Solving Affordable Housing
The primary means of achieving this Mission:
Develop revenue generating companies and projects and dedicating a portion of such revenue to the construction of affordable housing and towards research into how to build such housing more efficiently and for less cost.
1. The Golden Gate Foundation is a federally approved 501(c)(3) non-profit corporation. The Foundation advocates for and provides funding towards efforts promoting legislation and land use or zoning amendments that may be needed to obtain necessary approvals and permits to build the projects.
2. Each ‘Project’ will be organized as a for profit corporation. The Golden Gate Foundation will manage all revenue generated by each for profit corporation earmarked for use in furthering the mission of the Foundation. The first for profit corporation being organized by The Foundation is The Golden Gate Flyer Corporation. It is estimated that as a result of it's operation as much as $100,000,000 of additional affordable housing will be made possible every year.
3. The Foundation cannot, by law, contribute to individual political campaigns. It will remain ‘apolitical’ and not contribute to PACs or make political contributions. It will, however, fund lobbying efforts to help effect meaningful tax policies at the local, state, and federal level, that would result in the creation of more affordable housing and encourage development of ways to build it faster and for less money.
4. Its day to day operations will be managed by a salaried Executive Director and minimal staff as required to carry out its Mission. Make up of Foundation staff shall reflect the diversity of the SF Bay area.
Overall Foundation management and guidance, including selecting and hiring the Executive Director, shall be the responsibility of the Board of Directors.
The Founding Chairman of the Board of Directors, Gordon P. Crespo, will be responsible for assembling a Board of Directors that represents the diversity of the San Francisco City Bay Area.
Mr. Crespo will select, on the foundations behalf, an interim Executive Director responsible for running the day to day operations, fundraising, and branding/sponsorship solicitations for the Foundation. This interim director shall serve until the Board has been fully established and construction of the wheel has been completed. At that time it will negotiate a long term contract for the Executive Director position.
Board of Directors
The board of directors shall consist of the Chairman and 12 additional directors. The board of directors shall, within 90 days of its formation, establish a 21 seat Advisory Board to assist it in executing the Vision and Mission of The Foundation.
We need input from city and community leaders, affordable housing advocates, potential sponsors, builders/developers, environmentalists, community activists, journalists, interested citizens, and elected representatives to create a truly diverse, transparent, and qualified board of directors.
Board member reimbursement will be limited to a per meeting stipend, travel expenses and reimbursement for costs associated with the conducting of board approved foundation business.
Board members may also be retained by the Foundation to provide services as may be necessary to further the achievement of its’ Mission. Salaries paid for such services shall be consistent with the prevailing wage for such services provided.
Board members who ‘invest’ in individual project corporations created by The Golden Gate Foundation will be provided a reasonable return on such investments to the extent allowed under the bylaw provisions of each type C Corporation created by The Foundation to further its Vision and Mission.
Attendance at Board meetings via Skype or other teleconference system is acceptable.
Advisory Board: 21 non-voting members
The Advisory Board must represent the diversity of the Bay Area. It should include; local and state gov’t representatives, officers of donor/sponsor companies, other non-profits (including those whose primary mission is to advocate for the construction of low income housing, experts in low income/affordable housing, developers with a successful and proven track record of constructing market rate AND Below Market Rate (BMR)/Low Income units, experts in the operation of amusement attractions, waterfront development, tourism, politics, and local neighborhood groups
The Golden Gate Foundation, nor any of it's affiliated Type C Corporations, does not and shall not discriminate on the basis of race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations.
Project 1: The Golden Gate Flyer:
Our first project will be the construction of the largest observation ferris wheel in the world*, The Golden Gate Flyer, and financing it by a unique combination of a private/corporate mechanisms and via both non-profit and for profit corporations.
Based on estimated design, entitlement, construction and operational costs it will result in an estimated $100,000,000 or more of funding for the development of affordable housing, towards research into how to deliver such housing more efficiently, and to help change tax laws in a way that will encourage the development of more affordable housing.
Preliminary financial/cash flow projections:
36 Capsules hold approximately 40 passengers (around 1400 passengers at a time =max of 2800/hr) Total estimated visitors per year of around 2,500,000. (10,000,000/yr visit Pier 39) San Francisco’s total tourist/convention visits is approximately 25,000,000.
2,500,000 @ $38/ticket = $94,000,000/yr. Additional revenue will be generated from private capsule rentals, conference fees, IMAX, venue naming rights, VIP Beverage/Food flights, other sponsorships, internet marketing, parking revenue, and food/beverage/merchandise sales,
A portion of the cost of each ticket will be used to help support the provision of ferry transportation to the island. Current estimate is that $15,000,000/year will be provided to subsidize ferry service for our guests. All ferry boats funded in part or in full by The Golden Gate Flyer Project must be, at a minimum, hybrid driven and have a capacity of over 600. The foundation will work directly with ferry operators and naval architects to ensure each boat is as environmentally friendly and fuel efficient as state of the art technology allows.
In 2015, San Francisco collected around $73,000,000 of ‘in lieu’ BMR fees. An additional $20,000,000 per year for affordable housing will be provided by The Golden Gate Flyer project. That $20,000,000, leveraged properly, could result in an additional $100,000,000 worth of affordable homes each year.
A portion of the costs of capsule tickets would be tax deductible. Tax deductibility might provide an additional incentive for folks to take a ride other than just as a pure tourist activity.
Construction cost of the Wheel and base facilities is roughly estimated at $750,000,000.
Yearly operating costs have not yet been finally determined but have been estimated to be around $35,000,000/year. Cost of financing will vary depending upon final finance model used and level of corporate and individual project sponsorship obtained.
Designer: Techne + Logos
Architect: Gensler and Associates - Proposed
Engineer: Arup Group (London Eye, High Roller, Singapore Flyer)
Operations: Merlin Entertainments (London Eye, Orlando Eye) - Proposed
Finance: Transaction Mercantile, Finance strategy
Legal: Arent Fox
Public Relations: To be determined