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Going the way they had planned or projected, [speaker not understood] they want an opportunity to help out. When the fifth amendment to the current lease was entered into in 2007, bae was not given the option to be able to [speaker not understood] not until january this year. So, that was a six and a quarter year from when that provision was provided. So, were carrying forward the same term into the new lease because the new lease is going to be for 20 years. So, we are including an option, new yearly termination until 12 years into the new lease. Here are the proposed key terms of the new lease. The initial term is going to be for 20 years. With a probation for two fiveyear extensions. So, if they do exercise the two extension optionses, we will be looking at a total of 30year lease. The base rent now is being increased by 14 to 1,200,000 in 2015 as a way to enter the lease by the edv of this year. ~ end [speaker not understood] that makes a comparison between the existing lease, rent ....
Upgrade and what it will look like for the entrance in San Francisco . And we would love to have a chance to take a look at that. I dont know what the neighborhood that you are located in san diego is like, what the neighborhood is like. We know here what we are hoping to see and how everything fits in nicely together. Right. Okay, thank you, commissioner. Appreciate the opportunity. What i am expecting and anticipating as we redraft a master plan considering the location were in and the change in configuration, the yard, i expect to go to a turnstile kind of entrance like you saw there and not and open up in the back of the yard where the triangle lot is a turnstile Employee Entrance there as well so there will be less traffic that goes right through the front of the shipyard near crane cove park. People would drive down 20th, come into the back lot and employ ease would e ....
You to come up with a great design. Thank you. [speaker not understood]. Just very briefly, we touched on Climate Change and Sea Level Rise and thats probably a much bigger question than we have time for today, but its impact on operation there and how it states here in our report that there are provisions that reference the impact of Sea Level Rise, but im not sure we have anything more specific, or is that just general statement . Its somewhat general, to be honest with you, but its something that we look at in every deal we do per the commissions direction. Without you know, the beauty of the facility here is with the dry docks, [speaker not understood] is not an issue. For the land side it is an issue. I think that in terms of [speaker not understood] bae having essentially 20 to 30year lease, theyre going to have to ....
Could we be more specific on your marketing, marketing plan, how you market it in order to so that we can benefit from the gross receipts . Sure. Well, we do have you know, i have locally a Business Development person who work with me and works directly with clients seeking out opportunities. We also watch of course, all the state and federal opportunities are posted and so we watch for those when they come out. We work with our clients to find out what their upcoming repair need and what they might be looking for. We have a fairly good handle on who the market is or who the ship owners are. So, we seek them out and try to make connections and make sure that we are placed in the best light for opportunities that come up. Thank you. I have one question for peter. On the Liability Insurance you have 5 million in there. Isnt that low for something of this magnitude . ....
[speaker not understood]. Just very briefly, we touched on Climate Change and Sea Level Rise and thats probably a much bigger question than we have time for today, but its impact on operation there and how it states here in our report that there are provisions that reference the impact of Sea Level Rise, but im not sure we have anything more specific, or is that just general statement . Its somewhat general, to be honest with you, but its something that we look at in every deal we do per the commissions direction. Without you know, the beauty of the facility here is with the dry docks, [speaker not understood] is not an issue. For the land side it is an issue. I think that in terms of [speaker not understood] bae having essentially 20 to 30year lease, theyre going to have to take steps to protect their assets and our ass ....