tv [untitled] December 16, 2011 1:00pm-1:30pm PST
there. that work, we recommend, be deemed approved as long as there are no flood hazards at the site. we estimate the cost of that at $31 million, and that totals $105 million, pre and post- match, excluding work that may occur at peers -- piers 26 and 28. diving into the financial analysis, negotiations have been ongoing. i really want to credit the lane forbes, the financial analysis, jonathan stern, and others, who have been working on the impact -- what are the financial impacts of all of these improvements and developments. it has been an amazing job. we have new terms before you today.
they need to sit down with those terms and come back and through the board of supervisors' budget analyst process report on the financial impact of the deal before you, but we do know this -- that with the deal's structure that jonathan went over, this deal is more protective of the port's balance sheet and interest than what was analyzed in the report. we think it bracket's risk and shares some of the cost exposure between the city and event authority. we do recommend the deal before you today. i just want to go over what we know are some of the opportunity costs of the properties at play. we are looking at lost rent
streams at the sites that will become future development sites. really, the analysis here is -- what are we collecting now in terms of parameter rents from the sites, and what is the present value of that stream over the time that our engineering division estimates will be able to continue to least these sites? these are all old, nearing the end of their useful life. we told that present value stream in the value of seawall lot 330 at about $65 million. additionally, the deal would provide the event authority with infrastructure financing district, debt proceeds, subject to approval by the board of supervisors in the formation of a district, and also, federal historic tax credits at peer's 26 and 28.
that explains the additional financial tools that are sort of non-port financial tools that would be added to help cover the event of 40's costs. the value of those tools it would be based on the eligible cost of tax credit. we just wanted to wrap up with some brief policy analysis. we talked a lot last november, through the board process about economic benefits of the america's cup to the port and the city. we believe the 34th america's cup will bring to the port of san francisco and the san francisco bay a world-class venue for sailing well beyond the event. i mentioned a little about public access on the waterfront. we will be accelerating major
public benefits, not just in the area of the piers, but as far down as pier 80 and beyond the port property. major port infrastructure upgrades, we have not contemplated a plan in either the capital plan or the waterfront land-use plan for fixing pier 30-32. we're getting the benefit of those upgrades. the tenants, we are very mindful of any impact on the tenants that would be displaced in the process. you should be proud of the real- estate division's efforts to do outreach to all of the tenants trying to make a concession easy for them, but there are many will see major benefits as a result of having the america's
cup, both retail and maritime. we talked a lot about environmental stewardship. that has been a major theme of the planning efforts. we are very proud of the staff level of the project. i want to mention terry shore and diane, who are major advocates of this major air quality improvement project, and there are many other efforts. obviously, it has helped accelerate the terminal project, as you saw earlier today. that is probably the key benefit to the port. i mentioned 30-32, and the waterfront land-use plan, the mixed use project at that location, and it will generate many jobs during the construction phase of all of
this work and through the event. there are some risks. would want to share just a few of those. as i mentioned earlier, the cost of preparing the waterfront for the event is considerably higher than we project it when we were before you and the board of supervisors last year, estimated at $105 million, but it went up substantially as they undertake the work. we're not seeing in this proposal a financial participation in the way that we normally do with this. the terms do not provide for that participation rate at either piers 30-32 or the lot. and one that the ports that have started meeting on, the prospect of getting three distinct piers
back six months after the event. we've been working with the capital planning staff and the real-estate staff to come up with some strategies to bring those back online. that concludes the analysis, and briefly our recommendations are to approve the project as modified through negotiations with the ceqa process, authorize support staff to develop a plan of finance for pork-fund improvements, and bring that recommendation back to the commission and approved the dba. i would like to and by making a few things to folks who have been working on this. this really has been an amazing team effort. finance and administration, the real-estate staff, the maritime staff has been working through the process to make sure that we make informed decisions about
the race course on the day and don't impact maritime commerce. the planning and development division is an amazing group of people to undertake these individual projects, and here we are presented with developing five piers all at once and it has been impressive to watch. the team at the office of economic and workforce development, led by mike martin, have been amazing to work with, great partners in this process. with that earlier the planning staff, the of other regulatory parker staffs, who have been incredible as well, and the effect of 40 and race management. it has been a difficult and a time-consuming learning process as we have gone through this together, but this is an amazing team and we're confident of their ability to deliver on the america's cup. i want to close by thanking the
port director. she is managing an entire port, and we have met literally three times a week to go over the details of this project and she has been on top of every detail, so thank you for your leadership. with that, we are available for questions. >> thank you. motion? >> approve. >> second. >> of it like to give the effect authority and opportunity to come up and speak if that would like to? ok, we will take a rain check and vote. we will go to public comment. paul, then terry shore.
>> good afternoon, commissioners. i am the executive vice president and chief operating officer at san francisco travel association. on behalf of our members and the 63 employees -- 63,000 employees of the industry, i am here to say that we are in full support of the america's cup coming to san francisco. a couple of reasons. the significant economic impact that it will have on the city in bringing jobs to the area, and also for the improvement along the waterfront, as well as the massive global exposure and visibility from hosting this event.
and the ending value that comes by having had millions of visitors come to san francisco, to go back home and share their experiences with friends, families, and co-workers about how great the city is and to have them return. so in closing, we are in full support of the event coming. >> thank you. terry sjore, then patrick. >> good afternoon, commissioners, president. my name is terry shore, with sea turtles.org. where a marine conservation organization. i am here to make a few comments about the environmental process. we have been working closely with the staff and the
america's cup of that authority to address some of the environmental issues and concerns that we have. as you know, one of our primary concerns was the temporary decommissioning of the shoreside power for cruise ships. i want to thank the port and specifically brad vincent for working with us closely to come up with a project at pier 70, the electrification of an additional dry dock for maintenance of cruise ships and military vessels that will offset the emissions from the decommissioning of shoreside power. that is a major project that will have incredible air quality benefits during the america's cup. the cruise ship terminal construction and beyond, particularly when shoreside power comes back on board. it is definitely a win for the environment, and we thank you all for that.
having said that, some of the additional air quality measures i wanted to call out that i would recommend and incorporate into the mmrp are a commitment to clean a marine fuel, and since for marine vessels and construction -- engines for marine vessels and construction equipment. these are all the and mitigation measures that you may be adopting today, as feasible, so that gives us a lot of confidence this will go forward. in addition, there are some remaining in farm the concerns -- environmental concerns. they're mostly related to field protection, the parks, some of the neighborhoods, the marine mammal monitoring, and the implementation of the mitigation measures. week urged the commissioners and the staff to continue to work
with the environmental community to work out those remaining issues which i think personally are definitely doable. i guess just one last comment of it like to make, if i may, i was also engaged in the cruise ship terminal environmental advisory committee, meeting with the group's windy pier was being considered, and even though that did not materialize, the environmental agreements that we made for the cruise ships during that time are still legacy protocol for the cruise ships to prevent them from discharging into the bag. >> thank you. >> thank you, bye-bye. >> next speaker? lisa?
>> good afternoon, commissioners. i.m. alisa, with the south beach yacht club. i have the privilege of developing and managing the on the water programs for 2012. the south beach yacht club is a volunteer and a member-run not- for-profit 501c7. south beach has been a closely affiliated with the bay area association disabled sailors and a strong supporter of the disabled community's access to on the water activities. we have a vibrant and ever growing youth sailing program that grants scholarships to underprivileged youth for our week-long youth sailing camps. but i am here here to say today is to urge the board to
consider -- first of all, south beach and yacht club fully supports the ceqa findings and support the approval of the findings. we also urged the court to consider this as the first step and a springboard to bring our community and are disabled sailors and our youth not only full public access to the waterfront that the america's cup and the event authority are promoting, but also to promote and support any future program that gets the youth and disabled sailors and the newly initiated of the community to sailing and water activities, not only to the waterfront but actually on the water. supporting of any future facility improvements, and our plans are designed to support that, particularly in the southeast waterfront area is what we urge. thank you.
>> thank you. kathleen, then veronica. >> good afternoon, commissioners and staff. i am kathleen, representing the national resources defense council, dressing and mitigating many of the issues related to the america's cup in the final eir. it is a large and complicated than that with numerous and environmental and commodity impacts. we know that some concerns remain outstanding and we strongly urge the committee to work with stakeholders to fully mitigate these items. we also anticipate a strong mitigating and recording program that will ensure that all environmental programs and a mitigation will successfully and appropriately be implemented.
at the same time, we recognize the many positive steps san francisco is ticking on in this project. we appreciate the plants to follow the standards for recycled content and specific requirements on composed of all materials. -- and materials that can be composted. we are particularly pleased with the robust set of measures to address significant air pollution caused by the plan to disable the new shore service. together with the races, this would be substantial if left on mitigated. the final set of mitigation proposed with the power project as the centerpiece will leave san francisco with cleaner air that it has today. while we are strongly supportive of this package of air quality mitigation measures, the pier 70 project may be subject to ongoing negotiations and we urge you to make your best effort to
insure application of the pier 70 mitigation project and commit to an alternative mitigation contingency in the event the project cannot be completed. further, to protect our marine resources, we still ask for robust implementation of measures to ensure safe boating practices by businesses and a raiders and best practices of marine construction. we believe the best minimal sot mitigation techniques be employed during construction and we strongly recommend that the notice to boaters on the water and air traffic be conveyed to the mariners before their entry into the bay. and that it adequately conveys the impact. we also understand these concerns may have been addressed in the latest mitigation process and if so, that is good this. we appreciate the environmental details of the project, and with
continued efforts to address the concerns and appropriate strong mitigation monitoring and reporting program, we support this project. >> thank you. at the veronica sanchez, then paul. >> or veronica sanchez, with the international organization of master mason pilots. particularly, are good union and employer, and we are here to voice our support for the america's cup and let you know that we look forward to working with the america's cup to provide ferries that will bring spectators to the racing site and to be chartered by the america's cup to the business opportunity that is presented to us. we think the staff for showing flexibility and reflecting the mitigation measures. the fact that the current fleet
of ferries could not be powered in time for this is that -- in time for this event to have tier f engines, and you have that language, if feasible, and we are appreciative of that language so they're not at a disadvantage. thank you very much. >> thank you. paul, then ruth. >> commissioners, not paul olivo, -- paul olivo representing south beach and yacht club. we have over 500 members and over 100 members who are sailors with disabilities. we are a significant head of south beach harbor and a major neighbor of the project at the
yacht club facility that is closest, which would be the home of the america's cup. with respect to adoption of the environmental impact report and monitoring and mitigation plan, and the other aspects that have been recommended by staff, we are urging the adoption, as recommended. we believe the process, the level of input, and the posting of the information has been perrot, complete, and accurate. we have continued close coordination with stakeholders. what i would say it is with respect to the implementation, you have my commitment as the incoming commodore of the yacht club to do several things, first of all to coordinate with the yacht club alliance for providing us and people for water and event management which is accessible.
second, to reach out to america's cup teams for hospitality and direction on the south beach waterfront community so there are additional benefits and community involvement. third, to engage an education on environmental considerations, clean operation of sailing and the boats, as well as maintenance of those boats and operation of the on the water programs, as lisa mentioned. fourth, to move forward a project for a community sailing and paraolymppics facility that could form a legacy project that will double the number of kids that we could serve, perhaps as many as 120-160 kids per year.
we served 80 kids this past year, including those from disadvantaged neighborhoods. to expand the small boat sailing program and enable the san francisco team for the 2016 para olympics. we pledge to you viable access to the south beach waterfront. the america's cup is more than the america's cup, it is a vibrant waterfront, it is jobs, access, youth and interest and support activity, and environmental stewardship, and we request your support. >> think. -- thank you. >> good afternoon, i am ruth, speaking as an individual. i did not read the entire eir. i read the mmrp, as they relate to the protection of biological resources, and there are many very good measures that have been proposed in this set of
medications, but i am still concerned about a lack of enforceability with regard to some of them. for example, signage at what land sites. they're not working out at many of the wetland sites and other important ecological resources, so i hope that we are not underestimating the need for a very serious fencing program. also, in the measure dealing with the protection of the wildlife protection area, we have great language about the signs and fencing and resource monitors, but resource monitors cannot remove people who have decided to breach that fence, they cannot issue citations. i did not know if they will be trained on citizen's arrest, so there are something still up in the air with regard to the enforceability. with regard to accountability, we have for a lot of these
measures both the of that authority and the city mentioned as responsible for implementing them. that is great, i like to see cooperative responsibility, but a lot of times it does not work. one entity will say we thought you were going to do it, the other said we thought you were going to do it, and from the public point of view there is nobody who is accountable. it is a little frustrating to have two or more entities named for these measures. we would also like the funding. i know that ceqa does not require that you identify funding sources, but it seems like an ice strong implication that whoever is name is responsible for implementing the measure will also be responsible for coming up with the money. i am a little nervous about having oew named as being responsible for these when we did not really know exactly where the money is coming from. we had a great presentation on how the port balance sheet will
be protected, but how is the city's general fund going to be protected is the big question that i still have. if we approve these with them named as responsible, what might be the implication of the general fund and on the delivery of city services? some things that i hope can be worked out. i look forward to continuing to work with staff on the enforceability of these measures. >> thank you. jim lazarus, jim chapel, norman pierce. then catherine hooper. did catherine leave? >> good afternoon, commissioners, i am norman pierce, representing myself. with regard to this fabulous event that will help bring recreational boating and access
for the general population to the waterfront and on the water activities. i think there has been a high amount of cooperation between many different segments of the government and private enterprise to make this thing come together, and i am looking forward your approval of it today. thank you. >> thank you. jason santana, then mike. >> good afternoon. my name is jason santana, with local 75. i'm a third-generation member. my grandfather worked cargo ships. my father was a marine park. nowadays, the port is changing. we have been working the cruise
ships and today we're talking about racing boats, maybe not. at these terminals where my grandfather worked, we've not changed the need for good paying union jobs on the dock, and that is why we support this project. our members are qualified, credentialed, and ready to go to work at these facilities where the boats will be docked. thank you for your time and we look forward to everyone's cooperation working together. >> thank you. peter, then at a manual. -- then emmanuel. are they gone, too? >> good afternoon,. today, fellow commissioners. my name is