Larry Ellison

Citizen Agnos comes on strong for Proposition B in support of his Athenian oath

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By Bruce B. Brugmann  (with the complete  text of Art Agnos speech  to the  May 21 dinner of San Francisco Tomorrow)

When Art Agnos was sworn in as mayor in 1988, he used the Athenian Oath that was taken by young men reaching the age of majority in Athens 2000 years ago.  He shortened the oath (as many did) to say: “I promise…upon my honor…to leave my city better than I found it.”

For Agnos, a Greek steeped in Greek traditions, the oath was a serious matter. “At the heart of our vision,” Agnos said in his inaugural address, “ is a refusal to let San Francisco become an expensive enclave  that locks out the middle class, working families and the poor. At the center of our strategy is a belief in the basic right of people to decent jobs and housing.”  

Twenty-six years later, Citizen Agnos was working hard  in private life to leave his city better than he had found it. He led a citizens’ movement that stopped the monstrous 8 Washington project, knocked the Warriors off the piers, forced the Giants to lower their  highrise expectations,  and promoted Proposition  B that would stop  the Wall on the Waterfront and require a public vote on any increases  to current height limits on port property.

 And Agnos is having the time of his life doing all this, as he made clear in his remarks to San Francisco Tomorrow, the one organization in town that has been manning the barricades in every major Manhattanization battle all these years  on the waterfront and everywhere else.  He enjoys taking on Mayor Lee and “the high tech billionaire political network that wants to control city hall and fulfill their vision of who can live here and where.” And he must relish  the Chronicle’s C.W.Nevius and the paper’s editors and their self-immolating bouts of hysteria.  

Agnos gave a splendid speech and confirms that he really is our best ex-mayor. I particularly liked his point about the “power to decide” on development. “Today that power to decide is in a room In City Hall. I know that room. I have been in that room. 

“You know who is in there? It is the lobbyists,..the land use lawyers…the construction union representatives..the department directors..and other politicians. You know who is not in that room. You.Prop B changes that dynamic and puts you in the room that matters. No more ‘advisory committees’ that get  indulged and brushed off. No more ‘community outreach’ that is ignored. It will all matter.”

Yes, yes, yes, a thousand times yes, on B and stopping the Manhattanization of the waterfront. b3

Agnos remarks to San Francisco Tomorrow 

I am delighted to speak to the members and friends of SFT about the waterfront tonight…and a special shout out to Jane Morrison as one of the pioneer professional  women in the media… and one of the  finest Social Service Commissioners in our City’s history. I also welcome the opportunity to join you in honoring tonight’s unsung heroes…Becky Evans with whom I have worked closely over the past year and half …Tim Redmond  the conscience of the progressive community for the past 35 years…Sarah Short and Tommi Avicolli Mecca from the Housing Rights Committee who stand up every day for poor and working people who need a voice in our city.

Twenty-four years ago in 1990, I made one of the best decisions of my mayoralty when I listened to the progressive environmental voice of San Francisco and ordered the demolition of the Embarcadero Freeway. That freeway was not only a hideous blight but also a wall that separated the city from its waterfront. Hard to believe today…but it was a very controversial decision back then… just 3 years before…in 1987 the voters had defeated a proposal by Mayor Feinstein to demolish it. The Loma Prieta Earthquake gave us a chance to reconsider that idea in 1990. Despite opposition of 22,000 signatures on a petition to retrofit the damaged freeway… combined with intense lobbying from the downtown business community led by the Chamber of Commerce, North Beach, Fisherman’s Wharf and especially Chinatown…we convinced the Board of Supervisors to adopt our plan to demolish the freeway… by one vote.

And the rest is history…until today. 

After a period of superb improvements that include a restored Ferry Building…the Ball park… new public piers where one can walk further out into the bay than ever before in the history of this city… the 
Exploratorium…the soon to be opened Jim Herman Cruise Ship terminal…Brannan Wharf Park…there is a new threat. Private development plans that threaten to change the environment of what Herb Caen first called “our newest precious place” …not with an ugly concrete freeway wall…but with steel and glass hi-rises that are twice as tall.

Today…the availability of huge amounts of developer financing …combined with unprecedented influence in city hall and the oversight bodies of this city…the Waterfront has become the new gold coast of San Francisco. Politically connected developers seek to exploit magnificent public space with hi-rise, high profit developments that shut out the ordinary San Franciscan from our newest precious place. We love this city because it is a place where all of us have a claim to the best of it…no matter what our income…no matter that we are renter or homeowner…no matter what part of the city we come from.

And connected to that is the belief that waterfront public land is for all of us…not just those with the biggest bank account or most political influence. 

That was driven home in a recent call I had from a San Franciscan who complained about the high cost of housing for home ownership or rent…the high cost of Muni…museum admissions…even Golden Gate Bridge tours and on and on. When he finished with his list, I reminded him I was mayor 23 years ago and that there had been 4 mayors since me,  so why was he complaining to me?
“Because you are the only one I can reach!” he said.

Over the past few weeks…that message has stuck with me.  And I finally realized why. This is what many people in our city have been seeking… someone who will listen and understand. Someone who will listen…understands… and acts to protect our newest precious place…our restored waterfront. You see…it was not just about luxury high-rise condos at 8 Washington last year…It was not just a monstrous 
basketball arena on pier 30-32 with luxury high-rise condos and a hotel across the street on public land. It’s about the whole waterfront that belongs to the people of San Francisco…all 7 and half miles of it… from the Hyde Street Piers to India Basin. And it must be protected from the land use mistakes that can become irrevocable. 

This is not new to our time…8 Washington and the Warriors arena were not the first horrendous proposals…they were only the latest. Huge… out of scale… enormously profitable projects… fueled by exuberant boosterism from the Chamber of Commerce… have always surfaced on our waterfront. 50 years ago…my mentor in politics…then Supervisor Leo McCarthy said, “We must prevent a wall of high rise apartments along the waterfront…and we must stop the filling in of the SF bay as a part of a program to retain the things that have made this city attractive.” That was 1964…

In 2014…Former Board of Supervisors President Aaron Peskin said it best this way…”It seems like every 10 years…every generation has to stand up to some huge development that promises untold riches
  as it seeks to exploit the waterfront and our public access to it.” Public awareness first started with the construction of the 18 stories of Fontana towers east and west in 1963. That motivated then Assemblyman Casper Weinberger to lead public opposition and demand the first height limits… as well as put a stop to 5 more Fontana style buildings on the next block at Ghirardelli Square. This was the same Casper Weinberger who went on to become Secretary of HEW and Secretary of Defense under President Ronald Reagan.

In 1970 the Port Commission proposed to rip out the then “rotting piers” of piers 1 – 7 just north of the Ferry Building. They were to be replaced with 40 acres of fill (3 X Union Square) upon which a 1200-room hotel and a 2400 car garage would be built. It passed easily through Planning and the Board of Supervisors. When the proposal was rejected on 22 to 1 vote by BCDC, Mayor Alioto complained, “We just embalmed the rotting piers.” No… we didn’t …we saved them for the right project…and if one goes there today… they see it…the largest surviving renovated piers complex with restaurants, walk in cafes, port offices, free public docking space, water taxis and complete public access front and back. 

In 2002… that entire project was placed on the U.S. National Historic Register. But my favorite outrageous proposal from that time was the plan to demolish another set of “rotting piers” from the Ferry Building south to the Bay Bridge. And in place of those rotting piers… the plans called for more landfill to create a Ford dealership car lot with 5000 cars as well as a new Shopping center. That too…was stopped.

So now it’s our turn to make sure that we stop these all too frequent threats to the access and viability of our waterfront.

In the past 2 weeks…we have seen momentum grow to support locating the George Lucas Museum on piers 30-32 or the sea wall across the Embarcadero.I love the idea…but where would we be with that one be if a small band of waterfront neighbors and the Sierra Club had not had the courage to stand up to the Warriors and City Hall 2 years ago. Once again they used the all too familiar refrain of “rotting piers” as an impending catastrophe at piers 30-32.

Proposition B will help prevent mistakes before they happen. Most of all… Prop B will ensure protection of the port on more permanent basis by requiring a public vote on any increases to current height limits on Port property.All of the current planning approval processes will stay in place…Port Commission…Planning commission…Board of Permit Appeals…Board of Supervisors…will continue to do what they have always done. But if a waiver of current height limits along the waterfront is granted by any of those political bodies…it must be affirmed by a vote of the people. Prop B does not say Yes or No…it says Choice. It is that simple. The people of SF will make the final choice on height limit increases on port property. 

The idea of putting voters in charge of final approval is not new. In the past the people of San Francisco have voted for initiatives to approve a Children’s budget…a Library budget…retaining neighborhood fire stations… minimum police staffing… as well as require public authorization for new runway bay fill at our airport. And at the port itself… there have been approximately 18 ballot measures to make land use and policy decisions.

So…we are not talking about ballot box planning…we are talking about ballot box approval for waivers of existing height limits on public property. Opponents like Building Trades Council, Board of Realtors, 
and Chamber of Commerce are raising alarms that we will lose environment protections like CEQA by creating loopholes for developers. 
Astonishing! 

Prop B is sponsored by the Sierra Club…Tonight we honor Becky Evans of the Sierra Club who sponsored Proposition B. That same set of opponents are joined by city bureaucrats issuing “doomsday” reports stating that we will lose thousands of units of middle class housing… billions of dollars in port revenues…elimination of parks and open space on the waterfront. Astonishing!

These are the same bureaucrats who issued glowing reports a couple of years ago that the America’s Cup would mean billions in revenue for the port and the city. And they wanted to give Oracle’s Larry Ellison 66-year leases to develop on 5 of our port piers for that benefit! Now…how did THAT work out? So far…city hall will admit to $11 million dollars in known losses for the taxpayers.

Another opponent… SPUR says any kind of housing will make a difference and there are thousands in the pipe line… so don’t worry.
Astonishing!

We have not seen one stick of low income or affordable housing proposed on the waterfront since the 80s and 90s when Mayor Feinstein and I used waterfront land for that very purpose. Hundreds of low-income housing dwellings like Delancey Street and Steamboat Point Apartments…affordable and middle class housing like South Beach Marina apartments and Bayside village comprise an oasis of diversity and affordable housing in the midst of ultra expensive condos. For me…that was part of an inaugural promise made in January 1988…I said, “At the heart of our vision is a refusal to let San Francisco become an expensive enclave that locks out the middle class, working families and the poor. At the center of our strategy is a belief in the basic right of people to decent jobs and housing. 

Yes…that was the commitment on public land on the waterfront by 2 mayors of a recent era… but not today. Indeed…San Francisco has been rated the #1 least affordable city in America…including NY Manhattan. That is one of the many reasons we see middle class  people…as well as working poor…being forced to leave San Francisco for Oakland and elsewhere in the bay area. That reality was reinforced in the February 10, 2014 issue of Time Magazine…Mayor Lee said, “I don’t think we paid any attention to the middle class. I think everybody assumed the middle class was moving out.”

Today…An individual or family earning up to $120,000 per year …150 per cent of the median in this city… do not qualify for a mortgage and can’t afford the rent in one of the thousands of new housing units opening in the city. The Chronicle reported a couple of weeks ago that a working family of  3 who have lived in a rent-controlled studio apartment in the Mission is offered $50 K to leave. That is what the purely developer driven housing market offers. And that philosophy is reinforced by a planning commission whose chair was quoted in December 2013 issue of SF Magazine saying, “Mansions are as just as important as housing.”

Prop B changes that dynamic by putting the Citizen in the room with the “pay to play” power brokers. That is what it is all about my friends. Power.

Former SF city planning director and UC School of City Planning Professor…Alan Jacobs recently related what he called the Jacobs Truism of land economics: “Where political discretion is involved in land use decisions…the side that wins is the side with the most power. And that side is the side with the most money.” Prop B will ensure that if developers are going to spend a lot of money to get a height waiver on port property …the best place to spend it will be to involve, inform, and engage the citizen as to the merit of their request…not on the politicians.

Today that power to decide is in a room in City Hall. I know that room…I have been in that room. You know who is there? It is the lobbyists…the land use lawyers…the construction union representatives…the departmental directors… and other politicians. You know who is not in the room? YOU. The hope is that someone in that room remembers you. But if you really want your voice to be heard…you have to go to some departmental hearing or the Board of Supervisors…wait for 3 or 4 hours for your turn… and then get 2 minutes to make your case. Prop B changes that dynamic and puts you in the room that matters. No more “advisory committees” that get indulged and brushed off. No more “community outreach” that is ignored. 

It will all matter. That is why today there is no opposition from any waterfront developer…They get it. We are going to win. It is easy to see how the prospect of Prop B on the ballot this June has changed the dynamics of high-rise development along the waterfront. The Warriors have left and purchased a better location on private land in Mission Bay. The Giants have publicly announced that they will revise their plans with an eye to more appropriate height limits on port land. Forest City is moving with a ballot proposal to use Pier 70 to build new buildings of 9 stories…the same height as one of current historic buildings they will preserve on that site for artists.

The Pier 70 project will include 30 percent low-income…affordable and middle class housing on site… along with low-tech industries, office space and a water front promenade that stretches along the entire shoreline boundary. A good project that offers what the city needs will win an increase in height limits because it works for everybody. A bad one will not. My friends…I have completed my elected public service career. There will be no more elections for me.

And as I review my 40 years in public life…I am convinced of one fundamental truth. The power of the people should… and must… determine what kind of a city this will be. It must not be left to a high tech billionaire political network that wants to control city hall to fulfill their vision of who can live here and where. It starts with you… the people of this city’s neighborhoods… empowered to participate in the decisions that affect our future. You are the ones who must be vigilant and keep faith with values that make this city great. This city is stronger when we open our arms to all who want to be a part of it…to live and work in it…to be who they want to be…with whomever they want to be it with. Our dreams for this city are more powerful when they can be shared by all of us in our time…

We are the ones …here and now… who can create the climate to advance the San Francisco dream to the next generation. And the next opportunity to do that will be election day 
June 3. Thank you.

B3 note: The full Athenian oath: “We will never bring disgrace on this our City by an act of dishonesty or cowardice. We will fight for the ideals and Sacred Things of the City both alone and with many. We will revere and obey the City’s laws and will do our best to incite a like reverence and respect in those above us who are prone to annul them or set them at naught. We will strive unceasingly to quicken the public’s sense of civic duty. Thus, in all ways, we will transmit this City not only, not less, but greater and more beautiful than it was transmitted back to us.”  The National League of Cities publishes the oath and says it “was recited by the citizens of Athens, Greece, over 2,000 years ago. It is frequently referenced by civic leaders in modern times as a timeless code of civic responsibility.” 

(The Bruce blog is written and edited by Bruce B. Brugmann, editor at large of the San Francisco Bay Guardian. He is the former editor and co-founder and co-publisher of the Guardian with his wife Jean Dibble, 1966-2012. He can be reached at Bruoe@sfbg.com) 

 

 

 

Agnos offers waterfront development history lesson during SFT speech

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[Editor’s Note: This is the text of a speech that former Mayor Art Agnos gave at San Francisco Tomorrow’s annual dinner on May 21. We reprint it here in its entirely so readers can hear directly what Agnos has been saying on the campaign trail in support of Prop. B]

I am delighted to speak to the members and friends of SFT about the waterfront tonight…and a special shout out to Jane Morrison as one of the pioneer professional women in the media and one of the finest Social Service Commissioners in our City’s history.

I also welcome the opportunity to join you in honoring tonight’s unsung heroes: Becky Evans, with whom I have worked closely over the past year and half; Tim Redmond, the conscience of the progressive community for the past 35 years; and Sara Shortt and Tommi Avicolli Mecca from the Housing Rights Committee, who stand up every day for poor and working people who need a voice in our city.

Twenty-four years ago, in 1990, I made one of the best decisions of my mayoralty when I listened to the progressive environmental voice of San Francisco and ordered the demolition of the Embarcadero Freeway. That freeway was not only a hideous blight but also a wall that separated the city from its waterfront.

Hard to believe today, but it was a very controversial decision back then. Just three years before, in 1987, the voters had defeated a proposal by Mayor Feinstein to demolish it. The Loma Prieta Earthquake gave us a chance to reconsider that idea in 1990.

Despite opposition of 22,000 signatures on a petition to retrofit the damaged freeway, combined with intense lobbying from the downtown business community led by the Chamber of Commerce, North Beach, Fisherman’s Wharf, and especially Chinatown, we convinced the Board of Supervisors to adopt our plan to demolish the freeway, by one vote.

And the rest is history — until today.

After a period of superb improvements — that include a restored Ferry Building, the ball park, two new public piers where one can walk further out into the bay than ever before in the history of this city, the Exploratorium, the soon to be opened Jim Herman Cruise Ship Terminal, Brannan Wharf Park — there is a new threat.

Private development plans that threaten to change the environment of what Herb Caen first called “our newest precious place,” not with an ugly concrete freeway wall, but with steel and glass high-rises that are twice as tall. Today, the availability of huge amounts of developer financing, combined with unprecedented influence in City Hall and the oversight bodies of this city, the waterfront has become the new gold coast of San Francisco.

Politically connected developers seek to exploit magnificent public space with high-rise, high profit developments that shut out the ordinary San Franciscan from our newest precious place. We love this city because it is a place where all of us have a claim to the best of it, no matter what our income, no matter that we are renter or homeowner, no matter what part of the city we come from.

And connected to that is the belief that waterfront public land is for all of us, not just those with the biggest bank account or most political influence. That was driven home in a recent call I had from a San Franciscan who complained about the high cost of housing for home ownership or rent, the high cost of Muni, museum admissions, even Golden Gate Bridge tours, and on and on.

When he finished with his list, I reminded him I was mayor 23 years ago and that there had been four mayors since me, so why was he complaining to me? “Because you are the only one I can reach!” he said.

Over the past few weeks, that message has stuck with me. And I finally realized why. This is what many people in our city have been seeking, someone who will listen and understand. Someone who will listen, understands, and acts to protect our newest precious place, our restored waterfront.

You see, it was not just about luxury high-rise condos at 8 Washington last year. It was not just a monstrous basketball arena on Pier 30-32 with luxury high-rise condos and a hotel across the street on public land. It’s about the whole waterfront that belongs to the people of San Francisco, all seven and a half miles of it, from the Hyde Street Piers to India Basin. And it must be protected from the land use mistakes that can become irrevocable.

This is not new to our time: 8 Washington and the Warriors arena were not the first horrendous proposals, they were only the latest. Huge, out of scale, enormously profitable projects, fueled by exuberant boosterism from the Chamber of Commerce, have always surfaced on our waterfront.

Fifty years ago, my mentor in politics, then-Supervisor Leo McCarthy said, “We must prevent a wall of high rise apartment along the waterfront, and we must stop the filling in of the SF bay as a part of a program to retain the things that have made this city attractive.”

That was 1964. In 2014, former Board of Supervisors President Aaron Peskin said it best this way: “It seems like every 10 years, every generation has to stand up to some huge development that promises untold riches as it seeks to exploit the waterfront and our public access to it.”

Public awareness first started with the construction of the 18 stories of Fontana towers east and west in 1963. That motivated then-Assemblyman Casper Weinberger to lead public opposition and demand the first height limits, as well as put a stop to five more Fontana-style buildings on the next block at Ghirardelli Square. This was the same Casper Weinberger who went on to become Secretary of HEW [formerly the Department of Health, Education, and Welfare] and Secretary of Defense under President Ronald Reagan.

In 1970, the Port Commission proposed to rip out the then “rotting piers” of Piers 1 – 7 just north of the Ferry Building. They were to be replaced with 40 acres of fill (three times the size of Union Square) upon which a 1200-room hotel and a 2400 car garage would be built.

It passed easily through Planning and the Board of Supervisors. When the proposal was rejected on 22 to 1 vote by BCDC [the San Francisco Bay Conservation and Development Commission], Mayor Alioto complained, “We just embalmed the rotting piers.”

No, we didn’t, we saved them for the right project. And if one goes there today, they see it, the largest surviving renovated piers complex with restaurants, walk-in cafes, Port offices, free public docking space, water taxis, and complete public access front and back. In 2002, that entire project was placed on the U.S. National Historic Register.

But my favorite outrageous proposal from that time was plan to demolish another set of “rotting piers” from the Ferry Building south to the Bay Bridge. And in place of those rotting piers, the plans called for more landfill to create a Ford dealership car lot with ,5000 cars as well as a new shopping center. That too was stopped.

So now it’s our turn to make sure that we stop these all too frequent threats to the access and viability of our waterfront. In the past two weeks, we have seen momentum grow to support locating the George Lucas Museum on Piers 30-32 or the sea wall across the Embarcadero.

I love the idea, but where would we be with that one if a small band of waterfront neighbors and the Sierra Club had not had the courage to stand up to the Warriors and City Hall two years ago. Once again, they used the all too familiar refrain of “rotting piers” as an impending catastrophe at Piers 30-32.

Proposition B will help prevent mistakes before they happen. Most of all, Prop. B will ensure protection of the Port on a more permanent basis by requiring a public vote on any increases to current height limits on Port property. All of the current planning approval processes will stay in place — Port Commission, Planning Commission, Board of Permit Appeals, Board of Supervisors, all will continue to do what they have always done.

But if a waiver of current height limits along the waterfront is granted by any of those political bodies, it must be affirmed by a vote of the people. Prop B does not say Yes or No, it says Choice. It is that simple. The people of SF will make the final choice on height limit increases on Port property.

The idea of putting voters in charge of final approval is not new. In the past, the people of San Francisco have voted for initiatives to approve a Children’s budget, a Library budget, retaining neighborhood fire stations, minimum police staffing, as well as to require public authorization for new runway bay fill at our airport. And at the Port itself, there have been approximately 18 ballot measures to make land use and policy decisions.

So we are not talking about ballot box planning, we are talking about ballot box approval for waivers of existing height limits on public property. Opponents like Building Trades Council, Board of Realtors, and Chamber of Commerce are raising alarms that we will lose environment protections like CEQA by creating loopholes for developers. Astonishing!

Prop B is sponsored by the Sierra Club. Tonight we honor Becky Evans of the Sierra Club who sponsored Proposition B. That same set of opponents are joined by city bureaucrats issuing “doomsday” reports stating that we will lose thousands of units of middle class housing, billions of dollars in Port revenues, elimination of parks and open space on the waterfront. Astonishing!

These are the same bureaucrats who issued glowing reports a couple of years ago that the America’s Cup would mean billions in revenue for the Port and the city. And they wanted to give Oracle’s Larry Ellison 66-year leases to develop on five of our Port piers for that benefit! Now, how did THAT work out? So far, City Hall will admit to $11 million in known losses for the taxpayers. Another opponent, SPUR [San Francisco Planning and Urban Research Association], says any kind of housing will make a difference and there are thousands in the pipeline, so don’t worry. Astonishing!

We have not seen one stick of low income or affordable housing proposed on the waterfront since the ‘80s and ‘90s when Mayor Feinstein and I used waterfront land for that very purpose. Hundreds of low-income housing dwellings like Delancey Street and Steamboat Point Apartments, affordable and middle class housing like South Beach Marina apartments and Bayside village, comprise an oasis of diversity and affordable housing in the midst of ultra expensive condos.

For me, that was part of an inaugural promise made in January 1988. I said, “At the heart of our vision is a refusal to let San Francisco become an expensive enclave that locks out the middle class, working families, and the poor. At the center of our strategy is a belief in the basic right of people to decent jobs and housing.”

Yes, that was the commitment on public land on the waterfront by two mayors of a recent era, but not today. Indeed, San Francisco has been rated the #1 least affordable city in America, including NY Manhattan. That is one of the many reasons we see middle class people, as well as working poor, being forced to leave San Francisco for Oakland and elsewhere in the Bay Area.

That reality was reinforced in the February 10, 2014 issue of Time Magazine. Mayor Lee said, “I don’t think we paid any attention to the middle class. I think everybody assumed the middle class was moving out.”

Today, an individual or family earning up to $120,000 per year — 150 percent of the median in this city — does not qualify for mortgage and can’t afford the rent in one of the thousands of new housing units opening in the city. The Chronicle reported a couple of weeks ago that a working family of three who have lived in a rent-controlled studio apartment in the Mission was offered $50,000 to leave.

That is what the purely developer-driven housing market offers. And that philosophy is reinforced by a Planning Commission whose chair was quoted in December 2013 issue of SF Magazine saying, “Mansions are just as important as housing.”

Prop B changes that dynamic by putting the citizen in the room with the “pay to play” power brokers. That is what it is all about my friends: Power.

Former SF city planning director and UC School of City Planning Professor Alan Jacobs recently related what he called the Jacobs Truism of land economics: “Where political discretion is involved in land use decisions, the side that wins is the side with the most power. And that side is the side with the most money.”

Prop B will ensure that if developers are going to spend a lot of money to get a height waiver on Port property, the best place to spend it will be to involve, inform, and engage the citizen as to the merit of their request, not on the politicians. Today that power to decide is in a room in City Hall. I know that room. I have been in that room.

You know who is there? It is the lobbyists, the land use lawyers, the construction union representatives, the departmental directors, and other politicians. You know who is not in the room? You. The hope is that someone in that room remembers you.

But if you really want your voice to be heard, you have to go to some departmental hearing or the Board of Supervisors, wait for three or four hours for your turn, and then get two minutes to make your case. Prop B changes that dynamic and puts you in the room that matters. No more “advisory committees” that get indulged and brushed off. No more “community outreach” that is ignored.

It will all matter. That is why today there is no opposition from any waterfront developer. They get it. We are going to win. It is easy to see how the prospect of Prop B on the ballot this June has changed the dynamics of high-rise development along the waterfront.

The Warriors have left and purchased a better location on private land in Mission Bay. The Giants have publicly announced that they will revise their plans with an eye to more appropriate height limits on Port land. Forest City is moving with a ballot proposal to use Pier 70 to build new buildings of nine stories, the same height as one of current historic buildings they will preserve on that site for artists.

The Pier 70 project will include 30 percent low-income, affordable and middle class housing on site, along with low-tech industries, office space, and a waterfront promenade that stretches along the entire shoreline boundary. A good project that offers what the city needs will win an increase in height limits because it works for everybody. A bad one will not.

My friends, I have completed my elected public service career. There will be no more elections for me. And as I review my 40 years in public life, I am convinced of one fundamental truth: The power of the people should, and must, determine what kind of a city this will be.

It must not be left to a high-tech billionaire political network that wants to control City Hall to fulfill their vision of who can live here and where. It starts with you, the people of this city’s neighborhoods, empowered to participate in the decisions that affect our future. You are the ones who must be vigilant and keep faith with values that make this city great.

This city is stronger when we open our arms to all who want to be a part of it, to live and work in it, to be who they want to be, with whomever they want to be it with. Our dreams for this city are more powerful when they can be shared by all of us in our time.

WE are the ones, here and now, who can create the climate to advance the San Francisco dream to the next generation. And the next opportunity to do that will be election day June 3.

Thank you.

 

Bill would tax companies with wide CEO-worker pay disparities

60

California companies pouring big cash on their CEOs may be forced to tighten the spigot under a new bill that seeks to limit CEOs paid excessively at the expense of their workers.

Senate Bill 1372, authored by state Sens. Mark DeSaulnier (D-Concord) and Loni Hancock (D-Oakland), would increase taxes on companies with wide disparities between CEO and worker pay, and give a tax break to companies with a low ratio between CEO and worker pay.

“History has taught us that the gross disparity between CEO and worker pay is a direct threat to American democracy,” DeSaulnier said in a press statement. “It is unsustainable and a danger to our society. We must focus on restoring the middle class and stop fueling excessive income inequality.”

The pay-disparity bill cleared the Senate and Governance Finance Committee last Friday, and is headed to the Senate Appropriations Committee.

Local tech companies have much reason to fear the bill. Larry Ellison, CEO of the Redwood City-based Oracle, was paid 1,287 times the median salary of an Oracle employee in 2012, according to a Bloomberg study. Ellison pulled in $96.2 million in 2012, and the median employee working for his company brought in $74,693.

That’s less pay gap, more pay canyon. Former Secretary of Labor Robert Reich, a professor at UC Berkeley and a supporter of the pay-disparity bill, connected CEO pay with our troubled economy.

“This growing divergence between CEO pay and that of the typical American worker isn’t just wildly unfair. It’s also bad for the economy,” Reich wrote on his website last week. “It means most workers these days lack the purchasing power to buy what the economy is capable of producing — contributing to the slowest recovery on record. Meanwhile, CEOs and other top executives use their fortunes to fuel speculative booms followed by busts.”

The pay-disparity bill would lower taxes on companies with CEOs making less than 100 times more than its median employee. The tax rate for the company would be metered on a scale of CEO-to-worker pay ratio, with the highest penalties for companies paying their CEOs more than 400 times their median employee pay.

The bill also targets non-salaried independent contractors, a significant portion of the state’s workers.

Many local companies have wide pay gaps between CEOs and workers. In 2012, Apple had a CEO:worker pay ratio of 192:1, Wells Fargo had a ratio of 186:1, and Intel squeaked by with a ratio of 99:1, according to PayScale.com.

The PayScale.com study only looked at non-stock compensation. CEOs are often paid in stock and other bonuses, a significant part of their earnings. In lieu of this, recently many CEOs jumped on the $1 salary bandwagon, including Google CEO Larry Page. Ellison took home a single dollar for his salary in 2013, according to CNN Money.

This seemingly forward-thinking gesture is a good PR move, but in reality CEOs still take home millions of dollars in stocks, options, and bonuses. Page owned more than 24 million shares in Google as of 2013, for instance. Ellison took in $92.2 million in stocks, options, and other pay in 2013.

Luckily, that’s a loophole that DeSaulnier and Hancock considered when crafting the bill.

The bill would calculate executive compensation based on the Summary Compensation Table the company in question reports to the Securities and Exchange Commission. That includes salary, bonus, grants of stock options and stock appreciation rights, long-term incentive plan awards, pension plans, and employment contracts and related arrangements.

In 2012, the average CEO pay in California was $5,054,959, according to a statement from DeSaulnier, while the median worker pay in California was $48,029.

Below is a series of graphs detailing local Bay Area CEO and worker pay disparities, as of 2012.

After an exciting America’s Cup finish, San Francisco tallies its score

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When Oracle Team USA completed a stunning comeback yesterday to retain the America’s Cup, winning eight consecutive races, it was indeed a big sporting moment. It even had us skeptics at the Bay Guardian, who had already expressed sympathies for the Kiwi team, anxiously following the action. But the question remains whether this overhyped sailing competition will be a win for the host city of San Francisco.

That verdict won’t come in until November when race organizers and city officials finish collecting and counting revenues and expenditures related to the regatta. But it’s certain to be better from a fiscal perspective than it looked like a week ago, when the New Zealand team seemed to be headed for a blowout victory.   

For Larry Ellison — Oracle co-founder, team owner, lead champion for the AC-72 cause and de facto face of the 34th America’s Cup — it must have felt like a disaster. His $100-plus million nautical investment was tanking, attendance and revenue figures were falling far short of expectations and the support he had from the local sailing community was quickly turning malignant after Oracle lost the day’s only race, falling to 1-8 and facing seven consecutive match-points. 

But then Oracle started winning. They figured out the tricky upwind legs that had plagued them for the first two weeks of racing. They replaced their fired tactician with four-time Olympic gold medal winner Ben Ainslie. They started beating the snot out of Team New Zealand and in the races they were losing, Mother Nature would toss them lifesavers disguised as strange patches of wind. 

After weeks of fumbling, it looked like the moles had found their own mallet and were whacking away at their tormentors, and they were doing so to the tune of an unprecedented winning streak. And with it, the America’s Cup image underwent a radical transformation; both in sport and in reception. 

The change in sport is simple — both teams have figured out how to race the 13-story tall sailboats through the unpredictable weather patterns and intense ebb tides —but the change in reception is anything but. As of last Wednesday, Pier 27 was dominated by Team New Zealand supporters. Nearly everyone in attendance was waving a New Zealand flag or wearing one, and the few Oracle fans left seemed to be nothing more than lost tourists who stumbled upon the international event.

But support for Oracle steadily grew during their winning streak — Americans do love a winner — and now it looks like support for the event has been as well, something that can be attributed both to Oracle’s winning streak and the necessity for Kiwi fans to finally go home after over a month of competition.

As four-time Cup attendee Sonny Shaw told the Guardian, “I  had to change my flight and pay a lot of money, about 400 US dollars at this stage, to stay till [Tuesday]. I was hoping it would be finished by Monday.” 

As it was every single Kiwi in the park. But the numbers are representative of this trend: As of Sept. 18, according to Cup organizers, the gates had drawn just 700,000 of the 2 million anticipated attendees. Ellison and his team had raised $16.5 million of the $20 million needed to offset the city’s costs (with a reported $14 million going toward the reimbursement), and broadcasts were drawing about 1 million viewers domestically, which meant that the Cup was failing to deliver on virtually all of its promises.  

But the extra race days have drummed up interest both in the competition and in the precariously perched Oracle Team USA. The crowds — by the end ostensibly split between Emirates and Oracle as each passing day thins out the Kiwi crowds — became far larger, more raucous and more star-spangled. 

The decks were packed, the cheers are both loud and informed, and the local venom present for the first week-and-a-half of racing is at a minimum. 

Even expectations might be met. The overall goal of 2 million attendees still seems downright impossible, but as of Monday evening, 926,000 official attendees had been counted, not including those who watched the race outside of officially designated areas (up 226,000 in less than a week, according to Cup officials). In addition to the attendance spike, the 6,500 jobs that were created for the event are still paying out and the extra time only increases the likelihood that the full $20 million bill the City was expected to foot will be offset by private funds.

It was a helluva ride, San Francisco. Was it worth it? We’ll see.

From America’s Flop to America’s Blowout — and we couldn’t be happier

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New Zealand’s sailing team could win the America’s Cup this weekend after taking a 6-0 lead over the American team sponsored by Oracle and its billionaire CEO Larry Ellison, who made this elite sailing race even more prohibitively expensive than usual. And we at the Guardian couldn’t be happier for the Kiwis. Go New Zealand!

For years, we’ve been covering this sad spectacle, from the overhyped initial attendance and economic projections to the waterfront land grab and real estate swindle that Ellison and company tried to perpetrate on San Francisco to sticking city taxpayers with a big bill that Ellison should have footed himself to the episodes of cheating that caused international judges to dock Ellison’s team two points in the final (one of which is still yet to be assessed).

So we feel vindicated by this great act of karmic justice, to watch Ellison’s team not just losing badly, but being utterly blown out of the water by the straight-shooting team from Down Under, whose skipper has pledged to scale back future America’s Cups to make them cheaper and more accessible.

Frankly, watching the America’s Cup has been far less exciting than the speedy “NASCAR on water” that it was hyped as by organizers. This “sport” makes baseball seem riveting and fast-paced. But we’re thrilled to watch the grand finale, if only for the snicker.  

 

America’s Cup organizers sell small-scale naming rights at Pier 27 to pay their debt to the city

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The Port Commission has approved a proposal by the America’s Cup Organizing Committee (ACOC) to sell bricks, benches, and other assets at Pier 27 to offset budget shortfalls, but community activists fear that corporate naming rights are undermining plans for a public recreation space.

A presentation at the Tuesday meeting by Kyri McClellan, the former city staffer who now serves as CEO of the ACOC, and Mike Martin of the Office of Economic and Workforce Development outlined the sale of up to 1,000 bricks to be set in pathways and 72 benches to dot the Northeast Wharf Plaza, which will bear the names of donors. Benches will be priced at $25,000, which McClellan cited as the going rate at other high-profile locations throughout the city.

McClellan emphasized that “none of what we’re proposing today as a pilot program includes what may previously have been alluded to as naming rights for this particular park, the piers, or the buildings.”

Milo Hanke and Alex Walker of San Francisco Beautiful, a local advocacy organization, didn’t have a problem with the smaller scale elements of the ACOC proposal. “The tiles and the bricks that are being offered here for $150, $300, for instance,” Hanke told the crowd, “that’s a gratifying opportunity for ordinary citizens who have already invested in our port to volunteer to express additional support for this proud port.”

But Hanke and Walker expressed concern about bigger ticket items that McClellan addressed with less specificity. “We want to make sure that this is a thing that’s going to be place-making and not place-taking,” commented Walker.

In addition to bricks and benches, the wharf’s lawn and adjacent walkway, an open plaza area, and a point at the pier’s end are earmarked for recognition of donors. So too are an event space and an exterior concourse on the second floor of the James R. Herman Passenger Cruise Terminal, slated to open at Pier 27 next spring.

“Corporate naming rights,” explained Hanke, “come with an intangible cost and I think that, given San Franciscans’ historic aversion to excess commercialization of our public realm, corporate naming rights are well worth taking a bypass on.”

Diagrams presented by ACOC did not include detailed renderings of larger donor fulfillments or clarification as to whether recognition would be restricted to individual and foundational donors and off limits to more commercial interests. “There is concern,” said Hanke, “of a creeping naming rights program if large areas are named for corporations.”

Pulling in $500,000 to $2.5 million a piece, however, bigger structures may be the revenue drivers ACOC is desperately seeking. As part of its host agreement with San Francisco, the organization is obligated to help offset the city’s expenses incurred in event preparations and operations.

Luckily, the race’s outsized budget is expected to be less than the $32 million originally projected, due to the paltry number of teams competing (four at last count) and the resulting decrease in spectatorship. Still, the ACOC needs to come up with as much as $20 million – a debt burden that’s got Mayor Ed Lee personally stumping in the fundraising effort. The fundraising flop belies early promises that the city would make money hosting the event.

San Francisco voters approved Proposition B last November, authorizing the city to apply public funds towards repairs and redevelopment of recreational spaces. The fact that the Northeast Wharf Plaza was a named site in that bond measure isn’t the only reason community activists are demanding to know what assets on its piers are being auctioned off and who’s buying them.

According to Jon Golinger, a spokesman for the Northeast Waterfront Advisory Group, the San Francisco Waterfront Special Area Plan limited development on the Pier 27 plaza until a 2000 amendment lifted port restrictions in exchange for guarantees of public recreation areas.

Since then, “we’ve been paying close attention to this park. It’s particularly needed and a long time coming,” explained Golinger, who said there’s been no citizen review of the ACOC’s donor recognition program proposal.

Neighborhood organizations hope ACOC’s tag sale of infrastructure doesn’t torpedo use plans for land long ago promised as a public recreation area. Golinger would like to see features like a kids’ play area, a dog run, and exercise equipment for seniors included in the final design – whether or not they are lucrative to race organizers now.

“After the Cup is done in October, it should look, feel, and be used like a true public park,” Golinger said of the plaza. “This corner of town is the most densely packed part of San Francisco with the fewest recreation areas per capita…. [the plaza] should be part of the neighborhood as opposed to a corporate event venue.”

The promise of infrastructure improvements was one reason the city of San Francisco agreed to host the America’s Cup race in the first place. Residents are now left to hope that ACOC won’t forgo investments of lasting civic value for single-use vanity projects intended to float its budget deficit.

Concluding the discussion of the ACOC’s proposal on Tuesday, Port Commissioner Leslie Katz offered assurances that, “we’ll definitely oversee and be mindful of the aesthetics of anything going forward… This is not a selling off of the port, but really an opportunity to thank and acknowledge those that have allowed us to move forward.”

This opportunity, of course, assumes that donors actually surface. Mayoral spokesperson Christine Falvey said, “We will learn from [this] effort about how we can raise private dollars to improve our waterfront and engage city residents in the effort.”

If ACOC’s efforts to court private dollars from city residents aren’t fruitful, however, taxpayers-turned-debt-collectors may have no option but to sign former District 3 Supervisor Aaron Peskin’s online petition and to demand that America’s Cup billionaire defending champion Larry Ellison pick up the tab for his boat race all by himself.

On the Cheap: July 31 – August 7, 2013

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On the Cheap listings are compiled by Guardian staff. Submit items for the listings at listings@sfbg.com. For further information on how to submit items for the listings, see Selector.

WEDNESDAY 31

Michael Hearst Booksmith, 1644 Haight, SF; www.booksmith.com. 7:30pm, free. The musician and author presents “Unusual Creatures,” describes as a “nerdy, family-friendly sort of Ted talk” about some of the planet’s most bizarre animals.

Andrea Carla Michaels and Bernadette Luckett Book Passage, One Ferry Building, SF; www.bookpassage.com. 6pm, free. The contributors read from a new anthology of women comedy writers, No Kidding: Women Writers on Bypassing Parenthood.

THURSDAY 1

Asian Art Museum $5 admission Asian Art Museum, 200 Larkin, SF; www.asianart.org. 5-9pm, $5. The Asian Art Museum stays open late every Thursday, and visitors who arrive after 5pm pay just $5 (regular adult admission is $12). Current exhibits include “In the Moment: Japanese Art from the Larry Ellison Collection.”

“Downtown Berkeley MusicFest” Downtown Berkeley BART Plaza, Berk; www.downtownberkeleymusicfest.org. 5-7pm, free. The sixth annual fest kicks off with concerts by Andre Thierry and Zydeco Magic, and Talk of da Town.

Larry O. Dean and Hugh Behm-Steinberg Moe’s Books, 2476 Telegraph, Berk; www.moesbooks.com. 7:30pm, free. The Chicago-based Dean and the Berkeley-based Behm-Steinberg read from their latest poetry collections.

FRIDAY 2

“Downtown Berkeley MusicFest” Berkeley Public Library, 2090 Kittredge, Berk; www.downtownberkeleymusicfest.org. 12:15-1pm, free. The sixth annual fest continues with the Steve Gannon Blues Band.

“Oakland Art Murmur: First Friday Gallery Walk” Art project spaces in Jack London, Downtown, and Uptown, Oakl; www.oaklandartmurmur.org. 6-9pm, free. Check the website for an open studios map to the galleries and other art venues staying open late for this monthly event.

SATURDAY 3

Bay Area Peace Lantern Ceremony North end of Aquatic Park (near Interstate 80 and the west end of Addison), Berk; progressiveportal.org/lanterns. 6:30pm, free. Commemorate the bombing of Hiroshima and Nagasaki with the floating of peace lanterns on the park’s lagoon. Arrive at 6:30 to construct lanterns; at 7pm, there will be musical and cultural performances, messages from the mayors of Hiroshima and Nagasaki, and a report from a bombing survivor. Lanterns launch at 8pm.

Fruit Pie Contest Omnivore Books on Food, 3885a Cesar Chavez, SF; www.omnivorebooks.com. 3-4pm, free for entrants ($5 if you’re tasting only). The food-focused bookstore hosts the ultimate pie-making smack down (cobblers, crisps, tarts, crumbles, and buckle-type desserts also allowed). Show up a little before 3pm with your creation cut into as many pieces as you can — because the more people who taste it, the better chance you have of winning. Top vote-getter splits the door money with the shop and gets bragging rights ’till next time. (Non-bakers need pay only $5 to taste all the goodies.)

Vintage Paper Fair Golden Gate Park, Hall of Flowers (County Fair Bldg), Ninth Ave at Lincoln, SF; www.vintagepaperfair.com. 10am-6pm, free. (Also Sun/4, 11am-5pm, free). Antique paper fans, look no further for a vast selection of “postcards, trade cards, stereoviews, photography, labels, brochures” and more to add to your collection. Appraisals are also offered free of charge.

SUNDAY 4

“Beat Generation Instawalk” Meet at Jack Kerouac Alley (near Broadway and Grant), SF; www.thecjm.org. 1-4:30pm, free. In conjunction with its exhibit “Beat Memories: The Photographs of Allen Ginsberg,” the Contemporary Jewish Museum hosts an Instagram-based scavenger hunt through North Beach that ends at the museum — where participants can win Beat-themed prizes and get free museum admission by showing their Instagram photos.

MONDAY 5

Alexander Maksik Booksmith, 1644 Haight, SF; www.booksmith.com. 7:30pm, free. Litquake co-sponsors this reading by the author of A Marker to Measure Drift.

TUESDAY 6

S.G. Browne Booksmith, 1644 Haight, SF; www.booksmith.com. 7:30pm, free. The author reads from Big Egos, a satirical look at identity in the not-too-distant future.

“Neither Friar Nor Conquistador” Emerald Tablet, 80 Fresno, SF; www.emtab.org. 7-9pm, free. An evening dedicated to the history of Monterey’s Spanish immigrant community, featuring a screening of labor activist Michael Muñoz’s short film The Spanish Pruners Strike 1932, as well as a reading from his biography, Change From Within. *

 

Kiwis score points as Oracle regroups

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After a week of one-boat “races,” an argument over rules, and an angry sponsor making waves in international media, it would be easy to write off the America’s Cup as the lamest party in town (so lame, in fact, that the organizers have ceased broadcasting the one-boat shows on YouTube).

But, it was a week of wins for Emirates Team New Zealand, most obviously the solid drubbing they delivered to Luna Rossa on Saturday (7/13) during the first race at which two boats actually showed. A smart “hook” by ETNZ blocked Luna Rossa from the start line and gave the Kiwis a five second advantage that stretched to over five minutes during the seven legs of the race. Unfortunately, that was the peak of the action as the gap between the boats grew so great and Luna Rossa officially earned a “did not finish” result for exceeding the five minutes allowed to cross the finish line after ETNZ. Overall, the match was almost as boring to watch as the single-boat snoozefests of earlier in the week, however it did show off the capabilities of the Kiwi crew, who are clearly mastering foiling while jibing, a key move for maintaining high speeds downwind. Which brings us to the other big win for the New Zealanders this week. On Thursday, the international jury ruled in favor of ETNZ and Luna Rossa, who protested a new rule requiring larger, symmetrical rudder elevators as a matter of safety. The jury decided that allowing the larger rudder elevators — which Oracle have been using on their boat since they relaunched in April after a pitch-pole in October destroyed their wing sail — would violate the AC72 Class Rule that governs the design specifications of the boats.

They said regatta director Iain Murray couldn’t change this rule without buy-in from all the competitors and that voluntary compliance of the other safety rules would appease the Coast Guard, which permitted the event based on the additional safety measures made after Andrew Simpson died. The rudder elevators help stabilize the lightweight boats while foiling, or lifting off the surface of the water to hit speeds of over 40 knots — ETNZ saw 42.3 on the speedometer on Saturday while Luna Rossa maxed out at 39.9 knots. The crew that masters this move and can maintain it over the course of a race will likely come out ahead. ETNZ is doing it now and will likely get better and better at it over the coming weeks as they continue to race the course through the multiple round robins of the Louis Vuitton Cup.

Meanwhile, Oracle will have to return to the drawing board and Ellison’s crew will need to get out on the water and re-learn how to handle their boat with a new rudder that complies with the Class Rule. Oracle has been tight-lipped on the subject, with just a brief statement from general manager Grant Simmer on the jury’s decision. “We continue to support the Regatta Director and we believe all teams have benefited from his review. We don’t have an issue complying with the Class Rule, and we will be ready to race under the rules affirmed by the Jury.” However, they may have an issue playing catch-up to the Kiwis, who have a lot on the line. If they aren’t able to wrest the Auld Mug from Larry Ellison’s hands, it’s likely the New Zealand government won’t chip in for a future campaign — especially if high-tech, billion-dollar boats remain the name of the game. The Kiwis have already chalked up four points and will need to win just one more of the next three bouts with Italy to advance to the Louis Vuitton Cup semifinals, during which the Swedish team, Artemis, should be back on the water. Spectators won’t see Oracle on the course until September 7, when the America’s Cup final matches commence, however there should be plenty of opportunities to observe their practice sessions with a newly rule-compliant boat. To that end, it’s worth noting that situating the race close to land for the first time in the Cup’s history, and with a short course completed in multiple laps, was supposed to draw crowds to the shoreline and the television screen. Now that I’ve seen the boats live and on television, I have to admit that so far it’s still a pretty boring sport to watch. Standing near the start line at Marina Green or the finish line at Piers 27/29 may get you flashes of action and watching it on television is like watching a video game.

The best of both worlds is to park as near as possible to the water and get your hands on a portable marine VHF radio tuned to channel 20, which transmits the official America’s Cup broadcast. Then you can hear details on speed and tactics while actually seeing the most unforgettable part of this race — the boats jibing downwind, hitting freeway speeds while foiling with spray flying and crewmembers bouncing from one hull to the other.

That’s still drawing gasps and cheers from the crowd.

Kiwis win first real America’s Cup race as Oracle adapts to rejected rule change

9

After a week of one-boat “races,” an argument over rules, and an angry sponsor making waves in international media, it would be easy to write off the America’s Cup as the lamest party in town (so lame, in fact, that the organizers have ceased broadcasting the one-boat shows on YouTube).

But, it was a week of wins for Emirates Team New Zealand, most obviously the solid drubbing they delivered to Luna Rossa on Saturday (7/13) during the first race at which two boats actually showed.

A smart “hook” by ETNZ blocked Luna Rossa from the start line and gave the Kiwis a five second advantage that stretched to over five minutes during the seven legs of the race. Unfortunately, that was the peak of the action as the gap between the boats grew so great and Luna Rossa officially earned a “did not finish” result for exceeding the five minutes allowed to cross the finish line after ETNZ. Overall, the match was almost as boring to watch as the single-boat snoozefests of earlier in the week, however it did show off the capabilities of the Kiwi crew, who are clearly mastering foiling while jibing, a key move for maintaining high speeds downwind.

Which brings us to the other big win for the New Zealanders this week. On Thursday, the international jury ruled in favor of ETNZ and Luna Rossa, who protested a new rule requiring larger, symmetrical rudder elevators as a matter of safety. The jury decided that allowing the larger rudder elevators – which Oracle have been using on their boat since they relaunched in April after a pitch-pole in October destroyed their wing sail – would violate the AC72 Class Rule that governs the design specifications of the boats.

They said regatta director Iain Murray couldn’t change this rule without buy-in from all the competitors and that voluntary compliance of the other safety rules would appease the Coast Guard, which permitted the event based on the additional safety measures made after Andrew Simpson died.

The rudder elevators help stabilize the lightweight boats while foiling, or lifting off the surface of the water to hit speeds of over 40 knots – ETNZ saw 42.3 on the speedometer on Saturday while Luna Rossa maxed out at 39.9 knots. The crew that masters this move and can maintain it over the course of a race will likely come out ahead. ETNZ is doing it now and will likely get better and better at it over the coming weeks as they continue to race the course through the multiple round robins of the Louis Vuitton Cup.

Meanwhile, Oracle will have to return to the drawing board and Ellison’s crew will need to get out on the water and re-learn how to handle their boat with a new rudder that complies with the Class Rule.

Oracle has been tight-lipped on the subject, with just a brief statement from general manager Grant Simmer on the jury’s decision. “We continue to support the Regatta Director and we believe all teams have benefited from his review. We don’t have an issue complying with the Class Rule, and we will be ready to race under the rules affirmed by the Jury.”
However, they may have an issue playing catch-up to the Kiwis, who have a lot on the line. If they aren’t able to wrest the Auld Mug from Larry Ellison’s hands, it’s likely the New Zealand government won’t chip in for a future campaign – especially if high-tech, billion-dollar boats remain the name of the game.

The Kiwis have already chalked up four points and will need to win just one more of the next three bouts with Italy to advance to the Louis Vuitton Cup semifinals, during which the Swedish team, Artemis, should be back on the water. Spectators won’t see Oracle on the course until September 7, when the America’s Cup final matches commence, however there should be plenty of opportunities to observe their practice sessions with a newly rule-compliant boat.

To that end, it’s worth noting that situating the race close to land for the first time in the Cup’s history, and with a short course completed in multiple laps, was supposed to draw crowds to the shoreline and the television screen. Now that I’ve seen the boats live and on television, I have to admit that so far it’s still a pretty boring sport to watch. Standing near the start line at Marina Green or the finish line at Piers 27/29 may get you flashes of action and watching it on television is like watching a video game.

The best of both worlds is to park as near as possible to the water and get your hands on a portable marine VHF radio tuned to channel 20, which transmits the official America’s Cup broadcast. Then you can hear details on speed and tactics while actually seeing the most unforgettable part of this race – the boats jibing downwind, hitting freeway speeds while foiling with spray flying and crewmembers bouncing from one hull to the other.

That’s still drawing gasps and cheers from the crowd.

Dailies miss the backstory on the America’s Cup ruling

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Yesterday’s ruling against a last minute rule change in the America’s Cup was duly reported in today’s Chronicle and Examiner. But as with much of the reporting presented in the mainstream media these days, it was tough to discern what’s really going on here or why the ruling came down as it did.

Luckily for Guardian readers, they’ve been privy to the excellent reporting by Amanda Witherell, who understands both boats and bullshit and set up this decision with an insightful backstory report in this space a couple days ago, “Is Larry Ellison cheating?” with an assist by Guardian staff writer Rebecca Bowe, who is also quite familiar with boats and bullshit.

Here’s the key thing that both papers missed or glossed over: Ellison’s team has been training with this new rudder design on one of its two boats since April, back when it wasn’t even allowed by the rules. And when an Artemis Racing sailor tragically died in May, the home team slipped the rudder design allowance into new “safety precautions,” although it didn’t require it of the New Zealand and Luna Rossa teams, which one would think they would have if it was really about life and death.  

Which it isn’t, say Witherell’s sailing sources. In fact, these longer rudder stabilizers could even be more dangerous because they extend beyond the side of the hull and could run a greater risk of seriously injuring a sailor who slips over the side. What this was really about is changing the rules at the last minute in a way that would benefit Ellison’s team, and that effort has now been struck down by a international jury that oversees the sport.

Ellison is now presiding over these races from his ridiculously large personal yacht docked at Pier 23, a vessel the size of a small cruise ship. His people have booked big name entertainers for him to enjoy, as is customary for events thrown by tech gazillionaires. And he’s created a race using boats that are more expensive and faster — and therefore more inherently dangerous — than any in America’s Cup history, which has been roundly criticized in the sailing world for promoting elitism in the sport.

So it’s good to see that Ellison’s wealth and power can’t buy every single thing he wants, with his initial waterfront real estate deal rejected by progressive San Franciscans, and now his gambit to seek a competitive advantage on the water rejected by the sailing community.

BTW, grab next week’s Guardian to catch Amanda’s latest report on the America’s Cup as competitive sailing finally gets underway in the San Francisco Bay this weekend. And one more thing: Go New Zealand!

More ill winds

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EDITORIAL After years of hype, the 34th America’s Cup finally got underway on the San Francisco Bay this past week — with a single boat formally winning in a match against itself, a fitting metaphor for this whole disappointing affair.

Emirates Team New Zealand sailed solo while its Italian would-be competitor, Luna Rossa, stayed ashore to protest a rule change on rudder design that had been unilaterally decided by regatta director Iain Murray. The third competitor with Larry Ellison’s Oracle Racing team that is defending the cup and hosting the event, Swedish team Artemis, was still trying to rebuild its vessel after a tragic accident resulted in the death of a renowned sailor in May.

It was a lame kickoff. The anticipated hordes of race-goers have yet to materialize, with the once-regal America’s Cup reduced to just another Fisherman’s Wharf tourist trap. In a display that might as well have been used to entice tourists to the Wax Museum, a barker outside the event’s sprawling Pier 27 spectator area fruitlessly tried to lure passersby: “See the fastest boats in the world!”

In an interview with ABC7 news, Oracle Racing CEO Russell Coutts declared the Italians to be “acting like a bunch of spoiled babies,” adding that if they didn’t want to race, they should just leave. You could practically hear the event’s corporate sponsors burying their faces in the palms of their hands.

It wasn’t supposed to be this way. In 2010, when software tycoon Larry Ellison of the Oracle Racing Team hinted to city officials that he might want to stage the next Cup on the Bay, if not Italy or some other exotic destination, economists with the Bay Area Council trumpeted the economic gain that stood to be reaped if Ellison’s plan was realized.

Since a dozen teams competed during the last America’s Cup, the authors of the study reasoned, at least as many could be expected to join this time around. Those initial projections — $1.4 billion in economic activity (like three Super Bowls!, the analysts enthused), thousands of new jobs, a tourism windfall — sounded so rosy in part because 15 syndicates were expected to compete.

But in time, this optimism faded and the city is arguably on the hook for millions in race-related costs. Fortunately, then-District 6 Sup. Chris Daly scuttled an initial plan to cede vast swaths of city-owned waterfront property to Ellison in exchange for the expected economic gain, thus averting an even greater loss.

Meanwhile, Oracle is weathering accusations that it cheated by slipping a design change into a list of safety recommendations, conveniently granting itself a competitive edge. An international jury’s decision on whether to honor the rule change was still up in the air at press time. While we at the Guardian find ourselves rooting for the Kiwis, we remind Ellison that it isn’t too late to right this ship — and cutting a check to the city to cover its losses would be a great place to start.

Is Larry Ellison cheating?

If you’re wondering why the hell there was only one boat was out there “racing” in the first match of the America’s Cup on Sunday, here’s the rundown on “Ruddergate,” yet another contentious chapter in the 162-year history of the America’s Cup.

At issue is the size and shape of the rudders on the twin hulls of the AC72s. Original design parameters were established back in 2010 when, in the interest of fairness, details of the boats were agreed upon by all teams — so exactly this kind of conflict wouldn’t occur. A “box rule” was applied, which means the boats won’t be identical, but they will be similar (Emirates Team New Zealand and Luna Rossa actually have near-identical boats as the Italians came late to the party and bought New Zealand’s design to save time.)

Then, after Andrew Simpson was killed when Artemis’s boat capsized on May 9, regatta director Iain Murray made 37 new safety recommendations, which the Coast Guard made into requirements when they permitted the race.

“Basically, for marine events, marine event sponsors are responsible for the safety of the events,” U.S. Coast Guard chief Mike Lutz explained, noting that the 37 rule changes originated with Murray and were approved by the Coast Guard as a package.

Some of those changes are straightforward and simple, like no guests aboard during races, more body armor, buoyancy and other personal safety gear, and no racing in winds over 23 knots (That one is actually a hindrance for ETNZ and Luna Rossa, who deliberately built for prevailing San Francisco Bay conditions, i.e. as much as 35 knots of wind.) 

But that’s not what the two teams are protesting. They don’t like new size and shape rules for the rudder elevators, which are designed to stabilize the boat when it’s foiling. Oracle has a pretty good description of how they work here.

The new rule lays out minimum and maximum area, depth, and span and says they should be symmetrical. None of the 36 other safety recommendations touch on design elements. The fishy part is that Oracle has been practicing with a bigger, symmetrical rudder elevator since they launched their second boat on April 24. Before Simpson died, before Murray’s new safety rules, Oracle was using what would be considered an illegal rudder. And now, voila, it’s legal.

The Kiwis immediately filed a protest to the rule, on June 28, and four days later Luna Rossa joined them.

“I’m not saying all the changes have been made for them, but it’s nothing related to safety. What really upsets me is that there is one boat sailing since they launched on April 24 who has been sailing out of the class rule,” Luna Rossa’s Max Sirena told the media on July 2. “Why design a boat that doesn’t comply with the class rule? And then one week before the Louis Vuitton Cup, you ask the other teams to change the position of the rudders and the elevators…”

In the meantime, rather than delay the first race or move up the date of the protest hearing, Murray said it was okay for the Kiwis and Italians to race without the “safer” rudder elevators, to which ETNZ’s Grant Dalton said, “The point is that under the recommendations you can run both. The question is why?  Because, if you can run both, then why do you need the ones that aren’t rule compliant?”

Dalton also thinks this design change could make the boats more dangerous because the rudder elevators would extend wider than the maximum beam of the boat and could slice a sailor in half if he slips over the side of the hull.

He hasn’t said something dirty’s going down. He told the media, “If the question is, has that rule been put in there deliberately to help Oracle, then no I don’t think it has – I don’t think for a second Iain Murray has done that. Is it helping them as a kind of byproduct of it, then yes it is.”

Luna Rossa’s Max Sirena has been more critical. “It is not safety related at all … It is the first time in the history of the America’s Cup that they can change the class rule just like that, just because they want to change it and with no reason. To change a class rule you need unanimity. Why when Oracle capsized last October did they not come up with this change then?”

Luna Rossa boycotted until the jury made a decision, stating that it would seem like silent affirmation if they raced. A last minute deal to get them on Sunday’s course fell through and for the time being, the Italians are sticking to their principles – they were out practicing yesterday, showing their boat is more than capable of performing with the smaller, asymmetrical, noncompliant rudders.

“The teams don’t believe it’s proper to change the class rule without a vote of the teams,” said America’s Cup spokesperson Sean McNeill. “They believe [Murray] didn’t have the authority to make such a change.”

If the jury rules in favor of Luna Rossa and ETNZ, Murray would have to go back to the Coast Guard with a new safety plan in order to obtain a new racing permit. “If there’s any change, they would have to submit an updated safety plan,” Lutz noted, saying he was confident that it could be reviewed in a short time and a second permit could be issued without too much of a delay.

The jury convened yesterday to hear the protests and a decision is due Wednesday, but this debacle raises a couple of questions. Why didn’t they hear the protests prior to the first race? That race day was established a long time ago, and hasn’t changed. The jury had at least five days to review the protests – ample time if the race organizers were really concerned with keeping the event from totally losing face.

Instead, two of the three boats were out of the race before it had even begun, creating animosity among the handful of sponsors still involved. Louis Vuitton’s Bruno Trouble – who initially anticipated 15 contenders, then 8, and certainly no less than 5 – is pissed that not even two could show up and the event has been very far from the big splash it was billed to be. Meanwhile, international media aren’t holding back the ridicule. Fairfax NZ’s Duncan Johnstone called it “a hugely embarrassing situation for regatta organisers, a major dent for the on-shore festivities and massive sponsorships that envelop this ridiculously expensive event.”

And, if the larger rudder elevators really are safer, why didn’t Oracle say something back in April before Simpson died? Or in October when their boat capsized? Instead, they’ve been very mum on the subject. Control is going to be as important as speed in this Cup and with the Kiwis and Italians burnt by the lowered wind limits, it looks like Ellison is hoping to top them in the control category. Larger rudders create more drag and less speed, but may get Oracle foiling for longer periods with enhanced stability – which they desperately need.

ETNZ and Luna Rossa have indicated it would be impossible for them to adapt their rudders now that racing has begun. Meanwhile, Oracle gets to hang back until the finals in September, practicing their moves while Ellison carries on with acting too rich too fail.

Rebecca Bowe contributed to this report.

New Zealand’s Cup

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A few weeks ago I was walking down the dock in the marina where I live, in Wellington, New Zealand, when I passed a woman and a young boy. I’d never seen them before, which is uncommon here in this municipal marina — about 100 boats — in a small suburb of the country’s capital.

The boy was walking from berth to berth pointing out certain rig and hull features and expounding on them as only a future aficionado can. “Lots of different boats, huh?” I asked as I passed.

“Different than America,” he confirmed in an accent the same as mine.

The kid is sharp, I thought, or maybe it’s just obvious, even to an eight-year-old from Chicago. The New Zealand sailing scene is vastly different than its American counterpart, which is not to say there’s no comparing — they’re not exactly navigating carved logs with gunnysack sails down here.

But the boats in my marina are, in fact, mostly homebuilt from steel, cement, aluminum, and wood. They appear a motley crew compared to the cookie-cutter production fiberglass Beneteaus, Catalinas, and Hunters, with their identical pacific blue sail covers lined up in San Francisco’s South Beach Marina.

In New Zealand, a boat is rarely a status symbol — it’s part of the middle-class way of life, the home base for holidays and weekend fishing trips and lots and lots of competitive racing. If I’ve noticed one thing since I arrived in this country (aboard a sailboat, after leaving San Francisco and my job as a Bay Guardian staff writer), it’s that every little harbor town has a yacht club and an awful lot of Kiwis own boats — and they sail the shit out of them.

Which is part of the reason why the New Zealand government is willing to invest NZ$36 million (US$27 million) to compete in the 34th America’s Cup against some of the richest men in the world in a race that has become so elite there’s barely any competition.

Small as the field is, Emirates Team New Zealand (ETNZ) is quickly shaping up to be the team to beat if you’re on a high-speed, air-catching AC72 catamaran. If they succeed, it will show that developing an America’s Cup team doesn’t have to come from having deep pockets in your Nantucket Red pants — it comes from having the sport ingrained in your culture, filtered through affordable local boat clubs, city-run facilities, volunteer programs, publicly accessible shorefronts, and an innovative marine industry.

In fact, without New Zealand’s maritime way of life, Larry Ellison wouldn’t have much of a team: of the 27 sailors and management crew aboard Oracle, a third are Kiwis. Another third are Australians. If you count Ellison, there are only three Americans aboard. Just one of them — tactician and grinder John Kostecki — grew up sailing on San Francisco Bay.

Ellison’s boat is mostly a Kiwi production, too — the fixed-wing sails and structural components for Oracle’s two AC72s were made in New Zealand, as were the boats, sails, and rigs for ETNZ and Luna Rossa. The only other syndicate competing, Sweden’s Artemis, in the wind since the death of crewmember Andrew Simpson, is the outlier, but they still have eight New Zealanders on board.

America’s Cup is looking more and more like it owes a lot to New Zealand. Is the Cup doing as much for San Francisco as it is for this little island nation, with a population just a tenth of California’s?

“If it wasn’t called Team New Zealand, we wouldn’t get a lot out of it,” says Sven Pannell, a competitive dinghy racer and employee of the economic development agency Grow Wellington. “The numbers of boat builders, carbon fabricators, sail makers, yacht designers coming out of New Zealand are the reason we’re still at the top of the global game. If we can bring the Cup home that means a lot for our country.”

It may also save America’s Cup from becoming even more out of touch with reality.

 

IT’S THE CULTURE, STUPID

It’s June 8, summer in San Francisco but winter in Wellington. The first race of the 2013 Winter Series at Evans Bay Boat Club hits hypothermic seas beneath steely overcast skies and 20-30 knots of wind — “perfect conditions,” one sailor enthuses. Tame, actually, for Wellington. A week ago, wind blew out the fifth story windows of a building downtown.

Sven Pannell has just finished racing a 12-foot skiff, a super lightweight, often homebuilt boat that probably originated in Australia and is almost exclusively raced in the Southern Hemisphere, though an 18-foot version will be showcased in San Francisco this September alongside the America’s Cup finals. Weighing about 100 pounds, with no class restrictions on sail area, they rooster-tail around Wellington harbor, bow high, barely in the water. They seem to require a similar caliber of nerve as the AC72s.

Which Pannell, who won today, evidently has. He grew up sailing as a kid, as did his crew, Craig Anderson. Neither of them can think of anyone who didn’t get into sailing as a child.

“A lot of people around the world think yachting is a well-heeled sport, but not in New Zealand,” he says. “There’s a reason that half those [America’s Cup] boats are full of Kiwis and Aussies. Go out and see the number of eight-year-olds in Optis in all kinds of weather here. A high number of people sailing at that age creates a deep pool of sailors in demand.”

“America’s Cup is about stretching the limits, but it starts here, when you’re eight years old,” he adds.

Eager to get out of the icy Antarctic wind, I enter the boat club where about 35 people are gathered at the bar, buzzing from adrenalin, barefoot and wet from spray or capsizes, gripping ginger beers and green bottles of Steinlager, the Budweiser of New Zealand. It’s a humble looking crowd — no flash gear or cashmere.

I’m introduced to Mike Rhodes, 26, wearing a blue sweatshirt and camo pants. He’d love to race an America’s Cup boat, but he also satisfies himself with a 12-foot skiff, which he stripped and rebuilt, fashioning the stainless steel fittings himself — he’s a sheet metal worker.

“New Zealand sailing is all about learning and moving forward,” he says. “The boats we’re sailing are always changing. We have set rules for weight, width, and length. After that it’s wide open. You can put up as much rig as you can handle. We went out in 50 knots last weekend. It was insane. We probably had boat speeds of 30 knots.”

The speed and innovations are what appeal to Rhodes and also connect to the America’s Cup, which has been an historic proving ground for leaps forward in boat design. “Who thought New Zealand could make the boat fly first?” he says of ETNZ’s proficiency at foiling the AC72 — going so fast the hull actually lifts off the water.

We’re soon joined by Laura Hutton, a 30-year-old from Cape Cod. She’s raced dinghies, coached and taught sailing for years. Now a speech therapist, she moved to New Zealand three months ago and immediately hooked into the local yachting scene. It’s palpably different than what she’s used to in the States. Here, she says, “It’s a lot more laid back. It’s more inclusive than exclusive. I used to go to events at New York Yacht Club in Newport and I felt so uncomfortable there. It’s the most elite, snobby place.”

“You can’t get coaching in the US unless you’re part of a yacht club or go to a school with a racing team,” she adds, and there’s often a huge cost to enter the sport. “Here, I can join the local yacht club for $35 a month,” she deadpans.

I spend more money riding the bus, I tell her, but I wouldn’t in San Francisco, where it’s cheap to catch a bus but where most people rarely board boats.

The American yacht club tradition has a certain “if you have to ask how much it costs, you can’t afford it” attitude. Ellison is one of 300 members of Golden Gate Yacht Club, official host for the Cup. Its neighbor, St. Francis Yacht Club, 2,300 strong, also has a role in the festivities. Both are exclusive, members-only clubs and neither would tell me what their members pay for the club’s privileges.

However, they’re officially nonprofit organizations and filings with the IRS show St. Francis made nearly $13 million in 2011. Golden Gate Yacht Club took home $660,000 the same year. Ironically, both clubs are on public lands, leased from San Francisco’s Recreation and Parks Department for $231,125 and $64,000 annually respectively.

Both clubs run learn-to-sail programs for kids — $350 for St. Francis and $200 for GGYC — which seem affordable, but what’s the next step? Joining the club, but apparently it’s too rude to query the price.

By contrast, Wellington’s Evans Bay Boat Club charges NZ$281 (US$210) to join and Royal Port Nicholson Yacht Club, which is a sister club to St. Francis, costs NZ$160 (US $120). The Bay Area is lucky — Berkeley and Treasure Island both have affordable clubs, however one could argue that if St. Francis and GGYC are on public lands, they should be paying more in dues to the city.

If there’s a posh club in Auckland, it’s ETNZ’s home — the Royal New Zealand Yacht Squadron. “But it’s a Kiwi version of posh, nothing like some of the yacht clubs I have been to in places like England, where women aren’t allowed to order drinks at the bar,” says Ben Gladwell, a journalist for Boating New Zealand who will be racing an 18 foot skiff in San Francisco in a regatta concurrent with the Cup finals. “At the Squaddy, there are obviously rules, like no cell phones, and dress codes and such like, but the fees are still only a few hundred dollars per year and it is much more inclusive than other yacht clubs around the world.”

Gladwell explored the health of New Zealand’s sailing culture in a story called “State of the Racing Nation” for Boating New Zealand. He found that although there is a drop-off in interest during university years, many yacht clubs have created partnerships to keep kids in the sport, there are mobile learn-to-sail units roaming the country, and lots of accessible city-run programs for kids. Couple that with low lifetime fees to stay in the sport and you see healthy clubs like Evans Bay, where people of all ages are out racing every weekend, all year round.

“Having so many people involved in sailing is a major reason we are successful,” he says. “Children are introduced to it at such a young age…by the time they come to competing at youth international regattas, they are hugely experienced and winning becomes a habit.”

 

“AMERICA’S CUP IS NOW NEW ZEALAND’S CUP”

In 1995, when Black Magic smoked Dennis Connor’s Stars and Stripes in a five-race shut-out, commentator Peter Montgomery famously quipped “America’s Cup is now New Zealand’s cup,” a line that’s gone down in Kiwi history like the “I have a dream” speech.

For the first time, the Auld Mug would be defended in New Zealand. Back then, Auckland’s Viaduct Harbor probably looked a lot like parts of San Francisco’s waterfront does today — dilapidated piers and old industrial buildings crumbling on their pilings. It would cost of NZ$58 million (US$29 million at the time) to dredge the harbor and spruce up the waterfront for the Cup.

The city made its money back. Hosting for two years, in 2000 and 2003, brought NZ$1 billion (US$500 million, at the time) in economic benefits to the country, about 85 percent of that going to Auckland’s local businesses, mostly from visiting megayachts and the services required for the nine syndicates that competed — twice as many as are in San Francisco today.

And Auckland made a lot less than the US$900 million predicted for San Francisco, already trimmed from the US$1.4 billion initially estimated. What the city actually gains from the $22.5 million investment they’ve been forced to make remains to be seen. Meanwhile, Auckland continues to benefit from the race.

It’s been estimated that the four Cup contenders have collectively spent half a billion on their campaigns and a decent chunk of that has been in Auckland, particularly during the AC72 design, build, and testing phases. Already, taxes paid by ETNZ employees amount to NZ$22.4 million (US$16.5 million). That doesn’t include the employee payroll taxes of all the businesses doing Cup-related activity, like the boat builders, riggers, and sailmakers.

ETNZ CEO Grant Dalton has netted sponsorships from more than 100 companies and argues that the Cup efforts have kept many marine businesses afloat that would have otherwise shuttered. Kiwis have not been immune to the world financial situation: the high New Zealand dollar hurting exports and the NZ$30 billion (US$22.5 billion) price tag for the February 2011 Christchurch earthquake have stressed the country’s coffers.

Because of that, funding ETNZ has been as contentious here as hosting Ellison’s party has been to San Franciscans. The agreement was signed in 2007 by a Labour Party-led government and when National Party’s John Key won the Prime Minister’s seat in 2008, he looked into breaking the contract, a move supported by other parties. “Funding the America’s Cup is surely a ‘nice to have’, rather than essential spending, in the current economic climate,” said Green Party co-leader Metiria Turei at the time.

The government was advised they’d still be legally on the hook for the money if they broke the contract, so ETNZ proceeded, but proof of economic return was a contingency and Dalton has taken pains to keep the public good in the conversation, a sharp contrast to Ellison’s attitude toward San Francisco. Dalton has said if New Zealand wins, the world should expect a sharp scaling back of costs. “We stand for nationality rule and we stand for real budget numbers that real people can raise,” he has said.

There’s definitely a sense that this could be New Zealand’s last chance to bring the Auld Mug home. If they don’t, the America’s Cup also loses. Who else will save it from American-style exclusiveness?

Desperate for support, 8 Washington developers run ads proclaiming: “Stop the 1%”

With a July 8 deadline fast approaching, the developers behind the 8 Washington project are taking steps to ensure their measure to approve one of the priciest condo projects ever contemplated in San Francisco ends up on the November ballot.

David Beltran, a spokesman for 8 Washington’s campaign “Open Up the Waterfront,” says they are “on track” to collect the 9,000 signatures needed to place their measure – which would counter a measure opposing the project – on the ballot. But in a seemingly desperate move, the project proponents are paying a higher-than-average rate of $3 per signature. According to a voicemail left for petition gatherers, they’re trying to gather all the signatures by June 30, less than a week away.

“They have spent $220,000 on the campaign trying to qualify the counter measure for the ballot,” according to Jon Golinger, who ran the referendum campaign opposing the project.

Meanwhile, an online ad circulated by “Open Up the Waterfront” reads: “Stop the 1%. Don’t let the 1% prevent open access to the waterfront.” The ad makes no mention of the condos at the heart of the project. Apparently the deep-pocketed project proponents believe the best way to garner popular support is through vague messaging that sounds aligned against the superrich. “A corporate developer is posing as an Occupy activist and attacking the millionaires he is trying to build his luxury condos for,” Golinger says. “What’s next, Larry Ellison walking the picket line to protest the America’s Cup fiasco?”

Beltran, however, counters that “Open Up the Waterfront” is supporting the 99 Percent. “The 8 Washington plan will provide $11 million for the creation of new affordable housing, create 250 good paying construction jobs and 140 permanent jobs and generate over $100 million in benefits to the city,” he said. “Opponents of 8 Washington are selfishly asking San Franciscans to give all of this up, in order to protect the status quo: an asphalt parking lot and a private club that provides zero benefits to working families.”

In the end, Golinger says the developers will most likely obtain the signatures that are needed to land their measure on the ballot. “They have a harder road, but they have enough money and bodies on the street to get signatures,” he said.

Go, New Zealand

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Imagine if Larry Ellison lost the America’s Cup.

Imagine if the third-richest American — the guy who made the race so expensive that only billionaires (and poor Team New Zealand) could enter — became the man who lost the Cup. Imagine if the next race were held Down Under, with cheaper boats that don’t kill people — and no taxpayer subsidy from San Francisco.

I’m rooting for the upset. Go Kiwis.

Seriously: Ellison is an asshole, he’s refused to pay for his own race party, possibly sticking San Francisco with as much as $20 million in unpaid bills. Yeah, he’s the American in the America’s Cup, but I really don’t care if the trophy stays in this country.

New Zealand’s having trouble coming up the money for all the last-minute equipment changes, but I don’t see that team dropping out. The folks from NZ want this, and they want it bad. New Zealanders probably care more about the Cup than Americans do. Beating Ellison, with his unlimited cash and unlimited arrogance, would be a huge source of national pride.

So I’ll be out there watching the races, but I won’t be cheering the home team. And I’ll go home happy if Larry’s a loser.

 

SF homeless services budget item < 0.25 percent of Larry Ellison’s net worth

Billionaire Larry Ellison, the vainglorious CEO of Oracle and yachtsman responsible for bringing the America’s Cup to San Francisco, has come a long way since 2010, when he first floated the idea of hosting the elite regatta against a Golden Gate backdrop.

On Forbes’ 2010 list of the world’s wealthiest individuals, Ellison’s estimated net worth of $28 billion earned him a spot in sixth place. That amount gave him a slight edge over the current GDP of Panama, but the superrich seafarer is doing waaaaay better than that Central American nation these days. On the 2013 Forbes roster, the tech mogul rose to No. 5, and his estimated net worth had ballooned considerably, to an estimated $43 billion.

As it happens, the additional $15 billion Ellison managed to attract in the last three years is nearly twice the total spending plan unveiled by San Francisco Mayor Ed Lee last week, when he presented the largest proposed city budget in history.

Lee made a point of noting in press statements that he’d taken pains to preserve social services; even tossing an additional $3.8 million toward funding for homeless prevention and housing subsidies. Nevertheless, some dust seems to be kicking up over how equitably Lee would have public dollars distributed across the board.

With the America’s Cup looming on the horizon, the mayor’s budget now awaiting supervisors’ review, and an ever-widening gulf between the haves and the have-nots in San Francisco, we began to ponder: Just how does Ellison’s wealth compare to the amount spent on, say, homeless services in San Francisco?

In Lee’s proposed 2014-2015 budget, “homeless services” is allotted $101,669,214 via the Human Services Agency, about $1.5 million less than the amount included in the city’s 2013-2014 budget. 

That figure could also be expressed as 0.236 percent of Ellison’s estimated net worth. Decimal dust.

Within a week or so, we’re told, the Human Services Agency will release an updated estimate of the city’s homeless population, along with historical comparisons suggesting whether the ranks of the un-housed has grown or waned in recent years. Weeks after that, San Francisco’s waterfront will be transformed by a sporting event that only the superrich can afford to compete in.

Spare change, Larry?

Tensions flared over the America’s Cup last week as critics called for billionaire yacht owner Larry Ellison to cover the looming city deficit out of his own deep pockets.

It’s evidently a popular idea: A petition asking Ellison to pony up had collected 1,663 signatures as of Wednesday morning.

The language in the petition, started by former Sup. Aaron Peskin, cuts straight to the point: “Your net worth is $43 billion,” it states. “Covering the America’s Cup debt would be equivalent to a person who has $40,000 donating $13.95. Is that too much to ask?”

At a hearing March 13, Sup. John Avalos asked why the city’s General Fund was on the hook to help cover costs for the yachting event, despite earlier assurances that the city would be reimbursed for tournament-related expenses.

The prestigious international yacht race will be held on the San Francisco Bay starting in July. A host and venue agreement hashed out between the city and race organizers provided that the America’s Cup Organizing Committee, the tournament’s fundraising arm, would “endeavor” to solicit donations from private donors to reimburse the city for expenses incurred, originally pegged at $32 million. Total city costs are now estimated to hover around $22 million, but so far ACOC has sent less than $7 million in reimbursement, city agency representatives reported at the hearing.

The fundraising committee has mostly come up dry on the rest — and now Avalos is irked because the city agency that negotiated the deal appears to be “moving the buoys,” as he characterized it, by counting a projected tax revenue boost instead of actual reimbursement dollars as adequate compensation for city spending.

Mike Martin, tasked with leading the city’s involvement in the America’s Cup under the Office of Economic and Workforce Development, showed a slide at the hearing suggesting that ACOC’s “remaining fundraising need” was just $2.6 million, since a projected $13 million in increased tax revenues would bring the city to a break-even point. That projection was based on expected increases in sales, payroll and hotel taxes during the yachting event.

The presentation seemed to reframe the premise that the city would be made whole for tournament-related expenditures, as well as reap the benefits of a tax boost, in exchange for agreeing to host the sailing events. Yet Martin called this notion a “mischaracterization” in a phone interview.

“I don’t disagree that there are people who think that this is not what they understood to be the deal,” Martin said, clearly reacting to Avalos. But “this was part of the policy dialogue at all steps of the conversation.”

Reached by phone after the hearing, Avalos did not sound satisfied with the responses he’d heard. “It seems that the commitments that were made to the Board in 2010 … are not being taken seriously,” he said. “Now that they’re coming up short on fundraising efforts, they’re trying to say the General Fund should be subsidizing the cost of the race.”

Martin pointed to a report prepared by Budget and Legislative Analyst Harvey Rose in December of 2010, before the contract between the city and race organizers was finalized. The report included a break-even analysis that factored in tax revenues, and Martin stressed that this consideration had been part of the dialogue since the outset.

But that same report also contained a key recommendation: Rose advised the supervisors to amend the proposed agreement to “require that the America’s Cup Organizing Committee pay the City and County of San Francisco $32 million, or final estimated city costs.”

No such ironclad requirement was ever included; instead, the fine print in the final agreement wound up containing watered-down language: “The Authority and the City acknowledge and agree that they are not relying in any manner on any current or future commitment … or any statements, representation, or actions of, any … agent of [ACOC].”

Nick Magel, who works for Causes.com, told us that Peskin’s online petition calling on Ellison to cover the fundraising shortfall was gaining more momentum than most online campaigns taken up via the website. “The campaign is performing well, considering it’s less than a day old,” he said March 15. “The most impressive indicator is that over 95 percent of the signatories are from the Bay Area. Seems the campaign is striking a chord with local residents.”

Tough questions asked on America’s Cup fundraising shortfall

At a March 13 subcommittee hearing called by Sup. John Avalos, representatives from the city’s Office of Economic and Workforce Development (OEWD), the America’s Cup Organizing Committee (ACOC) and others were called upon to explain why coordinators of the prestigious yacht race have failed to reach projected fundraising targets to defray city costs. If the fundraising goals aren’t reached, the city’s General Fund could weather a $13 million hit to cover costs for the sailing event.

San Francisco struck an agreement to host the sailing competition in 2010, following negotiations initiated under former Mayor Gavin Newsom with entities associated with Oracle Racing Team, owned by billionaire Larry Ellison. The events will culminate with a sailing match on the San Francisco Bay this coming summer.

Mark Buell, who chairs the board of ACOC, told supervisors original projections had pegged total event revenue at $300 million, with eight to twelve vessels competing in the race. Those projections have decreased dramatically, with only a handful of teams entering and other “unknowns” amounting to the fact that “revenues are not what we had hoped,” Buell explained. Yet he tried to put a good face on it, saying, “All told, I believe that the city will come out whole.”

Kyri McClellan, who became CEO of ACOC just after helping negotiate the deal to bring the America’s Cup to San Francisco at her previous job with OEWD, told supervisors that ACOC had hired a fundraising expert and launched an initiative called ONESF to kick up the fundraising efforts.

She added that Mayor Ed Lee was helping to secure funding commitments for the race, by “holding breakfasts with CEOs” and asking them to commit funding. Lee is “putting in an incredible amount of energy behind this,” McClellan said, “and people are responding.” She said Sen. Dianne Feinstein had also been involved in helping to secure funding for the sailing competition.

San Francisco Controller Ben Rosenfield provided a breakdown of the funding shortfall so far. An economic analysis conducted a year ago found that ACOC had $12 million cash in hand, he said, less than half the $32 million initially projected as what was needed to defray city costs. Only $13.9 million in pledges and documented cash can be accounted for thus far, Rosenfield added, and the committee has raised around $10 million less than it originally planned for at this stage of the game. “We found they’ve fallen short,” he explained. 

McClellan reported that an additional $1.1 million would be coming in, “from donors and pledges, between now and January of 2014.”

Mike Martin, tasked with leading the city’s involvement in the America’s Cup on behalf of OEWD, displayed a slide that seemed to paint a much rosier picture of the fundraising shortfall than the $20 million cited in recent media reports.

The total city budget projection for covering costs of the race is actually closer to $22 million, lower than the initially projected $32 million, according to his slide. So far the city has been reimbursed for $6.8 million of that, he said. But the next line on Martin’s slide subtracted “projected event-related tax revenues” pegged at around $13 million, apparently suggesting that the city would be made whole by increased tax revenue rather than by receiving an actual reimbursement payment to defray city costs. According to OEWD’s calculation, that makes the “remaining fundraising need” only about $2.67 million, according to Martin’s presentation.

“I don’t think it’s been the intent to say, let’s stop there,” Martin explained. “We have a few months to capitalize on the growing awareness and excitement about the event.”

Reached after the hearing, Sup. Avalos did not sound very excited by what he had heard in response to his inquiries. “It seems that the commitments that were made to the board in 2010 … are not being taken seriously,” Avalos said. “Now that they’re coming up short on fundraising efforts, they’re trying to say the General Fund should be subsidizing the cost of the race.”

The America’s Cup is killing us!

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First Larry Ellison and his rich cronies try to perpetrate an audacious real estate scam on San Francisco, after pitting us against other cities to host his America’s Cup race. Even though we were able to scale back that swindle, they still evicted Teatro ZinZanni from Pier 27 so they could profit from overpriced waterfront concerts at the spot they supposedly need for their boat race — lying, cheating and corrupting the system along the way.

Then we learned that Ellison, the world’s fifth richest man, and the other 1-percenters on the America’s Cup Organizing Committee, may stick San Francisco taxpayers with a $20 million bill for their race because they’re all too greedy and selfish to honor their private fundraising commitment – which they could cover by simply writing checks for amounts they would barely notice, and which they’d probably find a way to write off of their taxes anyway.

And now, on top of all those outrageous indignities … they’re killing people!

Well, maybe Ellison and his crew aren’t actually committing murder. But during last weekend’s venerable Escape from Alcatraz triathlon – which was moved up from the warm-ish summer months to the frigid winter because the yachts are apparently unable to share the bay for a few hours one morning – one man died of a heart attack and 150 participants had to be rescued (three times the normal number) because the water was so dangerously cold.

Just one more example of how overentitled rich people, with the active complicity of the Mayor’s Office, are having their way with San Francisco, heedless of the consequences.

A fine use for Larry’s fine art

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A loyal reader contacted us with a great suggestion to solve all the fundraising problems of the America’s Cup.

This summer, it turns out, will be about more than racing for the city’s mega-billionaire yacht-race king. The Asian Art Museum’s latest program guide notes that from June 28-Sept. 22, the museum will host “In the Moment: Japanese Art from the Larry Ellison Collection.”

The museum will present “works from the rarely seen collection of Larry Ellison, owner of cup defender Team Oracle USA. The exhibition introduces about 80 artworks spanning 1,300 years. Included are works of the Momoyama (1573-1615) and Edo (1615-1868) periods.” According to the Metropolitican Museum of Art, “this period was characterized by a robust, opulent, and dynamic style, with gold lavishly applied to architecture, furnishings, paintings, and garments.”

Oh, and it’s worth noting that the Momoyama and Edo periods were also marked by the dominance of brutal warlords who claimed much of the nation’s wealth while most subjects lived in dire poverty.

At any rate, I’m sure the stuff is nice. Beautiful, even. And pricey. Bet a philanthropist of Ellison’s stature could auction off just a couple of those 80 pieces and raise enough to pay off the entire AC budget deficit. Eh, Larry?