to air and naught -- nautical lines, a little bit of the opportunity that was proposed last year, there was a proposal in april, 2011 for an operation of a restaurant, the department believes that the marina degaussing station is an ideal area for a restaurant, it is an area that is not well served by food options, the department sought experienced and professional restaurant tour to operate a high quality restaurant to serve visitors. the department convened a selection panel to view the responses of the rfp which consisted of the members of community, the department staff and the port department, the selection panel unanimously approved the selection of wood

fish company for this opportunity, they approved the selection of wood house fish company. a little bit about wood house, they're a family owned business, those of you who sat on the operations committee were able to meet the family today, they have two locations in san francisco, one on fill mer street and one on market street, they're owned by jaim miswho's the father and his sons, dylan, roan and tyler. i wanted to walk you through the negotiated lease agreement with wood house. the term is for ten years with two five year options to extend, permitted use is for the operation of a restaurant at the site. the negotiated minimum annual guarantee is 110 thousand dollars and that would increase

with cpi on an annual basis, the rent would be paid as the minimum annual or 10% which is 10% of gross revenues underand over10 million dollars, we're requires a 20 thousand dollar security deposit and we are proposing to issue a rent credit in the amount of 160 thousand dollars to wood house and this will help offset the proposed 260 thousand in capital improvements, i would like to take this moment to talk about a couple of issues that came up at the last meeting and that was the with the east/west designation of the marina plan, i wanted to present to you a map and this map is also in your packets, we've received a letter from the director of the department of real estate would confirms that the marina degaussing station is ak hull in the east harbor and thus not subject to

the commercial limitations of the west harbor and the department of real estate have taken the coordinates in the state statutes and plotted them on a map which you will see on the overhead. here's the marina degaussing station circled here and it's in the east harbor, i wanted to point that out in something that did come up in the last meeting. as well as the general plan referral, the department planning staff does mrao*ef that this project is compliant and consistent with the city's general plan and there's a next step of approvals in this process, we were in conversations with the san francisco planning department which will give a planning referral prior to future approval for this project. hours in operation would have proposed to operate a high quality, affordable seafood restaurant seating for up to 25

people indoors and 50 people outdoors, it's from 11 a.m. to 7 p.m., they have the option to open for breakfast at 7 a.m. should they determine a demand, the closing hours will be reviewed at the first six month of operation when the department can analyze the effects that this operation has on the surrounding area, they will measure the impact of the surrounding community, that's failure to follow hours of operation, impact of lighting in the surrounding aria, garbage from the restaurant and any health violation that is are reported. the department has been meet witching -- meeting with the community and there have been a number of issues that have come

up, amplified sound and aggressive signage, in response to those neighborhood concerns, the department is requiring the following from wood fish house company, to install black out curtains on south facing windows to reduce light emissions from the restaurant and all exterior lighting must be neighborhood sensitive such as base flood lights in order to minimize the lighting, no amplified sound, and only minimal signage should be permitted as allowed by the general manager, additionally would have must installed historical signage on site that clearly explains the historical use of the building. staff is also negotiated a maintenance fund with wood house which would be in effect in year six of the lease agreement, the maintenance fund would be the lesser of 1% of gross revenues or 20 thousand

dollars and that money can only go back into the repair of the building. the maintenance fund will not be used for regular cleaning, maintenance or for improvements to a replacement of less see's property and the maintenance fund will help [inaudible] the degaussing station without putting strain on the department's fund. i wanted to show you a couple of photos here, one is one looking west, looking east and the other is from the bay, the building is fenced off, it has been vacant for decades. after seeing those photos, there's a lot of capital improvements that need to go into the building that will bring it up to code. they are propose lg to put 650 thousand dollars into the building, they'll stabilize the buildingfinger in addition to moving the building about 13

feet south, this is from the bay conservation commission who we did have conversations with, they like the idea because it will increase shore line access to the area, right now, you have to walk around the marina degaussing station to have a path of travel, moving the building south will maintain a path of travel along the shore line. it will be performing all new carpentry, windows and door, they will be adding wind screens for a outdoor patio areas, they will be installing plumbing, painting, and upgrading all sewer, gas and electric as needed. in addition to installing all new kitchen equipment and furnishings. i wanted to give you a sense of what wood house could look like and i think the family has larger renderings of this, i want to show the conceptual

renderings, the path of travel will be continue -- con continuous. the financial benefit to the department, as you can see, this is the projected statement, in lease year 10, we're looking at over 230 thousand dollars as an annual payment, we will be fronting the credits, and we're anticipating 1.7 million dollars to the marina harbor front for this project. staff has had numerous meetings with members of the public throughout this rfp process

including the marina association which has invited the department to numerous of their meetings over the last couple of year, a member of their organization sat on the selection panel. i want to go over the list of groups that staff outreached in regards to the consideration of this lease agreement and i will go ahead and read through them here, supervisor mark farrell,, golden gate national recreation area, the golden gate national parks conserve advance si, the fort mason center, presidio trust, st. francis yacht club, national parks service, dynamo donuts, the merchant's association, city yachts, micro soccer league, the marina property's association, san francisco marina harbor

association, joan jerardo, we posted at the degaussing station and supervisor ferrell's newsletter for the month of september, there are two articles in the marina times, it is a free publication which is distributed to the pacific heights and marina neighborhoods. thus far, we've received a lot of community feedback on this project. we have a lot of support on this project including at marina community station, fort mason center, golden gate yacht mrub, the presidio ymca, the mission merchant's association, the golden gate restaurant association, the chamber of commerce, the national parks conservancy, the last meeting,

a couple of the restaurant managers did come out to support this endeavor, as well as two of the landlords, drakes east bay company, we're excited because they're a local company, food service distributors, the peninsula, spca, dug mccon nel and erik bran den badgering, although this project has a lot of support, staff has spoken to members of community who expressed concerns about hours of operation, delivery schedule, outreach, lights and garbage and a number of people bho have come to this meeting -- come to the operations community include patricia joy,

arthur, gloria and louis dillon. as we move forward, our next steps, we do recommend that the commission does approve the recommendation for the board of supervisors to approve this lease agreement. upon approval by the commission to recommend the agreement, staff will work diligently with the board of supervisors to schedule this item. should it be approved by the board, wood house will hire an architect to submit detailed drawings, they will go back to the community for their consideration before it comes back to you to finally approve. should those drawings be approved, wood house will work with the department to seek approval ts from all necessary agencies including the planning department, the bay conservation and development commission and whatever agencies come up before commencing construction with

the goal to open to the public by america's cup, 2013. with that, i'm finished with my presentation, thank you for your time, i'm happy to answer any questions you may have. >> we do have public comment, i would like to call the mcnivon family,. >> good morning, commissioners, general manager. i have spoken to some of you before, you i just wanted to reintroduce myself, i'm dillon, i'm the principle, i'm the oldest brother and i don't stand here alone, i stand here with my family and i want to bring them up to introduce them, this is my younger brother rowan, he's my partner as well, my other brother and my father, we've been in the restaurant business for over 20

years, we've been serving seafood in the city for six years and we've been -- we've had a boat in the marina green harbors when we were much younger and have fond memories of being children there and using the park and we've always looked at the building as something being restaurant eurs, look out at the birds and one day we walked by and there was a sign, would you like to put a restaurant here, we took that opportunity and are excited about it and i would like to the rest of my family speak while we have time. >> thank you for having us again, it's a pleasure to be here, my name is rowan, but i just wanted to say thank you for having us and it's just so exciting for us and

>> my name's tyler and like dillon was saying, we grew up in the restaurant business, our parents had a restaurant, the two of them built it together rkts in that restaurant, we knew everybody everyone in the small town that would come through those door and is we tried to bring that small town aspect of welcoming people into our restaurants to the ones we have in the city now and we look forward to bringing a sense of community to the restaurant at the marina green as well. >> i'm jamis and one of the problems with family businesses is the old man won't let go. the fact is i'm not in charge up here, i work for the boys, i have my own restaurant down south, that's not one of our problems. we feel that we're a team that's been picked by the city of san francisco and working with cassandra and nick has been amazing because we started

off, we're the outsiders and you're the insiders, but it's just us represent thing city so we want to take this old building right here and turn it into an icon that san francisco will be really proud of. we realize we're representing the city to the whole world, this is a very important place, and so i can tell you after 30 years in the business and having built two dozen restaurant ts, this is our gem, it's small but it's what we want to do for the city, thank you. >> thank you very much. >> barb karmenini. >> good morning, commissioner, i'm don, i live in the city, my kids go to school right in the marina, i donate time to the park and rec, i coach soccer, first time here in front of all

of you. i'm with the marina community association for the last six year and is the wood house is a class act, they do a great job, i really would say you should vote yes with these people. thank you very much and thank you for your time. bye-bye. >> thank you. >> i have greg harris, art scompa and then max. >> i'm greg harris, i live at 335 marina boulevard directly across the marina green from the proposed project. i'm here today because i've heard nothing about this project, we were not notify at all, i think it's poor on the parks and rec side to have posted -- evidently the chain link fence across the street, but art lives next door to me,

he never received any notice and now we're here to fiekt for our properties. i understand that all the marinas support this project but the neighbors do not, i don't live down by marina safe, i live directly across the street from this project, i'm in the development business, they don't usually occur like this, when you go from a vacant public property to a commercial restaurant, if i want to tear my house down and try to build a gas station, i'm going to have to answer to art, joan and a lot of other people, but the way this has been handled, i'm not okay with and we live in an extremely busy area down there, it's a beautiful spot but the impact is not going to be positive for this area so we strongly oppose it. thank you.

[applause]. >> art scampa and then max. >> good morning, commissioners, my name is art scampa, i've lived on marina boulevard for 30 years, i live right across from the station, i lived next door for the last 22, 23 years and i'm not a complainer, all this time i lived there, i have never complained once, i enjoy most of the happenings that's going on there on the weekends, i love the america cup, but number one, why we were never notified, immediate effect of neighborhood, not one of them except for joan was notified so we could voice our objections, our concerns that we have. i mean, i love the stuff that's going on on the weekends, but

for goodness sake, give us a break during the week. my bedroom faces marina boulevard, you know, there's light pollution with a restaurant, there's noise pollution, if they stay open until 9:00 at niekt, i'm an early sleeper, i get up early, they have to close the restaurant, they have delivery trucks, what have you. i don't think it's the right use for a public shore line right there in a purely residential neighborhood. we have enough problems as it is with the concern, with the traffic and all that kind of stuff, so i think it's plain wrong, particularly not notifying the immediate neighbors so we can voice our concerns. we have been living there a

long time, especially myself, i love the neighborhood and i love everything going on there, i never complain about all the happenings there, i enjoy it, but a permanent 7 days a week restaurant, it's just plain wrong. i think you should not vote for it. thank you. >> thank you. >> max? >> not here. >> joan jerardo, aerial kelly and then brad anderson. >> good morning. a correction, marina civic improvement and property owner's association was not notified, i was notified, it's not my duty being out of town

to notify my neighbors, my neighbors were not notified by anyone from the park and rec department, an 11 and a half by 8 piece of paper before the september 6 hearing posted to the chain link fence does not qualify. this is from the coalition from san francisco neighborhood signed by president berk vits, the coalition for san francisco neighborhoods comprised of 48 neighborhood organizations represent thousands of the city's residents, the general plans guidelines for the san francisco shore line are explicit, they state if a facility doesn't need to be on the shore line, then it should

be located elsewhere, and this was the resolution that was passed at their monthly meeting two days ago, whereas the san francisco general plan states "the shore line is our most important natural resource whereas the general plan mandates that facilities by which their nature don't need to be sited on the shore line, should not be sited on the shore line". whereas 77 years, the california statutes forbidding commercial leases on the marina green have been respected by previous rec and park commissions and other governmental bodies, whereas the paoed yat neighbors across the street from the marina graoep were not notified by rpd staff of the proposed change of use of the degaussing station from a former military use to a public use as a commercial

restaurant and takeout food use, therefore be it resolved that coalition for san francisco neighborhoods opposes the proposed lease agreement with the wood house fish company, we respectfully urge you to reject the proposed lease agreement and it's signed by judith berk vifp and there are several mistakes, there is no 450 square foot patio on the west side of the property it's a grassy area, similar to your description, to the south there ao esa grassy area and to east, there is a grassy area, there is no patio whatsoever and i didn't hear of any mention of the effect of wildlife, the blue herring that we all enjoy. >> thank you. >> aerial kelly. >> good morning, commissioners and general manager ginsburg, my name is aerial kelly, this

is a resident association made up of tenants and home owners, we have approximately 500 active members on a membership base of about a thousand residents, we were engaged on this project nearly two years ago when the rec park staff said they were going to be working to issue an rfp to potential restaurant vendors, a member of our board was engaged and was a member of that selection committee, with the rfp was posted, there was a physical posting on the building, our director that was on the selection committee was very happy about wood house being selected as the vendor of choice and after wood house was selected, we met with rec park staff and dillon mceleven i spoke with several times, we met with him in our

neighborhood and wrote articles in the marina times newspaper about this relationship that was forming and the -- the rfp that had been submitted. earlier as lease negotiations began to take shape, we e-mailed our 500 person membership list about this project. i would say if -- we're a volunteer organization so we're not marketing in the community but if there's people who live in the marina who want to be informed and are not reading the newspaper, please join us, so before our board took a position on this project, we wanted to maer from our members on the issue, we sent a follow asking them to participate in a survey, this e-mail was received by 400 members and nearly 100 people participate ined the survey, we posted it on our association website, so of the nearly 100 people that

responded to this survey, 74% supported the project, 18% were against and 8% were indifferent, our 11 member board of directors voted unanimously to support this project. we were concerned about various issues, littering, light pollution, and we feel we put a good framework in place to make sure in the 6 months of operation, we have a continued dialog with both rec staff and making sure these are being considered, so after we voted to approve it, we're very excited, we think that the wood house are an ideal tenant, the seafood industry being on the waterfront, they're concerned about the environment, they live in san francisco, they understand our neighborhood, part of the reason why we support it is we support this family and we want them to succeed. >> thank you.

>> brett anderson. >> good morning, president, mr. ginsburg and commissioners, my name's brad anderson and i'm a 17 year resident here in san francisco, i live on scott street about a block from marina boulevard and i would like to say, i don't think there's anyone here in 24 room, the current marina degaussing station is a bliet on the community, i had the pleasure of visiting with rec and park on this issue talking about the good, the bad and the ugly. i belong to four separate organizations within the city, all of them volunteer, one of them is the nert, neighborhood emergency response team, i've contacted everyone talking about various issues, one of them was talking about the degaussing station, there was one of my neighbors that wasn't

in favor of that. my concern is i believe the rent is high and i believe the initial cost to bring it up, the 650 thousand dollars is a large amount of money, i did bring this up to rec and park and asked them how they came across with the 10 thousand dollar rent per month and they based it on -- it was for the rent use of the bee chalet, i understand rec and park is slated with trying to generate revenue and i understand that way, i'm also concerned about the neighbors, about pollution, light, disturbances and those types of things, we one time went out with our group and handed out 280 flyers and they talked about the concerns with the [inaudible] of the marina, t