reactivated six months earlier. the benefits of doing alternate ii, are streamlined timing, continues revenue to the port, retanting with a higher quality, higher rents preservation, seamless transition, 17 million dollars in tax credits and thank you very much for listening to us. >> thank you. >> question of procedure. we'll take public comment after both? thank you. >> i would like to introduce michael cobarrubias from tmg partners. >> i would ask if any of you familiar with this new japanese

slideshow presentation style called (indiscernible) -- design for the millennia, baked in add. we'll try to talk a lot about a lot of projects that we have done and then go forward. thank you chairman and members of the commission. i am mike cobarrubais. i'm here with two folks, amie and matt. we'll tell you a little bit about what we have done over the years, we've been in business for about 30 next year. we will tell you what the reason to pick us for this revitalization. oh simon -- ( laughter)

i expected better of you. >> tick tick tick. >> as i mentioned, we are joint venturing with premier structure, we have a great group of architects and all the basics that you would expect us to have. we have been in business as i mentioned for 29 years, and done about four billion dollars worth of transactions. our business is to reposition assets; you're familiar with the southern pacific headquarters building, we have been up another counties, marin, field and the north. we have done demo public private partnerships. we are used to dealing with agencies in the city fathers, usually rank as the most active in san francisco. we did about 2-3 billion dollars in the last two years.

but last year was the pinnacle year, 3 billion in sales, we did this is a small development company, 35 people, privately owned. we pick a project that we think can have the best impact and those are the ones we go after. we decided on this one that we would joint venture with another development group that you know is i said, (indiscernible) from premier structures. as of yet we have not done a deal on piers but you can see in our track record that we have done about anything else. i group includes activities on piers, pier one, marin, the cruise terminal. we have is i said a track record -- this is where you get dizzy -- buildings that have been built

throughout the bay area. what we are proudest of in san francisco is the fact that our projects -- you can drive to all of them from silicon valley to marin. they are successful. we have partners that we have done business with including calpers, -- capital, project a return profit to the partners and are good for the community. we are proud of that part of our team and that is what we will be selling if you will in this presentation, our ability to execute for the port. amy who you know, i heard her praised the former presentation. >> hi everybody. i am amy natchez, formerly with the redevelopment agency. this is an opportunity to work with you under true

public/private partnership. we know that the beginning of working on that public/private partnership is understanding what your goals are and what your objectives are in this project and we understand that those are both the immediate reactivation of the bulkhead building that deals with the code repairs, and the pier; you want to plan that this is compatible for long-term use. you will see similarities with simon's presentation and the ultimate goal is the reclamation of this asset for the port and the public benefit. there are three keys to the approach, both short-term and long-term. one is honoring the historic nature of this asset as part of the historic district, pier 38 is a beautiful building and neglected. the second is both short and long-term recognizing the importance of this pier to the maritime history of san

francisco and making sure that we connect both in terms of the historical honoring and making sure there are opportunities for the public. third, this is near and dear to my heart, is understanding the place of this pier within the context of south beach. it's a wonderful community and i spent years of my life developing it. there are great things happening.we spent a lot time working through options in coming up with what are good initial ideas to work with you and your staff and the community and with that i will hand it over to our managing director matt field to walk you through the specifics. >> thank you commissioners. i am managing director at tmg partners the rehab geek.

many of the projects that mike talked about a project that i managed including the one across the street at one market. we have come to this with a real cognizance of what the long-term rehab looks like. you know it is better to know what you're getting into when you start because you will be able to provide a better pathway so that is what we try to do as we look at both your near-term goals of activating the building but also your long-term goals our approach really was to think about the activation of the code compliance. the near-term goal is to get public and to the building but also looking at the most judicious way to put capital back into the building knowing that we will go a major renovation so our approach really was to look at our skill and tech tenants, and we have done about 17 million of

leasing with tech tenants; we are pulling from those projects most of which are rehab projects to look at who would fit in here, how can we reuse the building without spending huge amount of money that we are going to then tear out later as we do the repositioning. our bulkhead revitalization looks at a lesson-based approach; we want to get food on the pier, the ability to put on long-term restaurant improvements and undertaken major renovation time that we really felt that we could more prudently build here sooner and get a project going faster using food trucks so we built a food pavilion but using

food truck so that when we undertake longer-term project we won't have major improvements that we made really key get all the activation vibrancy quickly and deal with less permitting by building a mobile enterprise. we have a dining pavilion on the north side, using parking important for a portion of the site and try not to trigger again seismic upgrades, improvements required by putting more infrastructure into the building we get a large patio fronting onto the waterfront and built office patient in space and judiciously put in improvements as we look at long-term coming back to do more renovation, driving and much more intensive use of the front and active use at the front than the interim project will do.

also with their long-term plans for the immediate activation, full historic preservation, we have done a number of interior center projects including the project across the street and we have also done a number of tax credit deals we really felt that that was the best approach, to try to get the long-term project focused on meeting those goals. so you'll see again focusing back reusing the apron and creating along a long-term project, we won't have any improvements that would need to take out later. we are looking at the long-term objective here, activating the front again with retail and dining, getting the docks back and active on both sides and we see this is a major office opportunity, trying to come in on time and under budget. we see this is as a large

tenant opportunity and have a lot of experience with these types of tenants so we are quite confident that this type of space if it's in our sweet spot. i have done telephone companies, railroad company buildings, a brewery. we had our hands full across the street, and always wanted the opportunity to redo one of the piers, this is a unique opportunity for us to come back and bring our skill set with mixed use office rehab. we are very, very excited about this project. i will turn it over it to mike. >> so i think we view this as an interview of a resume, your job is to pick someone you think we'll get this done from that you will look at what they have done and we think

our resume of what we have done in our nearly 30 years of activity speaks for itself. we have project that you can drive from here and you will find that they are all successful. the opportunity that matt mentioned is the one that is most exciting. it doesn't mean that it's any harder than the things we have done if you have been to the southern pacific headquarters; some of the others you will realize were monumental challenges. we have addressed the first requirement which is to pick someone that you are confident can get it done. second, we have amy here because we wanted to get on your side of the table and get the perspective of someone who has worked for the city and the port-like facilities where she gives us guidance and yells at

us we are not going the right way. we think that this is the expedient way but also a good way to get the pier activated with the intention of the long-term. we did not do this just for the short term. that is our team and our vision and we hope that you will like us. thanks. >> thank you. is there any public comment? hearing none, commissioners? >> thank you both for those presentations. i think they were both great. anyone who knows me knows that i want to see the financials. they both look like great projects. thank you so much. >> i would echo what commissioner bradon said, they

were both excellent presentations. there is no doubt that both teams are extreme the qualified to do the work on waterfront. i don't envy the panel but has to sit and go through a lot more detail in terms of some of the evaluation criteria. i think that today we don't have the time to go through in-depth in terms of what your proposals are. your schemes and concept are wonderful. it's great to see the public access which is important. and activationof the restaurant area.

filling in with the rest of the neighborhood is an important part of what we are asking for in the rfp. we also want to note that there is a long-term asset that will sustain and improve the quality of what we have on all the piers and moving it out in terms of the quality of the buildings we have on the long-term sustainability but in the short term obviously giving us the revenue and sustainability that we can in the short run so i think that we want to understand how this and the scoring mechanism will play out for the port given that we have such enormous capital need requirements not just for this pier but for others so we need to figure out how the portfolio assets will generate the and benefit the port in the long run. >> i concur with my colleagues. it will be exciting to see the financials. i do appreciate too but i think we have two very dynamic and

exciting teams and we're lucky to have the kind of caliber of teams before us. it's a testament to our staff getting out a good rfp to attract solid teams. it's a very exciting space. one of the things i i am interested in hearing more about you seeing the difference between immediate activation and what that means for the port and a longer transition and how that flows and ties together. that is something we feel strongly about, the opportunity for us to generate revenue again looking at the long-term. we want to see a seamless transition over there. i'm excited that both teams have certainly taken a look at that and incorporated that; i look forward to hearing more of that and want to thank both teams for terrific presentation.

>> i want to add one thing, because someone was have seen how on pier 39, autodesk has you some of the space, interesting and and nine with the shed and the and what they're doing in their workshop, is a great synergy not only for what they are trying to accomplish. we are trying to figure out how to use of space fits in with i think what we are trying to produce an environment for the waterfront obviously one of the presenters did mention in terms of what was previously there which was very exciting, digest was in the right environment and not safe in terms of the tech activity. in terms of how and the content and how the space would be used, in line with what we're trying to create, the mayor and the city, the waterfront is going to be important in the long run as well.

thank you very much. sorry mr. murphy. >> it's a great project i appreciate the presentation by both parties. i'm supposed to get it to -- a tour out there next week. i would like to say that the reason that the pier is closed down, obviously some violations and all of that. that will be all addressed during this endeavor i hope? >> with money from the port left over. >> okay. good luck to whoever gets this. all right, thank you.

>> more on that commissioner thank you for that. >> given the time we'll take a quick five minute break. could i have a motion? >> i move to recess. >> second. >> all those in favor? aye. (recess) >> motion to reconvene. >> second. >> item 11b, authorization to commence pier -- with metro cruise services llc (reading from the agenda) >> good afternoon john -- from

planning and development. i'm here to do a presentation with p- daley. there was a correction in the staff report that came to my attention on page 25. fourth paragraph. mentions additional -- that metro would offer. text reads one full-time -- it's local 10, maintenance mechanic. and -- should be -- maintenance gearman. is your read one full-time iow

local 10 maintenance gearman and one full time iow local 10 foreman. the solicitation was a solicitation for professional services pursuant to chapter 21 of the city's administrative code. staff received two proposals. a panel was convened to review and score these proposals; the evaluation panel consisted of current or employee responsible for cruise logistics; and

former port employee responsible financial analysis; former event manager for the san francisco giants and marine world. and currently a commissioner for the board of permit appeals. the panel was selected because of their combined experience and cruise operations, maritime finance and special events management. the evaluation scoring process was conducted by the port's contract manager, andres acevedo with the help of a contracting consultant, mr. reyes, who work with the city comptrollers office -- representative from the contract management division also attended to ensure the fairness of the proceedings. the evaluation panel score the written proposals and then

interviews of each of the respondents. based on the scoring, the panel selected metro is the highest rank proposal wiht a score of 179.6 points out of a possible 200. ports america was givne 127.2 points. the provided exhibit d in the staff report which brings it down to a specific details and the panel's average score for each evaluation criteria. in every single evaluation category metro outscored ports america. every panel member scored metro as being the highest-ranked respondent. there was no unity in terms of metro versus ports america. the poor staff supports the evaluation panel's writing because metro has a better

defined business plan for a cruise operations; will partner with hartman studios (sounds like) for special events and they have extensive experience in san francisco. further, metro provided a financial report that is realistic and provides a profit-sharing component. the port receives $180,000 a year of the operation and with metro assuming management of the pier's operations -- the number of cruise calls and parking, revenue will be approximately 1 million a year. the estimated port revenue would be 4-5 million a year for the initial five years. since the evaluation panel is now complete, for staff recommends that the

port commission approve recommendation to begin negotiating a management agreement with metro. there are a number of business terms that must be identified and negotiated. at this point of like to turn it over to pier daly (sounds like) to address these next steps in the business terms. as part of the business term negotiating process. thank you. >> thank you john. commissioners, peter daly. i commend you for your attention span on this long meeting today. i'm going to give the next steps of the cruise terminal. back in september of 2012 and we started this effort when we asked for permission for permission to issue an rfp for cruise terminal operator and management company. in october of 2012, we actually

issued the rfp and in february of this year, 2013, receive two proposals. pursuant to the city's demonstrated code, in april of this year -- here we are now in june to ask permission to begin negotiations. it has taken us nine months to get to this point. in november, the port will get the session of pier 37 back from america's cup event authority; it has been difficult for myself and my staff to drive by and not being able to play with our new toy; we are looking forward to phase 2 to get the facility up and operating. we are not going to have a lot of time for phase 2. we are going to have to hit the ground running when we get

back from america's cup. phase 2 is projected to cost approximately -- million dollars clean installation of insight apparatus for passenger processing including customs and border protection in all their facilities, the port' s first-ever mechanized gangway, moving into the 21st century. we have a lot to do with a short period of time. on top of that 2014 will be the busiest cruise season with 76

calls- first time we have reached the passenger count of that magnitude. it is critical to get it up and operating, and critical to have a management team in place so when the america's cup event ends they can be involved and the management company can be involved in the implementation of phase 2 construction and they can begin marketing. the port has received numerous inquiries for the space, is a high-profile space. when the americas cup is completed it will have an even higher profile. today, staff is asking for authorization to start negotiations with metro cruise; we still have a great deal of work to do before we ask the

port commission for approval of a management agreement, hopefully later on this year. if the port commission authorizes staff to commence negotiations with metro cruises, the staff is committed to bring -- for guidance. we are committed to engaging the premier for consultant -- to for assistance to provide negotiation support with the goal of making pier 27 operation efficient and to maximize revenue. with our consultants help will come back to the commission in september with an informational presentation on possible business models and pricing strategies and compare our facility to ports in the west coast.

we will look at the elasticity pricing and a range of other issues. we want to maximize revenues by attracting as many cruise calls as we can, and the parking opportunities that pier 27, and potentially pier 35 my provide for us. the goal of the rfp timing continues to complete negotiations of the management agreement to come back to the port commission for final approval of the deal by fall, 2013. that gives up or just a few months negotiate agreements and get going with phase 2. in the event that metro cannot resolve the prerequisite terms, (indiscernible) --