member of the public and port staff thank you for joining us. on behalf of my commissioners we're at 5 now commissioner murphy. and commissioner brandon is still sitting in the jury room and hoping to be realized. but it's my honor to welcome you commissioner murphy. i want to give a little bit of background on you if that's okay. and we're looking forward to having your expertise on part of our work. we've been really, really busy. our initial calculations are showing in the last 5 years the port will have invested almost $300 million as the - your timing wouldn't be better. commissioner murphy is a left hand california real estate broker and a successful real estate developer in san francisco and in arizona. he is also the founder and director and chief exclusive office for the investments. you may know he recently served on the office and - as you'll hear was born and raised in ireland and has traveled all over the world has come to san francisco he was headhunted and sent off to europe. and he founded two very successful entrepreneurs. he's a

so those are the port lands project. this is the area that includes the woirz proposed site seawall lot that 3:30. i'm going to flip down to the left-hand side of this slide you'll see pier 48 which is a proposed sheet. and pier 70 is on the right-hand side of this chart. this is the site of the washington development of the voter referendum this november that is proposed for fta use. and those 3 piers are the areas where we can capture the state share associated with the america's cup. that includes my presentation. we've circulated those to the staff. >> any question? why not go to the analysts report >> members of the committee on page 27 we appoint there is no direct fiscal impact to adopt the ports guidelines, however, there are criteria within the ports guidelines that may have impact and that's on 27 and 28 on our report. we have a series of recommendationss and they're on page 29. we recommend that you request the port to amend the port guidelines to say that the threshold criteria must be met and the strategic cr

i think the port expanded the cycle of their activities. and that was evaluated through the improved use of the ports facilities. at that point there have been a number of agreements about how certain things were going to be paid for during the events and preparations for the events and then on the capital side for narrow improvements that weren't going to be paid for by the ports. those are around pier 29 facility. so together and this is going to be used fulfill looking it now we've seen approximately $3.3 million of costs that the general costs were going to pay from lost rents from lost tenants and other consulting costs. of that amount $300,000 has been paid to the port and has been compensated. so what's the next step? after the america's cup events in 2012 we learned what with your not only what with your doing with the fundraising but to bring people to san francisco. on the fundraising front the mayor lee in particular and his staff really sort of working with us and the america's cup committees to understand ways to really enhance

again, the port and city have done so much in preparation for the america's cup. there are assets that are going to exist beyond the cup itself for the legacies live beyond that and it creates a place for investment. if it's successful we would apply those lessons learned and replicate it at other places on the port. we've been in communications with the port staff. we'd like work to develop the pilot program guidelines. we'd come back and get formal approval the program. this is a pretty important anniversary and it's a great opportunity as well to get the installation of any donor recognition principally would come from the plaza when the the property comes back into the ports control and they initiate the port at that time. i welcome the opportunity to take our questions for me or mr. martin >> is there any public comment on this item? >> good afternoon, commissioners tom. my understanding is that the northeast plaza at pier 27 was paid for with the bond measure. so if the public is building it they should be acknowledged not the city. i think there's a more ap

and accomplishment of the port >> any public comment? >> i'm francisco. i want to speak a little bit about your one hundred and 50 anniversary. and the contribution of the buffalo soldiers to this area. so we've been working very diligently with our public affairs person renÉe dunn. with the blergz of your director monique. who's encouraging us to give a different prospective to what took place at the ferry building. we'll be joined by a renowned hivenl. we're going to use a portion of his over 2 hundred and 50 photographs that he's allowed us to use and we're going to put our best foot forward. we're doing this because i told you i represent the first people even though i'm not a first american they've colon me to be the leader so we need to put the whole history of the waterfront in prospective by giving you the respect to the first people because this is their land. and giving respect to the chinese. and then i'm going to do whatever it takes to give the history of the buffalo soldiers. we're looking forward on april 28th you bring all

in celebration of the port's 150th anniversary. the first item on my report is to comment on the san francisco architectural heritage soiree, that is may 11, from 6 to 11 p.m. at the san francisco maritime museum. this is a fund-raiser for the san francisco architecture heritage. and this year the soiree will celebration the restoration of the maritime museum. that is amazing. that's an aquatic national landmark. we are inspired by that and kind in keeping in our own birthday event. and the soiree will be black tie featuring gaming and casino and silent auction and magic. the san francisco architecture heritage is an important partner for the waterfront. and they partnered with us on the policy and part of the embarcadero historic district. and they partner in port 1828 through 2010, we have that book receiving a lot of attention. michael brewer also serves on the port's advisory group. and on sunday, maritime day, michael corbett, author, will be giving a presentation at port 1. they are wonderful partners and we hope to support th

so those are the port lands project. this is the area that includes the woirz proposed site seawall lot that 3:30. i'm going to flip down to the left-hand side of this slide you'll see pier 48 which is a proposed sheet. and pier 70 is on the right-hand side of this chart. this is the site of the washington development of the voter referendum this november that is proposed for fta use. and those 3 piers are the areas where we can capture the state share associated with the america's cup. that includes my presentation. we've circulated those to the

the port of shanghai is the largest port in the world. shanghai is a city with it's own twist and twang. just buildings everywhere. we met with the union there, they are the largest union. we went to a great bulk facility. i can see it happening here in the port of san francisco as wii we bring in steel, lumber. it was really good and i think with the hard work. another thing about the port of shanghai is they are getting big into the cruising industry. they are getting up to 250,000 passengers and in 3 years they hope to get over a million passengers. the city's relationship was great. gary lock, the ambassador of china, i have known him in the state legislature, i worked on his campaign as governor, i wrote a letter when he became am bassador in china, one thing about gary is very humbling about the guy is that they grew up in the housing projects in seattle. when he landed in beijing, he had his backpack and tennis shoes and was getting ready to get in the cab. the china -- they were saying, what are you doing. we had a really good tim

the port lives and dies by the revenue it generates on the port property. >> how is the ferry building doing in terms of creating revenue? >> it has been phenomenally successful. we are fully leased. the active merchants are incredibly happy to be part of the vibrant community. >> this is one of the most see places in san francisco. anybody who comes here from out of town, you have to walk through the ferry building. >> there are a lot of visitors here. definitely a lot of locals, too, who feel strongly about the connection to the marketplace. >> you were mentioning that this is pierre -- pier 14. >> first, it was a brick water for the downtown ferry terminal, constructed in 2001. after that, we added public access on top of it and connected it to the land side. now is eight 637-foot-long public access pier to enjoy the day, watched the very activity. there is a little bit of art on top of it. there are swivel chairs on a it and there are little sea >> can you t about proposition a that may affect this waterfront parks -- that may affect the waterfront? >> of the voters approved propos

is it the developer or the port? >> these aren't just for development projects. >> what kind of projects are they? >> it could be if we are just doing a standard construction project and we find there may be hydrocarbons in the soil. and have someone come out and test there. if we are doing certain work like driving piles out to a pier for repair. we need to monitor the sound, so we are not disturbing whether it's marine mammals. if we are going to be doing roof work, we need to inspect that there are no nesting birds out there, that are covered by international treaties. or if there are, we need to get a plan to remove them. some could are related to preliminary development work. but usually if we are in with the developer, that's usually part of the -- >> the developer performs that work. so these would all be for our own account. >> okay. >> one thing we noted, we have the 22% lbe subconsulting goal. but given the small size of these contracts, this is really an opportunity i think for some smaller businesses to ge

we also met with the port of shanghai in san francisco, our sister ports, it's one of the largest ports in the world. they did last year 32 million. i think the port of oakland did 2 million. that's the order of magnitude we are talking about. in terms of other modes of transport, they are the largest bulk port and largest cruise port. everyday we were there we invested in another cruise ship and their operations. we had a wonderful meeting with the senior executives from the ports. they treated us to a wonderful luncheon and hope to continue the relationships with them. the government agency, not only do they run the ports, they also run the trains and taxi, everything else that goes on in shanghai. it was a wonderful visit. we visited the office in shanghai and had an appointment with them and they set up a luncheon and with one of the biggest importers and china set another meeting with

the city. as part of this job i've learned a lot about this port. a couple of weeks i sat down and watched all the great things that have been done in the port of san francisco and what they've done. i'm excited about the history and how this place came to be. we want to tie everything together. i'd like love for the olympics to come. there's no place like the san francisco area. no one can compete are san francisco. >> commissioner also with respect to the community opportunity and inclusion points you raised. one of my points is to celebrate the cup is to promote the opportunity to participate in this event. we're trying to put out to the public it's open free for 55 days of racing. you don't have to buy a ticket you can go to the america's cup facilities and watch the racing for free. we need to further promote that, create an invitation for people to come down and participate. we have a partnership with the treasure island people and they work with a number of nonprofit with san francisco and get kids anti to learn not only about sailing but to t

these are contractors on the prior contract that just expired. port contract in san francisco mining division reviewed the proposal and determined that they did mao it the minimum qualifications and were responsive so we advanced to the next step in evaluation process which was bring together an evaluation panel w had the 3 person panel but were working for the city but not port employees. one is the manager at the human services agency in specializing in development issues and supt superintendent of department of public works and the parks and rec's department. the proposal review process is a 2 step process. they do a review of the written proposal that is submitted by rfp respondent. they score that and then they get together and we have an interview process that they go through with the panel. so, during this process, they identified strength with the proposal which was the demonstrated depth and history of the contractors, clear and detail program implementation, partnering with another non-profit here in san francisco that specifically reached o

the ports are structured a little bit differently. redevelopment focused on providing affordable housing. by state law 20 percent of the increment must be spent on parks, bay assess and the remove of bay fill. as you know there's significant historic contamination along the port property. so in 2005 is when we first went up to try to develop the tool and it was really based on the work that the director and cf o director did in the first 10 year capital plan. the plan says the structural financial plan is not in its operating budget it's instead the bag log of capital improvements needed to bring the port property up to compliance and this chart there's two charts the one on the top with the red and blue the red shows total need along the port which is above $2 billion and the blue is the funding sources we've been able to identify. the chart below is a break out of the blue portion of the chart above. you'll see that i f did say major source we're looking to improve the water front. we've been legislativeing over time. that authorized

this slide shows the port of san francisco sign on the top of building. it's on this right hand or north side of the crews terminal building. in order to maintain the america's cup facility the port maintained the engineer to provide the maintenance of the facility that will be carried on by the american's cup facility but we need to make sure those are intact. on phase two i apologize for not having a nice drawing of this because we've discussions this for many years this might be hard to understand. upon completion of the americans cup in 2013 the project will start phase two construction this will be the remaining parts of the building which includes the like an airport in phase two like a baggage and checkpoint. in addition the scope will include the plazas a which will be as you look at this drawing on the left-hand side of the facility this is a two acre public park fund by go bonds. on the right the north point will get the completed and the ground transportation area which is the twinkie angle form between the crews building and the pier 29 on the

it not only looks at total revenue but net revenue to the port. the difference between the low scenario and the high scenario, the high increases the number of cruise calls, and increases the passenger facility charge. and increases the terminal operating fee that will be paid at the port for the exclusive rights. and increases security costs. because security costs, there is a marginal cost associated with ship calls. and there a reduction in maintenance costs and reduction in parking and special event revenues. to walk through and looking at all revenues, minus the new maintenance obligation. operator is anticipate to pay the port between 1.2 million and 1.5 million. the cruise line is anticipated to pay the port 3.1 million to 4 million, for total revenues for 4.3 to 5.4 million. we have debt service associated with the new facility. totaling 3.5 million. which doesn't change regardless of the share of cruise calls to the special events. we have dredging that is fixed in terms of what we use the facility for. and security costs. so we are lookin

but the port operates as a trustee to the state, and the state has oversight on what the port is doing on the land. and have on occasion, look over our shoulder to make sure they kind of concur that the lands are being managed according to certain public trust principles which are basically water related gets first dibs on what gets to happen. >> there was a vote of the people, what was it, ten years ago or something, when we were talking about what should happen on san francisco's waterfront for development. and the citizens of san francisco voted to make sure that only maritime related uses occurred. >> that was proposition h. i was loaned from the planning department to the port to develop the port's waterfront land use plan. in terms of getting back to the question, shouldn't the low -- some of these low revenue uses locate here. this shrinking industrial base within the southeast section of the city is making it more difficult. there's more eyes looking to the port's property to absorb as much of that. and for certain things like a concrete batch plant and aggregate where you can

the port has a requirement that local businesses use at least 60 percent truckers. virtually all the truckers we use live locally. we feel that our success should be a success shared by the community. we continue to support construction projects in the area and we're working with the port staff on iron ore. they announced down at pier 48 they're extremely interested in shipping by rail from the port. we're working closely with them. we feel we have a very, very bright future. i started my career here in 70. i coordinated with the port and at that time, there was a person named jean who was the exclusive director and i've known many people and the board of supervisors knows this is a dream team staff you have. you have a fantastic staff and this happens because of you're great team. it's been an honor and privilege to work with you. i'll take any questions you have >> thank you. >> one thing that occurred to me in terms of of the work that has been done to reduce emissio emissions. >> unfortunately, the first wave of the cap and trade is not for transportation but tha

the panel will make a recommendation to port staff about who is the preferred respondent, following this fair and competitive selection process. port staff will come to the commission, and say, the panel recommends firm x. do we have approval to negotiate with firm x at that point. and we may discuss business tern terms and you give us direction. we will come back with a proposed contract and management agreement with the highest ranked respondent. and the commission with approve or reject the terminal management agreement, did that answer your question? >> i wanted to know, you said that it would come to the commission. but there is no public comment? >> the public is welcome to come. >> i know the staff but the commission doesn't have a lot of say until it gets here. i would like to see a hands on process and we should be involved and know all the steps. we did the same thing to have more and know about what will go on and work. you may make a recommendation that we may not agree with. >> this is the particular contract under the seas procurement process you as a commission get to vote

this is the story of our city. our port has really defined our past as i think that we all know, the first 49ers came right here to this spot to build this city, during world war ii, our military ships were recommissioned, right here from our port. we know that our friends from labor as the mayor said, built our city, starting here with this water fort and this is the story of our city and we also know that the water front in the port defines who we are and it is amazing in 2013, if you just walk along the water front in my district, you will start at the fisherman's wharf street scape improvements and to the cruise ship terminal that we just cut the ribbon for and you walk down to the terminals and the ports where america's cup will entertain a million, international visitors within a few months. walk down a couple more blocks to piers 15, 17, where we are going to see a half a million kids come to go all the way down to what we know that will be the next site of the warrior's arena and down to the ballpark and the water p

i want to recognize the port staff in their hard work and the mayor's office and port staff to work on all the projects. and this one exemifies so many purposes, i can't wait to see when anchorstein is here, this is a tourist attraction. this is a great beginning. it's not the end. we have so many more things coming, the exploretorium will be coming soon. and i am happy to facilitate what we expect over the next decade. this wonderful waterfront for san francisco, the citizens and the world. thank you. >> thank you, i appreciate your remarks. ladies and gentlemen, the moment has arrived. where we get to raise a glass. and for those of you who don't mind the chill, we will actually taste a bit and be inspired -- any who works for the port, that's a no no. larry says the giants too. but he will be on the down-low, so you have my blessing. if i may ask all to join us and make a toast to the future. >> don't count. one, two, three. very nice. very nice. >> need some help? >> cheers. >> we will be available for questions. thank you very much.

the port now owes more open space. i'm on the committees to figure out where we could create an open space because that open space will be lost when the crews ships are in the terminal. just behind this building here we're going we're hoping this process will be allowed to go forward and that will be the decision-making process and a lot of decision making people will be involved. we need to keep this cruise ship terminal here but make up that lost open space here. that's the venue at least the group that will ultimately recommend to you what the open space plan should look like and keep everything in balance. the port has had a an obligation to go ahead with this because you're on a short timeline because of the america's cup. just balance out the whole proposal. so when we come to that next proposal i think one of the great places to put that open space is behind this building. thank you >> any further public comment? seeing none call the next item >> the fair activation proposal by the partners. >> good afternoon, co

the office of economic and workforce development has been assigned led by jennifer to work with the port on three key developments pier 332 and 337, we have come to the table a few years after the beginning of this effort as phil mentioned this is a long running, partnership between the developer and the port of san francisco, they have done a great deal of community out reach as well as a lot of really good thinking about the development itself with a lot of consultants and a lot of leaders and a lot of people that really want to look at this very strategickly important site at a neat and exciting cross roads on the water front and see what it can be in emitting the different developments what our office has been able to do and it has been an exciting partnership from our perspective is to take the lessons learned from the large city developments that are taking similar master planned approaches to development. and looking at, for example, the development led by the former redevelopment agency, and also, mission bay, the neighbor to this development which is the development wants to spe

and today we have myself representing the port, mike martin, representing the office of economic and workforce development and the developer represented by jack bear and fran wilder from the giant's teams. and i would like to hand it over to talk about the structure and the development team after that. >> thank you. >> good afternoon, supervisors mike martin, office of economic and workforce development like mr. williamson i will try to keep my remarks brief and we are excited to be here today and you will hear more detail from the developer on the specific ideas that are put together as part of the proposal that is before you. i wanted to say a brief word about my office's involvement and the office of economic and workforce development has been assigned led by jennifer to work with the port on three key developments pier 332 and 337, we have come to the table a few years after the beginning of this effort as phil mentioned this is a long running, partnership between the developer and the port of san francisco, they have done a great deal of community out reach as well as a lot of r

. >> as you know, as an enterprise agency within the city, the port has adopted a list of capitol needs which it must fund in the portfolio and it has many historic piers and disrepair and environmental needs and so on. the port has valuable water front real estate and much of it under utilized and realized ten years ago that it could use these assets to fund the needs. as part of the port's straggy, to revitalize the water front and to generate much-needed financial resource to address these capitol needs, the port identified several key development sites within its portfolio, many of them sea, wall lots. 337 is one of these sites. and in the mid 2000s, around 2007 prior to commencing any sort of developer as phil outlined earlier, the port conducted a very extensive process and engaged the stake holders and the community to arrive at several land use objectives for the site. this process with hundreds of meetings with the community members and neighbors and stake holders outlined the sight that called for the urban mixed community with the significant housing and receipt tail and open