Projected costs associated with the America’s Cup have skyrocketed to $163 million — up from the city’s 2010 estimate of $86 million. Meanwhile, doubts are growing about whether the event will be as exciting or as lucrative as initially projected.
The cost to overhaul dilapidated piers has more than doubled over the past year — from $55 million to $111 million.
Under a proposal that will go before the lawmakers this month, America’s Cup organizers, led by billionaire software mogul Larry Ellison, would pick up the tab for most of those costs in the short term, and then recover them from the city and its port through long-term leases or ownership of public waterfront land.
The San Francisco Board of Supervisors’ budget analyst, Harvey Rose, wrote in a report published Thursday evening that the city would need to spend $52 million on police, transit and other services to host the regattas this year and next — that’s up from an estimate of $31 million published in late 2010.
To partly defray those costs, Rose estimated that San Francisco would reap $22 million from additional sales and hotel taxes and other revenues generated from visitors and event-related spending.
A nonprofit group established by America’s Cup organizers to raise funds to defray city expenses aims to raise $32 million. So far, that group has told the city that it has received pledges for at least $12 million.
The supervisors’ budget and finance committee hearing into the proposed deal will be held on Wednesday. The full board will vote on the plan later this month.
Source: The Bay Citizen (http://s.tt/15Djm)
The America’s cup has been moving away from the public a little more every year. At the same time, never has the America’s Cup needed the public as much as now. I find the overtures by the AC to the public are awkward at best. San Francisco is caught in the middle without a voice. As I have written in the past “be careful what you wish for:” Imagine if this was happening in Newport.
The money figures are incredible (sounds a bit like the bottomless pit in London for the upcoming Olympics). You are right to have major concerns if Newport had this happening. But I do know one person who is happy about it all…she is renting her Sausalito condo on the water this time (for a whopping amount, no doubt) while she comes to Paris and enjoys life here.
We it looks as if Newport won by not getting the cup races and San Fran came in second by getting them. Too funny. Thanks for sharing Steve. Bill