but if the port director is in the audience, if she can please come up. i do see ms. moyers from port. if i may just a couple questions to the port director. >> good afternoon, board of supervisors. >> i guess a very broad, basic question. there's a lot of entitlements that would be given by the city from sop of the parties here. do you feel that the person that oversees the port of san francisco that the terms are good for your operation? >> i think the terms of the term sheet or letter of intent whatever the name for it are promising. as we said in committee yesterday, this is the first proposal of this magnitude to rehabilitate piers for martime use. i think that the benefits of having the america's cup at our piers is a tremendous opportunity for the port. the discussion that's happening today is not unlike the discussion that we have had related to the benefits in cost of building a crew ship terminal or any of those things. i do think it is early on but with your guidance, we can get to a deal that i can say to you is good. but i think it's very promising. >> tha

over time, the ability to increase the ifd revenues the port can expect to capture. overall, our assessment is transaction guarantee short-term payment, payments up to $5 million in the next couple of years. it will enhance our long-term lease revenue through the park and other commercial revenues, and provide the part report -- port new mechanisms. given the current state of the market, this financing structure allows the port to unlock the value of these sites by unlocking stabilization and receiving long-term compensation on these properties. that is the financial analysis. i want to take a couple of moments to allow the developer and architect to tell you about the project as it is currently proposed. >> good afternoon, commissioners. thank you for the opportunity to present to you today. as you know, we have been coming to you since july 2005 with this budget. as jonathan pointed out, you awarded this subject to a planning process. that was expected to take six months to eight months. the study actually took 18 months. and vigorous meetings, a lot of work on both

-- the port versus city revenues? sheet, there are a number of details from the physical and financial structure that are not done. right now, what we have is that bilateral transaction -- a bilateral transaction between the term sheet and developer. what will ultimately happen is a much more complex transaction. there are a number of structures contemplated in this term sheet that will need city approval. that is why, particularly for the next that, we win the endorsement from the board of supervisors. >> thank you for asking the questions. i do not have any other questions, but just over all comment. i thank everyone for their comments in support and opposition. i have some personal experience doing sumter in construction along the waterfront. it is monday, messy, but it can be done. the square footage we are able to obtain by doing that cannot happen physically. i also want to mention more of a personal note, a strange coincidence. i am a member of bay club here. they're swimming pool when other construction recentl

the port has already provided the building comments. bart has not submitted a permit -- a building permit for the marine barriers to date, but for the surface barriers, bart has provided the terminations. bcdc has approved the approval concept. design and layout will not infringe upon the tax on the plaza. in addition, the building permit requires the provision of a construction plan and schedule for the barriers. staff has already provided comments on this to make sure that the construction has limited impact on area stakeholders. after construction, bart will be responsible for maintaining the barriers. the ports, under the agreement, will not be responsible for maintaining the areas where the barriers will be installed. dictating the future, what we have agreed on is that the port undertakes a project on the platform that requires the relocation of a barrier to maintain the circle they are creating around the facility, the port will have to pay for that relocation. if the port undertakes a project that requires additional barriers, o

piers down in this areas in this area and i appreciated the port for providing the facilitation on this. and i have to tell you if you look at the current condition of the port, if you look at all the piers that would be in the adjacent areas that would be i78 -- impacted and compare that with their lack of studys that are in place right now, we have no answers. that doesn't mean that we should compromise ourselves and not do anything to seek profit and for the bertment of all san franciscoians especially those who struggle to stay in the city which hopefully means that can be translated into indirect revenue. i see this having a wave effect beyond what this conversation is revealing. i believe the watchful comments and concerns by some of our colleagues added to my voice to that are spot on and i believe we both can go forward the correct amount of milestones and warning steins. because we've seen collective bargaining agreements with unions that every time when the city comes back to us and the negotiating team says, we've got a deal. ask yourself, at any time in the board of supervis

the port may consider other uses as part of the approval process. term sheet may be amended along with subsequent proposals to change the mix of uses, intensity of development, or other fundamental terms. along with any underlying document, the term sheet is not intended to be contractually binding until the party executes on the transaction documents. that being said, that is where we are in the process. one of the fundamental differences between the proposal received in december 2008 and the current term sheet has to do with transaction structure. that was contemplating a structure where they would lease the entire site for 66 years as part of the project. what the developer has proposed and this term sheet reflects an agreement, with park staff and the developer, something more complicated. essentially, a swath of public trust on certain properties of seawall lot 351, 6 certain portions of the golden gate tennis and swim site. the current parts of the 351 that have the public trust are in great. the new areas that will have the public trust are i

i would like to thank my the people at the port as well. before i had the honor and dignity of working here at the board of supervisors, i was a port commissioner for nine years. it is not until you sit and listen to the financial issues the port of san francisco has that you really understand how dire they are. we are losing our piers. this gives us hope that we can start rebuilding the infrastructure in a way it needs to be built. the $150 million investment in port property is nothing we should sneeze at. we would be building cruise ship terminals and a number of other housing developments and piers and births for this particular project. -- and berths for this particular projet. -- project. i would love to know if we could describe the facilities, including the it city facilities. -- including the city facilities. if you would not mind touching on the vision that will include iconic public places, and really the feeling of what this would look like for san franciscans. >> thank you. i am from the office of economic and work-force develop

first and foremost has to be the port staff. lso, our engineering, real estate, planning and development, and maintenance divisions, not to mention finance division. i would like to thank the cruise terminal environmental advisory committee for bringing this topic of many years ago and seeing it through to fruition. that was very much a blessing for all of us. i would like to thank the men and women of the longshore union working behind you. this is probably your one and only opportunity to see them at work. we could not be here without it. i would like to thank the company that is also working this ship. metro cruises is here. you will notice a plethora of volunteers who are concierge as they give us their time for free, and we are very grateful for all of that. i know this project took a ton of effort, not the least of which is through cochrane and also mcmillan engineering. please applaud yourselves. please come inside and enjoy the celebration. [applause] ok, and i am supposed to tell you that if you would like to come over a

we lived off the port of new port. we couldn't even get off the mainland unless there was a boat to do so. that's how isolated we were until they finally put a bridge in. it wasn't like anybody where we lived was rich. but our economy was entwined at the time and it was significantly enhanced for all specially windows with greater means did come to the area on a three-year rotation the compete for the cup. i also participated in some of the cup myself in 1980. i feel strongly that san francisco puts its best foot forward in a unified, as much as we can, collect vised way in trying to secure this. to the general public, i know this has been mentioned but this is a very clumsy process. we're the only city vying for a cup. our competitors are two nation, italy and spain. it is the prime minister who gets to make the unilateral decision of whether their countries are going to be able to successfully vie for the cup. they do not necessarily have to seek the blessing of their parliament or therefore the supervisors in order t

the port is an enterprise department. i understand it is all one city. i understand it is everyone's property and money. this is specifically focused on the impact on the general fund, which we do give a good bit of attention in budget and finance, because it is where the more discretionary dollars are. it is a bit of a taking of the temperature. i understand there is a port fund and there are liabilities. there are some potential upsides to dealing with a huge potential liability in terms of the port. this spreadsheet is aimed at figuring the impact on the general fund, which is separate from the port budget. >> it looks like you included the $40 million of revenues and the costs of the port infrastructure work. supervisor daly: the reason why i included that is because of language. maybe that 40 is too high because the revenue into the city is not that much. maybe that 40 should come down to the 24 figure because of language through that charter provision where there can be an intra-departmental thing. i heard you were interested in keeping the port hol

first and foremost has to be the port staff. lso, our engineering, real estate, planning and development, and maintenance divisions, not to mention finance division. i would like to thank the cruise terminal environmental advisory committee for bringing this topic of many years ago and seeing it through to fruition. that was very much a blessing for all of us. i would like to thank the men and women of the longshore union working behind you. this is probably your one and only opportunity to see them at work. we could not be here without it. i would like to thank the

the costs of the port infrastructure work. supervisor daly: the reason why i included that is because of language. maybe that 40 is too high because the revenue into the city is not that much. maybe that 40 should come down to the 24 figure because of language through that charter provision where there can be an intra-departmental thing. i heard you were interested in keeping the port hole and perhaps using that provision for interdepartmental transfer to make sure the port was able to capture from the city the delta at in terms of increased revenues to the city. let me go ahead and make a correction. if everybody can cross out that party, i was not thinking. that should be 24, because that is all the income i have reflected into the general fund from this event in terms of hotel, payroll, and sales tax. i do not think the port or city revenue authority should do the transfer of more money than what is generated through this activity, to that charter section. let us make that 40 to 42. that 108 has turned into 92, and the 52 go

the port, as i mentioned, is over 100 years old. it is a place of great history. these appears you are standing on were built many years ago and have stood the incredible test of time, thanks to the amazing workmanship with which they were built. tremendous ingenuity has been demonstrated over and over again, and we are doing it again today. today, we get to celebrate our collective ingenuity, so it is with great pride that i introduce our leader, mayor gavin newsom, who, frankly needs no introduction, but i will say one thing -- his accomplishments, particularly in leading local government's response to the environment are too much for me to go into today. i'm here to tell you that this would not have happened without his leadership and support. i want to thank you for prioritizing this project and for making sure that once again we are leading the way here in california, and i know that you will take this message on to all of the other 11 courts in california. with that, thank you, mayor. mayor newsom: 90 for being here. welcome to san francisco. why are you not

this was taken from the port office on embarcadero street. it reminds me about the public debate that we have around here, in this case, on human rights. ultimately, the portfolio consists of projects that are in the final stages. we have been working on tools continuously to keep our portfolio growing. we were recently able to leverage our balance sheet to use revenue bond capacity. we have had tremendous support from all of you for ballot measures for bonds, streamlining, entitlements, infrastructure financing, support, etc., so we really think we're working continuously to keep the port's portfolio ready for whatever is next. unfortunately, the cost is not declining as rapidly as we would like, but we're doing our best to help with investments. we cannot do it alone. we work with all kinds of stakeholders, constituencies, regulatory partners, developers, financiers, etcetera, and it really depends on all of the voices, not just one of the voices. success -- do you like this one? can you even see it? success is dependent on a number of facto

what are the costs to the port? we do not know. future infrastructure, financing mechanisms, actual cost for work at pier 80 -- this may or may not be in the $25 million of infrastructure work. pier 50 -- the cost of accommodating super kyats -- yachts, we do not know. there is an attachment of $890 million. i do not know if that is one year or what. we are not sure on that. the breakdown of the total city costs for america's cup -- we can take a look at that in the budget i prepared. is the city liable for ceqa preparation, yes. the cost of that document? i am not sure. is that $32 billion going to be raised before the 270? is the city protected first or mr. ellison protected first? do not know. for those of you who follow south beach development policy, you know that is the one that is worth something. it is actually on land. there is that title trust issue. in this term sheet, there is a title and trust swap. what program are we going to put on that? we do not know. what is the value of that parcel? we do not know. piers 30 and 3

admittedly, parking would be a legitimate concern to the port. iums. cannot sell the condos without parking. in addition to that, you have parking spaces for the restaurants that will be built. you have parking spaces for the retail that will be built, and you have parking spaces for the health club and tennis facility that will be built. even the developer admits that what you are really looking at is 90 parking spaces for the ferry building. 90 parking spaces for the ferry building. you could have those 90 spaces today or tomorrow by doing a number of things -- one, by restriking sea wall what 51, two, by stacking parking, free, by using pier 3 storage space, which is largely unused, and for your, by using -- and we can hope that they placed the motor pool before the employees, and finally, by using a marketer of for your. also, and i want to finish this point because it is important economically. in on parking, it makes reference to private developing, but it also has a reference to possibly public development. you should not approve the term s

as you know, the port, in the situations, where it is not practical to competitively bid. the port explains that they have maintained this lease on a noncompetitive basis because it has been a good tenant. they feel it has been an excellent tenant. we would typically recommend that any lease renewal be however, if the board agrees, if there's justification that you wkprú]4

admittedly, parking would be a legitimate concern to the port. . cannot sell the condos without parking. in addition to that, you have parking spaces for the restaurants that will be built. you have parking spaces for the retail that will be built, and you have parkinac

it reads, "with gratitude and friendship, from the port of san francisco, october 2010." [applause] [laughter] >> i'm happy to report this is the first time that paul has had to come to a port commission meeting. i told you how good he is that what he does. >> paul, brad benson, port staff, special projects manager. i want to say what a great honor it has been to work with you. i had the good fortune to start working at the port with monique and noreen ambrose, who was such an expert, and it was through her tutelage and your amazing patience and the patience of your staff that i came to appreciate all of the common law principles that really guide the port in our day-to-day activities. it is really a very rich history of law. i think we are really serving the public in some extremely important ways. i just want to apologize that we are always coming to you seeking special treatment because that seems to be what we do in san francisco. i think you brought to the job a very strong environmental ethic. i know that had to be the case, and i did have a chance to work one of byr

would result would be the port. these are proximate depending on the start date and end date. the port will receive about $57,000 per month, or $230,000 for the term of the lease. plus, service valued at $350,000, the total would be called would not be expanding any of its own resources the benefit from these leases because of with awareness of its public opinion with local production persons and i think that those numbers are fairly impressive. in the there were two dollars in there, 50 cents kovac to a, -- into the local economy. home productions is wrapping up to this point, $500,000 locally on local labor. prosing in kind services for the discounted rates i noted. at this time i would like to introduce susanna robins to make a brief presentation. >> the port has been working with the production company to find space for them. a great office space and potential for using the building, just when a production company needs. it would help to draw other productions here in the future. they do not even need to shoot this in san francisco. the film takes place in the past. all ov