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NOVEMBER 4-10, 2011 ADVERTISING SUPPLEMENT

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2011 ACEA / GILLES MARTIN-RAGET

America’s Cup


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34TH AMERICA’S CUP

ADVERTISING SUPPLEMENT

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

34TH AMERICA’S CUP

ADVERTISING SUPPLEMENT

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A race for business The America’s Cup. Oldest trophy. International sporting event. Business engine. Technology catalyst. All the above? Time to join the conversation.

Jay Nath, Director of Innovation for the city’s Department of Technology

“The profound impact will be investment in substructure on piers that are rotting away and would otherwise be impossible to reuse. Look at Piers 30-32. Years ago the city put them out to bid, and some very savvy real estate investors looked at the package and wanted to like it, but they could not make the numbers work. Now America’s Cup needs the space. To offset the cost of making the piers useful again, the city offered longterm development rights. It took the America’s Cup.” Michael Cohen, Strada Investment Group, former Director of the City of San Francisco Office of Economic and Workforce Development

“The greatest legacy of America’s Cup will be the growth of small businesses in San Francisco. Their [America’s Cup] Business Connect portal will put our San Francisco-made products on a global stage, and they’ve reached out to the community to make that real. We founded DODOcase to manufacture cases for iPad and Kindle, cases that would provide the satisfying tactile sensation of holding a book. We started in 2010 and now we have 10 employees full time and 10 part time. Imagine the opportunity to bring our products to the international audience of America’s Cup.” Craig Dalton, co-founder, DODOcase

Contents A race for business .......................................... 3

America’s what? ....................................... 12-13 It’s okay if you aren’t sure. Our timeline will help you through.

A plan for moving people ............................ 16 How San Francisco hopes to move up to half a million people per day with no gridlock.

The world in SF ......................................... 14-15

Healthy Ocean campaign initiative .... 18-19

Business connects with the Cup ................ 6 From spectators to sponsors, America’s Cup related spending should help your businesst.

Nine boats, eight teams, seven countries, all eyes on San Francisco.

Environmental groups team up with the America’s Cup on the largest global focus ever for healthy oceans.

Innovation augments Cup Reality ......... 8-11 Military grade tech meets open data and YouTube. The Bay Area’s transformative, innovative, entrepreneurial climate helps reinvent a sport. How will it change your game?

It’s a favorite business gripe: environmental regs kill Bay Area projects and jobs. But an unprecedented America’s Cup “sustainability plan” has created a new dynamic. Can it succeed?

A billion-dollar stimulus................................. 4 One billion of anything is a big number. How do the Cup’s numbers add up?

Making sustainability sustainable ......16-17

Envisioning a revitalized waterfront.....20-23 For decades the Port of San Francisco has worked to rebuild a commercially viable waterfront. Problem piers remain. Will the America’s Cup save the city’s most unique real estate?

2011 ACEA / GILLES MARTIN-RAGET

“The great benefit to the Bay Area will come from the Open Data–Open Innovation approach that America’s Cup has embraced. Not many organizations understand the value of liberating data and putting it in the public domain. With the technology community that we have here, and the spirit of innovation, we hope to see solutions that will persist beyond the races in 2013. America’s Cup is showing real leadership by investing to stream open data in real time. What are people going to do with the data? The beauty is, we don’t know.”


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34TH AMERICA’S CUP

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

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For the big races in 2013, predictions show weekend attendance growing from 100,000 to upwards of 500,000 for the deciding races. Total 2013 America’s Cup visitor tallies could exceed 5 million, around half being non-local.

Impact: A billion-dollar stimulus

BY THE NUMBERS

Economic impact of mega sport

Study forecasts boost to Bay Area’s economy that will surpass that of major sports teams

O BY PAUL V. OLIVA

FIFA World Cup 2010 (soccer):

$13.4 billion

Olympics 2000, 2004 (multi-sport):

$10 billion America’s Cup 2013 (sailing)

RUNNING A TEAM IN SF Expenditures in millions of dollars Competitors don’t share their budgets, but here’s one take on how a representative America's Cup team might spend $14 million locally. Marine sector $1.8 (13%)

Construction $1.8 (13%) $0.9 (6%) Transportation

Advertising $2.9 (20%)

$0.8 (5%) Food & beverage

Housing $5.3 (37%)

$0.5 (4%) Retail purchases $0.3 (2%) Leisure

Super Bowl 2011 (US football)

$612 million Sources: FIFA, Arthur Anderson 1999; PriceWaterhouseCoopers 2004; Bay Area Council Economic Institute / Beacon Economics; Marketing Information Masters

that Hardly Strictly Bluegrass draws 350,000 attendees to Golden Gate Park on its peak day.) Total 2013 America’s Cup visitor tallies could exceed 5 million, around half being non-local. The San Francisco Office of Economic and Workforce Development is now working to refine the numbers. Director Jennifer Matz says, “We’re going to take the assumptions from the study and apply them now that we know more of what the project looks like.” For instance, to get calibrate spectator

The 34th edition will be sailed in the fastest boats ever, on the first-ever courses close to shore and in spectatorand TV-friendly durations, with unprecedented visual technology, and in a wildly popular and physically beautiful tourism destination. It’s not hard to imagine this Cup will far exceed any preceding.

estimates, Matz’ office is obtaining a first-ever study ever courses close to shore and in spectator- and of spectator flow patterns for Fleet Week 2011. She’s TV-friendly durations, with unprecedented visual also looking carefully at operation of the America’s technology, and in a wildly popular and physically Cup World Series in San Diego this month. For now, beautiful tourism destination. It’s not hard to imagMatz hesitates to speculate whether the economic ine this Cup will far exceed any preceding. impact and spectator projections will be adjusted However you slice it, over $1 billion will be spent up or down. in the bay area between now and when ORACLE This much is known: the America’s Cup has always Racing wins or loses the Cup for the United States been a major sporting event. The 34th America’s Cup in September 2013. We’ll hope for the win, but we’ll will be sailed in the fastest boats ever, on the first- take the $1 billion.

WHERE’S THE PARTY? 334,000 avg. peak day spectators Location

Spectators

SF viewing with entertainment program Justin Herman Plaza, Union Square, Civic Center, Marina Green, Piers 27 & 29, Crissy Field

202,000

SF viewing without program Presidio, Fort Mason to Aquatic Park, Fisherman’s Wharf, NE Embarcadero, Other

90,000

Outside SF Islands (Treasure, Alcatraz, Angel), Fort Baker / Marin Headlands, Cavallo Point, Sausalito, Tiburon / Belvedere

24,000 AECOM

types of people from construction workers to environmental engineers to organic farmers and artisan manufacturers.” The lion’s share of that spending will be in San Francisco, but businesses in all nearby counties will likely benefit, particularly those in the hospitality and marine industries, and those that supply food, gift products, and engineering and consulting services in San Francisco. The study’s author is well-known bay area economist Jon Haveman. He prepared the analysis for the

Economic Institute while he was at Beacon Economics and is now at the Institute. Many details of the 34th America’s Cup were not known when he wrote the study, particularly four variables that could change the total impact: America’s Cup related regattas in 2012 and early 2013, additional races among U.S. teams to select a final defender, spectator tallies, and numbers of private spectator boats. Since then, the America’s Cup Event Authority, the commercial arm of the 34th America’s Cup, incorporated and moved into 160 Pacific Avenue, San Francisco. The America’s Cup Organizing Committee, chaired by Buell and headed by former city project manager Kyri McClellan, have taken up shop at Pier 1 as they continue to raise funds to support the running of the events. Key decisions have been made – the course area, the type of boat and spending rules, the specific piers to be rehabilitated and used for race operations, and a decision to bring two America’s Cup World Series races to San Francisco next summer in advance of the 2013 events. Consulting company AECOM predicts Giants-level attendance for America’s Cup World Series racing in San Francisco next August and September. That’s up to 50,000 people on weekends. But for the big races in 2013, their predictions show weekend attendance growing from 100,000 to upwards of 500,000 for the deciding races. (For comparison, SFPD estimates

$1.9 billion 2011 ACEA / GILLES MARTIN-RAGET

2011 ACEA / GILLES MARTIN-RAGET

ne billion of anything is a big number. When you’re talking dollars, and those dollars flow into San Francisco over the course of 24 months, it’s like adding three major sports franchises all at the same time. The San Francisco Giants, San Francisco 49ers, and Oakland Raiders bring in $200 million to $250 million per year. Give or take $100 million or so, holding the 34th America’s Cup in San Francisco is comparable to two years operations of those three teams. Or hosting three successive Super Bowls. Big numbers. The Cup is the world’s third-largest sporting competition after the Olympics and soccer’s World Cup. No wonder business leaders from Mark Buell to Chuck Schwab to Kenneth McNeeley enthusiastically created the San Francisco America’s Cup Organizing Committee with the goal of winning the opportunity to host the America’s Cup. In July 2010, five months after Larry Ellison and his team won the America’s Cup in Valencia, Spain, the Bay Area Council Economic Institute released a formal estimate on the economic impact of holding the America’s Cup Finals on San Francisco Bay: about $800 million of direct spending with a $1.4 billion total bay area impact ($1.9 billion nationally). The detailed report breaks out nine different agents of spending and impact, but they boil down to three categories: running the America’s Cup (54% of spending), people coming to watch the racing (34%), and building out the necessary infrastructure (12%). Money is spent, people are hired, taxes are generated. It’s needed stimulus. Last month Fed chairman Ben Bernanke said that economic recovery is “close to faltering” and the Bay Area Council’s quarterly business confidence index plunged 11 points to 51 out of 100, the worst quarterly decline since 2002. “We’ve got to start putting people back to work and get our economy growing again,” said Lt. Governor Gavin Newsom last week for this story. “The America’s Cup is like a billion dollar jobs program right here in California. It’s one that isn’t coming out of the U.S. taxpayer, and it’s one that’s going to help all

GILLES MARTIN-RAGET

Global reach and multi-day competition make the America’s Cup the world’s third-largest sporting event. Estimated gross impact on GDP (US$):

Boats (2,280 of ‘em) Recreational, charter, super yachts

18,000 Source: AECOM

Spectators will have many vantage points, from organized events with giant TV screens, to the bay’s waterfront, to charter boats with access to the teams.


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34TH AMERICA’S CUP

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SF BUSINESS TIMES | NOVEMBER 4-11, 2011

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

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34TH AMERICA’S CUP

Business Connects with the Cup The race is right outside our door – and that’s what people are excited about. Hosting events, people staying at hotels, eating at restaurants, tours & attractions. They’ll come for the races, and enjoy themselves here before and after.

Connect with buyers Find suppliers Highlighting Bay Area businesses in:

Kevin Carroll

Bob MacIntosh President & CEO, Pier 39

“Hosting the America’s Cup is a great opportunity to showcase our community and welcome visitors to the city where blue jeans were born. With the race course in our backyard, it’s the perfect chance to not only see an exciting sporting event, but also enjoy our world-class restaurants and one-of-a-kind shopping experiences.” Jill Nash Chief Communications Officer and Senior Vice President of Corporate Affairs, Levi Strauss & Co.

Businesses like the more than 800 in the Fisherman’s Wharf district should see big economic benefits from America’s Cup events.

O BY PAUL V. OLIVA

n October 13, the Sa n Fra ncisco Chamber of Commerce held an America’s Cup business engagement forum in their boardroom. It was swiftly oversubscribed, with more than 120 businesses. That’s typical these days when an event uses the words “America’s Cup” and “business opportunity” in the same sentence. “We all keep hearing about the enormous economic benefits that are expected from the America’s Cup,” says Jim Lazarus, vice president of public policy for the San Francisco Chamber, former mayoral chief of staff, and general go-to guy for getting things done in SF. “As the excitement builds, more and more businesses are asking how they can get in on the action. This is going to transform the economy, and local businesses want to be front and center when the teams, event organizers and spectators start shopping for services.” To facilitate connections, the America’s Cup Event Authority launched America’s Cup Business Connect, a web-based business portal that will serve as a one-stop shop for local companies to compete for America’s Cup business. Event organizers will also use the portal to announce business and contracting opportunities and for businesses to engage. A separate jobs board lists employ-

ment opportunities with the event organizers. Jennifer Matz, director of the San Francisco Office of Economic and Workforce Development (OEWD), is glad to have AC Business Connect. Matz says businesses need to start now to figure out how to capitalize on the increased economic activity, how to activate customers, how to advertise. “It’s not like a shipyard, or Candlestick Park, where you have one contract, one decision-maker. It’s lots of opportunities, and we’re figuring out how we help you make your pitch.” For instance, she says, there are 250 local manufacturing businesses that belong to an industry group called SFMade. If an America’s Cup team needs custom AC belts, they can find a local supplier. The OEWD project director for the America’s Cup Michael Martin notes a further benefit. “We hope AC Business Connect is also part of a legacy of interactive tools and web apps to explore the city beyond the America’s Cup. It’s a double bank-shot.” Time will tell how well it works, but the initiative’s off to a strong start. More than 150 businesses registered within the first week. And according to Lazarus, following the Chamber’s business engagement event, many members said they planned to register. SFMade, Pier 39, Fisherman’s Wharf, and other business groups are also linking their companies to the site. To connect, go to www.americascup. com/connect.

DODOCASE

The America’s Cup has attractive demographics for our businesses... We’re passing along AC Business Connect to all of our shops, restaurants and attractions in hopes that they will register.

GUILAIN GRENIER

Executive Director, Fisherman’s Wharf Community Benefit District

DodoCase is a thriving San Francisco manufacturer.

SFMade: Hands-on in the Bay Area Manufacturing. In the Bay Area. Talking about its demise has been a favorite topic in a Web 2.0, design-ithere-make-it-there era. But really what we do here is innovate, so it’s natural that innovative manufacturing should flourish here – despite real estate costs and other challenges. Enter SFMade. GOAL: Build and support a vibrant manufacturing sector in San Francisco. Of course, the buzzwords are familiar: sustainable, locally-made, entrepreneurship, innovation, diverse employment MEMBERS: 243 headquartered & manufacturing in San Francisco OFFERS: Industry-specific education, networking opportunities, local resources, workforce issues and job training, public awareness, infrastructure and policy engagement EXECUTIVE DIRECTOR: Kate Sofis CUP VISION: Drive spending to local manufacturers MORE INFO: sfmade.org

The America’s Cup AC Business connect web site provides an online registration form to let businesses sign on to the Cup’s listing of merchants and service suppliers

Accommodation Boating Catering Entertainment Events Hospitality Professional Services

Real Estate Restaurants Retail Sailing Tourism Transportation

Sign up at sf.americascup.com/business

Be on board when AC Business Connect goes live!

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34TH AMERICA’S CUP

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Bay area innovation augments America’s Cup reality

$315 billion $141 billion Forecast of 2012 global spending on large sporting events

$422 billion Estimated size of entire U.S. sporting event and goods industry in 2011 2011 ACEA / RICARDO PINTO

$27.8 billion Estimated annual company spending for U.S. sports advertising in 2011 Sources: Pricewaterhousecoopers, NPD Group, Inc.; Plunkett Research, Ltd.

No replays needed: Umpires use LiveLine precision to call penalties.

weapon. Without augmentation, the camera can’t begin to show that. Honey observes, “Most sports have been conservative in their use of technology to manage the game. America’s Cup is moving aggressively to incorporate technology into on-the-water management and broadcast, and it made the decision right up front to give away the data. There is huge potential in that for developers to come up with new ways to view the racing, new ways to analyze it or play games with it – things

LiveLine does what was previously impossible: overlay geo-positioned lines and data streams at 2 cm accuracy on live racecourse video shot from rapidly moving helicopter and water-based platforms. The result: understandable action for viewers and precise data for umpires.

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we would never think of on our own. “In Major League Baseball we tracked every pitch for years before they opened up the data,” Honey says, “but when they did, there was an explosion of interest. We had PhD physicists analyzing pitches on their blog sites. You never know what’s coming next when you open up the data.” Historically speaking, the development community in and around San Francisco has never been shy about exploiting opportunity. Jay Nath, Director of Innovation for the city’s Depart-

Clockwise from above: Helicopterbased aerial video brings views of the race from above; Flying on the Water simulator gives fans live-action race view; Water-based stabilized HD filming ...with precision control.

ment of Technology, says, “wholeheartedly, yes” to the proposition that the tech aspects of America’s Cup will fall on fertile ground. “We are uniquely positioned,” he says. “We have a great community of technologists, and as a city we have had great success working with them to create new services. The America’s Cup will receive the same response. Their focus on partnering with our technology community is innovative in itself. Not many organizations think this way, and not many recognize the value of open innovation, open data models. Their investment in data sharing is noteworthy, and doing it in a way that we hope will generate new solutions and maybe even activate our academic and artist communities as well.” San Francisco in 2009 began putting its civic data into the public domain, and developers since have produced more than 60 new applications including Android apps and iPhone apps, plus websites, academic analysis, even artwork. “Sports often sell their data,” Nath says. “There is a clear ROI in it. But we’ve seen that liberating data, putting it into the public domain, generates this huge flowering, even

QHELICOPTERS

QMEDIA BOATS

Q LAND-BASED CAMERAS

Three helicopters use General Dynamics

Four specially designed high

Geo-positioned cameras shoot and transmit additional

stabilized camera spheres and KVH fiber

speed media boats transmit stabi-

video from land

optic navigation sensors to transmit geo-

lized GPS-tagged video

Q COURSE MARKS AND START/FINISH

positioned video

2011 ACEA / RICARDO PINTO

A

Worldwide sales of sports gear, active apparel, and athletic footwear in 2010

THE IMPOSSIBLE LIVELINE

34TH AMERICA’S CUP

PHOTOS: GILLES MARTIN-RAGET

Sporting industry is big business

BY KIMBALL LIVINGSTON

vision does, which includes inserting the yellow first-down line in televised football. The sailing version, LiveLine, inserts lines on the water, when they’re wanted, to help sportscasters share the story of who’s ahead, or to illustrate more complicated matters too. If there is a fast-flowing current, say, then the racetrack is a dynamic and changing surface underneath the boats, and the racecrews have to allow for the current or perhaps even use it as a

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BY THE NUMBERS

Race data will be open for tech developers

nyone with an ear open to America’s Cup buzz will already have a fix on the “compelling backgrounds, reliable wind, natural amphitheater” of San Francisco Bay. What’s harder to fit into a headline is the business case for why a unique sporting event needs and deserves a place in this center of innovation, Northern California. Beyond the metrics that tell us the America’s Cup is huge, this strange-tomost-of-us event with the passionate following and the catchy name has a plan to reinvent itself through technology. This has to be the place. For the tech sector, developers especially, what matters is that America’s Cup will be Open Source, Open Data, Open Innovation from the get-go. Stan Honey is director of technology for the America’s Cup. He also is cofounder of two technology companies in Silicon Valley, including Sportvision, the leader in developing sports graphics for television broadcast. “Augmented reality” – that sexy term circling the tech and gadget world – is what Sport-

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

companies being formed around the data. On the corporate side there is no motive to share data other than an understanding of the long-term benefits. America’s Cup is showing real leadership by investing to stream open data in real time. What are people going to do with the data? The beauty is, we don’t know.” The city’s project director for the America’s Cup, Michael Martin, sees the full range of what is being put together. “We are indisputably well situated to do things like link businesses in the neighborhoods to these waterfront events. Perhaps we’ll find ways to educate and inform people who come to the event, and do it in a way that can be carried over to future events, and do that in a way that benefits the tourism sector for the long run.” So now we come to the bottom line of a nice, upbeat story, with the choir singing about good things that can and should and probably will happen. So far so good. But don’t expect any honey-coating from our friend Stan. “What’s interesting about the America’s Cup,” he says, “is the urgency. We have a sport that needs more visibility. We have an America’s Cup in 2013. We don’t have much time.”

GPS is used to set and adjust position of boats marking turning points in the course, establishing course size and transmitting location data to LiveLine

QCOURSE BOUNDARIES

and a host of sensors (boatspeed, windspeed, boat orienta-

A web-based geo mapping system sets course bound-

tion) stream to the LiveLine data center via satellite

aries for LiveLine and umpire systems

WESLEY WERNIMONT

QBOAT DATA GPS positioning, four onboard cameras, 14 microphones,


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34TH AMERICA’S CUP

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

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SF BUSINESS TIMES | NOVEMBER 4-11, 2011

34TH AMERICA’S CUP

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YouTube shakes up content, broadcasting

You’re looking through the iPad camera as if it’s a window. You can walk around the boat, stand over it, peer into it, get as close as you like. You can move the sails, or even watch an entire race in 3D.

Y

BY PAUL V. OLIVA

Stunning innovations from open data Collaborative technology lets America’s Cup change the experience of race viewing and management

I

BY PAUL V. OLIVA

PHOTOS / 2011 ACEA / GILLES MARTIN-RAGET

YouTube viewers can choose from heart-pounding live footage onboard with a team, a graphical overview or an eagle’s eye view, and different commentary tracks. The content can be streamed live to a laptop and can be viewed from any device.

PHOTOS / 2011 ACEA / GILLES MARTIN-RAGET

an Taylor physically sets a patterned piece of paper on his desk and flicks on his iPad. In an instant, a realistically detailed 3D image of an America’s Cup AC45 catamaran is sitting Augmented reality right there on his desk where the paper was. systems add text, You’re looking through the iPad camera as if it’s a wingraphics, and data onto a live image. LiveLine dow. Everything else on the desk is still there. You can data is accessible for app walk around the boat, stand over it, peer into it, get as developers to create new close as you like. You can move the sails, or even watch views of racing.. an entire race between boats in 3D as if the table in front of you is San Francisco Bay. As long as you continue to point your iPad at the paper and look at the screen, this window on an alternate reality is seamless. Taylor is managing director of Animation Research Ltd. (ARL). ARL’s sports division developed and runs Virtual Eye, the 3D graphics program that shows America’s Cup and other racing in a virtual reality enviout and get to the edge of what’s ronment. What he has just shown is a proof-of-concept demo possible. Stan [Honey] is king of the powered by San Diego-based Qualcomm’s augmented reality geeks and king of sailors, it’s the software development kit launched a year ago for Android best possible combination.” smartphones. This interplay of local technologies What changes the game is marrying Qualcomm’s augmented driving change locally and globally reality viewer and ARL’s 3D modeling with the infinitely high is not a surprise to Jim Wunderman degree of accuracy of data coming from the America’s Cup who heads the Bay Area Council. LiveLine system. When boats collide in the real world, the little “The Bay Area succeeds because we 3D versions collide right there on the table. thrive on taking risks, on compet“Augmented reality has been around for awhile – point your ing, on winning. We’re incredibly inphone at the Eiffel Tower and it tells you how tall it is – but tellectually curious, which drives us this is the most exciting development in 25 years of working on continuously to do things better, to this,” says Taylor. “It is the next major breakthrough in telling find new solutions to old problems. the story of sailing, but it applies right across the board to any I think this region is an enormous other activity or industry.” resource for the America’s Cup as it By developing a system of extremely detailed and accurate racecourse data, the looks to adopt transformational new technologies and approaches for reaching an America’s Cup was able to change not only race viewing, but also race management, ever-larger audience.” rules, analysis, even umpiring. Making that data available as a free open source Safe to say some far-reaching change will come from all this, and certainly in time storehouse, Stan Honey and other America’s Cup executives hope that it will seed for America’s Cup finals in 2013. all sorts of innovations. In the meantime, Taylor’s getting ready to fly to San Diego for the America’s Cup Michael Gough, vice president for experience design at Adobe in San Francisco, World Series next week. If you see him pointing a phone at a boat, he’s not crazy. is passionate about actively collaborating with partners and customers to explore He’s just using more point-and-view augmented reality to check the names of this open door. “What we do is innovate, and Adobe is platform agnostic. In a place crew aboard and how fast the boat is going. And that’s something you’ll be able like San Francisco, with an event like the America’s Cup, it is amazing just to geek to do yourself, soon enough.

ouTube – the source of the talking dog, Charlie bit my finger, Rebecca Black’s Friday, and other user-generated content – is going broadcast. YouTube’s newest evolution is dramatically changing America’s Cup viewing, but it may change more than that. Last year, YouTube’s viewing surpassed the prime time viewing of all three U.S. networks combined, with more than two billion views per day. Today, the site has 300 million users, and 100 million unique visitors every month, worldwide. One of the largest opportunities for leveraging YouTube’s audience is in sports, where there’s lots of content that never makes it to TV, and certainly not to global distribution. Claude Ruibal heads global sports content for YouTube, which is owned by Google. Following a partnership announced with the America’s Cup Event Authority in August, Ruibal and the team of Gary Lovejoy (head of America’s Cup Television) have made YouTube the go-to source for the richest America’s Cup viewing experience. The vision was to put the viewer in the driver’s seat of the intense experience of Cup sailing, and Lovejoy’s production is creating heart-pounding images that are drawing in crowds online and off. The result: YouTube viewers can choose from live footage onboard with a team, a graphical overview or an eagle’s eye view. In addition, viewers can select different audio tracks, either expert sailing or standard sports commentary. The content can be streamed live to a laptop and archives can be viewed from any device. Viewers increasingly watch a multitude of devices from mobile phones to iPads to game consoles and internet TV, so Ruibal thinks the partnership will be a game-changer. Distribution is global. It is multidevice. It gives sports content producers an immediate worldwide audience, and it lets users have it their way. With pay-per-view as an option, Ruibal says YouTube can also help sports leagues increase monetization. That’s an attractive proposition. “No question, we want to have a competitive offering,” says Ruibal, “and I think we will get there.” So the next phase of the America’s Cup partnership is focused on product development, and revolution is in the air. As America’s Cup Event Authority CEO Craig Thompson said in August, the YouTube partnership “will not just break new ground in sailing, but in international sport. And the revolution is just beginning as we work together to enhance the viewing experience with more special features from YouTube” leading into 2013.

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34TH AMERICA’S CUP

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More 2012 & 2013 dates to be announced

America’s Cup World Series 2011-2012 Cascais, Portugal . . . . . . . . . . . . . . . . . . . . . . . . Aug. 6-14, 2011

A replica of America, the Yankee schooner that in 1851 won the British 100-Guinea race... a race that would thereafter be named for her: The America’s Cup.

T

Plymouth, UK. . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 10-18, 2011 San Diego. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 12-20, 2011 Naples, Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April 7-15, 2012 Venice, Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 12-20, 2012

BY KIMBALL LIVINGSTON

Newport, RI. . . . . . . . . . . . . . . . . . . . . . . . June 23-July 1, 2012

2011 ACEA / GILLES MARTIN-RAGET

San Francisco

11-19, 2012

San Francisco . . . . . . . . . . . . . . . . . . Aug. 27- Sept. 2, 2012 Venice, Italy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April 2013 Naples, Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 11-19, 2013

Louis Vuitton Cup - Challenger Series

Above: America’s Cup professional crews wear helmets.

San Francisco . . . . . . . . . . . . July 4–Sept. 1, 2013

America’s Cup Match (Finals)

Center: The U.S. entry in the 34th America’s Cup World Series.

San Francisco . . . . . . . . . . . . . . . . . . . . . Sept. 7-22, 2013

Far right: The wing design of modern America’s Cup racing is apparent.

The changes through the years have been dramatic. The Cup has now been held by Australia, New Zealand, and Switzerland, in addition to the United States. But 29 of 33 matches for the America’s Cup have been held in the USA. Today’s sailing crews are professional athletes of the first order, trained to a level equal to the training in any sport, and they aim to build a self-sustaining, professional international circuit based upon the America’s Cup. They are betting on San Francisco as the center. They’re betting on us.

. . . . . . . . . . . . . . . . . . . . . . . . . . Aug.

2011 ACEA / GILLES MARTIN-RAGET

most famous phrase in sports. Did we mention that the victory “electrified the nation?” Because— The owners of the Yankee schooner had the audacity to name her... America. The trophy that she won became known as the America’s Cup. It is part of our national heritage. Soon the world was trying to take it away, but one hopeful after another failed, and the America’s Cup stayed put for 132 years, the longest winning streak in sports.

America’s Cup World Series 2012-2013

2011 ACEA / GILLES MARTIN-RAGET

he oldest international competition in any sport – the America’s Cup – was born in the age of wooden ships, before even the modern Olympics. Today it is the sporting world’s most avid adopter of new technology. It is a billion-dollar industry that grew from an unlikely moment in 1851, when a Yankee schooner went to England to race, and electrified the nation. Imagine the audacity. It was the great age of sail. Britain ruled an empire because Britannia ruled the waves. Newspapers in New York City ran editorials pleading with the owners of the Yankee schooner, don’t go, don’t embarrass us. And when it happened – when the Yankee schooner raced around the Isle of Wight and beat the best 15 boats Her Majesty’s subjects could put up – that was a moment to remember. It’s said that Queen Victoria herself awaited the fleet’s return. When the lead boat appeared, closing on the finish all alone, the Lord Admiral scanned the horizon for boats in chase and informed the Queen, “Madame, there is no second,” giving us the

160 YEARS OF COMPETITION 1851

1870

The schooner Britian’s CamAmerica wins bria becomes the 100 Pounds the first chalCup in a race lenger to try, and around the Isle fail, to win away of Wight, beatthe America’s ing the best of Cup. the Victorian vessels.

13

Key dates

America’s What? Race is a source of national pride, with roots in the great age of sail

34TH AMERICA’S CUP

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12

1899

1901

1930

1934

1937

1958

1962

1977

1983

1987

Thomas Lipton challenged five times, came close once, and never sailed on his own boats. He was, however, knighted. He became a beloved public figure, and as a pioneer of marketing he sold a lot of tea.

The Cup is defended by Reliance, at 144 feet the largest single-masted boat of the 20th century.

“Modern” J-class boats race for the Cup for the first time.

Harold S. Vanderbilt steered his own yacht in 1934. His Rainbow had a faster boat to beat, but the Cup stayed here.

With the first synthetic-cloth sail, the tanktested Ranger defends the Cup in the final J-boat match.

Racing is revived in the 12-Meter class, about 60-feet long; Britain’s Sceptre is embarrassingly slow.

Australia’s Gretel, the first challenger from outside Britain, gives the defenders a scare. Emil “Bus” Mosbacher was a businessman skippering the defense with an all-amateur crew.

Ted Turner was still grappling with the birth pains of cable TV when he won the Cup.

The “wingAmerica’s only keeled wonder,” celebrity sailor, Australia II, wins famous for losthe Cup and ing the Cup, breaks AmerDennis Conner ica’s 132-year wins it back winning streak. from Australia. He comes home to a ticker tape parade down 5th Avenue.

1995

2003

2007

New Zealand wins the Cup with Olympic gold medalist skipper Russell Coutts, now CEO of ORACLE Racing, at the helm.

Switzerland Alinghi defends wins the Cup for Switzerland. and chooses to A record 11 defend in Valen- challengers cia, Spain. make the scene.

2010

2011

2013

ORACLE Racing’s giant trimaran defeats Alinghi’s giant catamaran.

A fleet of wing-powered catamarans is launched and the new AC World Series tour begins. America’s Cup crews—now fully professional— begin wearing helmets.

An international field of challengers will compete for the opportunity to take on ORACLE Racing on San Francisco Bay.

Reliance Ted Turner

Oracle’s trimaran brings the

in Sports Thomas Lipton

Harold S. Vanderbilt on

Illustrated,

the cover of Time, 1934.

1977

Cup back home in 2010 Dennis Conner

PHOTOS: WIKIMEDIA COMMONS (4), TIME MAGAZINE, SPORTS ILLUSTRATED, ORACLE RACING; ACEA / GILLES MARTIN-RAGET


SF BUSINESS TIMES | NOVEMBER 4-11, 2011

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As the oldest international sporting competition, the America’s Cup brings international focus, visitors, partnerships, and business connections to a city that welcomes them with its worldclass diversity and global linkages. With a two-year, globe-girdling America’s Cup World Series and unprecedented broadcast coverage, the cumulative audience is anticipated at over 500 million people. The location couldn’t be better for this international contest, said Lt. Governor Gavin Newsom earlier this year. “You can travel the world in San Francisco. It’s only a 47-1/2 square mile city. The city would not have been conceived had it not been for people that took risks and came from around the world for riches and new beginnings.�

NEXT RACE: NOV. 12-20, SAN DIEGO. Watch Comcast Sports California live Nov. 16-20 or via www.americascup.com THE BOAT

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an Francisco is more than a tourist tax revenues. destination. It is a gateway for tourWhatâ&#x20AC;&#x2122;s more, hundreds of millions of people ism throughout California and the worldwide will tune into Americaâ&#x20AC;&#x2122;s Cup TV through U.S.. Thatâ&#x20AC;&#x2122;s what makes the follow-on effects of broadcast partners and YouTube, a global stage Americaâ&#x20AC;&#x2122;s Cup tourism so significant. for enticing images of San Francisco. Thatâ&#x20AC;&#x2122;s leverThe City estimates Americaâ&#x20AC;&#x2122;s Cup visitor age for tourism, short-term and long-term. spending will top $400 million. Thatâ&#x20AC;&#x2122;s a big num- â&#x20AC;&#x153;Tourists spend $8.4 billion here in a typical ber, but itâ&#x20AC;&#x2122;s not all San Francisco. The California year,â&#x20AC;? says Matt Stiker, executive vice president Travel and Tourism Commission estimates 30% and chief marketing officer, San Francisco Travel of visitors to San Francisco visit other destina- Association. He notes that San Francisco drew tions. Nearby counties estimate that, per person, 16 million visitors in 2010, â&#x20AC;&#x153;and many of them per day, these visitors spend on average from explore outward. The Wine Country, Big Sur, $135 on a day trip up to $400 for overnight. Yosemite, even Los Angeles are big attractions.â&#x20AC;? Bottom line, the Americaâ&#x20AC;&#x2122;s Cup will cause â&#x20AC;&#x153;For the international market, especially, San more visitors to spend their time here despite Francisco is a hub,â&#x20AC;? Stiker says. â&#x20AC;&#x153;People abroad tough competition from other destinations in look at California, from the sea to the mountains, the U.S. and abroad. That has a strong impact and thatâ&#x20AC;&#x2122;s how they think of San Francisco, as a on the regional economy, and on state and local gateway.â&#x20AC;?

2011 ACEA / GILLES MARTIN-RAGET

  

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FRANCE

Seven countries, eight teams, nine boats. The AC World Series hits port cities around the globe, and all courses lead to San Francisco.

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CHINA

The Best Sailors. The Fastest Boats.

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

FRANCE

34TH AMERICAâ&#x20AC;&#x2122;S CUP

KOREA

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34TH AMERICA’S CUP

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

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SF BUSINESS TIMES | NOVEMBER 4-11, 2011

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34TH AMERICA’S CUP

Making sustainability sustainable

“With the amount of thought that’s gone

Gary Bauer, Founder and CEO, Bauer’s Intelligent Transportation

America’s Cup to leave in place systems that enrich communities

into the People Plan, a

S

legacy of the America’s

Transforming transportation

BY PAUL V. OLIVA AND KIMBALL LIVINGSTON

Cup is that we will and after in terms of moving people, traffic, and transit.” Kevin Carroll, Executive director, Fisherman’s Wharf Community Benefit District

A plan for moving people

2011 ACEA/RICARDO PINTO

ISTOCKPHOTO

Transportation cuts across the opportunities and challenges for a spectator- and business-friendly America’s Cup. Here’s a quick guide to the City of San Francisco’s “People Plan.” Goal: Package of transportation options to reliably transport racing teams, event personnel, event sponsors, media, and spectators, while satisfying the daily transportation needs of residents, businesses and visitors not associated with the races. Principles: Public safety, resource efficiency, environmental sustainability, strategic adaptability and positive legacy. Modes: Favor walking, bicycling, and transit over private automobile, plus focus on communication and information tools that allow large numbers of users to make efficient individual decisions Legacy concept: Stimulates interest in potential capital projects, operational strategies, and pilot concepts with longterm benefits to the region. Race days in 2013: 45 race days, spread over 85 days Average peak weekday visitors: 50,000 Maximum peak weekend visitors: 400,000-500,000 “The duration is a challenge, but it’s not every day and it’s not 9 a.m. to 7 p.m. every day. We want to be clear that SF is not shutting down to run this race. We’re using analysis of Fleet Week and the America’s Cup World Series to refine this plan,” said Jennifer Matz, director, San Francisco Office of Economic and Workforce Development.

H

ow do you spell entrepreneur? Try “Gary Bauer.” A windowcleaning business that Bauer started in high school in Novato grew into a landscaping business that took off while he was still in college. “I stacked my classes so I’d have enough working days in the week,” he says. At the same time he bought a Cadillac limousine, used, and suddenly had a nighttime business too, one that has grown into Bauer’s Intelligent Transportation, with a fleet of more than 150 luxury, fuel-efficient (and steadily-improving) vehicles headquartered on the Embarcadero, soon to expand into Southern California. Some 97 percent of Bauer’s miles are driven with alternative fuels, and he is not sitting back, waiting for other people to invent new technologies. Bauer owns the patent on an aftermarket solar system that air-conditions buses with their motors switched off. He is a partner in the development of a 125 mile-capable electric shuttle bus that he says “will go on-route in a month or so.” He is partnered in developing a bolt-on hydrogen system that promises improvements in fuel burn,

BUSINESS COUNCIL FOR CLIMATE CHANGE

Six sustainable plan elements

benefit before, during

ISTOCKPHOTO

ustainability. It’s one of those buzzwords moving from eco-activism to the boardroom. It sounds commonsense good. Or scary complex. Like “triple bottom line.” For a sporting event, sustainability is just about changing lights to lower energy and offering recycling bins, right? Not here, not now, not for an event as far-reaching, historic, and determinedly as transformative as the 34th America’s Cup. The City of San Francisco, America’s Cup Event Authority, and dozens of environmental groups have embarked on a massive experiment in sustainability that, if successful, will redefine how sustainable a sporting event can be. It’s sustainability in the greatest sense of the word: optimizing the social, economic and environmental impacts of delivering the 34th America’s Cup, to enrich the communities where racing takes place, and to protect and support natural ecosystems. But that ambitious goal will have many businesspeople The City of San Francisco envisions diverse non-automobile connections to events. wondering, how feasible? And what does it mean for bay area business? David Lewis, Executive Director of Save the Bay in the 50th year of that bellwether organization, has an answer for both. “We’ve brought together the brightest people from the Bay The draft America’s Cup Area and beyond to develop a range of ideas about how to sustainability plan has five key make this America’s Cup a sustainable event, how to reduce themes, with a sixth cross-cutting emissions, reduce trash, and create infrastructure of value,” element – transportation. says Lewis. “It’s about operating in a way that leaves the Bay Energy and Emissions: Optimize better than it was before, leaving the waterfront more vibrant use of energy and minimize and accessible, leaving the economy stronger. “ associated air emissions through The October 17 preliminary draft of the Sustainability Plan, efficient planning and technological produced in tandem by the City and the America’s Cup Event innovation. Authority, runs 38 pages (see sidebar for key themes). Only Resource Efficiency: Maximize a dedicated few will study it through. Anyone who does will Youth engagement includes environmental stewardship natural resource and land use realize that it is not window dressing, and many aspects will and the science of sailing efficiency, minimize waste, and either create business opportunities or reduce potential pain sustainably source materials and points for business. It also overlaps with the city’s People Plan, which is really products. For instance, the inclusion component specifically identi- about transportation: discouraging personal automobiles Natural Habitats and Wildlife: fies small business contracting and workforce development. while encouraging public transportation, biking, walking and Protect and support biodiversity, In the energy and emissions section, clean tech companies the use of pedicabs to get from hotspots on the Embarcardehabitats and wildlife. and contractors should explore the carbon offset and renew- ro to hotspots along Crissy Field and the Marina Green, where Inclusion: Provide an inclusive and able energy components. Sustainability principles mean local racing will be focused. welcoming experience for event organic and sustainable food producers should see a distinct This goes beyond CEQA – the California Environmental Qualspectators and the event workforce, uptick in demand. And of course, there’s habitat protection. ity Act that has in equal measures earned high marks for enand maximize legacy benefits for hancing quality of life and caused headaches for development. the City’s residents and businesses. But early indications from both business and environmental Engagement: Raise sustainability groups are that it is a win for development, a win for regional awareness, foster pro-environmental quality of life, and a win for the America’s Cup. behavior and sustainable lifestyles. Sounds suspiciously like a triple bottom line, and you’ll know Transportation: Integrate safe, it’s true if you see all the permits completed early next year. reliable, energy efficient, clean Lewis acknowledges it seems complex, because the probtransportation into all aspects of lems are more complex than ever. “There are more of us on event operation while ensuring the planet. There are more of us living in the Bay Area. There smooth transit for commuters, are more interfaces between our economic activity and the business and residents. environment.” But to Lewis that doesn’t mean saying no to growth. “So we need to be smarter about how we grow,” he Events will feature local and organic produce. says, “how we take care of our community.”

17

Bauer is bullish on conservation: “Whether you believe in ozone depletion or not, saving fuel and cutting emissions is the right thing to do,” he says.

emissions and horsepower, and that’s in San Francisco, but there’s pain in not the whole list. Bauer’s fleet employs that. After 13 years on Pier 27, soon every trick in the book, from biodiesel to be taken over by the event, “we’ve to compressed natural gas. It’s a big campaigned ourselves right out of our difference on a big scale. In one recent office,” he says. “We’d stay if we could, weekend , he says, “We moved 85,000 but what’s happening with the city is people. Whether you believe in ozone terrific.” No doubt this intelligent transdepletion or not, saving fuel and cut- porter will do all right from the Cup ting emissions is the right thing to do.” – there are millions of spectators to Bauer is bullish on America’s Cup move.

Andrew Watters, Partner, CabrioTaxi Co-owner, Davis PediCab

The human-powered solution

I

n San Francisco’s growing pedi-cab – a.k.a. bicycle rickshaw – industry, transit is 100 percent human-powered, can go straight door-to-door, and keeps moving even when automotive traffic is stopped. As a competitive sailor turned pedicab entrepreneur, Andrew Watters expects to get a double-serving of fun when the America’s Cup comes to San Francisco. Watters’ companies operate pedi-cabs in San Francisco along the waterfront and Mission District under the CabrioTaxi name, as well as through Davis PediCab in Davis, Calif. Watters and his partners envision going from 10 pedi-cabs to 100 over the next couple years in San Francisco. There are currently fewer than 50 in San Francisco, operated by CabrioTaxi and two other companies.

“We hope to prove that we’re the best option for people to get around and to see the event and create a positive legacy for the city.” While pedi-cabs have seemed something of a tourist curiosity, Watters lays out the plain and simple case for human-powered transport, and America’s Cup is a key opportunity. “There’s going to be a focus on pedestrians and bicycles. It’s going to be incredibly hard to have a car or a cab. We’re going to be able to go through the traffic and provide faster response times and transportation than any other service will, especially during high demand times like the America’s Cup will be.” He points out that their bikes

can access areas that normal transit can’t, getting right onto piers and up to storefronts, and offer unparalleled views and ability to see the sights at a human pace. “We’re using the America’s Cup People Plan as a platform to be able to launch and expand routes into areas like Crissy Field and the Fort Mason Marina Green area, he says. “We hope to prove that we’re the best option for people to get around and to see the event and create a positive legacy for the city.”


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34TH AMERICA’S CUP

SF BUSINESS TIMES | NOVEMBER 4-11, 2011

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PARTNERS FROM THE SIERRA TO THE SEAS

“It’s one of our most important management decisions, and

America’s Cup Healthy Ocean Project partners lend global scope to the world’s largest campaign for healthy oceans.

an example for all sports.”

Mission Blue– A global coalition of partners spearheaded by the Sylvia Earle Alliance all aimed at increasing ocean protection and restoring the health of the ocean.

2011 ACEA/RICARDO PINTO

Sailors for the Sea– Official sustainability partner of the 34th America’s Cup and certifying body for the Clean Regattas Program.

AC Healthy Ocean Project takes sport to new horizons

T

One World One Ocean– Uses the power of film, television, new media and grassroots education to change the way people see and value the ocean — and motivate action to restore it.

BY KIMBALL LIVINGSTON AND PAUL V. OLIVA

SANDER VAN DER BORCH

he Transpacific Race, from Los Angeles to Honolulu, and the alternate year Pacific Cup from San Francisco to Oahu, is more than a sailor’s rite of passage. There are so many CEOs and COOs and VPs of business development aboard those raceboats that it molds perceptions in the business world. A shocking number of these sailors came ashore at the end of the Transpac this year talking about how much trash they had seen in the ocean. And that has made the health of the oceans a nonstop conversation where business and the sailing world intersect. Sailors are aware of plastics and toxins washing down from city streets to storm drains and then to San Francisco Bay and out to sea. But not many opportunities come along to bring that conversation to the forefront, and keep it there. That opportunity arrived on Oct. 17, when, coinciding with release of its draft sustainability plan, the America’s Cup Event Authority launched the AC Healthy Oceans Project at Aquarium of the Bay in collaboration with six partner organizations that bring awesome local and global scope and credibility. Tom Huston, COO of the Event Authority, declared no shortage of ambition for America’s Cup activities to get cleaner and cleaner and cleaner, with visible deliverables. “It’s one of our most important management decisions, and an example for all sports.” Some of the deliverables – such as beach cleanups – are traditional points of mobilization on a bigger scale. But others are downright surprising, such as a plan to use half the fuel of past regattas. The effort is touted as the world’s largest communication outreach program for ocean health. Ambitious, yes, but in

Education will focus on sustainability. eco-conscious Northern California, nothing less would do. It is with a certain pride of place that the organizers of the 34thAmerica’s Cup expect to be held accountable to succeed, and to export this eco-ethos globally as the America’s Cup World Series takes boats and teams to other harbors. They are being advised—and observed—by some of the best minds of the environmental movement, people who also know an opportunity when they see it. Joining forces in support are Dr. Sylvia Earle’s Mission Blue organization, OceanElders, Sailors for the Sea, One World One Ocean, the International Union for Conservation of Nature, and Aquarium of the Bay. To point to just one example of the need, Dr. Earle notes that only one percent of the world’s oceans have any form of protection, but: “Where Marine Protected Areas have been established, within just two or three years you see bigger fish returning, you see more marine life, and you see greater diversity of life generally. Marine Protected Areas work.” Because, the 34th America’s Cup is about transforming sailing, but the transformation does not have to stop there.

International Union for Conservation of Nature– Works to find pragmatic solutions to pressing environment and development challenges with scientific research, field projects, and convening of governments, non-government organizations, United Nations agencies, companies and local communities to develop and implement policy, laws and best practice. Aquarium of the Bay– Inspires conservation of the San Francisco Bay and its watershed from the Sierra to the sea in partnership with The Bay Institute. Save the Bay – The largest regional organization working to protect, restore and celebrate the bay. The Marine Mammal Center – The leading organization for care and protection of marine mammals. National Marine Sanctuaries – Dedicated to preserve, protect, and promote our marine sanctuaries. NOAA – The lead U.S. agency responsible for understanding and protecting our air and water.

Dr. Sylvia Earle, Founder and chair, Sylvia Earle Alliance

Understanding Oceans Once upon a time she was the chief scientist for the National Oceanic and Atmospheric Administration. Branching out from this esteemed post, she has been called “Her Deepness” by the New York Times, “Living Legend” by the Library of Congress, and first “Hero for the Planet” by Time Magazine. Today Sylvia Earle continues to put her expertise to work and her credibility on the line as one of the foremost eco-warriors of the Blue Planet. Don’t judge this book by its cover. The soft-spoken Earle has set a record for a solo dive to 3,300 feet. She has led more than 60 expeditions and logged 6,000 hours underwater. An oceanographer with a PhD from Duke (go Blue Devils) and 15 honorary degrees, Dr. Earle is Explorer in Residence at the National Geographic Society, with connections to a hatful of environmental groups in addition to her own Mission Blue and an alliance with the America’s Cup Healthy Ocean Project. She wants you to know, “The issues facing the health of the ocean today are obvious,

34TH AMERICA’S CUP

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in a way. We’re putting things into the ocean that have never been there before. Our pollution is changing the chemistry of the sea, and in the last few years we’ve begun to clog the ocean with plastics. There is also the problem of what we are taking out – huge quantities of ocean wildlife.” The biggest problem Earle says, “is a lack of understanding that the ocean matters. People don’t grasp that they are dependent on the ocean. But with every breath you take, every drop of water you drink, wherever you are on the planet, you’re connected to the ocean. There is urgency as never before, because never before did we understand that the ocean is in trouble; therefore, we are in trouble. The next 10 years may be the most important in the next 10,000 years because we’ll act, or not.” Ocean issues are business issues. A vast measure of the bay area economy travels over the ocean, comes from the ocean, is pulled from beneath the ocean, flows into the ocean, or explores ocean-related innovation.

19

There is urgency as never before, because never before did we understand that the ocean is in trouble; therefore, we are in trouble. Dr. Sylvia Earle

2011 ACEA / GILLES MARTIN-RAGET

In addition to mobilizing beach cleanups, such as this one in Plymouth, England, the America’s Cup Event Authority plans to use half the fuel of past regattas.

OceanElders– An independent group of global leaders who have joined together to use their collective influence and experience, supported by science and data, to promote ocean conservation, pursue the protection of the oceans’ habitat and wildlife, and preserve its ecosystems and species biodiversity.

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Big changes, tight timing Meeting environmental regulations – the state’s CEQA and fed’s NEPA processes – is moving swiftly, but there’s still a lot to do

TIMEFRAMES FOR KEY MILESTONES

Nov. 2011

Dec. 2011

2012

2013

Q BCDC Hearings and Design Review Board Meetings Q AC World Series San Diego (11/12-20) Q Target for Publishing Draft EIR Comments &

Q Finalize Plans for Water and Air Traffic, Parks

Q Further SF agency/commission hearings and action items Q BCDC Plan Amendments and Major Permit Q Team Base Operations Manual Q Federal NEPA Environmental Assessment and subsequent findings Q Construct Team Bases and Floating Docks Q Site preparation and demolition work on Piers 27/29 Q Begin Construction of Core and Shell of Cruise Ship Terminal Q Teams may begin testing AC72 catamarans (July) Q AC World Series San Francisco (AugustSeptember)

QOpening ceremony (7/4)

Event Operations, Public Safety, Sustainability, Zero Waste, Workforce Development, and Youth Involvement Q Target for Planning Commission certification of the EIR Q Adoption of CEQA findings (January if EIR is appealed to SF Board of Supervisors) Q Approval of venue leases Q Authorizations for SF and regional agency action agreements (will likely extend into early 2012)

Responses

The vision of Piers 27-29 in 2013.

Abbreviations AC=America’s Cup BCDC=Bay Conservation and Development Commission EIR=Environmental Impact Report CEQA=California Environmental Quality Act NEPA=National Environmental Policy Act

Envisioning a Waterfront Reborn America’s Cup mojo worked elsewhere. Now it’s our turn.

W

BY KIMBALL LIVINGSTON

AECOM

CONTINUED ON NEXT PAGE

Piers 27-29 will become a central America’s Cup event hub and international cruise terminal

2011 ACEA / GILLES MARTIN-RAGET

e’ve heard the promise that America’s Cup will pick up where other efforts leave off, to build a commercially viable San Francisco waterfront. A reasonable person could wonder, so let’s consider precedents. Case 1. Toward the end of the first-ever America’s Cup races outside America—Fremantle, Australia 1987—it was clear that Dennis Conner was about to recapture the Cup and bring it home to the USA. People quipped, “Will the last American in Fremantle please turn out the lights.” But, 24 years later, Fremantle is still a gem, still a destination justifying the huge investments placed in what had previously been a seedy little port town. The America’s Cup transformed Fremantle for good. Case 2. New Zealand won the Cup and followed the Australian model. (See sidebar, next page.) Case 3. Valencia, Spain “won” the Cup in a bidding war—after Switzerland won it on the water, the first time that the Cup venue had been put out to bid—then invested in radical makeovers for a 2007 event. The Avenue of the Port was rebuilt to


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The system by which Americaâ&#x20AC;&#x2122;s Cup money would rebuild the piers, in return for longterm leasing rights, is â&#x20AC;&#x153;our standard tool, itâ&#x20AC;&#x2122;s how we did the Ferry Building and the ballpark,â&#x20AC;? says Port Director Monique Moyer. CONTINUED FROM PREVIOUS PAGE

L

Moyer. The Ferry Building and AT&T Park are highly visible, however. To the critical work needed on the substructure of 30-32, Moyer says, â&#x20AC;&#x153;youâ&#x20AC;&#x2122;re not going to see where the money went.â&#x20AC;? But if nothing is done, it will be all-too-obvious, in this decade, where the money did not go. Under the Bay Bridge, in the historic zone, Piers 26 and 28 are occupied, Moyer says, but not at a rate that justifies a large investment. â&#x20AC;&#x153;If we canâ&#x20AC;&#x2122;t breathe life into them, theyâ&#x20AC;&#x2122;ll go dark.â&#x20AC;? North of the bridge and north of Market, the piers closest to the Ferry Building are filled with life, and at Pier 15 some 500 construction workers are on the job day and night (re-sleeving pilings at every low tide) to keep the Exploratorium on pace to open its new, 9-acre facility ahead of the Americaâ&#x20AC;&#x2122;s Cup. Demonstrating that, yes, these things can move quickly. The Exploratorium had a 9-month turnaround on its Environmental Impact Report (EIR), â&#x20AC;&#x153;and the contractors are quick with the workarounds as needed,â&#x20AC;? says Executive Director Dennis Bartels. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re hoping to have some time to celebrate the Exploratorium, before Americaâ&#x20AC;&#x2122;s Cup racing kicks off.â&#x20AC;? During the mandated Americaâ&#x20AC;&#x2122;s Cup EIR public comment period under the California Environmental Quality Act (CEQA), 1,300 issues were raised in over 2,000 pages of comments. The Planning Department expects to publish in late-November, the complete responses to each issue. After that, the process moves to the Planning Commission. In the meantime, long-lead items such as elevators are on

34TH AMERICAâ&#x20AC;&#x2122;S CUP

Auckland, New Zealand, before the Americaâ&#x20AC;&#x2122;s Cup races (left) and today (below). Millions were spent on improvents to the waterfront â&#x20AC;&#x201C; an investment which has had a lasting impact.

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Businesses like restaurant Pier 23 stand to see a big boost from Americaâ&#x20AC;&#x2122;s Cup traffic and improvements to the piers.

hold, and there is the pressure point. Other benefits of Americaâ&#x20AC;&#x2122;s Cup fit into the planned Cruise Ship Terminal at Piers 27-29, where the cityâ&#x20AC;&#x2122;s intent is to replace the Pier 27 shed with a new building that will be fitted out, temporarily, as the main public interaction space for the 34th Americaâ&#x20AC;&#x2122;s Cup. Beyond that, whether the Cup stays in San Francisco or not, it will be refitted as a combination Cruise Ship Terminal

and public space. â&#x20AC;&#x153;Working with San Francisco Travel, the Port has identified a need for more meeting space on the waterfront,â&#x20AC;? Moyer says. â&#x20AC;&#x153;The Americaâ&#x20AC;&#x2122;s Cup is our first customer, to prove the model. The cruise industry being seasonal, we need to have additional uses. This is a wonderful property that will be within reach of the public for the first time. Itâ&#x20AC;&#x2122;s going to be great to see it alive with people.â&#x20AC;?

WILL THE   % BENEFIT THE  

Americaâ&#x20AC;&#x2122;s Cup Extreme Makeover: Auckland

  Pile Driver, Local 34

# !! "!$

PHOTOS: VIADUCT HARBOUR

ike San Francisco, the city of Auckland, New Zealand had a section of waterfront in dire need of renovation, within walking distance of prime downtown real estate. Like San Francisco, Auckland had a small population for a city, 1 million people, and financial limitations. There were, amazingly enough, competing interests and agendas and a need for government coordination to drive the process of re-imagining Aucklandâ&#x20AC;&#x2122;s Viaduct Basin. And then, there was a result: A vibrant new neighborhood that continues to thrive a decade later, drawing local and international visitors to waterfront property that once was walled off. Shops and restaurants operate year-round. The Americaâ&#x20AC;&#x2122;s Cup has moved on, but the Viaduct Basin is integrated into the life of the city. It also has served well for successive world events: Auckland estimates that 200,000 people thronged its waterfront on opening night of the 2011 Rugby World Cup.

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PIER 23

AECOM

Piers closest to the Ferry Building are busy, with some 500 construction workers on the job day and night re-sleeving pilings to keep the Exploratorium on pace to open its new facility ahead of the Americaâ&#x20AC;&#x2122;s Cup.

presentation standards. A portion of the commercial port was repurposed, with public buildings and public parks (there had never been public access) and a long-term eye toward laying down a racetrack. So hereâ&#x20AC;&#x2122;s a gratuitous question: Would Formula One have come to Valencia without the Americaâ&#x20AC;&#x2122;s Cup? And one more question: Is there a theme here? Before the Americaâ&#x20AC;&#x2122;s Cup came to town, there was no Plan A for our deteriorating Piers 30-32. Without the Americaâ&#x20AC;&#x2122;s Cup, there is no Plan B. The Port of San Francisco has been successful at revitalizing much of its waterfrontâ&#x20AC;&#x201D;the Embarcadero is emerging as a gemâ&#x20AC;&#x201D;but 30-32 are the poster kids for the parts that are not working. Michael Cohen, former Director of the cityâ&#x20AC;&#x2122;s Office of Economic and Workforce Development, now working in commercial real estate with the Strada Investment Group, says, â&#x20AC;&#x153;The profound impact of the Americaâ&#x20AC;&#x2122;s Cup will be the investment in substructure on piers that are rotting away and would otherwise

be impossible to reuse. Look at Piers 30-32. Years ago the city put them out to bid, and some very savvy real estate investors looked at the package and wanted to like it, but they could not make the numbers work. Now Americaâ&#x20AC;&#x2122;s Cup needs the space. The Event Authority will pay the costs up front of improving the substructure. To offset the cost of making the piers useful again, the city offered long-term development rights. For more than a decade, the private sector has proved itself unwilling to take that deal. It took the Americaâ&#x20AC;&#x2122;s Cup to make something happen.â&#x20AC;? With the tech sector driving activity and keeping commercial rents in San Francisco 20-25 percent higher than in most US cities, and with increasing focus south of Market, Piers 30-32 fall right in line. South of the Bay Bridge, they are slated to hold the team basesâ&#x20AC;&#x201D;where boats will be housed and servicedâ&#x20AC;&#x201D;and this is potentially premium real estate. The system by which Americaâ&#x20AC;&#x2122;s Cup money would rebuild the piers, in return for longterm leasing rights, is â&#x20AC;&#x153;our standard tool, itâ&#x20AC;&#x2122;s how we did the Ferry Building and the ballpark,â&#x20AC;? says Port Director Monique

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