San Francisco Port Commission Meeting - March 23, 2021

The Port Commission met on March 23, 2021, from 2:30 PM to 5:49 PM, to address a range of financial, operational, and equity matters. The meeting included tributes to former Commissioner Anne Halsted, discussion of the port's severe revenue losses due to COVID-19, approval of a $68 million bond issuance for the Mission Rock development, extension of a shelter site agreement, and award of a construction contract for Crane Cove Park.

Consent Calendar

• Approval of Minutes (March 9, 2021): The minutes were adopted unanimously.
• Executive Session: The commission voted unanimously to hold a closed session to discuss litigation and attorney-client privileged matters, then reconvened in open session without disclosing any discussions.

Public Comments & Testimony

• Executive Director’s Report:
  • Faye Sen (President, Treasure Island Development Authority) paid tribute to Anne Halsted, praising her civic dedication.
  • Wallace Lee (on behalf of Susan Barkendale) commended the Port Commission for its responsiveness to concerns about the Embarcadero Safe Navigation Center, noting that issues have abated recently.
  • Bonnie Fisher proposed a citywide dedication event and commemorative plaque for Anne Halsted at the ferry terminal plaza, pledging to raise funds and work with port staff.
• Item 10A (Budget Presentation): No public comments were received.
• Item 11A (Mission Rock Bonds): No public comments were received.
• Item 11B (Shelter MOU): No public comments were received.
• Item 12A (Crane Cove Park Contract): No public comments were received.

Discussion Items

• Executive Director’s Report (Item 9A):
  • Director Elaine Forbes reported on the one-year anniversary of shelter-in-place, the city's imminent move to the orange tier, and the port's equity initiatives. She noted that the Embarcadero Safe Navigation Center now operates with 88 guests due to social distancing, and that unsheltered homeless counts in the area dropped from 179 (two years ago) to 60. The SS Jeremiah O'Brien returned to Pier 45. Forbes also delivered a tribute to former Commissioner Anne Halsted, who passed away on March 13, 2021. Commissioners and staff added personal remarks, with Commissioner Wuho and Vice President Adams condemning anti-Asian violence and the Boulder shooting.
• Fiscal Year 2021-22 Supplemental Budget (Item 10A):
  • CFO Katie Patruccioni and Finance Director Nate Cruz presented a dire financial outlook: port revenue is down 45% overall, with tourism-dependent tenants down 75%. Unpaid rent has risen from $3.5 million (pre-COVID) to $22 million. A five-year recovery is projected, with total revenue loss exceeding $100 million. The supplemental proposes $12.5 million in operating savings (including a soft hiring freeze and up to five layoffs as a last resort) and a $38.3 million capital defunding to replenish fund balance. Commissioners Wuho and Gilman questioned the $3 million rent increase at Pier One (due to a market reset with master tenant Prologis) and suggested negotiating a delay or reduction. Commissioner Brandon asked about compliance with the port's capital investment and reserve policies; staff acknowledged the policies are not being met and requested a deferral. The presentation will be brought back for a vote at the next meeting.
• Mission Rock Community Facilities District Financing (Item 11A):
  • Project Manager Raven Anderson requested approval to issue up to $68 million in bonds to replace high-cost developer equity (18% return) with low-interest public financing. Phase 1 includes 537 homes (199 below-market-rate), 550,000 sq. ft. of office, retail, and 5.5 acres of parks. The bond would be secured by special taxes; the appraised value of the CFD leasehold has increased from $130 million to $334 million, allowing for the larger issuance. Commissioner Burton asked about bond buyers (institutional investors) and the impact of COVID on office demand; staff noted that the city's general fund is not at risk and that the developer is betting on recovery. Commissioner Wuho supported the issuance, and the resolution passed unanimously.
• Amendment to Shelter Site MOU (Item 11B):
  • Deputy Director Rebecca Benassini presented an amendment to the MOU with the Human Services Agency for a temporary shelter site at Seawall Lot 344 (Backlands). The amendment extends the term to October 31, 2021 (or end of the health emergency) and clarifies that rent is due retroactively, totaling over $900,000. Daryush Kahan from COVID Command reported that 117 of 120 trailers are in use, with 118 guests. 49 guests have exited, 7 to permanent housing, and 6 guests are fully vaccinated. Commissioner Gilman noted that the city is now receiving 100% FEMA reimbursement for such sites. The resolution passed unanimously.
• Crane Cove Park Building 49 Contract (Item 12A):
  • Project Manager Erica Peterson requested authorization to award a $1,879,600 construction contract to Wickman Development and Construction, plus a 10% contingency. The project will complete public restrooms and a shell building for future tenant (e.g., cafe or kayak rental). Bids came in under budget, and the overall park project is within its $36 million budget. The contract includes 35.98% LBE subcontractor participation. The resolution passed unanimously.

Key Outcomes

• Voted Unanimously:
  • Approval of March 9, 2021 minutes.
  • Resolution 21-11: Mission Rock CFD bond issuance (up to $68 million) and related documents, to be forwarded to the Board of Supervisors.
  • Resolution 21-12: Amended and restated MOU with the Human Services Agency for the shelter site, extending term and confirming rent due.
  • Resolution 21-13: Award of construction contract for Crane Cove Park Building 49 to Wickman Development.
• Directives and Next Steps:
  • Staff will revisit the Pier One rent negotiation and the Southern Waterfront Beautification Fund allocation in light of commissioner concerns.
  • A staff report on port policies (capital investment and reserve) will be provided for the April 13, 2021 meeting.
  • Commissioner Gilman requested a written information report on ferry building vacancies and community access; Commissioner Burton asked for an update on the World Trade Center building; Commissioner Brandon requested an update on backlands maritime planning and a formal naming/dedication policy.
  • The meeting adjourned at 5:49 PM in memory of Anne Halsted, the victims of the Atlanta shootings, and the Boulder shooting victims.