TITLE
Recommendation to increase appropriations in the Tidelands Operations Fund (TF 401) in the Economic and Property Development Department (EP) by $1,702,448 for a transfer of Queen Mary lease revenue to the Queen Mary Fund (TF 410); and
Increase appropriations in the Queen Mary Fund (TF 410) in the Public Works Department (PW) by $1,702,448 for various capital and historic preservation projects, offset by the transfer of Queen Mary lease revenue. (District 2)
DISCUSSION
On January 5, 2016, the City Council approved a Restated and Amended Queen Mary Lease No. 22697 and assignment of the Lease to Urban Commons, LLC. Included in this action was the augmentation of funding designated for capital improvements and historic preservation projects at the Queen Mary. Previously, funding for Queen Mary projects was primarily from $189,000 in pass-through rent from a Queen Mary sublease. This amount is wholly insufficient for funding larger structural and historic preservation projects, or unforeseen emergency repairs.
On October 13, 2015, the City Council increased appropriations by $1,000,000 from Queen Mary lease revenue for a Marine Survey, Historic Structures Report, Reserve Fund Analysis, and for unforeseen or emergency repair projects.
The Marine Survey and Historic Structures Report are not yet complete, but several high priority repairs have already been identified. Most significantly, three expansion joints (forward, mid and aft), which span the width of the ship, have experienced extensive deterioration and require urgent repair. The expansion joints are a critical element to the structural integrity of the ship. Additionally, deficiencies at the forward expansion joint have resulted in the closure of the Promenade Café, a major revenue generator for the Queen Mary. Cost for the expansion joint repairs are estimated at $625,000. The October 13, 2015 appropriation is not sufficient to address these critical repairs.
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