I found this article on the valencian newspaper Levante.
33rd America\'s Cup It says that the decission hasn't been taken yet. They have several candidates to hold the next edition. If they chose Valencia the 33rd America's Cup will be in 2009, if not it will be in 2010 or 2011.
They say that the Formula One urban circuit, wich will go accross the port, could affect the final decision
Dubay is one of the most suitable candidates.
Anyway in my opinion they are trying to get more money from Valencian authorities.