leave a significant place for the city to add to the city she also loved. a group of artists which was a foreign of works progress administration they pained pictures spikt life during the combrd. coit tower as an landmark and is indeed a city landmark number 665 listed on the historic places. i believe in the last few months you guys have heard about the capita project at coit tower we're spending millions of dollars to renovate this tower and this is the largest project in the history of coit tower.

the item before you is a lease for the operations of the concession. we began work with the community many years ago and over the ensuing years have had any conversations. in 2011, we issued a request are for proposals evenly lisa new operation because the previous agreement had extraordinary and was on a month to month basis. we asked for significant feedback from the community and notoriously there was a document it was jointly prepared by the pioneer park project that have been submitted to the department and we're pleased to say we've

incorporated those principles into the rfp and those include the to create a high quality book store. improving visitor flow and implementing a mural protection plan for the area. one of the things that has been a priority for the community and department in this process is that we believe that coit tower is a historic treasure and should be treated as a museum rather than an attraction. we'll created to intensity a contract that improves the visitor experience into in terms of the professionalism of the operation and how knowledgeable their staff is and how we're presenting that information to the visitors as well as the items that are offered. we got a lot of feedback from

the community we're happy to incorporate. so in june of 2012 the rec and park commission selected terry grim to operate the coy tower concession and we entered into new york city with mr. grim. a little bit of background he has run a number of successive family businesses here in san francisco including the anchor those take care bar and other businesses in northern california. the department i think was particularly the foreign commission were particularly attracted to again, the mr. grimz proposal including things that treat the coit tower more like a museum than an

attraction. the department has negotiated the attached lease with the following terms it has an initial term of 5 years with a possible 3 year additional extension with park approval and the permitted uses include operating an elevator with a bookstore and we're happy to say this is a significant expansion of the tours we have on site currently there are two tours a week offered on site would the city guides program we'll be having daily tours out there for the first time whatever day they'll be able to go to the coit tower this trial hear about the history of the coit tower

and there will be temple psychotic machines out in the perimeter of the surrounding 0 parking lot. it will be 62 thoughts plus with an annual c pi interest and the rent will be paid of each of the following revenue streams. the department will receive 90 percent of the admission receipts and 10 percent of audit tours and 50 percent of telescopic viewers and 10 percent of the gross receipts. we will be marking a capital improvement of $75,000 to the tower. they'll bring their oppose

equipment to operate the concession. as i mentioned coit tower will be responsible for admitting the elevators and lastly, the telescopic viewing misunderstand and the tours we'll have more information. this is the first time we're implementing this program and we'll have people who are professional and they'll act as greeters to the public and to inform the public will the mural guidelines which have been established to protect the murals. i'm sure you're aware of those mourlz are perhaps they're

relatively close to the public so it's important we inform the public about the steps to protect them like not allowing informed and beverage in the memorial rooms and wearing backpacks and those are guidelines with the assistants of the arts commission. all folks will be trained on the protection guidelines. also one of the things we're very excited about it is creation of a bookstore offering high quality items currently, we have what we call a gift shop and there's not a strong correlation between the tower and san francisco. so we're excited we're going to be able to offer that. if you can see the image the

proposed bookstore will have an decking 0 design for the whole premise and will be minimum always in concession and have better flow so there's not crowding like we have sometimes experienced on the coit 0 tower. additionally there will be a revised produce line so the bookstore will be featuring books about the coit tower items liquor, you know, the books widespread parrots of telegraph hill and a san francisco then and now as well as there will be replicas in various murals for

people to buy post kashdz and information for people to purchase about the mourldz and a lastly sort of a parallel line if someone wants a republic can have coit tower. one of the - as i mentioned, you know, one of the things one of the most delicate things of the coit tower of the concession operating plans is the protection of the murals. so we have, you know, again working with the arts commission guidelines have been developed and we have worked to make sure we have included in the lease

requirement they follow the guidelines all staff are trained on those and also 0 for us any city contractors who are working at coit tower are trained so all the capital and contracting staff have been trained on those guidelines to assure their protection. lastly on the murals we are very excited to announce well we're excited we'll be daegd one percent of the grow to the murals to repeal e help with the ongoing upkeep and maintenance of the murals to make sure their preserved for future

generations. among the improvements that the usc to paint the handrails and having custom lighting in the bookstore and cleaning and filling the floor and steam cleaning all walkways and a comfortably the gallery flow. as the department has gone through the process we have a robust community plan that's been going on for probably about 8 years now as we've been working on this. specifically in the fall of 2012 we hemd held a series of the meeting to present this to the public and experiences on how

coit tower could be improved. act out of that meeting came some community feedback that participants were wanting more information about the molls and a high quality merchandise being offered and beverage items to be offered. again that element of treating the property as a museum and having staff that areable 0 communicate the history of coit to the public this department has continued to hear the feedback from the community. in the fall of 2013, the department went with the community to talk about the proposed lease and the department received a desire from some community members to relocate the concession that was

proposed on the rear patio of coit tower. under the leadership of commissioner president buell and continuing our conversation with the community it didn't have a food and beverage at the time we've decided to there a that to be sure the tower is up and running in mid-april we pope hope when the tower renovation is complete. the lease drishgdz the department to continue that communication and getting a suitable location for the concession and should the department find a location in conversation with the community our stakeholders that we would present that back to the

commission and board of supervisors for their approval. so we thank all the community members as well as the commission members who expressed their opinion and helped to guide us to what we think is a favorable result. so financial benefits to the department. over the last 5 years we've received $748,000 per year from the concession. under the proposed lease and with the added benefit of the mural renovation project and the coit tower restoration project we estimate ref $1.3 million this is an average per year of 5 hundred and 63 thousand dollars. and 2 passenger door $.8 million over the course of 5 years.

this is due to the new concession operation we've seen at still lake when we turned over perhaps the data concession we've seen significant revenue improvements for example, at the tea garden the last year that they were there in not and gift sales will be $415 and the lake last year the concession was there 0 which was only about 2 years ago their revenues were one hundred and thirty thousand and we're expecting 2 hundred thousand so a significant growth, you know, getting off month to month leases where there is no leases.

and also, this is a unique property similar to the tea garden where at the same time there's a change in lease there is a significant investment being made in the property so we expect with the 1 point 3 million 5 we'll see increased potential to the tower perhaps some local resident has fallen off their radar they'll come back. and one of the problems we face is both to get american people elevator and, you know, our bulk in reviewing the numbers and a actually spending time at the tower we find a lot of people don't buy a ticket to go up to the top we think one of the

reasons is the line is quite long with a better management we can address that and hopefully get people to go to the top and experience those iconic views. as i mentioned there's a robust outreach process. i'll not going through all of them but we've met with the local community before the rfp was issued while it was being developed we met with the community. when the rfp was first published we sent out advertisements and when the commission xraufd the selection of terry grim we had a significant outreach process working again with community

groups and stakeholders to alert them of that selection. and then again during the weeks negotiation we repeated that public outreach process. each time working with all the groups that have expressed interest including the coit tower and as more and more people showed interest we include them. a very comprehensive outreach process. obviously through that process we've received love feedback and we're happy to say here we're now here to finally, take this commission action on the significant community support for the lease. you know, again i won't read through all the names but a

amount of support and then there has been some persons that have opted the lease and those are all listed here. with that, i'll make modifying available for any questions the commission has >> thank you. >> we duo do have any public comment? i'm list the names (calling names) if you could come up in any order. >> hello, again commissioners and general managers i'm richard rothman and i give tours at coit tower and can't wait to give more in april or may. i think that's important that

coit tower has a stable management running it. i know i would here at all the meetings how many different vendor were approved or thought to be approved but didn't be approved. i think it's important for some reason coit tower has been controversial for where we're supposed to be lilly himself comes back grant what controversy about this and 0 controversy about the mourld. coit tower in and the mothers building have in common they weren't built for the murldz when the artists want to find spaces to put the murldz on and coit tower was one of them. it's important to protect the murals that not only open the first floor and the second floor

but we need, you know, to come up with a plan for the traffic flow and to make sure that the art commission is going to do in renovating the murals and the murals stay protected and hopefully, we won't have to do this again in thirty years. i support this contract >> thank you. >> next speaker . >> commissions i'm here to urge tour support 90 for this action. thanks to staff for all their hard work and thanks to mr. grim for standing fast on what's been a long process and thanks to my neighbors who have been civil and great. special thanks to you commissioners particularly commissioner bonilla and commissioner levitan and

commissioner president buell especially commissioner president buell for you for your leadership. and let's get on with it. my only comment this is an opportunity for saying we hope in the 3 months that remain before the enjoy us opening that some attention will be given to the areas around the park. we hope this will be an opportunity for the participating park to the regender the lighting in the park is now one hundred periods of time number one functioning we've been working with the department it's a place that gets invited a lot of at night that he we have worked with the department an crowd control measures that have helped to stop erosion.

we hadn't being able be able to reach an agreement with the new staff. fencing we need for the replanting of the hill. the south lawn has been fine for 14 years it needs to be pealed it's not a big piece of land. i've not been able to get a response for staff we scott wiener we have barely months to go. it would be nice to have those things happen so we can all be ready for the enjoy us you strut many that the park will get >> thank you. >> next speaker >> hi, i've lived here 20 years. i've seen them restoring

businesses and i've seen i am bowing old houses and it's been done taste fully i'm sure they'll do a great job on the tower. most importantly he respects his neighborhood and i think it would be really inappropriate to have the people walk up their stairs when they're tired and thrifty and not having some sort of refresher time >> thank you. >> next speaker >> i'm david i had the pleasure of appearing before you a few times before. largely i want to say thank you

for your good efforts and keeping this flowing and now we're going to get down to a point i can take my kids and grandkids up to the park >> i think one of the most refreshering part is that coit tower had not been lieshgd so its refreshing to hear after 25 or thirty years the tower is getting the respect it deserves for a long time. i'll obviously support the approval of the lease i also strongly reiterate from the

previous speakers in your approval resolution or vote today that you codify or insure the department will come back to you with creating a refreshment opportunity at the tower. soften when items get shelved or detailed they fall between the cracks and i encourage you to put some language into this come back to us and put it into the report so it didn't get lost >> thank you. >> is there anyone else who wants to comment on item 12. >> good afternoon. i'm here to represent park wide activities and tours. we send many, many visitors to coit tower that are interested in seeing the landmark itself

and we believe it will help to improve the assignment and have it reflect this importance for the artworks it xhandz. i understand this agreement didn't include the informed and beverage but we agree it would be important to have some food and gifts available in the gift shop. as a local san francisco i think that it would attract other locals to velocity anonymous tourist for the art. i think many people request or so having the practice writing program we offer the like service to another person we

send them off to coit tower for the historical art >> next speaker and is there no one else who wants to make any public comment? after this speaker public comment is closed. >> first, we're happy to be here to support the project and the modifications dealing with the informed issue and the commits that have been made hole do a great job. i want to recognize folks sometimes there were quite a bit of controversy i think we've come a long way. many of us want the coit tower

to be treated like the special place it is and not to have to come back and fight this fight. i want to thank the people of san francisco. it's clear without the voefrt weighing ♪ john of 2012 for all of you and us to hear it that would just a few people but the whole city that wants coit tower to be treated better. and hopefully the credibility and a support will do better. the letter you have before you raises points. the other proposition was clear and specifically that the voters approved the funding generated the priorities should be to go back into coit tower not every dollar it had some debate

whether that money should be set aside. one percent of the revenue for the murldz it 10 grand a year and that is, you know, clearly insufficient it doesn't include anything for the building and park and i think based on the next item is a request for more money for the current project is clear more needs to be done so we encourage you to set aside in the budget a dedicated coit tower prestige fund. we'll having ask the board to do that and avoid conflict down the line. the other question of revenue which is raised in the letter that was not addressed by staff exactly where the additional revenue is