Test test test i pledge of allegiance to the flag of the United States of america. To the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. [reading items] we do have speaker card. Aaron thorton and then kevin carol. Hello my name is aaron thorton. I am from stacy architects. Im speaking on behalf of of the project today which has been continued. Im here to speak anyway. Ive been to the groundbreaking of the ground project that came before the Court Commission about a year ago. Really excited to see that project started on a really look forward to the groundbreaking. They have been great partners as we have been developing the project area im excited to see that freeway site developed. I just wanted to add our support to the project. Thank you very much. Thank you. Kevin carol and then bill hannon good afternoon commissioners. I am the president and ceo of the Hotel Council of San Francisco. Im here to speak in support of the project and the Kenwood Hotel project to get we believe and have believe that this is an incredible project that will bring a new entertainment venue as well as a place for our visitors to stay when they come here to San Francisco. Its been very well planned out. Theres been a lot of Community Meetings on it. The project is something that will help activate an area that can use activation as well. Hotels obviously bring good job to an area. They bring activation and it is something our board of directors and our members support as well. Im just here to wholeheartedly support the project that is before you. Thank you. Bill hannon and then laurel fish. Good afternoon. Im bill hannon with the gateway tenants association. Our members that live in the gateway residual complex located two blocks south of the site. Im here to repeat our wholehearted and enthusiastic support for the project. It will be Good Business it will be good for the court cultural life of the city. We needed the beach like it babylon is folding up its tent. We enthusiastically support this and hope you will support the lease and the meetings to come. Good afternoon. My name is laurel fish with unite here local 2. The hotel and Restaurant Workers Union in San Francisco. We are here to audit support to those who support the proposed hotel, as a Union Representing hospitality employees it is our utmost concern that new jobs created in the industry will serve to lift up the community by providing leading wages and working additions for the hardworking people who work in our cities hotel. Hotel developers have historically supported the creation of job by agreeing to remain neutral. These agreements represent a double win for our community. They ensure that jobs created are good quality job and they also guarantee that Hotel Developments are free from costly labor disputes. Local two has had a longstanding collaborative relationship with the developer of this object who has worked proactively with our union to sign such an agreement. The developers have also agreed to build the hotel with union labor. As such they are setting an example for the developer of the future hotels in the city and for these reasons we are pleased to support the project. Good afternoon commissioners. Im representing the Barbary Coast association in full support of the project. We certainly want to complement the developers because they have been very accommodating as far as outreach to the community and listening to any concerns that we may have and resolving those. Secondly, i think the theater itself is a unique architectural item that will bring some variety to the area, and of course obviously is going to bring some entertainment to which we believe this wholesome entertainment will be a real benefit to the neighborhood. With full support, thank you. Any other Public Comment on items not listed on the agenda . Public comment is closed. Good afternoon members of the commission, members of the public and port staff. Im the executive director and i have one item to report today. That is just this afternoon, port staff and i come and commissioner gelman attended the groundbreaking 488 broadway as well as 735 davis street. The port staff is especially proud of 88 broadway because it is our land and that will be home to 125 units of Affordable Housing for families earning 30 percent to 120 percent ami. They will be projectbased section 8 housing vouchers in the project. Senior housing and units for formerly Homeless Individuals we had i know the commission and i are very proud, mayor breed was out the groundbreaking along with supervisor aaron peskin and the developer jon stewart and company. We are just very proud that we can be part of solving the Affordable Housing crisis in the city. It was really the community who came to us many years ago now to say that they felt that our under lot underutilized seawall lots would be a Good Opportunity for housing. And then we began to t which in the tradition of delancey street allowed us to provide our surplus poverty for housing. We are very proud of the groundbreaking today and congratulations to everyone who was involved in that project. That concludes my report. Any Public Comment on the executive directors report. I would just like to add june 18 through twentieth, the American Association of Port Authority have their seminar for port governing boards. I attended. I was happy that San Francisco could host the repair. There were probably 85 commissioners on their significant others. Most of them came to San Francisco days before the event and stayed days after. They help the economy here in San Francisco. They hosted a reception for everyone, which was really nice and then director forbes did a panel on infrastructure on steroids and Lessons Learned along with the present ceo of the port of san diego. They did a phenomenal job. Everyone was happy and wants to come back to San Francisco. Thank you, elaine. Item 10 a, request approval of fiscal year 2019 through 2020 monthly rental rate schedule, monthly parking stall rates and special events. Do i have a motion . Second. Any Public Comment on this item . All lives matter one favor . Resolution 1924 has been appropriate request approval of lease number lone six five four seven 515 year term with two five year options to extend with golden gate scenic Steamship Corporation located at pier 43 and a half in fresheners wharf area good afternoon commissioners. Mike martin, real estate and development. Joined today by j edwards, our Senior Property manager who has led this negotiation. As well as our deputy City Attorney who has given us a ton of assistance on the way. This is a followup to your may 28 meeting where we heard information item on this lease renewal. We went into depth at that meeting regarding the appraisal by art blom and associate and how we incorporated those financial metrics into the lease. At that meeting you directed us to go negotiate a final lease which we have done. We are back here today to seek your approval. Rather than going through all of those financial metrics again i think i will give you some background on the lease again for the publics benefit. Give you a bit of the background for our recommendation. Im obviously happy to respond to any questions as we did obviously put the Financial Information in the staff report and obviously if you have questions i can respond to those yet moving forward as we talked about in may. Families have continuously with maritime businesses in the location since 1974. 400,000 passengers a year getting out to go and enjoy the bay. They keep port of the Maritime Mission to bring visitors to this unique waterfront. Red white fleet operates a fleet of five vessels some of the most recent is pictured here. A hybrid electric drive vehicle that greatly reduces emissions and obviously is a great step forward in terms of the ports excursion fleet in terms of its sustainability. The project includes a significant Capital Investment in the facility on the shore site. The project, approving the lease would authorize subject to regulatory permitting the tenant to perform improvements to the shoreside to replace the current ticket booth facility with a new birth booth as well as improving the staff facilities as well as the customer cueing in relation to the nearby Public Access. This would rationalize the site greatly along the highly trafficked corner of the waterfront in this area. The estimated cost of the shoreside improvements is 1,600,000 and they would proceed immediately after approval of the lease renewal. Phase 2 of the project would follow on the water side. As we have discussed with you the may 20 eighth item as well as the prior information item. Pg e is performing some Environmental Remediation in the water in this area and on the land. That is proceeding in the near term. What we have structured the lease to allow is when that remediation is done, the tenant can move in and perform the water site improvements. These improvements are critical to our expectations of improvement in these operations. They will expand the number of births from three up to four. Which would greatly improve the efficiency of passion or loading on the overall operation. Eventually resulting in further revenues to the port. In addition, the estimated cost of these improvements is 3,000,000 dollars. The next two slides give a pretty good depiction of what they are doing. Basically here is the existing facility, somewhat cramped next to pier 45 to the left of the overhead here. This is a depiction of what the proposal would have, sort of tilting both of the floats outward so that it can be used productively and effectively. We would also ask and the lease area on the water side to allow for exclusive use of this area for the passenger boarding. Wanted to take a moment to discuss the maritime excursion lease renewal policy which was described in the staff report. I think it formed the basis of port staffs negotiations of this opposed transaction. August 2010 the Port Commission adopted the policy to establish internal guidelines for excursion leases the policy sought to ensure that maritime excursion leases are fairly valued, generating revenues to the poor serving residents and visitors to get there are seven pacific additions that we laid out in the staff report we actually attach the policy as well. The proposed lease renewal satisfies all of those criteria. The policy also calls out to what needs to be in the lease in terms of lease obligations. Using the appraisal a restaurant earlier we ensure that the business terms matched up with the fair market value of what can be expected at this point because for a lease such as this one. We look at operations on only here in severances but elsewhere in california as well as in new york city, and other concessions as well. Not just maritime excursion to find the best comparables. There was one i want to highlight that the policy doesnt require the commission to say yes once youve checked all of these boxes. Theres a specific part of the policy that says if there is a proposed project or landuse consideration that would affect the operation of an excursion operation in this location the Commission Reserve the right to say we do not want to renew the lease in this location. Based on what i described earlier about managing these improvements around the remediation. We dont feel like any of these circumstances are present here. We dont see any landuse consideration that would get in the way of a continuation of an excursion operation at this location area with all of that in mind, i think we recommend approval because it complies with the policy. It doesnt bind the Port Commission to approve the item. It is to ensure that there is protection of the maritime excursion business for clarity about how the port would evaluate a lease renewal like this one. We feel like we have achieved that. We also see, you know, we are hoping for opportunities to grow our excursion businesses. We talked about relation to what people want to see. We think if there are new investors that want to come in and access this market, that might be a great way to not only further their businesses but save these historic. We think this renewal support the ports maritime position. We recommend your approval. Without im happy to answer any questions. Thank you. May i have a motion . Do we have Public Comment . Good afternoon commissioners, i am cochair of maritime Commerce Advisory Committee. We spoke in support of this resolution at the informational hearing. This warrants another appearance to, again, reiterate our endorsement for the resolution and the lease renewal. We are thrilled to see successful culmination of what has been a really long process. I want to thank the staff, and the commission for your wisdom, your thoughtfulness, your conscientiousness, your dell diligence in getting to this proposal where it is today. You know, red and white fleet has been an absolutely terrific member. They have helped to contribute to all of our recommendations on environmental improvements, Public Access improvements and Maritime Operations related to historical peers and the work that we did on the waterfront landuse planning process. I think you are really proud, and we are proud to have red and white fleet as a tenant. We are so excited about what is forthcoming with the shoreside waterfront, when the remediation process is completed. Again, thank you for your support of this resolution and a longterm lease. Thank you. Any other Public Comment on this item . Good afternoon commissioners, i am a historian and creator of the california africanamerican freedom trail. One of the things about supporting such a business in the community is its awareness of the unique cultural experience of San Francisco. We are in the process of completing an audio tour of africanamerican maritime experience that will be part of the red and white experience and pacific black culture maritime tours. For those reasons and many others that have been cited, we support the approval of this lease. Thank you. Any other Public Comment on this item . Seeing on. Public comment is close. Commissioner makras . I will be voting against the motion. I do believe they do have the policy of maritime and the boundaries of that. I also believe that an operation that has not been put out since 1974, should go out to bid. Particularly when we know there is operators out there that would like to bid and compete for this business. If we renew leases after 40 years and add another 40, we are really saying no one else can bid on it, and its going to be the same group of people having all of these fantastic leases for longterm forever. I believe it is in the publics best interest to lease it out that will have competition and there are more than two operators that we know that will bid on these. I think the port should benefit the competitive nature to maximize the return on the ms once. Therefore, i will not be supporting the item. I am supporting the item. I think we have had a tenant in longstanding, red and white fleet. They are actually leading in some of the maritime efforts that we have going forward. I dont have any further questions for the lease area i believe, you know, we are about to resiliency and ability. That is part of our strategic values are yet i believe this lease qualifies im not aware of the other operators that mr. Makras has referred to . I believe we do have other operators so we have not given it exclusively to one operator. They do have the opportunity to participate with us. I am not sure that i see that as a reason to object to this lease. I think it has been done fairly equitably with transparency and i think staff is done a great job and trying to make sure that this lease is being recommended on the best terms possible. I will associate myself with commissioner woo hos remarks. I will be voting in favor of this lease on the ocean. I want to point out this fleet is one of the first to do a hybrid theory. Someone who rides varies often i think it is important that we recognize when operators are doing the best to help the environment which is also part of our strategic plans and values around environmental measures and being as green as we can as an economy here on the port area i am very supportive of moving this forward. A lot of times think that Port Commission is a rubberstamp. I can deftly tell you this commission is not, as you can definitely see, everybody has their own mind its thought process. I will also be voting in favor of it, and, red and white have represented good union jobs, good for the community. But tom rusher has been a man that comes to this Port Commission when there are things on the agenda that has nothing to do with red and white. When we had to deal with the Navigation Center down here, tom was here for the whole time. He is engaged, he is a part and a fixture, not only to this part ports but this community. As i said, i will be voting for it. It the right thing to do i hope that my other commissioners will vote and youll hear from them. But