The $25 Reward that Cost $2,416,825

This brings me to the concept of an investor funding a few “construction network merchants” that are creating a unique use case. I like to use the “Pier 39” strategy as an analogy. The following is a newspaper article of the approach:

When Pier 39 opened exactly on October 4, 1978, just as developer Warren Simmons had planned months before construction had even begun. It was the result of determination, pride and tremendous effort by almost everyone concerned. For those few who weren’t adequately motivated by determination and pride, Simmons pulled out the ace in his sleeve, money.

Supervisor makes a bet with Warran Simmons...

Supervisor Feinstein promised to appear in her bathing suit if the developer could meet the scheduled opening date (thinking he would never make it!).

The Jackpot.

For the restaurant tenants, who carried a lot of the construction burden, the monetary incentive was quite a motivator. The tenants were given a basic structural shell, courtesy of the developer, and a $25 per square foot bonus to each tenant who opened on time on October 4, 1978, at 11:30 AM.

For a 7500 square foot restaurant, that works out to be $175,000 worth of motivation. In total, since all tenants were rewarded their full bonuses, the $25 reward cost the developer $2,415,825. Give or take a few dollars!

Feinstein Grateful?

But still, the reward was worth every penny it cost us. Because it sure helped us open the Pier on time. And because without it, we’d never would have gotten to see Diane Feinstein in her “bikini”. 

​SAN FRANCISCO (KTVU) - San Francisco's Pier 39 grand opening with Warren Simmons, the developer, and Dianne Feinstein, living up to her bet about the tourist attraction opening on time.