America’s Cup: Boon or bust?

Will the yachting extravaganza The City hopes to host bee a boon or a bust for San Francisco’s bootom line?

As with situations in the City by the Bay, it turns out that all depends on whom you ask.

On Friday, two dueling reports were released about the potential fiscal impact of an America’s Cup race hosted by San Francisco. One expects the race to generate about $88.1 million for The City, while the other expects the city to lose more than $101.4 million.

A mere $189.5 million difference in opinion.

Outgoing Mayor Gavin Newsom’s administration has been vying for The City to be chosen as the host of the international America’s Cup yachting race in 2013, after the previous race was won by the yachting team funded by Bay Area billionaire Larry Ellison. The team now has the right to choose the host city for the next race, and has claimed two other cities are preparing bids, though no other cities have come forward.

Newsom’s staff has touted the race as a major moneymaker for San Francisco, but that claim was deflated by a report released last month by the office of legislative budget analyst Harvey Rose. That report determined that both The City’s and its Port would be required to shoulder huge expenses.

In the early hours of Friday morning, Rose’s office offered a second, updated report. By mid-morning, the Mayor’s Office of Economic and Workforce Development had released another report with a far different conclusion.

Here are a few of the differences between the reports:

  • The Mayor’s report counts on $32 million in privately raised funding to offset city costs, while Rose’s report points out that this money is by no means guaranteed;
  • The mayor’s report counts about $30 million in long-term increased value on port land, while Rose’s report notes that that increased value will almost solely benefit the developers, rather than the Port;
  • The mayor’s report considers potential long-term increased tax revenue, while Rose’s report states that future tax revenue will be passed to developers;

Which assessment is more accurate will surely be a subject of serious debate at the Board of Supervisor’s Budget and Finance Committee meeting Wednesday.

kworth@sfexaminer.com

Bay Area NewsLarry EllisonLocalSan FranciscoTransittransportation

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

BART police data shows racial disparities in enforcement across the board

Black BART riders are overwhelmingly ticketed and cited more by BART police… Continue reading

Mayor Breed may appear in Matrix 4

Mayor London Breed may soon enter the Matrix. Multiple sources confirmed to… Continue reading

Lawmaker introduces legislation to kick off creation of Bay Bridge bus lane

Assemblymember Rob Bonta’ s placeholder bill would create ‘sustainable, efficient’ public transit

Student walkout at Aptos highlights concerns about bullying

More than 100 students walked out of Aptos Middle School Friday morning… Continue reading

Thousands of orchids on display at Golden Gate Park

Nearly 30,000 orchids filled the County Fair building at Golden Gate Park… Continue reading

Most Read