deregulate >> -- there was not alone. >> it did not hit the threshold to make it on the list of priorities in terms of what they did have its funding for? >> yes. i would say it with respect to 32, it served as a secondary cruz earth -- cruise birth. the upgrades that are being undertaken now would allow the secondary crews use -- cruise use. it had also been used as an a vent site -- an event site. that has not been happening, so upgrades to the pier not only support future development, but they support an array of interim

uses that invents commission -- advance the mission. this is our analysis of the project benefits and risks, and we try to give a fair assessment to the port commission and the board of supervisors we bring forward. on the benefit side, i think we all recognize how exciting it would be to have the 34th america's cup happening in san francisco bay in 2013 and established san francisco as a place for racing. ports, retail, and maritime and businesses have gone through a tough time, and they are looking forward to a great deal of business coming out of this

event. supervisor jim asked about the spectator yachts. an -- supervisor kim asked about the spectator yachts. they serve a major function. we talked on public access to improvements. we are great to see the appears open to public access. we have talked about infrastructure upgrades and some environmental benefits of the projects. we cannot _ and not how this project has invents a 20-year long quest for a cruise terminal -- we cannot stress enough how much this project has of the cruise terminal. with respect to the waterfront land use plan, that along with

the capital plan are probably the guiding planning document that sets forth the mission. if you look at the south beach area, it articulates a great goals, which largely rest on developing and signing use for those areas. this project this board staff believes is excel rating division by decades and allowing a real way to envision a new south beach neighborhood, so clearly the cost us have increased by almost 100%. a lot of our effort has been to to grapple with those cost issues and try to come up with

this functional cap. we believe we have found a way to manage these cost says. -- these costs. there is a lot of public investment going on here. there are a lot of other public sources to subsidize these costs, and there is no financial sources cassation -- financial participation. we are having to relocate a lot, and that is not a fun process for the tenants or city staff. we are trying to find space on port property it where it is available.

finally, this is an issue we are going to be grappling with over the next two years. what are we doing with the piers after the event? it is in many ways more challenging to figure out how to find a use the unmakes cents -- i use that makes sense. that is my presentation, and we are available to a answer any questions or respond. i do want to say we do recommend this deal to you. we have tried to improve it and make better sense. i want to thank a lot of people.

jennifer, and harrington, an important sounding board. the project team, and our amazing attorney have to put in endless hours, and i want to thank everyone with the event authority. you recognize it as is democrats that is the recommendation curio -- you recognize it as is. >> that is the economic. >> i do not mean to imply we will not go back and talk to the event of authority.

give we certainly will. >> thank you very much. i do want to thank you for the work you have put into the presentation. we have the chair. welcome, and thank you. goo>> thank you. i am going to be brief. i wanted to try and give an impression of the work we are going to be doing, because i think it is important. the board was a stock was to try and win the bid. we worked hard to structure the package in order to secure the.

one of the key conditions was the organizing committee would take on the responsibility to try and raise the money, and i thought that went a long way to producing unanimous approval. i might say we have grown to about 75 distinguished volunteers the reagan -- volunteers. many of you have given generously, so i want to make that clear. there have not been any expenses for 14 months. >> i know it is a challenging thing to raise the money. i appreciate that. i was able to put my support behind this effort to raise

money. i come from the philosophy that there is no try. there is only do and do not. >> in the language of the agreement, we would endeavor to raise an estimated $40 million, and we would have fund-raising target of $12 million of first year, $10 million the second, and the reality is we have raised $5 million, so we have exceeded it, although the amounts were 12 million, although we did not have the document. the way we got there is when we first sat down with the event authority, one of the major targets we had to raise money with local corporations. it made no sense whatsoever to have to organizations raising

money from corporations at the same kind. >> we have to ask a question given the time limitations. you are saying currently you halve $12.5 million, and when do we expect to get that to the general fund? >> i was needed. i can address about that. we made an agreement to give them their corporations in exchange for a certain amount of money. that is represented. on top of that we have had $4.5 million in philanthropic money raised. over the years you can get larger amounts, and because this event is taking place over three years, many of those are three-

year pledges. we have talked about what the actual expenses will be by june 30, and we are told somewhere between a benign and -- between 9 and 9.5. we will have about when required. >> what is your understanding of when that will be? >> june 20. >> that is a commitment you are making, nine or 10 million and by june 30? >> absolutely. if my pledges do not work, we are in trouble. they are signed. >> i understand that. >> i am telling you, first of all, raising $40.5 million and this economy from philanthropists and selling our rights to sue corporations would be a tough haul, but we have

gotten there, so if you hear frustration, it is because i hear headlines we have 20 to go. that is in the agreement. we know that. will we get there? let's find out. we are on track to get there. >> one of my concerns about a pledge, i understand that is the language specifically put in. if we are able to fund raise, and the city games only $2 million in revenue. if we are not able to raise about, there is a cost to the city, so i understand there is a question. i do not feel comfortable approving this in two or three weeks unless i have a guarantee we will have $12 million cash in hand by june 30. goo>> maybe it is a line of cre.

i am happy to discuss ways of doing that. i hope we can find ways to accommodate. >> i appreciate your work, and i understand how difficult it is. >> there are two things are will leave. goonot one person we have askeds said no. if there is an enormous amount of prestige with the america's cup. i would ask this board to watch how the money comes through, because i want to be parsimonious about how we distribute that.

will you ask a question, are you sure that is the real number and get it down a little thebit? >> one other question. we have pledges. are there any restrictions? >> there are no conditions so far, and in some cases we talk about some of the benefits like making an environmentally sustainable event, so there are herriot's -- there are areas we need to deliver on, but there are no conditions that we have at this point. >> has anybody done anything like matching funds? >> we have talked to some people about doing that.

that is a possibility. >> you do not see the pledges expiring after a certain point? >> i do not. they are all written in a fashion but certainly anticipate delivery. >> i know it is difficult. i feel like i've put my boat on the line about assured we will have less impact, and the response was about raising money, and i know it has not been easy. >> are very much appreciate it. i think you want as much assurance as you can get on a series of fronts, but when we approved it a year ago there were no guarantees we would get to the first 12. there were simply the believe we would get to the first level,

and so we will pay the bills the city owes by june 30, so this is enormously optimistic. every time i want to take my staff out and popped a court with champagne i get a headline that we have a tough road to go and -- pop the cork of champagne, i get a headline that we have a tough row to go. i am enthused. >> before you do, i think we will go over and update with the numbers. i just wanted to know, based on the fund raising the has happened so far, how do you see the fund-raising efforts continuing? you believe things will change hamas attacks i am confident we are going to meet its -- you believe things will change? >> i am confident we are going

to make it. but it went to committee members, so i felt comfortable at that level. i have to believe. we are structuring and operating with the belief we will achieve that. i cannot guarantee it, but i can tell you we are working very hard and so far no one has said no. >> from what you are seeing, i imagine it will drum up some level of enthusiasm as well? plexuses -- this is below my pay grade, but larry ellison is spending an enormous amount of money with this idea of the fastest boats, latest technology, and this race has never been seen from the shore before, so we are breaking new ground, and there has never been an event but has required the coordination of the entire area.

we have been to washington. we have been to sacramento, so getting traction takes a while. when you see these boats going common-law -- when you see these boats go imagine a 13-story building going to the day, it is going to be one of the most extraordinary things but ever happen, so building but of will take awhile, so the fact we have been successful is very encouraging when we have the least amount, and mind you, the money we have raised has been in advance of the board or the authorities writing in debt if it is not written in it is not going to happen, that is encouraging, so if i have the board's approval they are going forward and we are all learning

with the real shape and form of this is going to be, and there is talk of whether it is bigger or smaller, we are learning about, too, but the more we get a scope of this to the easier it is going to be. >> thank you. >> the chairman took most of the good material, but let me try to go over some of what was laid out specifically. goothis was an effort to get greater clarity, and i want to thank them for taking a look at how we have been able to get to the milestone. i think this is the frame of where we have been operating under the last 10 months.

goothe committee's fund-raising targets are $12 million for year one. there is no where in the agreement that stipulates the schedule, and that has fostered the current environment we are in. we need to work with in having an understanding but sets forth some of the questions today. this is a question we have discussed with the comptroller as well in terms of what are the city expectations, how does this aligned with the methodology, so we believe we have met the milestone for several reasons. we believe the comptroller's report net rose a firm -- does

the firm we have met the $12 million over three years. goin terms of an update, and the last two weeks we have secured an additional $500,000 pledge, of bringing the total to $12.5 million, and we have endeavored to a accelerate sons -- accelerate funds that would be available by going back to our lead donor when you're good -- the we donor. we have out that the full million be paid now in advance. she was out to do 500,000 now, $500,000 later, and $500,000 in the final year. we would be happy to work with the comptroller's office to further updates the report if necessary. a budget analyst report said the

city's costs are approximately $3.5 million, and it is anticipated there will be as much as $8 million to $10 million. the agreements in place to represent we will have cash on hand to meet those expenses, and i would find that the gift we have been able to accelerate helps us achieve that. we are precisely where we anticipated we need to be. get a road map on how to get to the 12 million and meet the city's expenses of the end of the year, but we also have $20 million to meet all of our obligations and a 20-month plan to do that. mark manson the approval process has been a bit of a challenge in

going -- mark mentioned the approval process has been a bit of a challenge. there are a handful of donors who have you, but i need to understand when you need my cash. in the philanthropy world, folks do not want your money to sit idle. and they want it spent wisely and effectively, so some folks have asked us to come back as resources were needed, and as we get over the approval process and over the uncertainty, we will be able to accelerate our plan, and when the events are here, we think it will also be a way for us to accelerate the interest, and i would just like to finish by adding that i think one of the ways that you can begin to understand what division is and the investment that is being made now is to go out to 80. we had an opportunity to meet speaker pelosi and mayor to be out there -- mayor lee out

there, in terms of the narrative, and i think it is a good demonstration of what they will be doing elsewhere, should this advance. supervisor avalos: what happened to pier 80? what is going there now. >> they are building a boat. they have changed the whole interior and exteriors. you would have to ask oracle racing, but i would say looking around, a good 50 to 75 people working there on a daily basis, designing the boats. supervisor avalos: i was there this morning, and i did not see anyone. i did not go inside the shed. i saw a boat. it looked incredible.

i will try to not use a lot of puns. >> this is an early demonstration of what i am hoping we can look forward to, and i am happy and open. chair chu: supervisor avalos? supervisor avalos: i actually took, i reacted to the description of the controllers memo on the fund-raising activity as an affirmation, and it talked about how the language is not -- there is an openness as to whether the goal has been reached or not, but it was not necessarily an affirmation, and i just want to make sure that we can have a more direct conversation about what we are trying to do here, because i do

not comment that much, but that to me mr. toward that came out really s sprint, and hopefully we can ask the controller that now. would you use that word and affirmation. it just makes me uncomfortable. >> ben rosen. we issued a memo about 10 days ago, and we find in that report is they had raised approximately $800,000 by the end of last calendar year. the city had neither invoice nor

had they paid the city and the cash to date, but they did have on hand of 22 documents and revenue-sharing agreements that told millions and payments to them. that payment schedule is over three years, not all receivable in the current fiscal year, and as you represent pledges, so they are not binding, but they do indicate a company's commitment to pay. i will leave it to this body and others to interpret the language which is in the agreement. from my layperson's perspective, it does lead was lacking here in claire née in what was intended.

fundraising. cash receipts. it ashley does not speak to the requirements to the city. we will leave it to you to make that determination. supervisor avalos: and i will say that as one of three on this board and one of the board of supervisors, this does not give us certainty, and that is what i was hoping to have at the time, but that is my bad. chair chu: did you want to speak to this? >> the ability to get a larger get out of your donor, their interest in giving you that if they are able to pay over seven

-- several years as their preference. it is sort of their own financial need, as well, so i offered to use the gifts we have are in receipt, and the pledges that we have are from members of the community, such as the late warren. mende schmidt, john gilmore jr., individuals who live here, work here, and that is the first of six, and there are 21 long. they want to see this succeed. they stand with us. i think they are good for their word and their commitment to us, and i would say the document memorializing this represents the receipts payable before june 30, and we are highly confident that their word is gold as well. so we ask you to