San Francisco Port Commission Meeting - July 11, 2023
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San Francisco Port Commission Meeting: July 11, 2023
The San Francisco Port Commission convened on Tuesday, July 11, 2023, at 10:45 a.m. and adjourned at 5:02 p.m. Commissioners Kimberly Brandon (President), Gail Gilman, Ed Harrington, and Stephen Lee were present; Vice President Willie Adams was absent. The commission voted on executive session actions, approved a consent calendar, adopted the FY 2023-24 rental rate schedule, advanced an unsolicited Fisherman’s Wharf development proposal to the Board of Supervisors, and reviewed finalists for Pier 27 public art.
Consent Calendar
The commission unanimously adopted Resolutions 2332–2335:
- Resolution 2332: Approved a cooperative agreement with BART for the repair and replacement of a fire water line and fire hydrant, and delegated authority for future similar agreements.
- Resolution 2333: Approved a consent to sublease between Blue and Gold Fleet, L.P. and Worldwide Foods LLC (dba Cousins Maine Lobster) for approximately 1,824 square feet at Pier 41.
- Resolution 2334: Authorized advertising for competitive bids for Construction Contract No. 2788, Hyde Street Harbor Repairs.
- Resolution 2335: Authorized advertising for competitive bids for Construction Contract No. 2796, South Beach Marina Repairs.
Public Comments & Testimony
- No public comment was offered on items not listed on the agenda or on the consent calendar.
- Extensive public comment was heard on the Fisherman’s Wharf proposal (Item 11B).
- John Barnett, President of the Crab Boat Owners Association, said the proposal would use space currently rented to fishermen for gear storage and that Pier 45 is not vacant; he supported keeping Pier 45 for fishing and urged using currently empty buildings instead.
- Sarah Bates (Crab Boat Owners Association) said Pier 45 is not vacant and there is a waiting list for storage; she called the storage spaces essential working space, not just storage, and warned that fishers might relocate to Half Moon Bay if displaced.
- Larry Collins, a longtime port lessee and co-op member, said the fishing fleet needs storage, a working fuel dock, and ice machine; he argued that losing Pier 45 sheds would take the fleet’s future and that the proposal ignores immediate infrastructure needs.
- Matt Wannis, a commercial fisherman, said without Pier 45 storage he would have to look at other harbors; he asked not to lose the storage space.
- Sean Filanding, a commercial fisherman, emphasized that Sheds A and C are the heart of the fishing business and critical for staging crab gear; displacing them would be catastrophic and would remove the "fishermen" from Fisherman’s Wharf.
- Michael Racino, a fourth-generation fisherman and charter boat owner, opposed eliminating or using the shed space, saying it would force fishermen out and hurt his business; he also cited safety and congestion concerns.
- No other public comments were received.
Discussion Items
Executive Director’s Report (Item 9A)
Elaine Forbes reported:
- The Ferry Building will celebrate its 125th anniversary on July 13, with events including free ice cream, performances, a time capsule sealed until 2048, and afternoon happy hour.
- The California State Transportation Agency (CalSTA) awarded the Port $21 million to modernize Pier 80 maritime terminals, rebuild Amador Street, and study a 100-vehicle electric truck fleet at Pier 96—the first state supply-chain funding the Port has received.
- Cruise traffic hit a record: 110 cruise calls and 390,967 passengers, 100,000 more than the previous record.
- The "Pier Party at the Wharf" summer concert series launches July 14, funded by a $2 million Sol Source Award.
- All three bond rating agencies affirmed the Port’s rating; two upgraded the outlook from negative to stable (ratings: A, A, AA3).
- The Board of Supervisors approved a $1 million supplemental appropriation for Mission Bay Parks, with a transfer event scheduled for July 20.
- The proposed seawall bond includes a $400 million investment with amenities such as public walkways, swimming areas, and an Olympic-sized pool.
Commissioners congratulated staff and asked questions about specific projects.
FY 2023-24 Rental Rate Schedule (Item 11A)
Kimberly Beale presented the proposed rate schedule, based on consultant analysis (Heiser Marston Economics and Maven Retail). Key points:
- Office vacancy on Port property is 17.2%, vs. 16.8% (Class B) and 15.3% (Class C) citywide.
- Industrial vacancy is 11.9%, vs. 5% citywide; other properties have ~6% vacancy.
- Of the 115 existing rates, ~40% would remain unchanged, 10% would decrease, and the rest increase slightly.
- Proposed incentives include: office/shed rent ramp-ups (e.g., 70/80/100% for 3-year leases), half-month free rent, termination rights, excess rent sharing (≥50% to Port), a maritime "triple threat" discount, and continued fee waivers/reductions for nonprofits and Port-sponsored events.
- The nonprofit annual budget threshold for a 50% fee reduction would increase from $2 million to $3 million.
Commissioner Lee requested more retail incentives; Commissioner Harrington asked for revenue impact data to be provided in writing; Commissioner Gilman questioned the half-month free rent rationale. The commission adopted Resolution 2336.
Fisherman’s Wharf Revitalized LLC Proposal (Item 11B)
Michael Martin presented the unsolicited proposal from Lou Gerardo, Seth Himilian, and Chris McGarry, covering the triangle parking lot, Little Embarcadero, and Pier 45 Sheds A and C. The proposal includes a visitor center, winery/brewery/distillery, short-term rentals, waterfront walk, plaza, museum, food hall, and event space. Port staff conducted outreach (three March meetings) and issued an RFI on May 19; two responses were received by June 21: a follow-up from Fisherman’s Wharf Revitalized and a letter from Dan Gerardo (Boudin Bakery) opposing the proposal and advocating for current needs over long-term development.
Public comment (detailed above) was strongly opposed by the fishing community. Commissioners responded that this action only starts a two-year exclusive negotiation process, that the fishing industry remains a priority, and that community input will shape the final plan. They approved amendments to the resolution:
- Adding two "whereas" clauses about the RFI results and the impracticality of a competitive process.
- Deleting "now, therefore be it" from one clause.
The commission adopted Resolution 2337, recommending the Board of Supervisors waive competitive bidding to allow exclusive negotiations.
Pier 27 Cruise Terminal Plaza Art (Item 12A)
Ryan Walsham and Marcus Davies presented three artist finalists selected by the San Francisco Arts Commission: Ana Teresa Fernandez, James Shen, and David Brooks. The project has a total budget of $330,000 (from a 2012 GO bond), with $136,000 for the artist contract and $83,700 for site work. The RFQ drew 144 applications (91 California, 58 Bay Area, 34 San Francisco, 57 BIPOC). Finalists will receive $2,000 each to develop proposals, with public comment and a final panel review. The commission received this as information; no vote was taken. Commissioners praised the outreach and asked about budget constraints and site-specific design.
New Business
- Commissioner Gilman requested a future briefing from staff and Hudson Pacific on plans to refresh the Ferry Building.
Key Outcomes
- Approved appointment of Nate Cruz as CFO (closed session).
- Adopted consent resolutions 2332–2335.
- Adopted Resolution 2336 (FY 2023-24 rates and incentives).
- Adopted Resolution 2337 (Fisherman’s Wharf Revitalized proposal) with amendments, forwarding to the Board of Supervisors.
- Received informational presentation on Pier 27 art finalists.
- Directed staff to schedule a Ferry Building briefing.
Meeting Transcript
San Francisco Port Commission for July eleventh, twenty twenty-three. Roll call. President Kimberly Brandon. Here. Commissioner Gail Gilman. Present. Commissioner Ed Harrington. Here. Commissioner Stephen Lee. Here. Vice President Willie Adams will be absent today. The San Francisco Port Commission acknowledges that we are on the unceded ancestral homeland of the Ramatishalone, who are the original inhabitants of the San Francisco Peninsula. As the indigenous stewards of this land and in accordance with their traditions, the Ramatish Alone 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. All in favor? Others will wait on mute until their line is open. Comments will be limited to three minutes per person. The queue is now open. Please dial star three if you wish to make public comment. All in favor? We are now in closed session. San Francisco approved the appointment of Nate Cruz to CFO, Chief Financial Officer for the Port of the City and County of San Francisco. I further move that we disclose no other information from closed session. Second. I any opposed. Item number six is the Pledge of Allegiance. Please be advised that the ringing of and use of cell phones and similar sound producing electronic devices are prohibited at this meeting. For remote public comment, dial 1415, 655, 0001, and enter access code 2664. 310 3650 pound pound. Then dial star three to raise your hand to comment on the item being discussed. And audio prompts will signal when it is your turn to speak. If you are watching this meeting on SFGov TV, there is a short broadcasting delay. To not miss your chance to comment. Please dial when the item you want to comment on is announced. Mute your device and listen to the meeting from your telephone, which has no delay. Item number eight is public comment on items not listed on the agenda. Thank you, Jenica. Do we have any public comment on items not listed on the agenda? Seeing none, Corey, do we have anyone on the phone? At this time, there is no one on the phone wishing to make public comment. Thank you. Public comment is closed. Next item, please. Item 9A is the executive director's report. And for callers who wish to make public comment on this item, please style star three to raise your hand to comment. Good afternoon, President Brandon, members of the commission, members of the public and port staff. I'm Elaine Forbes, the executive director of the port. First, I want to acknowledge a very historic anniversary we're having on Thursday. The ferry building is turning 125 years old. There will be a celebration for the public that opens at 11 a.m.
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