long as megan's worst case doesn't come to pass, i think the answer is yes. then i wanted to answer, i think you were asking could the existing tenants expand operations. they are on smaller sites than this site. they have made, you know, significant improvements to their sites to be able to maximize capacity but i'm not sure that given the footprint of leasing that they have that they are able to significantly expand output from those lease premises. >> but they could >> last question i have in terms of just general timing so once we select a potential tenant there, roughly how long do you think it's going to take for them to get their facility up and running? >> i wish i had mark losavoy

here, who actually managed this process. the city was wanting to build out mission bay, the two big concrete batching facilities in the city were in mission bay, needed to be relocated, came to port property actually without s in that case because they were maritime leases. and i don't know what --. >> it took a while. they took a while to build out their footprints. >> do the design, i would imagine it's a couple of years from start to finish. >> it's hard to say because i don't think they had an incentive to move quickly at that point in time. but they took about two years. >> and part of that may have been driven by the environmental review and --. >> yeah. >> we've consulted with the planning department and we do have the waterfront supplemental environmental impact report. i think the early read is that we may be able to tier off of that prior environmental work for this

project, that it was the type of use that was contemplated. so i'm not sure that the timeline for the older project is applicable here. >> i would make one last comment. i was glad to hear you say that the city and the mayor has put 50 to 60 million dollars aside to repair roads in the city because i think, besides traffic congestion, i think the other issue that people, as residents, talk about is the number of potholes in the city. it's nice to know that there's going to be a systematic plan to address because it is becoming a much more of a city-wide issue. the condition of the roads is just not in good shape. >> agreed and that's what's driving sf public works' decision making. >> so is there a motion? motion to approve. >> second. >> all in favor? opposed? so

that authorization moves forward. thank you very much. >> item 14b, informational presentation regarding lease l1042 and various settlement agreements with sinbas inc.. >> good afternoon, commissioners, my name is elsa lamb, i'm property manager with the wave. it was subsequently converted into a restaurant by sinbad's. the port entered into a lease with sinbad's for them to operate a first class restaurant and lounge and that was back in october of 1980. it was originally a 20-year

term which expired in september 30, 2000, and has been on a month to month hold overtenancy ever since. in conjunction with the restaurant sinbad has parking for its patrons. sinbad currently pays 222,500 annually exclusive of the restaurant and the parking. the amount also represents the base rent only. sinbad's reported $2 million in annual gross sales for the 12 month period ending september 2014 which is lower than other port restaurants and that is based on the dollars per square foot in income generated from the restaurant. throughout much of the 31 year

period, the percentage gross receipts have rarely exceeded the monthly minimum rent due to the port so the port has not received any payment from sinbad's above the minimum base rent since approximately 1988. sinbad's has not been a tenant in good standing because it's frequently been in default of its lease for failure to pay rent. in the past 10 years the port has issued 10 separate notices to sinbad's for notices of default for either nonpayment for for nonsufficient funds to support the payment, the rent payments. sinbad's has been a habitual late payer. the port has over the years tried to come up with different payment plans, we have worked with them in order to get them current and beginning in 2008 and continuing to present. sinbad's has been required to

make rent payments using cashier's checks. in 2012 they ohed the city $212,000 which was equivalent of 10 months back due rent and that was subject to the agreement that brad will talk to you about later. sinbad's has also deferred repairs to their sewers which has caused problems through the years. some have been simple repairs and others have required the department of public health to shut the restaurant down. in the last 6 years the city has had to report 5 sewer leaks to the state of california, one as recently at january 29, 2015, and all were eventually repaired by sinbad the removal of pier 2 by the march 25 date is called out in

important documents and that's the bay conservation development permit and also the downtown san francisco ferry terminal expansion project, which is the downtown terminal project for the ferry. in 1974 the bcdc adopted a san francisco special area plan and that's to provide bayview to embarcadero and also provide public access and open space. it's been amended over time but in particular it was also amended in 2012 which in part addressed the 34th mesh's cup. the 2012 amendment also called out specifically march 2015 as a date it wanted to see the structure on pier 2 removed. bcdc also issued a permit for the america's cup authority granting use of various properties along the waterfront and in order to mitigate the

impacts to the uses of those properties, the permit required, among other things, that the sinbad restaurant located at pier 2 be removed by march 2015. delays in the removal of pier 2 may result in penalties of $30,000 per violation. the second document is a downtown san francisco ferry terminal expansion project which is a project being developed by weida, which is the san francisco bay water emergency bay transportation agency and they are the public agency tasked with expanding ferry service in san francisco bay. the project includes 3 ferry terminals, one of which is scheduled to be at pier 2. the project is critical because it addresses the need to offer an area for a major catastrophic event should one occur in the city, the 3

terminals will be there, the lagoon is also being proposed to be covered so that way it could have an area for queuing and a covered area from weather and elements. in its october 2nd, 2014 meeting the board of directors certified the environmental impact report for the downtown project, which referenced the vacation of removal of the building on pier 2 by march 2015. construction is estimated to begin the spring of 2016 and will conclude in the summer of 2017. i'm going to turn the mic over to brad benson to cover the 2012 settlement agreement. >> thank you, elsa, brad benson, director of special projects. it is part of the discussion with bcdc, port staff and sinbad's negotiated a

settlement agreement. at the time sinbad's was $220,065 in arears in rent, plus interest and late fees. as an incentive for sinbad's to vacate pier 2 by december 31st, 2014, the port credited sinbad's with 4 months of back rent equaling $85,305. the settlement agreement required sinbad's to pay the port in 24 equal payments its back rent with interest in a combined amount of $141,498 vacate pier 2 by december 31st and waive any claims including claims for relocation benefits. the port entered that settlement agreement in good faith reliance on sinbad's representation that it would vacate the premises by the end

of 2014. in june of 2014 sinbad's approached the port to request an extension of the vacation of its premises from the end of december, 2014 to an unspecified date which would be tieed to wida's construction schedule for the downtown terminal project. mid-december director moyer executed an extension agreement in consultation with the city attorney based on the port commission's prior delegation that granted a one-time extension to vacate pier 2 until march 21, 2015. sinbad's accepted the extension and represented sinbad acknowledges there will be no further extension regardless of whether the ferry project is delayed. sinbad approached the port

with another extension request tieed to the wida project. just a brief next steps. because of the requirements of the bcdc special area plan and the companion permit, port staff is formulating plans for the building disposal and removal. there was a characterization of the asbestos and lead in the facility. staff is working with san francisco public works in their as-needed pool to contract for the removal of the restaurant. the estimated cost of that is $110,000. additionally, the office of economic and work force development, we recognize that this is going to cause displacement of a tenant and may impact the employees of that tenant. the office of economic and work force development has services to help people facing layoffs,

they have a rapid response program that helps people tap into benefits, job training, i know they are also available to help sinbad's to help scout other locations for the business. that concludes my report and we are available to answer any questions you may have. >> thank you. public comment? we have fred naranjo tom stinson and jack stinson. i'm not sure what order you'll want to come up. >> my name is fred naranjo and i'm an insurance broker here, i insure about 800 companies here in san francisco and sinbad happens to be one of them. i am not familiar with all the particular that is have just

been discussed. i think the owners could address that. i'm here for one reason and this is kind of like my core value. i appreciate that they talk about economic development and all of this. sinbad has been a union shop for almost 30 years. the people that work there are immigrants, chinese, spanish, that speak very little english. those are the core employees that work at sinbad's, there are about 40 employees. my concern, i've gotten to know these employees over the years and my main concern is i have spoken to the owners of sinbad's and what are they going to do and they are telling me that they have an opportunity to maybe relocate, find a new location, they just need time in order to be able to find a new location to move those employees to that new location. i appreciate economic development and all of that but the average age of those employees are 55 years old and

above and they are scared as hell and why this is very touchy to my core value is i remember my father working at the m and m cafe here in market street as a fry order cook. they closed down lost their lease, and thank god that i was working and i was able to support my family and take care of them. so what i'm saying that's really important here, this is a union shop, they have always been a union shop, and they care about their employees and i checked to see if it's real because i would embarrass myself to come in front of this board, i happen to know a lot of you and a lot of you people on this board come from humble beginnings and are successful and thriving today. so what i'm saying, basically, if there's a way to allow these people to stay for a while until they find a new location i think it's the prudent thing to do it is my understanding that they shall going to start

construction or demolition until 2016 and i say that if they are not doing this you evict them. but i know the commitment and i've been checking out some of the investor groups and people they are talking to that they may have a viable business and an opportunity to have a smooth transition for those employees. so i just want you to think about those people that have a lot of fear that they're going to lose their houses, their job no medical care, and i appreciate economic development but this is a class of people like i believe commissioner adams, commissioner willie -- i forgot your last name, i can't see the name here. but you understand this more because you are a union person, as you said, you work for the working class people, you are a working class people and i ask you if there is something that can be

done here i would be very appreciative. thank you. >> thank you, next speaker. >> hi mime tom stinson. commissioners and staff, thank you for allowing sinbad's to be here. 40 years back sorry row magnum, harry bridges were among the early authors of our existence. south of the ferry building was not the place it is now due to yours and those preceding you with a great vision for the future. the story of our history has many forebearances, however. first let me point out that prior to the loma prieta earthquake, sinbad's was one of the stars of the waterfront.

it was alive, very successful and doing quite well. many things then came there afterwards causing much trouble to us. the sewer that was built for the street, on the street, the underground muni metro line came about, the earthquake brought down the freeway, the construction of it, these things really damaged and inhibited our operation, denied patronage to us in many different wais, automobiles, foot traffic and so on and so forth. yes, we've faced declining sales and it was difficult and very foreboding on us. we are asking you not to look at this history but look at the most current history of the last two years in which we lived up to the agreement in its fullness

and in its honesty. we think that a little bit of time that we're asking for to find a new place, to keep staff on board, to keep these employees productive, off the welfare units, and even for myself as well the same thing would hold true. in the past we have had wonderful people we worked with, were frequent customers, walter johnson, who is no longer among us, david brower was a frequent -- he even mentioned us on the morning show. these things were part of our history as well and the port's history. so we very much would appreciate you looking at the situation we're in the circumstances that brought us here, we're not pulling any camel in the tent operation here, we're here just for a

good mission and a sole purpose to put before you. thank you very much for your time. >> thank you. next speaker. >> dear commissioners, my name is dwayne stinson. we come here in peace, friendship and once again to slis olicit for your support. allow me to provide you additional information on the history of sinbad's. sinbad's gross sales in the central area which were categorized in the rent receipt report that is distributed, if you look at table 1, i want to make sure first of all does everybody have one of these sheets? okay, you look at table 1, sinbad's is higher than most of the other 7 restaurants in our designated area. we ranked third with golden bear, mission rock and the ramp as highest.

our minimum rent of $21,923 a month is already very high. the highest in our area and the third highest compared to all waterfront restaurants, even including fisherman's wharf. in terms of total rent we paid more than other restaurants. we are the second highest of the 8 restaurants in our category. the total revenues we gave to the port were significantly high being the third highest compared to the rest. bottom line, sinbad's is a good revenue producer to the port. the economic collapse in 2008 is another hardship we had to endure as many other port tenants experienced as well. we don't want to be like our neighbor, i hate to mention other things but like ferry

plaza, gabiano's, dim sum, all six failed and closed. this demonstrated how we persevered while others failed. we are a good tenant. we survived, we have been surviving on a month to month lease since the year 2000 that prevented us from doing major improvements in our restaurant like most other restaurants were able to do because they had longer term leases. sales could have been much much better with a longer term lease. i'd like to point out since the 2012 agreement we paid all our rent on time, plus back rents on time, never missing any payment. since then sinbad's has been a good tenant in good standing. we had some forebearances, as my -- tom mentioned here before, there was -- just imagine for 10 years there was a freeway going down the front of our restaurant, there was a muni

metro underground going down the front of our restaurant, there was the sewer system going down. 10, 11 years that happened in front of our restaurant. many other -- other restaurants didn't have the difficulty we had with that happening in front of them. that was just an isolated situation. okay since i'm running out of time, i'd like to say that sinbad's and the port, we've always had that understanding that sinbad's would stay until the wida project commences. we will step aside when wida needs our space and we won't ask for any more. we just want time to find a new location, keep jobs to our hard-working union employees. many of them are chinese immigrants who have been with sinbad's for many years, being 65 years and older. thank you very much and thank you. >> thank you. next speaker.

>> dear commissioners, i am a cook at sinbad's for 38 year. i don't know if you remember but i spoke here at your meeting last month and i thought to myself, okay, (inaudible) support you. they tell us, you would talk about it at your meeting today. i am afraid you will get tired of listening it me as i repeat my request to you. but i have responsibility to my fellow

employee, respective families. so i beg you understand our life and our futures are sick. many of the employees at sinbad's are all like me. in the kitchen there are 12 employees and all of us are chinese. i would like to tell you how proud i am because they are really good worker, reliable and hard-working, most hardly understanding or speak english. it would be difficult for us to find another job because of our age and language difficulties. many of us still have dependent children who are in school and most of us are still paying for our homes.

two of my co-employees have a health issue. they are dependent on sinbad's health plan. if sinbad's will close, what happens to them? all of us, we are helpless. please allow us (inaudible) none of us will be displaced or in hardship. please please thank you. thank you very much. >> thank you. any other public comment? seeing none public comment is closed. . >> i have a couple questions and i guess i'm a little confused. we had a settlement

that was signed in 2012 that indicated that they would be moving and i guess i'm just wondering why there wasn't an effort to look for a new location starting back then. were they notified that that was going to be at issue? >> so i can't speak to their efforts to find a new site in that period of time. i know when we negotiated the lease, that settlement agreement we were basically dealing with their exit from the wida project and coming up with a fixed date. you know, i certainly encouraged, they asked about other locations on port property, i said that we didn't have those available and that they are typically competitively . i know in this more recent extension i

suggested that the city through oewd could help with relocation efforts. i know they stand ready to do that today. so i hope that answers your question. >> and then i guess in the more recent settlement, they then came back i guess 10 days later, were they advised that they had no other option but to sign the first settlement? i guess i'm a little confused on the timing there. >> so their request for this more recent extension was a similar request to what you heard today, which was to be able to stay through the wida project. the problem that we faced and frankly bcdc faced is that the requirement for the port to remove the building is in bcdc's special area plan,

which is, it's actually not so much a planning document as a regulation and it takes up to six months or more to amend bcdc's plan. so it was really through the creative thinking of bcdc that we came up with the idea of extending through march 21st to get as close to that deadline as possible. we tried to convey that that really was a firm deadline. i think it was not what they wanted, as you are hearing tonight. so we tried to be as clear as possible. >> and then the demolition is set to take place in 2016? what's the time frame in terms of steps that have to be taken. >> the port is obligated under the special area plan to remove the building that houses the restaurant by march 31st, 2015. so a little over a month from

now. at this point, the way it agreement is set up, we'd really be able to get started on that demolition work and not really complete it in time. but hopefully thereby avoid fines from bcdc because we'd be in progress in terms of fulfilling the requirement. the wida project, my best understanding is that they are planning on starting construction in this area in spring of 2016 so there is a period of time in which it would just be a pier after we completed the demolition and wida came in and did their work. >> so what's the process, i'm sorry, for us to i guess go out to for someone to complete, to start the demolition? taking a step back. so if they are