the embarcadero stretches up to 20 feet in plagss, which is plenty of -- places, which is plenty of room to accommodate pedestrians and pedi cabs. if you feel that creates an unsafe environment for f pedestrians, and it may, let's paint a two way cycle track on the promenade. all it takes is some green paint. whatever the solution is, protecting the people who ride on the embarcadero should be your number one priority. these are people's lives. what is more important? 2022 and beyond is not an acceptable timeline to prevent death, so please figure out how to protect bikers now. and i made -- i took a few photos from berlin and taiwan and make a little mock up on

what this protected libike lan could look like on the promenade. >> thank you. henry. >> good evening, everyone. my name is hank coates. i live in the marina district, and for the last 15 years, i've been biking to my job. i ride along unprotected bike lanes the whole way and that provides to me a false sense of security. why is this the case? because the bike lanes are unprotected, and what's more frightening is the speed limit on the embarcadero is 30 miles an hour and many vehicles on there drive considerably faster, especially in the morning. i think vision zero says you can survive a traffic accident if the speed is 20 miles an hour or less, and i would encourage the city to reduce the speed limit on the embarcadero to 25 or 20 miles

an hour. i also find vehicles double parking in the bike lanes for unloading and loading passengers, drivers look at their phones when driving. i haven't seen anything mention that, but the risk that it places bicyclists under. times when i'm biking in the morning, i go around 6:45, 7:00 in the morning, and cars cutting in the bike lane to get around the cars. for the america's cup in 2013, bicycle lanes were painted green, and this past year, soft hit posts were installed around the battery intersection

providing a little bit of feeling driving through there. just a few weeks ago, we know that a pedi cab driver was killed. you've got this eerie white bike called ghost bikes parked at the site of that accident. it just reminds me every time that i go through that intersection that someone's going to be next. i recall going to the pier one event a couple of years ago talking about the bike lanes, talking about the next event that's happening there, but it appears that the ball has been dropped until there's something more concerning to everyone. i think city leaders need to step up and take the necessary steps to end further delays on the embarcadero project. as someone who bikes and walks regularly, i strongly urge the m.t.a. to implement further hot

spot improvements, diminish speeds of the car and prevent drivers from blocking bicycle lanes. san francisco residents want a better embarcadero made safe for all users of the streets. the city needs to improvement -- commit to these improvements fund and construction the project by 2022. we need leadership that enables all users of the road to enjoy it equally. thank you. >> thank you. thank you very much. [applause] >> is there any other public comment? [inaudible] >> well, if you'd like to come to the mic, feel free -- [inaudible] >> no, you need to come to the mic. >> all right. ist i was -- >> your name. >> i was -- i'm sierra

fitsgerald. there's a bunch of us here, and we're all really angry about what happened and want to see something. thank you. >> thank you. is there any other public comment? [applause] >> good afternoon again i'm alice rogers and this time i'm speaking as the president of the south beach rincon mission bay neighborhood association and also as a working group member. i sat through three years with grappling with all of the issues that you have to deal with without understanding how difficult amongst your many others is. so i understand the difficulty in moving forward, and the -- the additional difficulty that the seawall and all of its constructions bring to the table, but i am also here to encourage some really expedited and creative solutions in the

near term. we just can't wait, as all of these people much more eloquently said. the embarcadero i'm sure will eventually be a model masterpiece of the shared mobility network, but let's start now? and it's going to be even more complicated because it's not just bikes and pedi cabs, and we pedestrians that are trying to hide from everybody. that's all the other shared mobility devices, and we need to start planning it and accommodating and regulating those, as well. so i don't envy your task, but i join all others in asking you to step up to it now. thank you. >> thank you. is there anymore public comments? seeing none, public comment is

closed. thank you, everyone, for your words. commissioner gilman? >> i have a couple of statements, and i actually have a couple of questions for m.t.a. and port staff. first of all as a commissioner, a walker and a nondriver, i was to stress all of our commitment to the safety of everyone along the embarcadero and the walkways, in particular our pedi cab drivers who help us with our tourism and help bring visitors all along the waterfront. as someone who lives in north beach, just really want to say we are all devastated by the tragedy, even if we didn't know your colleague and friend, and i don't want you to think that we weren't. i do think we need to look at, and some of the questions will be how we can speed up these interim safety improvements? because we have to look at the safety of everyone. our bicyclists, our pedi cab driver, but ultimately our pedestrians along the

embarcadero, and if we're asking bicyclists not to be on the shared pathway, if we're asking them to have a preferred route that commingles them with cars, i feel like we have a responsibility to make sure they're safe and also ensure that pedestrians are safe. so as a new commissioner who's only bg on the commission for a couple of months, i guess i'd like to understand what the delays have been in the short-term improvements? when we look at the slide that's been presented to us, it'll be done in 2019. does that mean january 1, 2019 it will all be completed? does that mean a year from now? i'd like to understand what's going on with the short-term improvements that folks were engaging with the community back in 2016. >> so the short-term improvement identified for the southbound embarcadero lanes, we think we can move quickly and get those in the ground this year that. as what we're committing to.

partly because when we did similar changes in the southern section of the embarcadero, we did go ahead and approve environmentally the southbound changes, so that helps us get ahead of the curve a little bit. the other charges -- largely, i'm referring to the battery sansome, which is largely off of the port jurisdiction, we need to go through that progress but that'll taken a little bit longer, but we are still talking about a relatively quick process, where sansome and broadway to embarcadero. we're not taking away travel lanes or parking, we think we can just reorganize the road way, but have to go through the environmental planning and approval process. i say 2019, we're looking at the first quarter 2019 to get that project to broadway, implement it, and then there's thoughts to take that further to the financial district, perhaps shifting to a different street. we don't want to over commit, but certainly looking at how we

can take that further into the downtown core in that same time frame. >> okay. i have a question, i guess, for port staff. it may be very, very high level, if someone can breakdown fr me what the -- for me what the different jurisdictions are in the mta because i feel like we're being asked by the public to expedite this process, and i'm unclear what authority we really have. >> i can answer the question. the sfmta is responsible for traffic safety on the embarcadero and for implementing the embarcadero safety project and other safety projects. our goal is to collaborate with the sfmta to help them talk with our stakeholders, whether it be pedi cab drivers, our tenants, and provide them space for open houses, etc., and to advocate for improvements on our property. there are things that we've done in concert with sfmta

around the america's cup when we had pilot projects. we've had pilot projects in south beach, so we are the property owner. we are not responsible for -- it's not that we don't have staff, budget, or expertise to provide for safety improvements along road ways. that is not what we do, but we -- our sfmta partner does those things and we support them wholeheartedly and their endeavor to do so. >> that's all for right now. >> commissioner woo ho. >> first of all, i want to thank the public for coming today, and i also do want to thank, also the sfmta. i think we need to narrow the gap between what both sides are trying to do. it was a devastating loss to hear about the pedi cab driver, it seems a lot of what we're talking about is just organization and figuring out

the priorities here. so it's very sad to hear that public safety is everybody's concern, and as much as the deputy director forbes has just mentioned, that our authority as the port and the port commission is somewhat limited in terms of execution, we can certainly encourage and work more closely and hopefully take the message also back to the mayor's office that this is a huge issue that needs to be addressed. and i'm wondering, in terms of the urgency and whether financed funding has been an issue to get this project. has that been an issue in terms of the m.t.a., is the funding in place and can you expedite funding to get this moving because in many cases, sometimes execution is hinders by the fact that funding is not in place. >> yes, commissioners. i'm tom mcguire i'm the director of the sustainable streets at the m.t.a. so funding is a key concern

here. and the reason we're talking about doing an open house in october, the reason we're talking about reaching agreements about what our vision for the embarcadero, the enhancement would look like is because we're really at the end of a planning stage right now. what we're not able to do at this point is say we have all the money at the end to see this point. it implores the m.t.a. to find those funding sources, put them together in a creative way. >> a couple things. one we've had a vision zero policy that was more directed at pedestrians, but it seems like we should expand vision zero to include all of our bicyclists. i think as allison mentioned, as much as the bicyclists don't want us to talk about other shared mobility, but the fact is we are going to have other shared mobility devices, so we need to have a short and a long-term plan to accommodate the other devices that are

going to hit the city streets mp mplt. we are kbg to have more demand, and we need to figure it out, and i think on the funding side, which i surmise was probably one of the reasons this hasn't moved faster is there has to be a much stronger collective voice, and you all sitting here in the audience, you can certainly make that case. we just passed an $11 billion budget, so i don't know if that was included in this to make it a priority. i can't imagine that painting the sidewalks and putting some posts is going to cost that much, but it obviously costs money, so -- but we need to figure out if it's allocated, and then, the d.p.w. can help you move faster. if you can take that message back, we at the port commission would push to have the funding in place to get you to move

faster. we're not asking you to move faster, but we support all the measures that you have mentioned. and then, i was happy to hear some of the -- i think there's some she specific tactical suggestions from the audience. i think one of the questions that i had was mentioned one of the public -- what other cities have learned in terms of when there's limiting space, and what was interesting to hear about taiwan and berlin, they started using sidewalk because there's only so much space on the road way. if we have to lose the parking revenue for public safety, that's the tradeoff that we will have to understand and make, and that's something that the port should come back and respond to us, because some of it was our parking space, not just all the city ka's parking space. i think that -- i think the

other is whether we can -- also, i never heard anything about smart traffic lights. you know, sometimes you sit a a light and there's no traffic. seems we should be figuring out how to have smart traffic lights and maybe more video cameras to capture -- and if people know that there's cameras on the streets, you watch some of the television channels, cctv is there, it did he pers people's behavior. it changes people's behavior, so i think that's something also to take a look at. i guess lastly, i want to say while this is really about public safety, overall, it's not this unrelated to traffic congestion. and the area that i always bring up is when we have a cruise ship come in, wow, traffic on the embarcadero becomes impossible. so i think that the m.t.a. is considering along with all of these other issues, along with

public safety is it is related to congestion overall and what are we doing about is it? >> commissioner makras. >> i think i agree with everything that was said by this commission. you definitely had a sense of your way but i guess we can just say we sit here and support it or we can get a little more active. so i would say -- [please stand

by]. >> and then we, as the port could engage, the public could engage. but my guess is, my hope would be is that the m.t.a. has already done that, but it doesn't really sound like there's a full funding mechanism out there. i would suggest that we should have you guys come back, and we as the customer, 'cause everybody on the waterfront is our customers, and we are as the front row of the city. and this past election we had, one of the most profound statements everyone said is safety in a variety of different ways. and this is one of them and wrer and we are better landlords if we manage the streets, to everyone's benefit. and that's what we should pay attention to. and i would encourage the

director to bring back the stakeholders in this and put the basis plusiness plan in fr us and then the commission could be proactive in doing what we do with other agencies to the best of our ability. and if the others aren't the lead agency, i would gladly recommend we should be the lead agency for our jurisdiction in mandating what we believe the right thing to do is. for me, i like playing by rules, but if we have a safety issue, i am not going to be held back on putting some barrier for safety over an environmental analysis and review. i'd rather take the risk on the end of the environmental person, and my defense is going to be we did what is smart and safe for the public. [applause] >> i promise you all if we have a wave the other way, good

business is not being reactionary. good business is seeing the need and correcting it. and i would ask everybody, m.t.a., the port, all the members of the public, tell me who's on the other side on this issue? tell me who's telling us, slow it down. tell us who's saying that we need more process. tell me who's saying the money should go somewhere else, and let's hear that side of the equation. but if we don't have that side of the equation, then we should have a business plan, and we should speed it up, and we should get it done. >> thank you. casey, thank you for the presentation. i want to thank all the public for showing up today. this -- this item is something that was -- is critical to all

of us, and all of us were devastated by the loss. and i want everyone to know that at our last meeting, we had a moment of silence for kevin and we closed the meeting in his honor. so this is an issue that we do take seriously, and we really all have to work together to figure out how to quickly make improvements to keep everybody along the waterfront safe. and so, you know, my question is what can the port do to help speet speed up the improvements? >> i think several of the comments that the public has made and the commission has made are thing that's we can do. we need to collaborate -- we are collaborating with the sfmta, and i think we need to collaborate more affirmatively on short-term improvements because the two way bike lane, wow, it's definitely the goal, and that's where we're heading

to. we have to be very mindful of what happens in the two years or three years or four years in between that time because we want it to be much safer. so there are near term improvements that the sfmta has made. i was also somewhat surprised by the injury number. i actually asked my staff, isn't this a citywide figure, or please check, is this really the embarcadero? that was a very alarming figure. i think we should be tracking how we're doing with that data and what the near term improvements are buying us and how to advance those. i also think the board might be a resource in funding, maybe in terms of bridge funding and other sources that we might be able to bring to the table to help things along, and we can discuss that. so i think there is more we can

do. i am very pleased that the commission's provided the forum to hear from the community. it's clearly a very, very, very deeply important issue, so i think we have a call to action to continue what we're doing and really, i would suggest focus on the short-term safety improvements. >> so when do you think that someone can come back to us with a plan of action? >> i think we can come back with a plan of action in a month or two? what do you think? >> we can come back with a month or two with a plan of action. we can come back a little after that and tell you what we've done. we're thinking of getting rid of the floating bike lane and put in a permanent bike lane. we would look to come back in october and say we've come back with this. >> i would a october because it gives us a chance to look at the data and chart out the

various processes that we'd like to see on the ground. >> great. thank you. thank you very much. thank you, everyone. >> thank you. >> clerk: item 12-a, informational presentation regarding the proposed development under the exclusive negotiation with tck broadway, llc for the lease and development of 180-300 room hotels, a dinner theater, a 14,000 square foot public open space, and portions of under improved vallejo and davies street right-of-ways on the west side of embarcadero at davys street and the proposed amendment to the exclusive negotiation agreement. >> good afternoon, president kimberly brandon. >> excuse me one second. >> i'm sorry. >> i'm sorry. thank you, president brandon. just for the record, i need to

disclose that jay wallace who's a partner of tck broadway llc serves on the board of directors of community housing partnership, which employs me. i think i need to do that disclosure before we start the item. >> thank you. >> okay. thank you for that disclosure. starting again, my name is ricky tigani, i'm the real estate development manager with the real estate and development division of the port. i'm excited to be here to finally give you an update on this project. it's been a while since we were here. so before i get started, i'm going to provide just a quick overview or outline of my presentation today. i'm going to briefly discuss the agreement that has given us

the exclusive right to negotiation with the port, the progress we've made, and why it's taking us to long to provide this update because it's been almost 2.5 years ago when you handed us the task sheet. just a few items to be completed. and then, talk a little bit about the ongoing lease negotiations that we will be carving in the next couple of months before we come back to you with the next steps. first of all, let me just over you an overall rendition of the site. currently, it's going to consist of seawall lot 323 and 324, and two triangular lots. the location is on broadway and

front. one of the attributes of this site is the easy access to all modes of transportation. the area is approximately 57,000 square feet. combined use is office parking with s.p. plus height parking, which is a parking operator that took over this very recently. [inaudible] >> -- the height limit is 4 40 feet, and the object trust restriction, and the design and assess guidelines -- [inaudible] >> -- the neighborhood includes -- include the northeast waterfront to 32

street. it's gateway to north beach and chinatown. the -- [inaudible] >> -- with a fourth six month extension with an eyesight, the developer and northwest are expecting that we will get this projector get entitlement done within a year, but however, we anticipated that often times in the land use process, and counsel going back to the community, getting consent on the design takes a little bit of a time and that is the reason for providing for those opportunity for extensions. the purpose of the e.n.a. is to provide a exclusive right for the developer so in the internal the project's not going to be impacted from outside parties, so they have

that right to provide for a number of predevelopment tasks that need to be completed within a set time frame. and of course, there's a fee required for them to tie up the property or have that opportunity. and of course, being -- as part of the update, we are providing for you to this case as being in full compliance with the e.n.a. they pay all the fees that have been required. they demonstrated progress in the project. some of the delay is solely out of their control because it's at the land use committee. [inaudible] >> -- they've exhausted the extension that was provided, so the e.n.a. was fired on

november 4 of this year, unless it's stebdcommended by commission, which we'll -- extended by the commission which we'll be coming back and asking you to approve. [inaudible] >> -- they have a basic concept development in mind. so we having to go back, do the own work, and give us an updated design concept, and i would think the time for that was provided. and i'll continue on this slide that's met many of those requirements all the way through number seven. you see where the yes, yes, yes. but interestingly when you look at item number 14, that was to actually get an approval of the lease in sept 2016, so it goes back to the issue as to why

it's taking that long to get to where we are? i'm going to flip back to the previously slide, so just demonstrating the progress that we made today. we're still working on the due diligence, even though we say yes, it's completed, but usually, when they say feedback from the review body, they may need to go back and do some additional due diligence work. so there are a few things that we need to get completed before we come back with an approval of the lease to move the development forward. as i just indicated, given the nature of the site, this location in the unique urban context, the waterfront promenade. project description is taking a little bit longer than had been

anticipated. the parcel description from the planning point of view is very, very critical until actually complete because it drives everything else that needed to be done. the developers are very, very busy. they've been pursuing this project from multiple tracks. here, if met with over -- they've met with over 15 separate community groups trying to get input. design track, they go to the planning department -- [inaudible] >> -- as well as the park waterfront design advisory committee. there are many studies that they've had to conduct including site investigation studies, research evaluation,

archaeological, and others. on the financing side, we've already made a number of progress, including talking to various lenders and a packet we're going to bring forward as well as a presentation to multiple city departments. we are then having presidio holding, l.l.c. -- [inaudible] >> -- when i hand over the project to them, they've been able to refine the project to appoint where is more financeable indicated to the

developer, and you can see the initial proposal that was presented to you back in 2015, and the new and where they are currently. i'm not going to go through all the details, but what we do know is the estimating cost is going to $135 million, 10 million than it was before, but it will be a whole lot higher than this. they eliminated below grade parking to reduce excavation costs, as well as -- as well as to increase the number of hotel rooms that we built. and as part of for the public benefit now, the public park is 14,000 square feet. so the park is larger than we

had anticipated. moving right along, here is a view of the development. the term sheet, i'm just providing a refresher for what those terms were, even though we negotiated almost 2.5 years ago, it's a 50 year term with a 25 year extension. park is not putting any money into the project, and in the end, approval is going to be required from you, the planning commission, port commission, planning commission, and the board of supervisors. this is joseph pugh. i asked to how we were looking at the minimum bids range at that time. on top of this table is the

packing operation. currently, we're indicating $960,000 a year because that rent we have with the current operator, the minimum is 960, but that hasn't been confirmed yet, and we hope that is actually that. for the actual project, we're looking at 915. i won't go through all of the details, if you have questions, i will come back to provide additional information. these are the key major points in the lease, when the rent will be reset to take into consideration of current market conditions at that time. and in terms of the presentation, i indicated in my presentation that we will be coming back for our e.n.a.,

with a targeting date of september 25. we will be encouraging you to provide an extension to give the developer an opportunity to finish the work that they're doing. given that environmental evaluation. so this already -- i'm not going to go through them completely. and at this point, if you will indulge me, i will introduce the developer to the case, introducing you to the rest of his development partners that are here and he'll walk you through a few of the drawings. may i? >> thank you. >> all right. >> madam president, commissioners, my name is darius anderson, principle with kenwood investments as well as the sponsor of the t.z.k. project. i want to start by thanking the staff, ricky and everybody else at the port because this has been a long process. we are extremely excite bd it

because i think this really -- excited about it because i think this really started private partnerships to protect the arts. when we originally came to you, we went ahead and talked about the need to secure a theater location to protect that theater show called t.c.k., and we have something to do that. everyone who knows me knows i'm not a hotel operator. i'm a development guy. we went out and got presidio hotel group or presidio holdings has agreed to be our partner on this project. and we think they bring, you know, the breadth and depth of experience, not only with regard to hotel operations, but two things that make us very

proud is they were positive in response in operating with the union, and we are very proud of the sponsor and the commitment that we've had from our brothers and sisters in all of the unions, the trades and h. e. e.r.e. to have their support of the project. [please stand by] in san

francisco and with finally a project with which we have taken a look at many projects in the city. but this project came to us in a manner where the complexities were certainly numerous, to say. and our partnership with kenwood has proven to be one where our ability to execute and the overall complexity of the project we have completed

on a number of occasions is one we feel we are the right developer and partner for this project. so we are very thankful for darius and his group, as well as t.z.k. to introduce us and be part of this project. thank you. >> thank you. >> and realistically this wouldn't have been possible, if we were just developers we wouldn't be here. you had to have a hook or something that had the panache and i want to bring up norm, the founder of t.d.k. i want to tell you what's exciting where norm is in his career right now, originally when they came to san francisco, they were operating in seattle. but today i'm proud to say they now have a new development going on in chicago so they are expanding their footprint. and they have a new project that's being developed outside of the seattle area and norm will update you on that. from our standpoint he has been a great partner.

unbelievably patient. every single project they have has beat our time frames. so we hope at this point we will finally get approved, start construction so we can open up the theater sometime soon. so with that i will go ahead and bring up norm. >> good afternoon, everybody. it's been a while. i've been up here before. i really appreciate the commission has gone along with this project as it's gone through its twists and turns. taking a basic idea of combining a private business with a cultural institution and try to figure out how to make that work over the next 50 and i hope 66 years was a terrific idea. it's been done in other cities. it wasn't easy to do but we are nearing the finish line right now and we like very much to come back and celebrate the beautiful whacky world of san

francisco tradition and circus cabaret, and to enliven the park which is there we hope to call the joan baez park since she was one of the founding ladies for a long time. thank you very much. if you have any other questions i would be happy to answer them. >> thank you. >> and now i will bring jay wallace, my partner who has been diligent working with ricky and putting together the details for you. jay, come on up. >> good afternoon madam president, commissioners, jay. i want to just give you a sense of what the project is. as ricky said, we are living

within the 44 height limit. it's a 44-story building. no parking on the site. it's all off-site parking. we have an agreement with amco, in park to do valet parking like they do at the vitali. we have been through, like ricky said, hundreds of community groups. this is what the community and planning department and historic preservation folks have concluded is the right design. you could see there's the ground level. you are looking at the embarcadero, all commercial retail restaurant bar activated ground level space. at the right side as i'm looking at it right side is the glass gazebo. inside the glass gazebo is the historic 100 year speegle tent the performance will take place in. and to the far right of this

embarcadero site will be where the park is. there are three levels of guest rooms above and there is a bar and gathering space on the rooftop that looks out on the embarcadero. at the top, on the roof, you will see a number of shades and areas where we are hiding our rooftop mechanical but it's really a compact small light weight building that fully integrates the theater into the hotel. we spent a number of years, here is the davis side and there's the park, when you are looking at the park, the top fixture. you are at the corner of green and the ex -- embarcadero looking south toward the embarcadero. you would see the tent and that area in the tent. for this purpose i thought i

brought my, but as you get there, the park would be a major feature of what we are doing, including the area at the end of the tent which would be an indoor/outdoor area of the public. leading on to the park. there's a view of the park. as ricky mentioned, we work closely with the park staff and planning department on this fabulous new amenity and look forward to bringing that online. this is the corner of davis and vallejo street where the stub of the street ends and we will be dressing that up with the back of the house and art work, public art in the park. there's a view what it might look like in the evening. we are really excited to be here. we spent 19-20 months in the

planning department going through all the studies ricky mentioned. and we expect to have the initial study published and on the street within two weeks. so we are well on our way to having our entitlement process beginning in ernest, so thank you very much and i'll be happy to answer any questions. >> president k. brandon: thank you. >> commission, that concludes the presentation. >> president k. brandon: thank you. danny campbell? >> thank you, madam president, commissioners. danny campbell. i'm a representative with the sheet metal workers, local 104. i want to say briefly jay and his team reached out very early to us in the san francisco building trades unions and committed to partner with our

local union contractors here. which, as a result will mean good careers for local residents and our city's use through state-approved apprenticeship programs. they listened to our concerns very early on. and we are excited seeing the theater returning as darius mentiond in san francisco. it's a great project. my colleague, just to confirm what darius said, my colleague ian lewis with the hotel workers was here earlier but had to leave. he wanted me to convey their support for the project. so thank you. >> president k. brandon: thank you. is there any other public comment? >> president and commissioners,my name is bob hare, here representing the

barbory coast and i serve on the new-ag group. this is smack dab in the middle of our neighborhood association area, so we have been very a tentative to what it is, what it looks like and what it means for the neighborhood. i certainly want to testify to the extent that the project developers have been very open with us. they have been very clear and transparent about their plans. they have been very receptive to comments, any concerns we have, and so we feel it's been a very good dialogue and a very good well done process in certainly dealing with our neighborhood group. we certainly support the project and we hope you -- we would urge you as a board to do everything you could to expedite this project and help it move forward. thank you. >> president k. brandon: thank you. is there any other public

comment? >> good evening, i'm kevin carol, the executive director of the hotel -- i'm here to support the project, i have served on the subcommittee, i'm passionate about the waterfront. our hotel industry and board of directors supports this project. i think it will bring the activation to the waterfront that is exciting, not to mention jobs. an organization and hotel can always bring a lot of activation that will help with keeping activities on the street, really focused on what they should be, which is welcoming our visitors and guests to san francisco. so i would encourage your continued support and i thank you for your time. >> president k. brandon: thank you. is there any other public comment? seeing none, public comment is closed.

commissioner makras? >> delighted to see the neighborhood group support the project. thank you. i would like to start, since this has been an ongoing project for a while, i would like to start with the representative from the theater zin-zin-zanni. if you could share with me, my colleagues. when you were asked to leave for the world cup, walk me through your process as an operator and any promises or perceived promises you believe were part of asking to leave and how you came back? >> well, before we left, to the port and mayor ed lee, at that point, came and supported the notion that they had another

site. it would have been on the water side which we had been on for 12 years but on the other side. and we had been talking about locations with various representative ports for almost 6-7 years before then. always anticipating -- you have to understand we were on a month-to-month lease for 12 years. so we had to be ready, eventually if something happened with that project. at that time i think it was around november, it was offered by the mayor and approved by the board of supervisors that we would have an opportunity to develop the site. on a sole source basis to make sure we stayed in town. we then did a process to develop a new site, similar on a permanent basis. to be honest it wasn't terribly attractive to the neighborhood. also, the lease terms were too short to make it financially

viable. and so we turned to other cities and used some examples like with carnegie hall in new york and guthrie theater in minneapolis where you make a joint venture with a commercial enterprise, could be an apartment building, a hotel, anything. because theaters are only used for three hours a day and you need to be in a part of town where people want to go. they feel safe. and generally property in that part of town doesn't justify a theater being there for such little use. so they have created marriages in other cities and that's when we worked with darius. darius actually worked with us when we first came to san francisco in the year 2000. and helped with the entitlement process on a temporary site. i should say we were set up on a temporary site there. and that went on for 12 years. and you should have seen what

our plywood boards and everything underneath the tent looked like when we got done. we intended to do a permanent site. we jammed together with darius and determined, not an apartment building but a hotel might be the way to go within the height limit which had been established at 40 feet. and that began the process. and that started in 2013. so i think for tenacity we should get a gold star for not giving up on it. i would like to thank darius, and ricky too, for going through this process. >> when you went to the board of supervisors, would you share what the vote was with the board of supervisors? >> yeah. >> we have been to the board of supervisors twice on this project, both times it was 11-0. once we went on the exclusive right to negotiate. and once we went on the term sheet.

they said both times it was 11-0. >> okay, great. in your diagram you show three pieces of art. is that a design or something that's gone through the arts commission something we will see? >> that was a depiction only. a request from john ram that we dress up that corner, because we are putting the tent there. and he wanted people to see this was an important aspect from, i guess that would be the westerly side of vallejo because people will see things on the easterly side of the embark kir -- embarcadero. >> i'm winding down. and then on one of your diagrams you showed what the rent schedule is going to be. if i recall, diagram for the

first year at $960,000. could we see that for a minute, please? there it is. okay, now i see it. okay. thank you for showing it to me. that concludes my questions, madam president. >> president k. brandon: thank you, commissioner gilman. >> i want to thank staff and sponsors for showing us. i'm anxious to get under way and i have no further questions. >> president k. brandon: thank you. i just want to say this has gone through several extensions and i know it was within your executive director's authority. i guess i would like,as a

process, for us to be aware when you keep extending an e and a, i understand there's been lots of issues involved and it's very difficult sometimes to develop in san francisco, but sometimes it's good for us to understand. because i guess, when i think about it from 2012, to the time you probably opened which is 2021 at this point. that's nine years. or is it more? anyway, that's nine years. that's a long time. and i think we need to continue to remind ourselves how difficult and how long it takes to do something. that's not a comment on anyone in particular because there so many agencies and departments involved but it's certainly not a good track record in terms of trying to get something moving here. i just want to make that comment. especially for us, because revenue is critical for us to sustain the port going forward. one other thing i want to understand better, and i

appreciate we have representatives from all the partners. when was prisidio introduced in the venture? >> we began the process of interviewing financial operators and partners probably a year ago. so i think we communicated with the port earlier this year, probably march there was correspondence we introduced we had many meetings with port staff where we introduced prisidio. probably march, april or may when we made the introduction and they have been operating with us in that period of time. >> my next question, could you explain the ownership structure now with presidio kenwood and t.z.k. and how does that work? because to me, now we have

another player in, and the liability in the lease agreement. who was our tenant? >> the structure, t.z.k. broadway l.l.c. is the limited liability company who will be the port's tenant. we will be the master tenant. tiatro's and tianni is not t.z.k. tiatro and zanni who is a partner in t.z.k. will be a sub tenant to t.z.k. the master lessor of the side. presidio and kenwood also. if you have t.z.k. as the entity, three partners, kenwood, tiatro and zanni, presidio tzk is the master lessor, will have its own

sublease. the port will be in contract, is in contract today with t.z.k. broadway l.l.c., the partnership made up of kenwood, tiatro and zanni. >> president k. brandon: my question, it may not be today but when we get the final for the presentation, to understand since the project cost has gone up $10 million, i see the efforts to minimize and given the amount of time, since time always costs money, it's admirable to find ways to make things more efficient in terms of the design. if we could understand exactly how each of the partners are contributing to the holding l.l.c. and the equity and so we need to understand the equity component as well for that component. if you don't have the answer yet today that would be something i think we would be interested in