types of dollars. getting the restaurant open within the next six months would create an estimated 40 to 50jobgs, -- 50 jobs, plus the construction jobs it will create. this restaurant will activate that portion of the waterfront that is in need of investment and will bring benefit to the community to have the facility and area improve for public enjoyment. mr. osborn has offered to extend his improvements to aqua vista park, which the port may not get from other bidders. mr. osborn will also improve public access for completing the visitor dock that was always intended for that location that has been approved. if you approve this request today, court staff will begin negotiations with golden bear, including market data that the new transaction would bring

market rents and be in keeping with port retail leasing policy, which allows for extended terms if a tenant is making a significant investment in the property. at that time, you will have the option of approval. the transaction will also require board of supervisors approval. thank you for your consideration and i am available for questions. mr. osborn regrets that he cannot be here today, but he has invited other representatives to speak for him. >> so moved. >> second. >> public comment. we have john, then topher. >> good evening, members of the commission. i am john. i have been fortunate to have had a relationship with peter

osborn since the development of momo's restaurant. we have begun the conceptual design work for mission rock. we are at a point now where we have taken that conceptual design and distributed it to those who are distributing it to the subcontractors. we are compiling the estimate that susan has referred to. what i can say is that peter has been a tremendous asset to king street. he has a passion for san francisco. he is a tremendous restaurateur. he has conveyed to all of us his commitment to san francisco into this particular area, despite the notice today that sales forces have outgrown their campus before they have broken ground. that has not deterred his spirit to participate in developing mission bay to a greater extent. i am here for any questions you

might have or technical issues you are curious about. i will turn it over to topher, a member of the community and someone we will be working with as we develop our "vista park -- aqua vista park. >> wait for her to call you, please. >> topher delaney. >> this one is yes, yes, yes. we have been terrorized by this kelly mission rock for the last nine years and i am so thrilled to have this guy here. i just ms. -- met him. he is a responsible restaurant eur. he is going to help us out. he has a wonderful restaurant that is run like a grown-up.

that is really fabulous. we are thrilled to have him. i hope you will give him whatever this guy needs to come in. he is going to run a good ship and it will be a good reflection on the port. it is going to be fabulous for the community. that is it. three cheers for the sky. >> thank you. -- for this guy. >> thank you. >> good evening, commissioners. i am the managing partner at water bar. just down the street. i am the newly elected president of the golden gate restaurant association board of directors and i am late for dinner service right now. i have known pete osborn for little over 10 years. he is a wonderful human being.

you are not going to find a more dedicated and passionate restaurateur. a super-smart businessman and someone who is committed to san francisco. i will recommend that you approve this measure as a fellow waterfront restauranteur. we are all there scratching, fighting every day to fill our seats. even with pete as a new waterfront restaurateur, i welcome the new addition to the area. thank you. >> public comment? questions? >> i just want to add, i have known mr. osborn personally through being a soccer mom and dad together a few years ago. i want to reiterate what everybody said. we are fortunate that somebody of that caliber are rows -- arose to take a look at this.

i think it would be a wonderful addition and solves problems that residents have been complaining about for a long time. >> i think mr. osborn is a great restaurateur. still, i guess my concern with this one is that we welcome him to the neighborhood, we welcome him to take over kellies mission rock -- kelly's mission rock, it has been a problem since mr. kelly passed, and there are 11 years left on the lease. i want to understand what his vision was when he purchased the lease out of bankruptcy for that 11 years verses what he

needs -- what, 20 years on the lease? we have teatro, investing $4 million and wanting a 10-year option. this has 10 years and did -- and is investing $1 million. he says better is not sufficient time to advertise. what does support staff think? have we done market research on the area and what that property will bear? and there are developments. it is a prime piece of property. >> it will be part of our negotiation and research. i have reached out to the association. we are going to use some of our economic development analysis consultants based on what he is

going to invest and to get investors, they are going to want to know that there is some term to their investment. it is the end of 11 years. 11 years is chewed up. if you were to invest in business, you would want to know that they would be there beyond 11 years. the difference i see in this and teatro is that this is a restaurant. it is going to be a restaurant. we have to make sure that what is paid by whatever operator is in there is the best that thet port can get in today's market. >> i agree. >> that will be part of our negotiation. what i am asking you today is to be able to negotiate with that tenant that is already occupying the space.

that he will want to invest his money and other investor money. that the return will be as good to them as it is to the port and that is what the goal is of war will bring that back. there has been a request of terms, and it is the base rate of the current rate on annual adjustment. i guess when you say you can look at it in terms of market rent and other things, and this is a new lease, not just taking over the existing lease end extending it, i think it is afford to understand between the old and new. and given there will be an investment in higher value in terms of what their restaurant will be, and we also understand the economics of mr. osborn's projections. if you're going to pay the

existing rent of two percent, that does not sound like a good deal for us. i understand he is investing. we want to picture we understand the economics of the deal, and he is asking for further extension over time, so police is very valuable. -- so the lease is very valuable. we want to make sure we understand the return on the investment and what the poor is. i am not clear yet on what the balance is. >> we will bring that back to you. if that enat the end we had to t out, we would lose close to a billion dollars in revenue because we would have to go through the new process of bidding a new owner. since he is already there, there

is of value to have a tenant on site paying rent. >> you lose a million dollars though. i would disagree with that. >> if he vacated the property and we have to go through the process we are going through now without somebody in the building, then we would lose that. >> we have to remember 10 years from now what the neighborhood will look like. we understand that. we're projecting there are lots of activities. it's great to have that investment. it will be more valuable 10 years from now than it is today. >> i would offer what we're asking for today is the ability to negotiate. you can see notes, and you will be stuck with the least you have. >> i do not think we are saying do not enter into negotiations, we just want to make sure we're giving direction on making sure

the least comes back with what we think are beneficial to the port. that is what i am saying. >> that is our intention, to make sure through market analysis that what he is requesting an not -- is not necessarily what will be the final lease that we present to you. we're just committing to use that through an using educated information in the marketplace, looking at the future value of the lease, looking at the current value of the lease and property, we are going to take that into consideration as we design the deal we would bring back to you for approval. >> hopefully we would see the performance of how he expects for restaurant will do. >> i actually have that with me

today. and until we start negotiating with him, i did not know how much information i could share. in we would want to see it n we negotiate a lease terms. take a that was part of our due diligence that we see his pro forma. we have a lot of that information that helped us make our decision to come and ask you to go forward. >> he could have been bought out and told 202until 2023? we get not only the base rent but a percentage -- >> it is based rand vs percentage. -- base rent vs percentage.

we could consider that. >> i thought it looked pretty good. [laughter] >> it is currently 11 years. he is asking for an extra 10 years? >> correct. >> if he would assume the current lease as is, that is what he is requesting, an extension of the lease? >> correct. usually in the other percentage of rent transactions it is based grant verses percentage. its 7% of the gross revenue is 50,000 a month, then that would exceed the base rent of 20,000 that would be set at the beginning of the lease. >> take the terms that are proposed as both. >> these are all proposals.

>> what i am getting at is this is a unique situation where that if the properties improved over the initial 10 years we would see increase revenue potentially as a result or not? >> no, because we would be stuck with the current term that does not have the up side of the percentage. >> obviously this place has about you in terms of the 375 paid out of bankruptcy, because i do not think there is much improvement in the building that was worth very much? >> not really. actually the bankruptcy judge, which is very unusual, went down and visited the location so that the trustee had gone back to borrow more money, it was just making a bigger and bigger hole, so this did it did the port a

huge favor, up -- so this bid did the port a huge favor because we would of been stuck with an underperforming tenant before and would not have gotten the benefit of the improvements that he is offering. >> how much was originally invested in this please? -- in this lease? >> i do not know appear yw. >>those original improvements he just -- talk about depreciating. they are probably more than appreciated. unfortunately the last tenant did not keep up the restaurant. >> if i did drive up by it today just to take a look. is the concept to use the shell of a building and redo everything inside or really a

tear-down kind of situation? i do not think for a million dollars to tear down? >> the proposed investment is an excess of $2 million. and it is between two and $2.5 million. the 1 million was in reference to the hard construction cost. all of the furniture and equipment that go on top of that. one of the things we have been working with david and the staff has been to make the building a little more transparent, so there is a little more interaction that pedestrians and people in the area have with the shoreline. we are using as much of the existing building as we can, literally getting guttin it. >'s a shell. >> it's a shell. >> any more discussion? the motion is on the table. all in favor? aye. >> thank you.

>> item 13, new business. >> any public comment on new business? hearing none, i move to adjourn. >> thank you. >> public comment? >> anybody? >> nobody? >> we will adjourn in african nation -- recognition of robert ryan today.

>> i came out to san francisco about seven years ago. i was trained as a carpenter. i got sick of the cold weather and the hot weather. i wanted to pursue art. i thought i really be here for about three years. here i am, 7 years later. ♪ i have problems sleepwalking at night. i wanted to create a show about sleep.

a mostly due painting kind of story telling. these are isolated subject matters, smaller studies for the larger paintings. i fell in love with it and wanted to create more of them. it is all charcoal on mylar. it is plastic. i was experimenting and discovered the charcoal moves smoothly. it is like painting, building up layers of charcoal. it is very unforgiving. you have to be very precise with the mark-making. a mark dents the paper and leaves the material embedded. you have to go slowly. the drawings are really fragile.

one wipe and they are gone completely. it is kind of like they're locked inside. all of the animals i am showing are dead. i wanted them to be taking -- taken as though they are sleeping, eternal sleep. i like to exaggerate the features of the animals. it gives it more of a surreal element. it is a release subtle element. -- it is a really is subtle elements. the range of reactions people get is that normally they get what i am trying to achieve, the sense of calmness, it's really gentle state of mind -- a really gentle state of mind, i guess. ♪

>> it has been amazing. the people have been so gracious and so supportive of what we're doing. the energy here is fantastic with so many couples getting married. it's just been an absolutely fantastic experience, so wonderful. >> by the power vested in me, i

declare you spouses for life. >> thank you. >> thank you. >> to actually be able to get married and be a part of this time in history and time in our history is amazing. >> this is a momentous occasion for us to be able to actually have this opportunity to have equal rights. >> we have been together for 14 years. everyone is so welcoming. it's been all set up and people have guided us from step to step. it's been easy. there was live music. people are so friendly and excited. so excited for us. >> it's really great. >> yeah. >> and salvador is party a here to known as party a. >> on the out it looks pretty simple. you come in, you made your appointment. you pay. you go here for your license. you got there to get married.

you go there if you want to purchase a certified copy. behind the scenes, there was just this monumental just mountain of work, the details into everything that we had to do and we quickly realized that we were not ready to issue the numbers of licenses that people are anticipating that we would need to issue. we definitely did not want people waiting in long lines. this is somebody's wedding. you want to be able to plan and invite your family and friends. know what time you are able to get your marriage license, know what time you're going to have your ceremony. >> thanks for volunteering. >> we got city volunteers, we got members of the public volunteering. we had our regular volunteers volunteering. we had such an overwhelming

response from city employees, from the members of the general public that we had way more volunteers than we could ever have hoped for. we had to come up with a training program. i mean, there are different functions of this whole operation. you were either, you know a check-in person. you were a greeter. you were part of the license issuing unit. you were deputy marriage commissioner, or you were on the recording side. each one of those functions required a different set of skills, a different oath of office if they needed to be sworn in as a deputy county clerk to issue marriage licenses or as a deputy county recorder if they were going to register the marriage licenses or the deputy marriage commissioner if they were going to be performing ceremonies. >> donna, place the ring on her ring finger. >> the marriage commissioner training was only about a half hour. it was very simple. very well run, very smooth and then we were all sworn in. >> they said we would get our

scheduled sunday night and so 7:00, 8:00, 10:00, you know, i got it at 11:00. this person who was orchestrating all of the shifts and the volunteers and who does what, you know, said from her office sunday night at 11:00. they are just really helping each other. it's a wonderful atmosphere in that way. >> have you filled out an application? >> not yet. you want to do that. >> take this right over there. >> all right. >> take it tout counter when you're done. >> very good. >> congratulations, you guys. >> for those volunteers, what a gift for them as well as us that they would take up their time and contribute that time, but also that they would in return receive so much more back because they're part of the narrative of someone else's love and expression of love in life. >> this isn't anything that we had budgeted for, so it was basically we asked our i.t.

director to do the best you can, you know, belling, borrow, steal if you have to and get us what you need to do this. and he knew what the mission was. he knew what our goal was. and, you know, with our i.t. grids and our software vender, they really came together and pulled it together for us. it made it possible for us to be able to serve as many couples as we have been. >> so once you're ready, you and your husband to be or wife need to be need to check in here and check in again, ok. are you also going to get married today? >> yeah. >> let's process you one by one. do your license in, exit and re-enter again check in at that desk. >> our wedding is at 3:00. >> as long as we get you in today. >> we're getting married at 2:30. >> don't worry about the time line. we're greeting people at the doorway and either directing them to the services they need on this side which is licensing

or the services on this side which is actually getting the ceremony performed. >> this is an opportunity to choose to be a part of history. many times history happens to us, but in this case, you can choose to be a part of it. this is a very historic day and so i'm very, very proud to be here. >> i have been volunteering. last monday i performed 12 different marriage smones. the least amount of time that any of the couples that i married have been together is two years. most of the couples have been together eight, nine, 10, i'd say 70% have been together at least that long if not longer. >> there is a lot of misconception about who gay and lesbian people are. it's important that people see that we love our husbands and wives to be and love our children and have the right to have families just like

everyone else. >> it's important that we have experienced our own families, our own friends, and the excitement of the volunteers when we get here has made us feel wonderful and accepted and celebrated. >> there is a lot of city agencies, city departments, divisions that offer up their employees to help us out since overwhelming response, it's unbelievable at how city government works. this is the time that san francisco city employees have really outshined san francisco's clerk's office didn't need to hear from the mayor to say what's your plan. they offered a plan and said here is our strategy. here is what we can do. we can add all of these computers here and there. we can connect our databases, we can expand our capacity by x. we can open up early and stay late and stay open on the weekends.