March tenth, twenty twenty six.

Roll call, President Gail Gilman.

Present Vice President Stephen English.

Commissioner Willie Adams.

Commissioner Stephen Lee.

And Commissioner Ken McNeely.

Item two is approval of minutes for the February twenty fourth, twenty twenty-six port commission meeting.

Do I have a motion?

So move.

Do I have a second?

Second.

We have a motion and we have a we have a second.

Um in favor.

Any opposed?

The motion passes unanimously.

Next item, please.

Item three is public comment on executive session.

Is there any public comment in the room on executive session?

I see no public comment in the room.

Jenica, is there a public comment on the phone?

For callers on the line, please dial star three if you wish to make public comment and audio pump will signal when your line is open.

Comments will be limited to three minutes per person.

Please style star three if you wish to make public comment.

All in favor of moving to go into closed session.

SF Gov TV.

San Francisco government television.

Session.

I make a motion that we don't discuss anything that we discussed in closed session.

Second.

We have a motion and we have a second.

All in favor?

Motion passes.

We're now in open session.

Jenica.

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 Ramatishaloni 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 Ramatushaloni community and by affirming their sovereign rights as first peoples.

Item 7 is announcements.

Please silence all cell phones and sound producing devices.

Each member of the public may speak for up to three minutes per agenda item unless a shorter time is set by the port commission.

Comments must relate to the current agenda item.

Public comments will be taken in person first, then remotely.

To comment remotely, dial 1, 415, 655, 000 1.

Enter access code 2663.

291861 pound pound.

Then press star three to raise your hand.

And audio prompts will signal when it is your turn to speak.

If watching on SFGov TV, note the broadcast delay to avoid missing your turn.

Dial in when your item is announced, mute your device, and listen from your telephone.

Item eight is public comment on items not listed on the agenda.

So is there any public comment in the room for items not listed on our agenda today?

If there are, just make your way to the podium.

I am not seeing any public comment on items not listed on the agenda.

Do we have anyone on the phone?

No callers?

No callers, thank you.

Okay.

Um public comment is closed.

Next item, please.

Item 9A is the acting executive director's report.

For callers who wish to make public comments on this item, please dial star three to raise your hand to comment.

Good afternoon, President Gilman, Vice President England, Commissioners, Port staff, and members of the public.

My name is Michael Martin.

I am the acting executive director, and this is the acting executive director's report for March 10th.

As I believe begin this month's report, I want to start by acknowledging that March is women's history month.

At the Port, Women's History Month is an opportunity to uplift the stories, leadership, and contributions of women, past and present, whose work, advocacy, and vision continue to shape our workplace, our waterfront, and our communities.

This year's Women's History Month is guided by the national theme, Leading the Change, Women Shaping a Sustainable Future, which honors the vital role women play in designing solutions that support environmental stewardship, economic resilience, educational advancement, and social justice.

Throughout history, women have been central to movements for equity, labor rights, environmental justice, and community well-being, often advancing change while navigating systems not designed with them in mind.

At the port, we recognize and celebrate the women whose leadership, expertise, and dedication keep our operations moving and our values grounded in service and impact.

We look forward to taking time this month to honor women's history, uplift present-day contributions, and continue building a culture of inclusion and belonging here at the port.

Thank you for joining us in recommending, recognizing women's history and the many ways women continue to shape the port today.

Moving forward, I am very uh excited in alignment with Women's History Month to celebrate Bay Area BIPOC Women Makers on Saturday, March 28th, with a day of delicious food, crafts, and community and the embark at the embarkadero ferry terminal plaza just south of this building.

The event runs from 9 a.m.

to 2 p.m.

Entry is free and open to the public, and food and drinks will be available for purchase.

Pop-ups on the Plaza is a series of events celebrating Bury Area BIPOC entrepreneurs, including businesses and foodwise building equity program, which has been exciting and very successful in providing a path forward for BIPOC makers to grow into a more permanent role with the embark uh the ferry building farmers market.

Pop-ups on the plaza is a port-sponsored event brought to you by Foodwise and is proudly funded in partnership with the San Francisco Human Rights Commission.

Moving to Fisherman's Wharf, I'm pleased to let you know that the Board of Supervisors last week officially approved the Fisherman's Wharf Entertainment Zone, a major win for the Northern Waterfront.

As we have seen at Pier 39's entertainment zone, during designated special events, bars and restaurants will be permitted to sell alcoholic beverages to go within the defined waterfront area, which will enhance the visitor experience by allowing guests to enjoy those beverages as they enjoy live entertainment and programming throughout the district.

The Fisherman's Wharf Community Benefit District will leverage this new designation through recurring high-impact events designed to drive foot traffic, extend visitor stays, and generate measurable economic impact.

As you can see on the slide here, I'm very excited to see that this zone sort of straddles the line for port property and the land side.

We're excited to see what we can do on our property to enhance our tenants' work, much as the CBD has done with our grant.

But by bringing in our neighbors to the south, I think it's a real good way to foster neighborhood cohesion and also really uh give people new things to explore.

If they're only used to coming to our property, they could see the land side businesses and vice versa.

So we think this is a great opportunity, and we're excited to work with all the stakeholders to come up with new ways for people to be attracted to our property.

I want to give a big thank you to supervisors Danny Sauter, Stephen Sherrill, Raphael Mandelman, and Shimon Walton for supporting this legislation.

Staying in Fisherman's Wharf, uh, I want to note the Crab Crawl.

After selling out in its debut year, the Fisherman's Wharf CBD in partnership with the port brought back Crab Crawl for a second year, honoring National Crab Day last Sunday, March 8th.

Crab aficionados once again scuttled through the city's iconic waterfront district, sampling exclusive crab creations from six seafood establishments.

The self-guided tasting tour celebrated the Bay Area's most most beloved crustacean and the unbeatable restaurants in Fisherman's Wharf.

Moving to this area, uh I wanted to report that we're working closely with the Office of Economic and Workforce Development and the Downtown SF Partnership, a 43 block community benefit district representing the financial district and Jackson Square to join their special assessment district when they expand in 2027.

This is a uh sort of a part and parcel of what we were talking about during the budget discussions about where we really see uh a role for the port to play in investing in uh uh the quality and the conditions of our property to help our businesses and to help visitors really see the clean, safe, and vibrant waterfront we all want to see.

Um this district was established in 2019 uh to ensure clean, safe streets and a thriving public realm, and it has since become a leader in urban innovation and a key partner to the city in downtown revitalization.

They're conducting an early renewal to accelerate the recovery of downtown and expand its footprint, and that's where we come in.

So we've tentatively agreed to work with them uh to enter the district.

Um, what we'd like to see is uh using their work to bring in some cost-effective additions to the baseline services we provide.

We've invested a lot in cleaning and security in these areas on port property, but what we want to see are things like ambassadors, special event services when we need more people out helping people uh enjoy the events as well as potential activations and in small sort of tactical ways to sort of have a little bit more cohesion.

When you leave uh the embarcadero uh BART and MUNISTOP, you'll walk out, you'll see the downtown SF ambassadors welcoming you, asking you if you have anything.

We'd love to see those same ambassadors welcoming people off the ferries and having that sort of seamless connection with downtown that we really feel.

I mean, we really feel like we're part of the financial district and our vibrance, we want to help lift up the financial district.

Um we're very excited to see this move forward.

Um, we're continuing to work with them on the exact contours of that.

What we'll be doing is entering conversations with our tenants as well in the areas shown here.

Um you'll see that the area spans basically from just south of the agriculture building up to Pier 7.

So we'll talk with our tenants about um participating with us and then hopefully bring something back to you in the spring uh to get your direction on moving forward in the process.

So more to come on that one, but it's an exciting development that we're hoping to move forward very quickly.

Uh moving just north of Pier 7, we have waterfront restaurant.

Uh, our retail portfolio is excited to offer a new offering.

Um, so this restaurant um will be uh offered uh by our consultants at Maven Retail.

The marketing effort seeks to identify parties interested in leasing and rehabilitating this property and giving it a new life.

Um, this location is really, I think, advantageous.

It's so scenic with uh the Bay Bridge views as well as Treasure Island, but it's also on a high foot traffic area between this building and the exploratorium.

And so we're really optimistic and interested to see what kind of proposals come in.

We'll obviously keep you abreast of that as the offering moves forward.

Moving southward to Crane Cove Park.

I'm excited to report that San Francisco Opera's fourth season of Bohem out of the box will launch in Crane Cove Park on April 11th and 12th as part of a series of outdoor performances throughout the region.

These free live performances will be an intimate one hour version of Lob OM, a popular work of love and loss among a group of bohemian artists.

The performances take place on the converted shipping container turned mobile opera stage.

The Crane Cove Park performance will include a first act workshop put on by SF Opera before the shows, where families and children will be invited to participate in free activities, which will be critical for people like me with a very small child.

But I'm super excited to take advantage of all of it.

And for people like me who uh aren't opera aficionados, they'll also be broadcasting live English translations that you can listen to on your personal mobile devices.

So really an event for all and not just those who enjoy opera in its own right.

Um we're grateful to the opera for their partnership in bringing this work to the waterfront, and we're very excited to be the kickoff location for this year's series.

Uh Crane Cove Park is amazing.

It has the great a great uh waterfront backdrop, and to have these uh extra activities come through and liven it up is just a real opportunity that we can't wait to take advantage of.

Uh speaking of opportunities, we can't wait for the bay lights are returning.

Uh the bay lights, which illuminated the western span of the Bay Bridge before coming down in 2023 will return with a grand lighting on March 20th.

The grand lighting will debut on the primary north facing installation, the historic view of San Francisco, long associated with the lights.

But it's important to note that a second phase of the project designed to expand the visibility to additional Bay Area communities, will be introduced following completion of final safety testing and agency review.

So more lights to come after this initial initial return.

The lighting event will honor the will also honor the 92nd birthday of former Mayor Willie Brown, a longtime supporter of the project for whom this bridge's western span is formally named.

The Bay Lights project was initiated by Ben Davis, founder of Illuminate.

Now I want to take you through a few capital projects.

When we talked about our budget in our budget uh hearings the last last month, we talked about the benefits of having a significant amount of grant funds come in over the pandemic and the years afterward that is really allowing us to deliver an unprecedented number of capital projects over the next few years.

And so I wanted to highlight a couple of those for you here.

They aren't the most sexy projects of all time, but they really represent opportunities for us to bring back leasable space and try to improve our portfolio and improve our performance.

Starting with the Pier 29 and a half bulkheads.

So to the left of this picture is Pier 29 and a half, and in there is a separate office facility that was actually used by the America's Cup organization when they were here.

It needs a lot of upgrades, including electrical, HVAC systems, hazardous material abatement, window repair, electrical improvements, flooring and carpeting, drywall repair, and painting and security improvements.

But I'm happy to report the project banned last August and is nearly complete, and we hope to start marketing the space to new tenants this summer.

I'm gonna hearken back to uh a long time ago conversation we used to have uh at this body about the grain silos at Pier 90.

That became an attractive nuisance as urban adventurers uh trespassers would go into the grain silos, take uh social media videos showing their daringness, and basically scared us because we were worried about them getting hurt and uh also obviously the liability of them coming onto our industrial areas in unsafe conditions.

So we made a part of our grant strategy during the pandemic, getting money to pull these down.

Um we're not taking down the silos themselves.

What we are demolishing right now is the steel structures and small buildings that adjoin the silos, which are the entry points for those urban adventurers.

So we're uh excited to state that that work is almost complete, and we're also demolishing the timber wharf.

Um we expect that to be complete during the in-water work window later this year.

So the whole project hopefully is all wrapped up by the end of this year.

But in the meantime, we'll be taking advantage of the removal of the land side buildings and closing off all other access to the silos.

And at the end of the project, again, we'll have more leasable space near uh near our berths for potential other maritime tenants in our maritime industrial facilities.

So a real win-win project there.

This is another grant funded effort, but it is not a capital project.

It is in some ways, it's a procurement of a crane barge.

Um we uh obtained dollars and went through the process of procuring the construction of a new crane barge that will allow us to perform waterfront work, including reconfiguring berths, birth repairs, waterfront development projects, and disaster response.

This is huge for us as we maintain our property and thinking about the rapid structural assessment uh information item we did for you as part of the budget.

Um we talk about how closely we monitor our our pile supported facilities, of which we have acres and acres of of facilities that have supported by piles.

This uh this barge will allow us when needed to do repairs ourselves with our teams and not have to go out to the contractor community being subject to inflation, being struck subject to the contracting pipeline.

So this is a really going to be a huge step forward for our operation, uh, and one where we can really have a more systematic approach to making sure our our structures are safe and continue to be used to generate revenues.

Um the our with we expect uh the rest of this work and the commissioning to take place over the course of this year, uh, including a transit through the Panama Canal, and we look forward to receiving it in early 2027 and placing it into service.

This next item is uh very fortuitous on a day where I joined David Beaupre and Jai Jackson of our planning and environment division for the kickoff of the mayor's street safety interdepartmental working group.

I'm very glad to report the port has begun work on the Terry Francois Boulevard Bike Pedestrian Safety Project.

This is uh the part of Terry Francois Boulevard that stretches between China Base and Park and Mission Rock Boulevard.

Anyone who is out there knows that that is a beehive of activity of every mode of transport.

You have bikes, you have pedestrians, you have scooters, you have trucks doing work, you have cars, all trying to use the same part of uh pavement.

At the same time, Mission Rock Phase One really put a beating on this piece of property.

Um so we're excited to partner with Port, uh excuse me, Public Works and the SFMTA to have a combined um uh road rebuild as well as a uh safety project.

So we're gonna have new asphalt paving, new roadway striping and signage, physical concrete barriers separating the bikes from the car areas, accessibility features for people with disabilities, and narrower driveways to reduce the conflict areas as people move through the working waterfront.

Construction began on February 28th, and we're expecting it to wrap up before the end of March.

One more item before I close, which is a preview of more details to come.

Um I want to thank Director of Maritime Andre Coleman, Government Affairs Manager Boris Delapina, and Commission President Gail Gilman for traveling to Washington, D.C.

last week to participate in the American Association of Port Authorities Annual Legislative Summit.

AAPA represents 130 public port authorities across the Americas and serves as the primary advocacy voice for the economic and strategic value of ports at the Federal level.

Our delegation held in-person meetings with congressional members and staff advancing key priorities, including securing continued funding for the port infrastructure development program, which is funding our Amador Street rebuild in the Southern Waterfront right now, urging swift passage of the Water Resources Development Act, which is a key factor in our uh waterfront uh resilience program partnership with the Army Corps of Engineers, and reinforcing broadly the critical role ports play in the national economy.

We're going to schedule an informational presentation for you for this and our other engagements over the last month.

It's been a really rich month of engaging with the State and Federal governments, and we're looking forward to discussing more with you at that time.

So with that, I'm concluding my report and I'm happy to take questions.

Thank you, Mike.

Is there any public comment in the room on the executive director's report?

If there is, just go to the dais.

Okay, I'm not seeing any public comment in the room on the executive director's report.

Is there any public comment on the phone?

No comments.

Thank you.

Okay.

Thank you.

Before we go to Commissioners' comments, um I just wanted to make one acknowledgement that I think is really important.

Um, that right now we are a country at war.

And I just wanted to say on behalf of the Commissioners, we, at least for me, my heart's got to everyone who's lost their lives in this conflict, and I hope that our men and women in uniform around the globe, our citizens, and the citizens of Iran are safe in this time of conflict.

So with that said, I'm going to open it now for Commissioners' comments on the executive director's reports.

Commissioner Lee.

Why do I always go for Director of uh it's a great report?

Um obviously lots of things happening.

Um I'm going to skip over uh since I came from the entertainment background.

So more festivals, and now people can walk the uh promenade with their beer in their hands now and without getting in trouble.

So that's a great thing.

That should bring a lot of people in during the summer.

Crab crawl has always been good.

I didn't get to go.

Too much activity for Chinese New Year, Luna New Year's stuff for me.

These partnerships with the downtown, it's great.

We should participate.

I mean there's a lot more stuff's out the market, Bayview.

It's always good that we are open to these partnerships, which it's great.

Look forward to see who's in that waterfront restaurant.

I have I have already talked to uh Scott of you know and referred a bunch of people to him.

So that's great there.

Um the lights are great.

Glad that's back.

I mean, we're cleaning up everything that COVID has damaged is now coming back, and we're cleaning up very well.

Um the rehabilitation of Pier 29 is great.

Um all this cleanup.

I'm really looking it was mentioned in a previous meeting about bundling all our maintenance from uh Vice President Umblem, and I'm looking forward to hearing more about that, because the more money we can bundle together to save money in the future, we can use more for this.

Um what I like to know is uh as you clean up these piers.

Uh now that the mayor signed uh some kind of incentive programs to do more filming in San Francisco.

I I always love watching Nash Bridges still and where they actually when they say they're in the corner, they're actually at the right corner and they're not talking about they're in the mission and they're talking like they're that street in Chinatown or something.

So like to see that at the port.

And they they were filming everything on Nash Bridges on the port.

And that's more revenue for the port.

It's more PR for San Francisco, so I hope maybe during our rehabilitation we could clean up some of our shed space and make it a temporary studio for some of these people coming in.

Um I'm glad that we're removing finally a lot of that stuff in Pier 90.

When I first joined the commission, I was getting emails from people in the neighborhood that kids were skateboarding on the roof, and there was holes there, and I think you guys put this big concrete barrier just to block the entryway.

So I'm glad that's being cleaned up.

Um we're making very great strides, and you know, for the amount of money that we have to deal with and the amount of staff we have.

I mean, you're doing amazing job, which is great.

Makes our job a lot easier.

Uh and so just keep it going.

And I mean, I don't know what to say.

I mean, it's amazing.

Every every time I come to a meeting, how much more progress, but good job.

And good job to the staff.

Thank you.

Thank you, Commissioner Lee.

Commissioner McNeely.

Uh yes, just uh uh a few comments.

Um Mike, great report.

Um it's very clear that you and the staff are working tirelessly to um create more exciting reasons for our citizens to visit the waterfront, and that's that's very important, and this is all exciting.

Um is there any reason why uh Pier 39 is not included in the entertainment zone?

Is it already one or is it?

Yes, so Pier 39 has its own entertainment zone for its lease area, and so they've actually had a couple of events already.

It's uh they're able to self-contain it a little more, and we sort of wanted to spread that uh potential activation to the land side.

So I can't walk with my glass of wine from Pier 39 down Jefferson, or can I?

Not as yet.

And you can only I just want to highlight you can only do that under special events uh when they happen.

So it's we are not yet the French border.

Um but uh we we do see having been in the first ferry building event, you can really see that it it uh it invites it there were way more families there than I expected.

It's not just people trying to Taiwan on, it's people that want to have a lovely drink or stroll with a with a drink.

And so uh my hope is we can bring that to the landside as well.

Yeah, that that's fantastic.

Um for the uh the waterfront restaurant is um is that space um um exclusively a restaurant space, or are there other options that might be available uh for the space or a combination of restaurant and something else?

It has always been a restaurant space.

It's interesting.

Um I I think we're offering it to see what people want to bring us.

Uh we're not we're not high-bounded that it's a it's a large space.

Uh one thing we've seen a lot of um really highlighting around the Super Bowl time is that a lot of people want to come and and have special events on our property.

And so that may be an opportunity to make so to see some real value there, but obviously we also want to have the public being able to enjoy it being on the waterfront.

So I'm excited to see what we get.

Yeah.

And is that a is that a two two-story space?

Because there could be an opportunity for to have both.

Yeah, it's it's really a lot of space, including the outdoor space, which is well wind protected.

So like I said, it's going to be a real opportunity for somebody to really imagine something new.

All right.

Well, thank you.

Thank you, and uh uh congratulations to you and the and the staff for um again cre uh continuing to create exciting moments for the public to visit the waterfront.

Thank you.

Thanks.

Thank you.

Commissioner Adams Excellent Excellent report uh Director Martin and to the staff and to all the the women um in the room, our sisters here, uh Happy Women's Month, and uh and to our President Gail Gilman, and I dedicate my comments today to the great actress uh who was a recipient of the Chairman Award by Olda Davis at the NAACP Awards, and to the legendary Supreme Court Justice Ruth Ginsburg, who graduated at the top of her class in 1959, but could not find a firm willing to hire her.

She had three strikes against her.

She was Jewish, female, and a mother.

May she rest in peace.

Um I also want to say going back to the water firm restaurant.

I've eaten there for many, many years, and it's nice to know I appreciate Ken asked some things that could be done there, weather receptions.

Do we get much traction?

There used to be a lot of special events at the uh cruise terminal.

Weddings and things like that.

And how how is that, Mike?

I don't hear much about that anymore.

Are they still renting that out?

I know it's expensive to really rent that out because of that great view up there on the second floor.

Is it still being rented out?

It is.

That's part of our management agreement with Metro Ports, um uh Metro Cruise, excuse me.

So they do have events there.

Um and we also have some of our events.

So we're we'll be having our Breakfast of Champions event uh up there, and we had uh State of the City came uh with uh Mayor Breed.

Um uh I believe there was a City Bee breakfast there last month.

Um so we do they do have events.

They are expensive.

It's a beautiful building, and we're proud of that.

Um but yes, they definitely do use it.

Um I appreciate you uh highlighting you haven't gotten into it, and we'll hear from President Gilman and then Vice President uh Stephen on his event that he held on Friday, and I was really glad to see that uh you you were in force in Washington, D.C.

I was gonna ask that they meet with the uh Maritime Administration.

I don't think you did.

He a representative was at the reception.

I can get back to you.

Okay.

Was it a commissioner?

It was a commissioner.

Okay.

Thanks.

And then the rehabilitation at uh Pier 29.

It's good to know that that's almost completed.

That's that's been a work uh a long work in progress.

So I just want to highlight it's 29 and a half.

So 29 is still the work we're doing with CAS to stand up the the Arts venue, Cast and Art and Water.

Um is next to it, but it's an office space that we think is a great location for somebody that wants that kind of space.

What do you what do you think is anybody showing interest in it?

Uh we haven't offered it yet.

Um, it is a tough time for Class B and C office space as well in the city, but um we'll see what we can do.

That we often find um different types of tenants who don't find space in in more normal places, really like our spots.

So we're gonna give it a shot.

Okay.

And then uh what what what do you see, Mike, you think would be something that would want to go once the demolitions happen out of Pier 90.

What do you see as uh a tenant or someone that would want to take that would go in there?

So we've have ongoing discussions with the building materials tenants down at Pier 92 and inland from there.

Um some of them have talked about expansion.

You know, there is a challenge with the birth, it's not really a usable berth.

Um, you know, there were different proposals for that land a long time ago.

I remember there was a modular housing factory proposal.

But I think having that space in that location, sort of at the sort of pivot point between Pure 90 and as you go around the corner to Pier 80, there may be some interest, but right now we're just focused on getting it cleaned up and seeing what we can offer.

Thank you.

Thank you, Commissioner.

Vice President Emblem.

Um Thanks.

Uh my great presentation.

Uh a couple of thoughts.

Um I uh just seeing uh the range of uh the items that you presented, I think with uh very few exceptions.

I think what the the theme, the connecting uh theme through the all of them were that we're doing these in partnerships with other uh neighborhoods, other agencies, other entities, and I think that that's uh you know a really uh strong message that uh you know we're stronger together with our you know sister agencies across the uh the city leveraging momentum and other parts of the neighborhoods, um bringing our uh economic strength to uh and sort of tourism numbers.

Um so I think just in general, that's a really exciting um message that I took away.

Um I um you know, um let's see Commissioner Adams mentioned the event that we had on Friday.

Um just just a quick uh report.

I want to thank the uh port staff that uh worked with the Center for Sea Level Rise to host a uh Blue Economy workshop.

Um we had over 50 participants, including our sister ports from San Diego, Los Angeles, Richmond, and Humboldt Bay.

Um there were also uh key um participants from state and regional educational participants at uh all levels of education in particular.

I heard a new term there at K through 14, which is a really interesting term, um, uh as well as uh community college and um uh systems that are very interested in this uh workforce development topics.

Uh so there's a lot of talent and efforts going on in this space, and I'm really pleased that we are able to host the event.

Um it was very interesting to see presentations of the speakers, including our own Dominic Moreno was one of our speakers.

Um it was great to hear what other ports are doing.

Um I would say that um others have been on uh strategic path in this topic longer than we have.

Um that's not to say that there aren't a lot of things happening here in San Francisco, but I think that as we sort of stand up our strategy around this, I think it really is a there's there's an incredible opportunity to understand like like Port of Los Angeles has this uh really strong program called Alt to C that's uh very mature and very robust.

There's been a lot of uh investment, and but they're also reaping a lot of benefits from it.

And San Diego has been um uh incubating a lot of small businesses, and and uh it's pretty interesting.

In fact, one of the small entrepreneurs from Dogpatch, a company called Reef Gen, is now um prototyping something down in San Diego.

So, you know, again, there's a lot of stuff happening here in San in San Francisco, and we can really we have to find our own space in this.

Um and I think the the other city ports are very uh collegial.

They want to participate, they want to collaborate with us.

It's not a sense of uh competition.

It's I think it's actually uh that we can help each other out.

And you know, one idea that was raised was uh there is a uh there is a sort of uh uh coalescing interest in having a center of gravity for sort of a so so so to call um so to speak a like a front office for this you know California Blue Economy Center.

So maybe that's something that we could uh think about if some of our office space.

I I really believe that somewhere in this whole dialogue, the fact that we're here at the Global Center of Venture Capital, Global Center of AI, um, that the fact that we're building one of the most high-profile uh resilient waterfronts, uh we we are have a big near-term push on clean uh clean energy at our port.

Um I think that that really you know this it aligns with this.

So this is not a topic that's a new, you know, new thing.

It's really just sort of helping us make more out of things we're already doing.

And I think that it gives us a great opportunity.

OEWD was here from the city family, and they're very bullish on this idea.

So I think there's a there's a lot of things we can be doing.

So um with that I'll uh I'll pass, but thank you for the um uh presentation.

Thank you.

Well, thank thank you, Vice President MLM, and also thank you for for bringing this forward to us.

I think this is really exciting about the blue green economy.

Um and Mike, thank you for your report, and I have some comments, but I think just dovetailing because I also got to spend a lot of time with the Port of San Diego.

Um I when I was in um at AAPA at the legislative summit, and I know we're gonna get a fuller report, but I I do want to just uplift how important these summits in going to Washington, D.C.

and collaboration with our fellow California ports, particularly ports that are not maritime heavy, either from cargo or shipbuilding, because together we are a mighty force.

And for us to push to have um you know the port infrastructure um development project, which is federal funding to get that to support crews, which it normally does not right now.

It can do roadways, it can do other things.

Um partnership with San Diego is key when we're doing those lobbying visits and we're the fr in front of both the California delegation, which um is the full delegation of the pe and individuals representing us, not um red or blue.

Um it really is important that we work together and have this sort of interconnection between our ports.

And I think San Diego in particular is the most aligned with who we are and what we're trying to achieve.

And it was just really, really nice.

And to see how much even Oakland, Los Angeles, and Long Beach care about some of the very same things that we care about, the 35% design rule that's come down from the Army Corps, which is going to make it hard for us to move our sea level rise projects unless we get some concessions and how they account for that.

They had the very same issues even when Oakland leaves with that.

We are the largest refrigerated port containers on the West Coast and Long Beach leads with something else.

I think that through line of us all collectively working together is really really important.

So I'm excited to hear from the staff that I got to travel with when they report back to us.

It was a great lobbying and educational seminar with a whole commissioner session on the second day in the morning.

So I'm very excited that I got to attend and represent the Port of San Francisco and the city and county of San Francisco.

But these things are important.

If we're not at the table, particularly with this administration, we're not going to get our message across.

And it really resonated with with some folks that were unlikely suspects.

So I think it was a really positive thing for us to do.

And it was amazing that simultaneously while we were there, this was happening back here.

So I I just wanted to thank VPM Lum for helping orchestrate this.

It just strengthened our collaboration.

I also wanted to say again, great partnership with the Fishing's North Community Benefit District.

I went to the Crab Crawl again this year.

200 folks registered for it, most of them local San Franciscans, and they had a lot of walk-up business, and it was a jam-packed event, gorgeous weather.

And I really want to urge everyone, even though it is somewhat walled off for construction purposes, but you can still peek in if you walk around the back side.

It is amazing to see Ali OTAs down.

You go to Wharf J 9 and you can see straight through from even with the smokehouse construction happening, right through the bay.

The vision is there and alive, and I'm so excited to see this plaza come to life this summer and really activate the waterfront.

Folks are excited.

You could see people looking and on Sunday with the weather, it was it was packed down there.

So it was a really um great event.

Um and then just finally, I had just one question about the downtown San Francisco partnership, which I think is wonderful.

But I was just curious if it operates like a traditional CBD or bid, and if so, does that mean that um since that even though I know we have subleasers, we are technically the landlords, so would we be buying into this program or is or is this something that we push down to our tenants if if there's a fee structure that's like a traditional benefit district?

It's it's it's like that.

Um we're we're unique in terms of how our property gets looked at, but effectively the goal with the further discussions of mechanics is how that would work.

Okay.

Um and so that's something that we want to sort of work out what the services are we're looking at on our side, and then we'll talk to our tenants about participating.

But we expect to make uh an investment ourselves too, um, not on the order of what we've invested in fishermen's wharf.

Um we don't think that level of investment is needed here, but certainly, like I mentioned, the ambassadors and the special event services we need for things like Fourth of July and Fleet Week are gonna be really helpful to us.

Okay.

Yeah, I was just more curious about how it mechanically would.

So I will wait for you to come back and brief us on this item.

I'm excited about it.

But um, you know, it's it's normally a percentage of commercial um footage or space.

Um, and so some landlords observe it, some landlords push it down in a triple net lease.

I was I'll be very curious when we come back with the mechanics.

The added complication is all of the leases affected here are have different provisions.

And so that's part of what we're working through with the help of our attorneys and uh OEWD.

No, thank you.

It's very exciting, and it's exciting to see all this activity um everywhere along our waterfront from Crane Cove and Opera to the Northern Waterfront.

So thank you so much for your report.

Thank you.

And um that concludes comments.

So next item, please.

Item 10 is the consent calendar for callers who wish to make public comment on the consent calendar, please dial star three to raise your hand to comment.

Item 10A requests for retroactive authorization to modify construction contract number 2857.

Crane Cove Park Playgrounds and Dog Park to extend the substantial completion date.

This is resolution 2611.

Item 10 B requests approval of a proposed memorandum of understanding with the San Francisco Police Department for the periodic use of Pier 94 for emergency vehicle operations course training.

This is resolution 2612.

And item 10 C requests authorization to accept and expend a grant from the San Francisco County Transportation Authority in the amount of 4,973,000, including $4,500,000 for the Mission Bay Ferry Landing Project and 473,000 for ferry gate B improvements.

This is resolution 2613.

Thank you.

Commissioners, do I have a motion to move the consent calendar?

So moved.

Thank you.

We have a motion and a second.

Do we have any public comment on the consent calendar?

Please make your way to the podium.

Good afternoon, Commissioners.

I'm Alice Rogers from the South Page Rincon, Mission Bay Neighborhood Association.

And we just want to appreciate the work that the staff put in to securing that grant for the fairies at Mission Bay and elsewhere.

We know that in this current condition, it's not the easiest.

And thank you.

Thank you.

Is there any other public comment in the room on the consent calendar?

I am seeing none.

Jenica, do we have anyone on the phone?

No callers on the phone.

Thank you.

Okay.

Public comment is closed.

Commissioners, we have a motion and a second.

All in favor of the consent calendar?

Aye.

There's no one opposed.

So resolution 2611, 2612, and 2013 are adopted.

Jenica, next item, please.

Next item is 11A, which is an informational presentation to consider and possible action to adopt.

Proposed leasing efficiency policies, and monthly rental rate schedule, monthly parking stall rates and special event rates effective upon adoption.

These are resolutions 2614, 2615, 2616, 2617, and 2618.

For callers who wish to make public comments on this item, please style star three to raise your hand to comment.

Good afternoon, Commissioners.

I'm Rebecca Benissini, your strategic portfolio manager, and hello everyone in the audience.

The items before you today, I'm going to describe in a little bit of detail, so please bear with me.

But Michelle will be on hand to help me to explain why we have four resolutions to cover them all.

Okay.

Getting right into it.

The presentation today, I'll help you understand parameter rates.

I'll do an overview of our portfolio.

We'll do some market updates.

I'll go over the rates, and then I want to go over in a little bit of detail the proposed leasing efficiency policies that are uh comprise most of the resolutions.

So just to kind of ground us into step back and might be helpful for some of the newer commissioners.

What are parameter rates?

So the administrative code requires that city property generally be competitively bid unless there are special findings made.

This works really well for most of city property property because most departments aren't leasing uh you know 800 agreements at a time.

It doesn't work that great for the port.

Uh so the first about 25 years of the port commission's existence, staff brought every lease to the port commission to consider.

Um there was a tremendous innovation in 1993 when staff and the commissioners got together and the commissioners delegated to staff the authority to lease uh property so long as they met minimum parameter rates, and that's what uh that's what these are.

So to set these rates, I get together with everyone in the room, or most of real estate and development and most of the maritime staff.

Thank you, everyone, for helping me.

We also hired a consultant, uh, one of the principals who helped author the report, Leo Ma from Century Urban is here with me to answer any questions that might come up.

We look at the market, we look at our portfolio, we look at how leasing is going, and we propose these rates.

Uh, generally the rates are set every year.

The last couple of years, it's taken us a bit more time than every year to come forward.

Uh, and we think it makes more sense to bring this before you in time with a two-year budget because the rates kind of affect the revenue that we get that we get in the budget.

So going forward, we'll be bringing the parameter rates to you every two years along with um Megan's budget.

So those are the parameter rates.

I also just want to note that they sit alongside the four other rate schedules that are published.

So with these five rates, these sort of comprise the quick handbook to leasing at the port.

All right, the port's portfolio.

So it helps when you're thinking about each of these rates and why there are so many pages in your exhibit A that tells all of the rates for all of our property.

Do you just think about how how diverse the property is?

Uh so the pie chart on the left, you've you've you've probably heard we have seven and a half miles of waterfront.

You might have heard we have about 834 acres of land.

We also have about 530 commercial property agreements, about 25 million square feet of space under contract.

So the pie chart shows the roughly 25 million square feet of space and how it's sort of laid out.

And just sort of to quickly, there's a lot shown here, but I'll just highlight what's important for you to kind of keep in your brain.

28% of the land is that kind of light blue or dark blue to light blue, those are all maritime uses.

So about 28% of the lease space is maritime.

27% is shown as utilities.

That's a very large number because currently we have a lot of property under lease to PGE, submerged land to do some uh restoration and rehabilitation of that property.

Uh so that's a large number.

15% of the land is under uh master tenancy, and about five percent is under parking.

The figure on the right shows our vacancy rates for shed space and office space.

Those are those are what we track kind of consistently.

And as you can tell over the last three years, it's a it's a bit stable, um, which is good.

Office vacancy has come down just a bit, and the shed vacancy took a big dip, and that was great, and that was because we signed an entire Pier 29 shed lease, so that had a big impact on that number.

Now, where do we get our revenue?

This pie chart shows the revenue that we received in 2425 from our property lease agreements, all of our lease agreements.

Uh it shows about 131.6 million dollars in the pie chart.

And again, that upper right hand side, all those kind of blue shaded pieces of the pie are maritime uses.

They make up about 27% of the revenue.

So 28% of the land square footage, 28% or sorry, 27% of the revenue.

So very consistent there.

The remaining 63 of the 63% of the revenue in the pie chart is made up of just kind of quickly going through a couple of them.

Parking, 18% of our revenue.

Shed and land, shed land, uh including indoor-outdoor kind of space, that makes up 22% of our revenue.

Master tenants, 14% of our revenue, office 7%, and then that those little slices in the orange on the right hand side, those are all retail and food and beverage.

Uh so we spend a lot of time with the commission talking about what kind of food tenants we're gonna have.

That makes up about 13% of our revenue.

So just so you have that is in your mind in terms of where we get our revenue, how our square footage is is arrayed, and the figure on the right combines the two pie charts, so the dollars per square foot by use types.

All right, that's the background on our property.

Now let's think about our invirows.

We sit in San Francisco.

Um, the market conditions for the city have obviously been changing over the last couple of years.

I'm gonna go through industrial and then office.

So the figures here are the industrial market for the city.

The one on the left is vacancy or availability.

One number includes subleasing space, the other one is just sort of what's vacant on the market.

Uh they track together.

As you can see, vacancies still going up in the industrial market, which includes the manufacturing storage and industrial space.

Asking uh lease rates still going down, although indications this was the third quarter of 2025 was when this data was uh tracked for the roughly 20 million square feet in the city.

Uh seems like it's plateauing, so we might be getting close to hitting sort of the bottom of the market.

Similar story on office.

Obviously, a much higher vacancy rate than industrial space and lease rates were still going down, although they really seem to be plateauing.

Uh these uh graphs are track tracking about a hundred million square feet of office space.

And the overall story is that we believe we are now maybe going to see the lease rate start to come back up, but time will tell in the next quarterly report.

So being cognizant of the fact that we are still in a recovering market, we have a couple of different leasing incentives we'd like to offer under new leases.

These are fairly consistent with what we've done in the past, uh, but they're a bit more tailored and easier to manage.

Uh so for new office leases, we propose to allow up to two months of free rent, rent abatement for spaces that have been vacant for at least six months.

And then we'd like to have some flexibility on sub-lease sharing to the extent a tenant needs to sublease their space for one reason or another, so we would share that sublease revenue where we would get 50 to 100% of the sublease excess revenue.

For shed leases, we would or we propose one month of rent abatement per lease year for leases that are at least three years.

And for the maritime leasing incentives, very similar to what we've been doing in the past.

Uh we used to call them triple threat tenants.

We've changed that so that we're just saying any maritime type of business uh that is using um apron, shed space, berthing space, that we're able to offer, we are able to offer them office space at a 75% parameter rate, which is consistent with with what we've been doing for the last few years.

And we want to be clear that if they're using the land next to the berth to berth their vessels, that that land would be offered for no charge so long as they're leasing the apron space, the shed in the office space.

So those are our uh proposed leasing incentives.

Also want to note that the parameter rates include our special event rates.

So this could be anything from leasing or renting a picnic table for your big um family reunion event on up to the San Francisco Marathon.

So just as background, we had 44 major events last year, generated about $343,000 in special event revenue.

Arguably the more important thing is that these events bring literally millions of people to the waterfront.

So we want to make sure we're getting paid for the use of our our land, but we also want to make sure that we're focusing on the big um the big headline, which is we want people on the waterfront.

Uh so the sp the parameter rents include a number of fee waivers requested.

These have been requested over the last several years.

They include um events that are sort of routinely held at the port and have been very popular.

Uh they include things like fleet week, um, ferry plaza terminal events, Juneteenth, also city or federal sponsored activations.

We also um offer that or we keep in the resolution that the executive director would have the authority to waive fees for new special events that come to us so long as they're meeting public trust goals and that they aren't taking staff time or taking up space that would otherwise have generated revenue for the ports.

So we have a little bit of wiggle room in case there are special events that come to us that we hadn't um that hadn't come to us before.

Okay, so exhibit A lists all of the parameter rates just as an overview, they kind of take account two things.

First, we're still in a softening and recover or or softened and recovering market, so we want to be cognizant of that, but we also want to take to take account of the fact that it's been three years since we reset our rates and inflation has caused many things to go up in price.

So many locations have increased between eight and ten percent from the 2023 minimum rates.

There are several locations that uh for one reason or another, they've been vacant, Pier 35 offices, um, they they've been vacant or are in poor condition, Pier 68 trailers, or they've been sort of not properly set, and this is uh I want to note the curb fronting Pier 15.

There's quite uh there was quite a high fee for that curb uh where buses pull up to let off school children in front of the exploratorium.

So several rates have been brought down.

Those are the ones I want to highlight for you.

Um the others for the most part have gone up.

We've increased telecom rates, those are very high demand at the port.

We have new rates for drone shows, um, and we've built in a 3% increase that we'll just automatically adjust to in July 2027.

Okay, those are our parameter rates.

The second part of the presentation I want to focus on process improvements.

Um this is the results of conversations I had with Kim and Scott looking at the real estate and development sort of process of leasing, and we really focused on what barriers do we have to leasing.

We looked at over 20 years of resolutions and policies, and we tried to identify roadblocks, roadblocks to reaching tenants, to marketing spaces, roadblocks are property conditions present, um, and finally even getting back spaces from unsuccessful tenants.

So we're very pleased to present these six policy changes to you.

The first one, um, this policy builds on uh the the number one is to allow the port to pay broker commissions in a wider variety of cases than we are now.

Uh so this policy would build on our ability to use brokers for our vacant food and beverage locations, and under the policy, we would be allowed to execute leases with tenants who are represented by brokers, or we'd be allowed to retain our own broker for office shed land, and we would pay that broker commission so long as it's at market at a competitive market rate, and that the executive director judges that signing the lease is in the best interest of the port, because presumably we would get much more lease revenue than we would pay out in leasing commissions.

Um we summarize a number of ways we could pay this broker commission.

I just want to point out that one of those could result in us signing a lease that is below parameter rent because we would sign the lease and we could potentially have the tenant pay the broker uh in exchange for lower rent.

So I just wanted to point that out because that's one of the items in the resolutions.

Uh staff are pretty excited about this.

Brokers are big players in San Francisco commercial um real estate, they're the gate gatekeepers, and many tenants don't look our way because they're represented by a broker.

So we think this could be significant in a couple of places.

Roundhouse that is vacant right now, it would be great to have brokers either help us or to uh meet tenants who are represented by brokers.

And there are a number of land locations where we have a large amount of land available and we could encounter land brokers.

May I ask a question, right?

Please.

Right now, madam.

Please.

No.

No, because we haven't done public comment yet.

Okay.

So you need to wait, Commissioner.

Sorry.

That's okay.

I'll write my question down.

I'm like, I'm not saying no.

Sorry, threw me off.

Um the second policy uh aligns port commission approval to when the board approves leases.

Um the current policy is that the port commission approves leases five years or more and a million dollars or a million dollars or more to the port.

The board right now uh approves leases that are 10 years or more or a million dollars in revenue.

We'd like to align those two, and this will really focus all of our time on items that require sort of substantial public review versus those that are more routine leasing matters.

And it would under this policy, the port commission approval would stick stay with whatever the board approval is.

So if the city charter language changes, then the port commission approval would just move in line with whatever the board uh would like to see in terms of lease approvals.

Item three is the retail leasing policy replacing.

We've already changed the retail leasing policy from 2011 to allow competitive processes managed through a broker.

Uh the rest of the the resolution before you would make additional edits to make it more clear in terms of what steps staff take when we are presented with a lease amendment proposal or a new lease proposal from existing um tenants.

So it would require that tenants submit financial data, a plan to improve their business, uh port staff would walk the premises with the tenant, review their business plan or materials for what they consider to be their future business plan, and then consider the tenant's lease history, market conditions, the reasonableness of the plan, and assess the impact on the port, and then we would come forward to the port commission to seek your direction.

So that policy would uh sort of clarify some of those steps.

The fourth policy is giving staff authority to waive de minimis late charges or finance fees.

Uh this would really help us clean up some of our accounts receivable books.

Uh what has happened in the past, or I'll just say what the policy would give staff the authority to waive de minimis charges in two cases.

One when outside circumstances cause a late payment.

Um it literally happened to some of our staff members where a UPS truck was late and it had a number of checks in it, the tenant thought they paid on time, then they get the late bill and are confused about why we're charging them late fees and we're not able to waive those, and they just sit on the account for months or years.

So we would uh be able to waive the late fee in that circumstance, or if a tenant made a reasonable error, there was some date change and they didn't realize that, but they're otherwise a timely um paying tenant.

So it would authorize staff to waive up to $300 up to two times a year for tenants in good standing.

Uh we would also be allowed to waive more than $300, but only if this invoice size was the only reason the late fee was bigger than $300.

So it was one late payment, uh, but the invoice was so large that the fee that we charge is higher than $300.

So we could do that up to two times a year as well.

Uh it's important to know that right now our accounts have about $3300 in de minimis late charges for $130 tenants.

So we're talking about a lot of tiny two and three dollar um lines.

We think this would really help us support positive relationships with our tenants, um, have a clear way that we would do this, uh, and also just maintain accurate records.

Policy number five would significantly expand the tenant improvements a tenant could do uh before moving in and receive rent credits.

Our current policy dates back a couple decades.

It provides a couple dollars per square foot for new paint or for new carpeting.

We'd like to expand this based on what we know about all the things our property could uh use in terms of getting prepared for tenant occupancy to allow a tenant to propose work that they would need in order to move in, and we would consider and then negotiate rent credits with them in order to do that work.

And there wouldn't be a dollar cap or we the staff would just consider whether or not it's in our financial benefit to consider that lease and provide those rent credits.

That's policy change number five.

And the last one has to do with mutual termination agreements.

Current policy allows staff in and this is this does not occur very often in speaking with um the assistant deputy director.

We typically sign a handful of mutual terminations a year.

So right now, staff have the authority to sign a mutual termination agreement for leases up to $20,000 per month.

We would increase this to $30,000 per month.

But more importantly, is that fourth bullet down.

We currently can only sign the mutual termination agreement if the tenant kind of definitively documents that they are financially non viable.

We would change that to financially nonviable or they pay us a termination fee equal to half of their remaining contracted rent.

We think this would save some of the gray area in determining whether or not they're not financially viable, give us a fee equal to half of what we would have expected and the rest of their lease term, and we would get the property back in the condition that we want it in.

So that's what's really important to us, and we will save on legal costs and get back releasable space.

All right, before you are four resolutions that we're recommending adoption for, I know there were six policies.

That's because the reason for that difference is that the first resolution includes two policies along with the parameter rates.

They're just really to do with leasing and in speaking with our city attorney, it made more sense to keep the parameter rates and the leasing policies regarding tenant improvements and board of supervisors port commission approval alignment in that one resolution.

I really appreciate your time and I'm happy to take questions at the right time.

Thank you, Becca.

Commissioners, do I have a motion to move this item?

So move.

Second.

Thank you.

The item is moved now.

We're going to ask for public comment on this item.

Is there any public comment in the room on the parameter rents and these policy changes?

I am seeing none.

Is there anyone on the phone?

You have no colours in the phone.

Thank you.

Now public comment is closed.

And Commissioner McNeely, I'm going to go to you first.

Thank you.

Madam President.

Thank you for for the presentation.

I mean, it uh it all sounds like very reasonable and sound uh policy changes to advance the business.

So congratulations on that and for being very uh thoughtful approach to um you know creating policies that kind of drive revenue but also appreciate the interests of our of our of our tenants as well.

I had the question about the broker commissions and I was interested about the rationale before.

Is it a it was it a is it a commission role that um or was there some other rationale that prohibited us from uh working with brokers in the past?

You've got it exactly right.

So we worked with brokers and then we stopped working with brokers when we had very strong market conditions, and there was a view of why are we paying people to bring us tenants?

Tenants are knocking down the door.

And so we stopped paying, and then we began again in 2021 was when we began that pilot program to work with brokers just on food and beverage.

And we've had success and we want to have the ability to do it again.

Okay.

That's all I had.

Thank you.

Okay, thank you.

Commissioner Lee, do you have any questions?

Well, Rebecca, welcome back.

Only you can do this kind of report.

I mean, I when I first started, these are the conversations we were having right in the beginning, and then you left.

So I'm really happy that the finally we're down to the process, and I just have a few things.

Um was the last time that that this was actually was it like we've we've gone through this whole process again.

Yes.

I'm just curious.

July 2023 is the last time you all approved parameter rents.

And um I mean the incentive programs, everything is kind of everything that I kind of envision when I first came aboard this commission, and I it's it's going in the right direction.

Um I'm curious, do we have and I asked this question before, and I know it comes from the city city hall.

The brokers, do they have a term limit?

Like how long we use these brokers, like how long do we get to use Maven?

I mean, there's a ton of other brokers.

And the same thing, like you say, when we're in the good rental market, they're just sitting around doing nothing and getting commission on.

And I don't like that.

And we're not out of it yet.

We still need broker partnerships.

But I'm just curious, is there is there term limits?

Is there a performa?

Is there something that they that the commissioners get to you know evaluate their performance before they get a renewal?

Yes.

Is there anything like that?

I can tell you a little bit, and Scott Lansittle might have even more recent uh experience than me.

So our we have currently have two um contracts with two brokers.

Going forward we're anticipating looking at the city's bench of brokers they have maybe nine that are pre-qualified and we may proactively look at contracting with one of them and we are anticipating potentially a fee for service model where they just help us with marking the materials we're kind of paying them on a consulting basis or we could do a commission basis where they do market the site but the exact concern you have raised is one that has been raised in the past and we're definitely cognizant of and that is you get into a contract with a broker they don't perform and then how do you terminate it?

All of our contracts and the two that we've signed already have very strong termination language.

I haven't gone through the termination process uh with one of our brokers yet but our attorneys try to protect us to make sure that after X period of time if nothing has been done then we can terminate and move on.

So there's an there is a monitoring in place.

Yeah because um you know I'm sure a lot of brokers would love to be uh broker of the port and like you say you might have one broker right now just kind of idling around and not doing much and and our job is to try to get these things leased as fast as prop possible we've given them enough incentives and looking at this policy changes um let's see on the curious on these little transactions like you say these late charges and stuff if if we don't uh uh amend these policies what do they do just stay on the books forever?

Like that's I mean nobody goes in there the direct nobody goes and say hey you know this three thousand is kind of a waste of paper ink yes it is literally stacks of paper with little tiny rows that we always see on our collections um staff members desk and they're emailing people you still owe this amount of time there's usually a back and forth like tenants don't know what it's about it's sort of like an unclear charge or if it's gone on for a couple months so that's the kind of thing uh back and forth we want to get out of so they can focus on the bigger value collection.

Yeah I mean it's a waste of time especially people change and they forget what it was and you know it drives me crazy too.

I don't have anything really the TI great incentive programs for especially new people I mean we're not out of it yet we're gonna have to do this for a little while I think it's I think it's a good policy upgrade.

So I'm in support of of this resolution.

Thank you Commissioner thank you.

Meticulous articulate very thoroughly not a lot of questions.

Only thing I can say I'm going to support this this is so long overdue.

And we trimmed a lot of fat off we should have trimmed off a long time ago and we expedite in something and you've got my support thank you thank you commission DP emblem yeah hi hi Rebecca thank you very much for your presentation and also um I want to say hello to Leo who was a classmate of mine.

So I haven't seen you in a long time Leo and I just looked around.

Ask him a really hard question.

Sorry um thank you for everything you presented I I um I'm very supportive of this and it was good context for me because I wasn't here last time this was looked at so it's really helpful to see some of the statistics about our whole portfolio.

I am very supportive of everything that was presented.

I would just uh ask that as we move forward sort of in line with some a couple of our last conversations past couple months is like how does this dovetail in like okay so it's all great to bring the brokers back but then what are we asking them to do?

Because I I think that's what I'm really interested in is how I think brokers uh perform the best when when you ask them the right question like we need we need people who are thinking about our whole portfolio and so whether it be for the real estate or the industrial or you know just sort of really thinking proactively about how to position the whole portfolio so they're not doing it.

It's not a transactional broker relationship it's not like one property one property one property.

So I'm really I'm really interested to hear how you think we can be more strategic with them because I'm sure you've thought about that and that's not what we're talking about today but I would love to hear your thoughts on that maybe in an upcoming meeting.

Thank you.

And that's that's my that's my request.

Thank you.

Thank you Becca for the report um again I just want to echo what my other commissioner said these are the right items for today.

It's streamlining processes it's giving authority to the staff where they need it.

Um we seem to vacillate between these very small spaces that need a lot of investment, like the butterfly space and Frairy Plaza East, which is huge and needs a lot of investment.

So I really think a broke broker relationship, the right ones can absolutely help us do that with strong oversight.

So I'm a huge proponent of the package and really am liking the delegated authority back to staff and the ability to weigh these fees and aligning us with the Board of Supervisors.

You know, we should all be on the same page about what our approvals are.

So thank you.

This all makes sense.

You're welcome.

Okay, commissioners, we have a motion and we have a second.

All in favor.

Aye.

Okay.

Motions passed.

Resolution 2614, 2615, 2616, 2617, and 20618 are adopted.

Next item, please.

Item 11B is an informational presentation identifying key factors that developer and port staff will evaluate for potential to improve the feasibility of the proposed redevelopment of peers 3032.

For callers who wish to make public comments on this item, please style star three to raise your hand to comment.

Good afternoon, commissioners.

I'm Christine Maher, Development Project Manager for the port, and with me here today for this six-month update on Piers 3032 are my colleague Wyatt Donnelly Lendold and Jesse Blout from Strata Investment Group.

I'll start off the presentation with just some very recent background on Piers 3032, followed by an overview of the factors that port staff and strata will evaluate for potential to improve project feasibility, and then close with the next steps.

Last year the commission approved terminating the ENA for CWA Lot 330 and Piers 332 and replacing it with two new site-specific agreements with Strata affiliates.

This was done to advance the development of much needed housing at Seawallot 330 while allowing time to evaluate feasibility improvements for peers 3032.

The new ENA for peers 3032 paused active negotiations for 18 months while we collaborate on ways to improve project feasibility, which as you'll recall is challenged by a 125 million dollar give or take infrastructure funding gap, the availability of federal funding for new infrastructure in San Francisco, the unprecedented office market vacancies, and the complexity and timing of the port's seawall resiliency project.

The ENA also required updates to the port commission at six months, six months, which is why we're here today to identify factors that will be evaluated as a way to improve project feasibility at 12 months to present the results of this evaluation.

And then again at 18 months, hopefully for approval of a new schedule of performance for the project.

So we've identified six strategies that we will evaluate as a means of improving the project feasibility, all within the parameters of Senate Bill 273, which is the project-specific legislation that was passed back in 2023.

The first strategy is using an alternative construction methodology to accommodate three floors within the existing height limit as opposed to two floors with a mezzanine, which is what you've seen before.

The second is reducing or altering the project scope.

Examples could include reducing the amount of peer construction needed or changing some of the retail to higher revenue uses.

Third is potentially the phasing of community benefits to reduce upfront cost and better aligned benefits with the availability of public financing sources.

Fourth is identifying additional locally controlled sources, such as taxes and fees that could help close the gap.

Fifth is exploring opportunities to streamline the regulatory framework, which could result in shortened entitlement and construction durations.

And sixth is monitoring the office market for improvements as market conditions remain the most significant factor impacting the project's feasibility.

The next six months will provide the opportunity for strata and port staff to deeply explore the factors we've identified today and then return to the port commission to present the findings of this analysis at the 12-month update.

Six months, port staff and strata are optimistic that some combination of the factors we've identified today will put the project in a strong position to move forward when the right office opportunity comes along.

That concludes the presentation.

Port staff and representatives from Strata are available to answer any questions.

Thank you.

Thank you so much for your presentation.

So before we go to our our conversation, is your conversations in the room.

Is anyone want to do public comment on this item?

Alice, come on up.

Thank you.

Hello again, Commissioners Alice Rogers, president of the South Beach Rincon Mission Bay Neighborhood Association.

And I just want to applaud as does the entire neighborhood, the ongoing conversation to make the peer viable.

So many people have been so disappointed about the separation of the two properties.

We understand the conditions.

But it is very heartening to know that the dialogue is going forward and there still could be hope.

So keep it up.

Thank you.

Is anyone else in the room who'd like to make public comment on this item?

I am not seeing any.

Jenica, do we have anyone on the phone?

We have no colors.

Okay, then I'm going to close public comment.

Commissioners for staff.

Do you have any Commissioner Lee, do you have any questions for staff on this item?

I'm just curious.

So I I know they want to put the peers on hold, which is uh disappointing for the neighborhood because you know, and especially us, we're looking for another possible way to park cruise ships.

Uh I'm just curious, are we allowing, and I think we are, right?

We're allowing them to look for a viable partnership in the just a peer project without really attaching themselves to the uh the seawalled uh high rise.

Yeah, so last summer's action um separated the projects.

What this allowed us to do is C Wallot 330 to advance.

That generates public financing through a the IFD CFD combination that the ports used on other sites.

That generates around 60-ish million dollars, depending on different interest rates for uh funding infrastructure at Pier 3032.

For the peer itself.

For the peer itself.

Okay.

Without CWALOT 330, the gap that was identified and has been known for a long time, which is about 125 million, um grows.

So we wanted to move that forward to put the peers in the best position they can be to move forward.

I think we had hoped there'd be more improvement in the office market, um, and we'd see potentially state or federal funding come in to fill that gap, given a combination of factors and the continued kind of challenges in the office market.

It s prevented the whole project from moving.

Sure.

Um, which is why we did that separation.

But uh but the 60 million, but the 60 million is only allocated to the peer, correct?

Uh we cannot use that money.

It it's allocated to that portion of the waterfront so not necessarily the peer, but also think of the seawall there, which is a portion of the project and protecting that to make sure how's it going with the uh building of the high rise?

Have they filled they found funding for that gap?

For the C Wallot 330 project.

Um that can I speak to that?

Okay.

Um so that project is continuing.

We're working through uh transaction document negotiation right now and LDDA and a lease, and we'll bring that forward soon.

So initially, if I was an investor of Pier 3032, and I know there's sixty million dollars potential.

Wouldn't that be an incentive to find somebody outside the market to be a partner of Strata?

Yes, and I think Strata is hopeful to proceed with the project.

Not it is not necessarily about a partnership here.

Um it's more just about the infrastructure needed.

The total bill for infrastructure, and this is before you build any building is somewhere in the ballpark of 400 million dollars.

Um so that 60 million is really just a seed fund.

So Strata actually try to find what this item is about is trying to look at the project, and and this is just ideas.

We're gonna come back in six months with a lot more meat.

We wanted to preview the ideas.

So when we come with all the the details, it's not a total of the process.

I'm just asking it.

I'm just asking for progress.

That's all.

Yeah.

So I think the progress is in six months.

These are the ideas.

We're going to come with a lot of details of here is how much this policy change will impact that gap, how much it will change uh the numbers.

I can tell you directionally, for example, fitting three stories into the 45 height limit instead of two and a half has a a very positive benefit.

We need to do a lot of analysis to understand what that quantification is.

And again, you're talking about Pier 3032.

Yes, Pier 3032.

So that will close the gap.

But I can't say today how much.

We need to look at the pro forma.

And there's a balance of it's not necessarily you just add square footage.

You may reduce other things in the middle of the side.

No, no, I guess I'm just I just where we're going.

Okay.

And we want to put it in a position.

I think it's I just want to tell the public because the public really interested on developing.

And for us as a port, the cruise ships bring income to us.

So since they got the entitlements, I'm looking to see where we're at.

Yeah.

You know, are they actually looking for partners separately?

Okay, they got their people for the what they are doing right now is we are looking at the project to make this as financially feasible as possible and position it in an incredibly challenged market.

Sure, sure.

That there is improvement and narrative improvement.

Um but as Becca showed in her last presentation, we're still in the mid-30s on an office vacancy rate, and the office is the economic driver for this project.

It needs a tenant to move forward.

Sure.

Um they're constantly talking on that.

So I'm just asking where we're at.

If are they soliciting two separate deals?

You know, there's people that might not be interested in the housing per se, but they look in at the potential of the retail and also the port, you know, our incentive is to have another place to park ships.

The neighborhood wants the improvement.

The neighbors want the improvement.

She's asking, I think that the we just want to know our role is to do that.

Maybe there's somebody out there listening that they could talk to Strata.

They might be interested in in you know, partnering with Strata for this particular project.

So that I'm just, hey, I'm just asking the questions.

And and you can tell me more if you want to.

Thank you, Commissioner Lee.

My name is Jesse Bladden, partnered Strata.

Um just to clarify, we do have a financial partner for for this project.

The issue isn't whether we have the investor, it is whether we have a feasible project.

Okay.

Um and so what we're engaged in with uh the port team and separately on our own, we're doing things uh is to sort of how do we sharpen our pencil to address some of those feasibility challenges that we talked about when we were before you um this past uh last year, um which you guys made the policy decision to say, okay, go ahead and get the housing built.

Sure.

We have a housing crisis, it's a great project, and it generates this upfront 60 plus million dollars to be invested into the future project across the street.

What we're doing doing now as why I mentioned is we're kind of turning over every stone to see what can we do both on kind of bringing down the cost, building a more efficient project, which is what I was talking about, but also how do we reduce the regulatory time frames?

Because one of the things that's really challenging about this site is you know, we we're building in the water, there's a lot of challenges with uh driving piles in the water, there's a lot of challenges with the permits you need for all that.

Right.

How do we streamline and do some of that front-end work now so that when we actually do hit that feasibility point, we're actually ready to go.

We're also doing a lot kind of on our side of the ledger, looking at construction.

Um it mentioned we're proposing to build this with cross-laminated timber building.

Is it are there things creatively we can do to lower the cost by even building pieces of this off site and bringing it in when it's ready?

You know, we're we're doing everything we can.

We're spending money in furtherance of that.

So, you know, I will say, just to reflect the end of this the opening um presentation, we are feeling I would say more optimistic than we even did last year.

The market is getting better.

Um, even though there's still a high vacancy rate, um demand at the sort of top end of the market is very strong, and so we're feeling more optimistic every day that we're heading towards feasibility, and we're not quite there yet.

I mean I think you're on the on the right track because we do have a mayor that want things to move.

I mean he's looking outside the box, he might get more cooperation with uh the environmental people.

I mean, I've I just let at least you're telling the public you guys are not just sitting there.

I think there was a time where the where we thought, okay, they're gonna put this pier on hold and build their building first.

At least they know that you're treating it separately, and I just want to make sure that the public knows.

And also support because we really we keep looking for another place to put another cruise ship terminal or at least a park a boat.

Yes.

And I think uh, you know, that's gonna be probably the first place to go.

So we're kind of anxious to hear what's going on.

So that's the only question that I had.

Yes.

And uh we're anxious to hoping anybody out there want to partner with you, maybe call you up.

Yeah.

We only need to, you know, prelease half the building before we start.

So thank you, Jesse.

Thank you, Ly.

Commissioner McNeely.

Um I I don't really have any questions.

It uh uh thank you for the a great presentation.

It it looks like there's real good faith on both sides as we move forward on it, and so I'm I'm happy with uh what what I see.

Thank you.

Commissioner Adams.

Before I speak, Mike, I know you you you reached it.

You got anything to say, I would like for you to talk.

You got something say then I'm gonna go behind you.

I echo uh the great presentation and the and the comments from our partner.

I'm I'm I'm glad we split these up.

I think the housing project is very important for the city right now, and it's gonna create dollars to move forward with these other ideas to try to try to square the circle and make this happen.

So uh I'm looking forward to moving forward in this process, and I'm glad we're having this check-in to to confirm that we all want to do that.

Thank you.

Madam President, hey, excellent.

You know what?

This is excellent.

We're at where we're at, and I like it.

And you know, it says some Strahd is here in the House.

They haven't walked away.

They're here, he showed up, he said in the back, he came up, they're ready, and we're at where we supposed to be.

This is a very complicated project.

And we know and we the building trades, everyone's on board.

Rudy and Larry came down here and put their reputation or stock control, and we support them.

This is going to be a great project.

And if it was so easy, it would have been done before.

This is complicated project.

The war is a lot of people that walked away from this.

It's like David versus Goliath.

This is a very, very tough project.

And I think they may be on to something by splitting this thing up, and that's okay.

That's okay.

We're gonna get one.

Hopefully we'll get the other.

But I'm okay with that.

And I know the community might be a little upset, but sometimes we live in a society, everybody wants everything right now, and sometimes we gotta be patient because in projects like this, my time on this commission, they just take time.

And there's all ups and downs, and this thing goes sideways, and you'll be back again.

And things change on the dime.

There's nothing perfect that comes in.

So I think that we're kind of right where we need to be.

And I appreciate the effort.

I'm sure you've had a lot of sleepless nights.

I think you've had a couple more gray hairs since I've seen you.

And because this is comp this, this is this is complicated, but this is exciting.

And I feel a lot of energy into that.

And we'll get both projects.

I really believe it'll happen in the housing.

And I think as a whole, San Francisco is really going to benefit from this, and I think this will be a landmark in our city.

And tourists one day will be able to come to see this and understand the complexity of what it took.

And the commissioners, we have to be really patient.

So does the staff.

And I I just think that this is just a part of the growing pains, and we're getting there.

And I can definitely tell you're working 24-7 on this, and when it gets there, we'll be where we need to be with a couple more twists and turns.

So I really appreciate this and stand in full support.

Thank you, Commissioner.

Vice President Emlum, do you have any remarks?

Yeah, I do.

Um thanks for the presentation, uh, Wyatt.

And uh thanks for being here, Jesse.

And also I want to thank Alice for being here on behalf of your uh community.

I think this is you know, it's really exciting to have um uh hear the community say that they're really pleased with the amount of uh dialogue going on, but also um concerns about the project being split.

And I really appreciate this methodology, the 612, 18 month check-in.

I look at this list though, and I just wonder um has the project sponsor considered I mean I I applaud the idea about coming and saying, hey, we could squeeze three stories into 40 feet.

But is now the time to ask?

Do you have the appetite to ask for a modest increase in the 40 feet?

Um you know, we're looking at something that I feel like this is an incremental, you know, maybe we're gonna improve the margins around the edges, but um, you know, before, you know, when when the when the uh arena was proposed here, we were talking about a much bigger amount, you know, but 40 feet across the street, if I remember right, the the podium is 65 feet across the street.

Is that correct?

Um the height here is governed by the waterfront ballot measure.

Um so the inland sea wallot site ha has a higher height limit of a hundred and five feet.

Um here it's 40 feet.

So to raise that you would have to go back to the ballot.

I believe the state legislation also has 40 feet in it, and that that was set at the state, so you need so that's the limiting factor there, why the 40 feet?

Um, but the alternative construction methodology allows you to get additional floors there within that same height limit.

Got it.

Yeah.

Um my understanding though, like a class A office space, you would be you're gonna go with the Achilles heel of a ceiling height and going in and saying, oh, we've got three stories, but they're all kind of, you know, they're supposed to be you know amazing class A lot of things.

I guess and again, this is this is a calculus that we have to do, but it are we do you do you want to go through that exercise of everything everybody understands there's a lot of changes that would have to happen.

But we're talking about a hundred and twenty-five million dollar piece of infrastructure.

And and then the other concern I have is then I see align like better align certain benefits with the availability of public funding.

Does that mean that potentially we're gonna back everybody's talking about this pool?

Like I'd love to see the pool, right?

But then we're gonna come back and say, God, if we had three stories, we had we had 50 feet, we had 45 feet, we could have paid for it because we could have had a three-story class A building instead of a two-story or a three-story compromise building.

I I'm just asking the question.

Yeah, it's great.

Those are really good questions, questions we're also asking ourselves.

And the only reason to even consider trying to squeeze three floors into 40 feet is because we're looking at the cross-laminated timber methodology, which allows a cleaner lid on the on the ceiling.

You know, and we frankly haven't done the analysis to figure out how much peer it'll actually cost us.

We're in the middle of that right now.

How how much peer cost it'll save us, I should say?

We're in the middle of the analysis.

I don't want to hold that out as some you know panacea.

It's just one of many factors we're looking at to sort of figure out where we can shave costs.

I mean, the big idea behind this project when we originally proposed it is still true, which is taking the overall peer deck down from 11 acres to six and a half or seven saves a tremendous amount of cost and has all these other additional benefits to the bay and everything else.

And so we're we're now we're on the edges trying to cut and shave and do whatever we can to reduce cost to get to feasibility.

And that's just one of many ideas.

Okay.

And I think a combination of the factors is what we really want to emphasize here.

None of the single factors is gonna close the 125 million dollar gap.

We want to put everything on the table and look at all the options and present those and understand each of them in isolation and then in combination.

Um phasing of benefits is one option that we can look at.

We want to look at the other ones as well, and then have the full conversation about what we think is the best path to proceed um to make the project happen.

And I think we we want to move this quickly, you know, the 18-month timeline within a real estate development project is quite quickly.

Um we want to strike when we have an opportunity and keep moving this forward.

And I think these are you know, small pieces that in combination can become big.

So in 18 months or 12 months now, we're in a position where if the right tenant comes along, we're ready to go with the project, and that's what this is all about, putting it in a position so we can execute on that original goal and move the piers forward.

Okay.

Then my other question was um are you are we um like is now a time to ask about full range of allowable uses?

Are are we is there some reason why we're only talking about office?

Um so office is the economic driver.

Um it's the allowed use here, it's high revenue, and it'll it generates the money to do a lot of the work uh and supports the other pieces, the public benefits.

Um the other uses within that, the retail are complementary.

You really need the office to drive the economics within the site, so residential is not allowed on water under the trust, and then um hotel is not allowed via ballot measure.

I think it was in the late 80s, early 90s that it was banned along the waterfront.

Um there are events and um like special events, concerts.

That's not as uh revenue generating as office.

Um but it could be a complementary use that we look at here and other sites as well.

So just clicking on office for a second, or sorry, hotel.

Um I guess it's sort of like back to these regulatory potential limiters on the project.

Is there any appetite to look at at something like that that would add uh economic uh momentum to the project?

Or is that do just the project sponsor and do we still believe that office is the way to go?

I'm not gonna speak to the policy decision about hotels on the waterfront.

That's out of my pay grade, but uh we did just look at hotels as a alternative early on in our analysis, and you know, I will say that office when office is functioning, the market pays way more than hotel.

Okay.

So it just it doesn't pencil.

Those are my questions.

Thanks.

Okay, thank you, Vice President Emlin.

Um thank you for this presentation.

I um, as I've said for a long time fully support this project and supported, you know, decoupling the pier with the housing.

Um I think just like this, just as a side note, I'd like to have an update on the housing project great story in the chronicle, but I'd like to also understand the affordable components and how you're moving forward with that um obligation to the city and to the neighborhood to help keep it more economically diverse.

Um I also did want to just point out just because the public could be confused, or maybe you know, just I want to be clear that there are no cruise ships right now in the developers plan.

Um, you know, there you know, there is an opening up and shrinking of the pier and the pool and some other water activities, but not a cruise ship.

Um hopefully we right there there is a berth, actually.

But there's but is it for a cruise ship?

It can't accommodate a cruise ship.

It won't be a it won't be a high volume birth, but it's something that we want to do.

It was it was a key part of 3032 is that deep water birth.

I thought it was like for a ferry.

Okay, so my bad, I got that wrong.

I completely take that back public.

Yes, there could be a cruise ship.

I thought it was only like ferry service or or smaller ships.

I didn't realize it could actually be a cruise ship.

So thank you for also contributing to that as a secondary berth for us for smaller ships if that still happens.

I didn't I forgot about that, so thank you.

Um I thought it was just smaller vessels.

Um but that's great to have a network around the waterfront because hopefully we still do Pierre 80 someday.

So that's wonderful.

Um yeah, so I think we all are very happy for these updates, and um we um hope to hear back from you because this is exciting, and I can't wait to swim in that poll.

Um so on that note, next item, please, and apologies public for my forgetfulness.

Item 12A is an informational presentation on draft Port of San Francisco guidelines for the naming of port facilities through recognition and commemoration of individuals, places, and events.

For callers who wish to make public comments on this item, please style star three to raise your hand to comment.

Good afternoon, commissioners, President Gilman, Vice President Englum, David Billpre, Deputy Director of Planning and Environment.

Um the proposed guidelines for recognition and commemoration.

Not as exciting as maybe some of the prior uh items you've had on the agenda, but something that's important and necessarily uh necessary nonetheless.

Please bear with me on this dry presentation.

Uh so here's our agenda.

Uh we're gonna go over the types of recognition and commemoration, location, eligibility, and then the procedure for advancing uh any type of recognition or commemoration.

Uh the purpose of this is to inform those that are proposing recognition and commemoration of the ports process and to aid in making decisions for who or what should be recognized along the waterfront.

We have uh two types of recognition that we're covering here.

Uh either a monument or memorial or commemorative plaque or marker.

A monument or more memorial is a statue site furnishing or other structure erected to commemorate a famous or notable person or event.

And then we have commemorative plaques or markers that could be used within a space or along a facility.

Uh the types of recognition are either naming a discrete and identifiable location, such as a building or a specific room within a building, or park or an open space.

And a dedication is a general space or area such as an entryway, an aisle or thoroughfare that could involve a plaque or a display uh expressing a uh an honor.

So uh really a dedication towards a group or a person as opposed to naming a facility or location.

This talks a little bit about the location and the placement.

We think placement should be at or near the scene of an event or in a place closely or logically related to the event as possible.

So obviously events or people or activities that have a relationship to the waterfront is important.

Or public spaces that are oriented to ensure uh legibility, minimize pedestrian congestion, enhance visitors' enjoyment of the space.

So the location and naming or dedication, we could uh name or dedicate buildings or structures, uh, but we would not propose to change an existing dedication unless there are extraordinary circumstances of the port or city interest, and no other new facility uh can be so designated.

Uh any location can be ineligible on the grounds of regulatory prohibition and for naming and dedication criteria for eligibility must be fully met.

So eligibility for persons, we're saying to be an eligible person to recognize the person must be deceased or fully retired from public or private service for no fewer than two years, except under circumstances to be determined by the port commission.

Person also should have made a unique special or significant contribution to the port.

And then in the place, I'm not going to go through all of them, but the most important one is again what I shared earlier, is that it should be associated with an important historic or event activities within the lives of the person and be a notable or sustain the nurture community traditions and identity of the space or feature.

Persons honored for dedication shall meet the following criteria.

Again, be decip deceased or fully retired from public service or private employment for no fewer than two years.

Or the person made a unique or special or significant contribution to the port's mission and has not been previously honored in the meaningful way by the city.

Getting close.

Have a public uh informational hearing at the port commission.

Cost should be uh on the nominator for the dedication of memorial, although the port commission and the executive director have the ability to waive that.

We would take a commission action uh approving it.

Uh we have uh the ability to reverse an action we've taken, and then have the expression of the commemoration.

And then uh we want to make certain that oftentimes when you're doing dedications or uh commemorations, that oftentimes it's done in a time at a person's death that can be an emotional period of time.

So we think that there's a good uh reason to have a 90-day wait period uh before the final action is taken after it's brought in front of the port commission.

And that is it.

I'm available for any questions.

Thank you.

Thank you, David, so much for this presentation.

Um is there any public comment in the room on this item?

Is there any public comment on the phone?

We have no callers.

Okay, public comment is closed, so I'm gonna leave it up to my commissioners now that they're being in conversation about this.

Um, I know this is something that you care deeply about.

Hardly calling you first.

Yep.

I was gonna say to Alice, Alice, did you see the back of this?

Our good friend Corinne Woods is on the back of this.

She was like the sixth commissioner.

She really was.

Um I think this is good, but I'll I'll just say this.

I think, and this is just my homeless.

I think people should be honored while they're alive and they get their flowers.

I honestly believe that.

Um the branch here is named after Willie Brown, and willie and will he still live in.

And normally we honor people when they're dead, and their family comes, but that person never got to see that appreciation and how people felt.

And I think when people put the time in, they should uh they should be recognized.

And uh I don't see any anything anything wrong with that.

But I would like to see those that serve, especially those that served on the commission or those that work for the port staff, directors, people that have been here and given their heart and soul to this port, they they really believe and they have a passion.

I think that they should be uh I think that they should be honored and see something for their work, even in a small way.

I think it's it's about being humble, it's about being grateful.

Um I know uh Kim Brandon, she almost did 30 years here as a commissioner and one of the longest serving commissioners in the city and county of uh San Francisco, and Leroy King was another one, and I think people like that, they deserve.

I mean, Leroy's gone now, but Kirmley's still alive here, and she's with us.

She's in good health.

And uh she deserves it.

She she she gave us everything in her tank, and uh I and there's a lot of staff members that were here a long time.

And uh I can even just think about what happened during COVID.

There's a lot of people that have done a lot of long service that we never get to see the commissioners.

There's a lot of staff that never come to these meetings.

We never get to see them.

And we always get to see David, we see Mike, we see Andre.

But there's a lot of other heroes that work at that port that we never get to see.

And I think Mike's got a staff of 250, and they're working and they're grinding day in and day out.

And they retire and we give them a little plaque and stuff like that, and they ride off, but it would be nice to honor them or to have something special in this port for poor people, everybody that believes in this mission that we're all doing because you know it's a thankless job a lot of times.

But I just think and even community people, people like Alice, Coran.

Corrant came here more than people that were tennis in this port.

Her and Alice, they're always banging for people.

A lot of people only show up when they're self-serving for their own agenda.

Alice is always here speaking on things, you know, and like Coran was, and there's other people.

So, yeah, that's that's my thoughts.

Thank you.

Thank you.

Commissioner McNeely.

Uh sure, thank you, and thank you for the presentation.

I I know it it it uh it could be tedious, but it's very important work.

And um, and I think it's important for us to have a system of um uh of rules around and standards so that we're not making uh rules as we go along and creating an environment that where um it um it appears that um uh we're not being as consistent as we should.

I I think the rules seem uh very reasonable.

And my understanding from reading the the drafts is that it it does make an exception, I believe, for um not necessarily uh deceased but fully retired as well as an option, and then the port commission always has um the opportunity for exceptions uh under the consideration of the commission.

So it seems well thought out and um and transparent.

So I appreciate the work on it from staff.

Thank you.

Commissioner Lee, do you have anything you need to say?

Um I mean I'm all for it.

I think uh we should go back to where the who actually was at the waterfront in the 1800s.

I'm all about education and who actually when we started the port in the 1800s to where we are now and all the whether it's politicians, where it's advocates or neighborhood groups, um, we should recognize them.

Um I was even thinking, you know, like you know, past commissioners like uh Commissioner Adams was saying, but not in a sense that we have to name everybody, but I mean I think there's been bodies have have made improvements on this port that we sh are probably been forgotten.

Um but the big guys like Senator Burton and things like that, you know.

I mean, streets, I get it.

But the but the general public are tourists.

They don't know who these people are, and I think if we can educate, like, hey, you know, uh this person you know did this for the port, and even we have a promenade why how come we don't have a start, you know, a walk of fame, you know, with stars on the on the promenade of people, you know, where people tourists can actually see and who they are.

Uh those are the kind of monuments that I think will educate, not only just give tribute, but educate the people that come visit us.

Because that's what we are.

We're supposed to be a landmart historic port, and we should educate the people on on and give tribute to people who actually kept this port going.

So that's my only comment is to find spaces that are not so included, like you know, we could put our pictures in Pier 1, but who goes in Pier 1, right?

Just the staff, right?

If we could get somewhere where people walk by and see who and ask questions, you know, I think these location is going to be very, very uh key, in my opinion.

So maybe just to respond to that a little bit, and I I left out a little bit about next steps in my presentation.

Uh so I'll I'll add that and respond to what may have been a question there.

Um we do have quite an interpretive program up and down the waterfront that we're always updating where we try to recognize uh historical people that have made contributions.

Um you'll see them on some of the pylons right out in front, and they're not only historical people, but we try to keep them and match them with current people uh as well.

So in front of uh Pier 9, we have stories about historic by bar uh bar pilots and current bar pilots, and out front we have stories about uh the produce market and the and the fresh market that we have today.

And so that the next steps that we'll be bringing to you are coming back and approving this policy in the spring, and then uh there are some uh current thinking about a uh proposal for a naming of a plaza and fisherman's wharf.

So that recognizes some historical uh figures as well.

And even it's just small plaques, you know.

A wall, a wall of fame called, you know, just little plaques.

But to add to that, I think the interpretive point that David's making is is the history point.

And I think weaving the naming with some interpretive material like we're hoping to do in Fisherman's Wharf, I think is going to be very much in line with what you're talking about and could could give us a uh a sort of template to do this.

Even if we had a QR code, you know, next to their name and they can find out who this person is.

I mean, I think that's a great thing to teach the public what's going on.

That's great.

Um Thank you, David.

Um I uh you know, thank you for getting this uh conversation started.

I I would like to see us really um push really uh harder on this because I think uh this is this is uh this is a good start.

Uh I just wonder, like I think about you know, I I've seen presentations about how very significant um uh I I guess I have a lot of thoughts.

Like we're we're sitting in a in the in an environment that's very sponsorship rich, and I I I see this limited to like this idea about oh, if you nominate somebody you have to pay for the plaque.

Like that's okay, but I think we should think much bigger about this.

Like we uh I I think about um, you know, I I got a tour of Mission Rock and I saw how they're they have um this program of doing the uh commemorative bricks on the uh you know that helped you know it it's helping to pay for a real space.

And I think we're sitting in a deficit uh when we look at these big programs, like we see these like mind-numbing uh gaps have that have to be filled in funding things.

And I I would like to see some sort of tie between like I think this started out with a discussion about let's honor, honor people who have dedicated their lives and have made major contributions to our waterfront.

That's that's that's our that's a very clear mission.

I would like to see is there a way to tie that to some sort of sponsorship program that um you know we could somehow achieve both um filling some of our funding gaps and offering some some way for corporate sponsors or fill philanthropies to come in and say, hey, we really we see that this person made a lifelong commitment to um to the waterfront, and we would like to uh sponsor that for the next five years.

Um I think about um Salesforce Park, you know, when you look at the capital stack of how that park was paid for, they have a very real line item that says this uh a big gap was filled by Salesforce stepping up and saying we're going to name that park.

And then within that, there's all these educational programs up on that park that had to be paid for.

So I I guess I think this is a great start.

I would like to just ask, can we do more with it?

Because we have so many things we want to do.

And then also I would say maybe we don't just limit it to just um static places, but this could be um you know uh uh commemorating or or naming events also.

Every meeting we have, we're talking about these incredible entertainment events that are happening on the waterfront.

Couldn't that be uh a way to honor somebody as well, that somebody who made a really big commitment to uh you know pushing us to think creatively about how some of our peers could be used.

Like there could be a commemorative um concert series, like naming it after that.

So every time people come and come to a concert, they hear this person's name and it's it's memory.

It's not just about a plaque that maybe nobody people stop talking about it five years from now, you know, like but when they hear the name over and over again at the concerts.

So I just think I I get really excited about this idea, but I want to push us to do more with it because also I think about um think about we're gonna have to rebuild our whole seawall.

Like what think about all these opportunities that we're gonna have for the next a hundred years to uh commemorate commemorate people.

So thank you for getting us started.

Uh just hopefully my comments kind of stir some more thinking about this.

Thank you.

Um I think these are Dave, I think these are all great ideas, and I think we just started down this path, um, particularly, you know, around which you you put in these guidelines embracing people who are still living with us.

Um and also um I I think some of the ideas, you know, I just do want to say there is a model for you know for those pavers, the friends at Joe DiMaggio playground is something that me and my husband contributed to.

I get to look outside my window every day and see our little placard there.

Um, and so does everyone who rides the 8X.

So I mean I do think there's a model for that kind of thing.

Um and then I you know um, and I'm really interested in exploring if there is a market and if there is a there on the corporate side, but I just because I think what's great about this commission is we all have different perspectives.

I want to be a little careful on the corporatization and modernization of the waterfront.

I uh to me that just needs to have a lot of guardrails to do it well and to do it right.

Um so but I'm happy to have staff explore it because I do think it could be really interesting, and I also love the idea of sort of this living, breathing way of, you know, maybe a concert promoter wants to talk about Phil Lesher, you know, someone, you know, I'm trying to give you know someone from San Francisco every time they do a concert series to help commemorate them, or Bill Graham.

So I I do think it's really exciting.

So this is great work.

So thank you and the staff for for that.

Stephen.

And also too, um the James Herman Cruise Terminal is named after our second president.

Yeah.

And it they were originally I was on that committee, Gavin appointed me to that committee, and I was the only labor guy on there, and it was mostly all business people.

And uh they were thinking about having it the San Francisco Cruise Terminal, and it wounded up, you know, being a James Herman Cruise Terminal.

And David, you will remember that and how important that was and his work, you know, with uh the Lancey Street and him and Leroy King, just all the great people that made that, you know, that made that contribution.

And this waterfront has evolved from a full-fledged work and waterfront now to this this embarked arrow that's this tourism.

I mean, it's just changed and it's just transformed, and we're showcasing it, and we're living in our time, just as the old timers lived in in their time.

And I think that's what makes it so great.

And I think sometimes people say, How come we don't have this or we don't have that?

Well, we got five commissioners up here, everybody's got different backgrounds.

Ken from the business world, Steve's architect, Gail's in the nonprofit, Stephen Lee is a Renaissance man, businessman, Stephen Lee's every he's everything, you know.

And me, I come from labor and the humanitarian, so we're all together and all these great thoughts.

And uh I do agree that we do find something that we have a standard, we make it, but we could we could we could do some things because this is our waterfront, and I think I think it's this is a great really exciting time, and we may never get this chance again, so I think we strike on it.

David, this is a guy here, and I'm just gonna say it.

David Dupree is one of these guys that should have his likeness.

Because David Dupree is a guy that I have seen since I have been here and for years, day in and day out.

He contributes, he's one of those unsung heroes, and he doesn't work.

And I'm gonna publicly say that about David and Alice will tell you that.

He shows up, he doesn't want to be recognized, and he puts his heart and soul, takes time away from his family.

And he's one of these guys that I don't want him to pass away.

I want him to know that we appreciate him now.

And that's why I'm saying, and that's why I think it's so important.

So David, I'm just pointing you out right now on full blast.

Thank you.

Absolutely, thank thank you, David, and thank you to all the port staff for what they do.

Um and I just want to add one more note.

Willie made me think of this too.

I think there we should draw a distinction in these protocols and how we do this of interpretive signage and things like you shepherded at Crane Cove Park, which I have read them all when I've gone down there.

It's different than kind of I think then like a naming and an honoring, and I think science they get um conflated, and I think it would be great when you come back to really separate those two items for the commission and for us.

Yeah.

Um, because there's a difference between the two.

Um, and um believer in the interpretive program.

Um and so who knows, maybe one day it'll be the David Dupree Interpretive Program Center of the Port of San Francisco, just putting it out there.

So on that lovely note, Mike, did you want to say something?

No, I think this was a great discussion, a lot of good food for thought.

Um, you know, this was a good proposal to put out and start with, and we'll take that into account and bring it back to you.

And um, you know, it seems like there's a number of directions that have been brought up that I think I'm excited to explore and see what we can do.

So thank you very much.

Well, thank you, Acting Director.

So um, Jenica, next item, please.

Item 13 is new business.

Uh Commissioners, I've recorded the last item, uh several things on that one uh relating to uh namings and dedications.

I also heard the C Wallot 330 update as to the housing plan uh affordable housing plan in particular.

Do you have additional new business?

Commissioner.

Stephen, what remember at the last meeting?

Um you assess something about I know you were going to meet with Mike about this blue green way, but you wanted some people to come in here and talk and you you were talking about some things.

Can you say something about that?

Um you were mentioning that at the last meeting uh that uh somebody to come in and do an assessment how we bundle the bundling, the bundling.

Remember you you made mentioned all that, and you and Mike were going to talk about that.

Yeah.

Uh well I think there's uh just two two things.

The the bundling is was more of a uh program management approach to our deferred maintenance and uh peer maintenance and uh as opposed to the blue economy.

My understanding is that on the blue economy side, we have a staff team uh developing a strategy for that.

And then I'm not sure I mean Mike and I have talked about it, but I don't know if we have an action item, so it might be good to um state that as an action item around that.

Sure.

That's definitely new business looking at new approaches and public private partnerships for capital work and maintenance and stewarding our facilities.

And we have a couple different threads uh going, uh VP Engle and I about the different ways we could bring that forward, and so we'll I'll work with him to try to bring forward an information item on those.

Well, what Mike, what I want to give back, and I think he had mentioned some how does that because he kee he kept mentioning the tech world and having tech companies, and I I I thought I understand why wouldn't tech companies be interested in coming to your stuff like that.

And I wanted to know more about what you guys would wouldn't talk about with that, right?

Because I don't want the port to ever lose this autonomy.

You know, autonomy, is that what you said?

I don't want every port to lose its autonomy.

Yeah.

Or tech company to come in to think that they could run the port.

That's not their job to run the port.

I could see them partnered, but I think we have to remain autonomous and and have control over the port of San Francisco because it's under the the Burden Act.

100%.

No, I I think the the Blue Economy Incubator is intended to find early stage, not well capitalized companies and figure out how we can use the port's assets in terms of our land, our water access to help them grow their businesses.

Right.

And that will have benefits for the environment, for those companies, but also for the port's portfolio.

And so that's the work that's underway where we've actually retained a consultant to help us do a survey of other uh pro other programs at other ports, including this port of San Diego and the Port of LA, those two that were mentioned at last Friday's event here.

So we're excited to bring that forward to you.

I imagine that's in front of you in the next couple months to just start talking about what a program might look like for us.

Okay.

Thank you.

But we are not letting the tech companies take over the port, I guarantee you that.

Okay.

And that's exactly how San Diego does it.

So that I've learned in a you know too.

And we're open to that's what we want to do.

The survey is that's the one that has resonated with me the most, but I want to see what else is out there so we can do it all.

Yeah.

Commissioners, are there any other things?

Yeah, one more.

So I'm still curious to see as you're doing your cleanup on the sheds.

And and even uh Pier 90, 96 area.

I want to know the possibility of again of going back to temporary movie studio space.

You know, whether it's temporary, whether it's a rental for six months during a series.

I want to see what's available.

I mean, I really I mean, we're hearing all these cleanups and all these different I'm lost.

You know, can we get an informational thing on what open spaces we have possibly available to do big projects like uh you know it would be great to have another you know TV series in San Francisco again.

But even that, you know, um uh all the auto sh you know, there's a lot of filming before of cars, you know, like the car industry was doing their new cars, driving through the waterfront, whatever, and they need places to film.

So I'm just uh wondering if we could have a future informational uh what open spaces that are possible that's feasible, and I'm sure we could get cooperation with the film commission to see what we can do.

Because that was one of the comments I think when uh one of the actions they were filming something here, and they were saying we needed more temporary studio space in order to come back here rather than go to Oakland.

Yeah, or go here, but we have space.

Yeah, no, this is uh this is a recurring conversation that actually came to us a few times when I was real estate director.

And so we have a very close relationship with the film commission, which is now being consolidated to be one larger organization, but they actually handle our film permits already under an MOU.

Yeah.

Um and you know, the challenge with our facilities is, for example, if you want a sound stage, it's gotta be soundproof and it's gotta have good acoustics.

And our working waterfront sheds uh do not really have that.

So it's an investment.

But we could absolutely put together an information on the it might be some outside investment, you know, from the movie industry to invest in it.

Because if they're maybe do another series in San Francisco, you know, they might have money to invest in fixing it up.

Yeah, no, and the city just re-upped its uh movie uh you know film incentive program as well.

And so, you know, there may be reasons for for productions to come back here despite our you know overall costs.

We got the space, we got the parking, we could park their trucks.

You know, I know Treasure Island was taken a lot, but now that they're all remodeled, they're not doing it anymore.

So why not?

Fair enough.

We've recorded the new business and we're happy to bring that one back.

Okay.

Thank you, Mike.

I think just sorry, just to put a pin in that one a little bit, please before you come with your presentation, do some cross-referencing work with the staff on Treasure Island, um, just because it's a little more complex and I think the ROI was hard.

So I just think we should learn from those lessons as as an as um as you're um as another city department that also has dealt with this.

That's all.

I just wanted to uplift that.

Thank you for that.

You're welcome.

Okay.

We've recorded our new business.

Can I get a motion to adjourn?

So moved.

Second.

We have a motion and a second.

All in favor of adjournment.

Aye, we adjourn at 5.22 p.m.

Thank you, everyone.