SAN FRANCISCO (KCBS/AP) – A new report suggested that San Francisco’s economy would get a $1.2 billion boost if the city hosted the America’s Cup sailing contest. But, according to that same report by Board of Supervisors Budget Analyst Harvey Rose, there would also be significant costs to city coffers.
KCBS’ Barbara Taylor Reports:
Rose’s report, released Thursday, suggested that the city’s direct cost of hosting the event would be $42 million. Rose estimated San Francisco would lose another $86 million from granting race organizers development rights and leases to waterfront property.
Rose executed the audit at the request of a skeptical supervisor Chris Daly.
SF Chronicle Reporter John Cote discusses the issue with KCBS:
“Certainly an upside in terms of general economic effect, but I think that the cost to local government is dangerously high,” he warned. “And the way that they are able to justify to you is they wrap it up in this euphoria of San Francisco and sailboats that are pretty.”
Mayor Gavin Newsom’s office, which stood firmly behind the city’s bid, said the budget analyst failed to account for the decrepit condition of the waterfront property and private funds that will reduce the city’s direct costs.
“We’ve always known that hosting the America’s Cup would have some costs to the city and we think they are costs well worth it, given all the economic benefits,” reasoned Newsom spokesman Tony Winnicker. “The direct city costs in the report are not inconsistent or out of line with what we would expect for an event this size. I mean, you look at World Cup, you look at Olympics.”
San Francisco appeared to be the front-runner to host the race in 2013.
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