San Francisco Port Commission Meeting – August 11, 2020
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San Francisco Port Commission Meeting – August 11, 2020
The Port Commission met virtually on August 11, 2020, at 3:15 PM in response to the COVID-19 emergency. The meeting focused on economic recovery, rent relief for tenants, loan programs for micro-LBEs and crab fishers, waterfront development projects including Pier 70 and Piers 38/40, and a living shoreline project at Heron’s Head Park. The Commission also honored retiring Chief Operating Officer Byron Rhett and introduced new Diversity, Equity and Opportunity Manager Toni Autry.
Consent Calendar
- Approval of Minutes – July 14, 2020: Approved unanimously (4-0).
- Announcements: Members of the public were reminded of the 3-minute comment limit and instructions for remote participation.
Public Comments & Testimony
- Stacy Randecker (Petrero Hill resident): Urged the Commission to close the Embarcadero to vehicle traffic (at minimum from Third and King to Fisherman’s Wharf) to create safe outdoor space and support businesses during the pandemic, citing the Valencia Street model.
- Justin Baker (son of Byron Rhett): Thanked the Commission for honoring his father and highlighted Byron’s passion for public space and urban development.
- Herman Badgett (RDJ Enterprise): Supported the micro-LBE emergency loan program, noting the critical need for capital among small contractors.
- John Barnett (President, Crab Boat Owners Association): Thanked the Commission for the crab fisher loan program and emphasized the urgency of funding.
- Drew (operator of sailing school at South Beach Harbor): Reported that June and July charter revenues were down 92% and 97% respectively, and requested rent forgiveness for the months the business was forced to close.
- Pete Sitnik (Managing Partner, Waterbar): Supported the proposed percentage rent forgiveness program and urged expedited action, as his restaurant’s revenues remain 65–75% below pre-COVID levels.
Discussion Items
Executive Director’s Report
Elaine Forbes provided an update on the Port’s economic reopening and recovery, noting that the city’s reopening is paused due to rising COVID-19 cases. She announced the hiring of Toni Autry as the Port’s new Diversity, Equity and Opportunity Manager, and introduced her. Autry outlined the Port’s racial equity action plan, due December 31, 2020. Forbes also reported on the summer internship program (Opportunities for All) and delivered a tribute to Byron Rhett, who is retiring after 20 years at the Port. Multiple commissioners and staff members expressed their gratitude for Rhett’s leadership and mentorship. Public comment from Justin Baker (son) was received.
Item 7A: Micro-LBE Emergency Relief Loan Program ($1M from Southern Waterfront Fund)
Stephanie Tang presented the program, which offers zero-interest loans up to $50,000 to micro-LBEs financially harmed by COVID-19. Key changes since the initial informational item: removed PPP as a criterion, improved administrative process with a lottery to prioritize equity, and a short inquiry application. Commissioners discussed loan amounts; President Brandon proposed amending the maximum to $25,000 to reach more businesses, with the executive director allowed to increase for hardship. Commissioner Wuho raised concerns about ensuring the loans lead to business survival. The amendment was seconded and passed unanimously.
Item 7B: Crab Fisher Economic Assistance Loan Program ($1M from Capital Contingency)
Boris Ellipine presented the program for crab fishers impacted by the May 23rd Pier 45 fire. Loans of 0% interest, up to five years, with a tiered formula based on trap costs. Three changes since last meeting: eliminated late fees, added hardship provisions, and required a liability release. Public comment from John Barnett (Crab Boat Owners Association) was supportive. Passed unanimously.
Item 8A: Street Name Change – Channel Street to Mission Creek
Rod Iwashta and Mark Slutskin (Office of Community Investment and Infrastructure) presented the proposal to rename the navigable waterway to its common name, Mission Creek, without affecting residents’ addresses. Community outreach received unanimous support from the Mission Bay Citizens Advisory Committee and Southern Waterfront Advisory Group. Passed unanimously.
Item 8B: SFPD Marine Unit Dock Replacement – Authorization to Advertise for Bids
Noel Aquino presented the $1.33 million FEMA-funded project to construct a new dock for the SFPD Marine Unit at Hyde Street Harbor. The project includes a 20% DBE goal. Passed unanimously.
Item 9A: Exclusive Negotiating Agreement (ENA) for Piers 38 & 40 with Pacific Waterfront Partners
David Beaupre presented the RFP process and recommended entering negotiations with Pacific Waterfront Partners (PWP), the highest-scoring respondent. PWP’s vision includes a public playground, maritime uses, retail, and a total investment of $383 million. Simon Snellgrove (PWP) thanked the Commission. No public comment. Passed unanimously.
Item 9B: Informational – Pier 70 Mixed-Use District Project Status
Christine Maher and Jack Sylvan (Brookfield) updated progress: 75% of phase one horizontal improvements complete; vertical construction delayed due to COVID-19. Brookfield declined to exercise options on parcels A and E2 due to appraised values not reflecting current market conditions; both parties are disputing appraisals with a goal of transacting early next year. The model shows developer return dropping from 19% to 17.5–18.7%. The Port and Brookfield are exploring land bonds to improve project finances. Commissioners requested regular updates. No action taken.
Item 9C: Amendment to Pier 70 Special Use District Design – Allow 9 Stories in 90-ft Height Limit
Ryan Walsham and Christine Maher presented the amendment, which allows an extra floor (up to 9 stories) by reducing floor-to-ceiling heights, without increasing overall maximum height or total development capacity. The Planning Commission approved it unanimously in February. Passed unanimously.
Item 9D: Memorandum of Understanding for Pier 70 Infrastructure
Rebecca Benissini presented the MOU that assigns responsibility for public infrastructure to various city agencies (e.g., Public Works, SFPUC, SFMTA) and retains port management for parks and unique features. An overland flow issue on 20th Street is addressed with a short-term construction restriction and a long-term solution to be developed. Passed unanimously.
Item 9E: Informational – Opt-In Rent Deferral Program and Proposed Rent Forgiveness Strategy
Rebecca Benissini and Chrisia Jones presented results of the opt-in rent deferral program: 73 of 505 tenants opted in; July rent collection was 52% ($3.3M). The proposed rent forgiveness targets three groups: percentage rent tenants (up to 14 months of base rent forgiveness, earlier of stabilization or 14 months), select maritime tenants (3 months of base rent forgiveness), and LBE tenants (3 months). The total maximum base rent forgiveness is estimated at $12.7 million, partially offset by percentage rent. Public comments from two tenants stressed the need for rapid action. Commissioners expressed support but asked to consider expanding maritime forgiveness to six months. They agreed to hold a special meeting before the September 8 meeting to vote on the program.
Item 9F: MOU with OEWD for Use of Pier 29 for PPE Distribution
Don Kavanaugh presented a 30-day MOU allowing OEWD to use Pier 29 as a central PPE distribution hub for 1.5 million masks, 600,000 face shields, and 21,000 gallons of hand sanitizer. The Port will defer the $123,750 fee and seek reimbursement from state/federal programs. Passed unanimously.
Item 10A: Informational – Heron’s Head Park Living Shoreline Project
Carol Bach presented the project to address erosion and restore wetlands using a nature-based shoreline. The San Francisco Bay Restoration Authority has awarded $297,000 for phase one (two years of wetland revegetation). A sole-source contract with Literacy for Environmental Justice (LEJ) is proposed for native plant propagation and youth employment. The larger shoreline stabilization ($2.46 million) is unfunded but under grant applications. Commissioners praised the equity focus and plan to bring an action item in September.
Key Outcomes
- Votes on Action Items: All resolutions (No. 20-33 through 20-40) passed unanimously (4-0).
- Resolution 20-33 (Micro-LBE loan program) was amended to reduce the maximum loan from $50,000 to $25,000, and to allow the executive director to grant hardship increases.
- Special Meeting Scheduled: The Commission directed staff to arrange a special meeting before September 8, 2020, to approve the rent forgiveness program, with consideration of extending maritime tenant relief to six months.
- Pier 70 Updates: Staff will provide periodic updates on the appraisal process for parcels A and E2 and overall project status.
- Dedication: The meeting was adjourned in honor of Congressman John Lewis, as requested by President Brandon.
Meeting Transcript
President Brandon. Here. Vice President Adams. Commissioner Gilman. Present. Commissioner Wuho. Here. Vice President Adams. All right, Madam President, you do have a quorum. Okay, thank you. Item number two is the Pledge of Allegiance. I pledge allegiance. Pledge allegiance to the flag of the United States of America. And to the republic. One nation under God. With liberty, etc. Item number three, approval of minutes of the July 14th, 2020 port commission meeting. I still move. Second. President Brandon. Aye. Vice President Adams. Commissioner Gilman. Yes. Commissioner Wuho. Bye. The minutes have been up moved. Item number four announcements. Please be advised that a member of the public has up to three minutes to make pertinent public comments on each agenda item unless the port commission adopts a shorter period on any item. Please note that during the public comment period, the moderator will instruct dial-in participants to use their touchstone phones to register their desire for public comment. Audio prompts will signal to dial in participants when their audio input has been enabled for commenting. Please dial in only when the item you wish to comment on is announced. And a reminder reminder for our meeting presenters and participants. Please do mute your microphones and turn off your cameras when you are not actively presenting. And item number five is public comment on items not listed on the agenda. Thank you. We will open the phone lines with public comment on items not listed on the agenda for members of the public who are joining us on phone. Jenica will be our operator and will provide instructions now for anyone on the phone who would like to provide public comment. Thank you, President Brandon. At this time, we will open the queue for anyone on the phone who would like to make public comment on items not listed on the agenda. Please dial star three if you wish to make public comment. The system will let you know when your line is open. Others will wait on mute until their line is open. Comments will be limited to three minutes per person. The queue is now open. Please dial star three if you wish to make public comments. Thank you, Janica. Do we have anyone on the phone? Yes, President Brandon. We have one caller on the line at the moment.
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