Port Commission Meeting, September 10, 2019
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Port Commission Meeting, September 10, 2019
The Port Commission met on September 10, 2019, to act on several items including a foreign trade zone agreement, a hotel/theater development, and hazardous waste contracts, as well as to receive updates on the Mission Rock project and the draft Waterfront Plan. All votes were unanimous.
Consent Calendar
- Approval of minutes from August 13, 2019.
- Resolution 19-34: Approval for commissioners to travel to Norfolk, VA for the American Association of Port Authorities Annual Convention (October 13–16, 2019).
Public Comments & Testimony
- Bruce Agate (South Beach/Rincon/Mission Bay Neighborhood Association) expressed strong support for the Mission Rock project, emphasizing the need for activated open space and 40% affordable housing, and praised the developers' community engagement.
- Romula Saison Lou (Contract Monitoring Division) thanked the port for supporting Local Business Enterprises and noted the Mission Rock team's commitment to LBE participation.
- Ken Nim (Office of Economic and Workforce Development) updated on workforce training programs linked to Mission Rock, including expansion of City Build Academy.
- Jack Baer (San Francisco Giants) expressed gratitude for the partnership and noted that the park’s inclusion in Phase 1 was a key community goal.
- Linda Richardson (resident, land use expert, Waterfront Plan advisor) supported the TZK Broadway project, citing alignment with port strategic objectives and community engagement.
- Leonard Sol (Carpenter’s Union Local 22) urged approval of the TZK project to create jobs for members.
- Randall Scott (Fisherman’s Wharf Community Benefit District) supported removal of BCDC’s 50% rule in Fisherman’s Wharf to allow seismic upgrades without reducing pier footprints.
- Alice Rogers (South Beach/Rincon/Mission Bay Neighborhood Association) commended the Waterfront Plan’s goal-based approach and requested clarifications that office use should be a financial driver, not a standalone use.
- Zach Fournette (Fisherman’s Wharf Restaurant Association) supported removal of the 50% rule, citing improvements at Pier 43 and Jefferson Street.
Discussion Items
- Executive Director’s Report (Item 9A): Elaine Forbes reported:
- Fire Station 35 at Pier 22½ expansion: first floating facility; building permits issued, construction starts September 2019, completion April 2021. Groundbreaking tentatively January 2020.
- Pier 94 Backlands Improvement Project won two awards (including Collaborative Partnering Award), to be presented September 26, 2019.
- Coastal Cleanup Day: September 21, 2019, 9 a.m.–noon, at multiple port locations. Port in friendly competition with Oakland.
- Foreign Trade Zone Agreement with Pacific Cycle (Item 11A): Brendan O’Mare presented. Pacific Cycle to activate two Vacaville distribution centers as FTZ subzone for 5 years with three 5-year renewal options. Port collects annual administrative fees (approximately $5,000 initial, $2,000 annual). FTZ status allows duty deferral and streamlined customs for re-exports. Commissioner Wuho noted previous FTZ operators (e.g., Chevron). Approved as Resolution 19-35.
- Mission Rock Phase 1 Budget & Parks Plan (Item 12A – Informational): Rebecca Benassini and Chrisia Tano Lee presented:
- Phase 1 horizontal costs: $145 million; total with entitlement costs $175 million; including developer return $265 million.
- Balanced budget relies on net land revenues ($42.2 million), community facilities district bonds, and tax increment.
- Cost increase of $49 million since 2018 approvals, mainly from detailed design of China Basin Park, streets, and utilities, plus site-wide soft costs.
- Parks plan: 5.5 acres China Basin Park, 1 acre Mission Rock Square, 1.5 acres other spaces. Managed by single entity via management and concession agreement. Programming limits: max 100 event days per space, of which 24 may be ticketed and 18 private; paid events cannot exceed free events.
- Operating budget at full build-out: ~$5 million, funded by CFD fees, sponsorships, and concessions. Excess revenue after reserves may go to Port Harbor Fund.
- Developer return estimated at $90 million (up from $40 million at approvals due to higher costs and longer bond timing). Port’s NPV return across all phases: $190 million (down from $198 million).
- Informational only; action on budget and parks plan scheduled for September 24, 2019. Staff will also seek resolution of support for nonprofit status for district energy and blackwater treatment entities.
- TZK Broadway Hotel/Theater Development (Item 12B): Ricky Tidani and Jay Wallace presented:
- 192-room hotel, dinner theater (Teatro Zinzani), 14,000 sq ft public open space on Seawall Lots 323/324 (59,000 sq ft total).
- 50-year lease with one 16-year extension. Project cost $142 million. Developer will pay port staff and transactional costs during LDDA period.
- Public benefits: bringing Teatro Zinzani back, privately funded open space, LBE and local hiring programs, new jobs, and increased port revenue.
- CEQA mitigated negative declaration adopted. Commission approved Resolution 19-36 (lease disposition and development agreement, lease, schematic drawings, and CEQA findings).
- Next steps: Board of Supervisors approval in September/October 2019; close of escrow by October 2020; construction 1.5–2 years, completion by end of 2022. Commissioner Gilman and Wuho urged acceleration; staff noted construction drawing and permitting timelines.
- Hazardous Waste Disposal & Marine Vessel Salvage Contracts (Item 13A): Albi Udam presented. Four contracts awarded:
- Clean Harbors Environmental Services, Environmental Logistics, NRC Environmental Services, Silverado Contractors.
- Each contract: not to exceed $300,000, initial 4-year term with 1-year extension option. LBE subcontracting goal 5%; actual commitments averaged ~7%.
- Approved as Resolution 19-37.
- Draft Waterfront Plan Review Process (Item 14A – Informational): Diane Oshima presented:
- Summer outreach included 200+ on boat tour, multiple advisory group meetings, online survey (high agreement levels with plan goals).
- Key public comments: strong support for maritime diversity, water recreation, clarifying that office use in historic pier projects is a financial driver for public benefits, and addressing transportation congestion via bike/pedestrian safety and water transit.
- Plan will be refined based on comments (track changes for policy language), then CEQA environmental review starts by end of 2019.
- Staff working on conforming amendments to City General Plan and Planning Code, and on BCDC special area plan amendments to remove 50% rule in Fisherman’s Wharf and update policies for resilience and sustainability.
Key Outcomes
- Resolutions Approved (all unanimous):
- 19-34: Travel authorization.
- 19-35: Pacific Cycle foreign trade zone operators agreement.
- 19-36: TZK Broadway LDDA, lease, schematic drawings, and CEQA findings.
- 19-37: Hazardous waste disposal and vessel salvage contracts.
- New Business: Commissioner Wuho requested future informational item on park activation for the TZK project. Vice President Adams requested staff to review and bring back proposals on officer term limits and commission secretary provisions (possible action at next meeting). Staff also to research a commission rules of conduct based on port values.
- Next Meetings: Mission Rock Phase 1 budget and parks plan action on September 24, 2019. Waterfront Plan refinements and CEQA initiation ongoing.
Meeting Transcript
President Kibbert Brandon. Here. Commissioner Gail Gilman. Here. Commissioner Doreen Wuho. Here. Item two approval of minutes for the August thirteenth, twenty nineteen minutes. So move. Second. Is there any public comment on the minutes? Seeing none. All in favor? Item three, public comment and executive session. Motion to a move into executive session. Second. All in favor? Conference with legal counsel regarding system and anticipated litigation matters. Second. All in favor. Aye. Aye. I pledge allegiance to the flag of the United States of America. And to the Republic for which it stands. One nation under God and invisible with liberty and justice for all. Please be advised that a ringing of and use of cell phones, pagers, and similar sound producing electronic devices are prohibited at this meeting. Please be advised that a chair may order the removal from the meeting room of any person responsible for the ringing over use of a cell phone. Pager or other similar sound producing electronic device. Please be advised that a member of the public has up to three minutes to make pertinent public comments on each agenda item on a support commission adopts a shorter period on any item. Item eight, public comment on items not listed on the agenda. Is there any public comment on items not listed on the agenda? Seeing non-public comment is closed. Item nine A, Executive Director's Report. Good afternoon. President Brandon, Vice President Adams, members of the Commission, members of the public and port staff. I am Elaine Forbes, the Ports Executive Director. I have three items to report today. First, I'd like to update you on the fire station at Pier, the fire station at Pier 22 and a half, the expansion project. This will be the port's first floating facility, and we're very excited about this important life safety project. We have issued the first of two in a series of building permits and construction activity is set to start this month. The project should be completed April of 2021. The initial work will consist of demolition of the existing finger pier and the fire boat shed located behind the historic firehouse. And we are anticipating a groundbreaking ceremony with our our partners, the fire department and public works department, tentatively scheduled for the first week of January, but we'll get to more detail. So we're very excited to see that project break down, uh break ground. Second, I'd like to congratulate Port staff on winning awards for the Pier 94 Backlands Improvement Project. They won two awards. Congratulations to our port team. And also we've uh we've won the collaborative partnering award. Uh this is the second annual partnering award, and the award will take place September uh 26, 2019. So it's very exceptional that our project team has won two awards on this project, so I'd like to congratulate Uday Prasad, Ken Chu, Catherine Purcell, Carol Bach, Tim Leong, Evelyn Underdong, and Jakob Opik. Uh we're very, very proud both of the project and of these accomplishments.
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