that as an opportunity for revenue going forward. that is all i have to say. >> do we have a list of all current slip holders? >> yes, we do. >> we are going to send out a mailing to all of them? >> yes, we are. >> and e-mail. >> everything. >> that is going to be the fastest way. >> i sent an e-mail to the advocates to work out a date. we will come up with one by tomorrow. we are thinking possibly the first week after labor day. >> there were comments regarding san francisco residents. >> that is a tricky one. we had discussions with cal

boating. we did a quick survey of every municipal harbour in the bay. in san francisco, there are none. san francisco marina does not. treasure island does not. it might have something to do with the loan, which somebody stated has language in it that requires the harbors to be available on an equal term. we are researching that aspect of it. right now, it it seems to be an impediment. we will look at it more carefully. it looks like it is a tougher road to hoe. >> we are not getting the tax increment that people are paying. we're trying to work through with the city on where it is

going. >> do we have guessed birth -- guest berths? >> good point. there is a guest dock that we want to monetize. america's cup boats, they are paying top dollar to use it. we will be vigilant in collecting as much money as we can. >> [inaudible] >> we cannot take public comment at the close. >> the renewable power options. if you could address that. >> the advocates, they talked

about solar energy. it is on our list of things to do. alternative energy, wind energy, it is something we will look at in terms of power in the marina. the harbour office, we need to get the pros and there to look at it carefully. >> peter, you mentioned some of the requirements. are we in technical default today or not? >> boy, that is -- >> we would not want to say yes to that publicly. >> know. >> -- no. >> the requirement is 1.3 times revenue.

we're working with the redevelopment agency to understand the indenture and how much revenue as are defined. the city has bought this investment and it is now principal interest investment. we will be working with the office of public finance. we're looking very carefully at it. at this point, it would not likely result in 1.3 times coverage in the current year if it starts in january. we are going to be working very carefully with redevelopment and the office of public finance. >> ok. thank you. >> in terms of covering the indebtedness we're trying to make up for, what does happen once we hit that point?

>> we will pay off the revenue bonds in four years. december 1, 2016. the have an outstanding obligation for the permit, required capital work that we have not size carefully at this point. it is probably in the neighborhood of $10 million. we need to issue new debt obligations. the cal boating loans go on until 2035, 2036. will be relieved of the revenue bonds in 2016 december. the booklet we need to find a new capital program and set aside for repair and

replacement capital needs of the harbor. that is not in their operating budget. we have a program for those funds. some of the speakers have spoken about wanting to ensure that the net revenues remain in the harbor. we have set up a special fund, looking for the operation to be in the green. we have no anticipation where we would either subsidize or move net revenue to other port operations. it is all retained in the harbor. >> could you clarify for the port operation within the harbor funds and there is no access to the general fund? >> all the debt, the revenue bonds and the loans are not general obligations backed.

they're pointing to the harbour revenues. also, in relationship to revenue bonds, the agency collected interest tax revenue and pay down that debt. they found the rate sufficient to pay back the debt. they're paying interest only and we're working closely with the city to try to assert that those tax revenues should accrue at the harbor. >> ok. i want to make a couple of comments. this has been a very helpful session. part of it is that we're trying to improve our communications and give all the stakeholders a chance to talk to the commission. i want to speak to a couple things.

we will commit to a more communications in meetings. the port commission supports the staff in that regard. we had hoped that perhaps one meeting would be able to resolve these questions. there is no magic about the september timeline. since the rate increase was not proposed until january, we do have time. we will work with the timeline to meet the interest of everybody. we are trying to -- i think all of you understand we have a problem. we need to solve it. we need to figure out a way to solve it together. it is not about -- if we recognize we have an issue and that we are trying to manage the issue with you, we have to figure out how to manage the

change as best we can to meet the requirements we have in terms of what the port has to do. there is no extra funds today to support that deficit. understand what the port is facing. it is not like we had another fund we can go to. this deficit is real. you have mentioned many possible things we can consider. that was the purpose of hearing from you today. we have been through some of these things and other issues, we will not satisfy everybody's concerns, but we hope to get to a point where there is more common ground and understanding of what is happening. the commission supports that and it has been very helpful to hear

from all the today. thank you for coming in spending the time with us today. [applause] i'm going to go back to the agenda. >> item 11. >> i have a request for a five- minute break. we will take a five-minute break, thank you. >> item 11, a second informational update on the june 20, 2012. 29 fire damaged and port response. >> i will ask the speakers to be a little bit briefer in your

comments. >> good afternoon. i and the port architect and project manager for the pier 29 at reconstruction project. in response to the comments about commending everybody working on that project. it takes a village and there are a lot of people who care about it. as reported, we explained we initiated to emergency contracts.

restoration on utilities are on the critical path to eliminate the need for generators as well as to provide power to the terminal as scheduled. during this initial period of we have to approach this project utility restoration.

phase two will be able cadbury construction -- bulkhead reconstruction. they will not be in the area of immediate work. all the work has been performed with approved building permits and exemption under ceqa. further permits will need to be secured for the remaining work. port staff have then and will continue to keep the san francisco historic preservation commission briefed on the project's project -- progress. phase one is coming to a close. to accommodate the america's cup events, port staff, consultants and contractors are responding to a request to meet a march 1, 2003, substantial completion of the reconstruction of the bulkhead through integrated project delivery. port staff will be working with the same contractor along with the san francisco branch of

architectural resources group and their construction conservation arm. this will provide some additional architectural preservation expertise. along with the architectural engineering team, the consultants we have on board. phase three will be completed after the america's cup event. the work for replacing the building in kind are covered by the insurance carrier, aig lexington insurance. a check was delivered for the initial expenses for $2 million last week. the america's cup a village will have -- the america's cup will

have activities located between piers 27 and 29. for the upcoming events, the america's cup event authority has requested scaffolding be installed to conceal the damage during their event. this will be installed next week along with a plywood barrier along the embarcadero. it will keep crowds safe from the damaged area and the construction work. future actions are moving rapidly with the integrated design approach with analysis of the upgrades, code, as well as energy upgrades. these are going to be covered by the insurance policy. i'm available to answer any questions. >> one of our earlier speaker

said it best. thank you to all of you involved in getting this moving along so rapidly. it was very unfortunate circumstance, but a real tribute to everyone who was involved. i am pleased we have so much focus on the historic restoration. >> the temporary, what we're doing to cover up, is it like a facades? >> this is gone to be a fabric that is going to be like a breathable fabric and it is going to have a graphic on it that will be of the historic -- >> it will look to the public like the building appears as normal? >> it is going to be a scaffold. it will be clear that it is a picture, but it will be conveying our thought process, a sentiment that this will be

back. we had a wonderful student intern that was able to produce some graphics off of our original drawing. >> milder question was related to the insurance. it is covering the code upgrades we would need to put in for this reconstruction? >> it is going to be a process of negotiations. we are evaluating the policy. we have a team of people who are working to work out what the applicable codes are, how to approach it, and to work with the insurance company. this will be more solidified in the next update. >> that suggest to me that the two million-dollar check is not the last check we will receive

from insurance. >> far from it. >> do we know what the total cost of reconstruction will be? >> we do not have any estimate at this time. i think we will be producing some in the next couple of weeks. >> ok. >> public comment? thank you. >> item 12. informational presentation regarding police l-15169 with autodesk with a term of 66 months. >> i will give you a quick presentation on police before you -- on at the least before

you. their flagship software is used in the architecture, engineering, construction, manufacturing, entertainment. the last 16 academy award winning films. recently acquired a web based company. it is a company that specializes in do-it-yourself projects. an easy way to understand what they do, it is social media needs the makers movements. they have acquired bad. they have a space need to accommodate. they approached the port. that was a nice phone call to

receive. we decided that pier 9 would be the best alternative. the lease is for about 3000 square feet of office and about 5000 square feet of unapproved -- unimproved shed space. the office has been vacant for some time, about two years. the negotiations have led to rent of about $13,000 per month. rates in line with the port commission approved parameters. it would be increased by 3% on the first anniversary date. they're willing to make a very significant investment in to port property. we are proposing to include 180

date rent abatement. -the key to this lease, the 5000 square foot shed space and they are going to improve it. that is how we have incrementally built pier 9. in addition to that, they've received a rent credit. the credit combined represents of the total project cost about 20%. about 20% is the credits, the rest is investment.

autodesk requested an early termination right at 36 months. if their business line does not work out, they would like to escape police. -- the least. having the alternative of taking all the improvements and stopping is a very good option for us. we have agreed to that. these improvements will add value. the build out, their portion of it will be a second floor. we will get a 5800 square feet, we will get another 2500. i will be back to you on september 11 to ask for

approval. the rent abatement. is not consistent with the port commission approved parameters. all the other terms of the lease are consistent with that. that concludes my presentation. >> public comment? commissioners, any questions? thank you. >> thank you very much. >> request authorization to issue a request for proposals for a restaurant opportunities site located a295near pier 48. >> asking your permission to issue an rfp. this site was formerly run as a restaurant. valdes was terminated in november of 2011. the site was a freestanding

building, about 3000 square feet. the building has sense -- we have every mediated any type of hazardous materials. the goals of the rfp to encourage local business participation, to buy a renovation of the physical building and maximize revenues to the port. following the selection process staff will come back and have the approval of the qualified respondent. stifel engaged in a 60-day exclusive right to negotiate. hopefully, that will conclude in a lease. we will bring that back to for

approval. this probably will be a board of supervisor item given the term any amount of the investment into the property. we anticipate the renovation is minimum a million. we are proposing the initial term could be up to 15 years. i would seek your approval of this item. that concludes my presentation. >> so moved. >> seconds. >> public comment? >> all in favor? >> resolution has passed. >> thank you for your time. >> item 13, new business. >> no new business. public comment on new business? >> item 14, public comment. >> public comment?

move to adjourn. >> so moved. >> thank you.