Port Commission Meeting – August 13, 2024: Equity, Pier 54 Closure, and Art Exhibit
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Port Commission Meeting – August 13, 2024
The San Francisco Port Commission convened on Tuesday, August 13, 2024, at 10:00 AM. The meeting covered a wide range of topics including the approval of minutes, executive session, public comment, the executive director's report (highlighting an art exhibit, equity initiatives, and resilience progress), consent calendar items, a proposed RFQ for equity support services, a rental assistance program for Pier 54 tenants, and new business items. The commission welcomed new commissioner Stephen English. The meeting adjourned at 4:25 PM.
Public Comments & Testimony
- Pier 23 Cafe Family (Flickka, McGurin, Leigh Levy): Multiple speakers representing Pier 23 Cafe, a 38-year legacy tenant, described severe post-COVID financial hardship. They reported annual revenue dropping from over $5 million in 2018 to less than half that in 2022, and consistent losses draining savings. They requested the Port's assistance in restructuring their lease to sustainable terms and a lease extension, warning that without help they would have to close, adding to the list of legacy waterfront businesses forced to shut down.
- Commissioner Response: President Brandon directed staff to work with the Pier 23 Cafe family, and Executive Director Forbes agreed to have the real estate team meet with them and report back within a few months.
Consent Calendar
- Resolution 24-34 (Item 10A): Authorization to advertise a request for proposals for Heron's Head biological and physical monitoring related to marsh restoration projects. Approved unanimously.
- Resolution 24-35 (Item 10B): Approval of a 12-month extension of the lease disposition and development agreement with TZK Broadway, LLC for a proposed hotel (approx. 192 rooms, dinner theater, 14,000 sq ft public open space) at Seawall Lots 323-324 and portions of unimproved Vallejo and Davis Street right-of-ways. Approved unanimously.
Discussion Items
- Item 11A: Request for Qualifications (RFQ) for Equity Support Services (Resolution 24-36)
- Tony Autry (Diversity, Equity & Opportunity Manager) and Tiffany Tatum presented the RFQ to support the port's Racial Equity Action Plan (REAP). The proposed as-needed contracts would cover cultural programming, outreach and engagement, small business capacity building, program audit/data analysis, and equity-focused special projects.
- The contract term is five years, with a not-to-exceed amount of $1.65 million, including a 20% Local Business Enterprise (LBE) sub-consulting requirement. The RFQ aims to allow quick and flexible engagement of consulting support, similar to existing as-needed engineering contracts.
- Commissioners expressed strong support, noting the progress made from initial blank stares on equity to widespread organizational buy-in. Commissioner Adams asked staff about their feelings on progress; both Autry and Tatum described it as a lifelong journey but noted significant cultural shifts and increased comfort in discussing equity. Commissioner Lee also raised concern about staff shortages and the need for new hires. The item was approved unanimously.
- Item 12A: Rental Assistance Program for Pier 54 Tenants (Resolution 24-37)
- Kimberly Beale (Assistant Deputy Director for Real Estate) presented the program due to the planned closure of Pier 54. A rapid structural assessment in 2023 designated additional sections as unsafe (red). The pier is not historic and will be condemned and removed; the port has no plans for repair or development.
- The closure affects 11 tenants (mostly small, women/minority-owned businesses, nonprofits, arts). Tenants are currently month-to-month; the port is not required to pay relocation costs. The proposed rental assistance program offers a five-year lease (one-year initial with four one-year options) with delayed rent increases: year 1 at current low rent, year 2 at 5% increase, year 3 at 70% of parameter, year 4 at 80%, year 5 at 100%. The estimated revenue waived in year 1 is ~$178,000 (compared to annual revenue loss of ~$180,000 from the closed pier).
- Staff reported that alternative locations have been identified for four tenants, tentative for two, and three are undecided. Commissioners expressed support, citing safety and equity goals. Vice President Gilman requested a future report on tenant status before the first large rent jump. President Brandon asked about long-term plans; Executive Director Forbes confirmed the pier will be removed and is on the "do not resuscitate" list. The commission approved the resolution unanimously.
Key Outcomes
- Votes: All resolutions (24-34, 24-35, 24-36, 24-37) passed unanimously.
- Directives: Staff directed to work with Pier 23 Cafe and report back within a few months; staff to include an update on facility conditions and demolition plans at a future meeting.
- New Business: Executive Director Forbes noted items to be added to future agendas: report on Pier 23 Cafe negotiations, report back on Pier 54 tenant status, an update on the condition of all port facilities (including potential yellow/red tags), and a special meeting with fishermen regarding a shortened fishing season.
- Next Steps: The equity support services RFQ will be advertised before end of August, with contract awards expected in November/December 2024.
Meeting Transcript
Thirteenth, twenty twenty-four. Roll call, President Kimberly Brandon. Here. Vice President Gail Gilman. Present. Commissioner Willie Adams. Here. Commissioner Stephen English. Here. Commissioner Stephen Lee. Here. The San Francisco San Francisco Port Commission acknowledges that we are on the unceded ancestral homeland, the Rama Fishaloni, who are the original inhabitants of the San Francisco Peninsula. As the indigenous stewards of this land and in accordance with their traditions, the Rama de Shaloni 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. Item two is approval of minutes for the July sixteenth, twenty twenty-four port commission meeting. So moved. Second. Any opposed? The motion is adopted. And before we move to the next item, I would love to introduce our new commissioner, Stephen Ingbo, who is joining us today for his first meeting. And I know there will be more in the executive director's report, but I just wanted to welcome. I still move. We have a motion and a second. All in favor. Any opposed? The motion passes unanimously. We're now in closed session. Item four is executive session. I'm sorry. I'm sorry. Excuse me. Back up. On executive session. I see none in the room. Do we have anyone on the phone? Let me open the lines for callers on the phone. Please dial star three if you wish to make public comment. The system will let you know when your line is open. 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. Thank you. Public comment is closed. So we are now in executive session. San Francisco government television. San Francisco Government Television. Any opposed? Motion passes unanimously. We are now in open session. Item six is the Pledge of Allegiance.
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