opening and a wonderful learning >> item 1 is roll call. president adams. >> yes. >> brandon. >> here. >> john burton will be absent. >> gilman. >> present. >> the san francisco port commission acknowledge we are in the unseated homeland of the alone. as the indigenous stewards of the land and accordance with the traditions never seated lost nor forgotten their responsibilities of the care takers of this place and all people who reside in their

territory we recognize we benefit and working on their homeland and wish to pay respect by acknowledging ancest relative (inaudible) sovereign rights as first people. approval of minutes for june 14, 2022 port commission meeting. >> motion. >> second. >> there is a motion to approve the minutes and second. motion and second, all in favor say aye. opposed? motion passes unanimously the minutes of the june 14, 2022 meeting are adopted. >> public comment on executive session. >> we would take public comment on the executive session. is there any public comment in the room? seeing none, genna will provide instructions for remote participants. >> thank you president adams. at this time we will open the queue for anyone on the phone for would like to make public comment on executive session.

please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others wait on mute until the line is open. comments are limited 3 minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. at thes time, there are no members of the public on the phone wishing to make public comment. >> thank you. public comment is closed. >> item 4 is closed session. there are two executive iletms 1 pub leck employee evaluation (inaudible) >> so moved. >> second. >> commissioners i have a motion and second to go in closed session and invoke attorney client privilege with legal council. all in favor

>> reconvene in open session. commissioners, may i have a motion not to discuss the closed session discussions. >> motion. >> second. >> all those in favor, we are now m open session. >> item 6, pledge of allegiance. i pledge allegiance to the flag

of the united states of america, and to the republic for which it stands, one nation, under god, invisible, with liberty and justice for all. .item 7 is announcements. please be advised that a member of the public has up to three minutes to make pertinent public items before the commission adopts any item. it must be with respect to the current item. they'll take into consideration public comment attending. and remote second. enter ak es code 34923009-pound. our moderator will ininstruct you to dial *3 when it's your

turn. there is a short broadcasting can dray. do not miss your chance to comment. please dial in when the item you want to comment on is announced and mute your device can listen from your telephone which has no delay and that brings us to item 8 or items not listed on the agenda. >> we'll take public comment on any item not listed on the agenda. is there any public comment in the room? seeing none, jena will provide strukdzs now for remote participants p thank you president adams. at this time, we'll open the queue for anyone on the phone who would like to make public comments on items not listed on the agenda. please dial *3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until

their line is open. comments will be limited to three minutes per person. the queue is now open. dial *3 if you wish to make public comment. at that time there are to members of the public on the phone wishing to make public comment. >> thank you, jen. public comment is closed. next item please. >> 9-a is the executive director's report. >> imoorch president brandon. i'm sorry kp president adams. vice president brandon. i'm elaine forbes. i would like to congratulate our reappointed commissioner. mr. dams and gale gillman and stephen lee's appointment is at the board of supervisors with the recommendation this afternoon. we suspect he will be approved this afternoon and we look

forward to working with him as well.#$7ñ although june ended with very, very difficult and troubling news, heart breaking news from washington d.c., i hope we all share fried live in a city and a state who will lead to protect in human and women's rights. i want to recognize a really amazing interdivisional team that worked together hard behind the scenes to prepare for a safe fourth of july fireworks sell brings on the waterfront ask it was fantastic. we're having a very exciting summer. last month's pride and juneteenth celebrations. golden state warriors win and great weather is very invigorating. there are many people at the waterfront and it feels pre-pandemic. we've had thousands of people at our waterfront in numbers inspiring. i know we'll see robust sales

ask that will result in higher rents to our organization. we'll have more information this fall. and we continue to offer one of a kind waterfront experiences to remind everyone living in san francisco to come down to the waterfront and now we have salmon. the recreational salmon season is in full swing. it's a great time to get out on the bay and try your luck with a commercial fisher and we're selling salmon off the boats. the public can purchase salmon at pier 45 and fisherman's wharf. we hear the salmon are beautiful fish and there are many. we're ending the fiscal year on june 30th and looking back we have accomplished a lot. we managed and maintaining our waterfront for tenants and visitors.

we welcomed 56 cruise vessels. we're well on our way to a record number of calls this year. we've had more vessels arrive this year than in 20 and 2021 combined. we're moving our development projects forward with our partners and the community and paving our way for exciting leasing opportunities. you'll hear more about that on the agenda today. this will bring new and vital energy to the embarcadero and at pier 1 at the ferry building. we're starting to close our year end budget. the results are not in, but staff productses that we'll expeeld our budgeted revenues by 10 to 20%. this is great news and we're not out of woods yet. we're working hard with our state colleagues to ensure economic recovery to our city port and to get capital

investment in our piers. thank yous to willie adams and senator burton to attract needed investment in our facilities to speed our economic rerival. the report has three key ambitions for the state budget this year. first we want the budget to fund climate resilience projects. seconds we want the budget to fund port maritime infrastructure at small, medium sized and large ports to support our interconnectivity and we want funding for the can completion of our mission bay ferry landing terminate. wiel on june 27, the bment was sign dz and once the governor and legislature is combined, it will be adopted. this where the port's funding for infrastructure and dealing with congestion, comangment and the supply chain will be settled and this is where the resilience

funding will be settled. we're hard at work with our lobbyists and delegates to lobby for investments. in august, you'll hear more as we plan an item for this effort. the port remains laser focused on our organization while enshrining this work if equity as a foundational ral eu to achieve an antiracist organization and a waterfront that intentionally welcomes bipoc communities. to operationalize it value, we supported our diverse ten innocents day one of the pandemic and will continue to do so. i'm proud that vice president brandsen spearheaded and we had an emergency loan program. this is fully exhausted with a total of 25 loans made. 76% went to minority and women-owned lbes and over half

identify as bipoc borrowers. this is great thanks to the outreach and community work that went into building this program. i contribute the success to the commission and sport staff who continuously veelted the program and ingested it in order to ensure that equity was at the forefront. now they're trying for a longer lb kerks line of credit to increase the lbe community. this new innovative program will provide access to working capital and increase cash flow and allow lbes to have long term banking relationship. this came with the guidance and support much veem brandon at the meeting in august, we're excited for you to learn more in an informational item. we're continuing to support our diverse tenants by creating

opportunities for black-owned businesses to participate in the farmer's market and other retail events that the ferry building hosts. wade very excellent somebody committee meeting and developed a plan and have the resources and are moving quickly to figure out implementation and i want to thank vice president brandon for her spearhead and support of this eefort. now i turn to key projects. before the july holiday, we received good news about the shoreside power system at pier 27. the port registered the system with the california air resources can board as a low carbon fuel source. we earned credits we sold to cruise ships during the first four months of the year and estimated one will receive over $60,000. we'll register other equipment at pier 50 and pier 80 so we can

benefit from those locations as well. i want to thank you commissioner for your steadfast commitment to ensure an economically viable, equitable and resilient port. that con keudz my comments. >> thank you, comow we'll take public comment. any public public comment 2349 room? seeing none, fow if for remote he. >> we'll open the queue for anyone on the phone for anyone who would like to make comments for the executive report. you can dial *3 to make a comment. comments are limited to three minutes per person. the queue is now open. dial *3 if you wish to make public can comment.

we have one caller on the line and i'll open the line now. >> thank you. >> hi. my namal is kathy and i'm account commodore of injured soldiers. i've been participating in [indiscernible] since the early '09s. when i was 20 i broke my neck while skiing. i enjoyed all water sports especially sailing. in a moment i was instantly paralyzed from the shoulders down. but i got my mba and law degree and was working at the law firm of morrison and forester when i

first joined this organization. i thought when i went there they were going to stick me in a little motor boat and we'd put put around the harbor and say aren't we having fun. instead, i was on a 27-foot kiel boat. with the wind in my hair, the spray if my face, we had to open adventures ahead. my world was forever rocked. i see how this changes lives. for a severely disabled quadriplegic, there are few recreational opportunities to me. i don't have the use of my hands nor can i balance well, but i can command a 30-foot keelboat as well as sail by myself a

14-foot keelboat. i'm speaking today because i was worried for the future of the organization when i took a learn at the sheet from pacific water partners. he understands this organization and he loves water just like me. but when i look at this, i see no protection for us. there is a line where our organization is mentioned where they say they'll honor the existing leases to the extent feasible. well, we have a pretty sweet deal. we don't pay anything for our space. and the plans don't include a dedicated space for our workshop or our storage facilities that are currently in pier 40.

also there is no guaranteed dock space to run our program. i worry because i know how close we are to [indiscernible] and how long our space quob highly profitable. >> thank you. >> [indiscernible] okay. thank you. sorry about that. >> thank you. we appreciate your comments. please reach out to the porlt. thank you. port. anyone else? >> at this time there are no other members of the public on the phone wishing to make public comment. >> public comment is closed. commissioner gillman. >> thank you director forbes for that excellent report. it is really up lifting to hear that one, we might be closed end of the year with excess revenue. i wanted to thank port staff, everyone who put hashed work on

that and layer upon that the cruise ships that have come to the terminal that we're coming back to being a port for tourism and opening of salmon sales. i'm so excited about that and want to reiterate how much i support in perpetuity selling live fish off our piers. in the last month i spent time in the northeast and southeast waterfront and we're having visitor back andals alike. i'm happy to see our he economic recovery is coming back. thank you so much for your report. >> vice president brandon. >> thank you he so much for your report. there is so much going on here at the waterfront. it's exciting to hear about all the opportunities to bring people to the waterfront. i hope the fourth of july show was good and everyone could see

the fire works. i heard it was a little foggy. but i want to thank the staff for helping the city to prepare for that wonderful event. and it's exciting that salmon season is opening and i think we all love salmon, so it's going to be great to buy right off the boat. and also good news to hear about the end of the fiscal year and all that the port is doing to help with economic recovery. it's incredible that our cruise lines are coming in regularly. who would have thought after the last two years. that is so exciting and wonderful. thank you andre and your team for making that happen and making sure the port of san francisco is the destination for the cruise ships. it's great to hear about the

equity and loan program along with vendors being able to fit in at the farms market. i think that is going to be exciting and i know that june juneteenth was very well attended so hopefully we can than. thank you so much for all the wonderful things in your report and your leadership. >> thank you director forbes. you and your team. we salute you because i kind of feel at times i think we're in a recession. i really do. and we're trying to grap with gh exphaing remember how san francisco used to be before covid hit. san francisco has changed a lot. you canner get back to where you were at but you have a different mold and we're changing as an

organization and with you and your team we're going to change with the times and moving in a different direction with a different energy. it's good to know that, right? and one thing about life, schaing constant. change is constant. i'm glad the cruise ships are coming back, but i believe covid found a permanent address here in the united states. i don't think it's leaving. i think it's a part of our lives. i was on the a plane, the apartments are pack. everyone wants to go back to what we used to remember. like we take a flu shot every year, we'll have to take a covid shot every year but that's okay. we'll get through this. i like us to move forward with perseverance, being focused and i'm excited as we continue to do the rest of this year how things are going to look. thank you for the money that we were able to get and once again,

i want to thank the staff for stepping up and all those that you never see but you know every day they're out there giving their best for the community. because this port belongs to the community and the citizens of san francisco. i still think this sport a beak be of light. and i'll compare this port to any port not just here in the united states but throughout the world. i want to give a shout out to the staff in the back. thank you for making us look good. carl, next item please. >> item 10 is the consent calendar 10-a requests an approval for findings under urgenty legislation to allow members of the this body to attend meetings remotely. 10-b requests an approval or or aclimb, inc. for round house,

l-16 for sound house and l-1698 under which one the port and tenant will agree to a 4-month payment -- 14-month rent holdover rent and redusks past due based rent and the tenant will have a stipulate. judgment for the tenant to pay outstanding rent if the ten can't fails to comply and three, waivers of rent fees and attorney fees and 20% of past due rent if the ten can't completes a payment plan. that is 2234. subject to approvals by the board of supervisorses and the california state lands commission as required. request approval of a final settlement agreement resolve dispute as to former custer

avenue with the 2006 revocable trust including one approval of a foreign trch and sale agreement free of the trust of a portion of former custer avenue 200-91-5650 davidson street. approval of a foreign trust exchange and title settlement for 10-20, 16-20 by which the city ask state lands will quitclaim their interest in the cold trust and grant a new trust easement to the state and make a em deposit in the land fund. three authority to accept title to the new public trust easement lands for approval of the extension of the standstill state and current settle. agreement between the port ask cold trs and additional

extensions to the executive director. resolution 22-35. >> so moved. >> second. >> there is a motion and a second to approve the consent can calendar. at this time we'll take public comment. any public comment in the room? if not, at this time we'll provide instructions for remote participants. jena, thank you. >> thank you. at this time we'll open the queue for anyone on the phone who would like to make public can comment on the consent calendar. please dial *3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial *3 if you wish to make public comment. at this time, there are no

members of the public on the phone we shalling to make public comment on this item. >> thanks. public comment is closed. we have a motion and a second. all those in favor. any opposed? motion passes unanimously. resolutions 22-23, 22-34, 22-35 were adopted family. >> item 11 with pacific waterfront partners for proposed piers 38 and 40 located along the embarcadero. resolution 2236. >> good afternoon commissioners, president adams, vice president brandon. i'm david beaupre director of planning and environment and supporting as the project manager for this as retransition to somebody else. i'm joined by others and we've

been supported by miss meté us throughout the project. i'll start out the introduction and pass the baton on to josh and he'll pass it on to simon for a few words and we'll be available for any questions. quick overview of our presentation. again, i'll provide an overview of the project process. provide a bit of a status update of what we've dn doing since we were last in front of you and josh will talk about the term sheet deals and next steps. stepping back again, i wanted to provide an overview of where we started with the development site and the offering which was piers 38 ask pier 40. pier 38 is currently vacant and pier 40, we have a number of

tenants that support the south beach harbor community including bay area disabled sailors which kathy just called in from. providing us with the cf where we're at, this time is average for different development projects. it ranges from two years to sometimes seven years depending on the complexity of the project. this project probably falls between the three and four-year range and probably mostly because of the covid and the delay that caused us in the process. where we're at is highlighted and seeking your approval for term sheet. if we get your approval today we move to the board of supervisors for a fiscal feasibility analysis and moving into ceqa and continuing the title process with the hope of break ground in 2025 or 2026. again, how we arrived at where

we're at today. in 2020 we put out the rfp with two respondents. we brought the highest-scoring respondent to the commission for authorization approve the exclusive negotiating agreement which you did in august. we came back to you in february of 2021 to get approval of the ena. then we were back if front of you in the middle of last year for the inclusion plan. continued our stakeholder outreach and worked with some regulatory partners and have been negotiating the term sheet which josh will cover more of. we started this process at the end or towards the end of completing the waterfront plan update where we -- through the 30-member advisory committee worked on developing policies up

and down the waterfront and shape the rfp based around those nine port-wide goals. south beach sub area goals and land uses. we've been working with our waterfront resilience team to build resilience along the waterfront and leverage the private development investment to help us build resiliency along the waterfront. lastly www.key continue to seek input from the community and created the r if fp on values they reenforced from the waterfront plan in our offering. a high level overview of the land use program included 216,000 square feet of office. 2 # thousand square feet of market rate restaurants in the bulkhead building of pier 38. 20,000 square feet of the affordable restaurant space on the plaza of pier 40.

then additional maritime and commercial recreational berthing opportunities. we have important tenants such as north beach canvas and others who worked to develop a program to support the south beach harbor. we indicated we want to keep and maintain and enhance those tenants because they play such a vital role to the harbor vilt. we've worked on a phasing program with some of the guidance we received with the commission with the first phase looking at historic rehabilitation of the piers and sheds. the seismic upgrades and==s■ re. phase 2 would be bringing in additional water recreation and

commercial activities around the harbor around the north side of pier 40. and then the last phase would be some form of recreational water recreational amenities at the end of pier 40. lastly, wanted to talk about the importance that these development projects play in our waterfront resilience program. we know that the port and government money alone can't invest in all the resilience improvements that bee need private partners such as pacific waterfront partners to help us leverage funding available. this diagram is meant to illustrate how we can close a resilience gap along the waterfront with the black lines identifying the edges of what i call a flood shed. an area subject to flooding based on high points in the 207ography. in this condition, we have the southeast flood shed from the bay bridge to the third street

mission creek area. the existing south beach break water provides protection against wave action and sea level rise. the area in blue improvements proposed as part of this project that would help break down wave action and elevate the line of defense at piers 38 and 40 and in purple are the benefits we get out of 30, 32. we're left with the red area in piers 26 and 28 and showing the gap that the city we hope will step in to help fill. and protection to the south he beach neighborhood. now i'll turn it over to josh for the term sheet. >> thank you david. good afternoon, commissioners. josh keane waterfront

development director. i'm going to pivot into project benefits but i want to follow yum with what dave was talking about with respect to resiliency. it's krit tall to leverage our partnerships and relationships for funding. we look at projects like this to be a solution here. i'll get into that later because this is part of the cost analysis and how the deal is structured with our partner. i want to talk more about the micro benefits and community been fits associated with the project. as david mentioned, dei plan was brought to you all last year is included in the term sheet as an attachment on the term sheet proposed in front of you. it's a commitment our development partner has made to focus on the community and equity components. wayne perry was mentioned. he's with cornerstone and cornerstone is a workforce development group.

there will be heavy involvement on equity during instruction. i want to highlight two direct equity-based goals that are committed to by the developer. one is the affordable rent. and so, it's not just about keeping the rents down to provide opportunities for non-profits or less revenue generating groups to kosm in but incentivize groups to drop price points to provide a direct benefit for the non-profit or operator, but also to the community itself especially bipoc communities. another instance we have here is aim commitment to provide construction assistance associated with the base building improvements. they're a barrier to entry to any retail tenant or restaurateur. because the up front capital is phenomenal sometimes in this market. commitment by the vertical to

prepare the space more than you would for a typical retail tenant is a commitment on their part. we can attract a much more diverse group of tenants. i want to talk high level on the public act racing. activation. a commitment towards indoor and outdoor public access and activation. preserving and creating maritime and water recreation students is a hallmark of this project. it will be phased into an early and a future phase. also providing a range of toonts for children and boaters. we want to recognize the need and goal to retain maritime-serving tenants at pier 40. one more thing, significant increase to berthing space for

smaller and larger vessels. i want to dove dale into the cost discussion. tals a complicated flooj can't be delivered by the port itself. some things happening on a high level, it's a historic restoration of two piers. sizement to below water and the super structures, above watersheds that are hisser to nick nature. throughout seawall stabilization and creating seismic resiliency all these for earthquake revengs and to off set the impacts of sea level rise. these are expensive actions to happen to work on the water, by the water and other resiliency aspects on this project. we mentioned previously and it's more detailed in the staff report, but the current budget for this project is $528 million which is substantial.

it's higher than originally estimated. part of what has been going overo on over the past year since the ena was brought forward was analyzing the scope and what was necessarily from a programmatic side and we came to the conclusion that right nowl is not enough from the capital developer capital and equity and for available funding and/or typical ifd or tax increment funding they provide. we've broken this project into three sections. we consider it within whole project but three different categories especially imh we look at funding. where we have a base flooj is to be funded by developer equity, $420 million does assume some tax increment and it also assumes historic tax credits available. then there is a number that is

resilience which is $58 million which is not insignificant. in the term sheet we indicated the port will stand with our partner seek the funds at the federal state grant level. we hope this is the time and hoping this is just something for the greater good that we think is a viable process to happen. throwing stand behind them. the developer is deferring some of the maritime activities until a later phase as it seeks supplemental finding. the reason we broke them into different buckets is we consider the base projects a pathway to funding. but this $58 million requires the port to stand with our partner, but i want to clarify this does not obligate the port or the city to come up with our own capital but to stand behind the development partner. i i want to talk about how this is structured to benefit the

port from a financial side. everybody is always known this was an expensive project and it wasn't going to drive the returns like we might on other projects. one of the reasons and -- we set our expectation as accordingly but we want to participate if this project and the better it does, the better the port will do. we create a simplified structure to get us there. there will be a certificate ever occupancy and the initial phase is expected to start in 2026. the port will begin to collect $120,000 a year base rent. it will escalate. 15% every five years. over 66-year term it is not inconsequential. the big issue is the participation rent. rather than taking a structure that works on other projects where we participate once certain return levels have been maid. we propose that doesn't apply

but we'll instead participate as the revenues of the project increase and participate in a more meaningful way. it's not intended to burden the froj in the early stages. the percentage -- the net revenues charged would be lesser than in early years but ramps us similar to an income tax as you hit a higher revenue percentage threshold then the port would harp as well -- port would participate as well. it creates a perspective where the sport participating in the success. we have capital in one-time events that will happen at some point. no matter how much we care for pacific waterfront partners over a 66-year term properties tend to change hands and we locked it in to make sure whether it's from a bang refinances or sale

of t, the port would participate in the net proceeds. quickly, i want to go through the summary scw what we're asking for today and go into next steps. as david indicate what had we're asking for your approval of this term sheet based on the conditions -- attached term sheet in there. we really want to acknowledge that having a 20% of the project costs is not the previous norm. it's out of norm. it will is unusual but we think this is krit dool keep this project going forward and a public/private partnership is the way to go on this. there is a lot of work going on between now and construction. and going forward with this term sheet we believe has very little risk to the port to continue going forward but it allows us to get to the historic

presentation and get the size mike and sea level rise protection as this project goes forward. i want to clarify not just the 58 million that we've committed to explore to ceqa, there are no public funds at risk dheurg process. if this port commission approves this and the board of supervisors approves it later, this will allows the development of the project to go forward with certain other actions to advance it. this is at no cost to the city or port at this time. i want to recap what the next steps are. on going things continued stakeholder outreach as needed. on going implementation of the dei plan especially as development and construction work begins. that will ramp up significantly. there will be on going coordination with our regulatory partners regarding uses and permits then the big action at

that david mentioned which is seeking can board of supervisors approval of this term sheet which will include a fifgal feasibility analysis that needs to be put forward. these are conditions required to advance the ceqa process. later, this will be theoretically start next year and in parallel we'll begin transaction documents. what is happening on the side is the continuing exploring sources for the $58 million needed to get up to the point where it's as close to fully funded as possible by the time this is ready to go forward. we commit to update the commission with those grawnt dates and project up dispaits we'll continue to seek your guidance. with that, we conclude the port staff's portion of the presentation. we want to turn this over to our partner from snelgrove from pacific waterfront partners. and we will he be available for questions canned.

>> good afternoon commissioners. i have three minutes so i'm going to go quickly. by order of himself. great to be here. pretty much david and josh took ts presentation away so i'll cut it short. i do want to recognize that we've been working hard on this. we have teams the best i've we ever had. jst instructional engineering, weave been working with [indiscernible] we did run into an interesting problem when you talk about piers of water and resilience. we have a model now and we're

proud of it and the port's team helped us. the next section i want to talk about is diversity, equity and inclusion. we have today my partner wayne perry and andrea barrack who would make good progress and form pacific management with wayne who is managing the project. and ujama, is here. and andrea has been terrific and patient but we're going it start out mentoring program this year and start this before we get open. rdj enterprises, dwayne jones is somewhere virtual. he's been helping wayne already and is a rock star in this world

working with our consultants. our waterfront playground, sorry april can't be here in person. but we have this waterfront playground as david says we're going to have market rate affordable restaurants but with market rates and affordable restaurants where we actually partner with the people get that rolling. people from challenged backgrounds. we're sure of that and on terms of affordability for all, we've got junior sailing ask probably going to partner with the south beach yacht club to run the junior sailing program. we have space for the canoes awful which will be rent-free and we're here today as one of the people from our merchant group, that we're talking to

this week about setting up a mer dhant's association to promote maritime services in the pdr space. the only thing left is the market. boo! we haven't had enough. the market crashed. but we're positive everything is saying that prime space and especially on the waterfront, especially in the front place is the order of the day. and i just want to say i've been 22 years. i'm not sure if i beat commissioner brandon or she beats me but we've been at this for 22 years. proud of our support for the project. fortunater to supported by your team and my team. i'm very, very honored that my team will work for me again -- some of them will work for me again. thank you commissioner. we're here to ask your approval

of this term sheet so we may move on. i believe that we'll get the entitlements by the end of the year and get you a project by the first quarter of 2026. i'm an optimist, that's why i'm a developer. thank you very much. >> are you done, josh? >> we're completed unless you have any questions. >> okay. commissioners is there a motion? >> so moved. >> second. >> let's open it up for public comment. we have one card. norman pierce pier 40 tenants. norman, you're up. if anyone else wants to speak after norman, you can hit the mic. >> thank you commissioner. where is the clock? >> we will ate let you know. >> thank you. quick introduction normal pierce

45 year resident of san francisco. 30-year member of the south beach yacht club and staff commodore. i served in the pier 38, 3eur 46 environment and have been involved with the development of a very viable waterfront on the eastern side of san francisco. we need badly. kood we're missing out a lot of commerce from from the general bay area salano, alameda, marn, napa counties. people in boats thriek san francisco to visit and there is no place to dock from the boat side. that will important for the pier

38-40 project. it's going to give the availability for people to come here and when they come here, they spend money. a lot of bigger boats could spend as much as $30,000 a weekend entertaining their guests. that can add up over the years. and pier 38/40 project will be able to accommodate that. can i came here to represent the tenants and the merchant services that are currently on pier 40. there is a total of five. that's spin kerr sailing, north beach marine. west wind boat services. and city kayak. it's all water stuff so that's good. there is an average of businesses these five from 1988

to 20028, long team people. they have over 40 employees all quiend. combined. siem and then his group is committed to making theur this group can maintain a space at their 48/40 servicing the maritime world. the harbor here in south beach harbor many of these businesses service the rest of the marinas in san francisco. we're supportive of this group and pray and hope you endorse this froj take to the next step because these five groups depend on this to stay alive and their employees. thank you. >> thank you. is there any more public comment in the room? being none, this time jenica will provide constructions for

remote participants. >> thank you. at this time we'll open the queue for anyone on the phone who would like to make public comment on item 11-a. please dial *3 if you wish to make public comment. account system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial *3 if you wish to make public comment. we have two kawrls on the line at this time and i'll go ahead and open the first line. >> thank you jenica. >> hi. this is due harper calling from spinnaker sailing. i have to applaud simon and the pacific waterfront partners

folks. the port commission may not be aware of it, but there is quite a few maritime projects currently happening and it's important to keep this only route. i prepared a little skit here. it's critical to keep the maritime tenants well integrated in their space. we have several tenants providing key services to the second large ers marina in the bay area, south beach harper and provide tremendous outreach for the citizens of san francisco and surrounding can people. we hover skipper charges for people who don't know how to sail and ticket events for the general public.

city kayak offers a host of other on-water activities for everyone from the ages of 10 to 80. it's popular during ballgames and such. we have bab for critical program for outreach to not only disabled communities but veterans community as well. waterfront park has worked hard to be inclusive of all the small and micro maritime businesses in the south beach project. we're witnessing an exclusion of maritime including the slaws leada development and the alameda marina project. nearly all the maritime tenants in those locations have been or are in the process of being evicted and as much today, it looks like the majority will not be allowed to serve the public at those developments.

i suspect the south beach project will draw from the bay area to participate in water contact that leaves these other communities are nonger a access to. i applaud this project. we worked well with these dispoaks they are very above board. it's transparent so i needed to make it comment. thank you. ,. >> thank you. next jen ka can. >> ica. >> thank you, i will open the next line. >> hi. >> go ahead. you have the floor. i just -- i apologize that i spoke at the wrong time. quickly, babs has been around for 30 years.

we're a care worgs a cadre of safeliers. ever -- sailors. we offer keelboat sailings on sundays. al you'll see volunteer working on boats to get them ready for sailing. we're open to the public and we never charge for our services. come down and see for yourself how bab serves a large diverse, under-served community on our waterfront. you're all welcome. >> thank you so much. have a nice day. are there any more speakers? >> at this time there are no other members of the public on the phone wishing to make public comment. >> thanks jenica, public exphept closed. commissioner gilman. >> thank you. al i am generally in favor of the term sheet. i just want to make a couple of he comments and ask a couple of

questions if that is okay. the first question which might be similar to questions other commissioner might have. i sought extension options in the term sheet. but if the capitals can't come together, the project isn't moving forward, with you walk me through the extensions and how we would terminate the term sheet? >> good yes. question. those would be formalized by the dda when it comes far approval. after the term sheet is endorsed, we'll have to negotiate the dda which will have the extensions tied into there. it hasn't been fully negotiated as far as that goes but we definitely don't want to tie up the site if perpetuity. we need to have mechanisms to get out if it's a non-performance. this is under the dda.

>> maybe i misunderstood that. i thought i saw two extension options. >> there will be extension options included for the development time period. >> okay. and then just -- the community been fits for this project i think is one of the reasons the developer brought to the table incredible community benefits, an incredible team from a diversity perspective on the goals around equity and inclusion. i would fathom those were some of the reasons why he was the best respondent to our rfp process, but we're still having a lot of tax credits. that's close 25% of the total project cost is in public financing. this is more of a statement than a question.

my question was would these with grant loans and the developer using their cam fees to come up with the funding and taking out the loans and grants or is this another partnership with us and the vertical? >> it would be -- we make as under lying landowner -- these -- it's views through that lens not the city incurring specific obligations. is this is 4th from a state grants, federal grants and any kind of programs out there. nothing local here. but it's not -- these would be public funds but not port funds for the port extending its own kind of ability to use public financing. the exception being the ifd which is in the base project itself. >> so we have the ifd, 19

million and tax credits of 65 million and we have our 58 million government funding that we're going to coraise together. my question was on the deferred maritime which is an important part of it project. it's a grants, loans and kam and had a hard time if the staff report. is that an illustration to come up with the 50 million? >> that would be the mixture. i don't know if the developer has any more specifics associated with that. it was intended to be non-public comments. that's why it's third bucket over there. >> can i scw the developer a question. >> come up to the mic. >> i know i mite be looking too far down the road. if you don't have an answer, that is acceptable to me. on the cam, are you thinking you could take that out -- you're

not proposing passing cam charges this 50 million on to tenants on the property? >> the cammal is running about $50 a square foot. it's a small project. this is a very big project, 215 times bigger. five acres. the cam will be less per square foot. the cam we do triple leases. the cammal is added to the triple net lease quawls the gross lease. when you lower the cam, you leave more of a module. we're going it take a peeforts cam. we think we can do it for $20 a foot instead of 50 and we'll take a piece and pledge it to community finance bonds and that's one. on the tax credits, it's not federal credits and you sell

those. you get 08% of your costs. we do it on the piers and base so you sell them to bank of america or chef ron. ron. it comes if the federal government. >> i appreciate that. thank you very much i'll make one more remark and this is supportive of moving forward with the term sheet. [indiscernible] i view this moving forward. in some ways they set a bar but now they set a floor for other development agreements particularly when you use this level of public financing.

even go it's the federal government ask selling it, you could arguexa■ anywhere betweens for and the 50 million is a little fuzzy. 25 to 30% of public financing in this deal is only way we can get these piers fixed. but the beauty of it, the lowering of the rents and ensuring that our maritime tenants will return, i commend it all. to me it's what i look for in every real estate deal because it's important to remember that we're a public entity. thank you to jd partners and cornerstone for now what we expect from other folks when they come before us. >> vice president brendan. >> thank you so much for the presentation.

al. this project could be very beneficial to the community, for the bipoc community, so many bringing everyone to the waterfront. and giving them space to be able to really enjoy our waterfront. so i am very supportive of this project and i just have a few questions. one is, can you let us know what the community advisory groups dwhrash the feedback has been regarding this project is there is it well-received? >> thank you commissioner brandon. we went to the northern advisory committee either a month or two months ago and there was general support for it. we did hear some initial concerns from some ever the pier

40er 40 tenants. you heard from a couple of them today about their appreciation for the work that siem and then his team has done with them. we have gotten together with them a couple of times down in the community to talk about moving forward in their rents. i think you heard from them when they talk about parameter rents. simon has done a great job ever outreach to them. we'll continue to work with babes and kathy to make certain they get account comfort level they need. in general, we heard favorable support from the community. >> that's great news. thank you. >> and i know that this -- at this point in time, this is the unique development deal for us because it's probably the first one where we considered putlingg resilience as a part of the project. overall, it's going to be extremely beneficial to the

port. we have to remanage how we do our public/private partnerships. i'm wondering, from the initial presentation as far as the financial terms go, what has changed? and how does it affect overall deal? can. thank you commissioner brandon. iement executive director for real estate and development. main item changed from the rfp, the initial proposal had a much hire rent but offset with rent credits. they had a $9,000 initial rent, then they had the cost dispiment proposed a level of return and they quo receive rent credit to the extent as they're getting up to their level of return. and so in trying to model it

out, we get concerned because we've had experiences where costs continue to climb as we're developing the project. we moved away from having a high rent, but then having rent credits offset that toronto get rent to havelike we want to havt and we participate in the modified gross revenue irrespective of where the costs are. we wanted to get away that in this project. that's the main difference that changed from then until now. >> so how is the .0 to 4% -- >> i'll start to explain it kohl josh. we've modeled out their gross revenues and i don't know if we've gone through 10 or 20 years and each what we modeled

out is zero to $10 million. 11 to $250 million. we think the project billed out is in the $20 million in terms of revenue to the project. for the lower tires, we'd get the .5% of a low tir ranging up to 4%. the term sheet is not specific on these tiers. it has the raifng .4 to 5% tiered. we haven't specified it into the term sheet to get the costs more nailed down and then we'd have the tiers be more refined. we think we need more information on the cost and as they come in over time to kind of get those tiers nailed in. for the term sheet, we specified on a marginal rate meaning it will go up as the revenues go up. as we continue this analysis ask get that 538 million-dollar more

locked in, then we can lock in the tiers and we'd be --s we go through this process, we'd come in closed session as we get more and more information as we continue these negotiations on those terms. >> it makes a lot of sense. so, the overall return to the port, has that changed significantly? >> that would require the mpv check which i don't have from front of me in terms of the rfp versus today. i don't have that and i don't think josh does either. we can definitely bring that back in templets rfp expectation understanding that it would cost rent credits ask that projection versus where it is today. we definitely can gheat. >> as you know, the financials are always important to me with whatever development we're doing. it would be great for us to understand what we're really agreeing to going forward.

but i appreciate the presentation and all that. but it would be great to know what has changed and where we were and where we're going. that would be extremely helpful. but i'm supportive of the program -- of the project at this point. and then, i just lost my train of thought. i think commissioner gilman answered my question regarding the benchmarks and as far as how long, you know, we tie up because we've seen over the past that some of our projects can go on and on. to make sure we have some kind of check points where we make sure the project is feasible and continuing to move forward which i know it will and it's going to be extremely successful. those are my comments. >> thank you, commissioner.

>> thank you vice president brandon. team, thank you. before i start, director forbes, i would thriek hear your thoughts and then i'm going to give you my comment. s. i want to put you on the spot. go ahead. >> thank you president adams. i think staff did a very, very strong job describing the projects and some of the great public benefits that we can expect if this project. the key resilience needs that we have for this portion of the waterfront and challenges with the capital stack for our project like this. there is a lot ever conversation about the value and benefit of the dei program here and i think it is innovative and strong and something we ought to be proud of. every project is different in terms of what it can bring and deliver. here there is a strong dei program ask partnership from the start where we'll see different results here and promising ones.

i think that vice president brand asked some questions about the financials and rebecca has said she can run those numbers with the team but hasn't done so in terms of a sid by side comparison of income expectations to the port. we can do that. i would recommend moving forward and receiving that analysis as we give project updates. if you feel you'd like that now, i understand. and i think staff has done an excellent job make the deal more simple so the changes that josh has described make abundant sense in terms of how to can compute on this agreement and keep it simple and keep it state forward. our master development deals were much more complex. we were lucky in those deals the land value and all the fancy

financing allowed us but in the -- in these situations it doesn't. those are my general comments and my final comment is the boaters. in pier 40, we recognize you and appreciate you. we think intab a wonderful program. we're so brsh we think bab is a wonderful program. it's good to hear ow people enjoy the waterfront at pier 40. >> thank you director forbes. i have a couple of comments. clearly i agree with vice president brandon and the finance, the devil is in the details. are we where we should be? i would thriek know that. are we, in this project, where we should be? because i understand this is a

complex project. we're talking about over half a billion dollars. this is huge. and so, can you tell me where we're at and where we need to be and kind of like what has changed? >> ií&w■ want to start with reb. i wanted to give my perspective then i want to give josh his experience. my experience with term sheets is we can get very, very detailed and then two years later, we bring you a lease after we've done ceqa and more public outreach and we changed the project at that point. sometimes there is disappointment or there is excitement from the changes from the term sheet. i have found that compared to tettra or others, this term sheet is shorter. it focuses on how we're going to

work together to negotiate the lease and focuses on the key values that not only we've heard expressioned through the public process in terms of the ei program and commitment to boating and dmoiment bringing in the new youth sailing program speaks to those and high-level financials and identifies this gap. i think we've brought it as far as we can bring it. now we need to do ceqa and dot more detailed analysis because we find that process always reveals something we can't know about until we dot term sheet and get to the environmental review. from my perspective, it is more high level than our other term sheets. i fully acknowledge that, but i think it reflect more of where we should be at this phase ghaifn we have ceqa and permitting ahead of us and those processes will result in changes to the project. that's my high level perspective.

perspective. i don't know if josh wants to add anything. >> what feels like a slower pace is getting comfortable with the idea there is a funding gap because that's a big mental hurd to get over. this a critical step for us to go and that i can before the board of supervisors who going to be our other group that needs to get comfortable with the concept at that we hope is compelling. i think it took a while to get there. there was a lot of negotiation to switch this model and vice president brandon and i look forward. i have a lot of that information readily available so we can brief you on that quirk rather than later. i think we're where we need to be on this one because of the gap. it's really a critical moment now to move forward and make sure we have the support on a

larger level beyond this port commission. i think it's the right point. >> thanks, josh. and thanks rebecca. i'm supportive. but what i miss are our activists. i miss alice and the late corrine woods because they're the koshes of the commission and the community. .what they want is what is best for san francisco. they don't have an agenda. i miss alice and the others to look at it and talk to the community. this project will belong to the citizens of san francisco. i like hearing from them because they don't have an agenda. thank you very much, i'm supportive. i will vote for it. commissioners, anything else? we have a motion and a second. all those in favor. any opposed?

resolution 22-36 passes unanimously. >> item 11-b rescind being resolution 0729 which prohibits the port from paying brokers commissions and a new policy that permits payment of brokers commissions and fees subject to the limitations set in the proposed policy and three, a resolution authorizing the pursuit of a proposed multi-site offering using a competitive solicitation process to list the fer which plaza east building and a restaurant space in pier 33½. resolutions 2237 and 2238. >> good evening president adams and commissioner. i'm the development project manager with the real estate division of the port. this presentation is about

requesting consideration and approval of two proposed resolutions. the first is to rescind the current prohibition for us to use -- to pay broker commissions in listing port property and approving any awe broker policy to pay commissions. excuse me, can you hear hee well with my mask on? >> we can hear you. the second is to authorize us to pursue this thing ferry plaza is loading using a broker subject to the offering conditions and parameters discussed in the staff report on this matter. we thank you for the feedback you provided us on april 12th when we discussed this. the rest of my plengs provide more detail on my report back to you.

the action we are requesting you to take today. the outline of the presentation is on this slide. we'll convert key dwhrats we presented 12 expt report on the work we've done since and provide a summary and bases for the action we're asking for to you consider taking today. we will conclude with the next steps to goat listing these two properties. if you recall, on paip 12, we apprised you on the he building and space. we know there are weaknesses and strengths. the market considered the location to be a premium location because of their proximity to [indiscernible] the ferry building and the

incredible view the customer will enjoil from these two properties. we noted that the ferry plaza building has some -- needs twork increase the appeal. we know it's a challenging environment in terms of covid-19 impact which led to vacant spaces. we recommend using a broker as part of our listing stwreaj. you provided us a positive feedback on the listing strategy which would allow us to lease our vacate our space to provide proactive and let us actively address visibility issues so meaning that when we're using a

broker, they'll gives the idea because they're in the expharkt know what the issues are and know what the perspective tenants were looking for so we don't do a hit-and-miss. we indicated to you we're using a broker is because they have the time, they have the data, they have the relationship and they know the prospect deals requirement meaning that perspective tenant will show them what they're looking for and preferences are to help us get a good proposal. we then discussed from 1993 to 2007 that you allow us to use a broker. in 2007 you requested to use a broker because the market was healthy then and prospects were knocking on our door to list a few vacant space we had then. now the market is not so great.

due to covid-19 impact. too many vacancies. but we have seen some improvement in the market. since we came to you in april, we [indiscernible] starting with bcdc expk we reach out to representatives. we conducted broker outreach in working with the city department of real estate to fill out the broker. we actually provided a tour for the brokers. working with the city primarily real estate, window thought it was a good idea to get a letter of interest from the broker to get their sefns engagement and start working on this. we give them a teufort property so that you know what is involved and what the issues are

and tell us their level of interest in helping us with it. we did receive roughly three letters offer interest from the broker that we're currently reviewing. again, whether we came to you, we've gone back to review broker policy because negotiating with the broker, we need to get your guidance in terms offer the deal points and are we going to pay them and issues we need to address because the prior broker policy, we informed a new broker policy that we were recommending that you adopt. we continue to do our due diligence because particularly for the ferry plaza, this

building has such a unique structure. we think a tenant coming in would need a lot of information. those are the due diligent materials that we're collecting so when they come to us, they're not going to be searching for the information that we'll have readily available for them. just to go back to why are we using a broker, or why our current process rfp process from our retail and restaurant space is not ideal if this situation is because the rfp process lack access to pros neacts rely on broker to find spaces. the work order to understand our offering because of the conditions. a broker will provide that information for them up front so it can move quickly. the current market requires a

new approach. for a prospect we would not otherwise reach. the resolution before you, the first is to rescind the existing resolution that prohibits us from using -- paying broker commission. we window adopt a new broker policy that will allow us to pay broker commission. the second resolution is actually authorizing us to pursue this offering using a broker. as a summary or the key requirement for this new broker policy, what we're saying here essentially is that the broker will not be entitled to commission or any fee until we have a valid contract and a binding agreement. that a broker and tenant must be recognized by the port through our register strietion avoid

issues. we don't want a situation where another broker o coming out of woods. we want to make sure we recognize that we are on the same page. just because a broker brings a detour doesn't mean there is a deal. it has to be at our discretion. the broker commission rate, as you know, is based on the market krld but we are recommending. market. but we are recommendingal not to exceed our discussions with them. in terms of the manners and pyramid sources because with covid we koant have a lot of money. we want to make it clear how we

pay them. the commission is to be paid from the rent the tenants are paying us. some of them like to be paid up front and some -- up front, the lease has to be signed and the tenant has to make a deposit but lots of times they want half of their commission up front. we're stating that is not possible. however, we are providing for a provision where by if we're paying them a fee for up front work they do or if the circumstances are different or if we set a identify funds to pay them -- set aside found pay them, that would be the exception otherwise the money has to come from their rent so they have skin if the game. of course, the broker policy is going to have conditions. because there are times that we have a relationship with the tenant or we have a prospect

that approached us already. under the circumstances, the broker would not be entitled to commission because we have a relation with that particular tenant. those conditions -- limitations are provided. in times the benefit desires of this offering, this is part of our economy recovery steps is to generate new revenue and benefit spaces for us. i they're on the slide. here are the two spaces that are the subject that we're talking about. the first is pier 33½ restaurant space. approximately 4,600 square feet. as a frontage the embarcadero is close to what i call the great

advicea which receives # .3 visitors in 2019. we hope it's going to get back there. we have an incredible view of the bay and this is accessible by most transportation. here is the ferry plaza building. you probably note story that it's been vacant for quite a while. it's a huge building designed back in i believe early 2001. it's a two-storey building with over 18,000 square foot space. because of the size it may require a unique approach like a developer may have to come in. it will is too tboig use as a restaurant. you're looking at multiple use. you're looking at the ferry

plaza. the ferry building has 8 million visitors per year prior to covid-19. we hope it's going to get back there. it will has that unique attribute because it's already there. you just need to be putting us in a position where we draw more people to it. it has a spectacular view. 360-degree view of the bay expwrij city skyline and is accessible. the interior needs some upgrading. there is going to be a need for some complementary uses to take up the full space. this is what we're proposing is anticipated offering term for the pier 33½.

it would need to be reconfigured in terms of the interior. it would be a minimal to rop rate. parameter uses are the same. retail or restaurant. it's a snow squall time relatively speaking, we think we may be looking at 5 to 0 years in terms of the initial term. that term is going to be commence ri with the a. money they're investing. the capital investment will take the rent. you need the term to recoupe tir investment. that would be considered. we want the ten and then the his team to have the capacity and wherewithal to operate and

perform. currently we're pro poag the experience is three 0 five years. it may not include the last two years whering what has happened. the ferry plaza building is similar dismeapt it meets reconfiguring and may take a little bit of time to dot work. some of the work may not be termed as improvement because they may need to do something to the outside of pt building. they need to reconfigure it to improve the physical a appeal and it will could be use the for retail. we think that the initial term, again, would depend on how much money they're putting in to help us decide that. the requirement for the tenants would be the same. they need to be financial wherewithal. you could conclude why we need

your approval. this is unique property. it's a building where we think we need to use a broker to actually reach out to the a market and reach for a prospect that would otherwise not come to our property because they need a broker to careen their deals. broker to screen their deals. these are the reasons why we hope you will approve the two resolutions. in terms of the next step, once you approve the resolutions today, we hope that within the next 60 days we'll work with the city to enter into a contract with a broker. and then we'll gm with a broker to start doing the marking and due diligence that i discussed. we think at ferry plaza is building that may take longer.

we think that pier 33½ could get something done quirk. we'll dot evaluation and provide an update to you. we are hoping earlier next year we can bring a proposal to you. that many concludes the presentation. i'm glad to answer any questions you may have regarding our recommendation, but we recommend your approval to the proposed resolutions. >> so moved. >> ekd. >> thank you yik. there has been a motion and a second. let's open it up for public comment. any public comment in the room? jenica will provide the

opportunity for remote participants. >> we will open the queue for anyone on the phone who would like to make public comment on 11-b. please dial *3 if you wish to make public comment. the system will let you know when your line is open. comments will be limited to three minutes per person. the queue sh o now open. meez dial *3 if you wish to make public comment. elt at this time there are no members of the public on the phone wishing to make public comment. >> thanks jenica. can commissioner gilman. >> thank you so much for this report. i have a couple of questions. i just wanted to make sure and e to me the presentation today compared to the staff report

which was quite detailed. i want to make sure i'm absolutely correct. when you look at the staff report, on selection process starting on page 12, it outlines the selection process that i'm assuming the broker will be made aware of to bring us applicants that fit the selection criteria. >> yes. >> when we get to the top of 3, it says it becomes necessary to use a continue hrfp progression es. are you outlining for the commission and flick the broker fails, we'll defeult this rfp process? >> yes. we have that right to issue the rfp ourselves or to lease the property on our own. that's why we said on the broker policy, if we have a tenant approach us, before the broker, we'll have the right to go with that broker.

because of the city require competitive solicitation of process, we may have issue an rfp if it comes to that. >> i guess that's may wanted to dig into more. my understanding the reason we're experimenting with this with two different spaces, it's good to have a space like 33½ which is in some ways is a turnkey space ready to go. i could be a restaurateur having a restaurant if the sunset. maybe i'm a small business woman and i normally don't feel like i can apply for rfps but the brokers know me. there is ferry project east which mean aises lot of capital improvements and probably need someone to dmoom it because of the capital. i think it's great that we're

using two dinner spaces to experiment with this. hopefully bipoc community to start businesses on the waterfront. my understanding is the reason we're agreeing to the broker and paying the fees is to avoid eye lengthy rfp process. that's why i was confused by page 13. i guess i'm having a disconnect here. can you explain there to me. >> i'll make it simple. that's why we have the timeline. you're right, we're doing this pilot program with these two properties. by if for some recent broker is not able to find a tenant, then we have to get bait. >> this is the contingency plan if the broker can't. >> yes.

>> thank you. that is the clarity i wanted. do we have any sense looking at this timeline, this isn't just for 33½. in some quays i'm sure it needs paint and different feel to it. but in some ways it's a turnkey restaurant space. do we have a sense what type it takes our master tenants let's say the ferry building or 9 folks leasing pier 1½, how long does it take from concept to dispute a lease for them? do you have a sense? >> oftentimes it comes to the issue ever ceqa getting their

liquor license and getting through dbi or getting the necessary requirements. those are the areas that takes time for them to get through -- to be able to say they want to start construction getting that approval. >> this is just more curiosity question. i'm trying to wonder, is our timeline for someone who wants to go into 33½ too long compared to having a master tenant in place? i just want to judge the timing. do you understand what i'm asking rebecca? >> i think so. i can add more context for one example that you are familiar with. they were trying to get retail tenants for buildings under construction now. they don't have leases yet. if that is a guide how many months it takes to show the

space, garner interest and sign a lease. i would think our timeline is aggressive, but i would expect when we get into contract through the department of real estate contracting tool we can find out our expectation. we notes pier # is trying to fill their space. we watch the ferriy building. there is exe stition right now that says the leases are too far between. we have some optimism but we want to be realistic. >> i want us to have a process to have someone if the queue ready to go. because we are government and have the public trust and obligation we're moving too slow where they pivot. that's all i want to say is if we have an applicant, i hope we're nimble and a jill enough

agile enough tonot lose that ap. cad. >> thank you. vice president brandon. >> ricky, thank you so much for this report. bringing this opportunity to us. i think it's great that we're starting with a pilot program and villetwo locations too see how it to works out with broker. how is the commission negotiated? is there a cap? >> the commission is dictated by the market. generally, it's usually no more than 5 or 6%. but with the competition,ful we're asking to be brokers on a deal like this, one or two of

them is going to lower their commission rate. generally, it is negotiated, it depends on the issues involved and the amount of time they may have to spend and the resores that they have to spend on their own. because they're not going to get paid until a tenant made their deposit. generally, it's not more than 6%. >> is there a cap? do we have a cap on what we are approving the fee to be? >> in the staff report, we indicated a range of 4 to 7%. but it's a range and it's supposed to be a cap. our expectation is that to get a deal, most of the brokers are not going anywhere for the 7%. secondly to be competitive, they

probably won't to lower it and secondly, that 6% of 5% is the total amount, but if they're using a cooperating broker, then they have to split it with the cooperate team broker. that rate of 5%, that's just on the first years of the lease. it reduces over time. that's why when they bring a deal to us. they're going to show us some comparables to say this is the last space that released, here is our commission and requirement. >> when is it negotiated? is it negotiated when they bring a proposed tenant? or is it negotiated whether we say we would like to use you to go out and look? >> in this case, it's going to be reflected in their contract

which will have the scope of work ask talk about compositions. in this case since we're using prequalified brokers, it would be the city that facilitated contrast and it's between city and the broker. we'll provide for the composition. compensation. the ferry plaza is building, a broker may say we have an architect or consultant that is going to prep for the marketing so usually that many accelerates the work so the tenant coming in is not going to worry about what they need toe do. the broker does leg work for them. then they'll be able to facilitate let's make a deal. >> okay. expp i appreciate that. and i appreciate that.

because i know they have to do a lot of work. the fee is going to be negotiated before we choose the broker. it's going to be on their submission. their proposal to us. i'm still -- i'm sorry. >> i want to explain it one more time. ricky did an excellent job, but we're not bringing the contract back for port commission approval. we have the contract -- so you understand that part. >> we're just approving to be able to use brokers. >> that's right. >> i wanted to know if there is a cap on how much we're approving to pay these brokers. >> understood. >> and how we negotiate the fees. >> we'll be bound by the broker policy. the broker policy does not have a cap. it has an expectation of 4 to 7. we would recommend against the saying the port will pay up to 7% because then we find brokers say the port will pay up to 7%.

we want to keep it that the expectation is 4 to 7%. when we bring -- once we dispute the contract in our behalf, when we bring the lease to you or we bring the results of the broker solicitation and bring the lease to you, that woft commission listed in it -- would have the commission listed in it. you could have the opportunity to say that's too much or zag long those lines. we're working through the competitive process to make sure we're not getting close to the expectation up to 7%. we propose it as a expielt knowing we were uncomfortable with having a max in the broker policy because we find that people point to that saying that's the rate. >> it's me. i asked the question wrong. i wonder how you negotiate the

fee. how do you choose if it's 4 or 5 or 7%? what factors is it based on? when did you decide what fee you anticipate broker. >> we have three proarks and we have their proposed fees and experience. now we'll interview them with the department real estate and find out who knows what they're doing and if there is a higher fee presented, does that broker have experience that are so similar we might be willing to pay mar because they're going to hit the mark. >> their proposed fee is in their proposal. >> correct. >> thank you. thank you so much. and the most we'll pay is 7%. we'll not go over 7%. >> that is what we all believe and that's what the department of real estate staff are working with as a reasonable expectation. >> i was going to say when you talk about broker compensation,

we're focusing on the rate, but the rate is only half of the story. it depends on the deal on the deal. if they're able to foonld a tenant that will commit to 15 years and they're paying this x amount and putting a lot of improvement into that building, then we may be subject to negotiations. because that rent is way higher and we're now going to let them get the highest rate based on that. secondly the percentage is based against what we call the base rent. meaning that if there is any lease extension, if there is any additional money coming in like the percentage rent, those are exuded. those three things you're looking at, the rate, the transition value is, and -- >> thank you.

i know a lot goes into it and i appreciate that. thank you. >> just one quick comment. i wanted to point something out that commissioner gilman was talking about. we put a note or eye timeline on page 14 where we schedule is expected to be short. we're expecting that to be shorter. >> so my last question is regarding resilience. how do these two properties fit into the overall resilience effort? do we think they're not upgraded within the next 10 to 15 years? or will the potential new tenant have some responsibility? >> we discussed that in-house when we talked to our engineering staff. the pier 33½, we're going to have provisions to the extent that there is any addition of

flooding that they need to address. but they're not in the same category as a grander development that will require that type of issue. the ferry plaza is part of the due diligence i talked about. they're not going bloat ferry plaza platform because it's above it. the only area that i hear we may have to do something is the ferry plaza itself that it may need -- may need to do something to control out the floodwater recede if there is any on that. for the tenant, we're not expecting in of them to be impacted with that. >> thank you. >> director port, did you have anything you wanted to say? i saw you ready to pipe up there

and hit the mic. >> i was ready to hit the mic but the team did a great job in answering. these leases are not having a long enough term for a big resilience but they will we respect that sea level rise is coming in the lease disperms will spread risk for that and require things likes the chief harbor engineer recommending flood protection and the tenant working collaboratively with us et cetera. those types of terms will be there, but the expectation is not any kind ever major capital investment from the restaurateurs. >> we have so much to do along the seawall for resilience and earthquake safety if these properties will be impacted by whatever work we may have to do if the future. >> that's a fantastic question. the ferry building work is complicated and along lead time.

so we're not seeing a flagdown on a beginning of construction in this particular area. the butterfly area is along that stretch that we're doing a program area programmatic look at a more larger scale intervention. and we also -- similar to ferry building aren't seeing a construction daift beginning. we feel confident that these are good facilities to lease out and provide more vitality in the frame of our resiliency program. >> thank you. >> thank you rick ri and re expweak director forbes for your comments. noif questions. i'm in favor and i'm going to vote for it. we have a motion and a second. all those in favor. any opposed? it passes, 2237 and 2238 are

adopted. 11-c monthly rental rate schedule, special events. these are the parameter rates. >> thank you stoach. deputy director of real estate and development. i'm here to present an information the item on our parameter rate schedule. hold on to your hats, everyone. we'll acknowledge joshua, dmee dimitri, jennifer, dominic, vickie lee all helped me review these. i want to recognize tatianaa coalman our summer intern who tireless little under dimitri's tutelage called every parking department. you're doing a great job.

i want to go over how we set the rates. let's look at our property in context and performance. we will go over the rates which are same, different and new. i want to go over proposed delegation to changes in the next steps. first, the framework parameter rates. these are one of several directives we use to manage our diverse and fast night porlt foal yes. the parameter rates are sort of the linchpin of our delegated authority to enter into property agreements without competitive bid. and the parameter rates are meant to reflect fair market value. as further background, we have other rates, that's are not the only rates. our parameter rate schedule, landing fee schedule. south beach harbor rates are listed rates for any member of the floik understand how much we

lease or property for. when we go through this process, we undertake it not only collaboratively with port staff but with third party consultant their study was attached to the staff report. we work with kiez ar economics in this go around and a broker who is a subcontractor to kiez ar marsden. we did several rounds with them ask sport staff to go through each of the finding and market studies. they went true several margaret studies, industrial market reports. we did the leg work on calling local parking operators and calling nearby harbors. we also looked at our own activity. we had some interesting finding that i'll go through where the parkt is one thing and we find something else on our own property which is specific context for our own property. we looked at our own lease and activity and looked it through

all the rates. the consultant and staff go through each one and try to kerm determine why we place one in one category and raise it and put it another category and decrease it. then we come you p with the rate proposal. a bit of context we learned, many -- i love market reports because it's to familiar to you if you read the newspaper. these all kind of ring true. lots of vacancy in the office market. there is 18 square feet vacant. office rates are flat. they're stuck at 14% below the pre-pandemic office rates. tenants are shopping around. they're looking for good leases and rent packages. there a lot of sublease activity. subleases make up 40% of new leases. there are tenants looking to not occupy their space but to somebody lease it out to someone else.

finally landlords are doing upgrades and adding amenities and throwing in free furnishing for leasings for offices. for industrial, it's been relatively strong market wide and we count san francisco stan metéio in one category. it hasn't seen a big diep. people are having items delivered to their house and it comprises the last mileage as items are stored comprises a large share of the market. we don't have hotels that we run but hope to have a hotel on port property soon. hotel occupancy rates are coming back up. which is great. up to 70%. one not to great aspect of the hospital at that time market even though we see increases in air travel, san francisco is

still lagging other metropolitan areas like l.a. denver and international travel. this is a nice little snapshot that is provided to us that shows what happened since 2020. you can take any of these aspects po focus on how is commute coming back. house hotel occupancy coming back. i didn't talk about seated diners. the statistic on the bottom shows how far we've come in terms of people eating and sitting down at restaurants. we're down 45%. that's relatively high still compared to other similarlily sized cities. we have among segments i started to talk about we have about 400,000 square feet of office we will directly manage. there is more square footage on

the port property. our own office building we have a 14.5 percent vacancy rate. our industrial space is -- we count our sheds as industrial even though some of them have restrictions on what you can do inside relative to other types of industrial space. like you can't do different types of work inside of those buildings. most is storage and other sorts of light industrial. that's relatively vacant. 25% vacancy. these are about 2 million square feet of our total rental property. we have other property that will is land, under master lease, park lease agreements and we have a low vacancy rate in. only about 6%. i want to go through more on the rates. do give you the high level, there are 115 rental rates in the exhibit. about half of the rates are

proposed to increase slightly. i forgot to provide this context bl but we're working off of the 2019 parameter rates that haven't been adjusted since 2019/2020. 40% of rates are proposed to stay the same and 10 are proposed as a decrease. once we set the rates, these are delegated authority items and we can use the rate to enter into leases up to 5 years uch to a million dollars. first i want to list out a couple of building that are flt increase category. these are locations where we have low ray cancely. we have an easier time of leasing. tenants are quicker to sient lease. we haven't found a physical barriers to cha tenants want to do. teen if we don't have low

vacancy, the trends are in our favor. these include a number of office building. pier 50, 5801 caesar chavez. peer 45 and 47 we've had good interest in. we're increasing the office building at the pier. these locations that have vacancy or we have trouble finding a ten than the is interested but their use doesn't match chat space has to offer. the ones listed here are many of our pier sheds where we have vacancy and we should keep the rate the same. some of our office locations. finally we have some decreases in other of our pier sheds where we're having trouble finding tenants for these locations. in within case, we did have to reclassify building as it turns

out, 601 caesar chavez was classified -- should have been in a full service category, but it was in a triple net category so we reset the rates charged to tenants. 490 jefferson street, the beltline building is some pier sheds that are harder to lease are have a captain. vacant. sidewalk rates for pier -- port tenants on percent an rent leases is something that came up during the shared space flam we talked about. we throog some of our tenants are using more outdoor space under a license and paying us percentage rate for at that space so we want to recognize them at a lower rate.

i want to recognize the pier 400 tenants and the efforts they shared in terms of their situation in needing to have potential considerations not a storage-type of tenant. we developed ( would only apply for water recreation, marine, other maritime support or an ecii existing ten than the visitor serving. the main one there is bike hut. we want to allow them to increase their current rates. we proposed to increasing them to a dollar 10 reflecting other maritime serving businesses elsewhere if the bay like in richmond. we're offering that rate to this small number of tenancies in pier 40 that are hair time serving or maritime supporting. we developed a new rate for airspace rights. this occasionally comes up where

they want to put signage over the walk. we have rates for scrowt door classes. we find more interest in boot camps or summer camps and we did look up how rec charges and matching their rates for some of our outdoor spaces. we reviewed our leasing tactic. we talked about this in 2021. what tools can we offer to sign up new tenants to several year leases. we can't offer some of the tools but we can offer incentives for longer term. we talked to our real estate consultant into trying to get tenants into a three or four-year lease. they might be a little nervous so we have -- if things don't go

well, they can get out. this leasing tactic would be if you have a three or four year lease we'd ramp up your rate so you'd be 70, 80 or # hundred percent parameter. if you wanted to terminate during at that time period, then you would pay us a fee equal to how many years of lease you had left times your monthly rent. you would also pay us back for the discount we gave you. if we gave you 70% discount rate for year one, we want the money back. and wide' include that fee the cost of processing the termination payment. we'd like to continue a tactic that we proposed in 2021 that we've been testing out. this is the ability for tenants

if they're going to sublease, we would split the dpes rent. if they got a rate above their return the rent, we'd split those excess revenues not less than 50% to the port. we started it in 2021 and signed one agreement. it's been worth 10s of thousands of dollars more to us per year for that lease. it's a rare option, but it's a good way to try keep the tenant in place to have them fill the space while their lease term is up. most of the leases are only a couple of years. it would be a couple queer time period where we have a ten fnt place. finally, we'd like to continue the maritime triple let lesion strategy we put if place in 2021 and updated in 2022. just to be clear, this applies to existing or new maritime tenants. the lease must include three of the four use types.

office, submerged land then we can offer them a discount at 75% of parameter rate, increasing 3% per year. we want add to that pool si that will if -- add to that policy if the tenant is able to lease all four locations, we have the low rate free. we don't charge them for submerged land but we consider that attached to their a pron an use. a bit more on delegation. we want to be clear about. i want to thank the city attorney for her help with this. key one is we're supposed to bid out all retail opportunities. outdoor designing in front of your restaurant is not a retail opportunity. it's something you can license

out as part of the shared spaces program. we have two development-related items, the first one is the utilities that mission rock utilities is putting into streets at the port. we have the ability to not charge utilities that are serving -- public utilities serving porlt property. we want to extend that to mission rock utilities because they're taking over what wofn sfpuc piping. we'd like to have them have the same kind of luxury. or dhargs we were going to provide sfpuc and they were going to do the plan. we have some improvements coming in on the streets that we want to provide free of charge. art pieces on the sidewalk. we want to provide licenses or another real estate property gleement provides another entity, either the vertical

developer or master developer their responsibility for taking care of those items at no cost. a we'd like to stop, it's difficult for us to report consent and assignment. this was something in an old recall port commission policy 245 when i was going through t through our reporting, i realized we weren't keeping up with because we don't enter the agreements into the property management system. it's difficult for us to report on consent to subleases and assignments. i would like to stop reporting those and stick with the monthly leasing reporting. that's for your consideration as well. finally, we want to be clear that for leases that get signed close to a new parameter rate reset, if they're -- if they're signed within 30 days of a new parameter rate going into effect, they could be under the old parameter rate. there are a couple of leases

getting close and they might sign them soon but maybe not around september first. we're trying to allow the continuity of lease negotiations if it comes down in rate reset. special events, special events are an incredible way to activate the waterfront. we must charge faryg harkt rent however, i want to be clear, it's not a key revenue source for us. we made about $72,000 in license fees. a prior o that we were making $207,000. we're proposing -- and i want -- it's a great way to activate the waterfront. we want to just kind of charge similar fees that others would for special events. in working out with the special event staff, we have 10 to o 35%

increase. even more importantly, she developed more size segments so we have more lower fees for small events, 50 people, a hundred people and up to 2,000, and 5,000 are larger fees. that's a good add to the especially event rate. we have new special event discounts that we're proposing. in 2019, we proposed the non-profit event discount, 25% off the licensee. we didn't have any events come through this. this was before covid hit and we didn't utilize the fee, but we think it will be coming back as more events are coming. we want to add to this potential event as noted here, these could be fee waivers up to $7,000 for an event which could be the whole license fee and we'd thraiment waiver to $60,000 a year for all the event during the year that might apply.

if we hit the $60,000 fee waiver can we'd allow 50% off for other events. finally we have discounts for our pop-up rfq vendors. we're working with the purveyors. we want to offer a similar reduction to them as we would to the thon profit events. -- non-profit event. i want to recognize the staff for helping me put this together. we'll take your q and exparks q. we'll take you through action expwz the rates would go into effect september first. thank you, commissioner. >> thanks rebecca for your presentation. let's open up the public comment. is there any public comment in the room? seeing none, jena will provide instruction dz now for remote

participants. >> thank you president adams. at that time we'll open the queue for nep on the phone who would like to make public comments on item 11-c. please dial *3 if you wish to make public comment. comments will be limited to three minutes per person,ed queue is now open. please dial *3 if you wish to make public comment. at this time there are no members of the public wishing to make public comment. he will. >> thank you. commissioners gilman 37 thank you so much for this report. i trust the methoddal is ji and the increases that are going to go into effect. i wanted to say i appreciate

page 0 to 2 # outlying the diversity and equity and special events. the majority of these for example, the black healing sim mitt, bike to work days are non-ticketed non-generating revenue events and they might have things for sale and i think it's point to waive the fees. thank you. i appreciate that. my only question is, have any of our tenants reached out particularly more in the maritime shed space to sayful prarmt rate go up, most -- parameter rates this would make or break me. >> i'm not aware of any requests thriek where people are that close on the edge in terms of

business operations. i welcome any comment but none of those concerns have come to my attention. >> thank you, that concludes my questions. >> rebecca, thank you so much for this report. as commissioner gilman said, i think it was very thorough. you and your team did a great job. i lot of special events section. you did a great job in looking at the entire waterfront and seeing where increases or decreases or where things need to stay the same. thank you. >> you're so welcome. >> rebecca, your work is meticulous. just very tight. i like it. the work you and your team m. any questions i had was right there. it's like too much information. it was a lot. it was. everything you want to know is right there. that's a good thing.

thank you very much. we appreciate it. there is no action require. carl, next item. >> 12-a an information the update on the port's maritime portfolio. >> good afternoon president adams he will members of the commission and public. i'm andre coleman. this is san information the presentation and update on the ports maritime portfolio. i provided a similar presentation roughly a year ago and wanted to return before commission with a brief update on our maritime portfolio and some of our business segments. i'll touch son some activities that have occurred over the past calendar year to current.

as well as touch on some strategic objectives. the port of san francisco has a diverse maritime portfolios. it's home to cruise, cargo shipping, excursion operations, can commercial fishes and recreational harbors as well as lay betterhing. touch berthing. s our current primary cargo ap racings include the exporting of autos at pirs 80 and importing of die bulk materials piers 90 through 94. our two large ers operators are pierce automotive and piers 92

through 94. the pier 80 auto operation. that's a 70-acre facility focused on the processing and exporting of all theos additionally uses include long term labor and short term leases and occasionally a large event that we'll have this september. this past calendar year was challenging. we had a 40% decline in volume due to drop if command, supply chain challenges as well as a semi-conductor chip shortages worldwide. for the first half of 2022, i'm happy to report that weave we seen an increase in activity at pier 80 with export autos and we're expecting a strong second half tht calendar year. the focus is currently on processing and exporting auto. staff continues to engage our term that the operator and collaborate with them with other

opportunities to optimize activities at the facility. we just recently hired on a new maritime staffer as well. charges mo is here today and -- charles who is here today. but our dry bulk terminals that import raw to support construction if the city have remained steady. our dry bulk include semi exption and enhance aggregates that play a critical role in supporting construction in the city. 95% of the products are sourced from the cluster of concrete batch plants and again, throughout the pandemic in the past few years we've held steady as it relates to cargo with averaging approximately 1

million metric tons much import cargoes at those facilities collectively. speaking to some of the strategic objectives of our cargo operation, we want to focus on maximizing our cargo opportunities at our deep water berths. we want to attract various types of cargoes. i previously mentioned pier 8 o, currently the focus is autos but gifnt uniqueness of the manufacturer, there are lulls at the facility so we remain focused in working with paisha to secure new opportunities in other types of cargoes. additionally we started a discussion with aggregates and their interest in executing a new long term lease at piers 92 and 94.

second objective, maintaining organizeo volumes for the three year average. last three years have been fairly strong. volumes did decline on pier 80 by 40% given the challenges. third to seek grant funding to improve aged terminal infrastructure. we have recently applied for port infrastructure development grant to focus on improvements to amadore street piers 90 through 96 complex. additionally we're working with state funding for funding to improve some of our berthing facilities to improve some of the pier 8 o facility as well. one thing i would like to add

with regards to our southern waterfront as well. in the past 12 months, we've conducted two tours with our southern advisory committee. one was water site. a lot of our partners in the southern waterfront tenants joined us on a boat tour and we were able to get them up close and personal with our operators, give them a waterside view of our facilities and to engage them in solicit feedback on some of their questions that anyo they may have or interest they may have as it relates to our maritimefuj operations and somef our industrial operations down there.2 additionally, within4qlk■ the lt ■x.]h■f$< by david beaupre andw?h■s"(?ee the teams conducted a southernjh

industrial southern waterfront as well. again, a lot of engagement withq ouréh% southern advisory commite and it's been good to engage them and understand some■ of their concerns and get their interest in what;:y5■ they'd thk see going forward. cruise. cruises is back. which is great. that's after an 18-month pause which started in march of 2020. we resumed cruise in october of 2021 made possible by the port working closingly with the department public health, department of emergency management, city attorney's office and our terminal operato÷ metro cruise. i would thriek acknowledge a couple of folks who are supportive in thosy4;z efforts n getting our port agreements in place as required by the cdc from the department of public health dr. jane gurley, city attorney as office. michael gurchow and roana sand

aler. it was a lot of work that went into getting the port agreements into place before we were able to resume cruise here until san francisco. we hosted 69 cruises and accommodated safely # 50,000 passengers. the forecast is strong for 2022. we anticipate # 15 vessels this year. cruise calls this year highest year that we've had on record. i think the previous year was 2019 with 88 calls included in that increase in vessel calls is the carnival miracle which is now homeported here in san francisco and joins the ruby princess that is currently home portd here as well. before i get into strategic

objectives. when thrsh no ships in port which now seems to be rare, we hold events at the facility to bring in additional revenues. this year we have seen an increase in bookings as it stands today, we have 32 events scheduled combined at piers 27 and pier 35 and projecting 1.2 million in revenue as a result. some of the strategic objectives as it relates to cruise is continue to collaborate with key stakeholders. 2023, california resource board requirements -- new rules reo require that cruise ships at berth need to be plugged in. rm pier 27 is our only electrified facility. we have an exception in place

that accommodate 19 calls at non-electrified berths. identify capital improperties at pier 27 do improve operation efficiencies. looking at flow of traffic in our facilities, are interest opportunities for improvements there with our -- a majority of cruise calls is the demographic of cruisers. we want to make it'ét■ more of a pleasant experience foras)■ them s?w9 then the third is o host cruise calls at piers 3032e and 2022. we've been working closely with metro cruise to accommodate this growth that we are experiencing. and utilizing piers 3032 given our challenges with only having one electrified facility.

we're targeting smaller vessels, transit calls so there is minimal impacts to that area of the waterfront. pier 3032 is a deep water berth and there is at tant to reactivate that facility. the last one to call there was if 2022. shipyard. so staff continues to actively lease or activate select.÷i2 pas in buildings with short term leases. some of the current tenants is anderson enprizes, we have the deutschea group whichcxuñ is mae construction and dredge operator and marine express afkwx harbor service tenant and we doll villeinterim short term berth he at the facility.

wove a silverado contractors i want to say q-4 of twrn. as we look at the strategic objectives, it's still focused on creating leasing opportunities that attract light maritime industrial uses looking to develop a leasing strategy for some of the historic land site buildings at the shipyard and continue to promote interim and long term berthing at the facility. some of the projects as it relates to berthing. the sea chain is the first hydrogen ferry vessel that will being berthed at the shipyard. hopefully it will be here by the end 69 summer andsiz? in 2023/2a

department of energy grant offered to city cruises and that will be located at the shipyard as well for the operation of a floating hydrogen barge. one other thing i wanted to highlight was again, we had the execution of a lease for silverado at the -- this is just the time lapse video included iñ that lease agreement was the removal of a derelict barge at the shipyard. it required a lot of attention. staff time and other resources. so this is silverado contractors. this is part of the one of the parcels where they're removing the expwarnlg will depose of it. also at that site at the cleaned

up the area that was not functional. cleaned up the piers at that site. it was good to see that barge

grant funding for harbor infrastructure improvements. some of our docks need improvements. there is an ice machine that started operations in the early 1980s at pier 45 and identify other capital improvements at pier 45 to improve fesht sis. i want to touch on expansion at the the retail fish policy that the commission may recall that we -- that you approved a pilot program for the sale of live retail crab directly from vessels. it's a quiedly popular program. folks hadn't been down at that a wharf in years and other areas that made it down to fisherman's wharf. i have neighbors that love it as well can done a couple of big crab feasts.

we'll look to expand the policy to make it perm permanent. there has been interest from some of the processors to participate in retail sales. ex-excursion water transit, the bay area's regional ferry building with 10 transportation berths including the six newer berths to accommodate sea level rise. we provide berthing and land excursions and site seeing. horn blower and alcatraz. there are schedules from gate

tborks treasure island and additionally tide line water transportation operator water transit operator have expanded service to provide weekend cruises from hyde street harbor to sausalito. that mou has been extended through deefs 2024 as we work closer to gettingf != the permat ferry landing at mission bay. some of our strategic objectives identifies strategic locations and partnerships that advance water transportation along the waterfri%p÷ deploy marketing strategies. some of our operators brought that to our attention, are there ways to where we can go digital can our marketing efforts to

promote water transportation. zag that we're continuing to work with them on. and work to identify and attract new excursion operators to existing landing facilities. some of the other maritimal activities i wanted to highlight, south beach harbor youth sailing program. port staff led an effort to connect the terminal operator at pier 8 o with the boys and girls club. last summer in 2021 through that partnership, paisha sponsored two kids from the district 10 boys and girls club. that's them in this picture. they were in the youth sailing program. happy to report that they were -- they loved it and returned this summer and in addition to danielle and grab

rela, paisha sponsored a third student this year from the san francisco pd community engagement department which supports teens from underserved communities. very successful partnership there. i believe the older sister daniella is on trook return next summer as an instructor in the program. we also have the bay a area council ferry⌟q both klamath should be we are. it should be here hopefully by pulling up along stied pier 9 south in mid-august. that will be the home to the bay area consequence. i'm excited to see that project. i think that was one of my first assignments when i started with the port in 2019. grad to see that come alive. then we've had initial discussions with the bureau of ocean and emergency management

as there is concern from the energy commission associated with ab-525 which is exploration of california ports to support off-shore wind programs here. there are nearer term projects and a larger project starting in 2030 for strong push for off shore wind farms. not captured on this slide but fleet week planning is underway. we hope to host another successful fleet week ask working with our real estate team for the return of fleet-fest at piers 3032. looking forward that. and lastly i want to recognize the work of the maritime staff across the board. it's been a busy last six months. we've had a lot of different tieches vessels call the port whether it's from government

vessels. we had a french navy vessel in last week. noa shelve festivals love to come here. gnatgeo is a reoccurring visitor. that concludes my presentation. i'll answer any questions. >> thank you for your presentation. let's open it up for public comment. any public comment in the room? ella? >> thank you. commissioners and staff and expict director elaine. i'm ellen jock co-chair of the marine time advisory committee. i wanted to tag team with andre's report because i wanted

you to know that will throughout this hard times with the covid and the pandemic, that the maritime powers committee, we have continued to meet regularly every segment of the industry here tea port has a representative or two on the committee. and we've been doing this through zoom and hopefully we'll have an in-person heating soon. but -- meeting soon. we have had hard times. no one -- rebecca gave a good report on the rents and fantastic investigation. and you know, there have been some sad times teams. i ask people what keeps them up the at night. they say wow! we're down -- business is done. but i haven't had any specific comment about a particular rent or someone is going to jump

ship. so, but i think one of the things that we are survivors. you know, maritime industry, we survive a lot of storms. and so we're very exuberant about the economic recovery that is happening here. one of the really basic reasons for the committee to exist is we have been keeping all the tenants informed upt day. i've been scheduling updates in waterfront land use plan, every project gets a schans to be heard. piers 38 and 40 very supportive. i felt it important to bring the comments of the committee through there report rather than specifically when simon presented. i am personally on the permitting team for that.

i felt it more important for me to represent the support for the maritime committee on that. and everyone who represents the industry on. piers 30 and 32, we've been supporting in that. all the new business at 68 and 07 has been terrific. the cruise industry uptick has been great. the wharf, i did ail personal reconnaissance. i was there all the chyme during covid jogging. fourth of july was fantastic and cdtf the maritime park was just absolutely fantastic. and i just want to say that the whole historic pier. we're keeping the committee up-to-date and manufactured. we're there to help you out.

we've had tours and i've been personally attending all the committees, the northern and southern committee advisory committee to keep them linked up with the maritime. thank you, i wanted to just comment and thank andre and staff for everything they do and you too. thank you. >> thanks ellen. is there anyone else for public comment in-person? at this time jenica will provide instructions for remote participants. >> at this time we'll open the queue ifer anyone on the phone who would like to make public comment on item 12-a. please dial *3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limitedxu three÷ minutes per to person. please dial *3 if you wish to make public comment. the queue is open.

at this time there are mo members of the public on the phone wishing to make public comment. >> thanks jenica. commissioner gilman. >> andre, i want to thank so much for this report and the details in it and the staff report. it was so refreshing to see that our maritime is coming back after the pandemic and is continuing to thrive. it's great around the cruiseships and additional homeport. i want to commend you and your team. it's important from a trust use ask civic use and historic use of a fishing and piers that have been used since 1849. it's really, really refreshing. i also wanted to give a shout out to your team. i think it's important for us to remember that other ships view

san francisco as a place to come. fleet week is through the united states. i was touched by the french vessel that chose to come here and start out in tahiti to come here and have their crew experience san francisco. like many other sofort military ships that come, they come because of the service we offer as a port. can i wanted to give a shout out to dominic who met with the admiral of the marines. our lieutenant governor was there and the french consular. this is exciting to see this maritime program so thank you for your report. >> thank you commissioner gilman.

>> thank you for this report. it's hard to bref you've been here three years. you and your team are doing an amazing job, one of the key things is bring people to the waterfront and you have been doing that in so many different ways. thank you. and ellen, i want to thank you for your commitment to maritime and to the port. we can always count own. thank you. >> thank you. >> andre, i have to start off, i was watching you back there. i know4)ju[z it's been cold in s room. and you were back there and i could see you struggling to keep your eyes open and i know because i was struggling up here. it's been freezing here. that's another thing that we have to talk about on list. that being said, you have taken

maritime to another level. your dignity and class, the way you approach this. you're intel subsequent the way you think. you put your own team in place and one thing it's important to say, paisha is one of the only shipping companies that still is owned by their own family. i know george paisha. most of the shipment companies are owned by foreign companies who put money back into this country or pay taxes. old man paisha. i know george runs it. i know him. they care about the community. they care about workers and the port. water transport so so important. with the ferries, water taxis,

and really right now, this offshore wind has taken offed. we've been working in vancouver quawg and a lot of different places. it's something and even governor newsom in his budget is dealing with off shore wind and we need to get out front. it's visionary thinking. one day they're getting all cars to be electric. it's going to happen maybe in 2030. that's qur things are going. i think getting out front and i hope that the port can get in on the ground floor of doing what is good with this off shore wind because it's going to be big. it's going to create job not only for the ibu, other unions, but it's the future. i think we got engaged and i'm glad to see you're out there trying to get more general cargo. i think that's important. it's good to see that the cruise

ship industry. that was $120 million terminal. i was on the original commission with ellen. i appreciate her because ellen is one of those that she is here for the port. and she wants what is best. and she has no agenda. she is a true believer and we could never thank her enough for the time she donates. she a cares with the port and wants generations to come to enjoy. that is good. and thank you so much young man for the work that ear doing leading up maritime and i'm glaf your persons had left. but you've replaced them and you've aloud someone that works within the port to step up.

you've given them the opportunity to shine. when i look up in the sky, i see a lot of stars. that's i good thing and i appreciate it. keep doing what you're doing and you have the support of this commission. thank you. >> thank you president dams. adams. >> item 13-a expution possible action on the port executive director salary per student to b-3-581-h. resolution 2239. >> good evening commissioner. i'm katie, the port's deputy director of finance and administration. i'm here this evening to ask the commission to set the base salary of the port's executive director for the fiscal year that began on july first per charter seconds b-3.581-h. the charter sthaits executive

director salary may not exceed the prevailing salaries paid those holing similar positions in comparable maritime comoiment. to understand that universe, port staff conducts a survey of salaries. staff gathers information on the salaries of similar city departments. if may, staff surveyed the salaries of port directors in eight major west coast ports focusing on the five ports who have scwurs diks only over a seaport. for all ports, the average annual sally for executive director is $352,128. for the five seaports, the average director salary is $325,835,000. the executive director valerie

today current sli only $318,000.942000. it was last increased in january of 2020. most city department heads are represented by the city's municipal executive employees association. however, the charter requirement that the port commission set the port executive director salary precludes the executive director from being represented by an employee organization. while the port director is not represented, the port commission has historically approved cost of living adjustments for the position based on the mea contract. the city recently soarnted a new three -- new two-yearly mou with mea which includes wage increases in each of the next two fiscal years. a 5.25 increase implemented on

july first, 2022. a 2.5% increase that will be implemented on july first 2023 and a 2.25% increase to occur on july 21st, 2024. the mou does stipulate that the 2023/2024 wage increases may be delayed by six months. if the joint report that the city yieshes in march of 023 estimates a budget deficit of 300 nldz million dollars. the port commission may choose any number of options regarding the executive director's salary. in order to give you a sense of two potential options, i have created this slide showing option a and option b. option a would apply the mea,

mou increases to the executive director's current salary. so, by the end of that three -- those three different cost of living increases, the executive director's salary as of january first, 202-3424 would be almost $352,000. option tbharks is displayed on this slide would include a 7% salary increase for the executive director that was given to other mea employees previously, but that the executive director did not receive. and then add the newly approved mea/mou increases to that 7% increase. allowing the executive director to catch up to where other mea employees and other city department heads, those

increases that they received and apply the new increases on top of that. havinged a that, where this commission would like to place the executive director and the salary increases, cost of living adjustments you would thriek make are a policy matter for the commission. staff as you will note left the increase that is clid in the resolution that's before you today blank. carl will fill in that will information based on the increase that this commission would like to entertain. with that, i'm happy to answer questions. >> thank you katy for your presentations. let's open it up for public comment. any public comment 2349 room? -- in the room? seeing none, jen ricka will provide instructions for remote

participants. >> at this time we'll open the queue for anyone on the phone to make public comment on item 13-a. please dial *3 if you wish to make public comment. comments will be limited to three minutes per person. the queue is now open. please dial *3 if you wish to make public comment. at this time there are no members of the public on the phone wishing to make public comment. >> thanks jenica. okay. commissioner gilman. >> i just wanted to make comments to pie observations during the pandemic in the last four years of my observation of

director and her perform absence. i believe director forbes is one the hardest working department heads in the city and county of ?rks. san francisco. i witnessed her only growth as a leader and how she worked to strengthen her team and build other bench and how she is committed to equity inclusion and ensuring that the port become an antiracist organization. many directors throwment the city and county are hard working, i have the privilege to interhatly work with director forbes as a commissioner and i'm so impressed on how hard she works and steered the port during this pandemic and hue she's focusing on the economic recovery. i highly support us bringing her up to parity with other department heads. most who are men and making her have an equitable pay for other

port directors in this country. >> vice president brendan. >> katy, thank you so much for your presentation. i think that we here at the port are so lucky to have elaine as our executive director. i've seen her grow over the years when she was in katy's position and became executive director and she's done a phenomenal job. over the past two years through the pandemic, through economic recovery, through resilience, through four major development projects. you name it. while building a great team. we have one of the best directors. we have one ofwthe best neems the city. teams in the city. everybody is trying to steal you

guys. i really -- and then she's done it all with no salary increase over the last couple of years. she's just so selfless and so many ways. i really appreciate and respect her as a expern all that she's done for the port and our waterfront. >> i will say that director forbes, you stand out from among your piers. i remember when i came on the commission you were in katy's exposition you've grown and let's be honest, this set of commissioners, we ain't that easy to deal with and you've been able to deal with the commission. you've been able to deal with the public. you've been able to motivate your staff. your staff -- the highest regard that you can have is when your

staff respect you. you treat everyone fair. i've known that you have went to bat for your staffer. and this will has beena hard trial. there was no manual that former director forbes left to say what too do when the covid epidemic hit. and weave all had to go through this together. sometimes when things go bad, there are people that will walk away. but you buckled down. and you led by example. you were resilient, you and your staff, you worked with the commission. and you had a big car to drive. and you drove it. we're not out of it yet. i remember when doreen one of

our commissioners that is not with us any more said to you, were you committed and you said by all means i'm committed. i'm definitely committed to the port of san francisco. and i know myself that you would have of could have people recruit you. for you, it's not about the money. you generally care and the led ed lee gave you an opportunity. he really did. and you want to see this thing through. i want to say the leadership that you've done, you have laid out a bench of people -- a team light warriors. people that come off the bench and play. with my, drain, and rebecca and you con tantly are always talking about them.

you never talk about yourself. katy, you go -- they're the ones that make this happen. er this ate engine. i happen to maybe be the coach but they're the ones doing the work. that speaks to what a real leader is. they motivate knowing that some point in life they move on. the port of san francisco will continue. vice president brandon will read the resolve into the roshed to katy. into the record to katy. i believe in giving people their flowers when they are alive. thank you director forbes, i know what kind ever person you are and you don't like to be out front. that's the least thing you like is pib listity. you like to hide hienltd scenes

and rather see your team get all the galore which. as long as it's winning for the port, that's all. >> the salary will be -- $359,184 executive july first 2022 representing a 12.25% increase. >> yes, ma'am. >> got it. i did the math. >> i second that. >> we have a motion and a second. all those in favor. any opposed? now there is a notion adopt the resolution. we have a motion and second.

all those in favor say "aye." any opposed? resolution 2239 is adopted. carl next item. >> new business. >> commissioners, i didn't record any new business. did i miss anything? >> i would love -- i have a request to get an update on way finding and signage. for everything we discussed today from economic recovery to water transportation, i believe the port is in need of new signage and way finding. i know we've applied for some grants, but walking around the city, this is one area that we can do better. our friends at park and rec have historical documentation their new park on bay street and i think we could do better to

promote economic activity and education. i wanted to get an up date with that initiative. >> i would like an update on [indiscernible] it's been a while. broadway street site seems to stay a parking lot. >> okay. you got that? >> i got it, thank you so much.

>> so the march started in uch. 2004, there was a lot of action going on at the time against transgender people. so an email thread went around and everybody decided to meet here at the loweris park and really send out the message to the community that we're here and just because the legislation does not validify who we are, we are still here and we deserve to be loved and empowered. >> so for me trans march is a safe place where i will not be quiet and i can be unapologetic against my trans siblings to be in the community and say okay, you can bring yourself to the

safe places. we're normal human beings and we can exist. >> this is one of the largest trans marches that happens in the world and this space is ours. we can at least have one day where we are seen and not over shadowed by the greater pride, hostilities everywhere. trans march means so much to me. but it means so much more for me and my community. >> we really felt it was

important to have a special day just for transgender people where we can have our voices lifted up and specifically seen. >> after coming, i feel so proud of this place and also this whole movement. this joy is strong. so maybe trans march that is a lot of joy. >> my partner is transgender and you know ,z we've been together for 25 years.

and i learned a lot about trans generaleder and her what it means to be transgender. to give people pride of who they are they are beautiful and an important part of society and they should have equal rights. >> for me being here is an act of celebrating myself and feeling okay in my own skin. >>ed we have a lot of momentum here at trans mart, we have a lot of community for support from our sponsor to our tal ept, everybody is happy to support this event because we

all want to be together and after two years of not being able to be together this year, people were especially excited. [applause] >> everything we do in the tenderloin, we urban outfit. here, this gives us an opportunity to collaborate with other agencies and we become familiar with how other agencies operate and allow us to be more flexible and get better at what we depo in the line of work in this task.

>> sometimes you go down and it's hard to get up. so we see ourselves as providing an opportunity for the unhoused to get up. and so i really believe that when they come here and they've said it, this right here is absolutely needed. you can't ask for nothing better. >> the tenderloin is the stuff that ain't on the list of remedies, liked the spiritual connection to recovery and why would i? why would i recover? what have i got to live for? things like that. and sharing the stories. like i was homeless and just the team. and some people need that extra connection on why they can change their life or how they could. >> we have a lot of guests that will come in and say i would like -- you know, i need help with shelter, food, and primary care doctor. and so here, that's three rooms down the hall. so if you book them, they get all of their needs taken care

of in one go. this is an opportunity for us here in the tenderloin to come together, try out these ideas to see if we can put -- get -- connect people to services in a

>> by the time the last show came, i was like whoa, whoa, whoa. i came in kicking and screaming and left out dancing. [♪♪♪]

>> hello, friends. i'm the deputy superintendent of instruction at san francisco unified school district, but you can call me miss vickie. what you see over the next hour has been created and planned by our san francisco teachers for our students. >> our premise came about for san francisco families that didn't have access to technology, and that's primarily children preschool to second grade. >> when we started doing this distance learning, everything was geared for third grade and up, and we work with the little once, and it's like how were

they still processing the information? how were they supposed to keep learning? >> i thought about reaching the student who didn't have internet, who didn't have computers, and i wanted them to be able to see me on the t.v. and at least get some connection with my kids that way. >> thank you, friends. see you next time. >> hi, friend. >> today's tuesday, april 28, 2020. it's me, teacher sharon, and i'm back again. >> i got an e-mail saying that i had an opportunity to be on a show. i'm, like, what? >> i actually got an e-mail from the early education department, saying they were saying of doing a t.v. show, and i was selected to be one of the people on it, if i was

interested. i was scared, nervous. i don't like public speaking and all the above. but it worked out. >> talk into a camera, waiting for a response, pretending that oh, yeah, i hear you, it's so very weird. i'm used to having a classroom with 17 students sitting in front of me, where they're all moving around and having to have them, like, oh, sit down, oh, can you hear them? let's listen. >> hi guys. >> i kind of have stage flight when i'm on t.v. because i'm normally quiet? >> she's never quiet. >> no, i'm not quiet. >> my sister was, like, i saw

you on t.v. my teacher was, i saw you on youtube. it was exciting, how the community started watching. >> it was a lot of fun. it also pushed me outside of my comfort zone, having to make my own visuals and lesson plans so quickly that ended up being a lot of fun. >> i want to end today with a thank you. thank you for spending time with us. it was a great pleasure, and see you all in the fall. >> i'm so happy to see you today. today is the last day of the school year, yea! >> it really helped me in my teaching. i'm excited to go back teaching my kids, yeah. >> we received a lot of amazing feedback from kiddos, who have

seen their own personal teacher on television. >> when we would watch as a family, my younger son, kai, especially during the filipino episodes, like, wow, like, i'm proud to be a filipino. >> being able to connect with someone they know on television has been really, really powerful for them. and as a mom, i can tell you that's so important. the social confidence development of our early learners. [♪♪♪]