>> good morning commissioners, mr. president, mr. general manager. i'm cassandra cost elo from the property management. i'm proud to bring you the draft of the proposal of fine arts. so just a bit of background. the palace is a long-term tenant. the longest is the theatre. i was here two 2 months ago to present the terms and conditions for lease agreement for the innovation hangar. both leases will expire in march of 2016. innovation hangar is in the space to hell help us celebrate the

event. so looking forward for a long-term tenant for the space, we are proposing a two phase bidding process. first is a question for concept proposal to provide a little bit of a lower barrier entry way. oftentimes we hear from prospective bidders that they are anxious to participate because they are in a higher level. it's to get the commission to consider and get the public to weigh on and this gives us a broad view of high level concepts. this is an invite only process and we'll have a selection panel to recommend the highest scoring proposals from the request

for concept proposals. they will be invited to participate in the long-term rfp. it will ask for a higher level detail plan and financial information and details about the proposed operation and management plan. as i presented before we have a really fantastic team of folks helping with this process. jan brooks from the foundation has been such an incredible partner and responsible for the $21 million renovation of the rotundum completed in 2011. they have been a great asset and they also funded some of the help from our partners, including mark italian from the architecture firm. this has been really helpful in talking to potential bidders.

it's part of the concept so folks can get an idea with the challenges and features of the building. we are also working with lynn said way of consulting and i'm talk more about that in a moment. we have some key terms as part of this opportunity. one is restoring the palace of fine arts and we want to make sure this is around for another hundred years. we need a viable tenant. there is an amount of infrastructure which is required which i will talk about. we want a tenant that the compliment the existing amenities in the surrounding area and enhance the park. we are looking for public access to the space and what will continually engage the public for a term. we are interested in a central entry way concept.

bernard may back, the architect of the building envisioned a connection between a lag oon and the rotundum. we are interested in proposals that include restoring and retaining and operating the palace fine arts theatre by the theatre group. we have two mandatory requirements, one that it must be a recreational purpose. that will be up to the commission to interpret. the commission in the past has interpreted restaurant uses, museum type uses and theatre use among many other interpretations. the new tenant must be able to finance the required structural improvements to the building. those required improvements range from

about $8-15 million the reason for the large discrepancy is there are some recommended improvements as part of the study. the billion -- building was seismically retrofitted. depend og on the use, they may want to put those infrastructure in, if you touch the wall, you trigger seismic code update. that's the reason why we have this large discrepancy in the number. the improvements that require electrical, mechanical, and plumbing and improvement as well. those are detailed in the report. so, i have some images here that sort of show the central entry way flow that i talked about. this is may beck vision. this is a sketch done by ehcd.

we would really love to keep that atrium open for public access if possible. this is a rendering that we asked acd to do for us to show the connectivity between the rotundum and palace which you will see in the skylights. this is an exciting opportunity and this doesn't include those investment nags i talked -- figures that i talked about. this is the space that was original skylights and other uses have put material over the skylights to control the lighting environment. this is a really interesting study to show that you can open portions of them to open up the building and control not only light but also heat.

>> so because we are talking about the balance of fine arts. this building is very unique and historic and very well loved by the public. it's an important piece of history to the city when you talk about the rebirth of san francisco after the earthquake. this is still a very tangible piece of that history. we want to really engage the public as much as possible. and in 2012 we had two public meetings to solicit information from the public to discuss what they want in this space. that information was implemented in this document and included in the criteria. we assembled a really incredible group of people to give us some input on sdurd -- desired uses and the priority for the space.

the feedback has also been incorporated to the concept proposals. we presented the terms and conditions to the public, late august, august 28th. so again, this advisory committee was really incredible wealth of information that they provided for us. before we engage them we provided them with the historic information about the building, historical uses and the conditions assessment report. we had a presentation for an ehdc and then went into discussion. i won't talk about every single advisory committee member but this slide gives a real idea of the kind of talent that we had on this committee, the broad representation that they each brought to the table, but we had community groups, merchant groups, folks from sf travel and

chamber and information from the supervisors as well as our commissioner low. the advisory committee offered some fairly high level categories of use that they would like to see in this space. a museum type use, educational use, sports facility possibly performing art space and exhibition space, a venue or merchant retail space as possible use. i talked about some desired outcomes that the committee wanted to see as part of this opportunity. they want to see that the building offers a portion of the building to be open to the public. includes strategies to parking and traffic. this is in the middle of a residential neighborhood. so parking and traffic impacts are real to the area and the local neighborhoods. we definitely want to

consider that. they want to contain a performing arts space and possibly utilize green building practices and making sure this is compatible with the adjacent outdoor space and reflecting cohesive use in the area with independence. i came from the preacid i don't presidio meeting this morning and talked about the high level architectural plans and how that pans out with the fine arts and what that space will look like in a decade and two 2 decades. it's family-friendly. we had the exploratoria there for the city. it was a tradition or a desired quality of the space for a long-term

tenant. celebrates the history of the building and the work of bernard may beck and options for food and dining. we also had a similar practice as i mentioned with the public. we received input from them as to the process. a lot of the uses is very similar to what the advisory committee suggests affordable community space, used targeted for children and families, museum for san francisco, museum for the wine industry, museum for the pipe organ, studio space for artist, general educational uses, possible living roof concepts and cultural uses and art faction and interpretation from the ppie. we do propose a very robust marketing strategy as part of this

opportunity. we want to make sure as many entities as possible get exposure to this. we don't want to only reach out to those that have interest in this opportunity but reaching out to the types of uses from the public and the advisory committee. we'll do the normal posting on our website, the city's contracting website and office of small business. we'll sent to commercial real estate company and also working with our press team on some good proactive hopefully national coverage so this is larger than just a san francisco issue. so today you are asked to consider the draft of the question for concept proposals and to authorize the general manager to issue their request for concept proposals. we are still finalizing some details from the attorney asking for additional financial information and because we are asking for a

large investment in this sight is -- site we are asking for an entity that has that final capability. we are actually going to post all of the opportunities that we receive on our website, all the responses, we are working with it folks for creating a venue for folks to comment. for folks who can't come to a public meeting, they can comment on our website. we will also once we have some responses for the request for concept proposals we'll come here to introduce them as informational item and come to you for our normal selection process when we have a recommendation and get the authorization and get a full blown proposal which i will probably present at the same time. once we have those responses for the rfp we also anticipate

posting thoechlts and -- those. i won't go through all the steps because they are steps that you are very familiar with. tht require approval by the board of supervisors and engaging in community level and to consider the lease. it will trigger the thresholds to go through the board of supervisors and preservationist and others. that concludes my presentation and happy to answer any questions about the process, thank you so much. >> thank you. is there any additional public comment? seeing none, public comment is closed. >> commissioner lowe? i do want to say, a request for concept proposal, the staff did a great job of creating what

was a culmination of two very detailed committee meetings, advisory committee meeting and captured all of those concepts and learning in a past project of this area, i want to make sure we reach out to those communities and neighborhood groups who have raised concerns on past park projects. >> absolutely commissioner, low. i have a pretty robust kind of community outreach list. i have kept them in the loop even with the interim tennants i have invited them to the community meetings and commission meetings and i have invited them to hear presentations similar to what i gave you today late last month. we'll continue to engage those groups with recommendations from supervisor ferrel's office. >> as long as we keep that transparency going, that will be important in future selection

of ultimate operator for the palace. >> i agree. >> seeing no other comments, cassandra let me congratulate you and the staff on the collateral material. i think it's a very first class for a very important process. i thank you for the extensive community outreach elements for this program. this is probably once in a lifetime opportunity inform that kind of investment to be given by a long term tenant. no other comments? yes? >> a note. we got the general thematic scope of kinds of vechlts. investments. is there a ballpark of what that potentially means? >> we actually have it partitioned out between if you invest in the entire

building or just the old exploratoria side. we want to make sure that it's a viable theatre option comes forward that they are able to come to this sight or partner with another organization. our requirement is that the building has the improvements that we are looking for. it's a low end of $8 million investment and goes up to about $15 million. those figures were based in 2012. i can imagine they have risen and do not include soft cost and other improvements. >> we can entertain a motion to authorize the general manager to proceed. >> so moved. >> second. >> all in favor say, "aye". >> aye. >> thank you. >> we are on item 9.

is is there any additional public comment? seeing none, public comment is closed. we are on item 10. commissioners matters. >> don't see any. >> item 10 is closed. item 11, agenda setting? none. item 12. communication. nothing. item 13, adjournment. >> so moved. >> second. all in favor say, "aye". >> aye. >> thanks for coming out. we are adjourned. [ meeting is adjourned ] >> >>

>> on december 28, 1912. san francisco mayor, sonny jim

rolph stared into the crowds of those who have gathered. a moment in history. the birth of a publicly own transit system. san francisco municipal railway. muni as it would become to be known. happy birthday, muni, here is to the next 100 years. the birth of muni had been a long-time coming. over the years the city was disjointed privately owned companies. horses and steam and electric-powered vehicles. creating a hodgepodge of transit options. none of them particularly satisfying to city residents. the city transit system like the city itself would have changes

during the san francisco earthquake. the transition that will pursue from this aftermath would change san francisco's transportation system once again. facilitated by city boss, abe ruth, ushering in the electric city car. the writing was on the wall. the clammer had begun for the experiment including public transit people. owned by the people and for the people. the idea of a consolidated city-owned transit system had begun traction. and in 1909, voters went to the polls and created a bond measure to create the people's railway. would become a reality three

years later. on december 28, 1912, mayor sonny rolph introduced the new geary electric streetcar line and the new san francisco railway. that he said would be the nucleus that would host the city. and san francisco gave further incentive to expand the city's network. a project by way of tunnel leading into chinatown by way of north beach. in december the first streetcar was driven into the tunnel. just two years after its berth, muni had added two lines. and k, l and m lines that span

out from westportal. in 1928, the j line opened heading west to the beach. in 1944 san francisco voters finally approved muni take-over of the market street railway. by then motor bus and trolley bus improvement had given them the ability to conquer san francisco's hills. after the war most of the street-car lines would be replaced with motor or trolley bus service. in 1947, the mayor recommended replacing two lines with motor coaches. and it appeared that san francisco's iconic cable cars had seen their final days. entered mrs. cluskin, the leader to save the cable cars.

arguing that the cable cars were a symbol of the city, and she entered a charter placed on the november ballot. it passed overwhelmly. the california street cable railway was purchased by the city in 1952. there were cut backs on the cable car system and in 1957 only three lines would remain. the three lines that exist today. in 1964 the cable car's future as part of california's transit system was sealed when it was proclaimed a national historic landmark. in february, 1980, muni metro were officially inaugurated.

in that same year, muni received its first fleet of buses equipped with wheelchair lifts. in 1982 when the cable car had a shut-down, they added an alternative attraction to the cars. the festival was a huge hit and would continue for the next four summers in a permanent f-line that would extend all the way to fisherman's wharf, by 2000 the f-line was in place. and in 2007 muni extended the third line to the southeast corner and returning to third street. for the first time in 60 years. in the course of last 100 years,

muni's diverse workforce forged by men and women of innovation have reflected the many cultures that flock to the city. muni's ground-breaking antidiscrimination has guaranteed equal opportunity for all. the city's policy mandates the course for the future, as they work diligently to increase options and increase multialternatives, and deduce -- reduce the carbon footprint. it continues to improve the systems. during this sen -- centennial year we reflect on the transit system. driven not.

director brinkman present. >> director borden. >> here. >> director lee. >> directors please