San Francisco Port Commission Meeting – October 13, 2020

The San Francisco Port Commission met on Tuesday, October 13, 2020, at 2:08 PM, adjourning at 4:46 PM. Commissioners Kimberly Brandon (President), Gail Gilman, and Doreen Wuho were present; Vice President Willie Adams was absent. The meeting covered consent items, an informational presentation on the rehabilitation of two historic buildings at Crane Cove Park, approval of a Foreign Trade Zone operations agreement with DHL, and updates on port operations, equity, economic recovery, and environmental remediation.

Consent Calendar

• Item 10A – Extension of MOU for Pier 29 PPE Distribution: The commission unanimously adopted Resolution 2046, approving a 60-day extension of the memorandum of understanding with the San Francisco Office of Economic and Workforce Development for use of Pier 29 as a central location for receiving and distributing personal protective equipment (PPE) to nonprofits, along with rent deferral for that use.

Public Comments & Testimony

• Public Comment on Items Not on the Agenda: Alex Lanceburg, a 20-year neighbor of the Port, expressed strong concern about the rendering plant at Pier 90/94 backlands, calling it a “noxious nuisance” especially during summer. He stated that promised state-of-the-art odor control and a community hotline had not been maintained, and urged the Port to enforce its lease or shut down the operation if the lessee fails to correct the issue.
• Public Comment on Executive Director’s Report:
  • Jay Wallace (TGK Broadway LLC) thanked Port staff for their work on the Teatro Zanzani project, reaffirmed full commitment to the project, and noted that financing is currently bleak due to COVID-19 but that the market may recover toward the end of 2021.
  • Francisco da Costa commented on the need for clearer presentations during virtual meetings, requested more frequent updates on the Seawall project, and emphasized that the Port’s 7.5-mile jurisdiction requires broad public outreach.

Discussion Items

• Executive Director’s Report (Item 9A): Elaine Forbes provided a comprehensive update:
  • Equity: The Port is in the final two weeks of its Phase 1 racial equity action plan listening tour; Stephanie Tang will replace Boris Delapine as the Port’s representative to the LBE Advisory Subcommittee; the Contract Monitoring Division is preparing an availability and utilization study of minority- and women-owned businesses.
  • Economic Recovery: The San Francisco Economic Recovery Task Force released 41 policy recommendations; Mayor Breed announced first steps including a permanent shared streets program, direct business funding, a pilot basic income for artists, and fee/tax waivers for closed businesses. The Port supports these efforts.
  • Port Reopening: Updated Pier 50 COVID-19 health and safety plans were approved by the City Administrator; 80% of maintenance staff have returned to duties, with 20% deployed as disaster service workers through end of 2020.
  • Hyde Street Harbor Petroleum Seepage: The U.S. Coast Guard transferred federal authority to the EPA. Over 140 gallons of oil and 1,300 gallons of oily water have been removed; the Port has committed over 3,000 personnel hours and approximately $30,000 in materials. The area of interest has expanded to 600 feet of shoreline. The EPA approved a work plan on October 2, 2020.
  • Teatro Zanzani (TZK): The lease disposition and development agreement (LDDA) is fully executed. TZK has invoked a force majeure extension due to COVID-19’s impact on hospitality financing. The one-year LDDA term has not yet started; staff will negotiate the force majeure duration and provide updates.
  • Waterfront Development Process: Mike Martin detailed the RFP process used for Piers 38-40 and Piers 30-32/Seawall Lot 330, emphasizing community engagement, an impartial scoring panel, and post-selection negotiations. The process follows the updated Waterfront Plan.
• Commissioner Comments: Commissioners praised the clarity of the process, reiterated the importance of transparency, and requested quarterly informational updates on the Seawall project. On TZK, Commissioner Wuho expressed hope for the project’s cultural value and concerns about delays; staff clarified that the force majeure extension discussion is ongoing.
• Item 11A – Informational Presentation on Rehabilitation of the Kneass Building and Building 49 (Crane Cove Park): Rebecca Benassini presented the proposed competitive solicitation strategy for the two historic buildings adjacent to Crane Cove Park.
  • Building 49: ~8,000 sq ft, single story, will receive core/shell improvements including a public restroom by fall 2021; no seismic upgrade (occupancy limited to 100); listed on historic register. NICE Building: ~13,500 sq ft on two levels, deteriorated, removed from public trust (flexible uses), eligible for historic listing.
  • Minimum RFP Goals: At least one food & beverage location, one watercraft rental/storage/sales facility, and one community-serving use. Pre-development cost estimate: $10–15 million.
  • Process: Staff will engage the Southern Advisory Committee and other community groups (youth, elder, at-risk populations) to define community values, then return to the Commission for approval to issue an RFP.
  • Commissioner Feedback: Commissioners emphasized community-serving uses, suggested site tours with historical commentary, and asked about possible office use, opening walls to the park, and historic preservation restrictions. Staff confirmed that Building 49 already has planned openings consistent with Secretary of the Interior standards, and the NICE building has large roll-up doors.
• Item 12A – Operations Agreement with DHL Global Forwarding (Foreign Trade Zone No. 3): Brendan O’Mare presented the request for approval of a five-year operations agreement (with one four-year renewal option) for DHL to operate a usage-drive site at its Brisbane, California warehouse. The Port of San Francisco has been grantee of Foreign Trade Zone No. 3 since 1948. DHL, a global logistics company founded in San Francisco in 1969, has 19 active FTZ locations and has been approved by the FTZ Board and U.S. Customs. The annual fee covers administrative costs. Resolution 2047 was adopted unanimously.

Key Outcomes

• Adopted Resolutions:
  • Resolution 2046 (Consent Calendar – Pier 29 PPE extension): Unanimous.
  • Resolution 2047 (DHL Foreign Trade Zone operations agreement): Unanimous.
• Directives and Next Steps:
  • The Executive Director will investigate the rendering plant complaint raised in public comment.
  • Staff will provide quarterly updates on the Seawall resiliency program and on Teatro Zanzani milestones.
  • For Item 11A, staff will engage the Southern Advisory Committee and other community groups, aiming to bring back a refined RFP proposal to the Commission in November or December 2020, with an RFP issuance expected early 2021.
  • The Port will respond to Teatro Zanzani’s force majeure request and establish metrics for monitoring the pandemic’s impact on financing.