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Commission extends Warriors ENA and staff flags $171 million pier substructure estimate
Summary
The commission approved a one-year extension to the exclusive negotiating agreement with the Golden State Warriors to accommodate a longer public-review schedule; staff reported a third-party hard-cost estimate of approximately $171 million for pier substructure work and added roughly $875,000 to the reimbursement budget to cover an additional year of city costs.
The Port Commission approved a second amendment to the Exclusive Negotiating Agreement (ENA) with Golden State Warriors sponsor GSW Arena LLC, shifting milestone dates later to accommodate an extended environmental review and community process.
Brad Benson, special projects director, told commissioners the revised schedule expects a draft environmental impact report in August, a term-sheet endorsement by the commission in November, and approvals and transaction documents through early 2015, targeting a facility opening in fall 2018. Ken Rich of the Office of Economic and Workforce Development said staff will continue outreach through the Community Advisory Committee and work to refine design and mitigation for neighborhood impacts including crowd management and transportation.
Benson also reported that Martin Lee Corporation prepared a third-party validation of the Warriors's revised cost estimate and concluded the pier substructure hard-costs are about $171,000,000, a figure similar to the sponsor's number. To cover an additional year of staff and city legal costs tied to the extended process, staff proposed a revised transaction budget that adds approximately $875,000 to reimbursement expenses; the Warriors would pay $200,000 toward existing outstanding costs and defer roughly $500,000 until April 2015 under the proposed amendment.
Public commenters raised both support and concerns. Dennis Mackenzie urged community benefits (career-pathway classroom) while Sue Hester warned the draft EIR schedule could overlap with the November election and urged more time for public review. Staff and commission members said CEQA comment periods commonly extend beyond the statutory minimum and anticipated the planning department may extend review time where warranted. The commission voted to approve the ENA amendment by voice vote.
