>> not that the port is aware of. if they've been appealed, they've gone directly to the entertainment commission. >> but the entertainment commission has a process that can be then appealed. >> correct. and to my knowledge, i don't believe there's been an appeal. >> okay. >> i believe that in 2005 there was one similar request to our board to hear an appeal of an entertainment commission issued suspension of a permit and this board declined at that time. >> we declined jurisdiction, okay. >> there was a night club on 3rd street. >> i have another question and i'm sorry i didn't catch your name. can you tell me what that is? >> adam dan water, economic work force. >> what -- i mean, given what seems to be exigent circumstances for this particular permit and the statement you made about it, us taking jurisdiction as being in support of the public's interest, what would happen if we didn't? if we decline jurisdiction, i would like to know. >> i believe if the board were to decline jurisdiction that the port commission wo

so, we have a hearing, port budget update. we have the executive director of the port, ms. que moyer, thank you very much for being here. >> thank you very much, mr. chair. for the record, monique moyer for the port of san francisco. i want to thank you for carving out time for all the items today. we hope to be succinct as you need us to be, [speaker not understood], but we appreciate the time. i also want to thank the campbell and the [speaker not understood] for the amazing amount of work she's doing for us, [speaker not understood] and the mayor's budget office. i think i said that backwards, budget analyst and budget office respectively for all of their help. very quickly, we have -- are on the second year of our two-year budget and we just have a few items to make changes to which fall within the required 4%. and, so, i'll walk through those in just a second. to recap where we're headed as a port, we've strategic plan that i've identified, five priorities, for the record those are to preserve industrial and commercial maritime tenants and uses as we've been doing a lot

now to the port's ability to look forward as a proposal. right now we have 75.1 1 million in obligations and that's including the soon to be sold cops for 2013 with the proposal we'll have a debt portfolio of about $100 million and 99.4. ~ the city's -- the poc we're proposing will repay approximately 76% of the debt service. so, prior -- in april of 2012 before we started seeing a lot of economic improvement, the port's net revenues were estimated at $17.8 million for bonding capacity of 42.6 million. the recent five-year financial forecast which is showing improvement in the economy and some strength we've had in our operating budget show net revenues of 21.2. so, our bonding capacity is growing. after the proposal, the port's contribution not repaid by the pfc will bring down our capacity to 47.6 million which is still healthy for us and will maintain coverage ratios way in excess of our covenant requirement and in excess of our port policy. so we're looking at 2.9 for coverage. so, we're feeling very comfortable that we can afford this p

in celebration of the port's 150th anniversary. e 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 them

the parkings would be port owned. the developer would program and manage those parks subject to port approval and bcdc approval where it's required with maintenance provided by special taxes. and we're still in the process of thinking of how to best finance the district parking facilities -- the three that emily mentioned. we have a per /tpered option, which would be to use public financing sources. the operating income from the garage, the parking fees that people would pay. and the port would own and manage the facilities. there might also be a special tax on the office buildings that would have dedicated spaces in those garages, but we're keeping options open for you to consider as the process unfolds. so we are also looking apt a potential developer equity contribution to the garages with some /rurpbl on that equity repaid by port project proceeds. so this gives you a sense of some of the open spaces that forest city is looking at. they've been very /kraoe yehtive about how they're designing different rooms and dif

annual revenues of the port. the opportunity to solicit all opportunities except where impractical and feasible, under the city charter if i lease out an office, under the charter, i am supposed to bid that. and we the way that we, handle that is we come and get delegated authority, under the port's leasing policy. given the volume of leases that we do, this year, i believe up to date we have done about 66 leases. and this would just be impossible and impractical to bid those lease and it can't be done. such as a typical there are leases that we have to do bid obviously if it is a retail, or if it is outside of the leasing parameters we do competitively bid those agreement and again, just on a brief overview, our standard form agreements we have a boilerplate lease and we use that lease for all types of leasing and it can be a parameter deal with no port commission approval and a board of supervisor approval and we can take that lease and we can adapt it for a restaurant use or something different. we maintain abo

and then the celebration of the port's 150th. d i thank you to the sponsor for that, that is facing towards the city. as one drives down embarcadero or illinois street, you can catch a glimpse of this. and so they have been very well received. and i wanted to read to you something that someone sent to me, that sort of proves the point of what we were after. this person sent an e-mail saying, the port pylons have brought back memories. my dad was a longshore man and worked at pier 15. as a writer, he wrote harry dickens, that appeared at the s sundance film festival. he used to make me to the waterfront and the fisherman's bars, and god knows my mother to had fish him out of a bar. thank you to the port staff and this now and for the future. kudos to you, because that's what we were aiming for, and you see writing is in his blood. you would like to say and recognize in the record, each and every person that i have worked on the pylon crew. i will start with the carpenter shop -- and the laborers. the ironworkers. [calling names] th

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

the port terminal will determine the pfc. the cruise revenues that the lines pay the port is $3.1 million to $4 million annually. the passenger facility is per passenger charge. and they are driven by the number of passengers on the ship. docket charges is driven by the number of ships that call. the trend of the lines, if you have larger volume of passengers on ships, directly improves port revenues. and now to special events and parking. we have long considered the new facility to have a secondary use of special events. because we have understood that the facility will not be used for the 365 days a year for cruise and cruise calls. and for anyone in the facility, it's a tremendous space for special events. to get a sense of what we would earn, we looked at 2009 ae-com, report used to analyze what could be used for special event and parking. and specialize what the rates would be. we assume 52% occupancy rate, meaning that days it's available is booked 52% of the time. this is what ae-com used. and we looked at musckone, an

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 have a gentleman from the port of san francisco. >> good morning with the port of san francisco. i'm pleas probation officer to be before you today to present the report and seek your approval of that. before i get started i want to quickly introduce our team to you. most of them - many of them are here today from the prosperity. jonathan and brad and binding and joanne and jamie. and others. today, we have jack and fran and their team includes council and others. so with that as you can see on the slide this is a project that is a collaboration, if you will, between the port and the developer. one of the several projects that has assumed the structure and the significance of the impact of the port and the city. and to stress the planning for this site there was - it goes quite a ways back. that was approved in 1997 that identified parts of the waterfront and it helped us to place revenues in places we need to invest in the port. and then looking at the lot 337 it shows the debts of the planning into this project. way before we selected this developer there was an expensive extens

the hill area that was shown in the yellow is port owned. and that was playing a role in the transaction that area in the white is owned by pgand e and we have designs on that property which i will talk a little bit about and then the water front site, it is approximately 28 acres and contains buildings that are plans of the rehabilitation as part of the historic district and that will be the focus of our discussion today. there you unique characteristics, higher construction costs than we are seeing at sea wall lot 337. and also more of a pioneering location. it is harder to imagine development happening at the site today. and it is going to take mission bay building out a little bit more, and dog patch becoming a little bit more mature, as a development site. and so we think that there are higher market risks and markets that are not quite as yesterday to move into pier 70 and infrastructure risks and as you look at the water front site itself in the context of pier 70, this is an overlay of the entire 70 acre lot where the park concepts ar

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 looking at on the low side of a subsidy of 611,000. and on the high side of a profit of $528,000 annually. we have been talking about utilization of the facility. and in the low scenario as in the high scenario, more than 50% of the days are not actively used. so you see not rented is 27% of days and special events is 29%. and cruise calls at 14%, and that assumes a 3-day turn. getting more active days in the facility is critical to changing, increasing port revenues. the report looks at different options. one is decreasing the term time from 3 to 2.5 days. and increasing the special event occupancy from 62% to 6

and how excited the port is to develop this property. we've done significant amount of diligence the reports and many, many public meetings. in the past and, of course, ongoing since 2007 to shepard and shape this opportunity. the location is superior and we really are expending the fabrics of the concern part of the bay to provide revenues to the working waterfront and with the construction and management appropriate to this highly visually location. and as mentioned the public benefits are significant to this site there are residents living here in 24/7 - 6 hundred and 50 on site jobs and others jobs that flow out of the project. vibrant retail and an appropriate amount even if parking. this comments the area. so thank you for your time. i'd like to introduce my colleague >> colleagues any other questions before we switch speakers in. seeing none none >> workforce development i want to take a few minutes to talk about the partnership with between our office and the port as to the 3 developments along the waterfront. this project as well

this is the story of our city. our portas 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 pho

development i want to take a few minutes to talk about the partnership with between our office and the port as to the 3 developments along the waterfront. this project as well as pier 70. i've been pleased patio be part of the partnership. certainly working with the giants who have helped the community. we're able to expand the lense of this development. to talk about the projects more broadly. obviously a development of this scope is definitely going to have impacts and obviously as any project litigation we're going to talk about how to mitigate those impacts. we're trying to move forward citywide significance. this includes targeting investments that will help the city meet fits growth demands. we need to do more to house people and we're looking to do inclusiony housing. more boardly we're trying to address city and regional wide issues. this takes vanilla of the port you owned land and it's kind of pa blank slated project now but we can use other board projects see of the city in this neighborhood to set the size for policy dialog that will form the next coming decades. so quickly roun

from having served on the port commission, my sense when i was on that commission was that that was a policy making body. i do not recall any appeals of any permits coming during the eight years that i was there, nor do i really believe that we were -- that we did have procedures in place to handle it. in fact, public testimony provided during the port commission is a very different beast than this commission's proceedings. and i feel also that because this was issued by the entertainment commission, the appeal then is to this board. and i'm not so concerned about how or when it was delegated because i think it was done properly. so, i feel that this is the body that should hear the appeal. >> i'm similarly inclined for the reason that i heard from both sides -- i mean, but there is a need for some -- for this, for people to have their positions vetted and i think we are -- notwithstanding the history of having this -- having our jurisdiction taken away and supported by the port at that time, but i think in this moment today and for the issues that have been presented before us and th

you have to know the port to be able to work in the port. we have demonstrated without team [inaudible] we don't only limit team to [inaudible] operations, we do everything else. we have /eupbl credible incredibly client relationships . we are able to [inaudible] we're not going to now integrate all activities around the cruise terminal. we have been doing so for many years. we consistently deliver excellent customer service over the years. our partners -- obviously the spectrum of services that the new cruise terminal will invest on, particularly parking and /sperblt special /e our partners are the best event management and parking firms in the bay area, period. that is what we believe. [inaudible] is the local knowledge, the experience /-rbgsz , the capability to make the cruise experience [inaudible] abilities with unmatched event management expertise. we believe we will be a very powerful partnership that will lead to exceptional results. we will perfectly fit the cruise terminal. [inaudible] produce new and exciting things like valet pa

but through the port districts that the board approved recently the project revenue could be used to help us with the challenges of the water rising. this is sort of sektd a policy pilot by bringing those concepts into this framing will he will with the framing. so with that i'd like to wrap up our presentation to talk about the other steps coming. the termination of declaration feasibility if we were able to achieve that we would move on to the entitlement process and mrs. the planning of their work on the actual land use and entitlements. we would work with the state agencies to address the other plans that incorporate this area and the 15 requirements to make sure the development can move forward and in addition during that time of the entitlements period reasoning with the o e w d and the port commissions we'll negotiate a master lease and the documents that are going to move this though. we have the master leases and that's the overall summary. >> one quick question i know we'll underwear the budget analyst and talking about the 90 day acquisition. >> and thank you supervisor we

and the port itself is considered aid responsible agency as we are the landowner and so eventually the port commission will be asked to approve the eir as a function of moving forward with the project itself and as right now the eir, eis is going to be published in draft form this friday as soon as it is published we will make available a link for that on the website which is sfport.com and we are also co-hosting a public meeting on june 25th at 5:30 p.m. in the bay side conference rooms over at pier one for anybody that would like to come and begin the conversation on the draft eir. again, eis being published by weta this coming friday may the 31st. >> and another item that i have is to announce that sunday streets will again be at the port on june ninth from eleven a.m. to four p.m. this time they will take place from the bay to the bay view and close down the traffic lanes to create an expanded area that will run from at&t park to the new common third streets and that will give us an opportunity to show case the blue, green way as it exists today. and both third street and cargo way

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

the northern portion of the hill sub area is port owned land that we'll talk about later. then toward the south is a privately owned parcel that the port is currently in negotiations in with [inaudible] to acquire. and then there's the site that is our focus today. the water front site is 21 acres. we're proposing new parks and preservation and reuse for the amazing historic building -- building 2, 12 and 21. so as whiting as the water front site is, there are a lot of kind of /sp-rbl risks and challenges that go along with it and those have shaped the term sheet that we're going to present to you. one of them is the site's location in the context of pier 70 and relative to dog patch. it's further east, less proximate to the other areas in dog patch, as a result it's expected to follow the order [inaudible] historic core, as well as infrastructure ready parcels along illinois street. there's the risk associated with the fact that the pier 70 area isn't an established place for the /taoeps of commercial office uses that we're proposing. we think that it can become a really e

and i'm still not convinced that we have the best deal here for the port and the city of san francisco. /spheb's going to have to convince me otherwise. a little worried that port is not gonna get paid back fast enough. been a developer all my life and i know there's a lot of money to be made in these projects and i'd like to see the port get a little more money and sooner. even if that meant some talks about -- some talk about condominiums there. building these condominiums and selling 'em and paying back the court for infrastructure and other peers that we have that are /tkaoe tier /raeting and falling into the bay and that's kind of where i'm coming from. i /tkoepltd know enough about it yet and i don't want to say -- go too far, but i'm slowly learning here and i'm slowly getting the full picture. thank you. >> i also appreciate the presentation. i will have a number of questions as more details are presented on the 28th. but if i could ask you if you could acceptability a -- sent a copy of the presentation to all of us. >> you should have a hard copy there. >> i take that back. ap

from the port. >> market, like a marketing program. or the more involved. >> more towards san franciscans. they know absolutely nothing. >> i know, i speak to them all of the time. >> like to offer them some kind of incentives you know on a half trip of the bolt and something like that. >> we talk about them now and then and tested it out to see how it would work. but yeah, we are looking