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Port Commission approves first amendment to Pier 70 negotiation agreement with Forest City

Port Commission, City and County of San Francisco · January 14, 2014
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Summary

The Port Commission approved a first amendment to the Exclusive Negotiation Agreement (ENA) with Forest City that adjusts interim leasing, increases developer contributions for staff and non‑port costs, and clarifies performance milestones; commissioners probed cost caps, the developer’s 18% preferred return, and whether ballot measures count as force majeure.

The Port Commission voted to approve a first amendment to the Exclusive Negotiation Agreement (ENA) with Forest City Development California Inc. for the Pier 70 waterfront site, authorizing changes to interim leasing, negotiation fee schedules and cost‑recovery provisions and reaffirming the project’s performance schedule.

Ricky Tidani, development project manager in the port’s planning and development division, told the commission staff and the developer have been negotiating adjustments after due diligence showed the complexity of the project requires additional funding and new terms. He said Forest City has already paid about $700,000 for the initial negotiation phase and staff now expect larger costs for phase two, so the…

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