San Francisco Port Commission Meeting - September 8, 2020

The San Francisco Port Commission met on September 8, 2020, at 3:15 PM. The meeting covered the Executive Director's report on the Hyde Street Harbor oil sheen, COVID-19 economic recovery, a video showcasing port staff's pandemic response, an equity update, and a farewell to retiring Assistant Deputy Director Mike Nerney. The main agenda item was an informational presentation on the RFP responses for the development of Piers 30-32 and Seawall Lot 330, featuring presentations from three teams. No formal votes were taken on the RFP.

Consent Calendar

• The minutes from the August 25, 2020 special port commission meeting were approved unanimously via roll call.

Public Comments & Testimony

• On items not listed on the agenda: No callers.
• On the Executive Director's Report: Ellen Jonk, co-chair of the Maritime Commerce Advisory Committee, commended Mike Nerney for his leadership and collaboration, and expressed gratitude for his service.
• On Item 7A (Piers 30-32 / Seawall Lot 330 RFP):
  • Russell, a District 6 resident, expressed strong support for the development, emphasizing the need for housing and urging the commission to expedite the process.
  • John William Chapleton, historian and co-founder of National Black Business Month, urged the port to ensure equity and diverse ownership in the project, noting the historical presence of African Americans on the waterfront.
  • John, a longtime waterfront-area resident, voiced concerns about the massing of the Strata proposal on Seawall Lot 330, saying it could create a wall-like effect and draw neighborhood opposition.

Discussion Items

• Executive Director's Report (Item 6A):
  • Hyde Street Harbor Oil Sheen: Since spring 2020, recurring petroleum sheens were observed. On July 9, 2020, a primary source was identified near former Wharf J10. The port implemented containment measures, including 800 feet of petroleum containment boom. The U.S. Coast Guard transferred lead agency to the EPA. Investigation and cleanup continue.
  • Economic Reopening and COVID-19 Response: The port's shared spaces program received 17 applications, with 11 approved and six under review. Outdoor dining is sustained; indoor dining remains closed. The port supported citywide COVID-19 efforts with testing sites, food distribution, and navigation centers.
  • Staff Video: A video highlighted port staff's deployment to disaster service roles, including testing sites at Piers 30-32, food bank operations at Lot A, and shelter-in-place locations. Commissioners praised the video and requested broader publicity.
  • Equity Update: The port is developing a race equity action plan, with a listening tour launching in late September. The port hosted a contract monitoring mentor protege program.
  • Farewell to Mike Nerney: Commissioners, staff, and public commenters celebrated Nerney's 21-year career, praising his role in growing the cruise industry and his positive demeanor. He received a standing tribute and a letter from the Maritime Commerce Advisory Committee.
• Commissioners' Report (Item 6B): No additional items.
• Informational Presentation on Piers 30-32 and Seawall Lot 330 RFP (Item 7A):
  • Staff presented the RFP process, noting five initial responses, two deemed non-responsive, and three qualifying teams: Strata/Trammell Crow Company (Strata/TCC), Tishman Spire Worldwide (Tishman Spire), and Vornado Realty Trust.
  • The scoring panel (five members) evaluated proposals based on design, financial strength, capacity, and experience. Tishman Spire scored highest (89.33/130), followed by Strata (80.33) and Vornado (75.33).
  • Each team presented 15-minute overviews:
    • Strata/TCC: Proposed reducing the pier footprint by 45% (rebuilding 7.2 acres), 376,000 sq ft office, 31,000 sq ft retail, 161,000 sq ft open space, a floating public pool, 850 housing units (57 inclusionary + 150 standalone affordable), 25% affordable on-site. Underlined engineering certainty and a track record with complex waterfront projects.
    • Tishman Spire: Proposed retaining the full pier deck, 520,000 sq ft office, 70,000 sq ft retail/exhibition, 58,000 sq ft maker space, a 41,000 sq ft cultural building for port revenue, 460 housing units (50% affordable), 7.5 acres of public open space, and a deep berth. Emphasized experience building Mission Rock and other San Francisco projects.
    • Vornado: Proposed 850,000 sq ft office, 150,000 sq ft retail/community, a 12-acre green roof park (8 acres rooftop), 360 housing units (25% affordable), and self-financing without public subsidies. Highlighted financial capacity and experience with large public-private partnerships (e.g., Farley Building).
  • Commissioners questioned teams on infrastructure investment, public financing risks, unit mix, financial return timelines, the feasibility of the floating pool, and equity/inclusion plans.
• New Business (Item 8): Commissioner Wuho requested a future update on tenant rent forgiveness and COVID-19 compliance. Vice President Adams requested an update on hiring to replace retiring staff.

Key Outcomes

• The minutes from August 25, 2020 were approved unanimously.
• The RFP presentations were informational; no action taken. Staff will return on September 22, 2020 for a possible action item to enter exclusive negotiations with the top scorer (Tishman Spire).
• Commissioners requested staff to provide technical memos (financial feasibility, engineering resilience) and to present findings from the Northern Advisory Committee meeting (scheduled for September 16).
• Future commission agenda items will include updates on tenant relief, COVID-19 compliance, and staff hiring plans.
• Commissioner Brandon requested the top scorer (Strata/TCC) to provide a preliminary timeline for project completion, including best, likely, and worst-case scenarios, and a detailed equity, diversity, and inclusion plan.