San Francisco Port Commission Meeting – September 22, 2020
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San Francisco Port Commission Meeting – September 22, 2020
The San Francisco Port Commission held a regular meeting on Tuesday, September 22, 2020, starting at 3:15 p.m. and adjourning at 7:26 p.m. Commissioners Kimberly Brandon (President), Willie Adams (Vice President), Gail Gilman, and Dorian Wuho were present. The meeting covered a range of topics including the Executive Director's report, consent calendar, informational presentations on Mission Rock CFD financing and the Embarcadero Seawall Multi-Hazard Risk Assessment, a proposed lease for the historic ferryboat Klamath, approval of a lease with Andre Boudin Bakeries for the Chowder Hut, and authorization to begin negotiations for an Exclusive Negotiating Agreement (ENA) with Strada Trammell Crow Company for Piers 30-32 and Seawall Lot 330.
Consent Calendar
- Item 7A: The Commission unanimously approved Resolution No. 20-43, authorizing staff to advertise a Request for Qualifications for two Micro LBE Set-Aside contracts for As-Needed Public Relations, Communications, and Media Relations Services.
Public Comments & Testimony
- Item 9A (Seawall Risk Assessment): Three public speakers commented: Taylor Safford (Pier 39 CEO) congratulated staff on the milestone and praised proactive tenant outreach. Susan Karasov (San Francisco resident) urged inclusion of biodiversity and use of native plants. Fran Weld (San Francisco Giants SVP) commended the port's inclusive, multi-disciplinary approach. A fourth speaker, Flick McGuran (Pier 23 Cafe), expressed concern about construction impacts on the historic character of Fisherman's Wharf and Pier 39.
- Item 10A (Klamath Lease): Alice Rogers, a waterfront land use plan participant, urged support for the proposal, calling it a win-win for the waterfront.
- Item 11B (Piers 30-32 ENA): Seven callers provided extensive public comment. Speakers included Alice Rogers (again), John McGrath, Barbara Inaba, Mark Dragon, Carol Hart, David Horwitz, Alan Dundas, Russ McGillen, Thomas Williams, Earl G., Rick Dickerson, and John Cornwell. Key concerns raised: non-compliance with Proposition B height limits (proposed 160-180 ft towers vs. 105 ft base), excessive massing creating a "wall" on the waterfront, severe traffic congestion (especially at Beale/Bryant and Bay Bridge approaches), inadequate parking, oversaturation of high-end housing and office space, and the need for more public open space (e.g., ball fields, playgrounds) instead of a luxury floating pool. Several speakers urged the Commission to terminate the RFP process or require significant redesign and community engagement. Mark Dragon specifically noted that the Strata proposal offers a 1.5 million dollar annual land lease with an 18% IRR hurdle, while the Vornado proposal would deliver $135 million in participatory rent over 75 years.
Discussion Items
- Executive Director’s Report (Item 6A): Director Elaine Forbes opened with a tribute to Supreme Court Justice Ruth Bader Ginsburg, then provided an equity update on the port's internal anti-racism work, an economic reopening update (indoor dining at 25% capacity possible end of September if COVID metrics allow), a budget update ($124.8 million total, with a $10 million economic recovery reserve), and announced the opening of Crane Cove Park on September 30, 2020. The park is a 7-acre waterfront park in District 10 with direct bay access, historic interpretation, and sea level rise preparedness.
- Commissioners' Report (Item 6B): Commissioners expressed excitement about Crane Cove Park and thanked staff.
- Mission Rock CFD Financing (Item 8A): Phil Williamson and Wyatt Donnelly presented an informational update on the financing structure for Phase I horizontal improvements at Seawall Lot 337. The bond will fund approximately $35 million of the $265 million Phase I budget, using a Community Facilities District (CFD) with a 3-to-1 value-to-lien ratio. Commissioner Wuho asked about the number of CFD financings in the city, market conditions, and the difference between public and private financing. Port staff noted strong demand for CFD bonds statewide and no delinquencies in San Francisco. The project is on track with four leases signed and construction starting in coming months.
- Embarcadero Seawall Multi-Hazard Risk Assessment (Item 9A): Brad, Stephen Real, and Lindy Lowe presented findings from the MHRA, which projects up to $30 billion in combined seismic and flood damages by 2100 if no action is taken. Earthquake risk is high north of the Bay Bridge due to deep Bay muds and liquefaction. Flood risk from sea level rise will cause significant overtopping within 30–50 years. The team presented seismic and flood mitigation measures (e.g., buttresses, deep soil mixing, raised marine structures) and a long-term planning process (Envision). Equity updates included LBE participation rates: CH2M contract at 17.1% (goal 22.9%), Civic Edge at 35.4% (goal 36%). President Brandon requested a detailed report on contracting dollars by ethnicity, highlighting concerns about low payments to African American firms. The Commission directed staff to provide a full equity and contracts report at a future meeting.
- Klamath Ferryboat Lease (Item 10A): Dominic Moreno presented a proposal to lease Pier 9 South to the Bay Area Council for 15 years with two five-year options. The historic ferryboat Klamath would be rehabilitated and serve as BAC headquarters, including public museum space, event space, and subtenant offices. The proposal would reactivate a dormant berth and provide public access. Commissioners expressed support, noting the project's alignment with the Historic Vessel Policy and the strategic plan. No changes from closed session discussions were noted.
- Chowder Hut Lease (Item 11A): Jay Edwards presented a 10-year lease with a 5-year option for Andre Boudin Bakeries at the Chowder Hut (Fisherman's Wharf). The lease includes a $4,000 monthly credit for janitorial services of public restrooms. The tenant plans an $800,000 glass atrium with retractable roof to expand outdoor dining. The Commission approved the lease unanimously.
- Piers 30-32 & Seawall Lot 330 ENA Authorization (Item 11B): Peter Albert presented the RFP process, which resulted in Strada TCC scoring highest (109 out of 130 points). The proposal includes a rebuild of Piers 30-32 (376,000 sq ft office, 31,000 sq ft retail, 160,000 sq ft open space, a floating pool/water room) and 850 housing units on Seawall Lot 330 (643 market-rate, 57 inclusionary, 150 entirely affordable). The ENA would authorize staff to negotiate a multi-year development agreement. Extensive public comment raised concerns about height, massing, traffic, and affordability. Strada's Jesse Blout responded that the project is a starting point and they are committed to community engagement. Commissioners emphasized that this is the beginning of a long process (2-6 years) and that the ENA will include benchmarks for community input. The Commission voted unanimously to authorize negotiations.
Key Outcomes
- Consent Calendar (Item 7A): Approved unanimously (Resolution 20-43).
- Chowder Hut Lease (Item 11A): Approved unanimously (Resolution 20-44).
- Piers 30-32 ENA Authorization (Item 11B): Approved unanimously (Resolution 20-45).
- Directives: Staff directed to prepare an equity and contracts report for the resilience program and to provide regular briefings on the Embarcadero Seawall program leading up to Proposition A project selection. The Commission also requested an update on the Teatro Zinzanni project and an update on cruise ship operations.
- Adjournment: The meeting was adjourned at 7:26 p.m. in memory of Supreme Court Justice Ruth Bader Ginsburg.
Meeting Transcript
Good afternoon. This is a meeting of the San Francisco Port Commission for Tuesday, September 22nd, 2020. President Brandon called the meeting to order at 3 15 p.m. Item number one is roll call. President Kimberly Brandon. Vice President Willie Adams. Commissioner Gail Gilman. Present. Commissioner Dorian Wuho. Commissioner Wuho. Hello. Thank you. Thank you, Commissioner. Madam President, all members of the Commission are present, present. Item number two is the Pledge of Allegiance. I pledge your allegiance to the flag of the United States of America. And to the Republic. For which it stands. One nation. Under God. Under God. Indivisible. With liberty and justice for all. Item number three is approval of minutes for the September 8th, 2020 Port Commission meeting. So moved. Second. President Brandon. Aye. Vice President Adams. Yes. Commissioner Gilman. Commissioner Gilman. I think you're on mute. Apologies, yes. Thank you. And Commissioner Wuho. Hi. Motion passed as a man on the minutes of the August 11th 2020 meeting RF. All right, that brings us to 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 a touchstone phone 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 when the item you wish to comment on is announced. Please note if you are watching this meeting on SFGov TV, streaming on the internet, there is a broadcasting delay. So when the item you want to comment on is announced, dial 1415, 65501, and then enter access code 146127442. Please then mute the volume on your computer and listen only through your telephone because of that broadcasting delay. And when the item uh you want to make public comment on is announced, dial star three to raise your hand to comment, and then listen for the audio prompt to signal your turn to comment. And a reminder for our meeting presenters and participants to please mute your microphones and turn off your cameras when you're not presenting. And that brings us to item number five, public comment on items not listed on the agenda. Thank you.
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