work. then you have a small group of about 200 people involved in violent demonstration. when we were able to arrest several hundred of them, the stats were stunning. of the 88 people arrested for violence, only 11 live in oakland. a couple of them i recognized as people who said they just moved here. it is, i think, a shrinking movement, in terms of the violence. i think the long-term issues will not go away for a long time. i am hoping, and it is one of the reasons i have been willing to debate this, for the commonwealth club in the bay area. most of the people were coming into the demonstration, whether in support of oakland, or this recent, more violent grouping -- two-thirds are coming from outside the city. it is the blessing and curse of being so centrally located. we watched the demonstrators come off of part. many are coming from the city and the area. it is not just an oakland problem. it is in the whole bay area. >> if there is another attempt to shut down the port, will the police take additional steps to stop that from happening? is that something you will have to live with the experts >> let me be very clear. i did not appreciate theit is ca lot depends on what the longshoremen to warn do not do. -- do or do not do. we certainly have the resources, if we want to do that. that is something the port and we are both committed to trying to keep the port open. but it is more complicated than police. it has to do with how the longshoremen feel. it has to do with what kind of resources you want to use. several of the families i have been talking to the last few months decided to divert or change the times of operation. keeping it open or not means a lot of different things. it is not a simple thing. nobody should doubt we are firmly committed to keeping the port of oakland competitive, and to do what we have to do for the protection of the port in the port companies, and the poor leadership. -- port leadership. >> to move to the 1%, in terms of yacht racing, america's cup has been a big story in san francisco, and so far a success story. it seems negotiations and fund- raising have hit significant sticking points. what is needed to get the process back on track? what are you doing about it? >> america's cup -- we are very fortunate to have landed in the city of san francisco. that was one of the first things i talked with mayor jean quan about. we are engaged in discussions in three sides of the bay, to talk about adequate security for the people who come here. we are still very excited about it. we know the budget analyst report caused some concern. they talked about the worst-case scenario as well as the best case scenario. worst-case scenario -- the money is not raised on the private side. we have challenges with investments and the agreements we want to have with the investors. the best side is we make $2 million after a billion dollars of economic impact for the bay area, 8000 jobs that will be created as part of this ongoing effort. i think we have the foundation for it, going forward. i think the private fund-raising is there. we have a good team of people. they are raising that money. i think the negotiations that are going on with the event authority and our board of supervisors right now to talk about the trade-offs, if you will, with these investments -- a number of our peers will have good discussions that might signal some changes, because of certain areas where the public would like to have some types of development. that is all i think being negotiated. we trust that by the end of the month we will reach that agreement and go forward on the infrastructure work. i was very excited to help physically and knock a hole in the wall at pier 27 to get the cruise ship terminal going. the port for decades has suffered from non investment. that has allowed half of our peers, if not more, to deteriorate. we are lucky that this yacht race, one of the world's most watched sailing races, has turned a corner with us and allows for this private investment of over $100 million. we have not seen that kind of investment in several decades. i have often said this. i am no longer looking at this division between 1% and 99%. we want people to be successful. but we also will create an atmosphere where the best success would be shared. you have a mayor and a board of supervisors working together to create new generations of philanthropic programs that we must have, working for an intense year with a billionaire, who created the right foundations, reached out to you, and connected the gaps in education. that is what i want to do more and more with people like mark benny off -- benihoff, and zynga and twitter. we will have a cadre of billionaires' at the same time they are to san franciscans. they will demonstrate how they want to work in the city and how we can create jobs. >> it was said no public money would be spent on stage in the america's cup. is that a promise you can still make? >> i am confident we will be dependent on private investments to make sure america's cup is successful. the $32 million, $12 million of which has already been raised, will be succeeded in our fund raising. >> oakland has had a bit of a hot streak the last few years in attracting tech companies -- pandora, and rumors of a couple more. there is indication that rent is about to go off the charts, or at least up the escalator, in san francisco. that has historically been very good for oakland. are you expecting that to happen again? are you encouraging those companies to come to oakland? >> i try not to get in trouble by venturing over there too much. we're trying to respond and take people out. in may, we will be doing very broad outreach to investors. if you take the lower rent, the fact that we do not have a business tax, a payroll tax, the discount we give new companies moving to oakland, and if they use enterprise zones -- that would save us $35 million over five years. obviously, san francisco -- a lot of their companies are growing. they grow naturally. we have a similar climate. which is finished hour by plane. we are right next to berkeley. the art and restaurants in is attracting a young, well- educated work force in oakland. i think we are pretty attractive. i know that a lot of people are trying to lock in their leases around broadway. i think things can start to happen around the airport. there are 2000 committed units already on the books. "we see is already action toward people changing those permits so that are of little more diverse than mixed development. i am pretty optimistic that within the next year or two you are going to see that, plus the opportunity for some major new projects. we see policy in the city as being a lot like the staples center in los angeles. it is where the airport connector meets the coliseum. we think the combination of sports franchises, hotels, other entertainment units, and this area of retail is going to be an amazing project. we are about to name the company that will be leaving that in the next couple of weeks. particularly for hotels. >> the flip side is with all the tech built in san francisco -- if those companies are going to continue to grow and more are going to join them, new development is going to be the answer to that. getting anything out of the ground in san francisco can be a bit of a trial. how could you clear away some of the obstacles of this sort of development can happen quickly? >> it is a good challenge to have. i bring back my days of the department of public works, where we did sit -- did do some very efficient processes. i am meeting with development groups on a regular basis, with technology groups to get their input. we have good synergy going on where all the different departments are in gage, whether it is building inspection, planning department, public works, a different agencies as we go to the port. we have good leadership at the port. others are focused on being on the same page with me about job development and creating an environment in which projects can go faster. once projects are out of planning, which is a challenge of itself, i want an execution team led by my office to make sure there is no delay in permiting and the coordination it takes, whether it is with pg&e, at&t, and the others. we all want, once that permit is improved -- is approved, to have those jobs come quickly. we want an efficient team. we have created that with all the different agencies collaborating. we have different point people already engaged in all the major projects in the city. we of project managers that cover hunters point, alice griffin, and the commitments we have with federal money, treasure island, and mission bay. the critical years when messrs. brown and newsom created mission bay, we used our re-development tools in such a way that it is attractive right now. when we have great entities like the giants, who now have development rights on their parking lot, we have a very strong biotech industry. heat is -- there is a major investment team with innovation hubs or write in mission bay. >> what are you going to do differently? >> we have to replicate the tools we used best. i know that is what mayor quan and i are going to. i created an oversight committee. they were all technical people that had been very much involved in the redevelopment processes we had before. i wish fred would have stayed with us. but the mayor did come in and rob one of our best talents. i think fred has been wonderful to us. he left us with a very good team, good vision, and good discipline. we are transitioning as we speak. now that we have established, with the unanimous oversight committee -- we are creating a delivery team. we have divided responsibilities between our city administrator's office and our work force division in the mayor's office. i will personally be overseeing a lot of that to happen. we made a commitment. we are not going to let housing go. house and was -- the number 1 producer was our redevelopment agency. i announced at the start a housing trust fund, and invited all of the developers and housing advocates to help figure out how to create a stream of around $50 million a year to keep up with a need for affordable and workplace housing. housing is a challenge. we knew that from the start. we made the financial it commitment to make sure we take care of that. we are in the room now with the best minds. i started the trust fund working group. one conference room was filled, standing room only, with entities who wanted a common dialogue about how to create a housing trust fund to build the kind of housing we need. we know that if we do not pay attention to that, having lost redevelopment, we will lose the housing struggle. that will mean a tremendous authority to help people who worked at different economic levels. >> why has redevelopment hit oakland hard? >> he is the city and county and got to take over himself. that is unique. you have to remember oakland is a poor city. we had many more blighted areas. we expanded the redevelopment areas amazingly. some of the products are worked out very well. when i started working downtown, we were still suffering from a lot of damaged buildings. you do not see that now. if anything, the uptown and redevelopment tax is ahead of schedule. that is why we are no. 5 on the new york times list, in many ways. what i think is the lemons from lemonade -- the fact we have had these blighted areas and these long old industrial areas are now becoming the hot areas. i see the estuary being very much like what happened in mission bay and near the airport and coliseum, areas that can be massive for research parks or office spaces. as well as integration of industrial uses other areas. we continue a fairly diverse economy. i think what we are saying is when you are the major you have to represent the 100%. i took my little 99% button and changed it to 100%. we need to grow the entire city. in our case, we are looking at an economy that has industrial roots, historically. we are rivals for a new, green, and tech industries. at last count, we had 250 of them. when we move forward in these new areas, redevelopment was very helpful in terms of the land, the cleanup of the brown fields. i think there will be some state programs that will maintain affordable housing, the brownfield's aspect, and the transit-oriented development. our redevelopment funds are already set and should be safe. we expect a lot of continuation. some of our stuff has already been ok under the deadline. i think there will be new mechanisms. i think steinberg is looking for a way to keep and save both affordable housing and transit- oriented development. >> with what mayor quan said -- as i emphasized in my presentation, one of the most important things that we as mayors need to do is make sure we create an investor-confidence situation here. what redevelopment has taught us is they had investors dependent on a certain system to work with tax increments, but we have lost that. we now have a challenge. how do we continue with investors, who invested multiple millions of dollars in our re-development strategies? how we keep our investor confident about what we're doing. that is how this audience is good to be able to help. >> on another topic, you referred earlier today to the changes your administration is made it -- is making to the peril tax. there have been many attempts and failures to do that over the it years. what is the difference this time? >> i have used my own style of communication in this effort. all the businesses are experiencing a new fund relationship and level of communication and of not had in a long time. we are not going anywhere. i am here to stay and see this out in every aspect of it. i think these conditions offer us a good level of conversation about what it is that we need to replace it with. we are already working with the comptroller -- the controller's office. how does any tax impact the industry's? what is the outlook? "we do this work is not a sudden thing? it could be manageable. taxing and tax structures are all about expectations. financials like wells fargo and high tech, or large employers -- we will do it right. the new conversation is we have to be smart in our legislation. that means getting the input of the front end, not surprising everybody, and floating out those ideas in ways in which it is not favoring one over the other, but is what is best for the whole city. it is a pin bearing on our outlooks. >> you have a housecleaning, bringing in new executives and department heads. you mentioned earlier this week that it was something, looking back, you wish you had done sooner. is that process complete? do you have the team you want fully in place? other pieces that still need to be moved in? >> i think oakland is strong. you have mayors who have been involved in different levels of government. the first mayor who wants to be comprehensively involved -- that takes looking at the whole department. i waited until i had my administration in place. i wish there were a couple of positions i could have moved earlier. the team is coming together. we will continue to reorganize. we have new institutional issues coming up in the next decade we have to look at. i am almost worried that we have cut too much at the administrative level, trying to cut bureaucracy. we will see. we named public safety issues, and the first of african american woman to lead a major metropolitan fire department in the country. we are looking at other departments. we have several other openings, partly because of retirements. i think we are trying to be nimble. what i have tried to do is really provide an opportunity for us to have the best and the brightest, and start growing our leadership from within, giving younger people in the administration a chance to move up, but also to work in partnership with the business community. we cannot do everything. if we are going to succeed, we have to do it in different ways. we are looking to bring in businesses. we talked yesterday about, as we negotiate with the legislature, what kind of new housing or new transit-oriented funding can bring together some of the top developers in the city, to bring us ideas about what they need. we are not used to packaging products the way asians and others are used to when they go and invest in a different country. >> that is the green card investment plan. you bring in $500,000? >> and you get two vises. -- visas. i have seen people come with half a billion dollars they want to invest. they want a clear return, a bundled package. we are not used to doing that. we are struggling with how to fully take advantage of those. i have been studying that pretty carefully. >> that was a project that required a system. -- assistance. >> that is what we do. >> the yankees always need money. mayor lee, you quoted the tech industry pretty heavily during your campaign. i do not know if it is properly referred to as an election campaign or a reelection campaign. you formed a task advisory committee at that time. i am not clear if they are still in existence, and if they are what advice you are getting from them. >> it is very much in existence. sfcut -- sfcity is a group of 100 technology companies who have formed a new relationship that is almost considered to be a technology chamber of commerce to advise us on a number of things. they set out, consistent with my priorities -- they wanted to start creating not only jobs they are already establishing, but post them in a way which could be reached out to all san franciscans who wanted those jobs. that was the number-one thing they did. the second thing they are hoping create is unemployment training center, where the skill sets of this technology companies are being identified. that still set will be the center of that training center. the employment training center -- they are finding themselves. they are going to be connecting up that training center with their schools. likewise, the linkages with our high school kids or junior high school kids -- what curriculum do they need to be good at to get to the sales forces of the future, as they come out after college? that is the future of sfcity. in the meantime, i appointed a chief innovation officer for the city of san francisco, that is my connector to sfcity and code for america, a nonprofit of technology companies that does what they call kharkov bonds, -- call hack-a-thons, which they used to help the government look at the way they deliver services, and do business, and use the innovation of the technology world to overlay process with new ideas about how to deliver services more efficiently. with that relationship and through our chief innovation officer, we have got, i think, the beginnings of a brand new relationship that i think will bring us closer to the business needs of that new industry, but at the same time allow us to change the way we do business so we can be more responsive to that. the first year i did this breakfast, it was willie brown in your seat, jerry brown in your seat, and we had questions about the difficulty of buildings for the stadium in order to retain teams. it feels like groundhog day. how many years on, we are still there. you seem to be in the hot seat. you have three professional sports teams, all of whom could go elsewhere. i know you just approved a $3 million grant from a reve