>> thank you jim, good afternoon, commissioners, we have got two other ideas that we want to share in this presentation, through the southern walter front area. one is not a completely new idea, this was partially improved by someone building a concrete batching facility, and using a similar business model and taking range of there was a

problem and the port ended up terminating that lease and subsequent to that, we came to the port commission around the same time, 2008, the asphalt plans that were located right nearby. >> we have the port commission's blessing issued a request for or a proposals, for an operator of an asphalt plant. asphalt production is very similar to concrete pro-ducks, and that uses the sand and ago go gate and with the similar business model and we have a lot of interest at that prebid conference, but we were at the same time entering that down market in 2008, and received no responses. also, at the time, the city had not figured out how it was going to pay for the street resurfacing in the city. and dpw, was just beginning to get its arms around the

challenge of maintaining a robust, repaving program. and so, that proposal laid dorm ant for a long time and over the past month, we have been approached by dpw and we have a number of dpw staff, and paul, buratis and richard, and patrick here, listening to our discussion today. right now, going down the 101 to get the asphalt in the city and there is interest, because right now we don't have a lot of recycled content in the asphalt in the city and a new, asphalt plant has the technology now to incorporate up to 50 percent recycled content. and so, dpw is also disposing

of a lot of asphalt at a great expense that could easily be recycled and so one of the ideas that we are presenting today and as we need to talk more with the community about is are we interested in pursuing this opportunity, again, and the city, has figured out that it is repaving funding stream, and like in the capitol plan that the city has adopted and i think that they are spending about 45 to 60 million dollars a year, in repaving. so there is a strong market for this material. and i know that it would allow, sustainable crushing to accept the asphalt grindings and make that a more lucrative business opportunity and add to that echo industrial that... was eloquent in describing and so asphalt, batch point looks similar to a batch plant, and it would be managed with the same types of environmental controls as we manage all of

our new industrial tenants in the southern water front and making sure that we have good pest control and maintenance, and we will bring the significant investments and one of the things about the concrete, is that they improve the area and we are hoping that an opportunity like this could bring the similar private investments. and but, the final idea, is also not a new idea. and mentioned that some of the planning work that david bopray led in the southern water front, looking originally at warehouse opportunities which is largely unleased for a very long time. and that work, completed in the early, 2000 time period, found that the lines are so deep in this location, that you have to drive piles 300 feet and it is too costly to build the single

story warehouse buildings with that depth of pile and the economics are not there for it to work. so we went back and renoticed that the similar, and the industrial plots and the mraifd areas freakly in demand, and we started in the initial conversation with the department of public works about designing this and looking at storm water management, and the landscaping improvements and to beautify the area and it looked like a project that would have a very short pay back period and we actually have the funding lined up through a prior bond and an issue ans of the estimated cost was about 8 million dollars, and some of which was soeft cost and some hard costs. and this is something that we would like to open up a information again as this is the kind of vision that we want for the unleased area of the back lands? and we know that there is

market demand for this kind of use and it is a relatively low cost way to pretty significantly improve the look and feel of the yir and to create the jobs for the local residents that is another idea that we are bringing in. and of course, with all of these opportunities, the commission has adopted, the southern water front, policy and a portion of the leased revenues from all of these leases go into a special fund designed to fund job training, and economic development opportunities, and in the community and also in the parks and the other beautifiation project, and so, we, you know, of course, that policy will apply to any new leasing opportunity. and so, as connect steps these are these are staff ideas that have grown out of either market interest, or consultation with

the maritime commerce advisory committee and swak, but they may not be all of the ideas out there, we want to hear what the port commission has to say, and are there other directions that we need to be looking in to folks in the community have the other ideas for how we could improve and beautify and put to better use this other water front property that is under utilized today and after hearing from the commission in the public today, we know that before doing anything, we have to go out into the community and more broadly than our advisory committees, and to some of the neighborhood groups and the merchant groups in the community and see what the people think about these ideas. and then, seek the final direction from the commission. and so, that is, the end of my presentation, and we are all available to answer questions. >> thank you. on the site as you were

mentioning your marketing efforts, about jim and one of the things that are unique about the port is that you have gone to the conferences and you are joined by commissioner adams and we appreciate going with you and sends a message to the support from the iowu, that many other others don't have. thank you. >> and we have it for that. >> and is there any public comment. >> good afternoon commissioners and director moyer and i am eric smith of san francisco bay rail roads, but mr. (inaudible) asked me to convey the san francisco bay railroads continue the commitment in the support and it is great working with the port staff and we love these ideas and the potential not just for the revenue but the job growth and training as well and from everything from

the blue, green, way to pier 96 to pier 80 and we are excited about all of the possibilities and we are there for you and we appreciate all of your efforts and the efforts that the port staff gave us and talking to the up and cal train and i want to say thank you, and we really appreciate it. >> thank you. >> next speaker? >> good afternoon, i am sean bundy, and in northern california and jim presented to you earlier and i think that this is a great opportunity for the san francisco or for the water front. and we certainly will be looking forward to putting in a bid in january, if that comes to fruition, and as, regardless of if we get the bid or another competing company gets the bid, i think that it is great for the port. good luck. >> thank you. >> next speaker?

>> any other speakers? >> hearing none, the public comment is closed. >> commissioners? >> brandon? >> i would like to thank jim conya and brad for a wonderful presentation and i think that was a great overview of the ideas that we are looking at for the pier 80-96 areas. and i think that i have been encouraging the staff for something about two years now to try to come up with a master plan for that area, because it is a valuable piece of property because it is the last maritime heavy used land that we have on the port and so, i have been encouraging the staff to come. because every city department, and everybody thinks that it is valuable also, and so everybody thinks that they want to get the uses whether it is maritime

or not. >> and i have been very consistant and we need to reserve that for primary maritime use and, so, i am glad that wore coming up with ideas and i think that we need a master plan and i think that we need to understand how all of these ideas will work together and for the south east city that has historically had environmental impact because of the heavy industry that we really understand what it is that we are doing out here and how all of these ideas come together and what impact that will have. so, i also think that number one, it has to be reserved for maritime and it really does, and because we have nothing left. and if we are going to increase our maritime business, this is really the only opportunity that we have to do that. and two, i think that we really have it use our advisor group and to do the out reach and we have to, and the individuals on

the water front advisory committee live work or create the jobs within this community and so i think that their input is a very valuable for whatever we are going to do with this area. and back to the entrier mental impacts we really have to understand that and what within our planning process of whatever we are going to do i have not heard anything about the free level rise impact. and understanding what is the fact and understanding what it is that they are going to do out there and so i am going to volunteer as a committee of one or if my fellow commissioner would wants to do a committee of two, to work with the staff to help to develop the ideas for this area. and so commissioner katz? i am impressed to created for the community and to follow the development of this project and because i think that there are a lot of opportunities out there and we do have to take everything into consideration. >> thank you.

>> we will encourage and we look forward to putting together a committee to work with the staff and in the unofficial committee. >> okay. >> and that committee of the commission will be a public subject to the public meeting etc. and i am not, maybe commissioner can talk to you afterwards about what you are volunteering for. >> okay. >> and i am actually volunteering to be an adviser to staff. >> well said. >> thank you. >> it is all welcome, i just want to make sure. >> in the past we have volunteered to take on roles within which is not does require holding public meetings, but i will work with the staff in whatever capacity to help them with the definition of the master plan for this area. great, thank you, commissioners. >> commissioners? >> i appreciate the report, and you know, i have had an

opportunity to go with jim and peter daley, and to give to you (inaudible) and i can tell you that the maritime department is working hard it is vital in the history to this port and i like commissioner brandon have the same passion, and i know when i came on the commission, at the time, they had really jumped right into it and you know, the fire and that fire is still there, and but i will tell you that it is hard, because, what they run up against is because for the competing with the use, and for competing with the stockton and san diego and we are in the charles tonight and all of these other sports who rates and everything are lower, and we are trying to be competitive right? i know that i was with peter and i have been with them and the calls that we have made in china and up all time of day and night and all of these traveling and jim and call and

we can leave with that person and we have to continue to keep going forward and i think that there is a lot of opportunity in this maritime and we can keep pressing forward and we are going to get it. and we need it in china and we rejoined the shanghai calm ber of commerce, and it is a sister city to san francisco. and i think that this iron ore or a lot of these opportunities that i believe are a lot of reality and we got to continue to follow up and that we see that the commissioner brandon to say that she wants to be a part of this and i do too. and that i had asked the committee that jim and peter worked in the force and the iow in december and they are coming here to present a plan and also, we would about the risen and i think that we have a lot of opportunity and i think that with the america's cup not being that and now, i think

that we had all of this land down there and i think that if we use it right we can continue to market. but i think that we are strong when her we go out and market the port and the iow and the port and we go out and we meet with the customers and we tell them that we want your business in san francisco and how much it means to us and i think that brad, and i think that they just did a good job of landing out what we got to do and we can't get weary because we had a couple of set backs and i think that that is a great opportunity. and even though they are built in reno and if we could get in the ships, and the tesa product and be shipped off to china, or over to mexico or down to hawaii or whatever, and i think that that will continue to help us grow, and i remember the day that i got sworn in in july, and mayor lee did say to me, how important maritime means to him. mayor lee is from seattle and

he knows about the ports, and their economic impact and how significant maritime along with the other things in the port that we have. and it is not like a shiny cruise terminal, it is kind of gringy and dirty, but you know what? that is where i come from i come from the working class and it provides jobs and something for our community and it is a part of our culture, and if you think that 80 years ago, this water front which is the plain water front without all of these beautiful buildings and that is what it was, it was going in and out of these ports and at that time, san francisco was the largest port on the west coast and now it is in the la long beam but i think that what we have we don't have to worry about the port, because mostly in the container business, but what we thrive in and like i said many time, what we do best is, cruise ships, and (inaudible) let's do it well, along with the real estate and the rest of the

portfolio, and we have it like a stock if one thing is up and one is down that gives us an opportunity and i think that commissioner you said about the sea over rise and i have legal i enjoyed that presentation that we had when john came to the last condition to talk about the sea level rise but i think that we can work that into the pilot program because i want to know what is a perfect fit for the port of san francisco because there is no report like ours, and we got something that fits us. and what kind of unique, and in the way that we do things and i think that we can find something that incorporates what we want to do. and it is possible maybe, asphalt and concrete plant and everything, i think that maybe we can incorporate all of those. >> thank you. >> i would like to thank brad and jim to their presentations, and very good. and we talked about the iron ore, and all that have is going

to china. yeah, i was in western australia, a few years ago, and in the area and i had family that immigrated there. >> and there and they are building, and two ports a year, and just, and just to cater to the iron ore over from australia, and from japan, and the port and hodlan and preston. and here is the business... and for, australia, and then, you know i am pretty sure that we could do that in many a smaller scale and starting out. and it is a really good idea

and you know, part part of the plans and maybe we, and we need it very badly in san francisco and we need it as close to the job site as possible and we don't want to bring that from across the bay or anything like that. and as long as we do it in a responsible, clean way, i think that it is great. and these two piers that very, and very utilized and i always thought that and i think that we get a lot more out of them and i think that it is pretty much on the right track for that. yeah, good job. >> thank you. i appreciate the port staff. and i think that i would agree with in terms of trying to get

a sense of the master plan of what some of the existing tenants there and the new ideas and how they integrate together and taking into consideration, the environmental impact site and support that and i think that it will be good and i will expound more on that. and i just have a couple of more detailed questions. when we talk about the federal or the 3 million of the federal funding being available for the rail road improvements that are needed? is that for all of the improvements or do we have to look for the funding for the improvement that you note in this presentation >> it was specifically for rehab taiting the lead and the track on the main line and of the ten percent port match on that and so for the other rail improvements one thing that we talked about is that we like to consider, applying for a tiger grant next year and tans roartation, infrastructure, and the economic recovery, and the grants that a lot of the ports

have received over the last several years and we think that is something that we have talked about applying for next year. to pay for the rail improvement portion of it. and the facility, and so that is something that we are talking. >> do you have an estimate of what that will be, and any ballpark? >> 12 to $15 million. >> this is not part of the capitol plan at the moment? >> correct. >> okay. >> and if the port can't come up with a tiger grant or another grapt to pay for that, what we will do is ask the developer if we put this out to bid, to basically pay for those rail improvements. and in exchange for... >> i know that this was not the day to go into the considerations but we are trg to figure out where we invest and how we get the returns, and so there will be more invested required here that we have to figure out the answer is what you are telling me. >> correct. >> the second thing that you

said that industrial usage for the background was because of the cost of the driving the piles, and i am not sure that i fully understand what the another alternatives single story verses multiple, and therefore, single story will be okay and industrial buildings will not be supported? because of the fact that have you to drive the pile down further? i will defer to david, who looked at the industrial warehouse plan and came out of a suggestion that the warehouses will compliment the terminals. >> okay. >> what is fees able. >> what we determined is that 2006, we brought them on to help us to study the potential to build, the warehouses in the

background and as a part of that analysis, most are single story warehouses since we determined that this is not... >> what we can use for the con

construction and what we can see in the backfill and the operations and the construction and lay down, and vehicle storage, and even other self-storage and we see a lot of demand for that today, and in fact, there is a contractor that just leaves two acres of the asphalt batch plant. that translates into the lower revenue? >> this proper use? >> we do proper use and this is about 20 acre and so there are very significant and there are 2.5 million dollars annually, and but that is not, the total universe of the potential uses of the states like this and we did have a very interesting presentation, from the folks who specialize in the structures, and which are

seismically sound structures that don't require the piles, and are sort of covering on them and there is the potential to create the warehouse type of space that has a good looking feel without driving the piles which was something that was not considered before. we actually looked at that as part of the iron ore, and this goes to the master planning suggestion, what are the uses and what is the market. and what the revenue, potential of each of these opportunities, and we look forward to exploring that with you, and coming back to the commission with options. >> out of the total area that is available, how does this area that you are talking about, the existing tenants mentioned in the square faoelt and i am not fast enough with the math here, and we have currently, 45 acres that we are saying that we could develop in

the various things as the asphalt plans and the iron ore terminal and the background improvement, and the existing tenants are taking up how much space? >> the back lands will be 28 acres of leasable area, and 5 acres, i got that. >> i am saying that the existing tenants we are not getting rid of the existing tenants. >> that was between 80 and 96 and not including 80, 65 percent of the area. between the street and the vacant area is the back lands and the site area. and the iron ore site area and it is partially leaked it is not just leased to its capacity. >> and so i am not getting the picture of the universe and how

much occupied and how much is the 45 acres that you are talking about. and so get back to the suggestion of commissioner brandon having a master plan. so that we can understand the whole thing. one in the pier 80. and what i am focusing here is the metro court, leases that area, 69 acres, this whole area, between 92 and 96, is 65 percent leased and it does include, the industrial buildings that are almost 100 percent displayed by the real estate and they have the vacant areas and we have the back lands area and you have the asphalt area and the iron ore terminal area which is not used to the capacity. >> and so, we have a chunk of area that not used. >> thank you. >> and about 30 percent let's.

>> about 30 acres. and 30 acres are available. >> so that area that we are talking about there, is that the landfill or is it the below sea level or what? why, why do we, or would we have to give piles in order to have storage. >> i have never been out there and that is why i am asking. >> and so it is on the landfill, and it is uneven terrain, and so if we built anything, there, it would, the foundation would be unsettled and continue to settle and no one will want to build there without having a stronger foundation and a stronger foundation will require the piles of driving, which is extremely expensive. for the industrial property. and the only think that we can

do here based on the plans in this area is maritime and so, we can only do construction lay down, and storage for, no more than 10 years. and so we can only do the maritime, industrial uses in in area and it does not... (inaudible) that type of infrastructure improvement in this area such as pile driving. does that answer your question? >> yeah. i am kind of, this will continue to, if we don't pile drive, you know, it will have a foundation that will crack and we dent know how far down it will sink. and i know that we have them and some out there that have all of these condos, and built, and in the land that you are talking about and have floating dock where the dock goes up and down with the tides and you will be able to get a