Port Commission approves preliminary official statement for 2014 revenue bonds to fund cruise terminal and pier work

San Francisco — The Port Commission voted to approve the Preliminary Official Statement (POS) and continuing disclosure certificate for a 2014 port revenue bond issuance that will fund waterfront capital projects, including Phase 2 of the James R. Herman Cruise Terminal and improvements to historic northern waterfront piers.

Finance director Elaine Forbes and the port's bond team outlined the POS and the continuing disclosure certificate, documents required for investor outreach and SEC compliance. Forbes told the Commission the primary proposed uses included about $19.5 million for Phase 2 of the James R. Herman Cruise Terminal and roughly $1.94 million for Northern Waterfront historic piers and private leasing improvements; total project uses were described as approximately $24 million. "The preliminary official statement is a document to really let investors know about anything that could possibly go wrong for the Port of San Francisco and also to explain our operations and finance, our capital development strategy and risk factors," Forbes said.

Staff emphasized risk disclosures, citing aging port facilities, seismic exposure given nearby active faults, and other economic and regulatory constraints. The Commission was briefed on coverage ratios and a plan to meet continuing disclosure obligations after sale; staff will present to the Board of Supervisors and rating agencies as the sale proceeds in late April/May.

Vote and next steps: The Commission approved the POS and the continuing disclosure form (Resolution No. 14‑18); staff will proceed with investor distribution, rating agency briefings and a negotiated sale in May and return with results.

Provenance: Presentation started at SEG 1238 and the approval vote concluded at SEG 1548.