years to 20 to 30 years. so it is a good investment for the porch, for the maritime use that it brings back to the piers. we think we will be able to have evens at this location, not just the america's cup. we used to have some. and it could support future development, as well, and we do look forward to the proposed hearing on the development issues at the port. i know the director is looking forward to that discussion, and we will be ready to talk about how this plan could facilitate a future development of this site. what could happen here for the america's cup par 5 team abases, over for the bases if there are more teams then that. that would be down and -- at pier 80. there would be some dredging along that side of the pier for

the catamarans, albeit much reduced dredging from what was proposed, and it would face that green quadrangle area, where they would be loaded onto the pier. pier 30, at the top of this light, the event authority is still looking at what could go at that site. there could be some hospitality uses. we need to talk about public access. but there is a lot of room to work with, and we think this would be a great home for the team industrial basis. this is a rather busy slide, and so i am going to summarize it at a high level. we had been relying on the of the authority to do sort of worked at 27, 29 -- to do work at piers 27 and 29. there also public access

improvements to improve public access along the waterfront, and there are certain dredging expenses that we now propose to undertake as public works projects, and i would just summarize a few of them at a high level. the 29 substructure need some more done to it. the water control board want to see storm water improvements to improve the quality of water flowing to the bay. there is a 29 and wall, a historic preservation feature, that the port would undertake, and we have to fully fund the relocation of the power company to make way for the construction activities. that is about $7 million worth of work. the bcdc costs are largely along the south apron and another area. there will be permanent

dedicated access in this areas, which will be a legacy benefits which will improve the waterfront long after the america's cup, and removing pier half and pier 64. these are old and need to be removed from the bay to improve the health of the bit, and finally, for the large spectator vessels and the catamarans, we are looking at a variety of dredging in four locations, although we expect that it will no longer be required to have dredging at pier 14 south. that would be a savings of over $300,000 compared to what you see on the slide. also, millions of dollars in capital projects. we have run through this scoring process using the standard criteria, and all of the projects got a score that merits funding without the america's cup, so we think these are good investments for the port to make.

so as to the sources of funds, mike alluded to the fact that there will not be long-term leases, support will not be getting rent on a long-term basis, and the result of that would increase the ports bonding capacity, so we would propose issuing new debt in addition to new debt this year of $15 million, reallocating some existing debt that has not been extended on other projects, and look at either a combination of poor operating funds and other projects to reprogram funding to these projects. we have got about a $967,000 current shortfall. we propose to make up that shortfall by reducing the dredging, as i talked about earlier, and refining these projects as they go through the design phase, and we think that is a design that we can easily do.

so this slide gives you a little comparison about the development and disposition agreement in front of you right now, so under the old agreement, the port would have gone without $3.90 million in current rent on a long-term basis. that all will be staying with the harbor fund now. using very conservative two-time debt service coverage, that would increase the bonnett capacity of the port from $65 million to $89 million, -- the bonding capacity. we were planning on issuing $24 million in 2012, primarily for the cruise terminal project. that would go up to approximately $40 million under the disposition agreement. and then we have another planned debt issuance of $27 million in

2014, and that would finished phase two at the crews terminal and other projects planned at that time, and that would remain unchanged. finally, to our own program to bonding capacity, the amount of debt capacity remaining after we are taking into account all plans for the debt issuances, it was $40 million under the prior development and disposition agreement, increasing to $22 million under the revised disposition agreement, so the short story is that the court believes we can pay for this back into capital projects. we will be back to you to talk about how we deliver them under such a tight time frame. we are switching gears quickly from the development model to a public works projects delivery model, and we will be talking to the budget and finance committee tomorrow about the flexibility we need to deliver those projects, so i want to say that

we can deliver this work for the city and for the event and are eager to do so. i, too, and available for any questions if you have them. thank you very much. president chiu: colleagues, let me ask you have any questions to either mr. martin or mr. bemsen. supervisor campos? supervisor campos: i want to know if you can tell us why we are moving so quickly through this, and through the chair. >> mike martin, project director. really what we are looking at is the timeline that is continuing to shrink between now and when the events, . by putting forward these construction projects, we know that the pier 27 project has

already begun, so we have got that step forward, but we have to get permits, amend them, and then move ahead as mr. bentsen mentioned in time for the 2012 event. that is really the impetus. we appreciate the board being willing to take this up, and we are hopeful that you will support it. supervisor campos: thank you. president chiu: supervisor mar? supervisor mar: i appreciate all of the work to come up with the amended proposal, but can you talk about the work force development and the percentage of local hiring? can you go into more detail on the work force developed part? >> sure. there is a revised work force development plan that is in the file before you. it continues to reference potential permit construction work done by the event authority, and that is in the event that the city can

establish a flexibility that mr. benson mention. the of the authority would step in, and they would reimburse. based on this outcome, what was negotiate with the of the accord is that this is the city paying for the work under either approach, which supplied the local hire ordinance under each approach, so the current percentages apply no matter who does that work, just as they do now at the chris tillman project, so all the permanent and the structure improvements will be subject to the local hire ordnance. supervisor mar: bank. president chiu: any other questions, colleagues? supervisor avalos? supervisor avalos: an agreement with some of the trades, could you talk about that, please? >> we have got a changing free marketeer and a changing framework there. that is really a private discussion with the event of 40.

obviously, there construction work is now limited under this approach, but they still let the other potential temporary work and things that may happen, so i understand that those conversations continue. president chiu: any other questions, comments? ok, thank you, mr. martin, mr. bensen. let me ask if there are any members of the public wish to speak on the matters before the board. if you could, line up, and each member of the public will have up to two minutes, and we have our first speaker. but thank you very much, board of supervisors. just so you know, i am english but and a u.s. citizen. i, like all citizens who follow this, i am incredibly excited. the america's cup is the oldest trophy in sport. i am very much looking forward to san francisco hosting it. one of the important elements of

this is the legacy it will have on san francisco and the citizens of san francisco and the bay area. the america's cup used to be exclusive. now, it is inclusive. san francisco will enable the next generation of sailors and youngsters to enter when this is a constructive support for all. as an international citizen, i can tell you personally that the groundswell around the world about the america's cup finally being hosted in the best place for sailing, the san francisco bay, in the world, will be echoed. to conclude, i ask you, or i implore you as a small-business owner, the secret ingredient of every success story. faith. fade that the city will get more taxes, more revenues, more jobs,

more prestige. this event is a great event for the city. thank you very much. president chiu: thank you ♪. next speaker. >> good afternoon. a consulting company. i was impressed with the aforementioned presentation. i heard scaling back. i heard reallocation. i heard allocation, building, construction, and as a minority business owner, making sure that women under, minority and, disabled veterans all have an opportunity to bid and win some of these contracts. the young man just said it very eloquently that this is an inclusive opportunity, as much as san francisco is a very inclusive town. i came here 24 years ago from

new york city, and i came here for a two-week vacation, and i never left, said that is important for me to know that we are seriously going to take a look at this and make sure that minority owned firms, women- owned firms get the opportunity to bid and not be held outside the glass looking in. i appreciate your time. thank you very much. president chiu: thank you. next speaker. >> been added. my name is kendry. i was handed the reins of an association, and also, i'm speaking on behalf of the mission association. in 1951 when the yacht america arrived off the coast of britain. the royal yacht. in the audience was queen victoria. it came back to new york, and

that is how the america's cup was born. it was not until 1983 when these young folks, let's from australia, arrived with a yacht. they had a flag with the boxing kangaroo. it was radical to win the race. they went to australia, because they had the right to select where they had the race. the place was called fremantle. i was in fremantle in 1969. it was a backwater port where the ships would pull in, both cargo and passenger, to refuel and replenish supplies. i went back again after the race a few years ago with my daughter. let me tell you, that town, that city is a gorgeous city now. it has got beautiful shops, parks, bars, entertainment places, just everything. this was only because the

america's cup was held there. i urge you to vote in support of this event. thank you very much. president chiu: thank you very much. next speaker. >> david, founder and president of a business related service. i have had the business and privilege of touring oracle racing with a few of my disabled sailors, thanks to a presentation by mr. stephen barkley. i have also perform a lot of work with the united states air force at one of them strategic air force bases in the world. i have seen raptors and bombers up close, the president's air force one, and others. the oracle racing fleet rivals of them all. there is so much more to be said about this new frontier in sailing than what we are talking about. the america's cup is a new challenge for the minds of children and young adults. not only to think creatively but

to engineer marvelously. i know that the board has had wide sweeping concerns about land deals and local hiring and widespread economic impact, but it sounds to me that most of those issues have been resolved. as far as spreading economic impact across the various disadvantaged areas of the city away from the waterfront, that is what this event needs to focus on inclusion as opposed to just providing access to racing. inclusion will enable more people to reach the favorable pockets of the city and enjoy them outside of the race time. think about all of the street vendors, the prosperity, and all of this satellite activities that will arise from the america's cup. more importantly, i really want you to think back to june 19, 1999. rutherford new jersey, the stadium, home of the new york giants, but instead of a football game, women's soccer

laid siege to the international spotlight. that game showcased. knowing what ever have thought that women's soccer or any other sporting event would have the slightest chance of filling up such a large scale. president chiu: thank you very much. thank you. next speaker. >> that afternoon. gary. two observations about the america's cup. one, seawall lot 330. going back to 2010, red java house is going to be thrown out of the bus. among the thousands of people who go there for every baseball game, and i am one of them, it

is going to be preserved, and i think it is commendable to the board that this happened. secondly, i also heard today in the mes disposition that deawall lot 330 n is going out, as well it should have. i am glad to see that it is out, and you are to be commended on that. the sec and the general observation it pertains to the process of the america's cup from one person's point of view, mine. it seems to me that the board of supervisors and its budget analyst's and the spot on the analysis and figures deserves a lot of commendation, and i think that you have been a buffer against the frequent penchant for things emanating across the hall here. despite the enormous the efforts of people in this participation. the america's cup now, it seems to me, is affordable.

it is a proper scale, and it should be enjoyable for all, and that the board deserves a lot of credit. it was inexcusable what went on there, and one person at least thank you. president chiu: thank you very much. next speaker. >> good afternoon, board of supervisors. my name is -- and i come to represent one of those disadvantaged neighborhoods which we call the fillmore. as the gentleman spoke to come outside the race and come into our neighborhood to see how we can get some economic development also, and also, with the special permits, you know, food vendors, street vendors, the local hiring, and i think we really need to get knee deep into the meat of the rays as local hiring is just not based on construction.

i work part time sometimes at the moscone center, and there are so many jobs there, u.s. security. you have the construction of the booths. we have so much employment there that i think we should have and point out line on what it is that the america's cup is going to need from a small minority contractors, security, to building stages. there are so many jobs that i think the local hiring issue needs to have a better help line and not just what was given to us. i think there should be a special hearing just on the jobs in this small contracts that are available beyond just construction. construction comes and goes. small businesses, as we get ready for small business week in may, they are here to stay, and we know they are the backbone of the economy.

we want to know this also. president chiu: next speaker. >> i am kimball, and this is not my first time to speak as an advocate of the america's cup. i urge you to keep the faith. we have all made some adjustments. since february 2010, and the close observer of the city family, and there are some very adept, smart people working hard to make america's cup on the san francisco bay a reality. i have a better opinion of city hall than when i started in that observation, thank you for your efforts. there is not a lot of new stuff to say. let's get this done. thank you. president chiu: next speaker. >> been added. my name is dave hill. i am the vice president of the international longshoremen's union, and local located next to at&t ballpark.

we are very proud of the fact that the new cruise terminal is named after our esteemed past president. his legacy was about protecting and creating jobs along this waterfront for the diverse membership. today, i speak on behalf of the international and for four locals that work is san francisco crews and cargo terminals. we support this agreement because the poor investment at the piers will create jobs for our union. it will create jobs for the races in 2013 in the short time, and in the long term, it will create jobs at the increasing cruise business. the facility can be used for a third cruise is the terminal. we have met with a race official, bob, and we have told him our expectations and to have members work at existing terminals. we are asking that the members work where there will be race

boats and spectator boats docked. anything short of this will be a blow to our legacy and a rich history on the waterfront. on a leap of faith, we supported the america's cup altman this process, and we are still supporting it today. the america's cup, getting to finalizing their contracts for labor, we a expectations that this will be met. thank you. president chiu: 80. next speaker. >> good afternoon, president, members of the board. i am the secretary/treasury -- treasure of and local that provide security services to terminals and crews facilities. we credential all of the vehicles accessing marine terminals. on behalf of the members, i am here to support the america's cup development agreement today. i have been here many times. i cannot tell you how many times

i've been here to speak. i have been too many meetings and have sat on the hard benches for hours, and they are very hard. but i have been doing that because i am optimistic that our members will benefit from the jobs that are created in 2012 and 2013. our local is very diverse. we are over 50% minorities. maritime security jobs are hard to find in san francisco. at the waterfront, we have a unique opportunity with this event. last year, we guarded the or always but for two months, and we look for to going back for the america's cup. it has been a long process, and we hope that today it can still be approved and that we can continue to work with the racing management on the many requirements where there will be raised and spectator boats. thank you.

>> good afternoon, president, members of the board. veronica sanchez. i am here to support the revised america's cup development agreement and related actions. our union represents the captain on the tug, a company on the waterfront. it is an lbe company. that company has a history of doing construction work on the waterfront, including dredging. we look forward to the opportunity of having our captain man and a ferry charter business that may result from the america's cup, so we urge you to support the resolutions before you. thank you very much. president chiu: next speaker, please. thank you.

>> i am martha, a trustee of the park's conservancy, and i also chaired a board committee. i am speaking today about that thousands of donors to contributed towards the restoration and all of the volunteers that work very hard every year, as well as all of the visitors. over six months ago, we met with the feeling of being the authority, the national park service, and the city of san francisco. all parties agreed that chrissie feels should be in better condition as before the events. we were to to make that a true guarantee. after six months of working with the event of 40, we were able to mutually agree to a concept of a letter of credit from the of the authority as a financial guarantee against any damage to

parts plants. this was approved by many, including nancy pelosi and the event authority. just two weeks ago, we learned that the of that authority role was off the table. instead, the city would be responsible for the operating costs and potential damage and the wear and tear associated with the america's cup events on national park lands. we had constructive conversations with the city since that major change, but we are looking for a guarantee, an explicit guarantee that shows us a clear source of funding as well as a guaranteed mechanism to transfer those funds to the national park or to the conservancy. we must protect it. thank you. president chiu: next speaker. >> good afternoon, supervisors. i am with a san francisco travel

organization. travel is a vital to san francisco, and tourism. last year, san francisco hosted six 3.5 million visitors that spent almost $8.50 billion. that supports many jobs and contributes $525 million to the city budget. these are significant increases over the past year, and we can be happy with those numbers, but we can do even better, and the america's cup will help the city -- even greater benefits in many ways. in the short term, the events themselves will track the visitors that will rent hotels, eat in our restaurants, and otherwise stimulate the economy, but in the long term, the international exposure that will be provided by these events is priceless. i have a calling that goes to

different places around the world, and sheet tells stories about how people will come up and say, "you are from san francisco. that is my favorite city in the world." and she will say, "why is it your favorite city?" and they often say, "i do not know. i want to go." thank you. president chiu: next speaker. >> good afternoon, my name is john. i am a resident of san francisco district six and m eight captain of 8 group. it is private business and take passengers on the san francisco bay. we have taken a lavender people sailing on the base since last june, all of them are excited about the america's cup