San Francisco Port Commission Meeting - September 12, 2023
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San Francisco Port Commission Meeting - September 12, 2023
The Port Commission held its regular meeting on September 12, 2023, at 10:30 AM. The commission approved minutes from August 8, 2023, held an executive session, heard public comments, and received presentations on several key items: the Executive Director’s Report (including a racial equity update), the Mission Rock Project budget and bond financing, a new lease with Recology at Pier 96, and an MOU extension with the Department of Homelessness and Supportive Housing (HSH) for the Embarcadero Navigation Center. The commission took action on the Mission Rock bond resolution and provided direction to staff on follow-up items.
Consent Calendar
- Approval of Minutes (August 8, 2023): Moved, seconded, and passed unanimously.
- Executive Session: The commission voted unanimously to hold a closed session.
Public Comments & Testimony
- Daniel Conrad (resident): Requested the commission investigate Giants’ non-compliance with ground lease provisions regarding stadium lights, citing bright lights left on after night games causing nuisance. He noted he is a Giants fan but believes they should be better neighbors.
- Sam Sohal (double-deck bus company owner): Asked for guidance on why his company was told they could no longer operate at Fisherman’s Wharf; requested a response and ability to work with the port.
- Alice Rogers (resident): Praised the DEI report and noted the success of recent events on the waterfront showcasing Black and Filipino businesses.
- Alice Rogers (also on HSH item): Supported extending the HSH MOU but requested stronger commitments on beat officer staffing and data accuracy.
- Margaret Keene (neighbor in safety zone): Supported the navigation center but expressed concerns about insufficient beat officers, drug activity, and unreliable point-in-time counts; requested codified enforcement.
Discussion Items
- Executive Director’s Report (Item 9a): Acting Director Michael Martin reported on the September 2 fire at Islais Landing that destroyed Kayaks Unlimited’s equipment; the port will assist in rebuilding. Upcoming events: Portola Music Festival (Sept 30–Oct 1, ~35,000 attendees/day), Fleet Week (Oct 2–10), Crane Cove Park market (5,000 attendees in September), Fisherman’s Wharf Pier Party. Leasing: near recommendation for former Butterfly space at Pier 33.5; broker selected for wharf vacancies. Resilience: geotechnical investigation at Ferry Building for seawall earthquake project. Diversity, Equity & Inclusion (Tony Autry): Presented the Racial Equity Action Plan (REAP) progress. Noted 2022 REAP goals: over half of 18 actions completed; increased LBE participation to 18.28% ($163.48M). Created Rising Tides internship for BIPOC youth (ages 15–25). Pop-ups on the Plaza quarterly events. For FY23-24, focus on hiring/promotion, data transparency, and psychological safety. Commissioners praised the report and suggested more regular data sharing.
- Mission Rock Project – Phase One Budget and Bond Financing (Items 10a & 10b): Josh Keene (Assistant Deputy Director of Development) presented the status. Phase one includes 537 housing units (199 affordable), Visa HQ, life science building, and China Basin Park (5 acres). Construction progress: three buildings received temporary certificates of occupancy; park delivery in 2024. Budget update: total phase one completion cost now projected at $218M (up ~$20M), driven by city staff/consultant costs (~$20M) and macroeconomic factors (inflation, interest, COVID delays, weather). Proposed solutions: (1) Port capital advance of up to $16.5M (port gets 10% return instead of developer’s 18%), (2) New bond issuance (Resolution 23-41) up to $58.335M, expected net proceeds ~$39.5M (current rates ~5.86% vs 3.3% in 2021). Bonds will stop high-cost developer return (~$500-600k/month saved). Wyatt Donnelly presented bond details: three series (development, office, shoreline special taxes). Next steps: commission approval, then Board of Supervisors, pricing by year-end. Commissioners asked about trade-offs and oversight; staff committed to quarterly reports and returned in October with final budget.
- Recology Lease (Item 10c): Kimberly Beale (Acting Deputy Director) presented a new 74-month lease for Pier 96 recycling center. Current lease expired July 31, 2023. No maritime use; interim use permitted up to 10 years. Rent: $369,000/month (3% annual increases, fair market adjustment in year 5). Tenant will fund seismic/facility studies (~$1M). No maritime deficiency fee; 6.5% of revenue to Southern Waterfront Beautification Fund (~$1.5M first 5 years). Tenant retains community benefits (local hiring, school tours, art program). Commissioners supported the lease; discussed historical environmental reviews (2005 SEIR) and need for updated emissions data. Staff will return in October for approval.
- HSH Memorandum of Understanding (Item 10d): Sandy Oberley (Senior Property Manager) and Dylan Schneider (HSH) presented a 2-year extension (with 2-year option) for the Embarcadero Navigation Center at Seawall Lot 330. Rent: $41,059.92/month (3% annual increases). The center serves 200 guests (99.5% occupancy as of Sept 1, 2023). Success story: Jonathan moved to permanent supportive housing and achieved sobriety. City partners (SFPD, DPW, HSOC) recommit to dedicated beat officers and cleaning. Community Advisory Group (eSNAG) meets quarterly. October hearing will include updated metrics on exits to housing, safety data, and interdepartmental agreement details. Commissioners expressed support but raised concerns: equity across all navigation centers, need for enforceable security commitments, and improving point-in-time data accuracy. Suggested exploring ambassador programs and controller’s office assistance. The commission expects stronger partnership and adherence to commitments.
- New Business (Item 11): Vice President Adams briefed on offshore wind opportunities (future of West Coast ports). Commissioners requested more frequent updates on leasing efforts, especially for Fisherman’s Wharf vacancies (Ferry Plaza, Pier 45, Cannery) and a report on broker performance. President Brandon asked for ways to highlight historic communities at the cruise terminal.
Key Outcomes
- Approved: Resolution 23-41 (Mission Rock Special Tax District bond issuance) – motion passed unanimously; will go to Board of Supervisors for final approval.
- Directives: Staff will follow up with Daniel Conrad regarding Giants’ light compliance and with Sam Sohal on bus operations. Staff will return in October with final Mission Rock budget increase and port capital advance request, as well as a formal commitment to quarterly budget reports. The HSH MOU will be brought back for a vote in October with additional data on exits, police coverage, and improved data collection. Staff will provide a leasing update for active vacancies and explore broker performance metrics. The Economic Recovery Report will include ideas for highlighting historic communities at Pier 27.
Meeting Transcript
We recognize that we benefit from living and working on their traditional homeland. We wish to pay our respects by acknowledging the ancestors, elders, and relatives of the Rama to Shalone community, and by affirming their sovereign rights as first peoples. Item two is the approval of minutes for the August eighth, twenty twenty-three port commission meeting. So move. Second. All in favor. Any opposed. The motion passes unanimously. The minutes of the August eighth, twenty twenty three meetings are adopted. Item three is public comments on executive session. We will take public comment on executive session. Is there any public comment in the room? See none. Corey, do we have anyone on the phone? For callers on the line, please dial star three if you wish to make public comment. 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. And at this time, there are no members of the public on the phone wishing to make public comment. Second. All in favor? Aye. Any opposed? Motion passes unanimously. We are now in closed session. San Francisco government television. San Francisco Government Television. The motion passes unanimously. Jenica, next item, please. Item six is the Pledge of Allegiance. For which it stands one nation under God and the visible. Liberty and justice for all. Item seven is announcements. Please be advised that the ringing of and use of cell phones and similar sound-producing electronic devices are prohibited at this meeting. A member of the public has up to three minutes to make public comments on each agenda item, unless the port commission adopts a shorter period on any item. Public comment must be in respect to the current agenda item. The commission will take in-person and remote public comments on each item, beginning with commenters in person. For remote public comment, dial 1415, 65501, and enter access code 2661 912 6054 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're 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 eight is public comment on items not listed on the agenda. Thank you. We will now take public comment on items not listed on the agenda. We have a speaker, Daniel Conrad. Thank you. Good afternoon.
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