>>. >> acknowledgement the san francisco fire commission acknowledges that we are on the unceded ancestral homeland of the ramaytush ohlone who are the original inhabitants of the san francisco peninsula. as the indigenous stewards of this land, and in accordance with their traditions, the ramaytush ohlone have never ceded, lost, nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. as guests, we recognize that we benefit from living and working on their traditional homeland. we wish to pay our respects by acknowledging the ancestors, elders, and relatives of the ramaytush ohlone community and by affirming their sovereign rights as first peoples. . >> a motion to approve the minutes ago of september 12th. all in favor say, "aye". >> aye. >> any opposed? motion passes. the minutes of september 12, 2023 are

2023 are adopted. i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation, under god, indivisible, with liberty and justice for all. 4. announcements a. announcement of prohibition of sound producing electronic devices during the meeting: please be advised that the ringing of and use of cell phones and similar sound-producing electronic devices are prohibited at this meeting. the chair may order the removal from the meeting room of any person responsible for the ringing of or use of a cell phone or other similar sound- producing electronic device. b. announcement of time allotment for public comments: please be advised that a member of the public has up to three minutes to make public comments on each agenda item unless the port commission adopts a shorter period on any item. public comment must be in respect to the current agenda item. for in-person public comment, please fill out a speaker card and hand it to the port commission affairs manager. for remote public comment,

instructions are on the first page of this agenda. during public comment, dial *3 to be added to the queue. an audio prompt will signal when it is your turn to speak. to listen to the live meeting and make public comment remotely: dial 1-415-655-0001 united states toll (san francisco) access code: 2661 297 9775 ## dial *3 to be added to the public comment queue for the item you would like to speak on. 5. public comment on items not listed on the agenda public comment is permitted on any matter within port jurisdiction that is not an agenda item. no port commission . >> i have one person. ms. blackstone. public speaker: good afternoon. it is my responsibility to ensure that wireless communication network is reliable and robust and complies with the fcc with the city of

san francisco. we value that relationship and would like to see it continued. unfortunately due to a new and unprecedented provision we could not move forward. the pier 94 is located in the hunters shipyard and that helps not only the residents and the workers, but the ecology department and the san francisco police department and building hospital and facilities in the event of a disaster. from the public safety standpoint is one of the most important sites of our network and needs to be redeveloped immediately. we have been

working to relocate that slot. every location that has signed with the port has been a stand-alone fleet. if it's only one site, it affects that one site and not other sites. unfortunately it would require at & t to lose its entire investment in all of its outside leases at the same time as a result of a problem at one site. at & t is creditworthyey and we have been standing with them the whole time and no reason to remove this provision. at & t cannot move forward with the port and the bayview hunters area will lose this. the

default policy is not adopted by the port commission and it is unreasonable and will have an adverse impact on the properties. i know this is not on your agenda today, but i'm asking you in the interest of public safety to avoid issues with this area that is very critical and we need to move forward with this project and to pay the port for continuing serving the first responders and residents and visitors for reliable coverage. thank you. is there any other public comment?

public speaker: good afternoon. i'm speaking on the same issues. the fault provision is unprecedented. i have the privilege of documenting every wireless lease with the company with sf mta, the airport, the fire department, the department of real estate, and the port dating back now for decades. it's been a privilege to do this. we have leases on pier 40, pier 50 and now a pending lease on pier 94. we wouldn't be here if it weren't so absolutely urgent and an emergency and what we consider to be a public safety issue. we understand it is not agendaized here, but an unprecedented fault provision would mean that at & t would lose its investment at pier 40, 50 and 94 at the same time over

any default on a single lease. i see there is a representative of the giants here. this is a real curveball, commissioners, and we are asking the port commission to provide guidance to the staff that this has no place in this lease particularly with the tenant of the reputation of at & t. thank you for consideration of the request. . >> thank you. >> good afternoon, commissioners. we ask staff to continue conversations with at & t. we understand the lease issues are complex and with board time, this will allow both parties to come to an agreement. thank you very much for your time. thank you. is there any other public comment? do we have anyone on

the phone? there are no public comments at this time. thank you. public comment is closed. . >> we have been working with the real estate team and our team. the fault provision is a compliance tool which is what landlord's use to be sure the tenant is compliant with all of their agreements and what we have been using now post covid world and compliance is critical. that's why we have cross defaults in our leases and here we are absolutely willing to work with at & t and asking them to provide alternative language and to discuss with us other ways. they are a compliant tenant and would expect them to be compliant with their lease. we do not know why it would

create such a challenge. i will turn to my staff and my team and work with them in good faith. thank you, i really appreciate that and please keep us updated on the progress. thank you. next item. . >> 6. executive a. executive director's report • economic recovery • equity • key project updates . >>. >> good afternoon, president and members of the commission. i would like to honor the passing of the great diane feinstein. our community is grieving her passing. she was a fearless leader and way ahead of her time and true to a lot of important things to the nation and also to the port of san francisco. she made big impacts here from opening pier 39 famously in a

bathing suit because she lost a bet because the product was delivered on time to bring back fleet week and making it the huge event that it is today. she also made sure the fire boats were up and running and the facility in good order and very attuned to safety related to port assets and also was a lynch pin in getting us the study and which was also for the resilient work and she meant so much to us and the port for san francisco. we had an amazing fleet week for the past three days from the parade of ships to air show, we had clear weather, clear viewing, it was spectacular.

someone said they went on for an hour and it was worth the wait. our team really worked hard. our maintenance crews were under staffed and there were some challenges hiring but they worked double time and over time and you could not tell we had fleet week or parade per the fisherman's warf right after. they were very good. there were lots of pivots and were on board and the security team worked around-the-clock for us and i'm very proud of our team. when i speak for a pex, we are ready for them because we did these two events together. to kickoff fleet week we did host a pier conference and welcomed mayor pelosi and mayor breed.

it was a great event and at the event we were reminded of emergency preparedness and to be resilient for our people and reflecting on diane feinstein and the work that mayor breed did in 2018 with their partnership to take on a bond of $45 million for the new seawall and one in three from the whole nation from our army corp of engineers for the flood study and what both those actions and mayor steve pelosi did and the staff did to really set the stage for resilience is quite remarkable. i want to thank the leadership for the work. and more to economic recovery.

the governor signed this into law. we directed staff to put pier 32 out with an rfp for the fourth time. we worried what we might accomplish here with the public process with asking for a major public value like resilience, sea level rise protection, earthquake protection, deep water berth, maritime improvements. we got a project proposal that the state land commission did not oppose moving forward in our trustee position of custodian of state land. this will allow us to move forward on the project and shows that major innovation is possible to solve challenging problems. i want to put everybody's work into this project.

i do want to note back to fleet week, pier 32 we could not put into safety aspects of the direct response because the condition is so poor that it is not ready. but because of that problem, the d.e.m. director and the director directed us to keep that work in operation and this project will speak for us. i'm very happy that we are moving that along. pier 39 also had a birthday. they turned 45 and with mayor breed and senator weiner and commissioner lee, did you join? no, i didn't. . >> you did not. the leadership came and i would like to thank them for their work.

they were just amazing. to a peck, november 12th-19. major influencers will be here and which is great for san francisco and our state and nation and coming to the water front. we are getting prepared to be the best we can with a safe clean vibrant and we did the best we can with fisherman's warf and will be do this for a peck. we will have more signage and in community with our pylons in san francisco. now there is activity underway

in the southern water front. i'm pleased to share that pier 80 was an amazing event last week. while there was yet another music event on the other side of town on gold gate park, we had 50 performers and 50,000 people enjoying the water front festival. also we are staff is developing a proposal for cleaning roadways, public gathering places where the city meets the community and we want this vibe rans to reflect the community

and also be improving signage, pedestrian bike access and more so we can really bring and discover the unique beautiful open spaces and places embedded within our industrial uses. so i'm looking forward to staff working on that. thank you, commissioner, brandon for your leadership and working with us on the plans and looking forward to come back with more detail. moving forward with the dog park the design is understand way and will be for the future in 2024 and the funding in place and we are working on the project. in closing, i would like to mention a couple of transitions. we are sad to see our director move on but happy to see mr. young, who was reporter here in

san francisco. he's a san franciscan. welcome, erik. also rod has left the port. he has done so much for us and left the port after six years and did great with inspections and started the program of really great inspections and understanding the cause and he did tremendous work to get our data and information up to snuff. we will miss him very much and i will be working on a process to replace that position. i want to thank you commissioners for guiding this commission. that concludes my

report. . >> is there any public comment? there is no public comment. thank you. public comment is closed. commissioner harrington? thank you, madam president. thank you, elaine. once again, it's stunning to see how much is happening and would like to thank the staff for all of those things. you mentioned diane feinstein. she was the mayor when i first came to san francisco and we spent a lot of time working on water issues and wastewater issues and she was so helpful to the city on so many levels. she will be greatly missed. am i crazy or are we not able to see outside? first it was dark. thank you for that too.

[ laughter ] . >> thank you. . >> commissioner lee? i really do not have much to say. for the fair, are we going to designate the area. are there going to be small businesses around there. have we decided where we might put this thing? yes, i'm happy to give an update. we have been working with sky star who is interested in relocating the ferris wheel to golden gate park to triangle park that is on the north side of bodine restaurant. that idea that that ferris wheel would

come for a peck and temporarily situated through permitting and working with our engineering team and waiting for their engineering team to show how that might work and get the right permitting and analysis. we have gone to community on it. we are working for a time should it be successful for a peck and will be a great attraction for family-friendly and would be great at the warf to experience this. we'll know by that time. in addition, i watch the news a lot and the incident we had, not we, but the public works inspector about the illegal carts. so we put this ferris wheel up.

will we have adequate safe guards to be sure that small businesses in the area benefit from this rather than having a whole gang of illegal street carts and things. commissioner, thank you for mentioning the issue with the cart. that was an enforcement issue that was multi-departmental led including port, public works and san francisco police department for our safety. i want to say it's hard work out there. it's very very hard work and our staff has been at it for a while. what happened there is unfortunate and the team is working on that not happening again, but we are working hard on enforcing against unlicensed vending. it has a lot of health problems. the food is not safe. the carts are not safe, we had one that had an explosion last year and the sidewalk access and

illegal marijuana and alcohol being sold and it is a real problem. i want to say that while the incident was not as we intended to go as a public agency and i want to thank the staff for their really hard work. . >> i want to show and it is tough and bringing the ferris wheel will bring more attention. . >> i want to say that the ferris wheel is an opportunity to manage and licensed vending and other activities there. we think that we can set the public space up in the queueing to help us achieve the goals in that area. . >> okay, great. thank you. . >> thank you, director, for your report.

i want to be sure that people got to participate in the activities living a stone's throw from the event. what a phenomenal event and seeing the whore community share and the economic boost and all across the city but particularly north beach and chinatown. i would like to commend staff for the work they did. it was spot less and clean. i really wanted to commend everyone for a great fleet week activity and congratulations for pier 32, and that would extend those along the water front. that's really really great news. so i want to thank the staff. people forget we are seven 1/2 miles of water front that we maintain compared to sometimes other aspects of our city. i think the port does a really great job and i wanted to thank

everyone. i did want to take a moment to express both my personal and public service support. sorry. i feel we need to acknowledge the acts that happened saturday and the violence that's happening in the middle east. those palestinians are our brothers and sisters. i want to acknowledge on behalf of the commissioner, the port city under attack right now on terrorism, that we do not support violence and we should acknowledge them today. thank you. . >> director adams? great report. i appreciate what you said about

the late diane feinstein. i did a lot of research because i didn't grow up here. but when harvey milk was killed and the mayor was killed, she took over as mayor. one thing about leadership, it's not a blueprint that tells you what to do. leadership is when everything goes wrong, managing is when everything goes right and she stepped up. to sister gail, i know, i feel your pain. it's been a crazy week to see what's happening back in our nation's capitol and everything is out of control. we are living in these crazy times. but it's good that we are here in san francisco are starting to see things turn around. i felt for a while we kind of had an image problem. i'm glad for fleet week success. i think that is very important.

i think having this summit in november, president biden and from china and the heads of state and want to acknowledge our commissioners and governor coming here and filling the vacancy of late ms. feinstein after an african american woman that was lesbian and trans. that showed the backbone to the governor who is under a lot of pressure and that showed there were many left out and i am glad

that governor newsom recognized that. let's think back on the song by the temptations. the world is --. >> thank you for your comments. it's a difficult time right now, but it's so phenomenal that the port is doing well but hard to say with all that's going on in the world. so i'm really happy that week was a success and the government didn't shutdown and it was allowed to happen. and senator feinstein has been a champion to the port as mayor and senator.

she was a great asset to the port and our bond measure, all of it is because of her leadership and her guidance. that was a huge loss for us and for everyone, i'm sure. say happy birthday to pier 39. welcome, erik. you definitely have just run. you have not been able to sit down since you got here, right? you have been here a week now? yes. welcome. the port was from all the way to hyde street harbor was a ball of activity over the last couple weeks and hopefully it lasts through a peck and throughout our economic recovery. thank you for your report, elaine. the next item, please. 7. consent a. request approval of a proposed new lease with recology san francisco for approximately seventy-four (74) months for operation of a single stream mixed materials recycling center

at pier 96. (resolution 23-42) b. request approval of proposed lease no. l-17093 with anderson enterprises, inc., a california corporation (“anderson”) for approximately 116,343 square feet of paved land and 2,010 square feet of shed space at pier 68/70 shipyard for a term of three years with three mutually agreeable one-year options to extend, subject to board of supervisors' approval. c. request authorization for the port to enter into an agreement with the office of community investment and infrastructure (ocii) and the recreation and parks department (rpd) for the port and rpd to maintain and operate certain mission bay parks that will be funded by community financing district

# 5 (cfd #5) revenues until 2044. (resolution 23-44) . >> so moved.. we have a motion and second. all in favor say, "aye". >> aye. >> any opposed? . >> we need to open public comment. . >> is there any public comment in the room? seeing none. there are no callers for public comment at this time. thank you. all in favor say, "aye". >> aye. >> any opposed? . >> resolutions are adopted. next item, please. >> 8. real estate & development

a. request approval of a resolution authorizing the director to execute a memorandum of understanding with the department of homelessness and supportive housing (“hsh”) for temporary use of a portion of seawall lot 330 for the continued operation of the embarcadero safe navigation center for a term of 2 years with one - 2-year option to extend. (resolution 23-45) for callers who wish to make public comment on this item, please press star 3 to raise your hand to comment. good afternoon, president brandon, adams, commissioners. i'm sandy, your property manager with the port and i am back again to talk about the new mou with the hs h for the navigation center located at 330 on the embarcadero. as you know the current mou expires at the end of this year. we have been working with hsh to

enter into a new mou for a new year with an option to extend two years and this will give the opportunity to occupy the site at this location and continue their operations there. the two year term could be extended, or the option could be exercised for two years. we have worked on this with the approval of the port following some certain guidelines that need to be met including standard reporting, continuing to hold the advisory committee meeting. we have kind of changed and adopted some things with regard to point in time counts. the agreement will require them to do the point in time counts and incorporate counts of people their seeing and some of the things that we are trying to address in the comments and feedback from the commission and

the community. we can also terminate this agreement on six months notice. should we continue with the project or plan development of this location. i understand that six months is a short timeframe. the expectation is that we'll have some kind of heads up and continue to work forward and continue working with hsh as the development approaches to provide as much notice as possible on the pending determination. i'm going to let hsh follow-up with their presentation and information from them. thank you. . >> good afternoon, commissioners, i'm emily cohen at the department of public

housing. i'm not going to repeat the information from a few weeks ago but would like to follow-up on the questions that were asked at that point. as you know we are requesting a two year extension with an option for two additional years to continue to operate the embarcadero navigation center. one of the questions we received about equity on our good neighbor policy on port property. these are very different sites in different areas of town and want to talk about what we do standardize and customize. we work with a host of communities across san francisco. we work with each community to identify the unique needs of that specific area and work with them on the specific challenges that might exist. we have a standard good neighbor policy that is consistent across all of our shelter programs and

was enhanced when we did the embarcadero and now put that into practice at multiple shelter sites including water front and pier 94 trailer site. central water front was the first navigation center for which we issued an inter departmental agreement for the roles and responsibilities that was the site model for embarcadero and that has helped us both at the central water front and embarcadero. we have not done it for pier 94 because of residential development. because of concerns and on our

conversation with the association and other neighbors of the central water front and the bayview station, we determined the passing calls was the type of sf p.d. support they were requesting for their navigation center. here it's a much larger site, 200 beds versus 60 and we have a slightly different approach with the officers at this site. just to get a little bit more into the inter departmental agreement and the roles and responsibilities on the safety zone and the agreement has been effective at holding each other accountable and working on the

relative agreements on the quarter community advisory meetings and accountability in managing expectations for the different departments and you will see on the slide the different departments that be signatories to this agreement. our big role in this is to facilitate the quarterly meetings to make the shelter beds available to work well and to pull the partners in when we need more support. we were asked to provide a little bit more data on the outcomes on the embarcadero navigation center. since the site opened in december 2019, we served nearly 800 unique guests at the site. given the operations of this site, the beginning was at the very beginning part of covid, we decreased capacity at that time

and we really paused on housing exits and focused on maintaining the community at the navigation center and standard places in hotels across the city. we did not navigate a lot of housing during the first two years during the pandemic when we were focused on the shelter in process. since then, 200 guests have gone to permanent housing and this is a shelter program that are far lower than our ideal all across system. what we have done is increase funding to all of our shelters to right size case management ratio and added expectations around housing, documents, readiness and getting shelters ready for tenants and that system has been helped by the

centralized housing placement system and now using that responsibility back with the shelters with the additional resources to try to really focus moving people through shelter rather than having folks stay indefinitely in shelters. i believe that answers many of the questions that were brought up in our last hearing and i'm happy to answer any other questions that you might have. thank you. thank you. commissioners, is there a motion? so moved.. is there any public comment in the room? i'm sorry, i forgot to do my card. good afternoon, president brandon, vice-president adams, commissioners gill man,

harrington. i have been speaking for the vice-chair at the navigation center. i personally recommend the navigation site until the public process. they should not lose these 200 beds as an opportunity to exit homelessness. before commenting on the mou proposal and the inter departmental agreement, i want to pause and commend the extraordinarily dedicated port start and h sh staff supporting this center and advisory group. in addition to the port staff working in the background that i don't getsee often, i have

been extraordinarily happy to work and before her, randy who has been in their work and clear communications and a lot of side discussions with me. also at hsh, ms. schneider, and made sure that each communicator with the advisory group made sure they moved the needle. last month i was with the chair of the advisory group that expressed her personal support for the new mou with a couple of

important caveats. and those were that we needed some guarantee that the foot beat officers were staffed at the levels that the mou was committing. it wasn't the case in this first mou and the staffing was not always adequate. although southern station bent over backwards to do that but we know that police had staffing issues. i will clear up my remarks because i know the caveat had been put up to updating the mou that needed those staffing standards for the foot beat officers will become criteria for approving should there be an extension request that it would

be a criteria for approving and we took the pit counts and were undermining the ability for the community. we thank this forum for being able to bring those up and thank hsh and all signatories to this group. thank you very much. do we have any other public comment? >> there is no public comment at this time. >> public comment is closed. commissioner lee? >> definitely the navigation center works really well, i think, as far as making people safe. i spent 15 years in that neighborhood. i was reading the addendum, the letters we just got. i have a question. yes, six months does seem to be kind of a hard stop to move

notice for all of these people. is there a way, obviously there is going to be permitting and will take time for this project to be permitted and get all the financing together to really break ground. is there a way to at least let them know that all the permits are in place, not at the six months, but maybe a year, you know like a few months before that. give them a prewarning before the six months? absolutely, that's the intent. we'll be communicating and working with our development group and understanding how the processing is going and committing and as that process is moving forward and we are getting closer to realizing that this is happening, we know it's going to be coming up shortly, we will keep hsh informed so they can start making plans. my expectation is that we will be communicating with them and

they will know well in advance that this notice is coming. . >> we know there are construction delays and i hate to stop this and this sits there for six months. that'sall as far as comments. commissioner harrington? thanks so much. . >> to go back to some of the conversations that we have had. i'm still concerned about security and safety. the wording of mou talks about continuing to do what we do now kind of, right? and what we do now, i don't think is sufficient. and i'm not sure it ever will be. if i actually had enough police

officers, i'm not sure i will find them on this beat. there is always a hired priority but i don't think that is a reasonably good solution long-term. and when we try to put navigation centers or anything for disadvantaged people in the city, neighbors always come back to say no, it's unsafe. we have convinced the neighbor that this is a good thing in many ways. wouldn't it be great to do with enough safety security issues to close that loop so if you want to open in the richmond centers they can look at it to say we have dealt with those. i don't want we have dealt with very well. are there anymore things that we haven't heard that you tried or is there something that you get from monthly reports from police that mean something and you can say you had three people and it

worked that one day. or what else would work? thank you, commissioner for the question. i have had several conversations with sf p.d. leadership on this issue and i did request a commitment for the police officers to be assigned to this commitment and they have been very helpful to hold them to this, but i think the staff report that they share every month also demonstrate that there is not an increase in crime and we have not seen property crime or personal violence and a lot of these concerns we have not seen them come to fruition and because of the foot beat officers and in part because it's a really helpful tool in breaking down

stereotypes. the crime stats are demonstrating what we hope and what we thought we know that home shelters don't increase crime in the community and is one of the most powerful tools of having these monthly reports and you can see where the neighborhood fits in with the overflow of city. it's quite helpful in that way. unfortunately sf p.d., i have been in conversation with them about coming today and they got pulled as happens, but i think they have been very vocal in their support for this. >> do you get reports that tell you how often they have been out there? i don't. . >> do you know if they can do this? >> i can request a report. >> if you can get a report that shows that they actually show up and would like to get the crime

stats? the crime stats are on the website and that is part of the regular reporting. >> thank you. thanks so much for the updated report. this is along the line of questions but from a slightly different perspective from commissioner harrington from the department. i'm concerned on the counter point that we are making these agreements for these officers but we know from national data and from statistics and i say this with absolute respect to the neighbors in this neighborhood, homeless shelters, affordable housing does not increase crime. we are asking the city to take a very valuable resource and probably the reason that i'm going to extrapolate, sf p.d. is not here today but yesterday we had a cable car crash and there

was someone with an armed gun and we had someone crash a car and officer involved shooting. those are much more important from my perspective from the city and county of san francisco than controlling this zone. i'm making sure we are committing to things to these neighborhoods that are realistic and concerned that the extension by us is predicated on that and makes me uncomfortable. homelessness does not increase crime. walking here today i past seven tents and just because i don't have a navigation center, i don't have an officer or safety zone. i'm concerned that in this iteration the language is stronger and will not be able to extend the mou if sf p.d. can't meet their obligation when we know statistically there is no crime. i appreciate you showing up on

the equity slide why this isn't happening on the other navigation center. i will note, as it appears on what is happening on pier 94, if we had security that it would not have happened. i'm wondering how the department feels comfortable with this language on the interdepartmental agreement and with the priorities. can you address that? >> sure. i agree with what you said and homeless services and affordable housing and shelters do not increase crime. this is a large site with 200 beds and we have had a great working relationship with sf p.d. this is a large site that has generated significant concern from the neighbors.

thankfully not much of that concern has not come to light and we are very pleased about that. and we are in contact with sf p.d. even when they are short staffed if they can't do the beat officers, they have been out there talking to people and it's been helpful and i do think the accountability mechanism in place will help ensure that the residents are getting the services that this city is committed to and feel we will meet the minimum threshold to continue operations should this site continue to be available. generally, i do agree. i think this is a bit of a challenge because we want to be responsive to the community. we want to be responsive to the neighbors, we want to be responsive to the requests while

also not perpetuating a stereotype that might not be accurate. so again, an apology as someone of a content expert on this matter. you are adjusting how you do the count for the zone because it also really concerns me from a data perspective that you are not doing that, unless you are doing that citywide. can you clarify that? yes, let me clarify. when we were doing the count for this presentation, we are talking specifically about the count that we conduct just for this project. we are actually taking the methodology of the larger biennial count and apply it more consistently now. we have always done counting of the tent structures, people and the numeric extrapolation of the number of people in the tent. >> we are required by federal

law. >> we are making them consistent. >> i really hope the department does well and not just a partnership. i am skeptical and to what commissioner lee said that you can decommission in a few months. i hope that we find housing for them. it would be great to start seeing those stronger exits from that, and whether it's just an informational or fyi, i know it's on our website but would be great to report back to the commission on that because if you need to vacate in six months, that you wouldn't be able to do that and would hate

to be concerned about this. . >> i don't want you to be concerned. we have taken down the hotels and permanently housed 80% of the folks in our hotels. that is why the folks moved out of the navigation center in the first years. where we are doing it is in candlestick lot and other site. we have a six month plan for demobilizing a site that has a very large housing push. our housing numbers picked up dramatically, we should be going up at that rate every day but we see housing number pick up. we have wind down over 2500

utilities of hotel shelters and 80% of those got permanently housed. i think we can do 200 people in six months. this is doable. thank you. vice-president adams? . >> thanks for coming back. there was a lot of discussion and there were a lot of questions. the commission has a lot of questions and i really appreciate that. for me that stands out a lot because none of the commissioners are out there on the ground and only one person and that is alice. alice is constant, alice is in the neighborhood and alice knows what's going on. last month, one person came and alice is the real deal. i used to live one block from there and i don't live there anymore. alice is down there and she

walks there. she knows the people in the community and knows everybody. she's the pulse. alice, i would like to hear from you because you bring truth to us because you are there. >> thank you. . >> on the issue of the officers i believe that it's correct that the navigation center itself doesn't generate many issues. in the neighborhood most of the issues that we dealt with kind of on the side were conflated really from the general humanitarian crisis of

homelessness on the street. that said, i do walk around a lot but i'm not there all the time and we did get reports of drug sales and other uncomfortable behavior. so i do think that there is a correlation. i feel that what we are asking is not for hard enforcement. that we are looking for that sort of community policing aspect that is checking in with people every day, buildup trust, encouraging people to go to the shelter if they haven't already gone to the

shelter, discouraging those who prey on the homeless selling drugs. i have felt, things are pretty neat and clean around there and i think their crews are very effective at providing those services, and i actually think that cbd's are that one particularly is an under used asset for hsh that there could be more handoff to get people ready. so, to my perspective, that's really what i'm looking for. and it has been awkward over four years to try to fill these navigation centers that really were related to the counts or to

unfortunate individuals in the dog park, or to people in the cul-de-sac. . >> thank you, alice. thank you for your comments. we appreciate it. any other comments? thank you. anybody else? alice, thank you very much. we really appreciate your comments and really appreciate emily for coming back and answering all the questions. this is never easy. this is a critical citywide issue, and i don't envy you in your job, and all that it takes to make this happen. i do hope that going forward, there is a lot more support to permanent housing than to actually getting people off the streets permanently. so i really want to thank you for all that you do. with that,

all in favor say, "aye". >> aye. >> any opposed? the resolution 23-45 is adopted. next item, please. # b. request approval of (1) phase 1 revised final budget; (2) contribution of port capital; and (3) parcel lease amendment, for the mission rock project at seawall lot 337, bounded by china basin channel, third street, mission rock street and san francisco bay. (resolution 23-46) . >> public comment? good afternoon, i can't believe

we are back. the staff have been really great in working with us. for any of you spending the weekend reading the staff report, i know it's quite long. i do appreciate the flexibility of the committee working with the item on this. i know it's a lot of sequence. i'm going to go with a very brief overview of the project because we went through it in september. there is actually a lot

happening this month. i want to tell you what we heard. we saw a list from the items from the short-term and what you expect from us going forward as far as outward communication and status. while there is going to be some content, not to the level it was before. these are the three specific actions associated here, the approval of the overall budget which we went into detail with the city's cost last time, but i preview to that and the outline and the negotiation on how capital is going to work and how it was specifically flagged and the water fall. and we have much more detail on the parcel lease amendments and more technical and i want to go over those with a little bit of

detail and tie the information for the future. and continue discussion on phase 2, i want to show you the lens we are working on and a lot of work to do on phase 2, but this is an on going to effort and talk to you about how we are approaching that. a lot you will hear is on phase 2 and how viable it can be and the discussion on the immediate next steps. as everyone has seen this recently and on-site, doing a quick phase overview. for the parcels and china basin park and inclusionary on-site. two buildings, parcel a and building b have their tpo's. we are looking for the right tenant at parcel b. parcel f

will be coming online next summer and the leasing will happen right then. i want to give you an update from last time and for issuing our bounds and moving forward with that process and from the mayor's legislative form packet final draft form on the third. after these actions today, we are intending to go through the board process this month to sequence all of that. commissioner harrington, you asked for an appeal on that and we have it drafted but looking to publish that in early november for the final one. we can get either one to you. do you want to give more positive updates on the leasing activity, not just parcel arch where we continue to track over 40 percent for the market rate leasing since june since we were allowed to do it. the bmr leasing and we are up to

seven. it's behind the market rate, but we think it's tracking nicely. and we have more in the process through this list. commissioner, i did indicate that we have a former employed. and one of the feel good portions of this program and the under going program and the next cohort for the mission rock academy which is a huge success. i wanted to highlight that's going on right now. just want to go quickly on what we did on the 12 and what we heard from you. the major approval items are the bonds and thank you for allowing us to move that forward. we did an informational in depth

discussion on the city costs and issues associated that and the budget and the port capital and the park lease amendment and we did go through the list and it was entirely fair and what we needed to hear from it and the appropriateness of the budget and keeping that as an open item and providing more details and reasons for the cost and i will explain those today. to better management and better communication on issues and i will talk about what we heard on that regard. and the capital amendments and the phase discussion. those three things we all heard and i will integrate those into this discussion. as a phase one budget recap, as president

brandon flagged last time, that it's the second time we are going up total of up to 50%. it's a big jump over time and there are a lot of factors involved. we are seeking a $208 million budget for phase 1 and what we presented last month. the city cost numbers are still the same, $19.57 million, there are about $18 million in the soft costs that's the difference between the 101 and 108 and below for the soft cost which is inclusive of the city cost. it's $1.345 million. we have been working with our consultant that we used the last time to go through and validate the hard cost and received a letter certifying that these are

all reasonable expectations of what we should be budgeting for and should be enough to get the project through. i want to say we will go through the cost and for the appropriate amount. we made that same determination with the soft cost that that was the appropriate number outside this city's cost which was stated before. that's how we get the total recommended number of $1.45 million that we expressed last month that we were optimistic we were getting there and our consultants signed off on that >> on a high level, these are similar issues that we encountered with the city's cost and one of the big reasons for these costs is complexity and time and associate costs of what happened with the actual costs of redesign and the carrying of the time with the time whether it's financing or any other kind of return or anything else

occurring here. these are the lightweight concrete that we discussed and modifications and sub surface conditions, very complex legal documents that show up in the city's cost and developer costs negotiating these. it's all triggered into additional staff review, unique project conditions and of course macro conditions associated with covid-19 interest rates, etc. talking about those a little bit in phase 2 you will see as well. so, one of the issues, we need to be letting you know of issues a lot sooner and will make it more formally now. for commissioner harrington's suggestion, regular reporting and we imagine that similar, maybe not exact time but similar in nature which making its way into presentations and also offer briefings.

we are also committed to hearing the meaningful budget and preemptively notify and anytime information is needed. there is going to be a lot of additional items in the next 12 months that are not directly in the budget but within all of those. i make my commitment of the housing coordinator to continue to monitor the cost and the biweekly meetings and will continue to evaluate the engineering opportunities. there is not tons to do because we are so far long in the project but that is our commitment that where we can, we will. this gets a little bit more technical. i will walk through this one. it's two slides to explain the port captain contribution. i will conceptually go through it which is the left-hand

column, and what we had proposed before and what we are looking at, what we talked with the developer is in order to solve the amount equal to cost overrun of $16.5 million, we are recommending that this would be solved in the port capital contribution. that earned 10% annually, once we pay it to the port that is different from the 18% from the developer capital. we say that because this is per benefit to the project. there is a benefit to the port of 10% once we get paid and i will show that in the next slide. it's overall better for the project that we see consequence -- sequence it

before capital. there were outstanding invoices associated with the city's cost and will reimburse the port for all of those expenses as incurred to date and will continue to do so. then the port capital contribution comes in. i will talk about that in a pmo. commissioner gill man, this is for you, specifically you are asking about the water funds. you will see it totals up to $18.5 million which is in the budget. you are saying the first $200 million out is developer capital, and then the port capital comes into play. through an approval today, we are seeking and board of supervisors approval and once that money is needed in the project, it will get drawn out similar to how a lender is

paying that out as far as that goes. i want to clarify and also to you, commissioner harrington, we did address the concerns of the opportunity costs to this year and i know that was a concern because this was new money to be appropriated for the existing money. i don't want to call it a sum cost but in the budget, it's already gone. i will talk about how we'll solve with the developer. so what we are looking at is a port capital contribution on the left hand side column starting in quarter two of summer of 2024 is when we are expecting the base $192 million to $202 million that we'll expend around that time and for port capital contributions that steps in.

that would fund basically the remainder of the project through calendar year 2024 and end of 2025, is what the port capital will be the source. you will see on the right hand side it says beginning principal, that's incurring there and spending money as contributions go in, as the far right accumulating and earning that interest and that's running in the background depending on how the developer runs as well. in 2024, we estimated distributions which is the negative area in parenthesis of $1.895 million. that amount is equal to the 2025 estimated city cost budget as we worry about the opportunity cost having to appropriate that amount. the developer has agreed to move this repayment in front of the other developer capital, that amount to be sure it gets paid

first and will get paid by increment taxes. that's why we are projecting this will come into the project earlier hoping to deal with that cost concern. this is very speculative but looking at phase 2 that begins in march 2026. even though it's a challenging phase and a lot to get phase 2 going, we know there is a payment for the port, $14.6 million plus the.6 million earned in the summer of 26. at the end of the day, what we end up looking at is a port disbursement of $1.899 million and another one which is balance plus interest. pretty detailed in the report and i'm happy in q

and a to talk about that. the parcel lease amendment is a third of the amendment. we missed something and agreed to fix it in the future and we are doing that now. the reason we need to do this now, all of this and for the other two clarifications is the developer is seeking to refinance the vertical parcels which are significantly beneficial to bring the cost down on those which is significant for the project. we are making other two clarifications. those agreements were signed in 2020 in the spring and in winter for all four parcels which was unprecedented to take all of these parcels at the same time and through our letter agreement which we have between the port

and the developer. we agreed to fix this one issue when we came back. the real clarification of this, going down to these three bullet points is this refinancing participation coming up now. we are clarifying that the first permanent financing which is for take out loan which is replacing the construction loan, that's not subject to participation. that was already known. and that was stated. but when the subsequent refinancing happens, anytime that happens, the port will continue on an ongoing basis with 25% of the proceeds, we need to move what are the investing mortgage on the number and we don't get to participate on the debit. that's a project costs that will have to come out on our participation. the way it is worded now, it doesn't read that way, so that's

the second one we are proposing. this is a second clarification which requires and amendment. when the port is participating in a sale, a transaction or normal exchange is different than a for closure event and a lender for closes and the lender takes possession of the property. and sadly that's appropriate. the last item and this is a little bit of arithmetic as far as we see it. many of you know that we used the job housing equivalence on this project that is just under $200 million that was a creative way for the high valued commercial parcels to contribute on-site essentially to the

residential parcels partially because there was more value in the commercial and secondary because of the affordability we had on the project and the jobs to determine those values. parcel b and g essentially gave a subsidy to a and f to the residential parcels. we want to clarify that when cal grating participation that that money is retracted back as a project cost. so we spent, if parcel b gave $90.2 million to the residential parcels, we want that acknowledgment to come back to parcel b and shows that the decrease in value to the residential parcels that received it. so it nets out under this chart

to $181.3 million that is the actual benefits received and contributions from each of those parcels was. so this is the thing we'll be working on the ongoing analysis and making it work and keeping the costs as low as possible. and keeping that plan. while that's happening, keeping an eye on phase 2. while there are challenges throughout all the development projects, we feel we are at better striking distance because of the phase 1 and existing phase 2. and want to clarify that phase 1 is still challenged and will

rely on phase 2 proceeds to get it reimbursed. the port capital will get reimbursed before any phases are reimbursing. the phase 2 proceeds or bonding capacity will be used for phase 1 for the capital. phase 1 is approximately 9%. we need pay the developer capital and the port capital to get back up to 18%. which i was indicating we believe there are project sources that could be available to do that in 2026. currently the overall project irr, rate of return, is a litmus test moving forward of 15% which is 18 percent but not as catastrophic as it is in a lot of places. we feel we are in good shape. what we are saying as the phase 2 sources can be set for phase 1

and we need 20% to start paying for phase 2. what are we doing today? we are being cautious with how much design money and dollars that we are spending that are incurring charges at that exact moment and trying to limit the design we are doing and focusing on the economic factors, interest rates, general inflation, trying to see how much the market circuit phase out and which is going exceptionally well. one of the marketing conditions depreciates the land value which is one of our best project sources. . >> and then, these are a little bit more qualitative in nature. looking at different ways to modify the phase and these would be the parcels that would move into phase 2 and the other

higher value parcels and would change it up to create the value in phase 2. that is complicated because there are a lot of factors involved there and looking at the programatic mix and do we look for subsidies or outside help. that is on the last level too which we are not doing anything specific today but everybody is being mindful of and considering the policy level and the critical things we need to worry about. these dropping from a bases point, brings the project up by 2%. i know that's not happening today but we can't stay in an

accelerated interest rate forever. the impact in 2021, there was a 3.5 interest rate environment, you can see how challenging and the impact that it can have. these next two are a lot more. if currently lower land values in phase 2 were to increase by 50%, we paid our 18% of irr there and as we track numbers and movement, this even more is called a cost reduction or subsidy of $10 million and putting in that as a source or unrestricted source have a direct impact and existing irr there. these are factors that are outside of our control in a lot of ways that we are monitoring and keep impact on while we are doing our work.

so, next steps. if these items are approved today, we are intending to be at budget and finance october 25th, with the controller's office and bonds moved october 1st and fund the project. every month we get these early. 500,000 in savings for the project and there will be an association of spending the per capital contribution and the parcel lease amendment with the three changes need to be approved. these are part of ongoing efforts on phase 2 analysis that we continue to work with our third party consultants to come up with creative solutions with the base moving forward and again our commitments at the port and the project team to manage costs both the project

and the city costs going forward. so this is the last phase 1 budget. so hope that wasn't as much information than the last time. thanks for staying with me and happy to go into any specifics. thank you. so moved.. second. >> let's open up to public comment. is there any public comment in the room? seeing none. caramel, do we have anyone on the phone? there are no public commenters at this time. thank you. public comment is closed. commissioner harrington? >> i would like to thank you for the work. you listened to us last time and i have no questions. thank you. .

>> commissioner gill man? thank you so much for the information and you answered all the questions. i have no further questions. thank you. >> commissioner lee? >> how far is this finished? you get this money as we approve it before we ask for another one because time is of the essence here. this phase 1 is it pretty much finished now or how much more do we have before we can start leasing? >> good question on this. are you talking more on the construction side? this money is to recover cost which was inflated because of the time. right? labor cost, covid. so if it's approved today, i'm curious, how much longer until

we cut the ribbon and start leasing properties to start working on phase 2? for this one, there is not going to be any selling of the property because it's under port trust, all underground lease as part of vertical for developers. i will say that moving on building b about as far as it goes and falling under the general market indicators. the parcel leasing has gone well and actually there was an office leased there, 30,000 square foot, so we do get a successful office there. the retail is leasing up really well. so parcel a, we expect parcel f to happen in the same way and starting next summer in june. . >> these are some other retail

space. from a leasing side we are doing some retail, miscellaneous office and the resale leasing pace is going well. . >> >> you are estimating next summer we can move forward to? that's probably ambitious. we are looking at this more of a hypothetical 2026 was our placeholder. now when we say move forward, there is a formal step and we have to come to the commission with a phased budget and there are a lot of variables. we'll have ideas about how to move them and i don't know that we are in position to move it next calendar year but hoping to have a pathway. it's kind of an estimate.

as time goes on, you are going to ask us again for another increase. just for my own fate, i would like to know where we are at? the number one indicator is the acceptance of the timeline and the city acceptance is scheduled for summer/fall of 2024. if that flips, that's another driver. i don't think there is a cost issue that we are particularly concerned about other than that. from the revenue side that makes the phase viable is not having a slip up in the leasing activity. as i said, i think the retail is happening well. the market rent leasing is happening and the bmr leasing is starting to pick up. i would say the leasing activity is going to be important for us

to generally attract. one thing to clarify is it doesn't rise to the level of quarterly reporting but as we come forward to bring the park lease forward and the full item for parcel a, we'll also put in a phase 2 forecast that we are talking about. there might not be a huge update but information we have today is part of our briefing to you. . >> thank you.

vice-president adams? >> i have no questions. >> thank you for your time and for your report and for the quarterly reporting that will inform us on the project and what we are seeing today is unbelievable because i remember when it was a parking lot. [ laughter ] i think it's a great project, so i am supporting moving forward. . >> madam president, sorry to interrupt but we have identified some changes and we have been working on these to the last moment. may i read them? so when you make your motion, if we can do it as amended. >> okay, let us hear the amendment. >> they are not sensitive. page 3, under resolved, the support staff seeking, not seek. the adoption, not approval.

from the board of supervisors, same section, 4, not to exceed amount instead of to make. then on the next resolve, page 24, the port commission instead of the commission. approves the -- strike of. and in the next resolve, port staff is directed to seek any and all necessary approvals, and then to the last sentence of that resolve clause, on parcel g lease to incorporate the parcel lease amendments as described and add in this resolution, to more amendments and to the next resolve that the port commission authorize the executive director strike of the port. the final resolve, this at port

commission, and that's all the amendments. . >> i won't ask anymore. [ laughter ] . >> a motion to approve as amended. so moved.. second. >> all in favor say, "aye". >> aye. >> any opposed? . >> the resolution 23-46 has been adopted. next item, please. c. informational presentation and possible action to approve an exclusive negotiation agreement with fisherman's wharf revitalized, llc for the lease and phased development of portions of swl 300/301 and pier 45 sheds a and c in fisherman's wharf (the “project”), generally located bayward of jefferson street between taylor and powell streets. (resolution 23-47)

fish --. >> good afternoon, commissioners, i'm christine, the manager for the port and real estate development division. i'm here to discuss and recommend approval for an exclusive negotiation agreement with the port revitalized and sheds a and c and portions of the triangle lot at fisherman's warf. we are joined by chris gregorian. . >> i will start with a review of the process to date followed by a review of the qea terms and staff recommends and next

systems. . >> first off as the proposal as you will remember the staff received a proposal. including enhance support of the existing fishing and seafood industries and experiential museum and center, central public square, central conversion of the embarcadero roadway to non-vehicular zone and one more building at the housing visitor center, winery, brewery, distillery operation and the rental on lot 301. a western portion, a second phase of development by the first fades and the evolving needs of the area.

this is of course an initial concept that will evolve through community and regulatory dialogue. additional site due diligence, policy direction and lease negotiations should the port move forward with an ena. . >> next an overview of the outreach and the proposals. the proposal was shared with the port commission february 28th and did a series of advisory group meetings and reported on the engagement process and on the alignment of the water front plan. at that meeting, the port issued an rfi for the records to date. july 11th, given the urgency to

provide support to the port and commence negotiations with the developer. and entered into a negotiation with the developer. the ena to negotiate with the developer and the terms and allow for time extensions and provide for developer reimbursement of project related costs. on the right, the initial term is 24 months, key bench marks during that two year period include a community outreach plan, a program for inclusion of

the small local and diverse service providers and predevelopment work, a refined development concept, negotiation and endorsement by the board of supervisors and review and negotiation and approval of transaction documents. next, i would like to highlight a few terms. first the term of two years, plus six, six month extensions. a term of this length is consistent with the scale and complexity of the project which will require extensive stakeholder and regulatory partner outreach and collaboration. next, diversity, equity and inclusion goals and they are not subject to ena policies but requires the developer to work with the port to include small and local and diverse providers

during the ena period. next, transfers, to allow the developer to bring investors without the port's consent as long as they meet the financial requirements and given the solicitation requirements, the ena requires approval of any transfers of 50% or more for owner interest. next, the required payments, during the ena period, the developer will reimburse the port for the costs and the project and pay the fee of $25,000 unless waived by the port director as the condition of each term extension. what's different here is the port will not require a negotiation fee for the initial term of the ena for a couple of reasons. first the port's cost today was minimal given there are no rfp's for this site and the continue

of leases at the site to continue to receive revenue. . >> and a condition of the port. and finally the leasing to extend beyond the dated for the transaction. in this case, the port has the right to enter into two new agreements and seawall lot for december 31, 2025 unless the ena is extended, second, a lease extension with the san francisco maritime association which includes -- through december 31,

2028. . >> the proposal provides the information for the port through the process and regulatory process to advance the project. this concludes my presentation. i'm available for questions. . >> we are available to answer any questions you may have of port staff and members of the development team are available to answer any questions as well, thank you. can i have a motion? i make a motion? are there any public comments? there are no public comments at this time. thank you. public comment is closed.

commissioner gillman. >> thank you so much for the report. i would like to port staff to carefully remember and think about is one is the public comment that we heard throughout this process of fishermen and women who contribute to this and to ensure they have a home and place for fish processing and fish unloading. when this comes to fruition, and secondly, because for me it's still an open question around whether the short-term rentals are trust compliant. i'm really interested to see if that phase in the proposal and how that will work and port and the hotel property. i'm excited to see this moving forward and exploring what it will be going beyond.

commissioner lee? >> i'm in support of this project but i question in my own perspective having a museum so-called experimental museum. it's really to have the fishermen participate in a fish market of some sort or can actually generate revenue for the port, for the fishermen and also become a tourist attraction where tourists can pick up fish off the boat. in my opinion, that is suitable

for the port. . >> there will be opportunities for the port commission to weigh in. i know the developer is here today and they are nodding and they hear you. >> that's it. thank you. >> thank you. commissioner harrington? >> thank you. i'm supportive of this. getting ceqa determination and completing transactions within 20 1/2 months is pretty aggressive. good luck. >> it is aggressive. >> i guess we'll see with term sheets and see how you are going. that's fast. >> it is fast and what we are hearing from our planning and colleagues, is that they are able to process things more

quickly than usual, but you are right. . >> thank you for the report. this program has been fast tracked and i hope to see it on the ground soon. i'm agreeing with most of the terms but just wondering why we would possibly decrease the deposit from $100,000 and wave the additional fees. . >> the extension fees? >> yes. >> it's really the project and the work flow on this project. i think initially there is not

going to be a big outlet on the port's part. we may not need $100,000 upfront. that's all it has to do with in the beginning of the process that we don't expect there is going to be a lot of port costs, so we didn't think we would need an initial deposit of $100,000. but it doesn't raise their obligation to expect from the port until we finish. >> why would we wait? >> i think it goes to the same reason why it didn't make sense to charge an ena in the first place which was again there was no rfp for this process and that the port is continuing to lease the property and receive the same revenues as we received today. i personally would like to keep

things transparent and if we are asking our other partners to pay a fee, i would like to keep that consistent and if there would be a waiver sought. i would like to leave it at $100,000 and 25 for the extension. >> let me get this right. that there would be no reduction, but if there were a waiver to next fee, it would be at my director discretion. >> there will be no upfront but a deposit and extension fees.

>> correct. and if there were a waiver to either, it would come to the commission? >> yes. >> okay. remind me of the $100,000 upfront. >> it's a deposit to cover port transaction costs. >> got it. >> and to what our costs were. >> would you like to see that cash flow? >> i would like to do it as we did within the department and they might ask for it in four years but we would like to see it as a deposit. >> for other ena, is that at my discretion? >> the $100,000 deposit, i don't know. the waiving the extension fees and david may know.

waving the extension fees is different. >> we'll do both as president brandon is requesting. i just wanted to get clarity on that piece. >> i believe that this did not require you amend your resolution. what it requires is that for the parties to reach agreement in the report to put this in the ena that is executed if this resolution is adopted and make sure we fix it in the ena language. >> very good. thank you. >> thank you. all in favor say, "aye". >> aye. >> any opposed? . >> public comment? there is no public comment. the motion is adopted. resolution 23-47 is adopted.

thank you. next item, please. d. informational presentation regarding leasing efforts for the pier 33.5 restaurant space located at bay street and the embarcadero and recommendation of kuleto's waterside italian bistro as the most qualified proposer. . >> for callers who wish to make comment on this item, please press star 3. >> good afternoon, property manager. i'm going to start with a quick overview about the pier 33 1/2 location, about 5,000 square feet located just north of alcatraz landing. it was formally the butterfly restaurant and closed in february of 2017. we at that time received a facility assessment, identified several capital improvements that need to be made such as installation

of a fire sprinkler system and sewer line into the embarcadero sewer box, the kitchen equipment is obsolete and possible ada improvements. it's a challenging location. it's over the water. it's old issue, it definitely needs some improvements and so forth to move forward. there was an rfp done that we did in 2017/2018 timeframe that we had one proposer entered into a lease agreement, then that was not successful and they lost funding and so forth and not able to proceed. it will be great to get this restaurant leased and up and running again. as to the leasing process, the commission approved the interim broker policy july 12th of last year allowing staff to use a broker to market pier 33 1/2 and the ferry plaza east building.

i'm here to talk about pier 33 1/2 today. staff worked with the real estate on the process and we commissioned wakefield as the broker and executed the broker agreement in january of this year. we have been marketing the restaurant space since that time. wakefield engaged in an effort to put together a full marketing flyer which they put on their website, posted it on the port website and issued 900 of their contacts to let them know about the port space available and also a list of interested parties about the contact support about the space in the past and reached out to multiple and local chambers to let them know. the golden gate restaurant association to let them know this property was being

marketed. we had 12 potential tenants who toured the space during this time and identified the july 28th date for submittal of proposals. and received four proposals as a result of that. so we convened the panel of port staff and scored all of the proposals. not like a typical rfp but a broker submittal interest in detail. went through that process and scored them in accordance with the guidelines by the port as part of the interim broker policy. then invited three of those proposers back for panel interviews and interviewed all of them. ultimately, the final recommendation that came through for everybody was to proceed

with the italian water side bistro. i'm sure that you are familiar with the cleto's italian on -- and looking at modernizing the concept, using more of a california fresh kind of meets italian theme, adding pizza which he didn't have before. definitely impressed with the utilization that they have indicated they want to do with the southern entrance. they seem to really recognize who the customer is in that area that there is an interest from the community and the neighborhood that you've got about a million people a year visiting alcatraz island and that grab and go opportunity out of that southern window and counter is something they really want to utilize. interestingly

enough, we had some recent feedback from a firm that does the traffic demographic and so forth that indicate a grab and go concept nationwide seem to get the most votes in terms of restaurant operation. we did have two very interesting proposals and one from a peruvian concept. i'm familiar with them. they have a couple of other restaurants in santa rosa and petaluma and this concept of creating a gathering space at this location. our challenge with that proposal is that the operator did not

bring in a partner and has no restaurant experience. i'm gun shy here and interested in making sure something happens. we have a successful improvement process and development and a restaurant that opens and operates in success for the port in the long run. assuming the port commission approve this recommendation moving forward, we'll in turn do negotiations to finalize the agreement and the detailed business terms and the cleto's team and epic and water bar and the epic general manager that is also a partner. they also provide equity interest and their general manager and always somebody who will have an equity interest. that is something i have not

worked with before. we will be working on finalizing the agreement and come back for details and business terms for your approval and moving forward. thank you. . >> this is an informational item. we don't need a motion. is there any public comment? seeing none. do we have anyone on the phone? >> there are no callers for public comment at this time. >> thank you. >> commissioners? >> well, thank god. [ laughter ] it's be sitting around for so long. and you are right. to get a partner in there to be one of the operators is very important today. i don't know if you read in the newspaper about my restaurant -- the owner wants to retire and if i cannot find another family, i will also

retire it because it's hard to rent right now without an prayer that can pick up the pieces. an experience especially on the port is very important. you did a great job. although i have questions about brokers. they did a right of finding the right person. congratulations. i hope we can move forward with this. >> thank you. i will mention i was really pleased with potential tenants who were interested enough to visit this space. we had a very well known restaurant group from san francisco to tour the space and said this was too much of a challenge for us construction wise and not able to tackle it and there was a wide variety of potential tenants that came in who took a look at the space. >> when you tell me about the

sewer problems, now i know why they hesitated because those are costly. . >> >> absolutely. we have a capital improvement fund in dollars towards this because this is traditionally what a landlord would be taking care of prior to a tenant coming in. we'll help them with the cost and putting in fire sprinklers. it was just grandfathered in that way. those are some of the capital improvement types of things that a landlord is typically responsible for and will help pay for. >> great. i'm happy. thank you. >> commissioner harrington? >> thank you.

i always enjoyed going to that so i will enjoy going there. we don't have anything to actually approve today. >> you will tell me if you don't agree with the recommendation. >> then you will come back to propose business terms for the lease? >> the next steps is to finalize the terms on the lease document and come back for approval. so one more. >> great, thank you. >> thank you. >> i am super excited too and love that space and so happy to see it activated. i just have one question. this was a pilot for us using this space and this space over here for direct leasing. i'm curious and this is anecdotal, and not meant to be perfect. i was here in 2018, when there was a bidder who came. can you give us a sense of how much time this saved by doing this process

in terms of staff having to put this out in a traditional manner? >> a year because it takes several months to have an rfp for the process. what they have to put back in terms of a response put together is going to be more complex and will involve all sorts of things. to be able to avoid that, and the costs for the potential tenant and to think things through in the long run. >> it's again to remind the public, the solicitation went out to 93 different organizations and scored and looking at equity analysis and other vasoof the port through proposals and done through direct leasing which i'm just an advocate for in general for commercial property that is in the port jurisdiction. i want to say how pleased i am

for this effort and hope it moves forward. >> director adams? >> i would like to thank you for not giving up. pete, pete is invested and he would be calling in. he believes in the port and a big supporter of the port. somebody with pete's experience with the water bar and experience and just is history. pete is a better partner and stand up guy. right now like the 49ers, is on the winning streak. thank you. >> thank you so much for this report. i think it's great that we have so much interest in this site, and hopefully that speaks for the other sites we will have available also. just curious about the team. it

seems like they scored really high, and then they were interviewed and they fell to the bottom or no. 3. so just wondering how that happened? >> so typically on a normal rfp process, if they have not made all the qualifications we would disqualified them because they did not have restaurant experience. they submitted an interesting and compelling proposal and was very thorough. the hope was 245 the proposed owner would bring in a team to partner with who had restaurant experience and they didn't do 245. i think our feedback for them is we really like your ideas and what you are trying to do. we have some other locations available coming up that are probably a little bit less challenging from an improvement standpoint, and if you bring in a partner who has that restaurant experience, we would love to hear from you again.

>> great. i'm happy you gave them that encouragement because it seems like they have a really good concept. also with kuleto's, that you can work with them on the negotiation. >> two of the proposers before didn't propose the rent. kuleto's did and i'm seeing leases come in from sub tenants for approval and they are at 5 percentage and i'm seeing that number coming down. this is five 1/2% and estimating $5 million for the first year, an additional $20 a square foot. that lowered rate, we are going to have to spend a lot of money here and will be tough to get it going the first couple of years, but it will be our partner in

sharing that. >> again, it's not at the top of the list. hopefully you can negotiate a little better. >> always happy to. >> thank you very much. next item, please. item 9 is new business. . >> >> i did not record any new business. is there any new business? >> is there any new business, seeing none. no new business. so, can i have a motion to adjourn in the memory of senator feinstein and in honor of peace in the middle east? >> so moved.. >> second. >> all in favor say, "aye". >> aye. >> any opposed? . >> the meeting is adjourned at 5:24 p.m. . >>. >>. >>..

>> (music).

>> the ferry building one of san francisco most famous that as many of 15 thousand commuters pass through that each gay. >> one of the things that one has to keep in mind regarding san francisco is how young the city we are. and nothing is really happening here before the gold rush. there was a small

spanish in the presiding and were couriers and fisherman that will come in to rest and repair their ships but at any given time three hundred people in san francisco. and then the gold rush happened. by 182948 individuals we are here to start a new life. >> by 1850 roughly 16 thousand ships in the bay and left town in search of gold leaving their ships behind so they scraped and had the ships in the bay and corinne woods. with sand the way that san francisco was and when you look at a map of san

francisco have a unique street grid and one of the thing is those streets started off in extremely long piers. but by 1875 they know they needed more so the ferry building was built and it was a long affair and the first cars turned around at the ferry building and picking up people and goods and then last night the street light cars the trams came to that area also. but by the late 1880s we needed something better than the ferry building. a bond issue was passed for $600,000. to build a new ferry building i would say 800 thousand for a studio apartment in san francisco they thought that was a grand ferry

building had a competition to hire an architecture and choose a young aspiring architect and in the long paris and san francisco had grand plans for this transit station. so he proposed the beautiful new building i wanted it wider, there is none tonight. than that actually is but the price of concrete quitclaim two how and was not completed and killed. but it opened a greater claim and became fully operational before 1898 and first carriages and horses for the primary mode of transportation but market street was built up for serve tram lines and streetcars could go up to the door to embarcadero to

hospitals and mission street up to nob hill and the fisherman's area. and then the earthquake hit in 190 six the ferry building collapsed the only thing had to be corrected once the facade of the tower. and 80 percent of the city would not survive the buildings collapsed the streets budges and the trams were running and buildings had to highland during the fire after the actuate tried to stop the mask fire in the city so think of a dennis herrera devastation of a cable car they were a mess the streets were torn up and really, really

wanted to have a popular sense they were on top of that but two weeks after the earthquake kind of rigged a way getting a streetcar to run not on the cable track ran electrical wires to get the streetcars to run and 2 was pretty controversial tram system wanted electrical cars but the earthquake gave them to chance to show how electrical cars and we're going to get on top this. >> take 10 years for the city to rebuild. side ferry use was increasing for a international exhibition in 1950 and people didn't realize how much of a community center the ferry building was. it was the center

for celebration. the upper level of ferry building was a gathering place. also whenever there was a war like the filipino war or world war two had a parade on market street and the ferry building would have banners and to give you an idea how central to the citywide that is what page brown wanted to to be a gathering place in that ferry building hay day the busiest translation place in the world how people got around transit and the city is dependent on that in 1915 of an important year that was the year of our international exposition 18 million living in san francisco and that was

supposedly to celebrate the open of panama differential but back in business after the earthquake and 22 different ferry boats to alamed and one had the and 80 trips a day a way of life and in 1918 san francisco was hit hard by the flu pandemic and city had mask mandates and anyone caught without a doubt a mask had a risk ever being arrested and san francisco was hit hard by the pandemic like other places and rules about masks wearing and what we're supposed to be more than two people without our masks on i read was that on the ferry those guys wanted to smoke their pipes and taking off their masks and getting from trouble

so two would be hauled away. >> the way the ferry building was originally built the lower level with the natural light was used for take it off lunge storage. the second floor was where passengers offloaded and all those people would spill out and central stairway of the building that is interesting point to talk about because such a large building one major stairway and we're talking about over 40 thousand people one of the cost measures was not building a pedestrian bridge with the ferry building and the embarcadero on market street was actually added in and in 1918

but within 20 years to have san francisco bay the later shipbuilding port in the world and the pacific we need the iron that. as the ferry system was at the peak two bridges to reach san francisco. and automobiles were a popular item that people wanted to drive themselves around instead of the ferry as a result marin and other roots varnished. the dramatic draw in ferry usage was staggering who was using the ferry that was a novelty rather than a transportation but the ferry line stopped one by one because everyone was getting cars and wanted to drive and cars were a big deal. take the care ferry

and to san francisco and spend the day or for a saturday drive but really, really changed having the car ferry. >> when the bay bridge was built had a train that went along the lower level so that was a major stay and end up where our sales force transit center is now another way of getting into the city little by little the ferry stopped having a purpose. >> what happened in the 40 and 50's because of this downturn we were trying to find a purpose a number of proposals for a world trade center and wanted to build it own the philly in a terrible idea objective never gotten down

including one that had too tall towers a trade center in new york but a tower in between that was a part of ferry building and completely impractical. after the cars the tower administration wanted to keep americans deployed and have the infrastructure for the united states. so they had an intrastate free plan the plan for major freeway systems to go throughout san francisco. and so the developers came up with the bay bridge and worked their way along embarcadero. the plans were to be very, very efficient for that through town he once the san francisco saw had human

services agency happening 200 though people figure out city hall offender that the embarcadero free was dropped and we had the great free to no where. which cut us off from the ferry building and our store line and created in 1989 and gave us the opportunity to tear down the free. and that was the renaissance of ferry building. >> that land was developed for a new ferry building and whom new embarcadero how to handle travel and needed a concept for the building didn't want- that was when a plan was developed for the liquor store.

>> the san francisco ferry building has many that ups and downs and had a huge hay day dribbled adopt to almost nothing and after the earthquake had a shove of adrenaline to revise the waterfront and it moved around the bay and plans for more so think investment in the future and feel that by making a reliable ferry system once the ferry building will be there to

surface. >> >> you're watching san francisco rising with chris manners. today's special guest is katy tang. [♪♪♪] >> hi. i'm chris manners, and you're watching san francisco rising, the show that's focused on rebuilding, reimagining, and

revitalizing our city. with us today is katy tang, and she's talk to -- talking to us about assistance and services provided to local businesses. can we talk about the role of the office of small business? many small businesses are struggling to help. how can you help? >> director tang: we are here as the city's central point of information for all things small businesses, so we can help people start, stay, and grow in the city. if you want to start a small business, we can pair you up with small business advisors, who can talk you through your business plan, help you develop it, whether it's regulatory requirements, business permits, and just help you understand the journey that was up ahead. and if you'd like to stay in san francisco and perhaps your

business is facing challenges, we can also pair you with a business advisor who can assess your business needs and figure out whatside that would best help you. so for example, perhaps you need more marketing assistance or you need to be connected to a loan, a low interest loan or a grant program, if that's available. those are services we can provide to you, whether you're starting out or trying to stay in san francisco. and of course, if you want to expand and grow into a new space, we can help assist you with that and help prepare you for the journey ahead. we have a team dedicated to assist you you with all the small business needs, all the requirements needed to help you establish your small business in san francisco. >> do you have an e.s.l. program for people who want to start small businesses?

>> director tang: we have staff that can speak spanish and mandarin and cantonese, and we understand if english is not your first language, it can be difficult, so we want to be as helpful as possible. >> excellent. i know that s.f. shines was created to help with restoring and improvement. can you tell us more about that? >> yes. it's run out of a sister development and it's much needed in the small business community. if you are trying to improve your storefront, whether it's outside, perhaps you want to make some interior improvements, a lot of times, that involves a lot of cost and resources to be able to do so. for example, you may need to hire an architect to submit drawings so you can get your

work done. currently, s.f. shines is offer a pairing of business sign services. you can be paired up with an architect to get your drawings done to help you start to do the actual work. we hope that people will stay tuned, and you can find out more information on our website. that's sfgov.org/osb. >> let's talk about the shared spaces program. it's been a huge success, and outdoor dining spaces are very popular. >> the shared spaces program, especially during the pandemic, really helped spaces survive.

to have an outdoor space where people could safely gather was critical, and the office of small business has been working with these shared spaces during the pandemic. some may or may not have been up to the city's code regulations, so department of public works and other departments have been trying to figure out what violations are and help businesses come into compliance. the planning department and the city have decided that they'll give businesses until 2023 to come into compliance. also in the meantime, for businesses that want to start new shared spaces, new parklets, that is still an on going program, a new program,

so people can always submit their applications for shared spaces regardless whether they started one during the pandemic or not. >> do you anticipate there being other shared spaces programs in the future and how do small businesses go about finding out about them? >> small businesses can find out about it by visiting our website, sfgov/osb or you can call 415-554-6134, and we can connect you with the planning department and other agencies that would be connected with the shared spaces programs. >> over the pandemic, businesses have been victimized by vandals and other crimes. how can you help them? >> the city offers a program called the vandalism relief

fund, and this would allow businesses suffering from graffiti or broken windows to apply with the city through our neighborhood services division, and you could get up to 1,000 or 2,000 if you submit certain documentation, such as a photograph of the damage or a copy of the receipt or document showing the amount you paid for to correct the incident. we are so excited that the city now has a centralized permit center, where people can come and get their business done, hopefully, in the same day where there are several different agencies, ranging from department of building inspection, planning department, public health, fire department, all here to help people, whether you're building a new business or even new

construction, to be able to, again, fit all of your appointments in one day and get things done quickly. so starting in may, our office of small business has actually started working out of 49 south van ness at the permit center, and we have a team of two staff who are dedicated to helping small businesses through their permitting journey. so we do encourage people, you can come to the permit center or you can e-mail us at sfosb@sfgov.org, and you can communicate with our staff dedicated to helping you with your permitting needs. we hope that people will consider consulting with us before you even sign a lease so that we can help you on the path to success and understanding the journey of setting up a small business in san francisco. >> well, thank you so much. i really appreciate you coming on the show, miss tang. thank you for the time you've

given us today. >> director tang: thanks for having me. >> and that's it for this show. we'll be back shortly. you've been watching san francisco rising. for sfgovtv, i'm chris manners. thanks for watching.

>> >> shared spaces have transformed san francisco's streets and sidewalks. local business communities are more resilient and our neighborhood centers are more vibrant and lively. fire blocks and parking lanes can be for seating and merchandising and other community activities. we're counting on operators of shared spaces to ensure their sites are safe and accessible for all. when pair mets, firefighters and other first responders arrive at a scene, they need clear visual access to see the building entrances, exits and storefront windows from the street. that means parklets should be transfer in the areas above inches above the sidewalk level.

it's best if these areas are totally unobstructed by transparent materials may be okay. you can check with fire department staff to make sure your site meets visibility requirements. emergency response crews and their equipment need to be move easily between streets, sidewalks and buildings, especially when they are using medical gurneys, ladders and other fire fighting tools. that means that parklet structures need a three foot wide emergency feet every 20 feet and 3 feet from marked parking spaces and emergency access gaps need to be open to the sky, without obstructions, like canopies, roofs, or cables and should always be clear of tables, chairs, planters and other furnishings. emergency responders need to use ladders to reach windows and roofs to buildings and the ladders need unobstructed overhead clearance and room to be placed at a 72-degree angle against the building. clearances needed

around the ladders to move equipment and people safely up and down. so not all parklets can have roofs ask canopies depending on the width of the sidewalk in your area. please make sure that your electric cables are hung so they are out of the way and (indiscernible) to the structure, they can be pulled down by firefighters. cable connections need to be powered from an outdoor reciprocal in the building facade because hard wire connections are much more difficult to disconnect quickly. these updates to the shared spaces program will ensure safety and accessibility for everyone, so we can all enjoy these public spaces. more information is available at sf dot gov slash shared spaces.

>> whenever you're ready sir. >> all right, good afternoon commissioner, welcome to the health commission meeting of tuesday october 3, 2023. secretary, would you please call the roll. >> sthaour. commissioner chung. >> present. >> commissioner guillermo. >> present. >> commissioner greene. >> present. >> now i will offer to commissioner guillermo that will offer the ra ma tuber ohlone land. >> as steward to this land,