Port Commission receives Pier 70 updates; OKs $750,000 contract increase for EPS and advances Sewell Lot 320 affordable housing MOU process

The Port Commission heard a series of presentations on the larger Pier 70 waterfront redevelopment and related affordable housing plans, and authorized an amendment to a consulting contract to provide additional real‑estate economic analysis for the project.

Jonathan Stern introduced an informational memorandum of understanding (MOU) with the Mayor’s Office of Housing and Community Development for Seawall Lot 320 Two‑one. Ricky Tijani, a port development project manager, said the MOU is intended to identify funding and implementation strategies that would allow an affordable housing development on the lot to help offset Pier 70 development costs. “What we are after here… is finding funding to help redevelop Pier 70,” Tijani said, outlining key constraints such as expensive pile foundations, historic‑district rehabilitation costs, and complex environmental and permitting requirements.

Tijani said the site is currently used for surface parking (about 151 self‑park spaces; convertible to about 225 with valet) and generates roughly $48,000 per month (about $576,000 annually) in revenue under current use. Staff estimated an affordable housing development at the site could yield roughly 80–120 rental units depending on unit type, and recommended a three‑year MOU term to allow the Mayor’s Office of Housing to issue an RFP and complete initial feasibility, entitlement and community outreach.

Brad Benson of port special projects and Sarah Dennis Phillips of the Office of Economic and Workforce Development briefed the commission on the Pier 70 phase‑2 schedule with Forest City, describing a 36‑month phase to initiate CEQA, draft a disposition and development agreement, prepare a land‑use and financial plan under Proposition D and coordinate with state agencies. Benson noted the commission cannot enter a binding development agreement with Forest City until CEQA is complete. “We can’t enter into a binding contract with Forest City on the development until after CEQA,” Benson said.

To support that body of work, the commission approved an amendment to the port’s professional services contract with Economic & Planning Systems Inc. (EPS), increasing the not‑to‑exceed amount from $500,000 to $750,000 and extending the term through April 30, 2015. Contracts manager Andre Sasevedo said EPS has been the port’s primary real‑estate economics consultant for Pier 70 and related projects; staff told commissioners some of the additional funds will be reimbursed by project partners under the exclusive negotiating agreement with Forest City. “We are seeking authorization to increase the not to exceed amount from $500,000 to $750,000 and to extend the term,” Sasevedo said.

Commissioners asked about LBE participation under the amended contract, budget management and the expectation that additional work with EPS will be offset by reduced spending on other consultants. A motion to amend the EPS contract carried and the secretary announced, “Resolution number 13 43 has passed.”

Next steps: staff will finalize the MOU with the Mayor’s Office of Housing, return with a refined project scope and proposed lease for Seawall Lot 320 when developer selection and feasibility work are complete, and proceed with CEQA and master‑plan level approvals for the Pier 70 plan according to the phase‑2 timeline.