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Committee endorses Mission Rock park lease, management and utility licenses; port to fund short-term operating loan

3221031 · April 9, 2025
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Summary

The Budget and Finance Committee voted to forward agreements that accept China Basin Park and surrounding open spaces and authorize management and utility access agreements with Mission Rock Partners, including a port-funded loan of up to $800,000 to cover startup operating costs.

The Budget and Finance Committee on April 9 recommended that the Board of Supervisors approve a package of agreements enabling the Port of San Francisco and the Mission Rock developer to finalize park acceptance, long‑term management and utility arrangements for Mission Rock Phase 1, including China Basin Park.

Port project manager Wyatt Donnelly‑Landolt explained the package includes: (1) a lease and a loan agreement for China Basin Park; (2) a qualified open space management agreement for the Paseos and other non‑park open spaces; (3) two licenses with Pacific Gas & Electric for gas and electric facilities; (4) an absolving services agreement to allow PG&E to maintain electric service to the Third Street Bridge pilot house; and (5) a long‑term license for Mission Rock Utilities to access district energy and non‑potable black water infrastructure. Several agreements carry long terms (66 years for utility licenses) to match infrastructure life.

The port said Phase 1 is complete and acceptance is underway, but the multi‑phase project’s special taxes were not yet producing full revenues because later phases are still on hold. To cover initial operating deficits while programming and sponsorship revenues ramp up, the port will provide a loan to the park operator of up to $800,000 over the first three years (capped at $300,000 in any single year), rather than using Recreation and Park general fund dollars. The port also explained that the Paseo management agreement is structured as a “qualified management agreement” so that tax‑exempt financing for those spaces remains compliant with IRS rules.

The agreements include minimum public‑access hours for China Basin Park and maintenance standards aligned to Recreation and Park Department norms; bathrooms are required to operate at least 8 a.m.–8 p.m. and general park hours are 6 a.m.–10 p.m., subject to permitted events. The lease limits certain private uses and caps the number and size of large ticketed events (the port said large events are limited to 100 days per year and cannot occupy the whole park). The port will receive monthly programming reports from the park operator.

Vice Chair Matt Dorsey and Chair Connie Chan both spoke in support, and the committee forwarded the ordinance to the full board on a 3–0 vote. The port and the Mission Rock partners said they expected associated documents to be executed in early June, following board approval and normal holds.