in fact, there are two single hotels that have more rooms and space than the moscone center hover it's the most demanded convention center. it generates overnight hotel stays. to give you an idea chicago convention center is very successive. our clients are asking for additional exhibition space they want more. 21 percent of all revenue is generated because of the convention center. independents study showed

between 2010 and 200179 we lost $2 billion in direct spending because the center was not big enough to generate the business. moscone center will recovery money from that. currently we're at capacity for our conventions. they can't grow anymore and sometimes they lose business because they ant accommodate the expectation pr and we're looking alternative sites. losing our convention would have a significant impact. when a major convention comes

into town it impacts business some folks can't come back to this city. we've heard from another airline operating out of western canada they're not adding another flight because we don't have the space for visitors. and it could be worse without accommodating more hotel space. it's a public-private partnership it's usually and the committee voted to charge an assessment on hotel guests.

it's about a $500 million project and that will add up to 85 hundred square footage and plus give that special space by connecting moscone north and south to add 25 hundred squeegee. the improvements will make the building more neighborhood friendly and make the sidewalks more pedestrian friendly and make it connect in a neighborhood of south market street. the plans are underway and we should have the plans done and we're excited about what that center could mean to the city and a region. looking at how san francisco is doing in hotel occupancy.

according the smith the research firm in the nation this year their forecasting our occupancy will be 31 percent. it's an increase of 1.7 percent over last year with an average daily rate of 6.5 percent. revenue for a room is a trend that hotels use it's most important in the affordable is up 2.7 percent. to give you an idea the project it 66 percent u.s. and 81 almost 82 percent in san francisco. this is being felt citywide. this that is right give us a snapshot of what it looked like

in may of this year. with incredible cup u occupancy that take into account the mid of the year. the fisher's what have area had 62 percent occupancy and 65 percent is really an incredible increase in occupancy that are rivaled by new york city. this gusts a forecast in our convention bookings for going into the foreclose. this chart is hard to understand but between 2012 and 20024 we're above our pace and in terms of conventions of rooms booked so

the demands for san francisco will continue to be strong because we're booking a larger percentage of greater rooms going forward. to so long as the economy stays strong we'll continue to see this pattern of growth into the future. what our concern is that we need alternatively to see hotel development in and around the moscone center to meet the demand. it can't be a successful engine and for the posh of additional revenue not only jobs but tax revenue into the city. we see we need hotel near moscone 6 hundred rooms minimum with 23 hundred squeegee within

about a 10 minute walk of moscone center. san francisco is a walking dissemination d it cuts down on traffic in the neighborhood. we need smaller hotels between 1 hundred and 2 hundred rooms also hotels in underserved neighborhood. there are neighborhood that needs hotel either because of a tourist nature or people coming for hospital stays in our neighborhood we need to see additional hotels there. we are working with the housing and economic development to identify and see some of the hotels that may, in fact, brown be in the that i'm. what we're doing with the city and a san francisco traffic and working with the city of san

francisco is making sure we're looking forward and identifying the needs of the hotel growth as the city develops. we want to make sure there's zoning in the morgan con area that supports the needs. we want to encourage the hotel development in the study area. we want to see the sfmta investment policy to identify hotel development as a benefit to the city. sometimes when our looking at a project the hotel may not be the most viable project to the site but it has strong benefits for the whole city. i want though make sure we keep it in mind. and the other zoning is

important. we can't build out without continuing to make san francisco's economy strong going forward and support for the hotels in those underserved neighbors neighborhood. there are demands to go out not humanely developments but if smaller neighborhoods that have needs that would benefit the businesses in this neighborhood. this presentation is to give you an idea of the hotel demand in san francisco and as i said it's contributing to our strong economic growth but as the city i develops in the future that hotels around moscone is on top of mind and kept on the charts. that's the end of my

presentation >> thank you. open up to public comment first if there's any. any public comment >> okay public comment is closed. >> thank you. the have questions local visitors throughout the bay area will stay overnight because of sporting things and i understand their categorized under locals. >> yeah, we have a study that shows it we have about 10 percent they typically do that on weekends when there's fairs and festivals and sporting events will attract people. >> yeah. i think that's a market we have to try to build

as much as we can sometimes when hotels have vacancy they'll be on. what's your timeframe for the moscone construction >> construction will start next year from 2017 and 18 to be prelims. we're making sure that the construction won't be ininconvenient people >> what size of the moscone west in relationship where we move up in the country. >> we'll move up to 16. we account move up more. >> yeah. every time the

moscone was updated we were filled. >> how much hotel rooms dow do we have. >> about 32 thousand. >> are there notable hotel chains that don't have a hotel in san francisco and people that we would look to bring in human resources p. >> there are many international changes that would love to come into san francisco. they'll lyle like to have their chain here that we don't have currently >> thank you. >> thank you for this report. i know you have some or the of other data power points.

i know that you have other numbers for spending from tourists >> i don't have those stats but i could make no mistake about it them up but we're third in bids behind new york. it's a higher shopping area they do a lot more expenditures but i don't have those numbers >> i know that folks who visit from new york spend here. >> when you talk about the underserved? >> such as the midgets such as a the richmond we serve and neighborhoods that we serve with

hospitals. a lot of times the people come in and they have to stay near the hospitals. that's another need. in the plan or in the process in midgets bay but no, the richmond district >> how much ridership there are and car uncle. i live along the f line corridor >> we have probably the highest rate of air arrivals of any cities in the u.s. a lot of times in the midwest they're driving the visitors but we have them in by air. and they take taxi or use public transportation like the rails or

trollies or whatever but they use public transportation here in town >> that's what we need to think about in terms of how the transit and what we look at. that's why transportation near the moscone is important >> i did not know that the hotel community kids to do an assessment i think it's a great thing to do. >> commissioner. >> thanks for the report. just a question. doesn't our data capture a b and b do you have any information >> we think there are about 5 thousand rooms but since they don't collect hotel tax we don't have the data on the actual

usage in san francisco. >> i mean, i agree with you that neighborhood hotels would be great to have. i guess the question is for planning can build the hotels on the street - i know there are hotels on hate by could you billed on market street and the castro >> i believe yes, there were side limits but most of them would accommodate. >> why don't we see more? is it the economics. >> it's the economics of housing. >> it's the economics, in fact, one of the most expensive hotels to build is in this high area. it's becoming affordable - it's

becoming practical again >> probably a 40 foot height limit is tough. >> it's tough because people want to stay i state initis at an bull and there were hundreds of rooms not a lot of smaller hotels. it would be interesting to balance to take the pressure off people trying to rent their homes and build neighborhood hotels >> thank you very much for this presentation. i think part of the balance is protecting r0i78 residential stoke and i know we've got some good product but it's clear for the demand for more rooms and if

we can do it open sites and build hotels and housing residential units at the same time would be best. so i'm kind of curious but as far as supply and demand to keep up with moscone's expansion of 5 hundred rooms. if you did build that suddenly do you think that the rates would change but would the pie get bigger. how many people are we denying because it's too costly >> i think the pie would get bigger but the demand will be there for the additional rooms. those minimum 6 hundred rooms needs to be in one property. it's the key to being successive. so i think it will be successful i don't think it will negatively

impact the city occupancy and rates >> thank you. i want to add two other comments for the need for hotels. we have great things outside lands happening and for the most part the business is going to stay downtown and if you want to limit some of the car issues around ocean village would be great and there's also challenges >> thank you commissioner moore. >> i wish to - commissioner wu. >> i wanted to ask about jobs. how many jones do the industry provide. i assume their jobs for local people and if you have any sense of the wages of those jobs

>> yeah. in the hospitality industry san francisco employees arena much higher wage than the national average because of the unions. i can tell you what th

>> it go deep into our economy. one of the interesting thing is where the people who work in the hospitality live. so some of the greatest benefits are the 230ekz who take home the pay checks like the bay view neighborhoods and richmond neighborhoods are those who work in the industry and it's where the workers actually live >> commissioner moore. >> i appreciate the authorness of our work and to look at another cities to achieve hotel locations for example, the hotel

industry is in great need. and i think the hotels are small and the city comes to mind just because there's a lot of convention that addresses the array to the word cities. i want to ask we're getting a lot of interesting presentations having is there an ability to create an website where there's a library where people can retrieve information. i would like to get rid of the paper stacks which it's not necessary. >> that's a great idea we'll create a library on our website. >> it can be hotels or tourism

or whatever to go by date and bring this up and refreshing your memory on the presentation. >> commission and a thank you very much. because i was associated with the participated traffic at one time and their cultural tougher than that impacts and did some work for them overseas. it's interesting to hear about statistics in terms of museum composures and cultural tourists and people looking for historic issues. and i think generally that was found they spend more money so making a pitch for 3 kind of tourism. when we say convention hometown is horrify would that be

different? can you characterize what they would provided because over the last 5 years we've been contacted twice by the peninsula chain. they were initially looking at a mark and the second time they were asking about off the hill what might be available. but i think that's a different kind of hotel chain than what we're looking at for >> that's more a of a transient hotel. it should be minimum 6 hundred rooms with meeting space. the meeting space is critical because even if they're using the moscone center they're to

have other meetings so to give you an idea. it's like the grandhystero on uncle square or the western market street it's the type of size that kwltsdz as the convention hotel and we do a convention campaign >> i read that who was in town - i think it was a basketball team playing in oakland but they stayed here. >> typically the teams that play in oakland will stay in san francisco. navigate whole thing we had the glee cast they stayed in san

francisco >> now because they office is near the gate can you do something about the two antique stores there. you know, every tourist is taking pictures and where are they going to stay when we get back home >> i know i can say that because i know the owner. >> yeah. living on the west side of town i can add to the comments we need some small stores. and for people who might be using the government cougars on the west side of town or enjoying the coast. i'd like to see what kind of relationship you have with the folks around merced.

i thought the site by lincoln park would be a great site for a small store >> okay. any other questions? >> thank you. i think that the number in details it was a well put together presentation. >> again, you want a >> i'd like to welcome everybody back to san francisco regular hearing for august 1st, 2013. commissioners we left off on items 11 and 12 the waterfront

transportation assessment both presentations and i'd like to take the opportunity for members of the public to silence any mobile devices >> i'm going to make most of this presentation. the purpose of today's briefing >> would we have argue name, please. >> john ram with the san francisco planning department. thanks. the purpose of today is really to give you an overview of the waterfront planning and the history of the plan and the related plans and working with the port on those items. i'm joined. >> by two of my colleagues and

also from the planning department. in the next several months and well next couple of years were going to be seeing a lot of the port activities. so this is the first of what we think will be a multiple discussion about the planning and development. this is really meant to be an introduction to remind all of us about the history of the waterfront. i gave the same presentation to the port commission last month so they have the same eva's you have and diane made an introductory comment. so i'll ask diane to come up and talk about the planning waterfront roles in the last

several years >> good afternoon president fong and members. i'm with the planning and port division payroll if i could - i want to express any comploenz to kerry. so on behalf of myself as well as the staff and the port commission we wanted to express our presentation for everything she's left for us. i'm going to speak briefly as john indicated last month we did this informational presentation for the port commission to give an overview. we tend to look at what the