Annual rent would be established by a formula in the term sheet and based on industrial up land land. We are projecting that value is between 50 a square foot and 75 a square foot. And that would generate 583,000 rent to the port and on the high end 872,000 to the port which would be indexed there after. One of the major Public Benefits we sought in this negotiation with at t is port option to buy the ho down yard and near the pier 70 site. Its adjacent to the pier 70 site. Using this appraisal depending whether its on the low or high end our option to buy it would be 6. 5 million on the low end and 8. Nine on the high end. There is a comparison to the term sheet and negotiation agreement that we often super for agreements like this and under that agreement at t would reimburse the city for port staff and City Attorney costs. This is the ho down yard. Its the two parcels on the top left of the screen is separated by michigan street and on port property. On the left side of the parcels
Of transmission lines that come up from the peninsula through the po tearo power plant and connect to the embarcadero substation that provide power to downtown. At t has proposed a new 230kv transmission line to provide redundant transmission line to the embarcadero sub station. At t and port staff have collectively communicated with the mayors office, the San Francisco Public Utilities commission and the city administrator about the project. The city administrator was charged by then city administrator ed lee to look at these types of risks to the city in the event of a major seismic event and how we protect against them and weighed in favor of the project. At t is looking at a number of proposed route s. One proposed route if approved by the california Public Utilities commission would involve submerged port property. This is a map showing the potential routes between portero substation and embarcadero substation. You see the submerged route in blue and enter the bay north of pier 30
Stadium and the arena looks at from where people live coming up on the embarcadero on the west side and they are planning on a mounding and a mounding is going to affect peoples views of the bridge, peoples views of the waterfront, so we are going much, much too fast, and what are you voting on folks . You should ask your staff. What scheduling what assumptions youre voting on for alternative sites . Thank you. Is there any further Public Comment . I hope it up now for comments and questions from the commissioners. If you could brad and both of you come back up. I think one of the things i appreciate the presentations and comments that everyone has made. This i think several of the speakers alluded to and one of the great things about San Francisco there is so much participation in everything, and you both articulate the more about what the fiscal Feasibility Study is and what it does and if you could detail that a little more . Explain the cost of capital versus the rate of return. An
Information as possible and get to where we are which is truly the beginning there is a lot of talk and we are committed to moving forward in the cac process whether workshop format or a format where there is less formalized agendas but opportunities for free flowing comment and the meetings more productive for everyone and responding thoughtfully. That is something were willing to do this the many, many months ahead that face this project. I will say again on the 13 what i want to emphasize is that the 13 is reflects the cost of capital that the warriors will have to go out and borrow in order to invest in our Public Infrastructure. The city uses its Balance Sheet and its ability to publicly finance infrastructure for things like roads and parks and a hospital and a new Public Safety building, and laqueena honda and mos conia expansion and the cruise ship terminal. We invest in our Public Infrastructure all the time and we do it on things that benefit the public broadly. When we have
Recommends approval and for the port to enter into the term sheet and negotiation agreement. As we did with other projects of this type port staff would be involved with Environmental Review of the project and review the work done by cupc and if the project is approved by the Port Commission the coapplicants to others involved in the project require jurisdiction so that concludes my presentation. I welcome any questions from the commission. So moved. Okay. Is there any Public Comment . Second. Okay. Is there any Public Comment . Good late afternoon. I am joe boss. I live in dog patch. Very involved in many things the port has done over the years and a lot of things having to do with power, and i served on the mayors power plant task force for 10 years and the reason for that group was to try to work something out where we could get the older generation taking care of and taken down which we did, well, we didnt. Everyone did and part of that was the Trans Bay Cable and while going throu