amendment without objection? thank you. is there a motion to move this forward? can we do this without objection? thank you. thank you very much. thank you for coming out, everyone. are there any other items? >> no further matters. >> meeting is adjourned, thank you.

>> let's call the meeting to order. >> [roll call] item to -- approval of minutes for the april 4, 2012 meeting. >> so moved. it all in favor. >> item 3, public comment on executive session. no one here. item number four, executive session. so moved. >> conference with legal counsel and real property negotiator.

>> i move that we disclose the commission unanimously approved the settlement of the existing litigation matter described in four4a on the terms described ie settlement agreement filed secretary the commission. >> second. >> all in favor? reconvene in open session. >> please be advised the use of cellphone, pagers, and at similar sound producing devices are prohibited at this meeting. please be advise the chair may remove anyone from the move -- from the room responsible for using similar sound producing devices. be advised and member of the

public has three minutes to make permanent public comments on each agenda item unless the port commissioner adopts a shorter time on any item. the executive director's report. >> good afternoon. welcome to the port commission meeting today. i have a few items to report on. first is a novel one and a very exciting one. i'm sure many of you have read in the paper about the unique attributes of a certain high- school principal at mission high who has gone out of his way to uniquely encourages students to improve their test scores every year, which is probably you music to the ears of many parents. this year, he boldly decided if they improve their test scores, he would figure out how to get for them a dinner dance crews on the san francisco bay. they met this challenge salon and left him with the challenge of raising the funds to

accommodate this dance crews on the day. today, we are pleased to have the principle with us, the man i'm talking about. he has been joined by a number of view who joined the port of san francisco to contribute to the fund-raising for this amazing event and before he comes to the podium, i would like to mention who those are -- horn blowers dining and yachts, or the cruise will take place this coming saturday afternoon, the shoat -- san francisco ship repair, san francisco waterfront partners and the san francisco giants. they're joining with the port of san francisco to make this happen. we're pleased and proud to enhance the lives of students in san francisco in any way we can and we appreciate the work. if i may, if you could come to

the microphone please. >> thank you very much, commissioners for allowing me to speak for a minute. and the principle of missionize school, the very proud principle of michigan school. i've been there for 11 years, starting as an english teacher that moved through the council or department chair and i've been the principal for the last four years. i think it is the single most the first school in san francisco. every community you can't imagine is represented and that's our range of incredible, pitiful students from every walk of life. but we have had some challenges, particularly around test scores. three years ago, along with other things we're doing around community building in getting kids focused on college, we haven't 85% rate of getting students except to college. three years ago, the challenge

was if your test scores go up, i will get a mission high-school tattoo. low and behold when we got the results, had to turn to my wife and say which arm? she is over here and mission is over here. i won't show you, but i think there is an article. the next year, we said if your scores go up, we will find a famous chefs to cook a meal for the school. scores went up by 70 points, which was huge. we contacted charleston, -- charles than and some others and they came and cooked a meal for the entire school last year on the field. it's always a cycle. at the end of last year, the

challenge was if scores go up, we would find a boat for a boat dance. there is a second place and third-place. second was i would each 25 worms if i couldn't find a boat and we would have a fair on the field. scores went up and we've had almost 100 points in three years, which is by far the highest in the city. i thought we would never find a boat, so i was truly about to eat worms. lo and behold, monique, peter, and brad came through and the horn blow or and they heard about the story and i talked to my community coordinator and within days, people were jumping in to say we want to support this effort. i want to thank the port, peter, brad, monique, the giants, the horn blow or, metro cruises, the san francisco shipyard and the water from partners because they've come together to support the kids and

i have to tell you i left, kids or a look tralee running down the stairwell because we are distributing the tickets and they are so beside themselves with excitement. we are going to go on the water? it's a beaut. we're going on the water. i promise you. if you want to wave at us as we take off at 5:30, please feel free and come and visit mission high school and i will show you around and show you are beautiful campus, are museum, and our beautiful students. thank you very much. [applause] >> i would like to echo the thanks to peter and all of you who are here today who contributed. it is a great thing. when you are here friday night, keep a lookout for the coral princess who will be here as one of our cruise ships. going back to lead bit in history with respect foreign

trade zone, we have had a foreign trade zone at the port of san francisco since 1934, which is a very long time. we were the third foreign trade zone ever found in the country and we have been operating the foreign trade zone ever since. some years ago, the port of san francisco took over the operations of the foreign trade some. we are holding a seminar on june 7, next door at pier 1, from 9:00 that will help folks understand the foreign trade zone and how that might work for them. it will provide attendees with the understanding of the program, how they can compete in the global market, and give them an application process and show them the cost benefits of participating in the foreign trade zone. for those of the who don't know, the foreign trade zone was established by congress in 1934.

goods coming in our duty free until they leave the foreign trade zone. you can actually have them land on property -- there are thousands of them across the country. first at ports and expanding to airports. we are hopeful that organizations ranging from import export companies, brokers, distributors, it sector will come and join is on june 7 for a half-day seminar. next, i would like to announce we are proposing to hold a special port commission meeting on may 16, next wednesday, at city hall in room 263. the purpose of the meeting is to hear the various documents that would form the project known as 351 washington. the holding -- the hearing is dependent on whatever may happen during the appeal hearing the

night before at the board of supervisors. but we will be holding a special meeting on may 16 and hopefully moving forward on a project we have been pursuing for a very long time. next, it's very exciting -- we grappled for a while as what to do with the amazing grain silos that grace our waterfront east of third street. after all lot of very thoughtful ideas, we have landed on an idea to showcase them with public art. they have seismic challenges which make it hard to get on them and pay them, but with electronic art, this is a way to enhance and beautify those silos. through the arts commission, there's a request for qualifications that has just been published as of this past friday. the request for qualification

seeks an artist for the public art project at the port. the qualification of requests are due july 9, followed by a more formal proposal process with the artist selected in november and hope of having a new art in place by the fall of 2013. funding is coming from the ports southern waterfront beautification fund. this is our first beautification project of such magnitude. we are excited about it. i think to david has spearheaded this and it's something happening in great city around the world and our very own city hall was lit up almost a year ago for one of the big trade shows. more exciting news -- you may have noticed a plethora of cruise ships, including the celebrity century. we will have nine cruise ships in port in the next week.

several are princess cruise ships that will be primarily at pierre's 35 and pier 27 is out of use right now. but we're still managing to service the cruise industry so we are proud and excited of that. in addition to having ships up and down the waterfront, we will have the golden princess in dry dock beginning thursday, may 10 for a 10-day retrofit and that it will sail back to pier 35 where it will reload. on mother's day, we have a triple header of princess ships. the star princess will be at pier 35 south with approximately 2600 passengers. the island princess with another 2600 passengers and a fourth ship in dry dock. we think that's a record for the port to have for princess ships at once. the only other reports that

possibly have had that experience might be for lauderdale or one of the caribbean ports. this is a big coup for us that we are very excited. we will and with the disney wonder which will be making her first cruise call of the year at pier 35 south one week from wednesday. it will be a very busy week and the maritime staff will be on call working constantly. as a result of the ships being in, there will be street rerouting from 6:00 until 2:00 to facilitate getting the passengers and supplies on and off. we are proud and my kudos to all the maritime staff for its great achievement. i hope you saw the announcement that for the first time ever, princess cruises has decided to home port a ship beginning one year from now in san francisco

for a full year. that is terrific for us. we did not ascribe to the "if you build it, they will come close "but it's exciting to know the new terminal has attracted such attention and will have a home ship here in 2013. i hope you quickly booked your cruises. it will go to alaska, hawaii or the coast. that is my great news on the cruise calls. lastly, i want to mention we have the annual budget hearing at the board of supervisors. we will have our budget hearing two weeks from tomorrow on may 23 and there will be a second hearing if necessary on may 31. we invite everyone to come and support the efforts of the port. this is a difficult budget year for everyone and we are no exception to that. thank you very much. that concludes my report.

>> any public comment on the executive director's report? >> item 8a, to accept and expend for the metropolitan transportation commission, real- time grant program funds for security improvements at the port of san francisco. a request for authorization to reward construction contract for pier 33 and a half improvement project not to exceed $2,835,000. an authorization for a contract contingency fund for 10% of the contract amount for a total authorization not to exceed $3,118,500. their request for authorization to request a contract modification, round house to heating ventilation central

plant upgrade project. to extend the original contract duration by an additional six or seven days and increase the original contract amounts for an additional scope of work. a request for approval of first amendment negotiation agreement for san francisco water from partners to a delaware limited liability company in connection with the development of seawall located on the embarcadero adjacent to the washington park to extend the term to of over 31st 2012. >> so moved. >> second. >> any public comment? all in favor? resolutions have passed. >> informational presentation under revised proposal for the

lease and development of seawall at 337 pier 48 adjacent to at&t park. >> a good afternoon, commissioners. on the project manager for the seawall at 337 development projects. it is my pleasure to begin this presentation describing the revised proposal for the sea wall lot 337. in september of 2010, the court entered into an exclusive negotiation agreement for the next use development of the lot and pier 48 with seawall lot 337 associates which includes the san francisco giants as a partner. there is a two phase approach. phase one allocates up to 30 months for the parties reach agreement on a party plan and financial terms culminating in a term sheet approval by the board and the port.

phase two allocates three years to complete the entitlement and permitting process, resulting in a disposition agreement and construction of the project. the giants have completed 5 of 12 or 42% of the phase one benchmarks with a remaining seven benchmark scheduled to be met over the next seven months. pursuant to this, on march 15 of this year, the giants' submitted a revised proposal describing an excuse program that balance is residential, office, retail, exhibition, and parking uses distributed over a network of 10 new city blocks. all was in a sea wall lot 337, the parking lot adjacent to at&t park. the combination of uses will evolve as the project moves forward to meet market demand and reflect community and regulatory concerns. port staff is working closely

with the giants to review and critique the revised proposal. our combined efforts this spring and summer will produce a comprehensive term sheet for port commission review and approval this year. recognizing the key role of community input to date, staff and the giants will continue the outreach to the waterfront advisory group, the mission bay citizens advisory committee, and appropriate regulatory agencies. i would like to introduce jack baer from the giants to provide an overview of the proposal. we will be available afterwards should you have any questions. >> thank you. i'm going to see if i can get the slide presentation to work. good afternoon, members of the port commission.

i'm the senior vice president of the san francisco giants and i'm the point person on this project for the giants. there are some colleagues of mine i would like to introduce to you today. the project is being done as a joint venture with the san francisco giants and john is with us who works with the joint venture. fran worked for the boston red sox improving fenway park and the area around fenway park. many of the know karen, she is one of the preeminent land-use planners and architects in the bay area and has done projects around the united states and the world and we're happy to have her on our team.

today, we find ourselves in a very exciting spot. we survived the economic downturn, the real estate market in san francisco is recovering, and we are ready to move full speed ahead. over the past year, we have conducted extensive due diligence on the site conditions at sea wall lot 337 and pier 38. technical, environmental, structural, marine engineering and others. our proposal is no longer conceptual in nature but firmly rooted in reality. we are fully engaged with port staff and working diligently on almost a daily basis on the project. you will find us several times a week working with phil, jonathan stern, and many others as we tackle all the issues posed by

such a complicated and exciting development project. we're also working with the mayor's office of economic development, housing, the planning department and many other city agencies because the project of this magnitude involves a lot of coordination. our collective goal is to reach agreement on a term sheet for the consideration by the end of this calendar year or hopefully before. we are in the process of reconnecting with many stakeholders that have an interest in our project. regulatory agencies such as the state land commission and the conservation commission, neighboring businesses, neighborhood and building associations, community advisory groups such as the central waterfront group. and a citywide organizations and so forth. our revised proposal inc. many

of these suggestions made by port staff and advisory groups, neighbors, and community leaders the route the first several years of this project. we were asked to do many things. first, create a major waterfront park that celebrates the day, that is activated and safe, sheltered from the wind with maximum sun exposure and opportunities for recreation, contemplation and wildlife. second, to create additional open space from within the project itself for residents and workers to congregate. and open space as opposed to a visitor open space if you will. 3, to differentiate mission rock from mission bay. while respecting the street

grid, and being mindful of adjacent land uses, we were told over and over again that mission rock should be more urban in character with a diversity of building types and heights. the pedestrian oriented with a more active street life and energy. be a public destination from within mission bay where residents, workers cannot visitors can hang out and enjoy themselves. we are encouraged to build with some density, appropriate but to produce the desired economic benefits to the port and produce excess increment to fund the historic waterfront open space needs. fifth, to create a flexibility of uses on certain parcels to respond to market demand and accelerate the completion of the

entire project is faced with economic uncertainties are obstacles we did not envision from the outset. 6, concentrate retail, home grown shops, galleries and the like in locations that are most likely to be successful. not in every single block and not in every single corner because we don't want vacant retail store fronts. we want to concentrate them where they will be as successful. those places would be along the china basin park, along mission rock square, and connecting the parking structure with the bridge. seventh, we want to create a balanced and thoughtful approach to transportation planning. the ballpark exists and as demands and the new development will have demands.

but encourage the use of the public transit resources and other modes of transportation. finally, we are asked to incorporate public trust uses. the provision of berthing for ferries and water taxis, the creation of natural habitat areas, recreational water uses, the establishment of visitors serving retail. but also appealing to san franciscans themself and enhance the blue trail and green way. let's talk a little about the revised proposal. you will see some of the values expressed in the different slides and discussions. mission rock consists of seawall lot 337. it also consists of pier 48, the

northern portion of terry francois boulevard and the existing park. 11 building sites, to public parks, and a refurbished appear. is an important connection for mission bay downtown, a more public view of the city. within the site, we envision 3.5 million square feet of built space. approximately 1.7 million space -- square feet of office space, 650 residential units, one under 25,000 square feet of retail and 8 acres of open public space. parking as well. the development has smaller

block sizes and narrower streets to look and feel more urban, lively and pedestrian- oriented. this graphic shows you that in effect, are building sites are half the size of a typical mission bay building site. they're more streets to penetrate, smaller footprint for the building, much more human and pedestrian scale. the mix of uses where you have offices and retail down below, parks, walkable streets are made it to maintain a vibrant street life during the day and night. we intend to hold the property long term and maintained parks and public spaces so that they are clean, attractive, and inviting. china basin park. more than 5 acres, it is a destination park along