January 5, 2011
San Francisco’s Last Minute Giveaways To Get The America’s Cup
According to the Examiner, last minute negotiations to secure the right for San Francisco to host the 2013 America’s Cup included additional revenue concessions and the potential permanent sale of San Francisco’s seawall 330 to Oracle Racing (versus a 75-year lease).
Four of the last minute changes:
1. Reduces revenues: Deletes a provision from prior drafts that would have allowed the Port of San Francisco to earn a small share of the revenues created when condominiums on the site are sold.
2. Enables property transfer: Laid out The City’s duties to remove all legal restrictions on Seawall 330, so that Ellison’s Oracle Racing team can own the property free and clear, rather than having to lease it for 75 years.
3. Clarifies developer revenues: Creates a mechanism for The City to pay back the developer for certain improvements on the waterfront, bringing the property back under city control. Spells out and speeds up the timeline by which an infrastructure financing district — a district that would allow developers to collect local taxes for public improvements to the waterfront property they’ve developed — would be proposed.
4. Established rental rates: Sets rates for the long-term leases of Piers 30-32 as $4 per square foot, and of Piers 26 and 28 as $6 per square foot.
While the changes were not explicitly approved by San Francisco’s Board of Supervisors, apparently the agreement which the Board of Supervisors had previously approved provided the mayor "wiggle room to keep negotiating as long as The City wouldn’t have to spend any extra money" but didn’t prohibit negotiating away potential revenue.
∙ America's Cup deal was sweetened to bring race to San Francisco [Examiner]
∙ And The 2013 America’s Cup Will Be Held In…San Francisco! [SocketSite]
∙ San Francisco Board Of Supes Unanimously Back America’s Cup Bid [SocketSite]
First Published: January 5, 2011 9:00 AM
Comments from "Plugged In" Readers
so the "Cup" race is not really a "sport" but rather a play to strip naive public entities of real estate assets?
HAHAHAHA, stupid politicos
Posted by: bernalkid at January 5, 2011 9:18 AM
So if seawall lot #330 is sold to a market of one, how is fair value determined ? This smells like a giveaway of prime real estate.
Posted by: The Milkshake of Despair at January 5, 2011 9:22 AM
From ending up still owning it to selling it off sure sounds like a lot of "wiggle" to me.
Posted by: BobN at January 5, 2011 9:51 AM
Ha ha, Ellison just got rights to a lot that is going to be taken by the state for HSR! NEwsom gave away nothing that wasn't going to be taken anyway.
Dumba$$!
Posted by: tipster at January 5, 2011 10:14 AM
Is Seawall 330 part of the Beale alternative for HSR? CAHSR is not planning to use the Beale alternative.
Posted by: sfrenegade at January 5, 2011 10:35 AM
On the flip side, each Watermark unit owner gets a free copy of Oracle 11g.
Posted by: Can't think of cool name at January 5, 2011 2:13 PM
The city didn't give up all rights to seawall lot 330. There's a provision in the deal that calls for a transfer fee of 1% when any condo built on the lot is sold. Ellison's developer won't get hit by this. It doesn't apply to the first sale, just to any future sale, in perpetuity.
Posted by: Salarywoman at January 5, 2011 7:57 PM
The definition of a "dumba$$" is someone who thinks a man who built a 157 billion dollar corporation from scratch is a "dumba$$". You know who you are.
This is good for Larry and for SF. If you've ever been to Auckland, they've been milking the Americas cup angle from tourists for 20 years and everyone benefits.
Good job to Larry. I hate yachting, but looking forward to seeing what capitalism can do to get rid of the communist element from this town.
Posted by: Jimmy C at January 5, 2011 9:08 PM
Oh, yes, capitalism-- the wealthy and powerful arranging to receive government subsidies.
It's funny. In ancient Rome the wealthy would pay for spectacles. Our wealthy are smarter, I suppose: they've figured out how to stick the people with the bill.
Posted by: Al at January 6, 2011 2:48 AM
On the more serious side, if the team owns the property, is there any idea of what they can and can't do with it? For example, can they simply sell the property to whoever they want after the race? Or does the city get first right of refusal? Any ideas?
Posted by: Can't think of cool name at January 6, 2011 7:47 AM
Tipster, the 'Beale Street Alternative' for HSR got nixed a long time ago for a number of reasons such as being too close to the Bay Bridge foundations and having to spend something like a billion dollars to eminent domain and demolish many of the buildings in the area.
7:47, every parcel in SF is zoned for specific limited uses. So Ellison's team could sell the parcel (SWL 330) but the use couldn't change. The City prefers condos get built on the property but there are several other allowable possibilities such as a hotel...
Posted by: anon at January 6, 2011 8:30 AM
So, are we going to make money, or lose money?
Posted by: Q at January 6, 2011 2:32 PM
Are we really interested in rich man's yacht race? It is really a real estate and revitalization project in disguise. Ellison better perform (on the rebuilding and retrofitting, not that we care about his yacht).
Posted by: Wai Yip Tung at January 6, 2011 3:21 PM
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