Many things have changed. Investors are asking for higher yield given what they have seen. And given that this development is not just a hotel by itself, but it will include space for dinner theatre, as well as Public Open Space, the file was different for the investor. Investor said, you know, they requirement needs to be a little bit more than what i agreed to. The developer asked us to increase the internal rate of return, and the participation changed from 70, 30 split with the port to change it to 80, 20. So we push back and we negotiated, and what we identified has changed eyes increasing the internal rate of return and that is listed in the slide from number 1 through number 5. [please stand by] year ten and youre 20, that is where we really see a separation between what the part would have achieved in terms of lease revenue from parking, being much below what we would act the Hotel Operation will be doing at that point in time. Looking at it on a net present term. Just for the first 20 years of the lease area i want to be there this excludes any revenue we may be able to achieve their formation of an ise. Able to form and an ist through the board of advisors and collect the tax revenues from the site. We anticipate that would go towards seawall or other shoreline types improvements. This is what im showing you, not including those potential revenues. As shown, the minimum base rent over 20 years, under the proje project, a little bit more than 3 million then the existing surface parking lot. When we add in the percentage rent it is much higher than the surface parking lot. Over time, looking back to 2012, we show the parking revenues on that lower line. We had some ebbs and flows in terms of parking revenue. We projected them out consistently increasing under that dotted line. The minimum base rent nears that for a number of years and then the base rent scratches up in the percentage rent is above that. Focusing in on the term sheet modification, mentioning the hurdle rate, the first tenant area very interestingly, as you know, we have kept a very post with the base rent on the percentage rent as we had with the term sheet in 26. The capital participation is the change in revenue. We traded the term she anticipated, every tenant would have an 18 hurdle rate before we participated. Under the proposed deal we provided the first tenant the ability to go above, from 18 up to 20. Every subsequent tenant will share with us on the hit six return. That is why that capital event share under the proposed deal is higher than the term sheet. Over a 5066 year term we anticipate we will have more than one tenant and each time a tenant cells we have the opportunity to participate in a share of the sales area we are very satisfied and happy and feel that you can support this deal very free of any financial considerations. In terms of next depths, we will be very interested in hearing how everything goes today. If all goes well and with any amendments that are requested. We will come back to the Port Commission on september 10 where we was weak abduction of the transaction adoption. They go to the board of supervisors in the coming month. Hopefully complete his full transaction prior to running out on november 4. We are cutting it too close though. Dont be concerned. A quick view of the project documents. Im going to flip through quickly. I got the okay that i could go fast, because these drawings have been reviewed and heavily embedded. I do want to show you some new ones, these are new renderings of the park, you can see the tent in the background, that glass and casing. This is a view from vallejo, the potential public art might be the building, and on the way the public would access the part from that side of the street. You can see the development thats at the corner. Sitting in very nice the with the existing context around it. Inside this tent, we will be so excited to have performances up and running again and hope to see you all joining us there. I want to give jay wallace a couple of moments to ask is his appreciation to the port bath. [laughter] and tell us about his commitment to the project. [laughter] thank you, rebecca, ricky, commissioners. Jay wallace. All joking aside, i do want to extend my appreciation to the port bath, we meet regularly, they are tireless in their advocacy of the ports interest. They let me yell and scream from time to time. We all work well as a great team. You have some tremendous port staff, it is your to work with and im just excited to finally be here with the dates ahead of us after many years. Ricky, rebecca, mike, elaine, grace park, who is not here, all of them do a great job. Thank you very much. Im happy to answer any questions. That is the end. That is it area any Public Comment on this item. Oh there is a lot of Public Comment on this item . Dont feel compelled to eat. We know that they have a lot of support. We know what a wonderful process this is area if you really want to speak, come on up. Does everyone want to seek, or does anyone not want to seek week speak. Im on the board of the Barbary Coast neighborhood association, we are the immediate neighbors of the project. They have done a wonderful job, over the last four years plus staying in touch with us, every step of the way. We think they have done a great job. We think it is a great project. We hope the lease will be approved. When mark twain was writing about San Francisco in the 1960s, he captured the lively and dynamic spirit of the community, if mark twain was with us today we think he would really like to have them. Thank you very much. Today i am here to etu as a happy neighbor and the northern waterfront resident to enthusiastically support and encourage your support for the leasing. One of the things that has been important to me, as a neighbor, is the whole activation of the waterfront, in the area. The seawall lot, and this is going to be doing just a tremendous x engine of that. The other aspect of this, that i really think is important. We saw the benefits with the revenue and the great financial package that has been worked out here. What i think is a really key piece of this my you can accomplish this area that is a proposal to establish, to implement the formation of the sub area for the ports infrastructure financing district. For the purpose of collecting the tax increments from the si site, for the arts capital Expansion Plan and or the seawall Resiliency Program. I thought that was understated in there and i think it would be great if you could achieve that. The other aspect of this, i think is tremendous, they have been able to meet the Planning Department requirements, the 40foot limit. I think him i thank them for bringing together this marvelous project. Thank you. Good afternoon. My name is leonard, im a field representative here in San Francisco. I am here to ask for your support for this project. This gives individuals the opportunity to work, earn a good wage, provide health and Retirement Benefits to our members. Offering training, and education, and opportunities for carpenter trades through apprenticeship. I thank you for this opportunity. Thank you very much. Good afternoon commissioners. My name is jessica, im with the San Francisco travel association. I am here to voice our support for this project. We believe this project will bring great Economic Vitality to this area. Good opportunities during construction, and operation. As well as a unique cultural experience. Last year, San Francisco welcomed over 25 million visitors that spent 10 billion during their stay. That translated to 771 million in taxes to the citys general fund. We believe projects like this will support successful Tourism Industries in San Francisco. Good afternoon members of the commission. Thank you for allowing me to speak today. [inaudible] i am speaking in favor. Providing me with the opportunity to continue my training and hopefully advance to become a carpenter. Its great for apprentices like me, because often times you continue working, working, and take a lot of hours. This project will also allow me to have the income on the benefit to provide for my fami family. I am in full support, and ask that you pass this project and allow them to build this project. Thank you. Good afternoon. We want to add our voice and support to a broadway project. And the opportunity for our members and our affiliates to have service work there as it opens up. This is a great opportunity. Also a great example for others who are considering project somewhere else in our city. Thank you. I will be brief. Good afternoon. I am cynthia gomez, we represent the Hotel Workers who will one day work at this hotel. This developer has worked proactively with our union to sign an agreement that will have a fair process for union jobs for these workers to get for that reason we support this project today and we expect to be here at every opportunity to support this project. Enke. Thank you. Good afternoon, commissioners. I am a trapeze artist and i have performed for five years. It is one of the best companies i have worked for. A company with integrity. They strive to bring a high level of entertainment. I am in support of this project, of course. They bring exactly that. Welcoming my fellow artists from all over the world here. I think it is a perfect portrait of values of San Francisco and its spirit. They are the best choice for me. Thank you. My name is kristin clayton, i am a professional opera singer and i have worked with helen, as she did her act live, back from 20002,011 off and on and fabulous show. I love coming down here to support the view of the artist. It has been hard staying in San Francisco, because of the cost and everything. To have the opportunity to have a show that is local, when the ships come in they can literally walk down the street and come to see something that provides you with a fantastic experience of meeting local artist, as well as people from around the world. It is such a high quality, unique show and i always love to come and speak for what it does to keep us thriving, and growing as artists. Like helen said, i think it San Francisco is such a Perfect Place for our type of show. Thank you so much. I definitely support it. Thank you. My name is stuart martin, we have met with the developer 4 or five times. They, by the way, are in the southeast corner of the northeast waterfront historic district. It has been there a long time. They paid a lot of attention, i am a preservation member, therefore put the pressure on them because you have to go by the secretary of interiors standards for the historic district. They did that nicely. The main item has become a red brick which was originally scheduled to be a yellow brick. We up giving an illustration of the yellow brick road, the yellow brick building doesnt belong anywhere. It doesnt work in this town. They agree to that comment stuck to it. A lot of the details are very important, particularly if i may politically say, they paid attention to the rules were 88 broadway did not and that will be questionable as to its acceptance in the historic district. Its right across the street. These guys are terrific. They have been very aggressive with us, we have been very aggressive with them. It is a good project and we support nicely. Thank you. Thank you. I rode my bike all the way down market street. [laughter] great project. I grew up here in San Francisco. I think it is a terrific proje project, and i supported. My name is charles higgins. Any other Public Comment . I am annie jamison, and i just want to thank the Port Commission and the staff for its work along the way here. We are looking forward to getting through the lease negotiation and onto the final piece here. We hear from people every single day, from San Francisco, and the region about coming back here with the publicity that has just occurred, in the last couple of month, those questions, and the request for the show have increased incredibly. We just opened a show, in a hotel on july 18, with the increase of that publicity it increased the request for us to come back to San Francisco. It is all part of a picture, for us, and we are mentally excited about getting back to San Francisco. We consider the home. We really look forward to the next steps. Thank you so much. Any other Public Comment . I have victor, do you still want to speak . Any other Public Comment . Public comment is closed. I am supportive of the item. I am supportive of the item, but i just want to note it is rare to see the Community Come together and this developer has assembled all of you in this room. I want to commend them on that. For us, fulfilling and bringing them back to the waterfront. I think it is long overdue. I am looking forward to a groundbreaking as soon as possible. Also, having other developers throughout San Francisco look at the labor agreement, from construction to operations as a model. I want to commend the project sponsor for putting this Community Together and i am supportive of the item. This has been a project that has been in the making for a long time. I think ricky and rebecca for a very thorough presentation. Always good to see j fc anywhere in the city. I want to give a shout out to labors in the house, you brothers and sisters, thank you for being here. Good paying jobs is important. Also, the cultural about our artist coming back. I have been there up in seattle, to come back here it has taken a lot of work. I really appreciate the vision. We are very lucky to have a back on our waterfront. It will help to be a beacon of light, a little hole down there in that gap. I think its going to light up now. I am very supportive of it, and i think, even our young kids that are in schools and stuff, to come down here on the waterfront and be exposed to that type of culture. San francisco, i know, everyone thinks we are this tech iconic city. We have always been a cultural city, way before we were a tec tech titanic giant. I am very supportive and i cannot wait for it to come back. Thank you. Ricky, rebecca, and jay, thank you very much for your presentation. I think the commission has gone over this project with a fine tooth comb. I dont think we have missed anything. I think we were able to negotiate a deal that is great for tzk on the part. I want to thank everybody that continues to come out, every time this is on the agenda. We really appreciate your input, and your support of this project. I think it is going to be a great addition to the waterfront. We look forward to the ground breaking. I guess we will see everyone again, in september. [laughter] thank you. Item 12 a, request authorization to our contracts. [reading notes] good afternoon commissioners. I am with the park contract city. The item before you is an action item, to recommend award of the parks as needed. [inaudible] each contract will have a value not to exceed 2 million. With an option to extend the term by an additional one year. This project complies with a number of the ports, particularly with sustainability, resiliency and equity. [inaudible] the contract will serve as master agreements which you issue Contract Service orders on a project by project basis. Part staff,. [inaudible] construction monitoring, environmental planning, dredging support services, and climate change. At this price, i will invite alisa to speak. I just want to do a quick introduction. We had a recent rotation of our compliance staff, from various department. The outgoing Compliance Officer has moved on to reassignment at the department of public works. However, i also want to introduce you to elizabeth alexander, who is your new Compliance Officer, stationed here at the port. Prior to her stationing here, she was working as a Compliance Officer overseeing contracts of the Public Utilities commission. Shes also one of the Program Managers for our mentor protege program. She is ready, willing, unable to help the design to cater towards benefiting the port mission. Prior to her arrival, in the city, she worked for the tenderloin housing clinic, where she was a Program Manager there. Also the Vice President of local 1021. At this. Because, i will call her on and she will continue on. Thank you for that lovely introduction. It is wonderful to meet you are. I look forward to working with you. The slide before you is the table. The ports conducted an analysis with how many lb ease in each category can perform the type of work this rfp requires. Included in this analysis is the analysis that 57 of the contract is highly specialized work. For example, dredging related services alone make up 37 of the entire project. This information was then used by cmd to calculate the availability of this contract at 12 . Environmental Advisory Services is the largest category with high lbe participation. This work is the work that must be done by the prime. As a result of the high number of lbes and the Environmental Services, all of the contracts before you have either lbe prime or lbe partner. In addition, while the lbe requirement is at 12 , 59 of all of the dollars of this contract will go to either an lbe prime and partner, or lbe subconsultant. 50 of the total dollars go to minority owned firm. Thank you. Thank you. Commissioners, we got approval on april 29, we issued an rfq. On may 14 we held a meeting at pier one, attended by 60 individuals from over 40 different