have learned in my life that change is inevitable. it can be quite positive when guided in the right direction. if you were to allow this tiny little spot to become a museum, it would be a feather in your cap. you will always have the money, the exorbitant l.a. riot, but the art, the stairwell, the whole thing up stairs, the old expression about artists must be told. the great depression really did happen. it affected my grandmother and all of us here. i believe that there is no interaction here. this place should have museum status. thank you so very much for your time. >> thank you.

>> i have lived on telegraph hill for 20 years. i have been very involved in the pioneer park project, which has mostly to do with the landscaping. trying to make sure the transit -- the trees get trimmed in a reasonable way and things like that. i have also been on the sidelines, observing the process of selection of the concessionaire will last seven years. i think this is the first time we of, with someone i could really support as a concession there. i think terry grimm does have the right quality. i do agree about the character of the murals. i think we have to find their way, with an whatever framework, that those murals are treated as a museum-quality. i do not think that responsibility can be entirely assigned to a mr.grimm.

it is the responsibility of the art commission, as i understand. there are some aspects of the proposal that need to be worked on. i think he is a great choice. he is a responsible person that goes well with people. after this decision is made, if it is made, in addition to introducing him to the public, which is the responsibility of the department to engage the public in the terms of the concession, because there is, as you know, great controversy about everything we do. and there is great controversy about the events being held in the tower. i am not sure they really bad enough to the revenue to consider having them in the inside of the tower. he might consider having some outside. the public needs to be engaged in that. if you do not, someone will put

it on the ballot and we will have a referendum. that is the threat i get from my neighbors all the time. i encourage you to take it seriously, to move ahead and be strategic. the other thing is the $1.7 million the mayor has allocated for taking care of problems. we need to plan for that. we need to know how it will be spent for the future and be serious about it. thank you for listening and goodlatte. -- and good luck. >> i have known terri for about 15 years. i sell all of trees. -- olive trees. his scooter store has a very

large parking lot. he is a businessman, so i told him, how about if we put a few olive trees outside of the parking lot? he said, i cannot do it. i said, what you mean? we would just put a nice tree for landscaping and nobody will know. and then we can still do it. he said, i just cannot do it. that shows you that he follows rules. i think that is very positive. on top of that, i have known him and his family about 15 years to. they are a family that is very creative. very respectful. i think there would be the right people to take whatever exists already and take it to a better level for the people to enjoy the tower anyway.

>> grazie mille. >> good morning grit i am here today representing two different groups and urging your support for mr. grimm. i am associated with his wife as part of the oyster bar. i am also asking your support for the underlying plan to operate coit tower concession and the related activities in a very reasonable manner. that is a bit of it the -- a bit of an elephant in the room today. mumse has about 250 businesses in the castro. the venerable cliffs variety store and steve adams of

sterling bank, also the president of the small business commission. they both had other commitments but could not be here today. you have, in your packages, and april 30 letter that confirms mr. and mrs. grimm's operation of the oyster bar and its quality, innovation, and community support. i am also here with my buena vista neighborhood association hat on. that group has about 400 currently paid members representing over 400 households. the castro district is the preferred place downhill from buena vista for miami -- for member -- for many of our members to eat and shop. certainly, the anger oyster bar.

we can confirm anchors excellent credentials in terms of quality and long record of community respect and involvement. we ask your support. since there are a few seconds left. i have to recollect on a personal visit, showing some visitors from out of town around town. we went up to the tower. what a disaster. it is an embarrassment. it makes fishermans wharf look like bloomingdale's. i know terry and his associates can do a much better job. i urge your support. thank you. >> good morning, commissioners. i am davy crockett, a san francisco realtor. one of the nice things about my job is that i often get to take

newly minted san franciscans on an initial tour of their town. coit tower has been a wonderful place to start out. killer views, stories to tell about so many different things. the inside of the tower, part notwithstanding, has been underwhelming. and the commons that i have gone from people, why do they let that happen? i am happy to see that you are all making a move to change that. adding something like the oyster bar to the mix of the tea garden, crab cocktails, pink popcorn and now charter at the towers of like a runner -- like a wonderful thing to me. every property that they have touched has come away better for it. i really urge you to support

them as concessionaires. if they could make a decent profit doing it, the city will be better for it. thank you very much. >> thank you. >> thank you, commissioners. i appreciate the opportunity. to those members of the operations committee, i apologize for repeating some of my comments that i may be for at the meeting on june 6. i have not changed my position in support of terry grimm as the new choice for concessions. i applaud the department's success in unanimously selecting the staff choice.

i believe he will bring a fresh approach to the management of the towers concessions, including a sincere commitment to appreciate, addressed legitimate concerns for the towers are work, upkeep, revenue needs, and neighborhood residents. as a 35-year telegraph hill resident, a former member of the board of the telegraph hill dwellers, i have long been -- a supporter of the tower. i organize the 75th anniversary in 2008 and i am still sitting out for 2033, for the centennial. i continue to serve on the pioneer park project. i called the department's efforts to address the need for change and i encourage those who are rightfully pressing for more protection in concern for the preservation of this invaluable historic monument to give mr.

grimm the opportunity to demonstrate his commitment. he may have a monumental challenge to address these legitimate concerns, but i believe he is up for the challenge. thank you very much. >> thank you. >> hello and thank you, commissioners, mr. president, and also, management. my name is patricia. i am one of the few that has been there longer than anne or ken. we have been on telegraph hill since 1934. i completely support the choice of a mr.grimm. his history speaks for itself and i will not repeat it. i also agree with everyone else about the fragility of the tower

itself and its art. also, the partnership and thank you all for the work you do. it is a dilemma living up there. we have the traffic problems. a good deal of that needs to be considered in the rfp. i think the rent is high. if i might suggest to give this gentleman a break so his priorities could really be met in terms of staffing, which is so critical. i am probably too nervous to go on so thank you for your time. >> is there any other public comment on this item? seeing none, public comment is closed. commissioner low: to me, in this

process, i look at it more as what is the process and bring to this selection committee is very reasonable. we have heard from the department. it has taken five years to get to a rfp. there was a lot of community involvement, including the telegraph hill dwellers. outreach for solicitation of bids. a diverse selection committee. i think the process leading up to the selection was fair and reasonable. additionally, what i am focused on is was the selection correct? he outscored the other bidders over 2-to-1 in some cases. i do not hear from any testimony that the selection was somehow an abuse of discretion. i think i would support that the department sit down and

authorize the department to begin lease negotiations. the only question before us, questions about whether there can be a coexistence with the community, i think that will be fleshed out in a lease negotiation, together with a mural protection plan. i like the suggestion of more of an art history approach. in addition to engaging in a program on local, sustainable businesses. i do think that his business proposal is not before us. authorizing the department to sit down and commence lease negotiations, engage the public , is consistent with the past -- even with the recent passage of proposition v. >> i could not have said it any better than my colleague just said it. the only thing i will add is that even though the item before us is the negotiating --

just the negotiating of the contract and rfp, i just want to say that i am really heartened by his selection. having saw -- sat on this commission, several other of my colleagues, i think it goes without saying that he brings sensitivity and sensibility to this position. i am greatly looking forward to that. i also want to say i am really pleased to see the community report. your comments carry a lot of weight in terms of making sure the community feels it is the right choice. lastly, i would say there is a lot of love. not only in the form of this concession selection, but also the $250,000 that comes from our department to the arts commission for the mural restoration, it $1.5 million

from the mayor's office, and the 1% from the contract that will go to the mural restoration. a lot of good intention coming down at the same time as this concession selection. i am heartily agreeing to move this forward. commissioner bonilla: just for my own sense of well-being, i would like to ask staff to -- if they would please shed a little bit more like on the special events and what type of events we would be having and also what kind of special efforts would be made this time around that we have not made in previous years in terms of protecting the girls and making sure that it is not just another party atmosphere.

>> there were a few questions in there. i will answer what we would do to protect the murals. we are awaiting guidelines from the commission for all activities that happened. these guidelines will instruct us on how to do everything from allowing tourists to go up there, go to the top of the elevator and view the galleries. the specific measures that we will take to protect the mural and the tower in all this business. we are eagerly awaiting guidelines from the arts commission. on protecting and preserving our public arts collection. the specific question of events is one that is obviously the heart of the proposition the question. we will be looking for direction from the board of supervisors.

the city attorney can answer more questions about how policy measures are implemented. i think it would be fair to say that, as we move forward, all these questions about how the concession will be operated will be part of a robust discussion with the board of supervisors and the community. obviously, with the arts commission, department staff, and the concessionaire. these are exactly the type of issues we want to have. we will have them resolved when we come back to the committee with a lease. commissioner bonilla: good. i think those are excellent answers to my questions. president buell: let me observe that i want to congratulate staff. i think you have done a terrific job in the outreach and negotiations thus far. as has been pointed out, what is before us is the authorization

for staff to negotiate a lease with mr. grimm. we never unanimous and glowing testimony about his talents, organization, and reputation. i think that speaks well of the selection process. what is not officially before us but is always before us is the proper care and maintenance of the assets at the tower. none of us will have the perfect answer. i think the message is clear to staff during the negotiation process that we need to do everything in our power to protect those murals and enhance the visitor experience there. with that, i would entertain a motion. moved and seconded. all those in favor? opposed? hearing none, it is unanimous. thank you very much. >> we are on item 12, union square broccolis agreement. -- bragh lease agreement.

-- garage lease agreement. >> good morning, commissioners. the item before you is a lease amendment for the union square garage lease with uptown parking. union -- of town parking has managed the garage for decades. in 1989, the department entered into a lease that gave them not only a lease for the garage, but also they were allowed to bond, to undertake certain improvements at the garage and the park above. this is all the 2001 renovation

of union square was completed. the mta is in the process of refinancing a lot of their long- term debt, taking advantage of the current lower interest rates. and they are moving forward with a proposal that i believe this commission approved that would allow the mta to issue $30 million in bonds for various garages on park property. to repaid the existing debt on those properties and also undertake limited improvement at each of those properties. as the existing lease requires 90 days are after the bonds are repaid, the lease would automatically terminate.

we are moving an amendment that extended that to allow uptown to continue to operate after the bonds are repaid each month. they are working to renegotiate an amendment that would allow them to stay until the end of their term and still perform a valuable services they do for us. refinancing on union square alone would save us $50,000 a year on interest payments, which is a tremendous help to the department. are there any questions you might have? i've slept see if there is a public comment. >> is there any public -- >> see if there is a public comment. >> is there any public comment?

>> page 3, park maintenance expenses. >> this is of the existing?

>> this is the lease. >> i am assuming it is current. >> this is the current draft of the proposed new long-term lease, so page 3. >> it is the definition of maintenance expenses. >> which refers to an exhibit curator >> -- to an exhibit. the question is who is doing maintenance right now? >> the maintenance is being shared between employees and services for certain maintenance activities on the plaza. there will be no change to that as far as this amendment. essentially they provide an

added level of maintenance. >> just a landscaping? >> i believe the way it functions is the department as the landscaping and the janitorial work is done by mjm. >> i believe in section b of exhibit b it says the city should continue to provide landscaping and other maintenance services to the park to the same extent it has provided prior to the completion of renovations. >> is it completed, or not yet? >> i believe i might have to rely on stephen lee to answer detailed questions about refinancing. >> i believe it is for next month.

>> the mta is currently in the process of reassuring. the expected closing date is july 11. >> less than a month in this year. when is it completed? you will enter into a new lease? >> the existing lease provides for a buyback provision, where the city has the ability to pay back the debt, but once that is done, it triggers a 90 days' time in which the corporation has to vacate the premises, so the corp. expressed their desire to continue as a non-profit and oversee the garage, sir 90 days going off of this facility as well as provide for month to

month while negotiating a new lease. we would have to go through an approval process. >> when is your estimated timeframe for when you can move from month to month to long term release. >> much of it is 90% with some modifications that staff will complete as well as including the supplemental parker agreement and some adjustments to that as well, so i would think in the next 90 to 180 days a. >> thank you. >> thank you. seeing no further questions, do we have public comment? did we ask for public comment,

and i was asleep? >> we did. >> is there a motion? >> aye. >> it is unanimous. >> we are on item 13, the general public comment continued. members may address items within the jurisdiction of the commission said do not appear on the agenda. do we have any public comment? seeing none, public comment is closed. we are on item 14, commissioners matter? >> seeing none. >> any public comment? public comment is closed. any new business? >> no. >> any public comment? public comment is closed. we are on item 16, communication. do we have any public comment? seeing none, public comment is closed, and we are on item 17,

adjournment. >> i maintain a motion. >> second. >> moved and seconded. >> we are adjourned. thank you very much. >> good morning. today is wednesday, june 20, 2012. this is a meeting of the of the appeals board. like to remind everyone to come off electronic devices. the first item on the agenda is roll call. [roll call]