19,136 Words, HCA 11.9.10

Today I made it to the bottom of the Host City Agreement, the one signed on Tuesday [Correction. Agreed to, but not signed. KL, 11/14/10] between the America’s Cup Event Authority and the office of San Francisco Mayor Gavin Newsom. I reckon I may have skimmed a few parts of the 19,136 word document, but it’s a fascinating read if only for revealing how complicated this negotiation really was.

The serious-minded can read the Agreement, the HCA, HERE.

Next we go to a November 30 meeting of the Port Commission and then to a final vote of the Board of Supervisors on either December 1 or December 8. I’m not big on arithmetic, but with 6 of 11 Supes signed on as co-authors, I’m thinking this shapes up pretty well.

Considering all the back-room wisdom that has circulated regarding the tax advantages to sailors of racing in Europe rather than in the USA (“Psst, that’s why Russell’s going to take this thing to Italy as soon as the San Francisco charade plays out”) I’d say this passage is worth the read:

1.2 If the City is selected as the host city for AC34, the City shall secure . . .

All necessary federal, state and local legislative or regulatory actions as are necessary for nonresident aliens involved in the Event (whether as employees or contractors of the Authority, the Authority Affiliate, Competitors, Officials or the media) and their dependents to be taxed on terms no less favorable than the income tax regime created for the 32nd America’s Cup in Valencia, Spain, subject to the Authority providing the “general commitments in connection with taxes” referenced in Section 19 of the Valencia Host City Agreement; or, if such tax treatment cannot be achieved, completion of all necessary federal, state and local legislative or regulatory actions as are necessary so that the period of time nonresident aliens involved in the Event and their dependents are present in the United States for AC 34 are excluded for purposes of the Internal Revenue Code “substantial presence” test for taxation of nonresident aliens.

I also see that I’m still hearing from unbelievers. Dang. I shoulda taken this to Vegas.