San Francisco Port Commission Meeting – February 14, 2023
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San Francisco Port Commission Meeting – February 14, 2023
The San Francisco Port Commission met on Tuesday, February 14, 2023, in a hybrid format at the Port Commission Hearing Room and remotely. The meeting began with a closed session at 2:00 PM, reconvened in open session at approximately 2:45 PM, and adjourned at 4:15 PM. All votes were unanimous (3-0) with Vice President Adams absent. No public comments were received on any agenda item.
Consent Calendar
- Resolution 23-06: Approved a resolution adopting findings under state urgency legislation to allow certain members to attend meetings remotely during the COVID-19 emergency for the next 30 days, directing staff to agendize a similar resolution within 30 days.
- Resolution 23-07: Approved a resolution recommending the Board of Supervisors settle the lawsuit Burchell et al. v. City and County of San Francisco (San Francisco Superior Court Case No. CGC-20-588665) for $6,200,000, with the Port’s share limited to its $100,000 insurance deductible. This settlement relates to the May 23, 2020 fire at Pier 45.
Executive Director’s Report
- Elaine Forbes, Executive Director, reported on economic recovery, equity initiatives, and key projects. Highlights included:
- The Port’s sixth annual Contract Open House scheduled for March 30, 2023, at Pier 27 (James R. Herman Cruise Ship Terminal), featuring keynote speaker Assessor-Recorder Joaquin Torres.
- Approval of a water purchase agreement for non-potable uses at China Basin Park.
- Release of $25 million in RM3 funding for the Mission Bay Ferry Terminal project after court resolution.
- Preparation to sell two historic floating dry docks (Dry Dock 2 and Eureka Dry Dock) at Pier 70 as part of a shipyard transition plan.
- Mission Rock development progress: first building (Parcel G, future Visa HQ) received a temporary certificate of occupancy; additional TCOs expected in spring for Parcel B (life sciences) and Parcel A (254 apartments, 100 below-market-rate units).
- Welcome to new Communications Director Justin, formerly of Oakland Mayor’s office and San Francisco Chronicle.
Discussion Items
Item 11A – Tenant Improvement Allowances (Resolution 23-08)
- Deputy Director of Real Estate and Development Rebecca Benassini presented a proposal to authorize offering tenant improvement allowances up to $20 million from stimulus funds, with a waiver of Administrative Code Chapter 6 public contracting rules for certain port leases. The waiver would apply to leases approved by the Port Commission and Board of Supervisors, and would not affect prevailing wage, local hire, or other lease provisions.
- Commissioners expressed strong support for the concept, noting it would reduce capital barriers for small and BIPOC businesses and spur economic recovery. Concerns were raised about prioritization, fund allocation, and ensuring that infrastructure improvements (e.g., fire sprinklers, ADA) are prioritized. Commissioners requested a clear strategy before funds are deployed, and a term sheet for each lease. The resolution was approved unanimously (3-0).
Item 12A – Mission Bay Parks Supplemental Appropriation and Prop J Contracts
- Acting Deputy Director of Finance Nate Cruz, Deputy Director of Planning David Beaupre, and Rebecca Benassini presented an informational overview of a proposed FY 2023-24 supplemental appropriation of approximately $1 million (fully covered by Community Facilities District revenues) to fund operations of certain Mission Bay parks (P21–P24) and to approve Proposition J contracts for maintenance of non-standard improvements (e.g., specialized streetlights, bollards, planters) at Mission Rock and Pier 70. The port would take over maintenance of bayfront parks; Recreation and Park Department would manage the other parks. The Prop J contract for Mission Rock would be at $0 cost because the developer affiliate would use master association fees; for Pier 70, a contract with a Brookfield affiliate would provide cost savings.
- Commissioner questions focused on long-term funding shortfalls (CFD expiration in 2044) and potential impacts on the harbor fund. Staff indicated plans to seek general fund support and noted potential revenue from a restaurant pad in Bayfront Park. No action was taken; staff will return for formal action at a future meeting.
Key Outcomes
- Unanimous approval (3-0) of Consent Calendar: Resolutions 23-06 and 23-07.
- Unanimous approval (3-0) of Resolution 23-08 authorizing tenant improvement allowance program with Chapter 6 waiver, up to $20 million.
- The following new business items were recorded for future reports:
- Interdivisional briefing on lease-up of Mission Rock affordable housing units with MOHCD.
- Review of insurance, safety, and risk mitigation in the context of economic recovery.
- Strategy for supporting nonprofits with Port storage and industrial spaces.
- Update on the Blue Greenway plan, completed projects, and remaining opportunities.
- No other actions were taken.
Meeting Transcript
This is a meeting of the San Francisco Port Commission for February 14th, 2023. Roll call vote. President Kimberly Brandon. Here. Commissioner Gail Gilman. Present. Commissioner Stephen Lee. Here. Great. The San Francisco Port Commission acknowledges that we are on the unceded ancestral homeland of the Ramatish Alone, who are the original inhabitants of the San Francisco Peninsula. As the indigenous stewards of this land and in accordance with their traditions, the Ramatishalone have never ceded, lost, nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. As guests, we recognize that we benefit from living and working on their traditional homeland. Item number two is approval of the January twenty-fourth, twenty twenty-three port commission meeting. Jenica, can we have a roll call vote? President Brandon. Commissioner Gilman. Commissioner Lee. Motion passes unanimously. The minutes of the January twenty-fourth, two thousand and three meeting have been approved. Jenica, next item, please. Item number three is public comment on executive session. We will take public comment on executive session. Is there any public comment in the room? There is no public comment in the room. Thank you. Thank you, President Brandon. At this time, the telephone queue will be opened for public comment on executive session. Please dial star three to take to make public comment. Comments are limited to three minutes per person. The queue is now open. Please dial star three to make public comment. And at this time there is no one on the phone wishing to make public comment. Thank you, Corey. Public comment is closed. Item number four is executive session. There are three executive session items, two conferences with real property negotiator, and one discussion and possible action on pending litigation as agendized. Thank you. Can I have a motion to go into execution into close session? So moved. Is there a side? Second. Thank you. Roll call, please. President Brandon? Yes. Commissioner Gilman. Yes. Commissioner Lee. Motion passes unanimously. We are now in closed session.
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