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Maritime revenues, the real story on our projections here is that cruise is driving the lions share of the growth in maritime revenues beyond typical cpi and thats really from continued enhancement in the increase in the number of passengers that are visiting San Francisco from 202,000 projected in 2013 to 261 for our projection period. Were also assuming that 6 passenger facility charge and special events and parking revenue from pier 27 which at the end of the 18, about 1. 8 million. So the cruise investment is paying off in the maritime revenue. So for operating expenses the drivers of our future expense are primarily labor, a lot of it is what we have and paying for increases in fringe benefit costs and cola adjustments, et cetera, and the other part is from adding new resources and positions that we believe are critical to meet operating efficiencies, protect our revenue and respond to who we are today. Also in prior years we ....
So for operating expenses the drivers of our future expense are primarily labor, a lot of it is what we have and paying for increases in fringe benefit costs and cola adjustments, et cetera, and the other part is from adding new resources and positions that we believe are critical to meet operating efficiencies, protect our revenue and respond to who we are today. Also in prior years we had that noncash adjustment for pier 70, the reduction of that environmental liability that we dont project having into the future. So this graphic just shows the main drivers, personnel expenses in the dark blue, charges for other city departments, other expenses, professional services. So Expense Growth is projected to outpace Revenue Growth resulting in a negative net income position throughout the projected period. Atz i said, it still shows we can cover operating and almost get to renewal ....
That we have seen continued growth in our real estate revenues and its also the policy of this commission to require market Rate Adjustments in our lease terms that have really helped to grow this revenue stream. Also as the city begins to recover were seeing enhanced performance in our real estate revenues. We also experienced strong growth in maritime revenues and really the two business lines that have shown the most growth are ship repair and cruise and both come from Strategic Investments from this commission. Cruise revenues, as you know, were making a strategic investment in the pier 27 cruise terminal and in past years its come from increased ship calls and passenger volume and we expect this trend to continue. Dredging and investments to expand dry document capacity and shore power at pier 70 really yielded results in that business line. Since 2008 operating ....
Away after construction is complete and environmental sampling data is submitted to water board. Installation of the cable along the bay floor does create some limitations on port use in this area. Its not an area weve dredged in the past. We spent a lot of time talking with Maritime Division about the depths of the bay, and they do not dredge in these areas so as part of this license we would be limited from penetrating the bay mud in the area of the cable project or permitting lateral crossings. In the area north of piers 30, 32, wed have to get pges permission to install piles along the pier to enable maritime uses. We do contemplate in the license agreement situations where the city and port would have to construct a major project and [inaudible] removal or relocation of the [inaudible] 1 line, but only after we jointly look at whether theres a way to design the citys project in a way that could avoid that relocation. And t ....
The big mark up on the agoly cull so the relative value to the base Facility Condition is pretty large, thats the 60 increase. 35, the conditions a little bit better, the view isnt as good. That concludes the specific questions that were asked two weeks ago, butre available to answer any further questions you might have. So moved. Second. Okay. Are there any Public Comment . No Public Comment . Commissioners comments . Yeah, i just had a question. I mean, i understand that we dont give outright what you would call as tenant improvements, but we often obviously give out rent credit and, which is in a way, recognizing that since theyre putting improvements in, were putting in credit. What is the formula that we think of when we decide to give a rent credit, which in essence is recognizing the fact theyre putting in the ....