Port Commission Meeting - February 12, 2020

The San Francisco Port Commission met on February 12, 2020, to discuss a range of topics including the port's credit rating upgrade, biennial operating and capital budgets, development projects at Pier 70 and the former Potrero Power Station, a lease renewal for the Chowder Hut, a new pop-up activation program, and safety improvements along the Embarcadero. The meeting included public testimony on bicycle safety and the CBC project.

Consent Calendar

• Approved modification of Construction Contract No. 2809 for Pier 23 and 19 restroom upgrades with Hoi’s Construction Inc. (Resolution 2005).
• Approved authorization to execute a Memorandum of Understanding with the San Francisco Public Utilities Commission for temporary electrical service at Pier 70 (Resolution 2006).

Public Comments & Testimony

• Embarcadero Safety (Vision Zero): Over a dozen members of the public, including representatives from the San Francisco Bicycle Coalition, teachers, parents, and residents, urged the commission to support a fully protected bike lane along the entire Embarcadero. Many shared personal stories of dangerous conditions and near-misses. Speakers called for immediate action, citing the 2019 death of cyclist Tess Rothstein and the ongoing risk to vulnerable road users.
• CBC Project (Potrero Power Station): Katie Liddell (co-chair of Central Waterfront Advisory Group) expressed support for the project, noting community benefits and historic preservation. A representative from the YMCA also spoke in favor, citing the planned community center partnership.

Discussion Items

• Executive Director’s Report: Elaine Forbes announced that Moody’s upgraded the port’s credit rating from AA3 to A1, reflecting strong financial management. She also honored the late Stephanie Lazio Sincata, a long-term tenant and owner of the Alioto-Lazio Fish Company, requesting a moment of silence.
• Biennial Operating Budget (FY 2020-21 & 2021-22): CFO Katie Petruccioni presented a proposed $194 million budget for FY 2020-21, with $52 million in capital investments. The budget includes 11 new permanent positions for maintenance and equity, plus 11 project-funded positions. Commissioners discussed the need for a port representative on the city’s investment committee, staffing levels, and the importance of maintaining the entire waterfront. No vote was taken; the budget will return for approval on February 25.
• Biennial Capital Budget: Petruccioni outlined a $81.8 million two-year capital budget (11% increase over prior biennial), including a $25 million loan to the Mission Bay Ferry Landing project (pending RM3 litigation), $13 million for facility condition assessments (FERPA), and $6.3 million for the Southern Waterfront Beautification Fund. Commissioners requested a list of unfunded projects and a clearer five-year capital plan. No vote was taken.
• CBC Mixed-Use Project (Potrero Power Station): Staff and developer Tina Chang provided an update on the 29-acre project, which includes 2,600 housing units (30% affordable), 1.2 million sq ft of commercial space, and 7 acres of parks. The project requires port approval of a lease for shoreline open space and a consent to development agreement. Commissioners expressed strong support, noting community benefits and the extension of the Blue Greenway. No action taken; item will return for approval.
• Pier 70 Parcel E2 Lease: Staff proposed a 99-year ground lease for Parcel E2 at an appraised value of $5 million (down from a $11.3 million down-market threshold). The developer, Brookfield, would also exercise the option for Parcel A (office) with an accelerated 180-day closing. Commissioner Macris argued the parcel is worth $28 million and opposed the appraisal. Commissioner Wuho noted that the accelerated timeline offsets the lower value. The commission voted to continue the item to the February 25 meeting for further discussion.
• Chowder Hut Lease Renewal: Staff presented a 10-year lease renewal with Boudin Bakeries for the Chowder Hut at Fisherman’s Wharf, including $800,000 in capital improvements. The tenant pays 9% of gross revenue and has strong sales. Commissioners were supportive; the item will return for formal approval.
• Pop-up Activation RFQ: Staff proposed issuing a Request for Qualifications to create a pool of operators for short-term activations at five port open spaces (Pier 29, Piers 30/32, Bayfront Park, Crane Cove Park, Heron’s Head Park). Commissioners supported the concept and asked for an update on responses later in the year.
• Embarcadero Safety Improvements: SFMTA planners presented Vision Zero quick-build projects, including a two-way protected bike lane from Mission to Folsom and safety improvements at Pier 35. Public comment overwhelmingly demanded a full-length protected bike lane. Commissioners expressed urgency and asked SFMTA to return within three months with a detailed plan of action, including trade-off analysis and timeline.

Key Outcomes

• Credit Rating Upgrade: Moody’s upgraded the port’s credit rating to A1 (from AA3), reducing borrowing costs.
• Budget Approval Delayed: The February 25 meeting will include final votes on the operating and capital budgets.
• Pier 70 Lease Continued: The Parcel E2 lease vote was postponed to allow further discussion of the appraisal.
• Embarcadero Safety Plan Ordered: The commission directed SFMTA to return in three months with a concrete plan for a protected bike lane along the entire Embarcadero.
• Future Agendas: Items scheduled include a public meeting on the World Trade Center building lease, an update on the Navigation Center, and a report on the pop-up activation RFQ results.