mosconi is too small. when we build mosconi's center, we thought it would last for ever. 10 years later, we had to build a mosque on the north because demand became so strong. we thought we could go on forever. then 10 years ago we open the mosconi west. soon after that, the demand started to fall. we have to look at how we can maximize the space we have to optimize the potential that we have in business. oracle is just one group. we are going to close howard street friday afternoon because they cannot fit anymore. luckily, we have the resources to do that. lots of groups say that they're about to come, but we are so small. so we are looking at obstacles to expand. we had one of the highest occupancy rates anywhere. we put together a task force a couple of years ago to look at options where we can expand. we know we want to stay in the neighborhood, in the heart of the city, a retail community. we have basically two options. here is the layout of moscow and the north, south, and west. unfortunately, they a

the best opportunity is mosconi east in 2008. that would be a perfect time live from what we believe meets the demand that is growing at the moment. the last thing i want to talk about his proposition j, the proposition to increase the hotel tax. it increases it two points, 14%. it just went up 13% two years ago, so we would have a 25% increase in hotel taxes in just a few years. it is important to know that the customers pay this tax. san francisco would have the highest hotel tax in the country. new york did the same thing a few years ago. new york had the highest rate in the nation and the business collapsed. hotel spending went down, they lost meetings, conventions, and in an emergency situation, they lowered the tax. in new york budget office said that when they had a lower hotel tax, it generated more revenue because more people came into town. we have had five groups presenting $110 million in book business that said if we increase the hotel tax, we may have to reconsider. it would result in the loss of 2000 private-sector

conventions like this one at mosconi makeup the rest. the city is not tops in that category. >> hotels have been boycotted in view of the labor dispute occurring in the last two years. the result has been in the millions of dollars where cancellations have occurred, postponements have occurred. >> the general manager has become more vocal. the union is escalating action. this hotel strike lasts twice as long as previous protests. leaders don't believe the city reputation is harmed. >> there is people continuing to return z it's important for the hotels to recognize if they want business to continue to return, they can take care of their workers. >> for now, every member of the staff from front desk to kitchen is a replacement worker. the manager says starting tomorrow, the hotel is sold out. and with this what the perception of san francisco will be in the spotlight. >> this is about experience of san francisco. and this is outside of the front doors of the hotel and this is is not the perception we want to give the rest of the world. >>

collection of south of market history, i have witnessed the rise of third street since the building of the mosconi center. and i have witnessed the fall of sixth street as it received the migration from the old third street populace. i've experienced the evolution and improvement of claire street from prostitution and drug dealer shootouts in front of my open studio to the current slowly improving neighborhood of condominiums and hard-working tax-paying people. and with the accompanying civility that a city like san francisco should and needs to promote. during the same period of general area improvement, the building at 374 fifth street remained a source of serious crime, which is well documented in police records, and often witnessed or endured by the local residents. even under the gentrified name of travelers inn, ostensibly a youth hostel, 374 fifth street continued to be a drug and crime site. with the building burned -- when the building burned in 2006, i believe the general sense of relief was felt by many in the area and with a hope that an improvement in the building's use could be looke