Port announces $22.68 million revenue bond sale; executive director details budget, donor program and construction updates

The Port of San Francisco announced that it sold $22,680,000 in port revenue bonds as part of its financing program, Director Moyer said at the May 28 commission meeting. “We sold, dollars 22,680,000 of port revenue bonds Series 2014,” Moyer said, noting the sale closed in two tranches — a tax-exempt Series A of $19,880,000 and a taxable Series B of $2,080,000. Staff reported a weighted true interest cost of 3.97%, which Moyer described as favorable in the current municipal market.

The sale was discussed as part of the executive director’s report, which also covered the port’s recent budget hearings before the Board of Supervisors and a pilot donor-recognition program developed during the America’s Cup. The donor program included three giving options — engraved bricks, benches and a small grove of trees — with staff saying roughly 250 bricks and 13 benches have been purchased and that proceeds were “approximately a half a million dollars,” although the exact amount was not confirmed at the meeting.

Moyer also updated the commission on construction and operations tied to the city’s maritime businesses. He said port maintenance crews had begun fender-system work at Pier 27 (three of nine fenders installed to date) and highlighted BAE’s ship-repair activity at Pier 70, including a recent dry-dock job on the cruise ship Norwegian Jewel that generated more than 30,000 labor hours. “So kudos all the way way around,” Moyer told commissioners, recognizing staff and partners on the bond transaction and projects.

Why it matters: The bond sale provides near-term financing for port projects and lowers the port’s borrowing cost compared with prior issuances, improving the port’s fiscal position as staff and the Board of Supervisors work toward a targeted budget adoption date this summer. The donor program and new terminal work also represent revenue and community-engagement strategies that could affect operations and programming at the James R. Herman Cruise Terminal and adjacent waterfront parks.

The meeting packet noted the bonds were scheduled to close May 29 and staff said the transaction was substantially complete pending final closing steps. The commission heard general thanks to staff for the financing work; no formal commission action was required on the bond sale during the meeting.

Next steps: Staff said it will return with more line-item budget detail after the Board of Supervisors process and will continue to monitor the donor program’s uptake and the Pier 27 construction schedule.