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Board approves sole-source exemption and amendments for Teatro Zinzani development on port property
Summary
Supervisors unanimously approved a resolution exempting port property at Seawall Lots 323–324 for a proposed Teatro Zinzani dinner theater and boutique hotel, and accepted amendments requiring an RFQ and an independent real estate appraisal during negotiations.
The Board of Supervisors unanimously adopted a resolution on April 21 approving a sole-source exemption to the city's competitive bidding policy for a proposed development at Port property (Seawall Lots 323 and 324) by Teatro Zinzani and financial partner Kenwood Investments operating as TZK Broadway. The project would include a dinner theater, a maximum 200-room, 40-foot boutique hotel, and an approximately 7,500-square-foot privately financed public park.
Supervisor David Chiu (Kim) explained his decision to dissent at the Land Use Committee to the sole-source waiver while endorsing the project itself. He said he supported the proposal—citing neighborhood support and the project's potential to activate the Broadway corridor—but asked for additional procedural safeguards because the committee was being asked to waive a public competitive process. Kim introduced amendments requiring that Teatro Zinzani complete the RFQ submission process and that the Port hire a third-party real estate economic consultant during lease negotiations to ensure fair market value for the lease of the Seawall lots. Deputy City Attorney John Gibner confirmed the amendments were properly described for the record when copies were circulated to the clerk.
Several supervisors, including Scott Wiener, Eric Mar and John Avalos, praised the project for its arts and economic benefits, and noted neighborhood outreach and support. Supervisor Christiansen said the project appeared to have universal support in his district and described it as a gateway entertainment venue for Broadway, North Beach and Chinatown.
Supervisor Kim moved the amendments; Supervisor Christiansen seconded. The board approved the amendments without objection, then voted 11-0 to adopt the resolution as amended.
The resolution exempted the port transaction from the administrative code competitive-bidding policy and authorized proceeding with the proposed lease and development framework subject to the agreed amendments.
