Cargo Business Newswire

Wednesday, June 25, 2014

Local grand jury raps Port of San Francisco

By Richard Knee

San Francisco's port authority does some things very well but is mismanaging waterfront development, according to a report released on June 19 by the city's Civil Grand Jury. The report says the port authority should to rely less on City offices such as the mayor's office and the Planning Department, and more on public outreach for policy guidance.

The port needs to revisit the 17-year-old plan for its 7.5-mile-long waterfront, increase its maritime focus, brace for a likely sea-level rise and ensure full public engagement in setting guidelines for its future, and the system of appointing the port commission's five members should be changed, the 58-page report said. The mayor currently picks all five commissioners; and the report advises the city charter be amended to shift the appointing authority for two commissioners to the Board of Supervisors.

The report, which the panel said was triggered by "a citizen's complaint regarding politically connected developers seeking to override the Waterfront Land Use Plan for profit," drew fire from the mayor's office.

An article in the San Francisco Examiner quoted a spokeswoman for Mayor Edwin M. Lee as saying, "There is more transparency, public input and public process when it comes to San Francisco's world-class waterfront than at any other time in our city's history."

Maritime operations account for only 25 percent of the port's revenues, the port and the mayor's office rely too much on funds from major real estate developers, and there are other potential sources, the report said.

Other possible funding sources include general obligation and revenue bonds, federal support for certain projects, Infrastructure Finance Districts and "additional tenant uses" for cultural and entertainment events on vacant piers.

Federal funding was recently approved for a freight rail service extension on a surface street into Pier 94-96 and was used in 2005 to build a bridge affording vehicle and rail access to Pier 80, the report said. Those piers hosted regular containership calls until the mid 1990s, when carriers shifted their business permanently to Oakland.

The report said the Waterfront Maritime and Land Use Plan "has served the port and the public well … but is now falling short of current needs." It said a revised plan should remain flexible enough to meet future unknown requirements while attempting to foresee opportunities, and should emphasize maritime use, especially along the southern waterfront cargo hub.

On the plus side, the report said, the port's Real Estate Division does "an excellent job" managing lease terms for a variety of tenants and finding new tenants; transformed the Ferry Building, the waterfront's hub, from "a somewhat rundown building that commuters passed through to walk downtown" to "a vibrant destination in itself;" expanded the Pier 2 ferry terminal to Pier 14, boosting traffic capacity beyond the current 130 daily vessel calls; and developed or planned more than 20 parks, plazas, open space and fishing piers as well as a shoreline bicycle and pedestrian trail that will eventually circle the bay.

In addition, Anchor Brewing "is expanding its operations to Pier 48 to take advantage of water transport for its raw materials and waste products."

Also on port property, the report noted, are the Exploratorium, a hands-on display museum at Pier 15; the West Coast's largest commercial fish processing facility at Pier 45; affordable and supportive housing developments; and AT&T Park, a stadium and cultural events venue.