America’s Cup Construction Begins amid Growing Doubts
The sailing event — and its financial benefits — may be smaller than expected
Demolition of an aging cruise ship terminal, needed to clear the way for construction of America's Cup facilities, began Tuesday during a ceremony that coincided with escalating concerns over the scale of the regatta and the financial benefits that it promises.
The cruise terminal at San Francisco’s Pier 27 will be torn down and replaced with a large steel structure that will serve as the hub of an America's Cup village. It is part of a sweeping overhaul of San Francisco's waterfront in advance of the America’s Cup races, which begin this summer and continue in 2013.
But doubts are growing about the number of spectators who will actually come to the city this year and next to watch the races of experimental catamarans. Preliminary races held on 45-foot vessels in San Diego and elsewhere are failing to attract expected crowds or sponsors.
The race courses in San Francisco Bay originally were planned to begin along the city's waterfront and then loop around Alcatraz, viewable from shorelines around the Bay Area, but much of the racing is now expected to occur between Alcatraz and San Francisco’s Marina neighborhood.
Meanwhile, just three sailing teams have paid the $200,000 registration fee required to vie for the right to challenge Larry Ellison’s Oracle Racing team during the main races of 72-foot boats on the bay next year — far shy of the nine challengers that organizers expected to take part. The entry fee was reduced in late 2010 from $1.3 million per team in a bid to entice competitors.
Those three teams — Emirates Team New Zealand, Luna Rossa and Artemis — have begun building their boats at a special workshop in New Zealand.
“We're hopeful of having more teams outside of the teams that are already building,” Ian Murray, the regatta director, told The New Zealand Herald. “But the reality is the runway is going to run out in the not-too-distant future.” Murray was in New Zealand for a meeting of prospective teams.
Stephanie Martin, a spokeswoman for the America’s Cup, said Tuesday that other teams have until June to commit to entering the event and begin building boats.
World Series racing is scheduled this year in 45-foot catamarans. Next year, the Luis Vuitton Cup series will be raced over 41 days in 72-foot catamarans from July to September, with the winner moving on to challenge Oracle Racing for the coveted cup in a best-of-nine challenger series in the early fall.
In late 2009, when San Francisco was vying — without any competition — to host the regatta, organizers forecast that as many as 600,000 people would watch the races from buildings, shorelines, hills and boats.
Roland Salvato
HA!
You don't say? You means business hype doesn't actually match reality? Wow -- we are so surprised!
"Michelle Kohlhaas"
Taking into account the multiple financial woes that attach to cities that sponsor glamorous sporting events such as the Olympics...
...can anyone claim to be surprised that the America's Cup (an event that hardly has the broad appeal of the Olympics) will be a lemon?
How much is Ellison paying Ed Lee to lie?
Stitch_94133
Don't think it's Ed Lee, remember this was another Gavin-extravaganza - the very wealthy just want to have their fun and believe because they're so fabulously wealthy that you should have to pay for their fun.
"Michelle Kohlhaas"
Stitch, did you read the article?
"On Tuesday, Mayor Ed Lee expressed his optimism about the regatta, saying he still expects as many as 500,000 people to attend some of the race days. He said he did not expect the event to be scaled back.
“Some people, when they came back from San Diego, were saying, ‘Well, maybe it should be scaled back,’” Lee told reporters following the ground-breaking ceremony at the cruise ship terminal. “But I think there’s more momentum building for our event because it’s so different. It’s both a shore and a waterfront experience that nobody’s seen before. I think that excitement brings in some very new elements, and we’re trying to predict that as best we can.”
My question remains "how much is Ellison paying Lee to lie?"
David Zisser
So now the truth is being told about the fantasy spectator and revenue projections surrounding the America's Cup. Do these fantasies remind anyone about the equally ridiculous passenger and revenue projections bolstering the case for the California High-Speed Rail project or the ludicrous Central Subway?
Was it only yesterday that we were told this event would inject $1B (yes, billion!) into the San Francisco and greater Bay Area economy? What a joke! For the privilege of holding this event, the incompetents at the Port of San Francisco and the fools at City Hall have allowed Larry Ellison's team of legal and real estate sharks to extract long-term leases on some of the most valuable waterfront real estate on the west coast. So, long after the billionaire "sailors" have departed these waters, Ellison will be sitting pretty.
Thanks goodness Gavin Newsom's bid to attract the Olympics to San Francisco came to nothing although I'm sure the games would have brought $10B or maybe $15B or maybe $20B to the local economy. Not!
Charles Marsteller
Thanks for this, John. I would also refer Readers to Larry Bush's article on this topic at CitiReport.
The problem I see is that this is not attracting the attention it needs to--it is the prototype of much more to come now that we are back in the era of Pay to Play, this time with a few notable billionaires who are openly discussing San Francisco as their plaything.
Jefferson said it: price of liberty is eternal vigilance. And remember Franklin too: "A Republic--if you can keep it." Seems of late we are loosing our perspective.
Patrick Rn
This news comes as no surprise and appears to confirm one of the major objections many of us have had from day one. The Billionaire Boy's Club Boat Boondoggle was always primarily a convenient cover to tie up development rights to what remains of our waterfront.
George Smith
This is going to be a huge flop for City coffers but a huge boon to Larry Ellison!
Gordon
This is what usually happens when you whore yourself for money, it never really comes true...
"Michelle Kohlhaas"
Background sound of rueful laughter from other readers recognizing truth of statement...
cornholio
We should not allow people to use different attendance projections for their environmental impact applications. If you projected 600,000 people to convince the city to allow or subsidize it, your environmental impact application should automatically adjust to show that you expect 600,000 visitors.
keller
Like much of reportage on this project, this article states that the structure being built at pier 27 is being built for the America's Cup. That's not the case. It's SF's new cruise ship terminal, which is a separate project that was planned and approved before. The building shell is being leased to the America's Cup for the races, with the work to complete it as a terminal to be finished afterward.
John Upton
Hi keller,
You are correct -- the building will be used as a cruise terminal and event space after the America's Cup is done with it. The regatta will likely continue to be held on San Francisco Bay until the Oracle team loses the Cup, and there is no way of knowing when that will be.
- JU
John Reece
The fact that that spectator estimates are way down is no surprise to this onetime SF Bay small-yacht racer. Watching boats, even fast cats, is like watching paint dry.
However, that also means the 'environmental impacts' from traffic, etc., and estimates of municipal costs will also be greatly reduced.
The fact is the opposition to this event is purely pathological. Try to hold a big event or do a big construction project in a 'progressive' town like Frisco and some residents will always pathologically and exhaustively search for a reason to oppose it.
"Michelle Kohlhaas"
John,
SF is currently about as "progressive" as the upper east side of manhattan. The fact is this project has unrightfully displaced 80-something local businesses, and for what?
"Progressive" and conservatives in SF are generally agreed this is a boondoggle.
Al -
Some costs will be reduced, sure. But other costs, unfortunately, have already been agreed to, like 75-year leases on valuable land. That's my objection: the city giving away stuff to a billionaire.
SF Soma
With Gavin Newsom and his owners behind it did people really expect anything but a boondoggle and giveaway of prime real estate to an oligarch?
Michael Strickland
Nice job, Mr. Upton. The initial crowd estimates always struck me as delusional wish-fulfillment, so it's good to see some reporting about that reality.
Bill Sugaya
Err, this may not be relevant to substantive AmCup issues, but Pier 35 is the current cruise ship terminal, not 27. The Queen Elizabeth is due to dock at 35 on Feb 4th.
John Upton
Hi Bill,
Piers 27 and 35 are both used as cruise terminals, but only Pier 27 has a shoreside power supply that allows cruise ship captains to plug into the electrical grid and turn off their diesel engines. Piers 30/32 are also used for cruise berthing when the other berths are full.
- JU