Port Commission Meeting Summary – August 12, 2025

The San Francisco Port Commission held its regular meeting on August 12, 2025, at 11:15 AM. The meeting covered routine approvals, the Executive Director's report, and actions on maritime relief, real estate development, and parking restrictions. The meeting adjourned at 4:57 PM.

Consent Calendar

• Approval of Minutes (July 8, 2025): Passed unanimously.
• Item 7A: Approved first amendment and fee-waiver for License No. 17173 with Pacific Cruise Ship Terminals LLC for terminal worker parking at Pier 27 during cruise calls (Resolution 2541).
• Item 7B: Approved Operations Agreement (OP-0012) with North Bay Distribution, Inc. for three Foreign Trade Zone No. 3 usage-driven sites in Vacaville, CA (Resolution 2542).
• Item 7C: Authorized award of four contracts (Arcadis-Lotus Water Joint Venture, COWI-RJSD Joint Venture, GHD-Structus Joint Venture, Moffatt & Nichol AGS On-Call Joint Venture) for as-needed engineering services, each up to $5 million (Resolutions 2543–2547).
• Item 7D: Authorized advertising for bids for Construction Contract No. 2882, Pier 9 roof/roof deck repairs and Pier 33 bulkhead roof and structural repairs (Resolution 2548).
• Item 7E: Approved 18-month renewal (with one 18-month extension option) of SkyStar Wheel, LLC lease at Seawall Lot 301 (Lease No. L-17322; Resolution 2549).
• Item 7F: Staff requested and the Commission agreed to continue item (Sofar Ocean Technologies leases at Pier 26 Annex and Pier 28) to the September 9, 2025 meeting.
• Item 7G: Authorized execution of a Project Supplemental Agreement and Grant Agreement with Caltrans for the Parking Management Pilot (Resolution 2551).

Public Comments & Testimony

• Maggie Hallehan (Licensed Coast Guard Captain, Sea Scout leader): Expressed concern about a fuel dock at Gas House Cove (San Francisco Marina) that she believes is within Port jurisdiction under the Burton Act. She urged the Port to investigate and ensure the fuel dock remains for emergency response, citing that a 2022 PGE report did not require dredging there and that the water board supports keeping it. She also criticized the port for not completing diesel repairs in seven years. The Commission directed staff to follow up and brief the commission.
• Pier Sebastiani (Bayview National Black Newspaper): Submitted a newspaper issue titled "Rotting from the Coast Inward" and presented evidence of decaying wooden pilings at Pier 9, Pier 48, Pier 49, the Sea Scout base, and Hunter's Point Shipyard. He argued the Port should reopen Hunter's Point Shipyard for container shipping to generate revenue for infrastructure repairs. He criticized the Port for not responding to his proposals. The Commission acknowledged his concerns and committed to a future briefing on facility conditions.
• Public Comment on Executive Director's Report (Maggie Hallehan): Reiterated the importance of marine services and emergency response fuel availability, noting that the report did not address marine services. She mentioned that the San Francisco Maritime Police are located at the area in question and emphasized homeland security needs.

Discussion Items

Executive Director’s Report (Elaine Forbes)

• Fisherman’s Wharf Forward: Staff collected feedback from advisory committees and an online survey in July. Stakeholders emphasized honoring history, enhancing the fishing harbor, flexible public spaces, quality food options, and safety. Next steps: finalize plaza design, secure permits, and bring a construction team to meet a summer 2026 window. Staff will present an interim plaza design recommendation at the September meeting and seek authorization to advertise for construction.
• Credit Rating: Fitch reaffirmed Port's A rating (stable outlook), citing low leverage, robust liquidity, and diverse revenue. The biggest drag on the rating is the significant unfunded capital needs. Staff is updating the Capital Investment Plan (CIP) with detailed asset data and will bring it to the commission in early 2026.
• Cruise: Hosted 90 cruise calls in the past year, including a record four calls at Pier 80. Welcomed nearly 3,680 passengers (second highest ever). Served 16 cruise lines. Celebrated the 10th anniversary of the James R. Herman Cruise Terminal, which has served 3 million passengers over the decade.
• Ferry Building: Record-breaking foot traffic in Q1 2025—a 23% increase year-to-date. New tenants include Parachute Bakery, Arquette restaurant, Red Bay Coffee, and Nash Bakes Cheesecake. Upgrades to interior and exterior lighting underway.
• Volunteer Events: Over three events, 60 community volunteers collected 500 pounds of debris and removed eight truckloads of weeds from Port parks. Next event on August 22, 2025.
• Project Updates: Amador Street Construction underway (completion summer 2026). Draft final integrated feasibility report for the Waterfront Resilience Program anticipated public mid-2026.
• Living Seawall Pilot: Over three years, the pilot has seen about 100 species per site, including native oysters, juvenile crab, and red seaweeds. Results will inform the future seawall rebuild.
• Personnel: Wendy Profter appointed permanent Deputy Director of Engineering (had served as acting since 2023). Luis Barada received the Bay Adapt Award from BCDC.
• Commissioner Comments: Commissioners praised staff, noted the importance of engaging cruise passengers with local businesses, and emphasized the need for innovative financial strategies to move from an A to AAA rating. Commissioner Adams expressed disappointment that no Port representative attended his retirement party in Tacoma, noting unequal treatment of commissioners.

Item 8A – Waiver of Salmon Vessel and Processor Rents

• Proposal: Waive berth rents for 6 months for approximately 36 permanent salmon fishers (est. revenue loss $41,392.26) and waive processor lease rents for 3 months for approximately 17 salmon receivers (est. revenue loss $554,935). Total revenue impact: $596,327.26. Action justified by the third consecutive cancellation of the commercial salmon season (2023, 2024, 2025) due to environmental challenges.
• Commission Discussion: All commissioners supported the short-term relief but expressed concern about recurring season closures. They called for a longer-term solution, possibly involving a task force, regional/statewide collaboration with other ports, and engaging processors more directly. President Gilman noted that the Port is an enterprise department and these relief funds come from port revenues, not taxpayer dollars.
• Vote: Approved unanimously (Resolution 2552).

Item 9A – 12-Month Extension of LDDA with TZK Broadway, LLC

• Proposal: Extend the Lease Disposition and Development Agreement (LDDA) for a hotel development at Seawall Lots 323/324 and portions of unimproved Vallejo and Davis Street right-of-ways. The project includes a 161-room luxury hotel (reduced from 192 rooms), a theater space for Teatro Zinzanni (renamed DiNA), and a 14,000 sq ft public park. Total development cost: $169 million (up from $142 million). The developer, TZK Broadway LLC, requested a 12-month extension to secure financing, with a $25,000 extension fee (bringing total to $100,000). The Port also deferred $411,000 in transaction costs, secured by a promissory note at 30% simple interest.
• Commission Discussion: Commissioners expressed support, noting the challenging financing environment (ground lease, all-union project, C-Pace financing). Developer Jay Wallace reported that most financing is secured and a small portion remains. Reduction in room count and modifications should simplify building permit approvals. Commissioners noted the project's potential as a catalyst for revitalization. Concerns about timing and cost escalation were raised, but confidence in the developer's commitment was reiterated.
• Vote: Approved unanimously (Resolution 2553).

Item 10A – Amendment to Harbor Traffic Code for Large Vehicle Parking Restrictions

• Proposal: Amend the Port's Harbor Traffic Code to prohibit parking of large/oversized vehicles on Port property, aligning with recent amendments to city administrative and transportation codes. The citywide program includes a large vehicle refuge permit program for RV occupants working with case managers to obtain housing, with a good neighbor policy and monthly inspections. The amendment prevents displacement of RVs to Port streets.
• Commission Discussion: Commissioners supported the amendment, noting it avoids undermining the citywide program. Clarification was provided that permit holders would still face existing 24-hour parking limits and other restrictions. The Port is not a general fund department, but the amendment is needed to ensure consistent enforcement.
• Vote: Approved unanimously (Resolution 2554).

Key Outcomes

• Approved Resolutions: 2541–2551 (consent items), 2552 (salmon relief), 2553 (hotel LDDA extension), 2554 (large vehicle parking restrictions).
• Continued Item: 7F (Sofar Ocean Technologies leases) to September 9, 2025.
• Directives: Staff to follow up with Maggie Hallehan on Gas House Cove jurisdiction issues and brief the commission. Staff to engage with community members (Pier Sebastiani and Sea Scouts) and include facility condition updates in the CIP report. Commissioners directed staff to form a working group on the long-term viability of the commercial fishing industry, to collaborate with other California ports and the California Association of Port Authorities, and to consider communication initiatives (e.g., op-ed, podcast) to educate the public about the Port's role and challenges.