Deep Pockets-But Not Deep Enough
Posted by: 
brwhiz
N 37° 48.616 W 122° 24.644
10S E 551869 N 4184927
This Historical Marker is one of many mounted on building walls along the upper level of Pier 39 on the San Francisco Embarcadero.
Waymark Code: WMJF1T
Location: California, United States
Date Posted: 11/09/2013
Views: 7
Deep Pockets-But Not Deep Enough
Before Crocker Bank agreed to lend Warren Simmons $27 million to finance the total estimated construction cost of Pier 39, bank executives attempted to convince Simmons to take in a partner who could cover any cost overruns. They might have had better luck asking him to build Pier 39 with his bare hands.
Yet Crocker insisted Simmons have an equity partner with "Deep Pockets." Simmons asked Crocker "How Deep" the pockets had to be and was told $4 to $5 million in readily available cash to cover the inevitable overruns.
Not wishing to share his dream with partners, Simmons raised $4.5 million by selling his highly successful Tia Maria Mexican restaurant chain. He then convinced Crocker that he had a great deal of experience building the 11 Tia Marias and that he didn't expect any overruns, but if for some unknown reason there was an overrun or two, his pockets were indeed deep enough.
Crocker should have checked for holes in the lining. With construction costs going up daily, coupled with the complicated design of Pier 39, it wasn't long before the overruns came sprinting in. The $4.5 million was spent long before the final nail was driven and when the smoke finally cleared following the construction and ensuing legal problems, Crocker had to lend Pier 39 another $8 million to cover costs.
The bank executives had finally found the "Deep Pockets"--their own.