San Francisco Port Commission Meeting: Fisherman's Wharf Term Sheet and Dry Dock Funding, October 8, 2024
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San Francisco Port Commission Meeting: Fisherman's Wharf Term Sheet and Dry Dock Funding, October 8, 2024
The Port Commission met on October 8, 2024, to discuss and act on several major items, including a non-binding term sheet for the Fisherman's Wharf Revitalized project, a long-term lease extension for Waterfront Plaza, and emergency funding to stabilize and potentially sell dry docks. The meeting featured extensive public comment from commercial fishermen and business owners, and the commission voted to advance the Fisherman's Wharf term sheet (4-1) and approved the Waterfront Plaza lease and dry dock funding unanimously.
Consent Calendar
- 11A: Authorization to accept and expend a $2,700,000 FEMA hazard mitigation grant for Piers 94/96 seismic improvements. (Resolution 2442)
- 11B: Acceptance of a $159,900 FEMA grant for an Engineering with Nature working group. (Resolution 2443)
- 11C: Award of a $2,208,000 construction contract (with 10% contingency of $220,800) to Cazadoro Construction, Inc. for Crane Cove Park Playgrounds and Dog Park. (Resolution 2444)
- 11D: Recommendation to the Board of Supervisors to refund the 2013 Certificates of Participation (COPs) up to $23,245,000 at an interest rate not exceeding 5%. (Resolution 2445)
- 11E: Acceptance of Mission Bay Park improvements (Bayfront Park) into the Port's park system. (Resolution 2446)
- 11F: Lease with Silverado Contractors, Inc. for office, shed, open pier, and submerged space at Pier 96 for five years. (Resolution 2447)
- 11G: Lease with Steph Mufson Creations, LLC (The Parade Guys) for approximately 15,042 sq. ft. of shed space at Pier 19 for one year with four one-year extensions. (Resolution 2448) All consent items passed unanimously.
Public Comments & Testimony
- Fisherman's Wharf Revitalized Project (Item 12A): Dozens of commercial fishermen, crab boat owners, and local business owners spoke. Key themes: strong opposition to redeveloping Pier 45 sheds A and C, citing loss of critical gear storage, staging space, and long-term viability of the fishing industry. Speakers included Sarah Bates (Crab Boat Owners Association), Jason Salbado, Michael Rocino, and Larry Collins, who argued the project would drive fishermen away and end San Francisco's working waterfront. Supporters, including the owner of the Franciscan restaurant and a longtime fisherman Steve Leverone, urged moving forward to revitalize the area and fix infrastructure. Rodney Fong (Wax Museum) called for a Request for Proposals (RFP) instead of the sole-source process. Many speakers emphasized that the $548 million project is too large and that the 66-year lease threatens the fishing industry's future.
- Other Items: One caller (Rodney Fong) on Item 9 (non-agenda comments) reiterated the call for an RFP. No public comment on Items 12B or 13A.
Discussion Items
- 12A – Fisherman's Wharf Revitalized Term Sheet: Port staff (Wyatt Donnelly Landall) presented the non-binding term sheet for development of Pier 45 sheds A and C and Seawall Lots 300/301 (the Triangle Lot). The project includes a 66-year lease, $548 million total cost ($186M infrastructure), with a $1.5 million/year rent credit for 15 years, and a CFD/IFD financing tool. The concept has evolved to elevate attractions to the second floor to preserve ground-level fishing storage and industry operations. Commissioners expressed concerns about the impact on the fishing industry and the need for a detailed operations study. Commissioner Adams voted against the term sheet, stating the fishermen's needs were not adequately addressed. The motion passed 4-1 (Brandon, Gilman, English, Lee in favor; Adams opposed).
- 12B – Waterfront Plaza Lease Extension (Jamestown): Staff (Ricky) and Jamestown regional director Chris Farber presented a 57-year ground lease extension (from ~16 years remaining) for the office complex at Seawall Lots 315-317. The current lease has a $3M base rent that is unsustainable; the new lease reduces base rent to $700,000/year plus percentage rent (6% of gross above base rent) and CPI adjustments every five years. Jamestown commits to a 10-year capital plan of at least $34 million (including $9M in the first 10 years), EV charging, solar, and common area upgrades. The port participates in refinancing/sale proceeds (1.5% of net proceeds). Commissioners questioned the lack of a firm reinvestment commitment, but staff noted the capital plan and reporting mechanisms. The lease passed unanimously after a brief procedural confusion.
- 13A – Dry Dock Stabilization and Sale: Deputy Director Nate Cruz presented a request for a $20 million supplemental appropriation from port reserves ($18.5M from rainy day fund, $1.5M from BAE settlement) to stabilize dry docks No. 2 and Eureka at Pier 70, which are in critical condition (holes, failed pumps). The port estimates $5M for immediate stabilization, with the goal of negotiating a sale to Desan Shipyards (Turkey). If sale fails, demolition could cost up to $50M. The commission also authorized advertisement of RFQs for dry dock repair, monitoring, and demolition services. The motion passed unanimously.
- New Business (Item 14): Commissioner Adams requested a written update on Hornblower's compliance with the Park Service agreement regarding the IBU, to be provided within the next week.
Key Outcomes
- Fisherman's Wharf Term Sheet: Adopted Resolution 2449 endorsing the non-binding term sheet (4-1). The term sheet will now go to the Board of Supervisors for endorsement and fiscal feasibility finding. Further environmental review and transaction documents are expected to take 12+ months.
- Waterfront Plaza Lease: Approved Resolution 2450 (unanimous) for a 57-year ground lease with Jamestown, including reduced base rent, percentage rent, and $34+ million capital plan. The lease will be forwarded to the Board of Supervisors.
- Dry Dock Funding: Adopted Resolution 2451 (unanimous) authorizing a $20 million supplemental appropriation and RFQ advertisement for dry dock services. Staff to negotiate sale terms with Desan Shipyards and report back.
- Adjournment: The meeting was adjourned in memory of Reverend Arnold Townsend.
Meeting Transcript
Meeting call to order. This is a meeting of the San Francisco Board Commission for October eighth, twenty twenty-four. Roll call. President Kimberly Brandon. Here. Vice President Gail Gilman. Present. Commissioner Stephen English. Present. And Commissioner Stephen Lee. Commissioner Willie Adams is on his way. Item two is the approval of minutes for the September seventeenth twenty twenty-four port commission meeting. So moved. Second. Aye. Motion passes unanimously. Item three is public comment on executive session. Is there any public comment on executive session? See none in the room. Do we have anyone on the thumb? Let me open the lines for callers on the phone. Please dial star three if you wish to make public comment. 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. Any opposed? Motion passes unanimously. San Francisco Government Television. Was discussing closed session and we can reconvene in open session. All in favor? Any opposed? Motion passes unanimously. We are now in open session. Item six is the land acknowledgement. The San Francisco Port Commission acknowledges that we are on the unceded ancestral homeland of the Ramatishaloni, 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 Tishalone 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. 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 Tishaloni community, and by affirming their sovereign rights as first peoples. Item seven is the Pledge of Allegiance. Item eight 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 comment on each item, beginning with commenters in person. For remote public comment, dial 1415, 65501, and enter access code 2660, 2628925 pound pound. Then dial star three to raise your hand to comment on the item being discussed. An audio prompts will signal when it is your turn to speak. If you are watching this meeting on SFGup TD, 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. Item nine is public comment on items not listed on the agenda.
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