San Francisco may lose America's Cup bid

Jennifer Matz, head of the city's economic development office, which has been leading the city's efforts to secure the Cup, said the city will continue to work with the team but considers the deal already on the table its top offer.

"It's the best bid that San Francisco can put forward," Matz said. "We feel it's an extraordinary offer."

As the deal stands now, if the team selected San Francisco to host the regatta, it would get development rights and a 66-year lease on Piers 30-32 and a 75-year lease on, and possibly title to, Seawall Lot 330 across the Embarcadero at the foot of Bryant Street. The team also would have the option of paying at least $25 million more to shore up nearby Piers 26 and 28 in exchange for 66-year leases on them.

The team would pay "commercially reasonable" rent but be given credit for infrastructure work performed. It would commit to paying up to $80 million for race-related infrastructure.

The original proposal included development rights to Pier 50 near AT&T; Park, which initially was going to be used to house the competing teams' bases before that idea dropped out of favor because of cost.

Barclay in his letter indicates race organizers had proposed including those development rights in the final deal, along with the event authority agreeing to pay $10 million to help defray cost of moving tenants from the pier. But some city officials question whether the city could legally include the rights to Pier 50 if it's not going to be used in the race.

Majority back plan

Meanwhile, several supervisors are questioning whether the modified proposal is the best deal for the city. Still, it appears to have the support of a majority on the board.

Matz and Port Director Monique Moyer, in a letter sent Saturday to Barclay, said: "We are confident that if we work together, we can succeed" in bringing the 34th Cup to San Francisco.

If San Francisco stumbles, Newport, R.I., and ports in Italy and the United Arab Emirates are possible host locations for the next event.

"If they want to win, it must be an agreement that we are happy with. There are always two sides to a bargain," Barclay said. "The city had all but won the right to host the Cup. Now they are holding on by their fingernails."

E-mail John Coté at jcote@sfchronicle.com.

This article appeared on page A - 1 of the San Francisco Chronicle