San Francisco Port Commission Meeting - June 11, 2019
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San Francisco Port Commission Meeting - June 11, 2019
The Port Commission convened on June 11, 2019, to hear public testimony, receive informational presentations on rental rates and the Mission Bay Ferry Landing, and approve an interim ferry landing agreement. The meeting featured extensive public support for the Teatro Zanzani project and updates on port operations and infrastructure.
Public Comments & Testimony
- Multiple speakers voiced strong support for the Teatro Zanzani project, a circus and theater that was displaced during the America's Cup. Speakers included representatives from the San Francisco Electrical Construction Industry, IBW Local 6, and the San Francisco Electrical Contractor Association, who highlighted union job creation during construction and operation. A working theater artist and former resident costume designer for Teatro Zanzani urged its return, noting the loss of artistic opportunities. A performer and opera singer recounted the unique experience of the Spiegel tent and the project's potential to fill a gap left by the closing of Beach Blanket Babylon. Marvin Cassoff, founder of Renew SF, cited a promise of first crack at a new location when displaced and called the project a much better use of the waterfront corner than a parking lot. Timothy Reif of Carpenters Local 22 praised the project for bringing a theater, hotel, and park. Annie Jameson of Teatro Zanzani thanked the commission and noted daily requests to bring back the show, estimating over 100 jobs (kitchen, theater, administrative). John Corso of Plumbers Local 38 supported the project for jobs. John Stewart, a neighbor and developer of 88 Broadway (178 units, including affordable housing at 30% AMI and 120% AMI), supported the project and noted cooperative utility coordination.
Discussion Items
- Item 10A – Informational Presentation on Primary Rental Schedule: Staff presented the annual update on parameter rents, which cover 387 tenants and 583 leases across 22.7 million square feet. Parameter rents represent 61% of base rent revenue (20% of total revenue including participation rents). In FY2019, 47 parameter leases were executed, generating $3.1 million annualized from nearly 1 million square feet. The average asking rate increased from $1.81 to $1.91/sq ft. Proposed rate increases affect 32 of 75 rates, with office rates rising to reflect low vacancy (5.8% port-wide) and market demand. A pilot fee waiver program for nonprofits with under $2 million annual revenue and San Francisco location was introduced. Commissioners asked about benchmarking against market rents (staff indicated rates are at 90th–100th percentile for Class C space due to location), and queried unchanged rates for sheds with higher vacancy. Commissioner Gilman suggested an edit requiring the nonprofit's major activities to be in San Francisco.
- Item 11A – Mission Bay Ferry Landing Update: Staff presented the $45.7 million project to build a permanent two-berth ferry landing at the foot of 16th Street, designed to serve 6,000 daily passengers (1,500 commuters, up to 2,100 for events). The project includes dredging of 8 acres (2 acres with contaminated sediment requiring a cap), a translucent canopy, and sea level rise provisions. Funding sources include $38.7 million (including $8 million from OCI bonds that must be spent by August 2020) plus additional from RM3, private contributions, and the city general fund. Litigation by the Howard Jarvis Taxpayers Association challenges the RM3 toll increase as a tax; an appeal is possible. Staff warned that delays in the in-water work window (June 1–November 30) could cost $1.2–$2 million in escalation and forfeit the OCI funds. Commissioners expressed support and asked about cost breakdown (ferry landing itself ~$21.5 million) and the potential for floating piers in future projects.
- Item 12A – Action: Interim Ferry Landing at Pier 48½: The commission approved a memorandum of understanding with WETA and Golden Gate Ferry for a temporary ferry landing to serve Chase Center events until the permanent Mission Bay Ferry Landing opens in 2021. The interim landing will be operational by October 5, 2019 (first Warriors-Lakers game). The port will contribute staff time but no cash; rent and landing fees are waived. Construction costs will be covered by WETA with reimbursement from Golden Gate Ferry and the Golden State Warriors. The site will have a short walk (0.4 miles) to Chase Center. The lease expires when the permanent facility is operational. Commissioners noted the site is makeshift and not to permanent standards. The motion passed unanimously (Resolution 1923).
Key Outcomes
- Approved: Resolution 1923 authorizing the port to enter into an MOU and short-term lease with WETA and Golden Gate Ferry for the interim ferry landing at Pier 48½, with zero rent and port staff contribution.
- Directive: Commissioner Macris requested a written report on management issues at Fisherman’s Wharf regarding boot trucks and permitting.
- Informational: Staff will incorporate feedback on the fee waiver pilot program (nonprofit location requirement) for the July vote on rental rates.
- Next Steps: For the Mission Bay Ferry Landing, staff will seek authorization to advertise for Construction Manager General Contractor (CMGC) contracting in July, continue permitting, and return for funding actions in early fall. The interim ferry landing construction bids will close June 28, 2019.
Meeting Transcript
I also move not to disclose anything discussed in close session. All in favor? Please be advised to share my order the removal from the meeting room of any person responsible for the reading of or use the cell phone picture or other similar subjects on the target device. Now you're gonna be having a hotel there. I think the hotel is very compatible. And as a member of your working uh group, I think this kind of project is basically what we are recommending for the port, for you to generate your revenue, but also to enhance the embacker. And so we are very excited. And I also want to take the opportunity here to talk about the developers having had the privilege to be part of the development of Treasure Island. I can attest to the excellent team player, Mr. Jay Wally's and Darius Anderson. They too represent the community of stakeholders. So we've already known what they are capable of doing for the city and county of San Francisco. Having them also be developing this critical space, it's a testament that we have a good respect for them for the way they conduct themselves, and again, for the overall community benefits. Their jobs are gonna be created. I'm sure you're gonna hear from labor, and you're also gonna be hearing from the other stakeholders, the arts community is on board. I mean, again, this is a win-win situation, and I want to encourage you all, uh, commissioners to please, when you get to that item, to look at the overall comprehensive benefits, and thank you for the opportunity to speak before you all today. Thank you. Alex Lanceburg, and then Deborah Bader. Good afternoon, commissioners. Um here representing the San Francisco Electrical Construction Industry, which is the organized electrical uh industry with IBW Local Six and the San Francisco Electrical Contractor Association here uh in support, and I realize it's general public comment of the Teatro Zanzani project. I realize you're not hearing it today, but I we really want to make sure that you're aware of the broad based community support for this thing. Uh from uh, you know, this is this is going to employ uh union members putting this thing up, it's going to employ union members uh operating it down the line. I think it's going to be a huge enhancement for the city. Uh personally, um circus was the first nonprofit job. A business manager of a circus was the first nonprofit job I had uh in town, and it sort of introduced me to the the wonderful weirdness that is that community. And when Teatro Zanzani folded up for uh America's Cup, I think the city lost a great a great deal, both in terms of the opportunities for artists as well as just simply just character. Uh so bringing this project back and at the scale that that is being envisioned right now, I think is is absolutely great, and hopefully you can help make this an ongoing institution for years to come. Thank you. Thank you. Deborah Bader, and then Christian Clayton. Hi. Thank you to the commission. I'm a working theater artist in San Francisco, and I was the resident costume designer for Teatra Zanzani, and I urge you to please bring it back. It provides wonderful work and opportunity to many people, and it flourishes, and we support the we support the fabric stores and the dollar stores and the department stores, and we buy and we make really beautiful things to delight our audience. And it's a real treat to be able to, I feel for myself. I have an opportunity to present the most wonderful creative and crazy things at Cinzani and the most lovely. And I'd really like for myself to come back, but more than that, the other theater workers in the area to have a jobs again when the jobs are getting smaller. I I designed for ACT2 and other places, and there's a lot of co-pros now. And so the amount of work and how many places actually have a costume shop in the Bay Area is shockingly small for such a large town. And so I ask you to please bring it back and let us continue to give the gift of Zinzani to the embarcadero in San Francisco and the tourists and everybody else, and a really really wonderful and unique evening out on the town. Thank you. Can you please state your name? It's it's beaver power. Yeah. It's what you think you didn't want to hear. Okay, thank you, Kristen Clayton, Kristen Clayton. And then Marvin Cassell. Hi, thank you so much for the opportunity to be here. My name is Kristen Clayton, and I have been a San Franciscan since um 1993, and a longtime Teatro Zinzani performer and opera singer. And um I also just want to piggyback on Beaver's comments about um having missed this show as a performer, and I have so many friends who constantly ask me when when is it coming back?
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