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Commission holds action on Bar Pilots lease amendment tied to Autodesk expansion
Summary
Port staff presented a proposed second amendment to the San Francisco Bar Pilots lease to shrink parking area by roughly 5,000 sq ft to accommodate an Autodesk expansion. Commissioners raised questions about market-reset mechanics, a maritime 20% discount policy and rent parity; the commission directed staff to renegotiate terms and held the item for further consideration.
Port staff presented a second amendment to Lease L14282 with the San Francisco Bar Pilots Benevolent and Protective Association that would reduce the Bar Pilots’ parking area by approximately 5,000 square feet to accommodate an Autodesk expansion adjacent to Pier 9.
Staff said Autodesk will invest at least $2,000,000 in tenant improvements to construct a robotics lab in abutting space; as part of the accommodation Autodesk would relocate the Bar Pilots’ fence and entrance gate and reimburse relocation costs and any port loss of rent tied to the reduced Bar Pilots space. The amendment would also update lease language on security deposit instruments, indemnification, and encourage local small-business participation in port contracts.
Commissioners questioned how the market-reset clause interacts with a maritime-use 20% discount policy, whether the Bar Pilots would be disadvantaged by receiving prevailing market rent when their current rate is above market, and whether the combined negotiation with Autodesk inadvertently re-opened lease terms historically negotiated at higher-than-market rates. Staff responded with rent-rate estimates (parametric and market levels), CPI and annual adjustment mechanics, and explained that the 20% maritime discount had a kick-in date in the original lease.
Because commissioners requested clearer separation of the Autodesk expansion negotiation from the Bar Pilots’ market-reset and asked staff to negotiate a more port-favorable outcome, the commission held the amendment over for further work and asked staff to return with refined terms and consultation with affected parties.
No approval was taken at this meeting; staff was directed to continue negotiations and return to the commission with clarified options.
