by the lease. it includes embarkation, demarcation, passenger transit, maintenance, supplies and deliveries, storage in handling hazardous materials and security, and issues such as noise, recycling, litter control, vehicle traffic management, they are all addressed. this is an existing maritime tenant, paying the port approximately $1.9 billion in rent annually. it helps to support the ports maritime mission. this lease will provide the port with a guaranteed minimum rent

of $64,700, annualized. the tenant will generate an additional $200,000 for your. meaning that the port should earn approximately $1.4 million in revenue from this currently under-performing asset over the next five years. the city and the port of san francisco proposed the 34th america's cup in 2012 and 2013. they are in the process of conducting environmental review. the city planning department has issued a draft, environmental impact report that analyzes the potential environmental impact

of the proposed events. the draft report includes a section on alternatives, identifying the atrium and the waterway on the southwest side of your nine -- pier 9 for the race events in 2013. should this alternative be ultimately selected, for lower would be asked to agree to a lease amendment to accommodate the temporary burden and public access. having received a letter from the ceo and president of hornblower, they said they would adhere to the festivities associated with the america's cup, working closely with the port and america's cup

organization, providing more space than any of their lease basis consistent with ongoing operations. in conclusion, staff recommends that the commission approved the lease with horned lower yachts inc.. thank you for your consideration of this item, commissioner. >> so move. can i have a second? is there a second? >> ok. >> question, question.

robert? >> emotion and a second, let's take comment. >> questions? >> yes, you can do questions. >> it is a problem and terry -- problematic situation. ideally, you would want the motion on the floor. >> i have the same concern that i expressed with the previous item. we have an issue looming out there. i am not sure why we are entering into something that we

would have to go back to in a few months. in a few months, we would know where we stood. that is my concern. >> with commissioner lazaristust is very permissive that there would be negotiations. who would benefit? that is a significant charge from the event authority. they have a number of other concerns as to about that would work and might cause significant readjustment. >> the reason i did not raise questions was because i differed from the previous ones.

hornblower seemed aware that we would be entering into negotiations with the america's cup. if they are, as i understood it, willing in agreement to accommodate -- i guess that is the only reason. it seemed like the term would stand, knowing that they would have to delay. >> i just want to clarify whthat the city bears the cost without rental. >> is there anyone here to discuss this that represents hornblower bella >> the public

should be allowed to comment on the matter. if someone can inform -- if someone who was informed would like to comment on the matter? >> commissioners, a good afternoon. i am the planning and development leader. the newest member of our team, we would like to introduce her. we were fortunate enough to bring her in to the company as a long-term tenant at the port of san francisco. without jeff and peter, we would not be here today.

we have looked at the diagrams that are in the eir for the paradigm alternative. the leasehold area is not within that alternative diagram. public access, we can accommodate that. allowing public access them on the apron. to us, we are very excited about the america's cup. we want to do everything we can to facilitate a successful operation. we would be glad to provide additional information. >> the uncertainty does not bother you as far as the understanding at the moment? >> we are willing to accommodate whatever you need across the

premises. the issue, i think, is public access. we can change and modify the gate. >> your use of this is displacing the other use of the port? >> we would certainly like to expand our business. we have other products that we would like to introduce. we are also ready to begin the substructure repair work at pier 3. we believe that facilities would allow us to move growth away, so that the contractor can get to the substructure areas and allow us to continue to operate pier 9. >> thank you very much. >> thank you for your time.

>> i am the regional director. i just wanted to echo some of the things that we heard earlier. particularly when we talk about existing tenants moving into the america's cup. we have worked very hard with the port and the mayor's office, which is near and dear to us. we are having trouble with the fact that we have some space that can potentially be used however we need. we are talking about potentially

existing in that space at the potential expense of other existing tenants. we would hope, at the end of the day, that it would be put off. on behalf of the san francisco labor counsel, who recently paid a significant fine for not complying with the health care ordinance, we have a member whose case is still pending before the human rights commission. >> thank you. veronica sanchez?

>> good afternoon. the staff has done a very thorough job. certainly, there is the opportunity for the poor, with this lease. we applaud that and are supportive of financial integrity. i think that where the staff report does not provide answers, there are questions to be s about whether this tenant is in good standing. not just talking about financial terms, but the tenant is maintaining and repairing facilities at other locations. that is definitely a question worth asking.

also, the bid as a criteria set as a requirement for a successful venture, maybe it might be good to ask what other ventures have been done and what the method of delivery is. it was interesting that in the company's letter to you, structure worked at pier 3. we are talking about a safety issue there. we were asked to yellow tag appear with 10 ton trucks to go through.

periodically, as needed to fuel the trucks there, it went on through march of 2011. action was then taken and the company stopped. to this day, we do not know if they are fueling with compliance to regulatory requirements that the port. so, and alcatraz landing project is a representative the late in 2008. we still do not have an environmental review from the company. i would suggest that these are

valid questions that need to be addressed. >> is there any other public comment on this item? commissioners benoquin >> i would like to know if there is any written policy or progress made on the issues or the statements made on behalf of the people. >> i think that she is correct, repairs have taken a tremendously long time. off of the top of my head, i cannot remember the details. at pier 31.

>> [inaudible] >> vari, the room cannot hear you. >> i believe that it exceeded standards there. there are a number of opportunities for them to fuel around the bay. >> does that mean that you are saying they are in compliance? >> i am not prepared to say that at the short notice. >> have you done anything to find out whether they are, in fact, in compliance? >> there are issues, now and

then. there was the location of a vessel in an area that creep up to the front. there have been other issues, over time. we raised those issues and the company responded. support staff checked with the city to make sure that there were no violations. there was an outstanding issue with a sister company. >> finally, there was something about the investigation of alleged firing? >> that was still an open, pending item.

mr. wyman probably knows better than i do. flex my understanding is that it is still under appeal. my counsel tells me that it is an open item. the labor board turned down. there was a subsequent appeal to the human rights commission. going back to the feeling issue, we brought forth a building permit to the port to provide a floating bridge across the damaged area. the building permit was rejected by planning as being inconsistent with the secretary of interior guidelines.

we did not try to solve the problem until we could bring four repairs to the substructure. until we get that access, we are remote refueling off of the property in the east bay. >> thank you. my question to the staff, is there a reason why there has been an emergency in this moment? are we comfortable with the answers to the issues raised? >> it seems that before the final impact report, we will have some claims on roles with in an additional few months.

those are not in writing. certainly, they are not a part of a lease. >> as i read it, it is all very permissive. before we get down that path, i would like to know what the terms would be if they were to transpire. not saying that we will simply negotiate when the time comes. i am concerned that we could enter into something where there is such an intervention. such as the america's cup. >> thank you. >> item number 12. new business. >> is there any public comment on new business? >> item number 13, public comment? >> we do have that. ernest?

where have you been? >> busy, city hall. >> we are glad to have you here. >> my name is ernest white. it is with deep regret that i come before you, to express my deep shock and disappointment, failing to muster the votes from the other supervisors on the board. lesley and testify and verify

that there was a failure as the supervisors lied to me, reported to be independent as brown lost the election. this was an all chinese district. i ask for a unanimous vote. that is how we made the park legal. there was a proposal on the land use committee that was defeated , due to his focus on the part.

the audience felt that the board of supervisors worked tirelessly. but i did all that. i want to thank my supporters for all of the work that we did. no appreciation was ever submitted to us. the park is the most valuable piece of real estate in the city. it brought billions of dollars to the park, as well as the merchants surrounding the park. where is it? it would be timely and very

nice, if you did it. some of my supporters sat in the audience, along with you, lesley. >> thank you. >> steven? >> oh, no. >> good afternoon, commissioners. my name is steven dreyfus. i represent be entertainers of the court. it has been years since this commission be addressed the

performers program. the program has been well supported by the very able port, once per month, issuing permits. the program has proven to be a plus, as it is a more family friendly atmosphere than existed prior to the program. we do find serious problems that need to be addressed. program rules are clearly stated. this problem brings a lack of monitoring within the program. as approved by the port

commission of for -- 2007. there is the promotion and selling of individual artwork, prohibited by the rules. there are other rules being broken in concert that are out of hand and completely unchecked. court staff are originating this program, did not lout -- allow for the sale of less manufactured individual artwork. violators are opening themselves up to prosecution by entities such as the disney corporation, nfl, baseball, and other entities that have had their logos reproduced. it is understood that court

staff inherited the the main in this program with more important duties. i would ask this commission to please lend support for an equitable solution to this situation. especially when visiting fisherman's wharf. the most recent complaints to mid-level management have been met with a suggestion to disband the program. i would ask that you not throw out the baby with the bath water. >> thank you. hard to believe it has been four

years. it would be great to get an update. >> yes. >> kenai have a motion to adjourn? >> so move. >> all in favor? >> meeting adjourned. >> thank you for your stamina.

>> thank you for joining us. i'm katherine sharp. we are very excited today to have a press release from the mayor and have him join us. this has been an amazing experience for those of us from the very beginning. we look forward to sharing that story with you. without further ado, mayor lee. >> thank you, katherine. thank you very much for being here. i wanted to join this great moment of celebration for fibrogen, which is more than a fibrogen, which is more than a serial.