Speak up so that SFGov can record us.

Oh.

Present.

Here.

Here.

Can I do that?

Can I have a motion?

I have a second.

We have a motion and a second.

All in favor?

Any opposed, the motion passes.

Next item, please.

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

I see no public comment in the room.

Is there public comment on the phone for executive session?

Okay, public comment is closed.

Can I have a motion to move into executive sessions?

Motion to go to the executive session.

We have a motion and a second.

All in favor?

We're now in executive session.

San Francisco government television.

Stoon San Francisco government television.

I don't know.

I don't know.

And self doubt TV.

San Francisco government television.

So we'll be talking about our voice.

If there's anyone in the room who wants to give public comment on something not on our agenda, please make your way to the dais.

You have three minutes.

And please tell us your name, sir.

My name is David Lewis.

Namely from one of the employees that works in one of the retail stores, as well as some of the uh passengers that have been in the back of my pedicap.

We have these new LED lights that are extremely bright on the embarkadero.

And I don't feel, and some other people don't feel that embodies the culture that we have here in San Francisco on the fisherman's war.

And uh the employee wanted me to bring it up that it's changing the behavior of the birds that are in the area, and it's very blinding for him to be working there all day on and it's the customers don't uh really see what the purpose is of having this up there.

And if we are going to have LED lights, uh maybe keep that in Las Vegas and not on Jefferson Street, but then if we do have that, maybe if we can have them turn it down a little bit, and instead of having a bunch of cartoon characters, maybe we can have something that embodies San Francisco back in the early times where we can have some nostalgia printed on there because people come to San Francisco and they want to see the fishermen and they want to see our culture and not some cartoon character.

And I just wanted to bring that to the body, let them know that uh this this looks um kind of silly having those LED lights out there.

I just wanted to bring it up and see what other people might be thinking about that.

Thank you.

Thank you so much for your public comment.

I'm gonna direct staff to follow up to understand what side of Jefferson Street it's on, note for the public, the land side is not port property, and so the leasing and behavior of those building orders are not in our jurisdiction, but if they're on the water side, we can look into that.

Thank you.

Is there any other public comment in the room?

Or items not listed on the agenda.

Do we have any public comment on the phone?

Four.

Okay, then public comment is closed.

Next item, please.

Keep leaning towards this thinking of the use.

Item nine A 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.

So uh good afternoon, commissioners.

Uh uh President Gilman, Vice President, and commissioners, uh, Ford Staff, court interns, uh, and members of the public.

Uh my name is Michael Martin.

I'm the acting executive director.

This is my report for June 9, 2026.

Um, as we begin June, uh, report is proud to join in two really important civics celebrations, um, uh recognizing both Pride Month as well as the celebrations around Juneteenth.

Uh starting with Pride, this year's San Francisco Pride theme reminds us of the connection between resistance and joy.

Um, honoring the courage, advocacy, and community care that have shaped the LGBTQ plus rights movement, while also celebrating the joy, creativity, and belonging that sustained.

At the port, this reflection aligns with our continued work to foster a workplace culture where employees feel respected, heard, valued, and able to contribute fully.

This is super important for us as a small organization to really meet people where they are and to be able to uplift things like as part of what we do as the port.

And so we're very proud to be part of those celebrations as June continues all the way up to the Pride March at the end of the month.

We're also proud to celebrate Juneteenth, which is one of our nation's most significant celebrations of freedom.

Juneteenth, as many hopefully everybody knows, celebrates June 19th, 1865, where news of the Emancipation Proclamation reached Texas and really signified the end of slavery in our country.

Ultimately, Juneteenth has become a new celebration, and it's really it's become a multi-weekend celebration here in San Francisco.

And we're really proud that we kicked it off last Sunday with Juneteenth on the waterfront, a pop-up makers market that port co-sponsored alongside the Ferry Building, Foodwise, the operator of the Ferry Building Farmers Market, and the Human Rights Commission.

It's been so exciting to see this event grow since 2021 when we first had it.

This is the first time it wasn't affiliated with the farmers' market itself.

And I have to say, coming down here, it was like the farmers market was here.

There was a great crowd.

The makers had demonstrations of the different uh food and cooking products as well as the maker products.

Um there was a great speech by someone who was a graduate of Foodwise's building equity program because Foodwise does this great thing where they don't just see these pop-ups as as a way to give visibility, although they are.

They want to see these entrepreneurs sort of grow into sort of temporary and then eventually permanent roles in the full farmer's market to get access to that bigger market.

And so to have someone who had walked that path and sort of showed that example to the makers that were there that day, it was a really powerful moment.

So, really want to thank uh all of our partners on that.

It was a great, great day to be out in San Francisco, a great weekend to be out in San Francisco, and highlighting the celebration of June Teeth.

The port will raise the pride and Juneteenth flags as symbols of our shared commitment to inclusion equity and belonging this month.

Well, each of these observances have its own distinct history, and so we're not mingling them.

It is important for us to highlight and remind ourselves of the importance of honoring diverse people, cultures, histories, and communities that strengthen the fabric of our great city of Waterfall.

Uh moving on, the Port's summer internship program begins.

A number of whom are here with us today, uh over my shoulder.

Um, we have uh 22 participants this year, um, who will be with the port until July 30th, learning from various teams about keeping the waterfront moving.

We oversee two summer internship programs focused on maritime operations and office port.

Uh, in July, eight interns will bring uh separate year-long maintenance labor gardener trade uh program, preparing for careers in the trades through on-the-job training and uh mentorship.

This is a great pairing to our trades career fair that I taught you about at our last uh meeting, uh, but it's something that we still really feel uh is super important about growing that the next generation of the Fort's workforce, but also helping to show our community what opportunities are out there even if their lives take them away from San Francisco.

Um, and so we're super proud of our summer internship program.

I want to thank you to all the participating staff, and particularly spearheaded by Tiffany Tatum who does excellent work with this.

The Port was proud to help deliver the first activation of the Fisherman's Work Entertainment Zone.

Our partners at the Fisherman's Wharf community benefits district put this on.

It's uh entitled Play on the Bay.

Um, so entertainment zones, as as uh folks may already know, are areas where you can have sort of close down the streets and have more public enjoyment of the street areas, but also uh be able to carry around adult beverages uh freely, but also just to enjoy the space in a different way.

Um, we were excited to welcome uh Mayor Lurie and Supervisor Danny Sauter down.

Both of them noted that this may have been the first family-friendly entertainment zone because we definitely saw parents with their adult beverages, but there was a ton of kid space.

Um my son went a little crazy on it every time.

Um we also had great performances, including uh the street dancer performances that we see a lot of times up there, but now giving them center stage.

And so it was a great event, and we learned a lot, hopefully, we can do this again in the future and learn more and have even more impactful activations up there going forward.

Okay, thank you for that.

Back to being tethered to the microphone.

I will do better.

Okay.

Moving to the southern waterfront from the northern part of our property to the southern, uh, we had uh port electric vehicle and photo emission truck outreach of this past month.

So we recently completed, completed a feasibility study, even decarbonization of tier 96.

And the study really helped us think about sort of conceptual site designs for different sizes and levels and different types of charging or refueling for zero emission technologies.

And it also laid out some of the challenges where this is something where we're going to have to sort of link arms with a bunch of different market actors to really realize the future we want.

We have a big trucking community out there, we have the fleets of our tenants.

We also have a large independent LDE trucking community, and they need to make their decisions about their equipment, and we need to find a way to bring the infrastructure that's needed so that we can all move forward into that zero emission world.

And so this feasibility study is really helpful to us in lifting up the information around that, and as we continue to try to cultivate those relationships.

So last week we shared the conceptual site designs with members of our truck driving community.

We also invited members of the California Air Quality Management District and CalSTART, who were there to connect truckers with information on EV truck purchase incentives.

And we're actively currently pursuing additional grants from the California Energy Commission to hopefully have a first step of 10 fast chargers for trucks out there.

It's not the big sort of charging layout that we see and the feasibility study, but we think this is one of those things where you have to sort of cultivate a nucleus and then grow from there.

So I really want to appreciate the work of our planning and environment teams as well as our maritime and real estate teams to working with these partners, and I'm looking forward to our next advances, hopefully, starting with uh news on the grant later this fall.

This month we're also pursuing outreach for specific resilience projects.

So, as you know, commissioners, um, our waterfront resilience program has developed a recommended plan for protecting the whole seven and a half miles of port waterfront from sea level rise and earthquakes.

And that is advancing through our process with the Army Corps, and we'll have more information for you and info item at our next meeting in July.

But as you think about moving this project forward, what's clear is it has to be a phase project.

You can't do seven and a half miles all at once.

And each design and each individual geography has to be thoughtfully pursued based on the conditions and the focus on that area.

And so, what we're trying to do with the meetings this month is really dial in on two really key geographies and cultivate more information from our community stakeholders and partners so we can learn more and be more informed as we advanced designs.

So the first of these events was last Tuesday, it was actually out here in the Grand Hall just outside of this building's room.

It was an open house event focused on the South Beach area.

And it was a really great format because it allowed people to sort of give their input on a bunch of different areas, but it also allowed our team as well as our city agency partners like MTA and our consultant partners to share information and help inform.

And so it was really a two-way street of communication.

We had 70 attendees, which was a great number, and it was really a good event.

What we're gonna do is take all that information, bring it back, help refine the designs, and then keep coming back to the community as those alternatives are put together, so we can make sure we're lifting up what people want to see in that project moving forward.

A week from today, we'll move on to our next of these meetings.

Same format in the Grand Hall.

This one will be for the downtown postal results project, which is looking at sort of doing the full line of defense for the Wincombe Park area, but also looking at interim flood uh protection improvements in the interim before we get to the big project of elevator in this building and the shoreline north of here.

So we're again going to do the open house format, bring in more information and help us inform more of our design work in the room forward.

So I want to thank the really great work of the team, the resilience team.

Um I hope is these will really springboard us to even better design discussions in the course so we really start to sort of move ahead on the first steps towards making this report plan that we have.

The World Cup on the waterfront is coming, starting Thursday, the tournament starts.

I have to say I did not know what to expect from the World Cup as it came.

I know it's the biggest sporting event in the world, but I didn't know what it would mean to San Francisco if it was a port.

And I have to say that the experience of the Super Bowl has been instructive is that people want to have activations on the court relating to these big events.

And so I'm excited to say that the port has four of the port has three, and then one of our immediate neighbors is the fourth of the largest activation sort of group game watch areas that are going to be activated throughout the tournament.

Those include Pier 39, the ferry building.

And the midway.

And then we'll also have a couple other things.

So we'll have two World Cup themed fan parades, one starting at Princoe Park on Friday for the first USA game, sort of rallying and then parading to Thrive City to watch the game.

Then a week from Thursday for the Mexico versus Korea match, there'll be a similar rally and march for Pier 48 to arrive.

And then starting this Thursday and running through the weekend at the ferry terminal plaza just south of this building, we'll have what we're calling the World Cup Art Market.

So they're going to transform the plaza into a vibrant family-friendly festival space featuring art, culture, wellness activities, community engagement, and live World Cup match viewing.

If you came to any of our big Art League Portside events, it's going to be a similar level of energy and dynamism with some soccer mixed in.

So I'm super excited to check that out.

And we really want to thank our partners, our arts.co.lab and coven for bringing that forward.

And I want to sort of really give a big thanks to our real estate security and special events teams for getting all of these permitted.

We have a couple latecomers circling, so we may have even more to announce later, but ultimately we're super excited to see all of this activity on the waterfront.

It just lifts up what's going to be a great summer for us.

But we're really proud of.

So the Roundhouse Complex is an office, a small four-story office complex that we directly manage.

It's up on the embarcadero where Longbard and Sansome intersect.

This facility was greatly challenged by water intrusion issues in its roof and windows as we entered the pandemic.

To the point where it was basically losing tenants, and we were worried about the structural sadness of the facility.

We made the decision to use some of our American Rescue Plan Act dollars to put six million dollars into fixing the building up as a filling.

We did not want to lose the asset.

And that was a bit of a risk reward proposition because at the time, you know, work from home was happening, pandemic was happening.

We weren't sure what that office market was going to look like.

But that wager we made really paid off as we've seen Jackson Square and our tenants, Jamestown managing the waterfront plaza development.

There's a lot of office leasing up there.

And we've landed our first uh large lease since the completion of the project, Ace and Labs, Aerospace and Space Tech Sparta, has taken a good part of the fourth floor and is interested in expansion from there.

So I just am super excited about this.

Obviously, there's more to lease in the building, but it's really showing the model that we wanted to see about the return on this investment.

And I would just want to definitely thank our project management office for managing this very complicated project, our engineering division for their support and the real estate division for their great job marketing the lease and getting a new tenant in there.

So super exciting times up in the Northern Waterfront BC.

Before I see a special guest that arrived, it looks like he's not.

So I'm going to conclude my report, and if you arrived, we'll move into that part.

But thank you, Commissioners.

I'm happy to answer any questions.

Thank you, Mike.

So before we um have the commissioners um comment on the executive director's report, is there anyone in the room who would like to make public comment on the items discussed in the executive director's report?

Anyone in the room?

Okay.

Is there anyone on the phone?

Okay, we have no one in the room and no one on the phone.

So public comment on the executive director's report is closed.

Commissioner Lee.

Do you try to speak into your mic so the control room can hear it?

It's not working in the room, but they need it for the recording.

Thank you.

In other words, we're recorded anyway.

Yes.

Mike, great report as usual.

June 1st is when we have a chance to where all our small businesses start making money with our tourists or whatever tourists we can get, actually.

Um the entertainment zone has always been a great thing, especially when uh the port is so diverse for all ages to enjoy.

Um the fisherman wharf CBD is doing great with our funding to add more activities, not just for the adults but for the kids.

So I'm totally you know grateful for that.

I want to welcome our interns.

Um, talking to them briefly, you know, they're from so many different uh backgrounds and interests, which is great.

Um I wish they were a little bit more small business friendly, but I think uh as the spirit and and for me in college, I never followed my college goal.

I actually went into small business, and you know, as corporate gets a little tiring, some people end up doing small business.

So I welcome you to uh experience what we have here at the port and to give the next generation a chance to um you know learn what we do and what the other industry does.

Pier 96, you know, that's kind of the last frontier for us.

I mean, we've developed almost every where I mean we're going to, especially after the uh shipyard.

It's probably our last industry in this uh port, and Pier 96 uh should be kind of like there as not just a test of EV and stuff, but to support our workers, our labor, you know, our construction parking spaces.

Um I mean, I think Pier 80, even though we're going to concerts now for extra funding, um, we still do some shipping.

So, in spirit of keeping fisherman wharf as a fishing fishing um industry, like we how we protect our fishermen, we should protect our labor.

I'm sure uh Commissioner Adams supports me on that, but uh Pier 96 might be our last frontier for uh protecting our workers on on the on the waterfront, and uh what impresses me is that and we just had meetings earlier, we still have a lot of infrastructure that needs especially the uh global warming and the seawall, but even just little things to keep our economy going.

I'm very impressed how the port staff is able to find or divert funds to help our port keep moving for San Francisco.

So I want to thank uh Mike uh Director Martin and the staff for being so creative.

And even though we're kind of an enterprise industry, we have 500 tenants on the port, not all of them are making it.

A lot of it is just uh percentage-based rent.

So we're they're still struggling, but um the port staff is able to find funds to fix things up, and I really appreciate that.

So that ends my comments.

Thank you, Commissioner Lee.

Commissioner Neely.

Uh yes, thank you, and uh, thank you for the report, Acting Director Martin.

Um, a couple of things.

Um the resilience projects uh and the outreach.

I I'm really happy to see that, and it'll be it looks as if you had a really nice turnout of folks.

They are curious.

Are we seeing more tenants or more uh just general residents uh attendees or might it change depending on your focus for that particular evening?

I would say it was a mix, I would say it would be more on uh area residents.

Or tenants at that particular meeting.

Um as part of our preparation for these meetings, we are reaching out to our tenants directly in these areas just so they know we're not sort of funneling them to a public conversation.

There are partners and they can talk directly to us too.

So some of them may not have felt the need to go that night since they had the other opportunity, but really we're trying to cast that net for both.

Um, happy to see that both are attending.

That's great, and I'm I'm I'm happy to hear that that we're casting a wide net there because I do think that the general population, our residents uh in the city need to understand and appreciate what's happening and what the port and the initiative of the port is as well with respect to uh the waterfront.

So thank you for that.

Um the uh your your port EV truck outreach uh uh the phenomenon.

I mean that's the first time hearing of this.

Um I recall back in uh my uh previous uh job, the the real challenge uh for electrifying fleets, corporate fleets, and I know that a lot of work has been done there.

My question here is whether or not um the infrastructure that's going to be needed to support such an endeavor.

I assume that there's substantial both uh state and federal funding that might help support that kind of uh uh infrastructure build out.

There is in in different flavors and different different sort of tranches of being put out there.

Like the CEC grant we pursued is a smaller uh amount.

Um, you know, the the money that we use for the feasibility study was California surface transportation agency grant money.

Um, you know, the federal government uh and the administration, you know, are definitely uh have priorities elsewhere right now.

Uh but they're in the past they've been big funders of it.

So that's ultimately this is one where we have to really cultivate and see whatever opportunities come.

How do we build something on top of whatever whatever partnerships we can find?

Yeah, okay.

And I really and lastly, I I really appreciate the uh the activation on the waterfront for the World Cup.

I think it it shows that you know the the port's paying attention uh to what's going on culturally uh in the in the area.

I think it's really important for us to have our finger on the pulse of the community and to help uh significant aspects when there are significant celebrations like that uh that the port is a natural uh venue for those kinds of celebrations, the same with Pride and with um with Juneteenth, so thank you for that.

And I'll share my uh welcome to the interns and uh I wish you a uh very informative and uh thoughtful uh summer as you learn much about all the things that go into uh having a world-class port as we do here in San Francisco.

So welcome.

Thank you.

Commissioner Adams, Act of Director Martin, another meticulous uh report.

Clearly, the vibe of San Francisco is alive.

Uh thank you for hitting on Pride Month, which is important, and uh also Juneteenth.

Special welcome to our young people, our interims.

Glad that uh you're here.

Uh the port outreach, the resilience, um talking about the World Cup.

Um Mike, so much is you know, so much is going on right now on the port.

It's so much to to be really, really excited about right now.

And it's clearly, you know, it's a call to conscience about what's happening, right?

And I think years ago, you know, things in San Francisco look kind of dim and kind of miss.

But uh I believe not only we turned a corner, we're we're we're moving in a new direction.

And it and it's good to feel that and to and to see that and the vibrance, right?

And I remember when we were just on Zoom or just having now people starting to come back to the Port Commission meetings.

Uh this gentleman right here that spoke first.

Uh I was limping down the embarcadero yesterday, uh, trying to get down to the water bar to have dinner, and uh I got a ride with him.

And and we and we and we were talking, and I told him I remember the time when me you picked up me and Elaine Forbes, and we were chatting along the way, and I go, I didn't see you in a while.

I said, Why don't you come to the port commission?

Just don't when it's your issue.

Come, he said, Woolley, I'll be there.

So he came today.

Thank you for coming.

And that's what I like about San Francisco, the waterfront.

It's a community.

It really is.

It's something about this community.

Even when I walk downstairs into the ferry building right now, I feel a different vibe when I walk around.

It's like we were kind of in a daze for a while, but I feel like we're alive again.

I I really I I feel good about that, right?

And then, like you said, the World Cup, which is the largest sporting event in the world.

I mean, I mean, you can't even get your head around.

I mean, it's up and it's everywhere, right?

And for us to be a part of it, and I just wanted to thank you for you know laying everything out and that report.

And I wanted to say, Acting Director Martin, that you know, it's really nice that your mannerisms, because we live in a world today where women that are uh that cover the news are threatened talk to, just disrespect it in our society, and that's not the principles and morals that we grew up with.

He wouldn't do that to a man, and it's good that the port, we represent the values of all people.

We don't care the man, woman, uh LGBT, we don't care what color you're right, we treat people with dignity and respect.

And it's nice to say that the port, we are holding firm to our values, and I like to know that we still continue to be a high valued place to come, and people are treated with dignity and respect, and it's not about titles, because you don't need to have a title to have honor and to be treated.

So I really appreciate your report, how you laid it out.

And no matter what's happening out the world, I hope the port continues to be that beacon of light.

I don't care what everybody else does that we continue to do the right thing and we continue to grasp for the highest cling and gold that we that we can do because we have a responsibility, and and I think it goes with our guiding principles of who we are and what we stand for.

Thank you.

Thank you, Commissioner.

So before myself and VP Emlin make our comments, we're gonna pause this comment section for a moment because we just had um former um our former maritime director Andre Coleman just arrived on scene.

He he's catching his breath.

I'll give you a minute, Andre.

But while I do that, we're gonna allow commission um acting director Martin to come back to the dais, and we're gonna honor um this great individual who contributed so much to the port.

Then commissioners will comment again on that, and when we have our opportunity, we will comment on both as the officers of the commission.

That sounds great.

I'd be really good.

Um allowing space for this.

Um, I I'm really glad to be able to welcome my doctor get back.

Uh, former direct deputy director of maritime.

Uh, deputy director.

Uh Andre was a great colleague on senior staff, but what he did with the maritime, we really always hold up as an example of leadership.

Um they're a small team, they had to work through a lot of things in the pandemic.

Um, and he got them not only to work together and be the can-do maritime team we've always had, but to also be really opportunistic in finding ways to build our business coming out of the campaign.

Um, and I think it's all leadership stuff, his understanding of the maritime uh sort of business world coming from the private sector.

Um part of why we lost him to the private sector wasn't understanding that, but ultimately that really benefited the work for over seven years.

Um Andre had a hand in some of our biggest maritime successes, the biggest one being you know, having to manage the challenges going into the pandemic with crews and how uh and then we kind of started with the cruise vessel coming to our coming to our uh year 27 and San Francisco really getting into lockdown shortly thereafter, and we wondered his cruise everything.

And then three years later, we had our record high number of passengers, and so to have the strategic leadership and the relationship building to get us from there to there, I will always respect and appreciate that.

Um we also there's a couple items on the agenda today that really uh bear Andre's fingerprints, pure 80, the Terminal management agreement, bringing the Portola festival there to bring more revenues to that site, uh and seeing how that strengthens that site for maritime because it doesn't become somewhere where other things happen, or infrastructure gets gets disused and dilapidated.

We saw that by lifting up the value of that site, it can really help maritime.

And I think it's showing in the way that we carved out in this new uh arrangement space to do cruise uh opportunities.

We're looking at ways to bring power to the site.

So really, you know, I think his leadership there, and then with our maritime rising tides program for the interns, really working with some challenging situations with partners who are key service providers for that, but getting through that into the other side with Tiffany of working with him.

So those were probably the three headlines for me.

So with that, I'd like to invite Andre up here now that he's caught his breath to uh share a few words.

Um, really glad you come back and join us and uh like I said we're very thankful for the contributions.

Before you do that, I do I do suspect there might be public comment in the room.

Sure.

That's what we should do that first.

I think we should do that first.

All right.

So my understanding is there might be some staff members or members of the public who want to, as I just learned I learned this word recently, so I'll say it.

So you are experiencing right now cringe, which is when you are doing something that embarrasses yourself.

So we're gonna do this now.

Good afternoon.

Commissioner, welcome back, Andre.

Um, just a couple words here.

Fair winds and following seas to our valued shipmate Andre Coleman.

Today we celebrate Andre's seven-year voyage with the Port of San Francisco.

I wish you success as you chart a new course.

Your dedication to the crew, your steady hand on the helm, and your dedication to the and your commitment to excellence have helped keep our boutique for thriving and our community connected.

Like every great mariner, you leave behind a weight that tells the story of your journey.

One marked by hard work, friendship, and countless contributions that will not soon be forgotten, including bringing Portola to Pure 80, standing up retail crab sales at J9, and ensuring South Beach Harbor remains the premier recreational marina on the bay, launching the maritime internship program, introducing cruise operations at Pure 80 and achieving some of the highest numbers in our annual cruise calls and passenger volumes in recent years.

All of that with the global pandemic thrown into the mix.

As you set sail toward new horizons, a favorable favorable tides carrying forward, unexpected opportunities appear on the horizon, and every port of call bring new adventures and rewards.

Thank you for capturing the North Small, the mighty crew, Andre.

You give a very large slip and fill.

Your impact will remain anchored in the memories of those who had the privilege to work alongside you.

You are now and always will be a friend of the port.

Fair winds and following seas and safe passage of the journey.

Thank you.

Well said, folks, just come up to the dais.

Hard to follow that poet.

But I just simply wanted to say it's been uh I've been at the port for about two and a half years, and so uh rather short time with Andre, but um what a class act, just top-notch.

Um, really, as I've settled his model on real estate side, Andre is someone I've seen as kind of a model of what we're bringing in the capacity.

Um, so really appreciated him and missing, and um wish him the best of luck.

Good luck, I'm gonna see you.

Congratulations, Andrew.

Um, back in some resilience program.

Andre, I you just have been a great colleague at the Cafe level, you're always like, very more than your college, make your own leading keel in discussion.

Um, your great leadership with us, and we're often talking about something that's going to happen in 10 years, uh, 30 years out.

We're focused on the maritime operation.

Okay.

Uh but you always showed up and participated in the discussions.

Thank you for that.

Um, I think you've been really uh, you know, merit, but you know, it's like, we uh we've got a hard court to market something.

So, because of our location and our facilities, and for many years we were just obsessed with 3032.

So you helped us with the purity, and I think that that took a lot of courage.

Um starting off of uh fish tails, and report and that helped us think about the benefit that we can deliver through the working on that.

Um, so really appreciate the way that you get a colleague.

Um, very lucky to have me.

Um wishing you guys can include the poll.

Just getting started.

I think we built something very special with the maritime internship of high school students.

Uh, you really need and brought your team along to support every idea that I had, and I really do like to push the court as much as possible as it relates to our engagement with young people, but I think that what we built can grow into something that will not only impact the port but the region, and I'm so excited um to have worked alongside of you, and I just really appreciate the way you stepped in and got into the details.

Sometimes when the work is not our core, we think of it as extra, and we don't follow it along as closely, but I really appreciate your support in the way that your team came alongside of me to carry this along and I'm excited for this cohort and all of the future ones to come and everything that's going to come from this.

I believe that the port will have a huge hand in training the next workforce in the maritime industry.

Um that will be quite a legacy that you can be proud of.

Thank you.

Good afternoon, Commissioners.

David Beaupre, Deputy Director of Planning Environment.

Uh Andre, I just wanted to thank you for your contributions to the port and the waterfront.

I enjoyed our time working together, and there are four things that jumped to my mind of uh when I think about Andre.

Three of which I can mention, one of which I might be a little triggering for him.

He knows what it is.

One is your openness and creativity to expanding the maritime uh line of businesses.

Two your strong support, your staff and taking the time to have fun with them through social events, three.

Andre is I think the best trust uh port staff members are far away.

Uh and with that, best of luck, Andre, best of luck if you're uh next boy.

I hadn't planned on paying anything, but uh I guess we do want to come up and really just give you your flowers.

Um the inspiration, uh, leadership, uh, care that you show for the team, and giving us all opportunities.

That's what sticks out in my mind, and just watching you uh command alone, because you know, sometimes, especially as you're coming up in management or you're looking towards management, you're looking for a way for a vision of how you should conduct this.

And so when you came along, um you'd be in way to have a south and just time.

And I was wondering how would I navigate um so uh you um worked and work together uh we navigate a lot of things down at South East, and then you gave me the opportunity to come down if you want, and then not only that, you also push me to be better.

So uh I just want to make sure that I know what I don't say it before what I want to say to you.

I appreciate you, appreciate the opportunity, and just thank you for being a great thing.

Okay.

Any other public comment in the room about this amazing recognition?

Okay, Jenica, do we have anyone on the phone?

We have no colors.

Okay.

So before you come up, now you get to hear the gratitude of the commission.

So Commissioner McNeely.

Sure, as the as the as the newbie, uh Andre, we didn't have uh a lot of time to work together, but it was very clear to me.

Um not only your your your intellect and skills with respect to uh your job function, but your your patience and your understanding and your um your stead steadfastness.

Uh the maritime line of business is really one of the core businesses of the port.

Um as it goes, so so does the port.

The port is having uh very successful rod in part no less to the contributions, the many contributions that you've made uh during your term as as the leader of that line of business.

Um it is uh phenomenal the work that's been done the outside of the box thinking that I saw from you you and your team, um, and that's from leadership, and that's very important, and I appreciate the work that you've done, uh the the the opportunity to look behind you and pull up the next generation of maritime experts.

Uh it's appreciated you have a significant legacy here at the port that we will all remember.

Thank you.

Commissioner Lee.

Well, Andre, um, four years ago when I came, uh I was always wanted to be on the port.

I was really impressed on the cruise ships, and I really didn't know the difference between you know the maritime division and the real estate division, but you know, learning from you and learning from Dominic and and knowing the difference.

Um I really appreciate you like accepting me as uh, you know, it's kind of some somebody outside the box that I think normally uh this body has been uh done differently.

Um, you know, when I wanted to meet with the fishermen, you guys were right there, set up the meeting with me.

Uh, because I was all about and and now you know I'm I hear that you're all behind all of this.

You know, whether it was getting an ice machine for the fishermen or what's it the uh J9 or selling more product off the dock, and then when we started doing concerts on the pier, oh my god, that's like that's my uh entertainment forte, you know, it's like crazy.

But but as we you figure that uh the port has different ways of making money, and as we go through these evolutions, um, you were there and and I really admire that because somebody on staff needs to do that, especially to keep the port clean.

And when I I went to the first internship uh when you had the open house on the maintenance yard, I was impressed on wow, we have an auto shop, we have a wood shop, we have everything in-house, which I really didn't even know, and and I think that due to to your leadership.

So I just want to thank you.

And and as usual, all the good people are poached from the from the port, and that's why you're not here because you're the best.

And so somebody poached you.

And that's just that just goes to show you what the training and to the insurance, you know.

Listen, you know, what you can learn from people that work on the port and where your career can go to, and I just say good luck to you, and I'm gonna I'm gonna miss your uh advice and cooperation.

Thank you, Commissioner Adams.

Andre.

Boy, you and I have had a history, and I don't think a lot of people would know, but um, nobody on this commission gave Andre more hell to me.

I gave Andre Hill all the time.

But what you don't know is about me is that when Andre was interested in coming to work here, I went to Bath for him, and I told Director Forbes that he'd be a great fit.

Myself at the time being with the IOW and Andre being with the Pacific Maritime Association, the unions and the ship, we go back a hundred years.

We're like family, we argue, we fight back and forth.

And as I say, you don't know a person until you argue with them.

You got to argue with them, right?

I've watched Andre's integrity.

He's very educated, he's refined, he's a gentleman.

And Andre has a history and a way about himself.

And I said, Andre, you know, a lot of people in the city, these young kids, they don't come from money.

Not everybody can afford a hundred thousand dollars a year.

Dominic knows the story.

They can go to Cal Maritime.

So he said, Well, Willie, what do I do?

I said, why do you why don't you go up to Tonk Point in Nestoria, Oregon?

It's the job core facility up there that was created by Lyndon B.

Johnson in the 1960s.

And young kids that don't have money can go there.

They can get their certs, they can learn everything about Maritime, and they will be hired by a union.

So Andre and Tiffany, they went up there.

And Andre said, Willie, thank you.

I didn't know that place existed.

But Andre had an open enough mind and he understood.

Everybody's parents can't afford a hundred thousand dollars a year to send their kids to Cal Maritime.

And Andre got that.

And Andre and I talked when he decided he was going to move and go move on in his career to go get his masters.

And he told me about the respect that he had for Mike Martin.

And it was one of the hardest decisions he ever had to make.

We all had to make hard decisions sometime.

And I understood that.

And I encourage him.

I go, follow your heart.

And I appreciated that phone call.

Thank you.

I wish you the best, young man, in your success.

You have a lot to offer.

He said, Willie, I'm not going back into labor relations.

He goes, I'm going back.

He says I'm going into government affairs.

But I think Andre will bring something back in that bond between the IOW and the PMA Shipping Company.

Because he, in a lot of ways, he reminds me of Barack Obama.

He has that ease about him.

He's articulate.

He's intelligent.

And you know what?

He doesn't just fire like I do.

Andre is very thoughtful about what he's going to say, how he carries himself.

And I think more important about Andre is that he treats everybody with the respect that he wants to be treated with, and he's a thinking man.

And he will not answer you right away.

He's always thinking on his feet about what he wants to say and how he's going to say it.

Because he's he looks and he's a visionary.

So Andre, I wish you the best.

I hate that we lost you.

I know Mike hated that we lost you too.

But when you told me what was up, I know that you're going to do big things in the world.

And thank you for the years of service at the port.

And you inspire Dominic and others.

They got the ball now.

They'll run with it and we'll be fine.

But you left quite a bit of mark on this port.

It wasn't amount of time you were here, but that the years that you were here, you raised the bar and you made us all think, and you thought your way through situations.

And like I say, appreciate you.

Please go get that master's.

If you ever come back one day, we'd be glad to have you.

Thank you.

Vice President Emlam.

Okay.

Andre, good to see you.

Thank you for coming back.

And um just say, you know, I am really impressed.

It's always a great measure to hear how your uh peers and your team talk about um the impact you had on the team and and also just hearing I I like uh Dominic's um description of all the things that you um have have done for the port, so thank you for that.

And I'll just say, you know, I think uh Pacific Maritime Association is lucky to have you, and we're lucky to have you there because it's an important organization that can uh help us uh connect with other ports, and so um yeah, best of luck.

Thank you.

Um Andre, I just want to thank you so much for introducing me and really helping me understand maritime.

The maritime uses for the port is part of the public trust, and as a lot of people know, it's a little joke to get through the board of supervisors.

I had to memorize the Burton Act, and so how it talks about maritime and our uses beyond fishing, um, from shipbuilding to cruise to South Beach Harbor to, I know we don't manage it, but I still count it as ours.

The only place that have live aboards in San Francisco at Pure 39.

Um, all of that um is the ecosystem in Maritime, which this seven and a half miles of waterfront um supports and always should.

Um we can boom in office, we can boom in commercial, um, but the heart of this waterfront has always been maritime, and I just really want to thank you for being the steward of that, um, for taking me out and letting me look at it water side, um, for me learning not to wear high heels when you walk up the ramp to Patia.

Which I did.

Um, and just in general, the inspiration for your teams.

Um, from the gentleman who spoke spoke earlier um to Dominic, you have built a really strong team around Maritime, and a team that is diverse, and a team also um that um has a has a wonderful gender mix.

Uh, maritime has traditionally been a male-dominated field, and I know you've worked really hard to diversify it.

I really want to say your legacy around the internship program will stand a test of time.

There will be future leaders who go into maritime because of the program that you and Tiffany started here today.

We have a group of interns here today with us, and I do want to say maritime, whether it's um your introductories to the military service, which for a lot of people it is, the Coast Guard and the Navy, or it's an introduction like this.

It is a fascinating industry, which I've learned so much about.

It has such amazing opportunities to see the world, to travel, whether you're in cargo, whether you're in crews, um, good union jobs, and we really need the next generation of young people to embrace maritime, a place where it is a growth sector.

And so I just really want to thank you for your legacy around that as well.

So, with that said, we're going to invite you to the dais before we all take a group photo for you to make comments to the port of San Francisco.

All right, um, please use the mic.

It's for recording purposes.

And for people watching us, all the people watching us online right now.

My apologies for the delay.

We do want to thank uh rigorous training that for runners putting through the Samsung and marketing, maybe now we're pretty much keeping me in shape.

Um, this is uh DP to receive this recognition seven years ago when we started in the port.

And then director for us working the opportunity to lead the maritime division portfolio, and I must say it was uh when I stepped into the role of realize that um I was taking on a challenge, challenge, uh, but also one that uh was uh spent in the legacy on the past and conference that are used to do as far as how to move forward and early on recognize uh that that legacy is very important to the water, to San Francisco's rich history, and the Ellen Chunks engaged in your only uh the Tom Ashers, and just uh taking some of their wisdom early on, receiving some of their some of their support for all you want, uh kind of let me know about the world that I was 78.

Um, having the support from my predecessors, Peter Haley, Mike Durham, uh Brandon, all of those individuals who make the transition, despite the uh the challenges that we experienced early on throughout the end.

Additionally, the uh commission, as well, uh past and present from presentate branding and all of the uh commissioners that serve in the current your support, your leadership very interesting and successive organization that has built any things uh that's ongoing.

Um I think uh Commissioner Adams on point uh I've known Commissioner Adams since my prior to arriving at the court.

Uh and he's right, PMA and ILWU is fan leaders' argument, but uh we have the best interest on moving the uh the industry forward.

I think uh along the way, Commissioner Adams supported me and uh my vision for advancing of the maritime mission for the court uh and guy behind me as did the rest of uh the commission.

Um additionally, uh my my uh my peers, my colleagues, my fellow uh deputies, uh again both past and current.

Um none of all that was mentioned here today that uh was achieved was without their collaboration, their input, their guidance, uh, the individuals who receive my arrival to the port and kept me uh out of making the uh the wrong terms so to that, very appreciative.

Uh appreciative for your guidance, your collaboration, and then uh to just the staff of the other divisions.

We talk about standing up your aid for groups, that doesn't happen without uh the engineering department that was able to do it with the maybe our department or curbs, etc.

So uh appreciate uh the other divisions as well that all that we can accomplish to include that J9 project.

That was a bit eating out uh idea and so to finally see that come to light and see the success it's having, and we're allowing for the public uh to take down the bar, and support the local fishing exchange.

Um the rising tide program, Tiffany and I had that discussion over lunch in 2019 and to see where the ProCon program has to advance to where it is today.

Very appreciative to Tiffany for uh picking up the fall and moving the uh the program forward as uh Commissioner Adams mentioned and made that road trip to Portland and to Seattle, took away some uh some key components of programs in that region and uh have incorporated into this program.

So it goes to Tiffany and the maritime team for supporting that program as well as the board staff as well.

Um acting director Martin.

Um we started off as neighbors, the real estate department, which is uh director then, and uh, to uh his current role.

Um I can't thank you enough for just being a very, very strategic thought partner.

I've always said that my most challenging meeting of the week was the Friday as well.

And it wasn't out of uh you know, Mike being aggressive to my ideas or not, my ideas now.

I just do have to uh be prepared and have a very strategic thought-out approach to the issues that we're facing, how they didn't uh working with him and so listen to some of his feedback on how to report was very assured of my role and my successor at the course.

So very thankful.

Um city attorney as well, uh, thank you to Michelle and your team.

Um, many folks uh in your department uh that uh supported the mission issuing the groups back up and running, getting our agreements in place, um, also some of the different departments outside of the board as well.

So thank you to them.

And uh our partners, four partners, uh tenants, uh, public, and just uh the champions of maritime, whether again it's the commercial fishing, recreational, boating, cargo, crews, harbor services, everyone has uh uh leaned in into to make this this go.

So the maritime team, small but mighty, that would be much above our weight.

I know that's that's said often, but we really do you know I'm happy uh proud of uh the team that I was able to order on our side.

Uh I think the uh the maritime division is a big hands.

Um I know the there's a lot of challenges ahead, but you know, a talented group of individuals who are uh ready to move on forward and continue um to this uh rich maritime legacy and to create new opportunities as well within the other portfolio.

So again, with that uh big uh thank you for the invite back.

Uh this is a pretty good city that you're part of it.

So I appreciate you all.

Um, I'm still in the industry in San Francisco, so I'll always have the uh best interest of the port in mind and uh, time to the topic.

Thank you.

You should know this from your long history that Commissioner Adams always gets the last word.

No, Director Morton, can we I want to get this right this time?

I would ask that the comments from the public, from the commission and everyone be lifted from the transcript and sent to Andre for posterity to share with him and his family what was said about him.

He will have comments and a paper trail to share for generations to come and your grandkids, your final finale here, and it'll be written down.

I think I got it right this time.

Acting director Martin, thank you, Michelle.

I got it right to stop.

Yeah, thank you.

Thank you.

Now we'll take a photograph.

Thanks, Jenny.

I got it right now.

Thanks.

Now, Vice President Emlem, do you have any comments on the director's report?

Uh let me see, but let me remember my thoughts.

Oh, um, okay.

Um, uh acting director Martin, thank you very much for your comments, uh great presentation.

Um, you know, happy pride, everybody.

Thank you for acknowledging that.

And um uh I'll say that on uh Friday I had the pleasure of being at the um mayor's uh suite to raise the pride flag, and I had occasion to talk with uh several of our supervisors and several other commissioners from other commissions, and there's a lot of curiosity about what's happening in the port, a lot of excitement.

So um, and and one idea that came up, I was talking with um some folks from the uh office of uh transgender initiative um and uh uh I uh had an idea.

I know we've been talking about a lot of the presentation that you talked about today is how much we're doing with other agencies, you know, hearing about the uh resilience uh work and and how closely we're working with other agencies on that made me think that uh especially in honor of Pride Month that it might be something we might look into is the um I always enjoy coming to our meetings to hear about stories about uh careers and people who have made the port what it is, and if there's some way that we could maybe partner with the um uh agency for human rights to think about um uh transgender LGBT uh uh uh contributions to the history of our port.

I think that would be a really nice thing to do.

Maybe that's been done.

Certainly not in my time, but if we could refresh that and and take a look at that, and uh when I when we were brainstorming that during uh you know uh festivity, it wasn't much thought into it other than um in the spirit of bringing other commissions to come tell us what their priorities are.

Maybe that's something we could reach out to them and and think about um in honor of Pride Month and get that started maybe next year this time when we're sitting here at Pride, probably we have something we can look at and uh be excited about.

So it's great.

One suggestion.

Really great to hear about the um department interdepartmental work on the resilience work, um hearing about the EV initiative is really exciting.

I know later today we're gonna hear about our blue economy uh research.

I think that all um you know underscore underscores the importance of building on what uh Andre has left us with a you know a healthy maritime business, but what's what do we build on next?

And it's always good to challenge ourselves when our position of uh a positive momentum and and good uh recovery from the um you know all the all the numbers are great about cruise terminal, but you know, how do we build on things that you know that we want to uh explore more?

And I'll just say uh welcome to the uh interns.

I was also impressed to hear even just talking with uh the uh I didn't get a chance to talk to everybody, but it was really fascinating to hear about all the different academic areas that people are uh studying from.

I heard physics, I heard biomechanical engineering, and I know there's architecture in in the group, so uh really excited to see uh what you all achieve this summer and uh welcome.

Thank you.

Thank you, acting director Martin, for your report.

Once again, shows how much activity and vitality we have on a safe, clean, and vibrant waterfront under your leadership and the leadership of the staff.

So I want to thank you.

Um I was really excited to see both the activities at Fisherman's Wharf with the Entertainment Zone.

Um it seemed like a lot of locals came to it, a lot of families, and I think that's really important that fishermen's war cannot survive alone on tourism, both domestically and internationally.

We need to again, as it was reported actually in a story that was run in the examiner over the weekend.

I think SF Eater around all the new restaurants that are opening.

Um from the restaurants that we're opening, and also the restaurants that are opening up on the land size, um, from Everett's barbecue to others that it's really going to begin to draw locals back to Fisherman's Wharf.

And I think that's really exciting for the community at the wharf and for um San Francisco as well.

So I just really wanted to thank you on that part of it.

I really wanted to welcome the interns.

Um, again, as you heard, maritime is one part of your internship.

Um, or I know some of you selected that and others selected other aspects, but civil service and maritime are amazing fields and amazing exposure for you wherever you end up in life.

Um, and it's really lovely to know that all of the interns in in this cohort um are um either born in or living in being raised in San Francisco, so we're raising the next generation of San Franciscans to care about and steward this waterfront.

And who knows, maybe at some point you will be sitting on this dais and have the honor and opportunity to shepherd the waterfront through its next chapter um, you know, in a decade from now.

So I really appreciate all of you in the project Tiffany that we continue to run.

I think it's really vital to us as a port and the commission.

And then just really want to say how excited I am to hear about what's happening on this um Southern Waterfront.

And um, we have an item here today, but also just about the electrification and the continued work on Pier 80.

So thank you and the staff for everything you do, and happy pride in Juneteenth to everyone, um, and the closeout of AAPI Heritage Month.

We have a lot going on this city to celebrate.

We have a lot of diversity and it continues.

And with that, next item, please.

Thank you.

Next item is item 10, the consent calendar.

For colors who wish to make public comment on the consent calendar, please dial star three to raise your hand to comment.

Item 10A requests authorization for San Francisco Public Works to award construction contract number 2892, Mission Bay Ferry Landing Phase 2B and Agua Vista Park for an amount not to exceed 41 million dollars.

That is resolution 2630.

Item 10B requests approval of proposed lease number L17432 with Norcal Rental Group LLC or Cresco for approximately 44,750 square feet of paved land at Pier 96 for a five-year initial term with one three-year extension option and one subsequent two-year extension option, subject to Board of Supervisors' approval.

That is resolution 2631.

Item 10 C requests approval to restructure and extend term of existing lease L-12275 with Pure 23 Cafe Inc.

requiring a competitive bidding waiver and modifying financial terms, including waiver of accrued delinquent rent and conditional tenant option to extend the term, which lease includes indoor space totaling 2,410 square feet, along with 2,425 square feet of outdoor dining area at Pier 23 and a half.

That is resolution 2632.

And item D requests authorization to modify contract number 2894.

Fisherman's Warfare, Taylor Street Public Plaza to increase the contract value.

That is resolution 2633.

Thank you.

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

So move.

Second.

Thank you.

Calendar has been moved.

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

Any public comment in the room?

Okay, do we have any public comment on the phone to move the consent calendar?

We have no colors on the phone, thank you.

Okay, public comment is closed.

We have a motion and a second.

All favor in the consent calendar say aye.

Thank you.

Resolution 2630, 2631, 2632, and 2633 are adopted.

Next item, please.

Item 11A is an informational presentation on updates to the mission rock development project, including efforts to accelerate phase two with possible action on a port capital investment of 10 million dollars to support pre-development and horizontal infrastructure design for phase two.

This is resolution 2634.

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

Also join today with our partners and partners from the San Francisco Giants, Jack Bearer, from tonight's fire 90 Hayden.

And then ski from the Office of Economic and Workforce Development, the Director of Development, who has been a partner at the city in working to unlock missions and accelerated phase two.

So today I'll just give a little background on mission rock in the history, which is extensive and great to date.

We'll talk about how we're expecting the project and working on lock it to bring phase two forward and then talk about the action today, which is about in testing for capital to move forward for the overview of mission rock at about 2.7.8 million square feet.

972 to 1.493, office space, 240 houses per year, retail, and eight acres of parking open space.

That's the purpose of the also includes raising the site on 5D and locations to protect the sea level rise.

Okay, it was received as we had earlier than that.

So two decades of work to get to this point.

Phase one started in 2019 and wrapped up last year with the existence process.

I want to highlight the project funding structure, because that's a key thing underpinning the repayment and the building on infrastructure here.

So the way the project is funded, there are costs, roads, sewers, parks, etc.

The repayment immediately happens from developer or equity.

But ultimately, those are paid with two things.

A land value, of course, land value, we meet the sites and then take that value and reimburse infrastructure costs.

And uh CFDI FDA community facilities district and an infrastructure financing district.

So those are special assessments and tax increment capture that take future tax dollars, issue bonds, and additional public financing that also reinforce that.

Ultimately, those two things were complicated to fully fund all of the project costs associated with mission raw.

The massive shift between the pre-COVID real estate environment and the post-COVID real estate market has challenged that, and I'll talk a little bit about that later.

But we're really in line with the strategies we had from the get-go, which is using CFD IFP sources when possible.

We still want to maximize that.

We want to use public financing, tax extent debt as much as possible, and using more capital to minimize that.

You run into additional challenges, and I'll talk about a little bit about how we're going to solve that.

So the project status today, phase one ran from 2019 to 2025, building through the pandemic, over the start of an incredible new neighborhood.

It delivered 537 homes, 132 below market rate, or 500,000 square feet of office, 50,000 square feet of retail space, the retail neighborhood there is really quite incredible and continue to grow.

It's been a huge success of shiny star for the city.

The budget did face challenges, building through this.

We started 145 million in 2019, increased to 184 million in 2021, and ended at 218 million.

While this was going on, there's no additional revenues coming from the project.

The land and those tax sources are really set, so we have increasing costs, challenging fixed revenues.

And that really underpins the market challenges we face.

Although we can see peaked at 36%, really unprecedented in the history of San Francisco.

We've never seen any difference in that.

Residential increase.

Rents are starting to recover really picked up over the last year, but they have just passed the 2019 level and still remain far behind where we were in 2019 when accounting for inflation.

Even today, market 100% rate construction would be in principle, the controller's office just now.

Construction costs, inflation, interest rates, spikes, post-COVID, kind of creating a perfect storm of bad conditions for building new development in San Francisco.

However, there's been a lot of excitement and some good signs over the last year.

The office vacancy rate is down to 30%, which is crazy to say that's a good sign, but it really is.

There's a lot more interest in the market with the growth in artificial intelligence.

There's many new businesses looking for space and looking for the San Francisco that want to be here.

We have just a unique economy at the cutting edge of the economy.

And people who want to move back with that, which is increasing demand, which is making projects closer to feasibility.

Those economics remain deeply challenged, and that's why we need to reexamine the project.

The city has re-examined and did several projects on treasure, and on the power space, corn unit, and several others, are all going through this process of trying to adjust to post-COVID economy so we can make projects feasible and grow the same.

So there's really three main challenges that we are looking at.

The first is an infrastructure funding gap.

So I alluded to this earlier.

Costs have gone up, revenues remain the same.

This means there is a gap in the process.

What we're doing there is looking to identify new sources to fund the horizontal infrastructure.

You want to say horizontal, that's everything in the ground for roads, parks, groups.

The second thing is market responsiveness.

With the massive vacancies we see, tenants have a lot more choice.

And you need to be flexible to respond to where the market impacts.

So we're all provides an additional flexibility in terms of health.

That could mean different phasing, it could mean different uses of buildings.

What we want is more flexibility, but you land at the same project.

So we still deliver the same number of homes, the same round of office space, the same public debt.

It's um there's more flexibility to accomplish that.

And then the last thing is market competitiveness.

As all these other projects in the city are changing policies, we need mission rock to align to that.

If mission rock is twice as expensive as every other place in the city, you're not going to get investment there to spur growth because it's just not.

So we would want to align, uh enhance working voting outline to where the city is at today.

So then we really want to focus on accelerating phase two.

We want to keep the momentum going.

This is a six to twelve month process, probably.

It would conclude in 2027 with the legislative process amending the DEA, the DA, the development agreement, and all the associated documents, and then we would move to infrastructure design, which is another 18-month process or so.

This gets us to a phase two, possibly in 2029.

We don't want to wait three years on this or not.

So we are looking at a concurrent scenario where we do these things together.

We'll move the transaction documents and the infrastructure work together.

That means rather than a three-year timeline, we're hoping for an 18-month timeline, potentially even 12 if we were able to move at lightning speed.

That puts us with a possible phase two at the end of 2027, early 2020.

To unlock that, we're proposing investing 10 million dollars in port capital to fund the predevelopment work.

The pre-development work will be amending those transaction documents and designing the phase two infrastructure.

At the same time, the developer will be designing the vertical side and finding tenants and investment to build the vertical components.

So when we have infrastructure design in hand, we are ready to break around on everything and move forward.

It feels like a long time, and it is a long time, but we really need to move fast today to be ready.

So this 10 million dollars in poor capital, it earns a 10% return under the current documents.

So that anything we invest will earn 10% from the day we put it in.

We're not going to put it all in in one day.

We have leftover appropriations from the projects.

We'll put those in as needed over time over the next 12 to 18 months, they'll earn 10%.

They will be repaid, so we're going to amend the documents to repay them from the first sources in phase two.

So when phase two starts, the first source is coming in, we'll repay that.

So the second we break ground on phase two, that starts money flowing into the project, that will start repaying the fourth 10 million dollar investment.

Um the return here is not a huge amount of money.

It's competitive, it's higher than we would get in just the standard bank accounts we hold.

The primary objective is to explain phase two.

We do get a return depending on when that groundbreaking is, I highlight three different timelines of how much it would be in your 450,000 dollars in return to 2.6 million dollars in return, depending on whether we are starting phase two in 2027 to 2029.

So next steps from here, we're gonna start coordinating with the developer and city agencies on that infrastructure design.

We've started that process and are hoping to kick off this month, assuming we can get an approval and get going.

Uh, we'll commence negotiation of those action documents.

There's over 2,000 pages of them, so it's a very heavy and complicated lift to make all the changes, and then we're gonna hope to come back probably later this year, as soon as fall uh for uh approval of the transaction documents that we would then move in the forward process.

Um that is my presentation.

Um, the whole team is here for questions, and thank you for your consideration.

Thank you, Lyatt.

Commissioners, if we want to move this item, I need a motion.

So move.

Second.

Thank you.

Okay.

Is there any public comment in the room on this item?

Come to come on up, and then also I think he was just moving.

Oh.

Okay.

Hi.

Welcome.

Good afternoon, Cousin Speaker, South President Gillman.

Don.

Don.

Oh, sorry.

Oh, I thought you were Don.

I thought you had something to say about this item.

I was a little surprised.

Come on, Jack.

Jack, please come on up.

I thought you had a fan among staff.

Good afternoon, Commissioners.

Uh, my name is Jack Bear, and I'm with the San Francisco Giants and also the fisherman partners from my colleague Maggie King from Fisherman Spirit's in the audience.

I just want to express our support for this really important first step to enable a second phase of the project.

We will bring benefits not only to the port, but to the city with large.

And I also want to take this opportunity to acknowledge the hard work of the court staff that we've been working with for many, many months.

Uh, we met Wyatt, you know, Scott, Kerry, and also the mayor's office represented here by lead.

We've got a good cohesive working group together.

And as you know, these significant complicated projects require that dynamic uh to move from point A to point B.

So we're excited to get started.

Thank you.

Thank you.

Okay.

On this item on Mission Rock, is there any other public comment in the room?

Is there any public comment on the phone?

We have no colors, thank you.

Then I'm closing public comment.

Um we were briefed on this, but commissioners.

Do you have any questions for Wyatt, further questions or comments?

I think we have a commission that understands the need to move this forward to excel growth in San Francisco and this project in partnership with in great partnership with the Giants and a project that continues to be a groundbreaking example of affordability and um diversity among our housing stock in office.

Commissioners, we have a motion and a second.

All in favor.

This motion passes unanimously and enthusiastically.

Now, Don, we're on to the next item, please.

Item 11B, requests approval of a proposed new lease.

Sorry.

Item 11B requests approval of a proposed new lease, lease number L-17424 with surface area LLC, a California limited liability company for approximately 2,000 square feet on the ground floor of Brotto No.

9 restaurant located at 2875 Taylor Street for a term of two years with one option to extend the term for one year.

This is resolution 2635.

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

And um at the podium, please remember to speak up.

Thank you.

Don, you're so enthusiastic about this because I think you really want to go there and have a beer at when they open, so please present this item to us.

So, it's remembering the leaves at broth number nine.

Once we decided that we were gonna step the law at Aliodo's restaurant.

The right kind of tenant for the model.

And so um you know, that space provided a number of opportunities.

So they're providing a number of opportunities.

I'm not gonna read them all off, but you can see them there.

Um, we were trying primarily trying to find pop-up retailers that could uh could invest for a couple of years, possibly a third year, but we don't have more time to have it right now.

So we were so the 504 forward team stepped in to help us with looking at the cafe and deciding what needs to be done.

And there is about a six hundred thousand dollar cost, which is about two hundred dollars of squirt, but that's not necessarily for general improvements.

It's to set up the space so it's usable for the pop-up tenant, so he doesn't have to come and spend a bunch of money.

That's what we were looking at.

We engage in a competitive marketing process with Maven.

We brought in four prospects, two were restaurants that extended the scope of what we had available.

The third was an entertainment zone, uh, and the space just didn't uh work for that.

So Jim Woods, who's here today, stepped up and offered to put in a pack room, which we felt was almost the exact use that we were looking for.

So the competitive bidding process um is a lot of positive.

So we were looking for a concept of appeal, an activation impact, simple, meaningful operator experience, and willing asked for shelf for short-term agreement.

And could open short.

So we selected uh surface area LLC, which is Woods Beer and Wine Company, which I prominently referred to as woods.

Um, there's a little background information, but one of the most important things is Jim has now six other operations in San Francisco, so he's familiar with San Francisco, the rules, how to get through the permit process, and has been at this point.

So the essential elements of the lease is a two-year term, the one-year option to extend, percentage, 10% only.

We're only going for percentage rent off phase, 10% from May to October, high season, 8%, November to April, which is the whole uh woods and pay a thousand dollars a month for utilities because the building is not separately needed, it's too expensive to some break that out.

Um, is also gonna bring a kitchen trailer that would be used to augment uh uh the opportunities that are limited by the more or less plug and play nature of the cafe inside, and so we think this use will very much support the opening of the alias plaza, plaza, and we're trying to work within to get the police and the plaza to the same time.

So with that, I'm open to questions.

So Don, I'm gonna ask that you advance the slide just to make sure everyone sees the lease terms.

We're still on the amazing background and photographs of of the owners, which is great, but thank you.

I just want to take a minute so commissioners could also see the lease term, which I think will be critical for discussion.

Um, and maybe then advance to the next one and maybe just walk through A and B so people really understand the footprint they're doing.

You have one more slide.

Okay, it could slide seven.

Can you put it up on the screen?

Just advance it.

Sorry, it's okay.

And I think just on this, just as someone who was briefed, it just because I think it will come up in questions.

Can you just walk through what A and B is and what portion of the space they'll be using?

A is the uh actual premises.

It including the lower right rectangle, which is the awning outside, which is historically part of broad premises.

B is the bar area, which is not gonna be open to the culture, it's gonna be for preparation of drinks and serving.

And C is the plaza area where there's a non-exclusive license to put tables and those.

Thank you.

There's an opening.

But there's a presentation between the closet in the bottom and near the top.

Okay.

Thank you.

Thank you.

Commissioners, do we we need a motion to um?

Sorry, I lost my place where I was here.

So moved.

Thank you.

Second.

Okay.

And then we still need public comment, and then we can ask all the questions we want.

So thank you, Don.

You can take a seat for a second.

Is there anyone in the room who wishes to give public comment on this item?

This is your opportunity, sir.

I am Jim Woods.

Thanks for having me.

You know, we're very excited.

I spent uh on my ballot hanging out for that.

I've got six, four, and two, three points.

So we're excited to come through here.

And um, as Don said, we grew our beer at any line on uh Treasure Act in San Francisco, uh for five uh six that we're uh immensely thankful for the opportunity.

I think it's gonna be a really great way to activate um such an amazing space.

Um, free foot traffic and uh thrilling.

So thank you for considering the opportunity.

Thank you.

Is there any other public comment in the room on this item?

Okay, is there any public comment on the phone?

We have no callers, thank you.

Okay.

Public comment is now closed.

Commissioner Lee, I'm sure you have some questions.

Um, Don, I mean, we're talking about uh a one potential lease C, right?

It's not it's not two separate businesses split up.

So in other words, A and B are actually the same business, correct?

Yeah, they're the same.

It's all wood, it's all surface area now.

Um, so I'm curious on the lease.

Can we can we see the oh can we see the slide again on the lease terms?

Uh yeah, okay.

Um so curiosity, because I know this is kind of uh new territory, and it is a new entity, and it's probably um I think the tenant is well qualified as far as the concept.

Um, just curious, uh, how did you come up with this agreement?

I mean the percentages, you know, um there's something that Maven worked with you guys on, kind of want to know a little bit of a background.

Okay.

Thank you, yes.

Uh, Commissioner Scott Lance will be able to for real estate side, so we take this question.

Um, we did lean on McMaven, right?

We understand for better landscape or really short term of our pieces, right?

Which um, you know, generally they we're seeing this more than presentage to this.

You gotta speak to that.

A lot of the deals here in the ferry building um and other locations around the C or percent uh only really to share in the uh in the success and potential failure of the ready to set up a tenant where they're not hurt by a big strength as they establish themselves in the business of the line.

So it looked at opportunities here to participate with woods, knowing that this is a short-term agreement only two years, uh, that is really a portion of the larger space in very tough conditions with very limited movements to get the other.

Um, that was considered in the formula of what the appropriate you know market uh market rank would be the next time so the uh the budget of 600,000, and that's coming.

That's what their budgeted to spend, or is that is that uh fisherman is worth moving forward as a piece of the fisherman or forward work that's been contracted through resilience that is building a fashion and they've taken on additional scope in and around this space set it up for retail tenancies and what we'll be delivering to woods uh hopefully in July is a space where we can move in to some final bit of moon uh and clean up a minimal further investment because we like our time to really get them open by all of this um so you know kind of the sprint once we delivered the space uh hopefully in July and that was the primary goal of the tenants here was having some open with deposit opening later this year uh a couple of the other respondents that all mentioned with full systems very complicated expensive longer terms into the okay so um so they're gonna contribute six hundred thousand worth of allocation right now that's already that that's already budgeted money that's being spent by the fix up in the project so it's already funded it's already contracted that work is happening right now okay what what Don was just calling attention to was the need for some of the improvement just to make the space happenable.

So in other words you're giving it to them as a shell.

A working shell working shell six hundred thousand dollar budget you think is enough it is enough because we're working with just the cafe portion of the grotto the now series only woods has been a part of some of the scope of that work so we're talking about these infrastructure set up for his um kind of floor and carry out operation um new windows new doors new improvements to the patio area to make to make the space competitive so that that work gets delivered with the Ponza in July and um okay so can I speak to the I can he can I speak to the tenant yeah can I have questions.

So we're gonna give you the space clean and what do you plan to I mean it's kind of a short lease so me as a as a business owner as well you know how much are you planning to so my curiosity is you got a three year a two year you know maybe a three year with no you know without you know any maybe uh an extension of a lease I mean I mean I don't know if that's a port because you know we want to get it open give you a try and then we're gonna renegotiate a whole new lease for either yourself or maybe somebody else that wants it so I we're just curious I'm just curious as is that enough we give you the shell and then you got three years you I see you're gonna bring a trailer in for the outside thing but you know to have a nice place I mean we all know how much it costs to build.

I mean how much I see this as a temporary activation and given the circumstances that are currently what we're working with and I think we can create a really compelling experience even with minimal investment.

And I think that the space is uh you know given the views and the infrastructure that's there I mean they're basically just addressing some deferred maintenance um bringing it back to where it was I think that we can get up and running very quickly and provide a really great guest experience.

If there are more opportunities long term um we'd certainly um love to have that discussion but uh it was imperative for us to look at this and make sure that the costs that we're putting in could be you know amortized over two years so if we're not making a huge investment into the space um as Scott said um you know there's some F F and E in the trailer comes in but that can also trailer can be pulled obviously so our investment is limited to um you know mostly the items that we can take away or that can be amortized over the course of the two years.

Right.

So how much do you think uh would you be investing in this space?

Um well we're we're not gonna really be doing any work.

Um so I would imagine that um like tables and chairs probably, but those those will be our possessions, right?

And we actually have a lot of those items already.

Um so you know, I think that we can probably get in there for maybe $25,000 of just sort of uh, you know, items that won't be recoverable that will be considered part of the space, and then um maybe double that if you include things like uh table, chairs, uh, you know, networking equipment, point of sale, all those things can go with us if at the end of two years or the other three years that we we can't, you know, stay.

So, so no permanent bars, you know, you I mean tap rooms, you know, it's all gonna be kind of mobile.

Correct.

And and um what was uh one of the questions earlier about the two parcels?

Um that was that uh bar area will allow us to have a really great cocktail program without having to invest and put in a lot of infrastructure.

So um, you know, that was existing, it's right there, so that's why it was added to the lease.

Uh I see.

Okay.

All right.

So we're we're confident we can get up and running and provide a really compelling experience in a short amount of time.

It's I mean, it's an amazing space and can't be to use and put traffic.

So, okay, so basically it's just a pop-up, very temporary, and you know that.

So you had no intentions of probably, hey, if it works out, I'm gonna I want another five year lease.

Have you ever thought about that?

Or is this something that I'd love to have that conversation, but uh you're just still testing the market?

Yeah, it's not in the lease, and we'll take what we can get, and even if we're in there for two years or even three years, we anticipate making a lot of money for us and a lot of money for you.

And if you have other opportunities for us, whether it's in that space or surrounding space, we would love to have that conversation.

But uh, you know, we we've modeled this so that we can make money and have create a great experience uh in a short amount of time.

And you're serving food with us too, right?

We are, yes.

So without building a kitchen and all that, um, so you're gonna do everything through the trailer?

Uh we will do um the hot size through the trailer.

I mean, one of the challenges with kitchen is there's no hood.

So the reason why you want to rent a hood is so you can actually, or the trailer so you can have a hood, and you're not making a huge infrastructure investment.

Sure.

Um, so uh the cafe, the um scullery area, the prep area, I think it is actually very helpful infrastructure, and between the trailer and um that back kitchen area, I think that we can provide a pretty high level of uh quizzing.

Okay, and so I mean, I think it's fine.

I mean, you're it's a very low investment on your part, I get it, you know, because you want to just be able to pack up a leave if it doesn't work out.

I'm just more concerned about the health department.

Have you consulted with them?

Um part of our the original um conversation there is a list of um extensive comments from the health department on all the spaces, all the things that are needed, and those are all uh identified in the scope of the project.

So the infrastructure necessary to get past the health department um is all in in progress.

Okay, so it's all so you are aware of all that and it's already being addressed.

Absolutely.

And I think with the environmental health, you know, many times.

Yeah, I know.

That's why I'm asking you, because you know how they throw you a curveball right in the middle of the project.

Yeah, okay.

That's all the questions I have.

Thank you, Mr.

Link.

Commissioner McNeely.

Yes, I I have a question I think for Don.

Um, on the uh percentage of rent only, um you said that uh it was consistent with that negotiated, say in the ferry building and and other locations uh that are also percentage rent only.

Um, uh in this instance, I see a slight differentiation for seasonal uh seasonal, I guess, uh uh variety or variability, uh variability.

Um how does that compare with the fair building, say for instance, where it's all contained, and um what percentage are we are we thinking about there uh for just comparison's a?

Uh well I don't handle the ferry building, but I'm familiar with leases, sure, that's fine.

So what typical typically the restaurants have a base rent plus percentage?

So that's where you can tells the swings for us.

But this is a straight percentage rent without base, so the percentage should be a little bit higher, is how we vote.

Okay, thank you.

Thank you, Commissioner Adams.

Um, all the questions uh I'm supportive of the item.

Thank you, Commissioner Adams, Vice President Emlum.

I um I just want to say thank you to Commissioner Lee for your expertise in this area.

It's really helpful to have your uh expertise in asking all the questions.

And I'll just say to um to uh the tenant, um, thank you for uh what you've done for the food scene.

I've been to your uh restaurant in Cole Valley and Lower Haight, and it's um really excited to see that energy come down to our uh fisherman's wharf um and and uh to the leasing team.

Thank you for doing this in such a creative way.

I think it's a great example of how we can do things fast and be agile and uh not drag things down and and also work with the health department in a creative way.

I think that's uh it's a great case study, so I'm very supportive.

Yeah, um I'm supportive of the item as well, and I'm really excited to see um this open along with the plaza.

I think it's gonna be amazing.

Um, and I've heard amazing things about your other establishments.

I'm gonna the closest one to me is on Polk Street, so I'm gonna go check it out.

Um, and just one one other word.

We've talked a lot in this room as someone who lives near the waterfront about how do we make the waterfront this plaza activation, everything that's happening, both be a place for tourists, but that we really try to get the communities that surround it um of North Beach and sort of the northern waterfront to come back to Fisherman's Wharf with where many locals feel that it's just for tourists.

So I really hope you could be creative, um, you know, opening week or opening night 94133 is the zip code for that.

So maybe there could be some creative ways that you can entice locals to come on down.

Um just because I think that's how we're gonna keep fisherman's work vibrant and economically sound through those down months that you talked about, where your percentage is only eight percent.

That's where locals are gonna make it or break it.

So I really hope that we can have a program that targets them as well.

And that concludes my comments.

So we have a motion, we have a second.

I think we all are in favor, all in favor of this item.

All right, thank you.

This item passes unanimously.

Next item, please.

Next item is 11C.

11C requests approval for one, the expansion through December 2036 of the downtown community benefit district doing business as downtown San Francisco partnership to include port-owned property.

Two, the appropriation of eight hundred and eighty-three thousand dollars for fiscal year 2026 to 2027.

Three, the inclusion of funds for DSF in future budgets, with an increase of up to 5% annually, subject to approval by the DSFP Board of Directors, and four the executive director to submit a ballot for port-owned property in favor of the expansion.

This is resolution 2636.

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

And I'd like to uh remind presenters to speak loudly.

Thank you.

Thank you.

Um, commissioners, good to be here.

Scott Lanceville, Deputy Director of Real Estate Development.

I'm joined by uh Robin Silver, CEO of the downtown as the presidentship, um Jackie Eaglewood from BWE and other um partners who have deliberately helped in this process of putting together solidifying what has been a working partnership, um trying to get our port side property better integrated and coordinated with uh the activities in around downtown that's the downtown SF partnership that's been working on for the last several years successfully, and downtown has risen again post-COVID.

Uh, and as we talked about these other items here, here we've really seen the fruits of that labor, and this item in front of us today is really about solidifying our partnership and relationship with the downtown CBD, such that we can now move into the future benefit from really joint services where there's collaboration and two puzzle pieces fitting in together that really work together accordingly, and I guess our advantage together to make sure that both on the land side and the food side there's a cohesive experience for visitors, for locals, who feels safe, it feels consistent, and kind of prizes all of our tenants along the waterfront.

I'm going to hand the presentation over with Bobby Silver.

He's going to give you some background on the downtown work and partnership, and then towards the end of the presentation, we'll cover specifically work, public services, budget, and then the work of the Scott.

Good afternoon, Commissioners, and thank you for the opportunity to speak today.

My name is Bobby Silver and the president and CEO of the Downtown SEP Partnership, and I am pleased to be here alongside our colleagues at the Port of San Francisco.

Also, thank you to Director Mike Barton and his staff for all the work that we've done together to bring us up to this point.

As we present a shared vision for strengthening the connection between downtown and the waterfront through the renewal of the downtown community benefit district.

To give you some history, this is a current map of the district.

In 2017, a coalition of property owners and businesses came together with a simple goal to create a cleaner, safer, and more welcoming downtown.

Following the success of a popular uh majority vote of property owners, the district was established in 2019 and began operations in January 2020.

Just months later, the pandemic transformed our city and challenged downtown in unprecedented ways.

During those difficult years, our ambassador teams remain on the ground every day, addressing quality of life concerns, supporting vulnerable populations, and helping to maintain public confidence in the district.

These efforts reinforce an important lesson.

Downtown organizations must do more to provide services, and they must help the public.

Um as an economic driver for our recovery.

An initiative that now has inspired additional entertainment zones across San Francisco and throughout the state.

I've recently been to the most recent one in person for very successful.

Today, programs like Drag Me Downtown continue to demonstrate how strategic activation to drive visitation, support businesses, and create memorable experiences that bring people downtown with inclusion at the forefront.

So why renew and why now?

And the question is what's really next for downtown.

Downtown San Francisco is entering a new chapter, and recovery is well underway.

Investment is returning, and there is growing momentum in how to reimagine how downtown and the water product can function together as one interconnected destination.

To meet this moment, we chose to pursue a minimal nearly eight years ahead of schedule and explore its significant district expansion.

This effort is designed to accelerate recovery, respond to stakeholder needs, and position downtown San Francisco to compete with leading working centers across North America.

We set out with five goals in mind.

One, competitive advantage, sharpening downtown's image, and building on this new market momentum, strategic alignment across downtown North America, the pandemic, advocacy and investment to serve as one unified voice downtown, shape policy, secure public and private investment, and advanced both solutions that strengthen the economic competitive competitiveness and long-term growth.

Provide uh operational excellence and clean and safe market vitality and economic development and high impact placemaking.

And finally, in Park and Arrow Parks, securing sustainable funding for ongoing programming and services to downtown's newest public realm project.

This is our proposed map.

We are proposing an expansion from 43 blocks to 70 with three service zones.

Service zone one that you'll see in purple is the financial districts of Jackson Square where we will continue.

Stakeholders here will receive comprehensive planning and safety services, actually going 24-7 on those, as well as expanded services and programs and placemaking and economic development.

Zone two, which you'll see in green and market arrow zone, extends the district, to strengthen the connection between downstone and the waterfront.

This is an expansion area for the CPU.

And finally, zone three, which establishes a dedicated service zone for four properties, allowing for customized service delivery, tailored to the waterfront's needs, and of course, opportunities.

Let's more less up as mentioned, but also here a fourth of July and most recently we partnered with Court staff on the big art report side.

It is just an absolutely incredible to see the very unique pieces of art along our waterfront and in downtown, and our team has provided uh marketing support, including going on the white page.

Thank you, Robbie.

So when Robbie and the downtown SOPA ship approached us, initially, right, there was some thinking that perhaps of course we will be some of the services that we formally, but as discussions progressed in terms of OEWD and the downtown CD team, we really aligned with input from Carl Thomas on our security side, and built him, our director of maintenance, our own real estate team, and even tenants on supplemental services that added to what we were already providing such that we would avoid uh duplicity in terms of the services provided, and that the the dollars being spent by the court were worthwhile dollars.

It's important to clarify in the fourth district, and for the court budget, those dollars, the eight hundred and three that will code per second, um, all are spent on court property, right?

So that is that is retained in the court, those services are outlined here, but it's really hospitality and outbreak services, and security and operated time zones where you've needed staff, restoratives and staff, special events, uh support, control.

We have the option to consider outreach and homeless outreach services, which currently this is a small line item in the budget, but we want to resort flexibility and not really knowing if we need to remember the job or not.

Um and then some help and coordination on marketing, uh really pulling the court activity and tenants into the downtown ecosystem.

I think celebrating, you know, the ten great tenants we have here at the ferry building, uh Lamar, you know, there's one through five and the tenants there, all the way up to seven, and hopefully, small fourth coming out of the congress.

Um, we found kind of the place where the services made sense for us.

Um so here is our um annual budget that was established with a lot of this document to work, and we can put one uh the team, uh that tests to our 800 and services.

Um so these are you know, kind of resources that are now our scope for the services.

There is fungibility with the buckets to the over time.

Uh, make sure that the services are meeting and marked as the number, and we'll continue to work on this program as established.

Um, and then that this budget grows, I think uh an estimated by three percent, five percent, every year.

Uh, and then the walls is here to uh answer any questions for specific questions about the budget and how we're thinking about layering this into our um you know our fiscal budget as uh with that we're opening up the final thing.

Time on the side of so here we are in June of 26.

Uh it's really the action today is to ratify our our engagement in this, uh allow us to know the budget and also uh voting on the ballot, that we're getting our properties, for inclusion, uh, and moving to the board of supervisors and approval and the launch in 27th, uh January 27th, so right around the corner, where next year we'll be able to benefit from uh this work uh integration of the I will open it up for questions.

Thank you.

Thank you.

So do we have a motion to move this item?

So moved.

Second.

Thank you.

Before we go into that, we have public comment on this item.

Is there any public comment in the room on this item?

Okay, is there any public comment on the phone?

No callers, thank you.

Okay, public comment is closed.

Now we can go to questions.

Commissioner McNeely.

Sure.

I don't have a question about the on the labor costs.

Um the eight FTEs, uh, but the zone allocated FTE is three dot four.

So are the remaining individuals, those are those are those would be individuals with additional port responsibility.

Bringing out uh require R O R C as well.

Hi there.

Hi, good afternoon.

Hi.

Um, based on the question that we're looking at at this point, we're looking at the CBD as an overall organization.

So some of these positions that we're looking at will cover not just the port area, but also the two other district zones currently proposed.

So that we allocated expenses for each of these particular zones.

So when looking at this example of operations supervisors and general managers, we have one that covers the entire district, but a portion of that time will be allocated obviously to the port and to those services.

So additional FTEs will be needed, so some of the funding goes to FTEs for the entire district, and then some dedicated to the new zones.

Is that it?

Okay, okay, thank you.

Okay, that's it.

Commissioner Lane.

Well, I'm not I'm not against uh you know supporting the CBD uh as we do at Fisherman's War, but I have a question I see on the overnight security, yeah.

There's two people, and then those two those two people are gonna be responsible for the whole all three zones, or not just allocated to the um our zone.

Yeah, uh yes, the opening security services are currently going to be allocated for the entire district based on uh the research and the data and metrics that we've collected over the past few years.

We feel that this would be sufficient at this point, uh, but we're also gonna be able to look and see exactly what type of calls for services because we haven't had a situation like this where we've had overnight security in our district, but having work myself in other CBDs here in the city, including Uni Square and also the DC has to have 24-hour services.

We think that this would be sufficient to provide security services as well as dispatch services to the district as a whole.

So, um how do how do they or where do they work out of?

Is there a is there an office or do they ride bikes all around?

They'll be in a vehicle and they will be uh based out of our operations center, which is currently now on Sansome Street at 221 Sansum.

We are looking because we're increasing our staffing with the proposed renewal and expansion to put a district office closer, actually literally closer to the marketero.

So it's more centrally located within the district.

Right.

So the officers will be reporting there first, signing in, getting their dispatch requirements, and then patrolling in a vehicle throughout the district.

So just my session.

Commissioner, if I may add to this as well.

Uh, this was a strategy that we worked on with Kyle Thomas, our security manager.

So the port has moved to port staff as overnight security.

We've moved away from private security firms.

Sure.

So we have um a couple of staff working overnight.

Typically, those staff are actually moving with our overnight cleaning crews to provide, you know, oversight and safety for them.

And so this ability to reach to this security um um uh staffing in this area will allow those folks to sort of better coordinate um all uh as well if there are incidents here, they don't have to necessarily leave their post to come down here.

No, I understand.

Is in other words, they're supplementing their supplement, I get that already.

I'm just and and the other point that Kyle made is like you know, ish is incidents don't observe that really weird map of properties downtown.

That's part of why we want to join the C BD to be part of a collective solution so that we can keep everything so I'm just asking the question because I know it's it's beneficial for port because it's actually adding two more people to help secure.

Because I pick up my packets at, you know, when Jenica says I have a package, I come here at it could be three in the morning, I come in at eleven, twelve midnight.

So I'm the one I see homeless sometimes in pockets, and I just want to know that because you know you need visibility.

So if we're gonna be you know having supplements, I want to know where these so-called guys are in their cars driving around so people know that there's people in the area rather than you know they might be over on Washington Street somewhere, you know.

So I just think it will be dedicated to the district as a whole.

Okay, not only will we be driving, but also yeah, because my next question I was gonna ask is how many do we have that takes care of our our part?

So I mean that's why I I'm for this.

I just want to ask the question where you deploying them because um you're only talking about you know Pier 3 to ferry building.

Not really a lot, but then um visibility is important.

So I'm just asking the question where you're gonna put your station.

So other than that, I mean I mean, we should support our tenant, number one, like that we do at Fisherman's Wharf, and with all the activities, we can't do it all.

Uh, but my main concern is I want to know where the security was and make sure they're effective.

So okay, that's all the questions I have.

Commissioner Adams.

Uh stand in support.

Uh it's pretty clear.

This is something the voters want, and this is something our community groups want.

I Alice left and I was going to ask her with any support, and I pretty good at the message from outside their own board with that.

So I stand and I support it.

Thank you.

I have a question.

What's the overall budget?

I see 880,000 is what our contribution would be.

What's the overall budget?

Yeah, so currently we're um as a district, we're about a $4.8 million organization, as I mentioned before, since we are going 24-7 and 3-5 million, like the current zone.

That's going to bring our full uh CD budget actually, uh 11 million 52,000.

So uh is that as simple as this would represent 880,000 of that budget?

Okay, that that really helps.

Um, and then I just I have a question about the map.

I I was curious to see uh that I guess South of Market really is not part of this, is or is there uh as you're rethinking the map, was there any thought?

There's a lot of significant property owners over there.

Is there any thought to them being part of this as well?

Yeah, great question.

So you'll see this gray area we've seen in hours, that is actually part of the tech community benefit reverse.

Okay, um, so for us, the only expansion that we were able to consider was obviously the board and then uh further knowledge of the justice work.

Okay, and then I guess a question for uh port um is this an additive 880,000 to our budget, or are we finding efficiencies?

Um, I think I can come on up a lot of our budget.

So we will find efficiency.

So I think during our budget presentation, staff would be able to highlight how we're generally pretty conservative, like we've set the work on the expenditure side a little bit higher than we think, and finding all of those funds.

So we're going to be doing some analysis to see where we can pull back from other areas.

Yeah.

I just want to add to that too.

I apologize, but another component of this is some of our tenants have their own security, so that's the benefits the tenants see from this also through our recoveries, potentially, if not the budget's engagement conversation with Steven, the master tenants here.

Um, here's three through five discussion about resolution here in some cases that we see allow asking, or some of the systems.

So, I think you're about to be working on, but really are hoping we have our tenants to uh understand the varieties and buy and level, too, is it hopefully important, so that's an important piece of problem.

Yeah.

I would just say, you know, I'm very supportive of this measure, and then while we have the leadership of the um uh downtown partnership here, I think this is a really important partnership uh for everything we're talking about today, but I also think it indicates like we really need to be doing erasing the boundary in people's minds between downtown and our waterfront.

Um, you know, when we talk about our resilience program, we have an 18 billion dollar seawall to rebuild, there's 350 billion to 400 billion dollars worth of property tax or property right here in downtown San Francisco.

So, really erasing that boundary between it's gonna help us in the long term because when we go to talk to people about rebuilding our seawall, if if it's not thought of as a uh a singular unity, you know.

So while we're talking about all this exciting stuff you're doing right now, also just want to say that long term, having people think about downtown and the seawall in the same sentence also comes with a lot of responsibility in the future.

So I, you know, we're we're here working on this together.

I think you know, when we get through some of these baby steps, we also have to have some of those big conversations like how do we get those 350 billion dollars worth of real estate to be thought of as what's being protected by our seawall.

We can't have people just think about the ports out there on its own building an $18 billion dollar seawall.

Like, why are we doing it?

We're doing it to protect this incredible downtown.

So thank you.

Um, Scott, Robbie, um, I think the commissioners have asked a lot.

I just want to say, um, Robbie, I've watched you grow this on um can the community benefit district side, and so just really want to say congratulations to you and your team.

I remember when you started it, it was such a novel and infancy idea.

And um, I guess I'll just do one shout out um for my brothers and sisters who are past your mass pass specific on Columbus Avenue.

Really want to say those businesses rely make or break it um on the business crowd, you might want to consider going all the way up to Broadway and Columbus Avenue.

So just think about that.

If you haven't nailed down your expansion opportunities, um there is no CBD in that neighborhood.

But I'm supportive of the item.

So commissioners, can we have a vote on this item?

All in favor.

Thank you.

Resolution 2636 is adopted, and we're excited.

Um, Jenica, next item, please.

Thank you.

Item 12A requests approval of a first amendment to management agreement one six one one four with Pesha Automotive Services, a California corporation.

This is resolution twenty-six thirty-seven for callers who wish to make public comment on this item.

Please dial star three to raise your hand to comment.

Thank you, good evening, President Gillen.

I'm the maritime director from the Port of San Francisco.

Um, please bring to you a request for approval as stated uh for approval of the first amendment, terminal management agreement one six or one four, uh with Asia Automotive Services, this amendment is forced strategic plan objectives and economic growth to evolve and public collaboration.

As background, the port entered into a management agreement with PASHA Automotive Services on July 1st, 2016, giving Patia the exclusive right to provide services to marine terminal users at the PR80 terminal for a 15-year term with the option to extend uh the agreement for two additional successive five-year periods.

Pursuant to the management agreement, the court agreed to pay PESHA a monthly management fee of $50,000 to market the terminal, manage operations, keep it clean and safe for customers and laborers, and provide security of the terminal.

In return, both parties agreed to share revenues generated at that period.

Over the term of the agreement to date, Patia has provided a high level of professional and operational services with no complaints from current or previous terminal users.

However, revenue and jobs jobs creation have not materialized as Patia originally projected in 2016, and current projections indicate a continued downward trend of maritime related automobiles.

Accordingly, court staff negotiated the first amendment to the agreement with patients to stabilize and potentially increase the ports revenue.

During the first five years of patient marketing and operating terminal, the number of automobiles increased year after year reaching peak of 125,174 automobiles for fiscal year 2020, 2021.

However, the following fiscal year 2122 experienced a severe drop in the number of vehicles and the years that followed, have not seen much improvement.

Well, 2122 by the COVID pandemic, slowdown.

Tesla, Pesha's primary customer at Pierre, open new manufacturing plants in China and Germany, the cars sold in these regions, which impacted the number of cars built at its three blood factory and exported for Pier 8.

In addition to Tesla's new foreign factories, the EV Global Market has become more expenditive.

And that's what in Tesla's foreign exports market share.

In previous years, Tesla had provided Asia with a minimal annual guarantee or a bag for the number of cars you can export.

Last year in 2025, Tesla did not commit to a man.

Pescia was able to generate some new business by handling Toyota and GM cars and trucks reported from their respective factories in Mexico.

And destined for U.S.

West Coast markets.

There continues to be an uncertainty in automobile import markets due to the impact of U.S.

tariffs and global fuel price increases.

Upon learning that the court could generate significant revenue, nearly one million dollars, and provide public benefit by those reports of Pierre AD for staff and coordination.

The festival is successfully continued annually with plans for the festival scheduled for this agenda.

Although Portola and other recent events, including sales of P New Year's Eve concerts, and Super Bowl parties helped shore up the losses of automobile revenues, the port's revenue under the agreement for period in comparison to patients has been disproportionately less.

The disparity is attributed to the $50,000 monthly or $600,000 annual management fee.

The port continues to hand Asia as shown in the core staff offers the following key terms of the U, including the composed events.

This will result in immediate positive impact, say it's a $600,000 sample.

Two, new revenue sharing program and allowance for more events.

The proposed agreement aligns with the port's objectives to monitor financial conditions of its revenue generated assets.

New revenues from increasing the number of events allow patients to make up the things for the miscontinued less than the four staff recommended the fourth commission approve the attached resolution authorizing the executive director to enter into the proposed first amendments and management and fisher and authorized the executive director and forward to the first amendment to management agreement.

So the board of supervisors for approval and the final effectiveness of such a authorized director, and execute the first amendments to the management agreement.

Joined by the members of uh joined by Sophie Sylvestri and Peshaus, and Ian Lloyd and the Sultra, I'm available for any questions.

Thank you, Dominic.

Okay, do we have a motion to move this item?

Commissioners.

So moved.

Second.

It has been motioned and second.

Do we have any public comment in this room on this item?

I think you'll meet Commissioner is Sophie Sylvester, the patient group, good to CEO.

Good afternoon, good evening.

What time is it?

Director of Commercial and External Affairs for the Patient Group.

Founded in 1947.

It's hard to believe that our home company in San Francisco was almost a decade ago.

We live in Green Maritime.

We see that we need arrangement and then as an opportunity to continue to promote maritime while also having a unique and trusted relationship with non-plus Ultra.

They always leave the place better than they found it.

They provide opportunities for revenue when cargo volumes are down.

We always find a way to make our customers happy and have events go smoothly.

So this amendment has taken a while to get to this point, so I just wanted to thank staff, two executive directors and two maritime directors to get to this point.

Lots of red lines, lots of phone calls, lots of um meetings and emails, but um we're committed um as we always have been, and uh we we're happy to be here today to support this and appreciate your consideration of this item.

Thank you.

Is there any other public comment in the room on this item?

Is there any public comment on the phone?

We have no colors, thank you.

Okay.

Public comment is closed.

Commissioner McNeely, do you have questions on this item?

No, I I have no questions.

Thank you.

Commissioner Lee, do you have questions on this item?

No, I don't.

Commissioner Adams, do you have questions on this item?

I support it, and I I know George Pace, I know the old man, I know George Jr., the whole family.

And uh they're solid.

And uh and they also go into Aberdeen, Washington also with cars and stuff.

So I I understand kind of what you're up against and things like that.

And I'm so I'm a supporter.

Thanks.

Thank you.

Vice President Ellen, do you have questions or comments on this item?

Yeah, how um thank you for the presentation, Dominic.

How is this been uh I guess supported or received by the Southern Waterfront Advisory Committee?

Brought this to the Southern Advisory Committee.

Uh I don't remember any comments, uh, okay.

Okay, but general, I mean supported or and uh yeah, because I I think this is a this sounds like a win-win situation.

I just wanted to make sure community uh, you know, because I know how much time we spend with our advisory committees, and make sure that they've been involved in the dialogue.

Okay, um I support the item and have no questions, so commissioners.

And you and you did talk to Mike Villagani, right?

And local tent, are they good?

Because they're at the caucus this week, I was just up there, so I have just long as you run it.

As long as you run it past Mike, Dave, and uh Adrian.

Just want to make sure that I would have and Demetrius.

Okay.

Okay, it's an opportunity to sign up.

Yeah.

It was just one and no, thanks.

I mean, I would just encourage, I'm not don't I mean, I always try and look at things as a uh additive, like it's not just that it's not gonna negatively impact things, it's actually gonna grow uh business for uh local businesses, it's gonna create jobs, it creates revenue, it creates uh, you know.

So I just would would encourage us to talk that way because I think it's a it's a great program and it's exciting to see the innovation that's happening on our our waterfront, and thank you to the operators and uh uh to patient, our our partners.

Well now you spurred a question.

I actually now have a question, sorry.

Sorry, um, you said the operators for Patola Music Festival are here?

Yes, I have a.

Can you come to up to the eyes?

Thank you so much.

I I guess it just spurred a question.

You know, the Southern Waterfront is is something that we have a deep obligation to, and who historically, through contamination and other things, in my opinion, um, was not always thought of at this commission and at this diet.

So, someone who didn't want a couple of times, but myself through colleagues, you know, hiring onto show is city security or cleanup.

Do you have a local hiring program for people from the southeast sector of San Francisco?

I'm just curious if you're tied into that.

Yeah, absolutely.

So, in addition to portfolio, festival, we also operate the midway right there at the core of Michigan and Brent Street, and we produce local higher affairs, and we have a waterfront, and if we want to look, but also doing that, here in the market.

Thank you so much.

I appreciate that.

And so again, I think another thing too is besides the economically in between time and helping our great, you know, local business of Patia.

I think too, we should always uplift the economic opportunities for both the business owners and the community in the neighborhood.

So thank you.

Okay.

Now, commissioners, are we ready to vote?

All in favor of this item.

Aye.

No one's opposed.

Thank you.

Resolution 2633.

Thanks, Dominic.

What?

I said thank you.

2637 is adopted.

Okay, next item, please.

Item 13A is an informational presentation on the Port of San Francisco Blue Economy Initiative.

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

And by recognizing my support, England, the driving force behind this initiative, changing our position, intersection of technology and a working waterfront, and pushing us to figure out how we can do this system here in San Francisco.

This initiative is a continuation of the work of what's already when we're talking about the new economy.

We're referring specifically to the sustainable use of ocean, or in our case, maybe the economic, environmental, and community.

Our goal here is to identify early stage, under capitalized, and leverage port assets in the form of water for land.

Water access that we look for the ICTs and help these companies grow on scale.

We generate benefits and barbances themselves, and for course of long term performance.

This is intentionally in its early stages.

And to hear from community courses about how we shape this for the operative multiple.

We asked them to benchmark similar efforts at the ports of along the West Coast.

We ask momentum to take stock of our assets.

For how we leverage these resources and recommend an incremental rollout grounded and what other ports are we can be economy computer, West Coast have done.

Earlier, Wyatt talked about a perfect storm of bad conditions from the company office.

We have a perfect storm of the conditions to create what's here now.

City's 2026 climate action plan that was released last month by the Department of the Environment.

They added innovation as a core strategy, not just as a tool for the climate change, the economic team, so one of these one of our explicit goals is lowering barriers to employment, creating clearer pathways for companies to move from pilot.

So for the past ten years, we've been focused on the sustainability resilience.

It's a guiding priority in our strategic plan.

The purpose of the item today is to open the conversation about what a port-led blue economy program is to share with people in San Francisco.

It's a nexus of writing and ecosystem.

There's deep talent working in this space in the city on the waterfront.

There's a monthly blue tech, happy hour gathering at South Harbor, property.

They have a blue economy hackathon that we do last month.

The base is here.

And just based on that early word and word spreading about this initiative, I've gotten a lot of output and engage with you as company funders, the regional conference that wants to come here and talk about the economy work.

So that the momentum is real and the interest is strong.

And again, our goal today is to walk through the roadmap, begin the conversation, and then from there we want to come back in July with an action and next steps and a clear path forward.

To take us through the roadmap, I'd like to introduce Jennifer States.

Jennifer helped develop the maritime blue initiative up in Seattle, which you'll hear about shortly.

She's a city council person in Square, Washington.

She led momentum support maritime efforts and is now a senior technical director at GHD.

We work very closely and hope to continue to work together on this initiative, and I'll return to Radio's presentation.

Thank you, Boris.

And uh thank you, President Gilman, and the commissioners and Acting Director Martin for your time today.

I know it's late.

I uh I promise that my passion will carry through the presentation, and hopefully you'll feel the excitement that I share.

Can you put you in here today and talk about this exciting topic?

Uh I also want to thank Boris for the fabulous tour I got yesterday and the Port of San Francisco by both.

We bring the wind under waves and the sea spring.

Uh scraping off my glasses to be able to see the water prep here and the 7.5 miles.

Uh very diverse water prep, lots of opportunity.

The port is uniquely positioned to be a low economy initiative, and with this roadmap, we selected three other West Coast examples to help inform your efforts.

There are many different ways that ports can support these types of initiatives, but you are in the position of being able to leverage the experience of others to design what can work here.

But I want you to keep in mind that the evolution of these models have to take time.

So I'll start with the Port of San Diego, their Blue Economy Initiative launched, their incubator launched in 2016.

So it took 10 years for them to get to where they are today.

And I understand you have a history of partnering with San Diego, as well as your line focus on fishing, cruise, and tourism.

The port provides access to waterfront sites, permanent support, funding, and in-kind support, as well as partnership.

The pilot programs offer relevant solutions to the focus areas, they share the results of the pilots, and they share revenue.

The structure is based on their basic incentive model.

They have a four-stage contact process, including an initial screening, a deep dive review by board leadership and subject matter experts, an executive review, and a final board review.

The money they invest is patient capital versus the private capital that outside funding provides, which is very risk averse and innation.

There's been 13 projects to date with 2.95 million worth of return and then tracking over 5.8 million in outside funding.

Washington Maritime Blue is a nonprofit cluster organization that emerged from a state strategy for the Blue Economy.

It was charged to lead several different programmatic areas, including workforce development, joint innovation, and more.

Their maritime blue venture programming started with an innovation accelerator.

They refer to it as an MBA in a WAPS.

Recently they started an investment option via a simple agreement for equity investment or safe.

The incubator programs that they have are a place-based programs for founders that are willing to validate their technology for the market.

The newest launch is the One Ocean Accelerator, which provides a soft landing for global startups that are looking to the U.S.

market.

They had to build the regional ecosystem for this programming to really have its value.

Since its inception in 2018, we've entered graduates have raised over 450 million in follow-up capital.

I want to point out the picture up here that's a maritime launch event for the sea change, the hydrogen ferry that was built in my home port, Bellingham, Washington, and is now operating here in San Francisco.

The Maritime Innovation Center at the Port of Seattle has served as really the foundational division that set the stage for the maritime programming.

Starting all the way back in 2013 as a concept written in the former Governor Institute Jobs Plan, the Port Fund and Business Plan for the Maritime Innovation Center and Design Charot work began in parallel with the Washington State Department of Commerce's year-long strategy-driven stakeholder process that I was involved in leading.

That's called the State Strategy for the Blue Economy.

The Port of Seattle then decided to move forward simultaneously with supporting the venture programming for Maritime Blue, as well as the capital facility funding to build out the Maritime Innovation Center and eventually house Maritime Blue.

They chose the building built in 1914, the historic ship supply building.

It's currently being restored and modernized in the Living Building Challenge Certification.

This 15,000 square foot facility to be a mix of working and a med space and then set to open later this year.

Alt to see at the Port of LA is a research and engineering focused flue economy hub.

Alt to C serves as a model to provide license storage infrastructure and regional workforces.

The innovation campus, which consists of a 35-meter site, takes an ecosystem-based approach.

Instead of running a low economy incubator program, they leverage regional incubators and instead of hosting their own.

They have strong connections to outside funders, workforce pipeline development, and university connections.

They recommend a diversification of funding, and they emphasize in our interview that workforce and educational activities are often easier to fund with outside funding than the business and incubation services alone.

In conclusion, all three of these examples started very small.

They had a dedicated staff of two to three to begin with, and a champion that work to take that vision into an implementable path.

But all of these have taken at least 10 years to get to the point of where they are now.5 mile diverse waterfront, and its proximity to Silica Valley are all very unique.

The Bay Area represents one of the largest concentrations of climate investment and philanthropy.

However, Blue Economy Measures often struggle to attract capital due to limited access to real world testing environments, regulatory complexity, along commercialization timelines.

But this is where the court can help address these barriers by serving as a bridge between early stage companies and investors, by enabling the deployments, and a validation in a complex regulatory and operational environment.

The court can help transform early stage companies into investment ready opportunities.

So for the areas of focus, there are seven different areas here.

As I mentioned, I've seen the different assets and for about some of the different companies that are operating here.

But I want to provide a few examples that align with Missouri's focus of San Francisco, San Diego as well as our experience of maritime flu.

For seafood here in San Francisco, foodie fish, there's sensors on fishing here that work to help with retrieval of those boots.

For clean energy, a bolt safe in San Diego provides magnetic shore power connections that eliminates the risk of electrical shock and corrosion in marinas.

In my experience with Photon Marine and Silverback Marine, they were both maritime blue companies that partnered together and are now building zero emission electric vessels.

For Bay Health, there's Leaf Jen here in San Francisco, creating robots to rebuild leaks and plant seagrass.

In digital transformation, there are many, many different examples.

Maritime Blue supported a joint innovation project or a 5G network at the Port of Tacoma that essentially serves as a digital incubator for companies that want to test their digital technologies.

Forrest mentioned so far ocean, they have a Pier 24 lease and a buoy that's at the Ferry Terminal.

They provide private ocean sensing, which is essential now that we're seeing that the federal system of ocean sensing is removed.

And then workforce development, Washington Maritime Blue hosted through their accelerator program a nonprofit called Sea Ahead that provides experiential authority to expose youth women and community of color to water and its associated opportunities.

Maritime Blue also runs a new maritime collaborative that has since been expanded to include paid internships and equity training for employers to be able to support protection.

Underlying all of these is the ecosystem of private partners, funders, educational systems, workforce development entities, permanent, and funding agencies all coming together to collaborate and advance these initiatives.

For the Port of San Francisco, its ability to support low economy initiative rests not only with the regional market opportunity, but also the unique set of assets that the port already controls and means or influences.

Taken together, these advantages give the port a practical foundation for attracting pilot projects, supporting early stage companies, and connecting market opportunities through a waterfront employment.

Firms want to focus on their businesses.

These are often very small firms, sometimes one-person startups with engineers and scientists that have great ideas, but they really can't afford to get tied up with roadblocks.

And that is where the court can be there to help them be successful by navigating the challenges.

Through access and leasing, through regulatory support, through de risky for investment, and through partnerships, the port can help overcome these roadblocks.

For recommendations, we have taken a phase approach that mirrors San Diego's evolution while also building towards a maritime rate and all this style model.

For phase one, years one through three, the board launches a lean internally managed program with a port employee serving as a program administrator, and here is someone already invented in real estate or planning who can help navigate the internal processes without a learning current.

The commission can adopt a resolution that establishes the program and governance framework, and we recommend adopting the San Diego's four stake intake process, but adapt it for San Francisco's lease and forgetting context.

Targeting three transactions by the end of 2027 serves as a good milestone by leveraging core property to meet the triple bottom line, as we mentioned, economy, environment, and equity.

And this translates into bringing the entities onto core properties, doing loose contract agreements or other supports that's as demonstrations and need and water testing.

The goal of phase one is proof of concept and institutional learning, but not yet scale.

You're building the intake process, the legal templates, the regulatory leads on muscle, and the internal political support that a larger program will need.

You're also getting the lay of the land in terms of an ecosystem that needs to be built out and identifying what gaps exist where court support can be.

Phase two, years uh three through five.

Once you establish this track record, build towards a permanent home.

You can identify a portrait that we can use and then you can do a class site.

Ideally, something with water access, successful maritime infrastructure, and enough square footage to enable both shared lab and off space.

Simultaneously work towards uh external partnership and funding the architect.

Building the ecosystem really is critical.

This is necessary for connecting the dots between startups with ideas, establishing industry players with challenges that need to be addressed, and the potential funders in both the public and the private sector.

Funders are needed for the initiative operations as well as the startup investments.

So cast a wide net in terms of your approach for funding, include foundations, fental agencies, state programs, as well as private capital.

Aligning the different types with their interest is a constantly moving part.

So a diversity of the programming and in the startup company focused areas helps to keep those options open.

And finally, you can then start to uh recruit that external nonprofit to be an anchor institution to serve as the future program administrator.

And then in the final phase, uh the external administrator can take over the day-to-day program management, the port's full shift to landlord, and regulatory liaison and governance partner, and the physical site becomes a shared campus with wet space, dock access co-working administration.

But the port retains its commission level oversight through a formal operating agreement with that external entity.

San Diego proves you can do this with port staff and the core governance model.

Maritime Blue and Alta C proves that the scale and durability require external entities with its own budget and capacity and institutional identity.

And the sequencing above lets you deverse the model internally first and build that political and financial case and hand off operations with programming has enough momentum to attract an external partner, and we're talking and I'll turn it over to the so as Jennifer mentioned.

San Diego has been added to their aquaculture program for 10 years to 10 years to be sure.

So none of this happened overnight.

And I'm promising that it'll happen here in that fashion.

But we're fortunate to have these models to learn from multiple tours.

And in the first two years, it's just about building the foundation of the relationships, pilot transaction, legal, and operational framework that makes everything else possible.

And authorizes early stage VC incentives, whether they take the form of production, return and for these accommodation of the two tailored to support the economy firmly.

It gives us in the right direction.

This is a good beginning of a long-range journey.

We're really excited about it, we'll be part of it.

And uh, work with the commission.

And concluding, I think, uh personal salvium.

They're working on the report, Jennifer, and I are available to answer any questions.

Thank you, Boris.

So before we get to commissioner conversation, I'd like to check and see if there's any public comment in the room on this item.

Please make your way up, sir.

Okay.

Good morning, Commissioner.

Uh, my name is James Bachmar.

I'm the founder of Blue Fish, or a local technology startup.

Uh, my co-founder and I operate this uh salmon controller out of the high street hardware, but after growing tired of losing recreational crowdfots outside the Golden gate, we know it's a low-cost, low power, GPS quote, could help operators find their currency.

We didn't realize at the time how important gear innovation would become to sustaining and sometimes reopening local fisheries.

Or how popular the problem is, but it's ignorant.

And also unfortunately, it's their protective whale species with verticalized water column.

So thank you for putting this forward.

It's the right time and the right idea.

You wrote back makes a sharp observation that Blue Economy Ventures struggle now for lack of innovation with the board technical institution because capital C is regulatory complexity and no real world test graph and walks twice.

The board is uniquely able to be risk-based.

We've deployed more than 270 buoys.

A San Francisco company innovating everywhere in San Francisco.

A program like this changes technology for companies like ours and turns the bay into a place where homegrown solutions can get their first real shop.

So we're excited.

I'm happy to help in any way I can.

Thank you.

Thank you.

Thank you for all that you do.

Are there any other public comment in the room?

Hi.

So I was excited to see this initiative from San Francisco.

So I just want to briefly state my support.

I'm also curious to see how the initiative prioritizes in the early stages and what types of businesses and areas of focus and focuses on in order to gain momentum and feasibility versus for long-term sustainability and maintaining that ecosystem.

Thank you.

Thank you for your enthusiasm.

Is there any other public comment in the room?

Do we have any public comment on the fact?

We have no colors.

Thank you.

So public comment is closed.

Commissioner Lee.

My question and my focus really is on the crab pots tracking.

I mean, if we're going to do this and allocate uh resources or even um questions.

Sorry.

Well, I uh might have a question.

It's not so any public comment on a topic.

This topic wasn't we can ask for an informational on this item.

Okay.

Well, anyway, ask him to come back.

Um what I would like to see is more work or at least progress on helping the fishermen.

You know, when we get delayed on the crab season, only because of the whales and things like that, and we keep pushing it back, pushing it back.

And then I know that there's been some development with the tracking.

I, you know, I like to get some updates if we're gonna continue uh working on that because you know it's it's not only just uh protecting the fish and I mean and the whales, and it's also the economy.

And if the port is gonna um kind of invest in it, we got to invest in our fishermen or we're gonna lose them.

So I think I would love as we progress and we move forward if we're gonna allocate, I like to know progress on how technology is helping the fishermen.

So right now I have you know, I I'll see what's on the news.

You know, I see, oh yeah, we're testing this, but I don't really uh, you know, haven't seen any really reports on follow-ups on success stories or um or trial and error, things like that.

So that's my my wish for blue blue economy.

Well, I would uh come back with another example that I'm aware of, uh, and support that's happening with Washington and Blue, and that's what we've got.

This terminal and uh idea of the American Innovation Center, they're actually designed character, they said it started with a fisherman walks into the building of the challenge that we solve, looking for ideas for how to solve that problem with the pool.

And that's really what they designed to center in a lot of emerging routes.

Uh one specific example I know of that I'm excited to talk to you about is uh there's an education that's called a natural problem that has worked with the fishing community to take the uh left over that here and think you might have waste to recycle them, and so trying to find a way to help the fishing community deal with the derived here once it can be retreat.

So making a partnership between two entities like that where they can work together to help the mission community solve the challenge, it's just one of the ways that this ecosystem-based approach can really help enable that environment going forward.

So it's finding innovators connected to what the challenges the industry, the standing industry has, and then finding a way to help them forwards that we demonstrated and make those kinds of happening.

So just an example I'm aware of related to your question.

Um, so you know it's a it's a way to help you help connect the docs, it's also right I think uh for me I'm more looking at the sales aspect.

So I mean, fixing, I mean, recycling nets means they're out of business.

I'm looking for more where I also have some sustainable fishing um uh product examples.

Uh there's uh a company that uses a fish-based product that's just making charones, and they're now selling them uh to the mariners, and that came out of the maritime blue accelerator program, so finding more fish product, access to this numbers, there's all sorts of different ways that uh give examples, but okay.

Yeah, the idea is that we have to build that ecosystem and identify what those challenges are and then connect the positive.

Well, just on the offset, crab seasons are biggest thing here, and when it gets postponed one month, two months, I like to one day say we can open crab season on the day, and because we have new technology to do that, but we don't right now.

So, those challenges and help show the environmental side, but you're not sure.

Yeah, I mean, we'll all have to work together, but on the sales side, I'm working on uh you know, I look at the people that don't get a paycheck every two weeks.

So I'm just hoping somebody steps up with innovation that will help that.

Thank you.

So um, we need to pause for a second because I believe we did have somewhere for public comment, but we had technical difficulties, so we're gonna hear that public comment right now.

They may be having technical difficulties.

Collar, if you can hear and you want to speak on this item, please style star three to raise your hand, and we can unmute your line.

We'll give you a minute.

Okay, they're not raising their hand.

Okay, thank you for that clarification.

Um, and just for a qualifying measure, because we didn't want to be rude.

Um, the topic is is the is the blue economy and innovation, but we are absolutely interested in the public commenter and what you had to say, and I'm sure we'll ask for the speech and informational item in the future.

We weren't trying to be disrespectful to you.

It's just the rules um of engagement here, so um commissioner McNeely.

Sure, thank you, Madam Chair.

Um, I think this is great, and I think that uh, you know, we sit here in San Francisco, the center, the epicenter of technology, and we've we spent uh the great part of this afternoon talking about resiliency, about our maritime industry, about our fishing industry, and I'm delighted to see the possible marriage of that of the technology that we have around us, the the aptitude for innovation come together to solve some of these solutions, and uh San Francisco should definitely be right there with these other port cities uh and uh innovating and leading the way.

So I support you and uh uh look forward to hearing more about it.

Thank you, Commissioner Adams.

Vice President Emblem and Boris and Jennifer, thank you.

And Stephen, thank you for pushing this thing, Boris.

Jennifer, thank you for coming up from uh Bellingham, Washington.

I'm out of Tacoma, Washington.

Um, I knew what you were talking about when you talked about Governor Jay Anthony.

I've known Jay a long time, and he did it back in the day.

Jay has always been an environmentalist, and I know Governor Bob Ferguson for a long time, and I'm hoping Bob is continuing.

You mentioned um Seattle with Tacoma, I'm at Tacoma.

Have you talked to is the Seaport Alliance involved in any of this and John Wolf?

And then also, how about the tribes up in Washington State?

Because the tribes are very active in Washington State, and I thought this would be something that the tribes, especially me being out the common P.

Olive tribes, the Mocushoe tribes and stuff like that, they they seem to be really progressive.

So can you touch on that, please?

Yes, uh the Seaport Alliance and the Port of Colorado, or the founding membership of Western Maritime Blue and the way that the state strategy for the blue economy happened.

Uh Governor Isley actually formed the steering committee of appointed representatives, and one of those representatives was from the tribe committee uh and making sure that uh the tribe has seen at the table of the original organizing structure of the economy strategy to help really set the pace of where this was going and what was doing.

Uh I know that they were trying to work on a specific tribal project, uh related to some electrification of private fishing vessels.

I understand it's really aquaculture based uh fishing vessels where they're trying to figure out a way to electrify the vessels, and that's uh a maritime project.

Uh so there's some different specific tribal activities that they're engaged with, as well as one of the other program areas is uh they've got the white sound program, which works to reduce uh uh the noise and an impact on the Southern Reservicular whales that work is there.

Right.

So they have voluntary slowdowns, but they've done a partnership with the maritime industry.

Um and in one and the there are several different tribes that sit on the governing committee of that uh quite south programming in making sure to put that structure together in the right way.

So yes, there's a lot of a lot of tribal involvement and over to the public system.

Definitely included Seattle Tacoma and that uh 5G innovation project that I mentioned as well, is located at the Port of Tacoma and being done in collaboration there, and now the incubator program is it's also located in Tacoma region to try and help support that.

So I have a Seattle hub to begin with, but they'd like to talk about a hub its boat model where they continue to grow that spoke across not only Washington, they even dropped their title Washington maritime loss if we're trying to be more regionally focused as well.

Are you getting support from our my two female senators up there, uh Senator Murray and Senator Cantwell?

And I know Maria and Patty both are big in this stuff.

And hopefully in the future, we'll see some federal funding.

There's been some uh cluster program funding that was proposed by them, and some new innovation cluster funding, uh that type of funding would be the exact type of thing that the side of this area program you can take advantage of, and that's how they coming from the camp well and hurray um understanding this maritime initiative and what kind of power is brought to the to the state and attracting a lot of different economics opportunities.

You guys are way down the line on this.

This is really big up there.

Thank you for coming, appreciate it.

Thank you.

E emblem.

Um well thank you.

Uh um Boris and Jennifer for the presentation and to everybody else who's worked on this um in the past couple months.

It's amazing how much progress we've made.

And I know behind the scenes there's a lot of other momentum going on.

I think that this is represents a really important opportunity for us because it is at the intersection of everything, our all of our core responsibilities.

So maritime commerce, economic development, workforce opportunity, uh climate resilience, uh sustainable tourism.

I also see this as a really powerful um expression of the Burton Act.

Um, and and I you know, I think we we often think about the Burton Act as protecting maritime interests, but I I really think like a uh a great way to pay homage to the the thought that went into establishing that is that we are pivoting to projecting for future strength, that we're making sure that our waterfront is living up to our public trust.

And and I think this does everything that we do, and and um you know, um Commissioner McNeely mentioned I you know I think that one thing that I'm really excited about hearing this presentation is A, we've done our homework, we're we're not thinking that we're starting this on our on our own.

We're you know, we're we're 10 years.

I I don't want to say we're behind because like uh the the story that our um entrepreneur told us today, thank you for that.

But I was also struck by other examples we heard along the the journey the past couple months about companies that are still here based in Dog Patch but had to go to San Diego to do their testing.

You know, that's a wake up call for us.

You know, we we we we want to, but we're also it's not uh us versus San Diego it's not us versus LA it's not us versus Seattle there's there's we I would I think we want to be an important hub in this whole global network of ports working on this because it's a huge it it's not us alone and it's also so I think what is our role in this and we are I I keep thinking that there's something that the fact that we're the global hub of AI and BC and technology and it that really strikes a chord with our partners in in Los Angeles and uh San Diego they're very interested in that um I I also think it's really important that we work with our partners in the city family that um so um our I was glad to hear bars you started out with you know that we have a um you know we have our clean economy roadmap um and I think that this is a pivotal that the waterfront is part of everybody's the foreground of our thinking that that you know VC right now you know we have open AI just signed a lease at uh in um um mission rock right so I think uh having um AI companies really uh think about how they can help us with our our job creation or all of those things so I'm just super enthusiastic I really um very thankful for everybody's support and I can't wait to see where we go from here.

Thank you.

Um the team just thank you so much for it um I think really it shows again the alliance around the West Coast ports which we see in our advocacies at AAPA and other venues particularly in this tough federal environment so again really want to echo everything that we keep emblem said this is a really important initiative and I think as we progress and as we grow we can do more in reach to Commissioner Lee's point to the Fisher community which I think is so sometimes so caught up in day to day activities and excited about things like selling off the boat or a pop-up fish stand that they don't have time to sometimes come up here and do strategic at 360 of where that industry is going for the next generation along with all the other innovation that we spoke about and you know wouldn't be amazing um a decade maybe two decades from now to have a company that is flourishing and on the forefront see I got my start from the investment the co-investment and um partnership I got from the port of San Francisco so very excited for this item and we are excited to hear more and on that Jenica next item please item 14 is new business commissioners I've recorded a couple of items one is um to to um work to partner with human rights commission and the office of transgender initiatives to cultivate uh stories uh of of the past and the way the LGBTQ plus community has lifted up the port um so we'll definitely work on that if if only uh just to prepare for next uh Pride month and to be able to share some of those stories as well um also uh commissioner adams request to um share the transcript comments with Andre Coleman from from our testimonials to him is there any other new new business excuse me commissioner any other new business motion to adjourn madam chairman would be in order okay do we have a second second all in favor we're adjourned at 6 28 p.m.