment to achieve the same result and the questions of potential development in paragraphs 26 through 28 would certainly be facilitated a lot more smartly through our port. proximity to guests and hospitality facilities, housing options for teens within walking basis to industrial base, robust transportation infrastructure on embarcadero, f, f, and t and k lines. i'm surprised to the recent press as it relates to the city's good faith and very steadfast commitment in trying to proffer the best deal possible where elected officials, we're part of the city family. we're working with public tax dollars and pursestrings that are well obligated in the sunshine of light by having

these negotiations in somewhat of a very surreal way operate unlike any of the other competitors or contenders that are vying for the same rights to secure america's cup. spain who has a king, italy, a prime minister, they have more or less a unilateral right in order to affectate whatever deal they would like and not have to operate under the same conditions we necessarily do. other cities around the country and maybe abroad are hoping san francisco stumbles in some way to disadvantage so that the event authority would then be able to capitalize on my misunderstanding or mistake. we are not going to allow any misunderstandings to happen. we are putting forth the best deal possible. i'm confident with the information that i think will be shared with us today that that will be well evidenced. mr. chair, i would like to go ahead and start the discussion, if we would, please, by bringing up the office of economic workforce developer,

jennifer. >> thank you, supervisors, through the chair, jennifer matts from the office of economic and workforce development. supervisor mirkarimi, you referred to the press over the weekend. there has been one concern that i have heard or rumor today that was floating around that i would like to take a moment to dispel. within the framework somehow peer 50 continues to be a venue that is being discussed. it is not. it was not last week and it is not today as part of the northern waterfront alternative that we have now adopted, that you have now forwarded as the only alternative to be considered as part of the host city agreement. supervisor mirkarimi: that was our understanding, too. >> ok. thank you if i could have the overhead for a moment what you see before you are the venues that would be included in the northern waterfront alternative to host the america's cup. i know we have talked about them at length, i want to

include a visual that shows the full breadth of the piers that are anticipated to be used for short term and long term used by the authority to briefly go through. at pier 80 would be the berthing of the u.s. a 17. other temporary facilities and preare ngata staging for the 34th america's cup. moving up there would be race yacht viewing. 30 and 32 would be the team bases. sea wall lot 30 would be used for tv compound and parking. 36 and 28 would be team hospitality. the area between pier 14 and 22 1/2 would be superyacht center and mo motherings for boats. and pees 19 through 29 -- piers 19 through 29 is the media center to watch the event when

it takes place. last week, supervisors, i just wanted to share that visual because we talked a great deal last week about what the northern waterfront was and had less than ideal visuals to show the full breadth. as you know what is being discussed is he is start and finish lines would be at pier 27 allowing them to go out from there to the golden investigate bridge and back. there were a series of questions that you asked about the host city agreement as well as recommended amendments that you requested that we make. we are here today having made those changes and i would like to briefly talk through what they are. supervisor campos had wanted to understand if undue requirements could be placed on the city with regard to the security and the people plan. what we found is in section 2.2 of the host city agreement, there already exists language

that allows for a termination right by either the city or the event authority should we fail to reach agreement on the terms and conditions of those plans. so that language was already included in the plan in terms of having an ability of the city to have a say-so over the terms of that security and that people plan. in addition, we were able to add language into sections 9.4 of this agreement that really takes the language around the youth plan, the lead environmental plan, and the workforce plan and memorialize those and make a requirement of this agreement that those plans are fully fleshed out to the same degree and on the same time-lane as the people plan as the -- timeline as the people plan and the security plan. we will have a great deal more detail around what those activities will entail. in addition, there was a great deal of discussion last week around the $32 million being

raised by the acoc and wanting to have a higher degree of certainty with regards to that fundraising. one of the things we were able to do over the past week if i could also have the overhead again was develop a more specific list of sources and uses of funds that we see as necessary to properly host the america's cup. in this worst case scenario that i put before you, we assume no acoc fundraising whatsoever. if you assume there is no acoc fundraising whatsoever, what you see in the gray column is that this event still nets out a $5 million general fund surplus for the city. however, we obviously have a time, we have a time flow issue as to when the projected tax revenues from the america's cup land, accrue to the city versus

when our expenses and our costs are going to be incurred. if you see in 2011, we anticipate that, assuming no acoc, there are $6.3 million in costs that will be incurred by the city in order to support the america's cup. in 2012, that number rises to $11 million. in 2013, all of the costs are offset by taxes that are accrued in that year. so in a world in which there is no acoc contribution, we have liabilities in the first two years of $6.3 million and $11.2 million that do not net out until after the event occurs. however, what we have done is in consultation with mark buehl, the president of the acoc, we have strengthened the language by creating a new section which states that the aco:will use best evidence to raise $32 million over a

three-year period that includes raising $12 million for year one, $10 million for years two and three that the city retains a termination right if that $12 million is not raised in the first year. section 2.2 of this agreement lists a host of termination rights that the city and the event authority have in this first year before ceqa is completed and at the moment in which ceqa is completed. we added a section if the fundraising has not been met, the city can terminate. by having gone through this exercise of really drinking down what our costs are and requiring in effect double fundraising from the acoc that we have well covered our costs. supervisor mirkarimi: that's a hell of a layaway plan over the next three years. i understand the 32 ceiling, but what about a floor, to make sure we're absolutely seeing a minimum amount that is being raised?

>> i would tever to mark buehl to come speak to that. as we have said, a central tenant of this event has always been philanthropic fundraising in order to make the city whole. it depends on the mothers and fathers of the city and the region coming together to support this. we have to look to the commitments that are being made for some degree of assurance. what i do think we have shown by diligently working on the northern waterfront alternative is to create an event which does pencil for the city and the general fund over the life of the event and i look forward to hearing harvey rose, the budget analyst's report. ted egan's report on the numbers we can talk about our feasibility analysis as well. what we believe we're talking about now is a balancing.