Some skepticism as America's Cup agreement comes under review

The America's Cup racing team sailed the waters of the San Francisco Bay Tuesday during a demonstration amid growing skepticism about how much the city stands to cash-in on the upcoming series of sailing events.   

The demonstration was billed as a preview of things to come.

"I feel the America's Cup is lucky to have San Francisco," said competitive sailor Russell Coutes. "I don't think San Francisco has yet realized how lucky it is to have the America's Cup." 

On Wednesday, a committee of San Francisco supervisors will review the agreement which finalizes the terms of the race, including fixing up crumbling piers in exchange for rights to develop the waterfront.

"We are proposing to give $110 million worth of real estate to the fifth richest man in the world for an event that may not have high attendance," argued former supervisor Aaron Peskin.  The "fifth richest man" he was referring to was Oracle magnate Larry Ellison.

Peskin is one of many taxpayers concerned that under the current deal San Francisco and its port are assuming too much risk.

"I think we could end up getting stuck with the bill so my hope is what they're projecting comes true," said Randel Kelly of San Francisco.

"There isn't a map or a blueprint on how to do this," noted Mark Buell of the America's Cup Organizing Committee. 

The head of the committee said by June, the city will have spent more than $9 million on race preparations. However, he also noted that SF will be reimbursed for that amount and then some.

"We have expectation of large crowds and we have to plan to meet the worst case scenario," said Buell. He added there are no guarantees when it comes to the cup. But the potential for upside is huge, an assessment Peskin finds overly optimistic.

America's Cup organizers will discuss their development deal with supervisors Wednesday morning as part of the next step in finalizing plans for the race.