page six summarizes the primary financial terms of the proposed stow lake boathouse needs with stow lake boathouse, llc. actually, that table is on page 7 of our report. as summarized in table 3, the proposed lease would generate several revenues, and i'm basing this not on what has been submitted today to the committee, but on what we had reviewed, based on the minimum annual guaranteed band of $140,000, adjusted annually for inflation, or the cumulative 33% of gross boat rentals, 10% of food and beverage sales, and 7.5% of retail sales. we project that in years 1 through 5, the proposed lease percentage would be greater than the minimum annual guaranteed and that they would be taking increased percentage rent payments, estimated to remain from $200,000.250 $4 -- $200,254 -- on the bottom of page eight, we state that has shown in table 5, which is on page 9 of our report, that over the course of the 15-year lease, stow lake boathouse will invest an estimated total of $858,403 or an average of $33,000 a year for 15 years. the capital improvements in maintenance, and $363,399 or an averag

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

consistently about the project from many community members is the desire to preserve the stow lake boathouse, and i strongly support the efforts to preserve and improve the boathouse. i support that goal, and that is the primary reason i'm proud to be the sponsor today. i know there has been a number of community meetings already on this item before the recreation and parks department but also in the community as well. regarding ortega family enterprises, i believe the city has found a partner that has been capable of putting resources in to preserve the boathouse so future generations of san franciscans can enjoy a boat ride and the enjoyment around the lake. ortega family enterprises is extremely well qualified for restoring enterprises to their original splendor. i recently took a trip up north with my daughter and one of her friends, and i wanted to specifically try out the concession stand there that is run by the ortega family enterprises, and it really impressed me in many ways and help me -- helped convince me they would succeed at stow lake erie the quality of the food, the with edu

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 ha

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

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