commission to weigh-in, and updating on the funding. the project will also be constructed in phases. phases are related to which ferry facilities are needed and what time. we will be back with more information as we work with weta to meet those demands. >> thank you very much. >> one more question. when do you expect the environmental impact report to be do? >> the process has just begun. the draft is out at the end of the year, i believe. the final to be certified -- fall of next year. it is an eir and eis. >> if work were to begin, one question i would have is, what with the impact in terms of canada and the america's cup? -- scheduling the america's cup?

would that be calculated in the phasing of the work? >> the first phase of construction would begin in 2014, although that is not a hard date. >> any other questions or comments? thank you, dan. >> item nine b -- 9b. informational presentation on the lease and development of seawall lot 337 and pier 48 bounded by china basin channel, third street, mission rock street, and san francisco bay. >> good afternoon, madam president, commissioners. port project manager for the sea wall lot 337 development project coming here and provide an update on our project to move from years ago rfq/rfp process to a recently approved exclusive

negotiation agreement to meet the benchmark requirements as outlined in the agreement. last september, the port entered into a mixed use development agreement with the 16-acre site, steve a lot 337, immediately south of the at&t park on third street at mission rock street. it is currently used as service parking. the site for this project also a includespier 48, immediately to the east. pursuant to the rfq/rfp process, the ports elected seawall lot 337 associates and executed last september. that entity is today represented by jack bayer of the san

francisco giants and for the director for the cordish cos. with us today is also john north, representing a consultant to the development team. since executing, we have been working with our partners to further define the development concept. multiple conceptual site plans and generations have been reviewed as part of that process to show a flexible mix of uses that can support a feasible economic structure. our efforts so far are geared toward delivering a successful project which provides efficient returns to justify the private investment we anticipate. that responds to the economic needs of the port, meets public objectives of this city and residents, and it fills the communities land use and design objectives. this project differs from most of our other projects with the exception of pier 70, given its scale. that is a very large site.

16 acres on the sea wall lot side alone. it is one of our larger and opportunities. the developer is proceeding in this uncertain economic period that poses an extraordinary risks due to unknown market conditions and financial situations. they are starting to clarify, i think we're starting to see in the marketplace, but there are just some unknowns ahead of us as far as where the economy will be going for that six months, if not several years. based on these facts, port staff constructed turn to provide flexible opportunity to reduce the developer's upfront investment requirements, allowing them to proceed with site due diligence, which i will expand on in a moment, and to provide a flexible benchmark structure that addresses the need for a master plan community. at this time, i would like to invite jack bayer to step forward to the podium to

elaborate on some of our recent accomplishments and anticipated end of the hurdles ahead of us. >> thank you, phil. thank you, members of the port commission. the last time i was speaking before the port commission, you were not here, so will come aboard. i want to review where we have been for your benefit and for members of the audience that are not as familiar with this project. i will then talk about the values we have in our design program, the process, and what the outlook is for going forward. i would also like to mention that karen is here today, she is our principal designer on the project. i am sure she is well known to most of you. for reference, this is a recent snapshot of mission bay in 2010.

as you can see, in the northeast corner of mission bay is a sea wall lot 337 and appear 70. -- pier 70. this becomes the one side really in play for mission bay in the future and creates great opportunities for us, and that is why we're interested in proceeding. the project design is on the screen in front of you. it is the product of the rfq/rfp process. many meetings with park staff, commission, dozens of public meetings with different advisor groups, workshops. it contains a land use program that we are revising right now and a bunch of values expressed in the design. i wanted to review that. our land use plan, reflected in the site plan, had 1 million

square feet of office, 875 residential units, 250,000 square feet of retail, 180,000 square feet of the bed and exposition -- open an exhibition space, approximately 600 parking spaces as well. in terms of the values that we took from the public meetings and workshops and have expressed in this design -- i just wanted to remind everyone of what they are and how important they are to us. first, open space configuration. we thought it was important to maximize the open space along the water's edge. we proposed closing one boulevard to maximize space for our waterfront park. we want to activate the park with cafes and other activities so that it is vibrant, welcoming

to families and tourists alike. it is also capable of large public assembly and events. it has access to the water for recreation. this is a snapshot of the conception of the water's edge to make it interactive. you can see kayaks and the ability to get down to the water. we also conceive of an open space in the interior of the project. we wanted each of the buildings to be enhanced by a water view or part of view. if you look at the site plan, all of the buildings are facing the water or a park. we think that will enhance the environment and make the bi buildings more valuable. this is the mission rock park, interior open space. it is meant to capture parks -- if you are familiar with bryant park in new york, madison square

park -- other urban parks surrounded by large buildings that create a sense of intimacy and a breakdown the mass of the buildings surrounding them. we also can see the linkages from the open spaces. one of them is what we would call the ramblas, like in barcelona, which is much larger, but a thoroughfare which connects open spaces where there are shops, retail opportunities, where people can hang out and enjoy themselves. certainly before and after games. in addition to the open space, we wanted a more refined street in mission rock. we wanted to break that mold and have a finer streets that were pedestrian oriented and

buildings that were not all the same size, hite, and bulk, to create a more interesting form. that was a message that we heard from the community throughout the workshops. we also wanted to relocate a major parking resource on the south side of the site to support mission day and to eliminate parking at the other buildings. of course, interaction with the ballpark. if you have 2000 cars on a parking structure at the southern part of the site, and those folks will walk through the project commentate advantage of different opportunities and open space opportunities along the way to and from the game. as a result, they will reduce traffic congestion before and after because people will leave over a broader spectrum of time. we also want to integrate public transit into the site. we have an entrance to the site

from the existing muni stop along third street. we're also proposing bringing the historic streetcar line through so that it feels like a continuation of the waterfront experience we have in front of the ferry building. we also want to upgrade pier 48 and make it a vital part of the project and create an asset for the city. we think there is a great market for regional trade shows and other exhibitions, and pier 48 can meet that market need. of course, we want to sustain a lot of other values here, including financial return for the project sponsor and the port's financial goals for the project. as bill indicated, we entered into our ena in 2010. we are in the midst of the first of two phases. the first concludes with the product design and term sheet by

the port commission and board of supervisors. the second phase involves the eir, ground lease, and regulatory approvals that go with a project of this sort. right now, we find ourselves in the midst of the first phase of the project. we have completed the operating agreement for the project sponsor. we have said it submitted revisions to the support, looking at how site changes and different uses and skills of those uses. we have also submitted our public-relations plan that has also been removed -- approved. now we find ourselves on the press of this of our next sub middle, september of next year. -- submittal, september of this year. cost analysis for construction. we are working on our comprehensive master plan for the site. the building heights and mass. parking and transportation plan. of course, revised financial

plan that we will submit to the port which will form the basis of our negotiation of the term sheet. so there is a very of activity going on than we will proceed all throughout the summer. come september 15, the public process gets we engaged, not that we will ignore the public until then. we will be meeting with stakeholders and getting people's opinion as we move forward, but the public unveiling of the design will be with the port commission, as we submitted in september. in terms of the areas we are looking at -- first, we want to maintain and build upon the values that formed a basis of our original project design. we think that it was well received and has a lot of attributes that we want to carry forward. we are, however, looking at a project with a new lens, to some degree. it is a new world, more constrained financing, different

project component need to be bankable, need to be built in pieces that the financial market can embrace. for example, when we are building on this side, we need to know each building can be absorbed by tenants and build, so that there is less risk involved with the project. we have to have realistic pricing assumptions, and we have to basically be grounded. and we will work on all of this with support staff as we all understand what the assumptions are, and as we are going forward, what market conditions appear to be. we are also looking at the different uses, as i referred to earlier, we had a certain mix in our submittal,. we want to be flexible and respond to market demand. we have done analysis of what impact on the design -- for example, having 1.3 million square feet of office, were 1.7.

how does that change the design and expressed about is that we had before but keep them current? there is an interest in corporate campuses. that could take different forms. so we are exploring all of those. we are also looking at where best to locate residential properties. our inclination at this point is along the northern part of the site, sloping down to the major park. that could be the best location for residential components. with respect to retail, we do not want to overbuild. we want to build at the right level so that we do not have empty storefronts on the ground floor. those are important in terms of the pedestrian experience, the vibrancy of the project. given the proximity to the ballpark, given the fact that mission bay is generally underserved by retail, we think this project has a great opportunity. but we have to have an interesting mix that is neighborhood and visitor

serving, ahas local character and. some of those areas are along the northern part edge, which would give it more exposure to the proximity of the ballpark and along some of the linkages that exist between the two parks themselves. we have been working quite hard also on how to design the parking structures and how it interfaces with the streets grid, public-service build the proposed for the block across mission rock street. our mantra throughout all of this is to come up with a flexible approach. if we target 1.3 million square feet of office, that we can pick it, if the market for residential seems to be more promising. we may submit a design in september, but it is a design

that we then could alter, as market conditions change. mission bay is building out, sales force acquired a number of those parcels at pier 70. it is off and running. there is an uptick in interest in this site and is part of town, in general. we are involved with interacting with potential tenants and are it excited that things are turning around but are still cautious about this challenging environment. so our objective is to meet the deadlines and exceed them. we will be back in front of you into timber with lots of new work -- september with lots of new work, hopefully to reach a new term sheet agreement. we are hopeful to meet the ena deadline by next september to have a complete term sheet endorsement, and we are hoping to be able to get to that by the beginning of next year so that we can move this project more rapidly thanthe ena guidelines

suggest. i am up here to answer questions. we are excited about moving forward. you will see a lot of activity coming in many ways, the next tranche of time is the most important on the project. a lot of things get done and exposed to the public, reactions from the public, formal reactions. >> thank you. we do have public comment. dennis mackenzie. >> thank you, commissioners. welcome to the commission, commissioner crowley.

i teach in the public high schools. i would like to read a brief summary of the proposal i share with you for a number of years as well as many local politicians and corporate agencies, and for those watching on tv, my proposal can be seen on my website, roundthediamond.com. i want propose a public partnership to create positive education reform initiatives that are essential for the independent health and well- being for san francisco citizens and communities, including our high school and college-aged students. to summarize my proposals, i am expressing an interdisciplinary field of academy which i am proposing foreseeable law 337 -- for seawall lot 337.

i am also including a sports management career path with academy. this project is one of seven major developments that will impact the entire city, including all san franciscans now and in future generations. as an element of the america's cup project, i am proposing a marine science pathway academy to be included as a permanent year-round facility on the waterfront in collaboration with mr. larry ellison and team of investors. as these major projects and partnerships evolve and other developments in the future, i request the port of san

francisco take a leadership role in order to gain support from all the parties involved from the creation of a public service leadership academy located at the port of santhis facility can introduction for our high- school students for the real working world cooperation required between public and private partner entities to complete entitlement and review processes successfully. these field study academies will offer students and future leaders practical experiences that can assist them in understanding the classroom studies as critical to meeting their college and career goals and how successful businesses and resources are built through shared vision and cooperation and provide healthy, constructive and creative jobs, families and communities. thank you for your time. >> thank you.

>> good afternoon, commissioners. i hope you are doing well and enjoying this a beautiful weather. i am a resident of mission bay. i have some understanding of this project. i just have a couple of comments. this one is to jack in a certain sense. we do not have to look at bryant park in new york as far as what you are after was that park, the internal park. yerba buena gardens and at union square are beautiful examples of open space surrounded by large buildings. we do not have to trot out to new york to get our ideas. i think that concept you have a

trying to organize the buildings so they either face the water or face the park would be a great attribute for both the offices and residences. again, learning from mission bay, the idea of breaking the buildings into different shapes and not making it so militaristic would be a really good idea. lastly -- retail has not been successful in mission bay. i don't know what the answer for that is. i don't know what the reason is. but looking around at new developments that have been successful, if you go to that international -- to the airport, the various terminals, there is somebody working out there who is a genius at getting

interesting retail mixes into the area. one of their requirements are that they have to be local. that's an idea, isn't it? so you might think about that and find out who the genius is out there has been successful in attracting all of those wonderful shops and restaurants. lastly, in the thinking that people are stunned at the number of children there are living in mission bay and the parks are admittedly lovely, but up facilities for children are very poor to say the least. other kinds of facilities -- when you are planning your activities, if you could think about finding ways to meet the requirements for installing

child care or small schools for the people in the neighborhood because right now, that does not exist. we have seen this plan and in general, i think i can say it is well liked. >> thank you. >> any other public comment on this item? >> one thing i failed to mention -- we have a standing weekly meeting with ports staff and we are actively working together on this. we have had a report on some of the variants of the design we're working on and we will continue to do that throughout the summer and invite any of the commissioners as well. we would be happy to meet with you about the progress of the

project. with respect to retail, one of the things we think is missing in mission bay and one of the designs we have created is we have a more pedestrian-oriented experience and i think that's important for the viability of the retail. we have thought about that and what has worked and what hasn't. we want to do something different in that regard, as a thank you for that comment. >> thank you. any questions or comments? [laughter] i think it is very exciting and i am looking forward to being briefed on it as it moves forward. in keeping was some of the comments regarding children and giving -- given the proximity to the ballpark, one thing that has

been lacking is planning in advance for event spaces or entertainment. i'm hoping that might be incorporated at the front and and that leads as often to the debates, but it seems like a perfect opportunity to include some more entertainment-oriented venues or music facilities while it is being constructed so that soundproofing can be set up. i would be remiss if i did not put in a bid for a dog park of some sort. >> i want to commend you on this plan. always, i want to hint upon what i believe is a true belief that we can get an arena. i know it is a bit self- serving, however i know you have to pay for it in some way, shape

or form and hope is incorporated. i hope you guys are looking at it. thank you. >> i was curious. you wanted to see -- are there additional resources you are bringing in that to help move the project along? >> both companies are spending it and we anticipate spending more than a million dollars to try to complete the task we have at hand. more money will be spent as we move forward pass a term sheet and the endorsed design throughout the entitlement process. the giants as financial partners, the chief consultant to us -- that will be part of

the project as well in a more limited financial role. >> i guess what i was driving at is do you plan to hire additional people who can take on parts of this because it is a monumental undertaking. >> we have a team of consultants from various disciplines. we will probably hire some additional sources to make sure we can get all of these tasks done. we have met with a project team and look at the schedule of all the things we need to do to meet our deadlines. they are all in the process of being under way and being worked on. there will be a flurry of activity and a large team of people working on this to bring this to you in september. >> if i'm not mistaken, you submitted another design in march.