Port Commission Meeting - Tuesday, May 12, 2020

The San Francisco Port Commission met on May 12, 2020, to discuss the Port's response to the COVID-19 crisis, including tenant rent relief, a food bank partnership, and the Army Corps flood resiliency study. The meeting also covered an amendment to allow an extra story in some Pier 70 residential buildings. Key actions included approval of a rent waiver for a pop-up food pantry and a consent calendar item to extend a construction contract.

Consent Calendar

• Item 9A: Unanimously approved (5-0) a retroactive authorization to modify Construction Contract No. 2810R for hazardous materials abatement at Building 49 and Cranes 14 and 30 at Pier 70, extending the completion date. (Resolution 2023)

Public Comments & Testimony

• Larry Collins (Pier 45 fish wholesale buyer) expressed appreciation for the farmers market but urged the Port to give fishermen similar consideration, noting that deferred rent is insufficient because their business has dropped 78-80%, and forgiveness is needed to keep the fleet alive. He emphasized that local fish provide food security.
• Susan Karasov (San Francisco resident) supported nature-based measures for sea level rise and requested that the Port use only local native plants in mitigation strategies.

Discussion Items

1. Executive Director's Report (Item 8): Michael Martin, Acting Executive Director, reported on Port COVID-19 response:

   • Seawall Lot 344 RV site for homeless is nearly ready for occupancy.
   • Pier 30-32 CityTestSF site has expanded to walk-in appointments.
   • 63 deployments as disaster service workers (51 individuals, about 20% of Port staff).
   • Ferry Plaza Farmers Market (CUESA) has implemented new health protocols, including mandatory seller rules, tripled hand-washing stations, and contactless curbside pickup. Additional space will be licensed for May 16.

2. Seawall Resiliency Program & Army Corps Flood Study (Item 10A): Brad Benson, Waterfront Resilience Director, presented an update:

   • The Army Corps study, originally planned as $3M/3 years, is now estimated at $20M/5 years, requiring a waiver from the Assistant Secretary of the Army.
   • The study covers the entire 7.5-mile Port waterfront plus Aquatic Park, analyzing flood risk 2040-2090 using five sea level rise curves.
   • LBE participation on the main contract has reached 18% overall (33% on recent task authorizations).
   • Commissioners requested a broader strategic roadmap for resilience, regular updates on federal/state infrastructure funding opportunities, and a list of LBE contractors.

3. Proposed Extended Tenant Rent Deferral Program (Item 11A): Chris Atanoli presented:

   • April collections: $6.1M invoiced, $3.3M paid (52% collection rate); 259 of 541 invoices paid (48% payment rate). Fisherman’s Wharf portfolio had 80% uncollected; China Basin had $1.2M uncollected.
   • A tenant survey (127 respondents) reported $90M+ in losses, 67% average revenue loss, and 3,500 jobs impacted.
   • Staff proposes an opt-in extended deferral from March 1 to December 31, 2020, with waivers of late fees if paid by year-end. Tenants must submit a statement describing COVID-19 impact, business plan, revenue projections, and proof of applying for relief programs. An opt-out mutual termination option is available for tenants who cannot recover.
   • Commissioner Gilman asked about stakeholder engagement on the requirements and total revenue loss projections. Commissioner Wuho emphasized the need for business plans to assess tenant viability and the importance of the opt-out process. Commissioner Macris supported broad eligibility but cautioned against overly easy early terminations. Staff will return on May 26 for authorization to extend the current deferral through July 31, and on June 9 for approval of the extended program.

4. Rent Waiver for SF-Marin Food Bank Pop-Up Pantry (Item 11B): Michael Martin presented:

   • The food bank currently serves 20,000 more households per week than pre-pandemic, and 90% of its 275 regular pantries have closed.
   • The pop-up pantry at Seawall Lot 337 (under lease to the Mission Rock project) would operate as a drive-through on Fridays, serving 300-1,200 families at no charge.
   • Staff recommended waiving the approximately $1,260/month in special event rent for the duration of the mayor’s emergency declaration. The item was approved unanimously (5-0).

5. Pier 70 Special Use District Design Amendment (Item 11C): Ryan Wassom presented:

   • The amendment, already approved by the Planning Commission, would allow residential buildings with a 90-foot height limit to have up to nine stories instead of eight by reducing floor-to-ceiling heights from 10 feet to 8 feet 8 inches (except ground floor at 15 feet).
   • For Parcel D, this could add about 18,000 gross square feet, increasing units from 134 to 148. Overall effect on all parcels is not yet determined.
   • Commissioners asked about the impact on affordable housing (20% inclusionary for rental, in-lieu fees for condos) and land value. Staff will provide a fuller analysis when the action item comes back. No action was taken; informational only.

Key Outcomes

• Approved (5-0): Consent calendar item 9A (contract modification).
• Approved (5-0): Rent waiver for SF-Marin Food Bank pop-up pantry (Item 11B).
• Directed staff: Return on May 26 to seek authorization for extending the current broad-based rent deferral through July 31, and on June 9 to approve the extended opt-in deferral program.
• Requested reports: Staff will provide a strategic roadmap for waterfront resilience, a list of LBE contractors on the Army Corps study, and projections on total revenue loss from percentage rent and parking. The executive director’s future reports will include updates on all Port COVID-19 projects (Pier 30-32 testing, Seawall Lot 344, pop-up pantry) and a list of open RFPs.