>> thank you. good morning, everyone. thank you very much. as many of you know, i'm a person that doesn't like a whole lot of drama. but i do want to make sure that we take this opportunity to enjoy. this budget is one that's important to all of us, it certainly is one to me and one that reflects a lot of great work. first of all, let me thank everybody for coming this morning. certainly board president david chiu for helping me co-host this and carmen chu and her work with us already started and will help guide us, along with board president david chiu on all of the hearings that the rest of the board will have.

i want to thank each and every member of the board of supervisors as well. you've been weighing in and we've been creating a different dialogue on the front end to make sure that all of our constituents know what we're doing, more transparent, and ultimately where our values are. i also want a big shout-out and thanks to everybody in this room. there's a lot of department heads and commissions and labor representatives and representatives from our non-profits and community members as well. thank you for engaging us in this really dedicated six-month process. i want to go back to the very first neighborhood budget hearing that we held about almost six months ago. it was one where i was asked at the very beginning, what does the budget mean to you? and i wasn't the only one. there were several supervisors that were there, and we all said pretty much the same thing. it really is a reflection of

our values as a city and it's one that we want to work hard at, but ultimately it is who we are and it's a combined effort here, a collaborative effort. so it still is that way, and you'll see from the highlights that we'll be announcing today, as reflected in this budget, it still is a reflection of all of our values. so good morning, everybody. thank you for joining me here today. again, thank you for board president chiu and budget chair carmen chu and all the others that i've identified here today. i also want to say at the outset this budget reflects countless hours of work. a lot of work behind the scenes. in addition to all the neighborhood budget meetings that we had, there were numerous, numerous staff meetings. kate howard's done a wonderful job with her staff. they've met with all of the

different departments -- [applause] this is her first full year budget working with us and she's done a great job and her staff has done a great job. it isn't just putting numbers together, it's listening to each of the finance personnel from each department, it is engaging in the numerous meetings that we have with community, it's engaging with staff of the various supervisors, the non-profits. we had special meetings help, it was health and human services and housing and homeless advocates and others. she was there and her staff was there at every turn making sure that we listened and it reflected in both number-crunching and challenging what the priorities are and so forth. also want to give a shout-out

to steve cava. steve, wonderful with all your work. [applause] it's not easy. you and micki callahan, it's really not easy at all to face a year when there's 27 contracts open, trying to face everybody in the room, trying to make sure that we can make promises we can keep. having been a former employees relations director, i know that keeping promises with our labor representative is critical to building trust and to make sure that we carry out and we honor all that they do every single day in carrying out services for us. to all the department heads and your wonderful staffs, thank you. i also want to make sure i acknowledge all of our labor unions, all of our representatives. for years you've worked with us and sacrificed and bemoaned the

bad budget years, but you've stepped up in every occasion. for the department heads and non-department heads who we've shared challenges with, thank you for sacrificing so many years. and now we get to, i think, a budget that has some relatively good news and a good foundation. this year we begin the hard work of presenting the city's first two-year budget. and we began that year with a $263 million deficit for our general fund. and then the coming year, the second year of $375 million shortfall. that's what we faced at the very beginning. but because of the fiscal discipline that we put in process, a discipline that's reflected in the great work of ben rose enfield and his staff and the controller's office that keeps reminding me of the credit ratings of our city and that we must make sure that we

do things in a very solid financial way, we made investments in job creation and we made commitments to reform with that guidance. now san francisco's economy is recovering and reserves are going. in fact, during the last nine months the controller has reported that our revenues were $172 million more than projected. this is good news. this is good news, but it did not come without commitments, without sacrifice by everybody and all the groups represented in this room. i would like to again thank owe employee unions for working with us to find a common goal, saving more than $28 million in your contract negotiations with us. i'm happy to report that i'm presenting a responsible and balanced two-year budget. while we spare the city the deep cuts we've experienced over the last several years and one that i present to you in a

san francisco economy that's recovering, in this budget you will see investments. investments that ensure that people who live, work and visit our city feel safe, investments that protect our social safety net that supports seniors and youth, low-income and working-class families, investments that support our neighborhoods, our infrastructure and our commercial corridors. this budget reflects a lot of collaboration and partnership with our san francisco community. one thing we agreed on early was that in a time of state and federal cuts, protecting our social safety net is more important than ever, and in this budget i've rejected all service reductions in our health department and human service agencies. [applause] s i've included full restoration of federal cuts to programs and services that

serve people with h.i.v. and aids. the loss of redevelopment has been a severe blow to our city, especially for this first street corridor. so we will invest in economic initiatives in the heart of bayview to stabilize businesses and attract new ones. [applause] we will also continue our investment in central market and especially sixth street, where the elimination of redevelopment has left a gap in services. with our community partners and including the very spirited arts community that's been so wonderful in helping us lead that effort, we'll support businesses in that sector, attract new ones, and keep the

area clean and safe. we will also invest in the youth of sfsk and in their education. i will propose releasing the $6 million in rainy day funds to support our public schools, to offset the state's deep cuts to education. [applause] most importantly in this budget we are putting san franciscans back to work. you've heard me say on many occasions recently our unemployment rate dropped from 9.6% in early 2011 to 7.4% today, our lowest since 2008. [applause] we, as a city, along with our business partners and every neighborhood, we created 22,500 net new jobs in san francisco in just the last year. [applause] that's good. that is really good, but we need to do more.

with this budget we are continuing to invest in strategies and incentivized job creation, training, and place our residents for their jobs for the 21st sent re. we are creating a climate that gives entrepreneurs and investors confidence in our city, allowing them to work with us to innovate, grow and create jobs, whether they are in neighborhoods, small businesses or tech start-up or a thriving global headquarters. in neighborhoods, we are more than doubling grants available to small businesses, and we are including $4 million for neighborhood commercial districts through our new invest in neighborhood strategy. that includes job squad and the recapitalize the small business revolving loan fund. we are bringing staal to the neighborhoods -- city hall to the neighborhoods where it belongs, to support small businesses. my proposed budget includes $4 million in smart capital

investments and $441 million in smart capital investments in our city's 10-year capital plan to improve and invest in the city's infrastructure. [applause] over the next two years we'll invest in and improve or water system and continue investing in our waterfront. we will also continue to invest in our parks. and i've joined the members of the board of supervisors to introduce $195 million bond measure to keep our parks clean and safe. [applause] all told, over the next two years enterprise departments will spend more than -- will actually support more than 8,700 jobs in san francisco by infusing $1.3 billion into our

local economy. as our economy grows and as we add jobs, we must redouble our efforts to expand housing opportunities and build more housing for people at every income level. i get it. i know there's anxiety out there, because rents are start together creep up again in every neighborhood as our economy recovers. but the answer to scarce housing and rising rents is not to stop growing our economy or creating jobs. that's why we proposed the housing trust fund measure for this november, to create a permanent source of housing and revenue to fund the production of housing at every level of our economic spectrum. i am pleased to share with you, too, that my budget also includes a six-year police and fire hiring plan. [applause] this hiring plan for police and

fire will train the next generation of san francisco public safety personnel. we are planning for anticipated retirement, reducing overtime and making sure our public safety departments are appropriately stand. mow, of course, this submission of the bubt is not the end of the process. i've looked forward to working with the full board to ensure that our residents receive quality services while we balance the budget and continue in our economic recovery. i again want to recognize supervisor carmen chu and the board of supervisors for their steadfast leadership and commitment to building a collaborative process, backed up with our board president, david chiu. thank you steve cava, chief of staff, thank you budget office, director kate howard, and to best rosenfeld, thank you to you and your wonderful staff and i will advance, thank you harvey rose, for his work he'll

be doing. this is very less dramatic presentation, i know that. but all the work that's been done in a very comprehensive way, and i want you to know that the values of the city are intact, we are moving forward, and we are investing in all of our neighbors in san francisco. thank you very much. [applause] ok, back to work.

>> good morning. good morning. thank everybody for being here. what a wonderful, marvelous day in san francisco. commissioner david stern is almost clairvoyant in such a way. he is a marketing genius. years ago, he came up with the slogan "i love this game." when people say that, you know exactly what they are talking about. they are talking about an nba basketball game. one of its marketing slogans from this season is -- big things are coming. we had a great season. we are having a big playoff run right now. it is more than certainly appropriate for today because

five years from now, there is going to be the most impressive of arena in america sitting right here on the spear -- this pier. i'm not sure there is any bigger news in the nba, except maybe that the warriors got a big man, but it goes along with the whole thing. today is the culmination of incredible vision by a mayor and a group of owners, who are 100% committed to creating something really special for the citizens of the bay area, not only basketball fans, but everyone interested in entertainment. it is rare that a sports team has the ability to impact an entire region. the building of this venue in the country will have positive ramifications on fans far and wide. that is unique, and that is what makes a tremendous day for the city of san francisco, the warriors, and the entire bay

area community. i would like to introduce to you some of our speakers on the day is today. the city's 43rd mayor and the city's first asian-american mayor in the city's history. he is from seattle, i'm from tacoma, and we have that together. he is known as a job as mayor and an innovation mayor for his focus on job creation and economic development. ladies and gentlemen, san francisco mayor, ed lee. [applause] mayor lee: thank you. good morning, everybody. welcome. it is great to be reunited with my long-lost brothers, separated at birth. david lee, his younger brother. i just wanted to welcome all of you. we have a great representation of the whole city family here today. commissioners from our port, staff from our ports, the

recreation and park department, our planning department, we have our board of supervisors from hong all of the different districts. we have representatives from chinatown, bayview, sunset, bernal heights, ever with this city is committed to working with the warriors to make sure we have this i read a billed by the 2017 nba season, and we are very committed to getting that done. the warriors have in the bay area's basketball team for 50 years, and today sets the stage for the warriors to be our bay area team for another 50 years. [applause] all right. it has been 41 years since the warriors played here in san francisco, and in my humble opinion, it is time to welcome them home. [applause] this new sports and entertainment facility will

bay area residents. it will generate tens of millions of dollars in economic growth each year, and games and events will bring people from all over the region. the money they spend will benefit our local economy and our local businesses. this project will be more public transit accessible than almost any other are rena in the nation. it is accessible to bark, and unique, the ferries, and our new transbay terminal that will be up and running in the next three years, making it easier for people from all over the bay area to come to games without driving. this project will also be a responsible development. we're talking about taking a pier that has been the home and host of our ships coming from the military, and international cruise ships from all over the world, canada, and europe, but

it needs a lot of work. it needs major work. it needs cleaning up and strengthening the site and making it usable. we are not developing on any existing green spaces. we will be adding new ones and bringing thousands of people to the waterfront. this project means enormous economic growth for our city. thank you for being here. i'm looking forward to a dedicated five-year joe and peter and all the warriors team. the new revenue we seek to have from this arena and this facility can be used with services for our local residents' needs and public safety. our schools. our whole repairs, public transit, programs for our youth

and programs for our seniors. we look forward to working with you, all of the ownership, and i'm excited, and we are committed, and we look forward to getting this done. thank you very much. [applause] >> our next speaker led a distinguished ownership group in the purchase of the warriors had a record price of $450 million less than two years ago, and prior to owning the warriors, he served as a minority owner -- [laughter] he served as a minority owner of the boston celtics, including when the celtics captain the nba championship. now, his vision is to build a spectacular new arena on san francisco bay. [applause] >> thank you very much. thank you come and mr.mayor.

this has been a remarkable journey for us. we did pay the highest price ever paid for an nba franchise, david. [laughter] david just called me the tire kickers. i do not think he is doing that anymore to. we have had a lasting five months of interaction with the mayor of san francisco, ed and his staff. it has been a wonderful five months. incredibly positive. justa can-do attitude about the project. there will be many challenges, but this next five years will be as big as the relationship we have had over the last five months. [applause] so, as the mayor said, we have just celebrated the 150th season in the bay area -- the warrior'' season in the bay area, and now, we embark on the next eight

years. with the cost of this arena, it may take us 50 years to pay it back. we hope to be here, obviously, for a very long time, right here on this site in this very beautiful city. we put a lot of time and effort into this search. for the last 18 months, we have looked everywhere. we decided what is the best thing for our fans, where do we go, what will be best for our fans at games? how can we make this the best possible venue and team in the nba? we decided on this site. it was not an easy decision. we looked at a number of sites, and, you know, we are faced with a pretty tight timeline. our lease expires in 2017, so we have five years, and it takes probably all of that. it will be a tight timeline, as we discussed. it will take all that to get this done in terms of getting the permits and of that and building the arena.

we are very, very appreciative to the home we have had in oakland for the last 40 years or so. it has been a great community, but what people do not understand is that in fact, our fan base is really the key/50, and we do not release this information all the time, but it is 50% on the west bay and 50% on the east bay, so we are the bay area basketball team, and we had to find the best site to serve the majority of our fans and provide that experience, and we settled at the end of the day on this site right here in this beautiful city. let me leave you with four main points as to why -- first, we intend to build the most spectacular arena in the country. for all bay area residents, not just an francisco, that they can be proud of. and architecturally significant building on truly an iconic

site. it does not get any better than this. we intend to do everything in our power to have a team as well that matches the standard of what this a real is going to be, both now and over the course of the next five years. let's not forget this -- winning -- where is mark jackson? winning remains our number one priority. this army that is about winning, just like the team on the court. -- this i read at jig thisarena -- this arena is about winning. it is important to understand we are privately funding this, and we think that is important. we know these communities are challenged by a lot of different economic issues, and we could go through those. we all know what they are. we knew we could have tried to get some public financing as has been done in other places around the country. the beautiful the stadium we

have gone and seen in orlando, and others. we felt the right thing to do was if we could get the right deal on a parcel of land, a great piece, we would come in and build this arena. i want everyone to understand that it can be done and it will be done. it is going to happen. we are going to be year in 2017, and our neighbors to the south, the giants, have proven that a privately financed been you, a stadium in there is, can be done very well and work for everybody. the third point i would like to make is that we thought it was also very important to have a venue that could be accessible via public transportation. very accessible. not just for warrior games, but for conventions and concerts' and all the other events that will be here. this is not just an urban or basketball. that is -- what? 50, 60 events? i'm not sure of the exact number. 57 or something.

but also all the other events that are year. this is more than just an army that. this is a live entertainment venue, a multifaceted venue that we're going to try to put year -- this is more than just an hour arena -- this is more than just an arena appeared retell, restaurants, a place to eat, a sports bar -- all kinds of things that will be at this site. it will be very exciting. it is going to change, just like the giants changed the on the embarcadero little further, we're going to change this part of the embarcadero for the city forever. thanks to the mayor for coming aggressively after us and bringing us here, and thanks to everyone who helped make this day happen. [applause] than the 57 games? does that include playoffs and nba championships, mark? [laughter] a prominent figure in both the

entertainment and sports business over 30 years, he is the founder and ceo of mentally ill to attend a, a visionary of multimedia ventures spanning movie, tv, sports and in addition to garnering more than 50 academy award nominations, he has become actively involved in the theater business, in recent years in professional baseball ownership for one of his minor league teams, the dayton dragons, has established the all-time professional sports record for consecutive sellouts at over 850 straight games, which is quite a record. he now plans to create the most incredible fan experience in the nba right here on san francisco bay. ladies and gentlemen, the co- executive chairman of the warriors, peter gruber. [applause] >> wow. this is fantastic. i remember growing up in boston gardens, the balcony, and obstructed viewing.