approval of a leaf -- it lease with ortega family enterprises, doing business as stow lake boathouse. >> good evening, commissioners. perhaps more appropriately, good night. the item before you is the stow lake boat house with ortega family enterprises, doing business as stow lake boathouse, llc. in 1991, the city entered into a 15-year lease agreement with the stow lake boathouse corporation. that expired in 2006. the incumbent has been operating the boat house on a month-to- month basis. we twice issued an rfp. we also did that in 2008 and 2009. the department was not able to enter into a long-term lease with an operator for the operation of the stow lake boathouse. on december 17, 2009, the commission approved an rfq package soliciting an entity to operate and perform improvements to the stow lake boathouse. the commission directed staff to undertake a community outreach process and to incorporate certain amendments into the rfq. both of those actions staff undertook before publishing the rfq. on april 5 of 2010, the department received three timely responses to the rfq that was pu

the selection panel selected ortega family enterprises to operate the stow lake boathouse. on august 19, the commission selected ortega and recommended that staff enter into negotiations with them for the operation of the boathouse. before we get into the lease, a little background on the qualifications of ortega and to jog your memory on why we selected them. significant experience operating in park locations, including at a national monument, white sands national monument, bandoliers national monument, and others. 22 years of boat rental experience through their partner in this endeavor. they have significant experience with their restaurateur, who has run an american box restaurant. they are tenderloin-based establishments. mr. klein has taken over the discovery cafe at the children's museum. the least you have before you is a 15-year lease. it would commence on march 1 of 2011 and terminate on february 28, of 2026. there would be one potential five-year extension for the operation of the boat rental, food and beverage, and a small retail concession. the minimum rent wou

million dollars in capital improvements we would see up front into the boat house -- taking stow lake boathouse of the ledger and to the list of places we do not need to worry about. there will be a dedicated capital maintenance fund so that in your 12 or 13 of the lease, we will have a building in great condition, as well as in year one of the lease. the personal property fund, the equipment matches the condition of the building. the purchase of an all new fleet of boats, a rejuvenated experience for users, and rent of $200,000 in year one of the lease. i'll also wanted to talk a little bit about the projected benefits to the local economy of the ortega lease. in addition to the sizable and significant benefits to the city, there are numerous benefits to local economy of the lease. those include the fact that ortega will be working with a local architect and a local construction company. they will be using a local manufacturer to produce all of their furniture on-site. management and staff, pursuant to the expanded food service menu, comes a need for a larger staff. ortega proposes that they w

that $110,000 does not include bike rentals, which are no longer going to be a part of the stow lake boathouse. we wanted to separate them out so we had a true apples to apples comparison. $120,000 for the current lease for the minimum rent. the proposed ortega lis, a minimum of $140,000. the boat rentals are the largest slice of the revenue pie. it would go from 31% of to 33% of revenues. the food and beverage percentages would go from 21% of to 10%. as i said, that reflects the fact that we're implementing a full menu. the industry standard for a cafe or restaurant in terms of their percentage rent is about 6% to 7%. this is aggressive rent we have negotiated. we are confident we will see some revenue come out of that. particularly in the fact that we will go from a situation where people might have been purchasing an average ticket of just a few dollars to perhaps, since they're buying a sandwich and a drink, perhaps we will say a $5 average ticket. we will see growth in that. we project those revenues staying flat. the percentage of gross retail revenues actually goes from 21%. i realize t

hearing will be addressing -- there has been a nomination from the community to nominate the stow lake boathouse as a landmark. this is an informational hearing to determine the appropriateness of that. staff will be present at that hearing and will be expressing the significance we have held over the last few years to treating the boathouse as a historic resources, to working with the historic preservation commission, which, glenn beck overcome all the documentation show our commitment to working with historic preservation in ensuring that any proposed improvements at the site reflect the historic nature of the building, and additionally, approval of any capital improvements will be subject to the approval of this body and the appropriate regulatory bodies including potentially the planning commission and the historic preservation commission. i would like to show a list of some of the supporters and opponents of this project. with that, i make myself available for any questions. >> i met with some community members earlier in the week. the issue that was outstanding for me was the issue of insu

approval of a leaf -- it lease with ortega family enterprises, doing business as stow lake boathouse. >> good evening, commissioners. perhaps more appropriately, good night. the item before you is the stow lake boat house with ortega family enterprises, doing business as stow lake boathouse, llc.

they would work with staff to determine the appropriateness of making docca stow lake boathouse a landmark. should it be decided to be a landmark, we would work with historic preservation commission and the leasee to implement improvements to the building that met the requirements outlined in those documents. commissioner lee: if the improvements, if it restricted your improvements, where a cafe, perhaps, what if you could not do it, what with the remedy be in that case? >> in that case, what the lease provides is that we would essentially work with the city and the of leasee would work with each other to develop an improvement plan. we do believe that the idea of landmarking the interior of the boat house is one that, while we strongly feel is something that should be maintained, the exterior, this idea of maintaining the use rather than the physical attributes of the building is one that department staff would like to have an extended conversation with hpc about. if the interior and exterior of the building were ultimately landmarks, we would work with aleasee to develop an appropriate p

approval of a leaf -- it lease with ortega family enterprises, doing business as stow lake boathouse.

the city is considering hiring an out-of- state company to upgrade the boathouse at stow lake but some people think it should be untouched. mike sugerman on the battle between tradition and progress. >> reporter: if you fell asleep during the eisenhower administration and just week una trip to stow lake would reassure you that things haven't changed very much. >> like twilight zone. >> reporter: in a good way, that's what the general managers of the boathouse and other people think anyway. >> the pink popcorn has been on that side of the shelf for 50, 60 years. >> reporter: not the same popcorn? >> uhm, probably not. >> reporter: but it is that pink popcorn, hot dogs, it's- its and the old-timers ordering them. to make a visit today look like a picture frozen this time a summer campy feel. >> i was just a baby with my mother and father and shot of the boathouse. it was about 1934, '35. >> reporter: and jerry has been coming here since. i have my memories of stow lake, pink popcorn, birds, and the paddle boats where i would get halfway out on the lake and realize i still got go back. an

lake park. we will hear about landmarking the golden gate park. a commissioner was concerned about the boathouse, wanting to separate the nomination. the staff convinced him they could do that in the ottal nomination -- total nomination. they will hear this. and as ms. rogers reported, they did hear the path of gold lamp post. and i am not sure it was unanimous, but sentiments were expressed. they wanted to be able to specify a group on the lamp post. they did accept staff recomendations. >> thank you. is there any public comment on the director's report. >> good morning. peter cohen. two items. one was mentioned about the modifications to the housing ordinance of the city. in light of the earlier conversation about a project on the agenda, we have some trends in the inclusionary policy. i am happy to hear the commission wants to discuss this. it is a troubling trend for us. i want to submit -- a resolution by the cac that was adopted last night regarding the inclusionary housing policy. and some concerns and what we want to see. the other item, and i do not recall if this was specific, but ther