Transcripts For SFGTV 20240622

Activities during the americas cup were really well received, and the director talked about the restaurant, the public restaurant that was in the bulkhead building but if you think about it as a whole, all the activities that were proposed, the americas cup retail that was a popup as well, as well as some of the other activities that were in other parts of pier 29 and, for that matter, the cruise terminal before it was completed, and that energy and excitement and how the property was used still resonates with the Advisory Group and with the community. So, based on that, they are supportive of this approach that we are proposing to take her looking forward to getting more details as to how it will be laid out. In that regard, they have asked that we come back to the Advisory Group with more specific information on exactly how the rfp will work but theres there supporting the idea. They mentioned to particular concerns i do want to highlight. One is, of course, as i said, they want to make sure there is fully vetted the community before its actually issued, and there was also a concern about making sure that this vision as it is laid out in the rfp does not undermine, or cause problems, for the eventual offering and buildout of the entire shed. So we reiterated in a presentation that is a leasing opportunity. Its not a longterm development. It will be a short term lease and we think of this vision can be supportive of eventual development of a balance of the shed. So lastly, just wanted to before i turn it back over to the director, the Planning Development group will continue to be supportive of the real estate croupier as they finalize this leasing opportunity and the request for proposals and presented back to you eventually for your approval, and we think that this will be a good basis and kickoff for the longerterm, the more comprehensive waterfront land use plan, of the process that the director had mentioned earlier as part of her reports. So, with that, ill stop and turned back over to the director. Commissioners, back into the presentation did i know its been a full year since youve heard anything i want to assure you we were in fact still working on it. Maybe not as rapidly as we had hoped hoped a year ago, but is still a high priority for us. We await your feedback to see for meeting recitation be like us to investigate other ideas and were what your comments are. Is a public commons seeing none, p, disclose. Thank you so much for the presentation. Im trying to remember with thinking probably 10 years depending on how many tenants would have to go in there as part of the in the bulkhead and our own matching funds we were able to we do or augment some bathrooms in the middle of it. Its not clear been on the use of bathrooms would be triggered close to the ball could building. So, there are some unknowns about the use that is proposed and what type of energization schedule would be. Its not intended by any means to be one of our really longterm agreements. So, to say it another way, if we were to propose the restaurant for the entire space, typically a fiveyear options for maybe a maximum term for 20. It depends on the ability of the tenant to amortize its investment. I know im being vague. Im not trying to be too prescriptive. Then, im sorry to adopt but if you have a strong opinion about that will happy to take archives. No. I just become china figure out what we do with the bulkhead versus with total shed and i will come together eventually. Im a mess. I apologize for not going back into what we show you a year ago in part because i dont want to supplant the waterfront Land Use Planning process before us. But byron, could you take us back to that visual with the four phases . When we were appearing before you a year ago believe jonathan made a presentation there was that one so what we talked about was in the bulkhead in the San Francisco bay area we give you examples like that. Its a system is building as well as more the artist inside. And maybe some restaurants and other uses like that. We got a lot of feedback that would was viewed. That was viewed as a good thing it was supplemental we arty have an a bad thing if it supplanted what we already have. So we are find that vision to over showing you today. We were thinking make a space in the area number two with maybe a heavier duty production space, back in number three. In the area number two we would like to do some Concierge Services for the cruise ship terminal. So, rang out as our business is evolving and getting more ships, we dont have a place to store luggage. What the beauty of having a cruise ship terminal where it is to get people to spend the rest of the day before they catch their flight. It would be great to be with the house them to be able to store their luggage somewhere. Right now doing things they can do that is on. 39 hardly. So, storage room in the peer in the area, number two, but also a year ago i think we were Still Deciding whether or not we would need to keep the forklift and other services in the shed appear 29 did we really felt that out and the cruise ship terminal project freeing up the space. So, the number two area, were hoping to do would be make a space where there would be some public wandering through there and the number three, more the warehousing reduction space and then as i mentioned, that of number four area, for the americas cup, as you may recall, there was the area where they had your garden and the coffee area, espresso, i believe it was. It was a great Gathering Place for the public. So, weve envision any flea markets and more specialty like that. What we dont know yet, is how we would incorporate those uses and whether that would trigger a full seismic upgrade, which is something that some of those users would not generate enough revenue to pay for. So we have more work to do. Thats what changed in the last year but thats what we were thinking a year ago. The substructure on the peer is the substructure on the peer is, fill in the blank. Seismically up to go. However, there is deterioration from being in the water over time. So, so code meaning it was a warehouse at . Originally it was used as great or good storage. Which allows for an occupancy loading of 250 squarefoot per person. There is deterioration on it so requires normal maintenance. It hasnt been completely renewed but is seismically up to code which is a good thing. Can you explain that if we turn the whole peer into Public Assembly what does that mean for being seismically up to code . This why the engineers help. If we intensify the usage such as Public Assembly the substructure is already up to code. However, the superstructure, which is basically the building on top of the deck, would have to be brought to current seismic code as well. Which may cost 6 million or 7 million. So, a year ago we were thinking it would be less, but there was think it would be less but it is potentially an opportunity for the port to invest its revenue bonds, maybe some revenue bond capacity if we were able to generate based on our revenue situation today, we might be able to invest for our own account. Or, we do more traditional put it out for a development project. Whats different about this and some of the others is by virtue with fire and the reinvestment it it was made in 2012. This bring bring up the utilities other structures up to code so were not starting with a negative value we often start with. Maybe this an ideal candidates for investing in our own account, if you. Those are thinking a year ago. Frankie, we have not moved but weve had these further discussions from seismic on the price. I hope that helps. That helps a lot. Then, the, and for [inaudible] thats an excellent question. We need to do a little bit more thinking about what time of qualifications we want to be looking for 10,000 ft. 2 space. We need to figure out how we make sure we get to the local we want to reach him desperately hoping mark is naturally going to repair and do this for us. So, im hesitant to promise, but certainly thats the work we still have ahead of us and is byron mentioned, we promised that we would continue to communicate with a new application features and then of course, we would come back to you as we always do to that them with you. Thank you. Commissioner adams. Number one, great get this update. I want to make one comment since we are viewing it holistically from the standpoint of the waterfront venues plan, the development team, and the real estate came, i totally support that because i think we need to think about this in a greater way. Its like, and the staff are having a kind of thought process. I think we dont have all the answers as far as the bulkhead and the entire peer, but of a couple of questions. Number one, the location of this peer am a odyssey, right next to the quotient is very critical. I think that in thinking about the uses, let me start with my question number one. When you showed us the 20 ft. 2 in one of the slides, is that adjustable bulkhead or is that a subsection of the bulkhead because i wasnt sure . Its actually a subsection of the bulkhead. The bulkhead, if you look at this particular rendering, the bulkhead goes back to the joint at the top of the top. Should do before the russians to talk about . Yes. Well before the washroom. So, my question was given we have this occupancy maximum for seismic issues, and i heard jim said if we put 1 million in, im just wondering, because it seems to me that 20 square house and beat is most of the topic could go. He would go to be used potentially as a kosher. So we have 775 occupancy limit, but if you do upgrade that part with the occupancy level than increase, just for that area . I think thats a consideration to consider how we think about this space. Because it it would seem that the ideal where you have a lot more traffic than the other parts. Thats what i interpreted. Not the entire bulkhead but a subsection. That should be going into the thinking process. Because you depending on what is lots of people walking in and out in the occupancy issued. Technically. That bulkhead area the seismic upgrading of that is about 1 million right. Which is not a tremendous amount. It seems like, if so a lot of money, but its not considering what we heard from the other projects, its a modest amount. That answers one question. The other question i had was, if we wanted to make this componentry not just a Concierge Services, but beyond that to offer the cruise ship terminal so they were terse traffic going into this retail area, is there a possibility to build having to go from the front. Is there way to build access across the parking lot into the bulkhead building . Is that something we could does so would attract people they can walk across this and having to go out all the way out and around . Yes. If i could speak to that for a minute. If you recall, commissioner theirs the shed. There is a Straight Line shorter route direct access from the front of the cruise ship without passengers exit to the shed, but would take you to the transportation area with is a lot of traffic as people are getting off ships. Weve observed of the passengers that theyre getting off ships that is automatically drawn down the pathway to the embarcadero. Make sure its sits too far back, there heading this way and is back this way they wont see. To your point is very well taken. Scott be placed somewhere where they can see it and it isnt a hike to get through but it doesnt necessarily can mean its straight out the front door because my be blocked by buses and other things. Whatever. Im just the axis question of visually saying theres an interesting gauche yes. That is part of our gauche frankly, were doing a lot of thinking about big site out there that signage is really critical. Okay. The other i guess in terms of thinking about the uses here i dont think were obviously set on deciding on that. I think youve come up with some ideas. I guess my only contribution would be to say we should be thinking as it appears, and i think you have, both to terse and local resident. I think you made some comments on the cruise ship terminal, there is zero retail and zero kind of even pop up food or something that is more to the moments, but the regular restaurant on the waterfront which would not want to compete with. I totally understand that. One of the things i think if you want to make it A Severn Cisco bay area experience, and additions as some of the things you mention, and i note the sentence still made is also considering the proposed budget for the flower market i dont know whether were thinking about San Francisco made types of activities but i think we have [inaudible] these all things that they area is known for that could we not include something that is not available at the moment on the waterfront that would make it a little bit more interesting than just strictly i can cross. Im not against arts and crafts. I just think something that is really sort of stands out a little bit more that is the bay area . Thats an interesting point that in our staff report a year ago we saw the a lot of that were really targeted everything from bay area coffee makers, bay area clothiers, the wine industry, etc. Candidly, that made our tenants and our neighbors a little bit nervous feeling that we would be cannibalizing from them. So there somewhere in there theres a fine line, but yes, it would be ideal to have some of the things were not able to achieve right now. Another coffee retailer, im not so sure but certainly on the one side or the crafts beer, or some of the other things. Microbreweries and some things i did this more than just touch. So those of the more made onsite because of the utilities that are involved. Right. I just think i missed in the fine balance of the neighborhood and the tenants, but we also want to make something thats really interesting. If you make something thats kind of mediocre in appeal, if not to do anything for either us or the neighborhood. Its got to be something a little bit more special. Yes. That article. Thank you for that. I guess, you answer the question, but i guess it appears we should spend a lot of time on this, i totally support that because it sounds like the investment required to either consider both the bulkhead or the entire peer is far less some of the investment weve hearing and some of the other. I think was worth our time and effort to really study this very carefully and this one could come back on stream faster than some of the other things were considering. Yes. I think that bodes well with the concurrent process without waterfront land use process. Im trying to figure out our roster resources of some of the projects were trying to finish, but yes. Thank you, commissioner. Thank you everyone. Im excited to i agree i think its a Good Opportunity for the port given the relatively lower cost for upgrading. Im excited about it. I just a couple question. One is, in the bulkhead, is there gauche im not sure who would answer this gauche but any option for having to levels so potentially some nonpublic facing space but fabrication areas or whatever, above and then retail more open seas for the public below . One of the reasons the director couldnt answer the question about the print is its 20,000 ft. 2 total and so there is a possibility of mezzanine space. In twolevel space, not a full second level, but some kind of mezzanine space. That made make sense depending on the use. For that area. We are open to that possibility but will be a function of the use. It could make sense. We have yet another facilities. Weve also created the possibility of that along the Ground Transportation area and not necessarily just focus on the embarcadero. So i do want to reiterate that this is a unique opportunity for us in the northern waterfront that usually we have a pure like a pure one, with public access. Because of the Ground Transportation area is adjacent to pure 29, theres a possibility of having these uses as we look at the entire peer spill out into the Ground Transportation area. So, were not just limited to the area of the embarcadero. Its exciting. Its a real opportunity that we hope to start with this initial leasing opportunity, but as she said, it could wrap around it doesnt have to be limited to the entrance around the embarcadero. I think would actually last then talked about the opportunity to use that Ground Transportation area to draw people back further so there is some you saw not just right at the front. And to be worked out with our partners at [inaudible] because you cant park along the edge youre not limited to having to walk all the way to the far east and of the peer. That ability to provide some parking on the edge will make it easier to put retail uses and public uses and the building as well. Then, we didnt really talk about whether there might be some sort of temporary or popup usage in conjunction with whatever we bring in there, but that might be something to about that would keep some of our current tenants happier, that we wouldnt be taking her from, but be additive to maybe some sort of seasonal kind of thing. I would urge us not to completely forgo the idea more temporary opportunities. I dont want to say things like the yard, but i know one of their ideas was not to certain portions where they rotate different tenants, or different vendors through their periodically. I think it might be something that would be useful and helpful there. Given what we have. Then, as we talked about how we would do an rfp, whether we would hire or partner with an entity to curate it, or do it ourselves, it seems like we might want to come up with some sort of hybrid so that susan reynolds, had another opportunity to be more creative with some space that we have not just limit it to one specific tenants but figure out ways we could have a nice hybrid or nice mix. Billy he could see ways with the port can have a key role in staying active and involved in partnering there. Especially since this isnt one where we have to sort of develop it or build it out but we really cant view it more as a leasing opportunity since we party put in the lions share of some of the work i had of them. I hope we can look at ways to be a bit more creative in the rfp process for the multiple options, but i know theyll be turned over quite a bit to our Advisory Groups and working groups, they work with us to figure out what makes a lot of sense. Im very excited about the opportunities we have there and probably even more so after having spent sunday down in the area. So im seeing how exciting it was an unlicensed much more than it has been. I just want to make one more comment to accu echo what you just said. Commissioner. Regarding whether i think we should have options in the argument if someone comes up with an interesting proposal that allows them to curate, undressing or making a decision that that would be the option that we take, but we should have the flexibility because it sometimes somebody cant gauche these things have to complement each other. They cant just be 10 different leases or something that dont kind of integrate. Not to say we couldnt include that ourselves but sometimes theyre the people that come up with the vision and concept of doing that in an interesting way. I think we should have the flexibility in the rfp to be with to look at, nations of either one to do it all or others that say that theyre interested in certain pieces of space. And then see whether what we get in return. I think we want to keep the flexibility because as i said, i think its important to make sure the space is componentry, not within itself, but complement three to the area that we are thinking of the cruise ship terminal. Odyssey, would be sensitive to the neighbors, too, but i think we really have to think this is all components and integrates all the stakeholders in the area. Not just offer one. I respect what the neighbors said but i dont think those were creating something new and sometimes you think of the field of dreams. Do you build that you dont know. I dont want to be totally like yes, no we dont like it. We really have to be careful. We want to hear what peoples opinions are, we cant be totally held captive to it either. Thank you. We look forward to getting further updates thank you for your feedback. Thats very helpful. Hopefully will be back sooner than a year. Should you them 12 a request approval of the operations agreement with chevron usa incorporated granting chevron renewed authority to operate its refining site in california is a Foreign Trade phone number sub zone site for a term of five years with three options to extend for five years each and outlining conditions for the operation of the sub sound site. Good after commissioner katz, commissioned on jim malone without maritime staff and im here to talk to you today about a request in front of you for approval for renewing chevron chevrons Foreign Trade zone sub zone operating agreement with the ports. Thats up for renewal. The staff report provides details on the chevron Foreign Trade zone. Im going to abbreviate Foreign Trade zone, the ftc just for a matter of time. It provides details but i want to go ahead and highlight some of the details in my remarks to you today. Burge additionally joined by three representatives from chevron. I like to introduce them now. This is carl haynes. Shes the export import compliance counselor with chevron. Joel lawrence behind me, Senior Public Affairs representative, and jim grew us, hes a finance manager for the richmond refinery operations. So thank you for joining us today. Chevron originally established a Foreign Trade zone sub zone site with the ports of dz number three back in 1998. The Current Operations agreement, which is a term of 17 years expires at the end of july. A few weeks. The proposed operations agreement will update the current agreement, language, and make it more in alignment with the other sub zone agreements that we currently have. A little bit of background get the Foreign Trade zone boards is the governing body and administrative body of the Foreign Trade Zones Program it it is headed by the us secretary commerce and also the secretary of Homeland Security in washington dc. Foreign trade zones board staff sits under the International Trade administration of the department of commerce and it recommends to the board approval of all ftc Site Applications and also administers the program. The u. S. Customs and Border Protection, which sits under the department of Homeland Security, is oversight and Enforcement Agency app of the ftc program. The local San Francisco and oakland opposite of customs and Border Protection basically oversee our area. Including the richmond refinery. This San Francisco Port Commission as grantee of Foreign Trade zone number three is essentially the local franchise the Foreign Trade zone board and responsible for certain activities including facilitating administering local users of the Foreign Trade zone program. The Foreign Trade number three service area encompasses all or parts of seven bay area counties