Port Commission Meeting - March 11, 2025

The San Francisco Port Commission met on March 11, 2025, beginning with a closed session at 2:30 PM and open session at 3:15 PM. Commissioners approved several key items, including a Memorandum of Understanding and grants for the Mission Bay Ferry Landing, amendments to the Mission Rock housing plan to deepen affordability, and received an informational presentation on a proposed arts and culture activation at Pier 29. The meeting also featured the Executive Director's report on ARPA-funded capital projects and community events.

Consent Calendar

• Item 10A: Authorized advertising for competitive bids for Construction Contract No. 2858, Pier 90 Buildings and Wharf Demolition. (Resolution 25-12)
• Item 10B: Authorized advertising for two professional services contracts for coastal flood defense design: one for the Southern Waterfront (not-to-exceed $50 million) and one for the Northern Waterfront (not-to-exceed $65 million), each with a 10-year initial term. (Resolution 25-13)
• Both resolutions were adopted unanimously without public comment.

Public Comments & Testimony

• Item 11 (Mission Bay Ferry Landing): Amy Alden (UCSF Senior Director of Local and State Government Relations) expressed full support for the ferry landing, noting UCSF contributed $4 million to the project. She stated the ferry would serve UCSF employees, students, outpatients, and visitors, and highlighted the electric shuttle connection.
• Item 12B (Pier 29 Arts Activation): Public commenters included Anna Teresa Fernandez, a San Francisco artist with an international exhibition record, who spoke passionately about the need for free, accessible arts education and studio space, citing her own experience of finding an atelier in Florence. Verda, a graduate of the San Francisco Art Institute and local resident, expressed excitement about the project activating the North Beach/Telegraph Hill area with creative energy.

Discussion Items

Executive Director's Report (Item 9)

Elaine Forbes reported on several topics:

• Women's History Month: Noted that women earn 16% less than men on average and hold less than 10% of Fortune 500 CEO positions. Recognized President Brandon and Vice President Gilman.
• Crab Crawl: The first-ever Crab Crawl on March 9, part of National Crab Day, sold out with over 280 participants, bringing residents and visitors to six Fisherman's Wharf restaurants. Vice President Gilman attended and noted the event sold out and ran out of crab.
• Contracts Open House: The 8th annual event, now too large for port offices, will be held at the cruise ship terminal to help small, local, and diverse businesses connect with larger firms.
• Resilience: Signed a Third Amendment to the feasibility cost-sharing agreement and a 221 design/construction MOU with the Army Corps of Engineers, paving the way for federal flood protection funding and allowing the port to lead design.
• ARPA Projects: Provided updates on multiple capital projects funded by $114 million in ARPA grants, including Amador Street infrastructure, dry dock repairs, Pier 90 demolition, Hyde Street Harbor repairs, and Wharf J11 repairs.
• Upcoming: Breakfast of Champions on March 21 to honor employees of the year.

Commissioners expressed appreciation, with Commissioner Engblom emphasizing the importance of infrastructure for jobs and emergency readiness. Commissioner Adams urged caution about federal funding uncertainty. Commissioner Lee highlighted the need for better communication on events like the Crab Crawl and the importance of Pier 45 and the Northern Waterfront. Vice President Gilman closed the meeting by honoring Christopher Matthew Conawaki, a 25-year liveaboard at Pier 39 who recently passed away.

Mission Bay Ferry Landing (Item 11A, B, C)

Simon (Port Engineering Project Manager) presented an overview of the Mission Bay Ferry Landing project at 16th Street and Terry A. Francois Boulevard. Key points:

• Project history: initiated in 2016, design completed in 2019, initial cost estimate $47 million, but bids exceeded budget. After litigation resolution and funding gap closed, project now estimated at $74 million (37% increase due to contaminated sediment, electrification scope, permitting changes, and five years of cost escalation).
• Funding sources include: Water Emergency Transportation Authority grant ($28 million), UCSF grant ($4 million), and port/city funds ($19.8 million, with $7 million from port of which $5.6 million already spent).
• The MOU with SF Bay Ferry defines design, construction, and maintenance responsibilities: port handles land-side assets; SF Bay Ferry handles water-side assets beyond the access gate.
• Next steps: Phase 2A (marine demolition and sediment cap) to be advertised soon, construction summer 2025. Phase 2B design wrapping up, construction in 2026-2027. First ferry riders expected spring 2027.

Commissioners expressed strong support. Commissioner Adams noted the project connects to Chase Center, Oracle Park, and UCSF, and reduces traffic and pollution. Commissioner Lee highlighted the need for more ferry connections. Commissioner Engblom supported but suggested better communication of cost escalation reasons. Vice President Gilman supported, noting the importance of the in-water work window.

All three resolutions (25-14, 25-15, 25-16) were adopted unanimously.

Mission Rock Housing Plan Amendments (Item 12A)

Wyatt Donnelly-Landolt (Port Development) presented proposed amendments:

• Background: The Mission Rock project has a 40% affordability goal overall, with a 30% minimum per phase.
• Current challenges: Market conditions (post-pandemic rent decreases, higher incomes) have made leasing 150% AMI units very difficult. Parcel A is at 68% leased overall; 90% AMI units are 100% leased, but 150% AMI units are only 39% leased.
• Proposed changes for Parcel A: Increase 90% AMI units from 10 to 19, maintain 54 units at 120% AMI, eliminate 150% AMI units. This results in 73 total affordable units (25% of phase one, down from 30%). To allow this, they request amending the housing plan to lower the phase minimum from 30% to 20%.
• Next steps: Board of Supervisors approval needed.

Commissioners discussed and ultimately supported the amendments. Commissioner Lee questioned the need for changes; staff explained market conditions. Commissioner Engblom noted the project still exceeds city inclusionary requirements (currently 12.5%). Commissioner Adams used a sports metaphor about making adjustments and noted the area's vibrancy with new businesses and energy. Vice President Gilman highlighted that the new AMI levels (90% AMI is $94,000 for single person) represent deeper affordability and support economic diversity. She also asked about the standalone affordable building for foster youth (parcel D), noting it required subsidy and that federal funding is uncertain. Staff confirmed it remains in planning but may be restructured.

Resolution 25-17 was adopted unanimously.

Pier 29 Arts and Culture Activation (Item 12B) – Informational

Scott Landsittel (Deputy Director, Real Estate) introduced a two-year license concept for Pier 29 by Community Arts Stabilization Trust (CAST) and Art & Water (a fiscally sponsored project of the Hawkins Project).

• CAST (nonprofit real estate arts organization, founded 2013) manages about 300,000 sq ft citywide, including the Warfield Office Building.
• Art & Water proposed a three-pillar model:
  1. Free artist workspaces for 20 emerging and 10 established mentor artists on six-month rotations, with no rent or tuition.
  2. World-class exhibitions (e.g., Shepard Fairey, Boots Riley) on a sliding fee to attract visitors.
  3. Free exhibition space for local artists adjacent to major shows.
• The entire interior (123,000 sq ft) is designed to be movable on wheels, allowing conversion to event space for up to 2,500 people. CAST will manage the central convening space; Art & Water will curate the front Embarcadero-facing area.
• CAST expects about 100,000 visitors annually and commits to 2-3 evening shows per week.
• No action taken; port staff will bring back terms for a temporary license agreement at a future meeting.

Public speakers and commissioners expressed strong enthusiasm. Commissioner Engblom praised the vision. Commissioner Adams spoke passionately about the importance of arts and the need for space for artists. Commissioner Lee raised sustainability concerns, asking about revenue model and event management; CAST confirmed they will self-fund initially and rely on a blend of ticketed and free events, with year two being critical for sustainability. Vice President Gilman asked about their financial capacity; CAST CEO stated they have strong balance sheets and will self-finance if needed, noting they already invested in the project. She also encouraged outreach to communities impacted by port activities (Bayview, Dog Patch, Chinatown, North Beach). President Brandon inquired about selection process for artists; presenters confirmed a public application process with an advisory committee representing diverse neighborhoods, and a focus on local talent.

Key Outcomes

• Consent Calendar (Resolutions 25-12, 25-13) adopted.
• Mission Bay Ferry Landing (Resolutions 25-14, 25-15, 25-16) adopted. MOU with SF Bay Ferry, acceptance of $28M WETA grant and $4M UCSF grant approved.
• Mission Rock Housing Amendments (Resolution 25-17) adopted. Housing plan phase minimum reduced from 30% to 20%, Parcel A affordability adjusted to increase 90% AMI units. Next step: Board of Supervisors approval.
• Pier 29 Arts Activation: Informational presentation received. Staff to return with license terms for future action.
• New Business: Commissioner Lee requested a report on cleaning and offering unused outdoor kitchens at Fisherman's Grotto for temporary pop-up uses.
• Adjournment: Meeting adjourned at 6:32 PM in memory of Christopher Matthew Conawaki.