iers 19, 19.5, and 29. >> we would amend that as well. to the port. >> we have come to an agreement to taking the development rights out and that would include the interim leases. we would like to talk about this issue that was not part of that discussion. we will try to come back with a meeting. president chiu: is there anything -- anyone from the event authority who thinks that would be a problem? we do not know what will happen. >> there is a challenge that we have to review with them. pier 29 is part of the america's cup village. as i talked about with the other venues, they were able to assess the break down and timing needs to have. it would be premature to say when they can get out without reassessing what they have to do

to get out. if we could have the benefit of that time we could report back. president chiu: how long is that going to take? >> as soon as we can engage in the discussion. would your next meeting -- that is next tuesday. we will have an answer before that. president chiu: ok. supervisor chu: thank you. >> there were two of the recommendations we made. one that i did not see in this response. one was to required to it -- the event authority to retain piers 26 and 28. the reason is the dda reads that they can be returned to the port. the port would lose the rental revenues. i did not see that in those

recommendations. the other one was to -- the with the proposed dda works, they have a basement that was established in the dda. there is a delay and no escalation in the rents by c.p.i.. from the end of the venue leases to the beginning of the longer-term leases. >> i will take the first one. on pier 26 and 28, they negotiated that options so they could take stock on whether or not they will use -- move forward with using those in the interim. one of the options is interim leases at 26 and 28. they're motivated to keep those

locations to burn off their rent credits for the dollars they spent. while we did not have a firm agreement now, it is something that we think there is a self reenforcing dynamic that would allow those to be kept by the event authority if anticipating long term of bell -- developments at those sites. >> as to 26 and 28 in the starting rents, 26 and 28, we had them assessed in terms of their current value and prospectively, our judgment from that analysis and from our engineering staff are twofold. one is the valuations that we derive from a real-estate economists supported by a team of historic architects and cost estimators is our valuation that we believe is a long-term lease value is slightly under $6 per built square foot. we think the $6 is a fair value.

it might even be generous based on their current value. the second comes from the assessment of our engineering staff, which projects these with a ten year lease for life. it assumes there is no more will prepare that would occur. if the long term lease starts at a later time like fiber 10 years in the future. the current assessment of their condition is the facilities are deteriorating faster than the accrual of cpi or other values. we did not think it was necessary or appropriate to index mechanically with inflation. that $6 will be fair within a 10-year period. supervisor chu: thank you. supervisor campos.

supervisor campos: if i could get you to go back to section 7.3 h to i. the issue of the 15% subsequent assignment and sublease. i have heard a different times it was not included in the dda but as was noted before, it was included in the original host and the new agreement that the board of supervisors approved in december, december 14, 2010. i wanted to make sure that is an item that is identified by something that has been left out of the response.

supervisor chu: thank you. we have asked a number of questions of support staff, the oewd staff and a budget analyst. we have heard a number of presentations. we do have a number of people who have come out to speak for public comment on this item. what i would like to do is open the item up for public comment and we can return back to the issues at hand. i will call from the cards i have received. eddie on, jackie fund, orion willis, josh, if you hear your name, please line up. michael williams, patrick kim, ramon hrernandez. each speaker will have two

minutes. we have a few that stepped out of the room. they should be back soon. i would like to ask permission to give some statements. supervisor chu: you can do so if that is from your two minutes. >> this is a statement. i am the executive director of the a. phillip randolph institution. thank you for ensuring the america's cup event will be economically feasible for the city, beneficial for its residents, and for an overall great event. i support the america's cup but even more, i support the adoption of the local hiring language that is proposed for the dda.

i look forward to not only helping to construct and prepare for the event but i will -- look forward to preparing to participating in the event as well. i would like to make a statement on behalf of myself and my organization. i would like to ask if you would support signing of the basic craft agreement that was discussed earlier. i would also like to ask the porch in the proposed amendment to the dda that contains the local hiring language, we do want to see the america's cup happen and we are willing to find a solution. we're approaching deadlines to finalize this agreement. if this item is continued, i would like to finalize the local hire issue so we can appreciate and enjoy this event. thank you. >> good afternoon.

i represent iwu 175. my members guard the shipping terminals as well as the cruise terminals in san francisco. in april may of 2011, local 75 was hired by oracle racing to guard and protect their equipment at pier no. 80. this would -- was welcome new jobs for our members. there were no incidents reported in this two months. june of 2011, or locals dismissed for a recent -- was dismissed for a reason. when there is no cargo ship at the facilities wide open, there is no security at the main gate or port of entry. the gates are left open. a tractor-trailer with explosives could be driven in, explode, blow of the ships on the dock, and destroy the pier.

that would be devastating. i am a native of san francisco, born and raised. the union has been in talks and they have been in -- committed to hiring. there is a problem now. there is a security board that needs to be addressed immediately. we're asking the pork to acquire -- require america's cup event authority to employ security at the entry points of pierre didi as soon as they signed their lease. thank you. supervisor chu: thank you. i will call a few more names. david santorey, javier florez jach berkowitz, john platt, paul

mcdonald, stephanie dalton. >> a lot of issues have been discussed of hard work. one of the issues we worked on for six months now is local hiring and prevailing wage. there has been progress but this is the nagging stepchild of this project that we cannot seem to resolve after 16 or 17, this might be the 18th revision of its workforce plan. has no support in the community. we have heard from dozens of folks who want to use the local hiring policy. moreover if you can go to the overhead. i will give this a shot. right there, i want to go back to the day when america's cup agreed. there is some great points are returning to this original document. in the original document can see

highlighted america's cup open plywood regulations. that is the local hiring a law that passed the week prior. the community's local hire urlacher it is what we want and proposed in a change 24 hours ago. we got a change five minutes ago. 24 hours is a lifetime in this process but we proposed a community amendment to the development agreement. you may or may not have copies. i will provide them to the supervisors and the committee. this is what we want. this has support of community members. we have that it with our partners in labor. we feel strongly this is the way to go. there is the basic craft from a proposed by the unions that are doing the work that will incorporate the mandatory local hire. we called the city's policy. it is about results. this work force plan, i got the newest copy. it has commercially reasonable steps on page 20.

it has a bunch of stuff. it doesn't make sense. we proposed an amendment. if we're not going forward, let's fix this. that put this on the list of something we fix, whatever we do. thank you. >> good afternoon. i worked as a program counselor at the mission hiring hall. we have always supported local hiring and prevailing wage across the board. one of the main things i do have is i work as a liaison between our out of four construction workers and the contractors that would work with them are trying to meet their local hiring goals. the problem that we run into is that on the contract they're working with if there is language written into those contracts that does not mandate, they hire locally, it is just goals or good-faith effort or

whenever. they never hit those goals. that being said, we obviously strongly supports this proposed hiring amendment. -- be put into thed dda. there is a bright way and an easy way to do things. we should go forward with the right way. thank you. >> good afternoon. there has been a lot of revisions to the workforce development plan. i think some of the revisions are taking a step in the right direction. unfortunately it is not enough. supervisor avalos pointed there is a lack of change on consequences for just failing to be part of the steps to monitor local hire. that was characterized as part of the summary. it goes to show why we should incorporate a local hiring

amendment into the this position development agreement to make it legally binding and to make sure it is something we can be clear about, the consequences. the hiring percentage themselves. also the basic agreement as expressed earlier has been a critical way to get to the local hire ordinance. it is the cleanest way to do it. until these issues are resolved, we ask again that this be kept in committee so that local hiring is guaranteed for san francisco residents on the america's cup event authority predicts. thank you. >> good afternoon, supervisors. our present the industry association. they wanted to give it their 100% support. i have done consensus reports for 1000 districts. i would like to bring out one

thing. david chiu was kind enough to come and cut the ribbon at the murrah building. we talked about allocating 2200 of those jobs to veterans. it is not enough to say that we're going to give local hiring priority here. that does not include veterans. local hiring including veterans must be written into the dda. it would help funding efforts to say they could receive tax benefits for hiring each and every veteran, a vietnam vets or younger bets coming back from iraq and afghanistan. the veteran research center is repaired and ready to go. they have computers and the staff over there now. what i would like to see and what the community would like to see is to write specific sent to this local hiring program that include hiring veterans.

veterans it helps in the fundraising, and helps cushion the deficit problem that you talked about earlier, supervisor, and in addition, is good business to hire veterans. there are more than 100 jobs in the military that translate into civilian life, and that includes the trades. i would like you to really consider this and not pass it by. you have to write this amendment and make it very specific, otherwise it will not work. it is not enough to say it is a local hiring policy. you have to say veterans in the program itself. thank you very much. supervisor kim: thank you. next speaker, please? >> good afternoon. my name is the sap berkowitz. i live in the marina. we have been presented with a once-in-a-lifetime stimulus

package, and opportunity to fix dilapidated piers, and present san francisco to the world on the grid is stage. as alaskan oil an athlete, i look at this differently. -- as a local and an athlete, a look at this different. all we have heard about is the risk and not the reward. the deal should be based on incentives for oracle to win the cup and stay here in san francisco. when that happens, it is win-win for everybody. it is a win for san francisco and it is a win for oracle. every time that oracle wins, san francisco wins better. we voted un to make san francisco a better and safer place. under your leadership, we have now lost the forty-niners. let's just hope that we don't lose the america's cup. supervisor kim: next speaker?

>> thank you for your service, and thank you for the opportunity. i think your hard work shows that you recognize the urgency of this matter and the need to get it done and the surface amount -- the shortest amount of time possible. i will speak to the direct benefits of this campaign in the city. san francisco is to sailing like new york is to seeder. if you can do it here, you could do it anywhere. if we bring of this race successfully in san francisco, we will establish san francisco as the premier destination for sailboat racing on the planet. for the long-term effect, nowhih we hope and bring back, it will bring back more sailboat activities and races on our waters, and these are direct impacts we cannot possibly quantified today. i hope it will be in consideration and should move this matter along as soon as

possible to give everyone the opportunity to use that certainty to go forward in their efforts and to take great heed with incredible work this city staff has done, including the department of city planning getting its environmental record through in record time, paying great attention to the hard work that has been done with your approval. thank you very much. supervisor kim: thank-you. next speakers? >> thank you, supervisors, for having all of us here. i am the commodore and director of youth ceiling at the golden gate yacht club. you already know what the cup is. i hope that you do. it is the oldest trophy in all of sports. we are the city that knows how,

supposedly, and i would think that you guys would help the america's cup find its home here, or at least tell. we are known as a sports city, but right now we have lost the forty-niners. but we have a baseball park and team, which has made the city proud. also, that part has improved that area of the city tremendously. we're talking about the same thing on the embarcadero. i know that some of you asked what is going on with the piers. they are a wreck. we could just improve, it could not be worse. there is other good that comes with the cup. my wife and i run the sailing, the youth sailing, and i am finding more and more kids are getting a greater cross-section of high-school sailors, from

balboa, galileo, instead of just sacred heart and other schools. it is making a difference with the kids, and the kids are showing it by their support. supervisor kim: thank you. >> my name is john. i work for port supplies, a wholesale marine distribute later -- distributor. i have been reading the press, and i'm a little worried we will lose the america's cup. i have listened to a lot that has gone on today, following the newspapers and the press. i really appreciate all the work that you are putting in, the staff, the america's cup folks. there is so much work to bring to this city, but i am worried that we're losing the vision of what the opportunity is here. i was on pier 40 yesterday, working on a large charter boat

with the year, in anticipation of taking people out to see america's cup races. i saw the two catamarans go by yesterday, and it was a beautiful sight. the piers are not in great shape. this is a great opportunity. in 1989, we had the earthquake, ripped out the freeway. i thought was a crazy idea. it was brilliant. at&t park. i go to the south end of the city, all of the medical stuff. so much great stuff happening in the city, this is a great opportunity, and this is a big project. there's a lot to be done to make them ready to have a world-class event in our world-class city. you are doing a great job trying to make things happen, but this really should happen. it is a once-in-a-lifetime opportunity, and i hope that it comes back again in three years. thank you for your time. supervisor kim: thank you.

>> supervisors, my name is stephanie. i am a resident of the valley, and my office is in david campos's district. i am here with a group of organizers that have been meeting with various people concerning the america's cup. about 11 months ago, we met with the port of san francisco, we have met with several people. what we are trying to do and what we have been saying for nearly a year is we represent the 99% of the artists that represent the diversity and the committees of san francisco, and we would like to organize an arts festival to help implement what i think is a very weak memorandum. actually, some of the language that have taken straight from what we presented to them, which i find amazing, because we are not at all -- the san francisco arts festival, a core group of

compassionate, committed arts citizens who have tons of experience raising philanthropic money. in 2001, i presented the port of oakland jazz festival. i know how the arts can leverage sponsorship and grants. i think we need both. what we can bring to the table, in addition to helping your sponsors feel more secure, is we can also bring the grants to help put san francisco on the world stage. so thank you. >> hello, my name is paul mcdonald. there is very little i can say in 120 seconds to change everybody's mind to make the sign and pass the bill, but i am here to say i was in auckland when they had the america's cup and i got to see their fixed up

waterfronts, with bustling businesses and restaurants and condominiums. we have an opportunity here to make this incredible city incredible on a global set scal. i know you have the city's best interests at heart, but i want you to look at this on a global scale, so you can see this is an opportunity for the entire world to look at what we have here and not get too caught up, and have a little faith we can pull this off. thank you. supervisor kim: thank you. next speaker? >> good afternoon. i am with the u.s. japan culture trade network. i'm here to speak on behalf of the ideas of oracle racing be amended so the arts and entertainment component of the 34th america's cup will be led by the san francisco arts community. this amendment needs to take place before going to the committee.

i support this idea for the following reasons. there has been a great deal of speculation around the economic benefit to the city during the america's cup races in 2013. the forecast remains at $1.4 billion of total impact. despite the projected numbers and the anticipating teams, generating visitors. visitor spending during the america's cup and the city is in the financial interests of san francisco, not so much of oracle racing. san francisco should control those aspects of the event that are in its own economic interests. arts and cultural programs are great, powerful tool to increase visitor numbers and spending. as such, we should stage a complementary arts festival that is worthy of san francisco and that simultaneously caters to visitors and to our own people.

cultural programs don't just spontaneously collect at the last minute, they take a great deal of work and planning. over 100 parts groups and individuals have been meeting for more than a year to organize an arts festival. we must create a program that reaches out to and represent as many segments of our own population as possible. if we are successful, many of our own community members will identify the america's cup not just by watching boat races but reports defense. -- but through parts of events, and it will spread the economic impact in all of the districts. we should be able to make this as great an opportunity as possible. supervisor kim: thank you. i will read a few more cards. braden farmer, fred barnes, terry mackey, sean, julie smith,

janeane antoine, kevin carol, valerie, norman pierce, james, and chrsistina. >> good afternoon, supervisors. my name is andrew would, with the san francisco international arts festival, and i would like to oppose that not be part of the amended resolution. i think this is our last opportunity to require the america's cup event authority to actually work with us. i don't think that we can have lots of different things happening. there has to be a guiding idea, there has to be something that is holistic and works with us. i think it will be in the interests of the city of the artsmi