Board endorses America's Cup term sheet after hours of debate over costs, oversight and port impacts

The San Francisco Board of Supervisors voted 9-2 to endorse a nonbinding term sheet laying out the city's proposed offer to host the 34th America's Cup, setting in motion negotiations with the event authority and race organizers.

The vote followed more than two hours of public testimony and extended board debate. Supporters called the event a once-in-a-generation opportunity that would bring infrastructure investment, tourism revenues and jobs. "I pray to God that Ellison says yes, and I cannot be stronger in my feelings on getting those boats out onto the San Francisco Bay," said Supervisor Scott Wiener.

Opponents and some supervisors raised detailed fiscal questions about the term sheets financial assumptions and the citys potential obligations. The proposal asks the America's Cup organizing committee to secure $270 million in corporate sponsorships for marketing and $32 million in philanthropic-type funds to reimburse the city for permitting, CEQA and some city staff time, while the teams committed to invest an estimated $150 million in waterfront infrastructure improvements. Board members also discussed possible legacy leases to event partners for pier properties and "seawall lot" transactions.

Supervisor Sean Elsbergy pledged vigorous scrutiny. "This is a very important vote," he said, adding that once a term sheet is signed and the city is chosen as the host, it will be difficult for a subsequent board to reverse course.

Supervisor John Daly, whose district includes much of the waterfront proposed for use in the cup, urged caution and demanded fiscal detail. He presented a draft staff spreadsheet that showed potential net general-fund costs when projected impacts, port revenue losses, infrastructure expenditures and uncertain reimbursements were combined. "We're being asked to approve a term sheet without a budget analyst report or CEQA documents," Daly told colleagues. "I think for us to say this is going to be a big benefit to the general fund is just not true based on what I'm getting so far."

City officials described the term sheet as a preliminary, nonbinding outline that seeks to: (1) secure use of waterfront assets including Piers 30-32, Pier 50 and Seawall Lot 330; (2) support formation of a non-profit America's Cup organizing committee responsible for raising sponsorships; and (3) create an event authority structure coordinating federal, state and local approvals. Jennifer Matz, director of the Office of Economic and Workforce Development, told supervisors the $150 million in infrastructure investment is separate from the $270 million sponsorship total and that the $32 million would reimburse the city for expected costs tied to permits, environmental review and city staff time.

Planning and port officials acknowledged many details remain to be negotiated. Port Director Elaine Forbes told the board the term sheet is "promising" but noted the port still needs to evaluate tenant relocation, schedule, and the value of long-term leases. She said the ports capital plan had long assumed certain parcels could finance improvements but that the port must protect its balance sheet.

The board voted 9 in favor, 2 opposed (Supervisor Avalos and Supervisor Daly), and adopted resolutions endorsing the citys bid per the term sheet. Supervisors also asked staff to come back with a fiscal feasibility report before further, binding steps. After the vote, OEWD agreed to return to budget and finance with more complete fiscal analysis within weeks.

Why it matters: The America's Cup is an international sailing event that can bring significant tourism, publicity and private investment. The term sheet outlines how the city would provide assets and regulatory coordination in return for infrastructure upgrades and sponsorship revenue. But the scale of promised public works, port impacts, and potential general-fund and enterprise-fund exposures drew sustained skepticism from some supervisors.

Whats next: Supervisors requested a fiscal feasibility study to be presented to Budget and Finance in the coming weeks; any future binding host city agreement will require additional approvals, likely including environmental review (CEQA) and potential legislative or voter actions for financing.

Speakers quoted: Jennifer Matz (OEWD); Elaine Forbes (Port Director); Supervisor John Daly; Supervisor Scott Wiener.