Port Commission approves two short-term ground leases for storage uses in Seawall Lot 349

The Port Commission voted to approve two ground leases with Affordable Self Storage, Inc. for portions of Seawall Lot 349 in the Southern Waterfront as part of a Pier 70 staging and interim-use strategy.

Gerry Romani of the Port Real Estate Division summarized the two leases. Lease L15690 covers roughly 74,742 square feet with an initial term of 58 months and up to five 12‑month extension options; intended use is a temporary mini-storage facility comprising portable storage containers and administrative offices. The base rent for year 1 was quoted as $24,664.86 per month (about $0.33 per square foot), with 3% annual increases in subsequent years. The estimated commencement date is Jan. 1, 2014.

Lease L15691 covers approximately 144,818 square feet for vehicle, truck, bus and container storage, has a 31‑month term and a year‑1 base rent of $47,789.94 per month (about $0.33 per square foot), also with 3% annual increases. Both leases require Board of Supervisors approval because anticipated lease revenues exceed $1,000,000.

Commissioners pressed staff on the unusual relocation/relocation‑assistance language in the leases, which was added at Forest City’s request to accommodate phased development and possible tenant moves as the broader Pier 70 plan is implemented. Romani said the clause was negotiated to provide flexibility given Forest City’s phasing projections; staff also said the longer parcel is planned for later phases (possibly 10–15 years out under current phasing), so the port negotiated a shorter initial term with extension options to retain flexibility.

Commissioners also asked about contributions to the Southern Waterfront Community Benefit Fund; Brad Benson confirmed that lease revenues are subject to the Port’s policy requiring a deposit (reported in the meeting as roughly 7–8% of lease proceeds) into that fund, and staff said they had discussed potential landscaping or beautification improvements with the tenant.

After discussion the commission moved, seconded and adopted the resolutions approving the leases (resolution numbers announced as 1345 and 1346). Staff reiterated that the legislation would be forwarded to the Board of Supervisors for its required approval.

The leases were presented as interim and negotiated with Forest City phasing in mind; staff said the port retains relocation mechanisms and may relocate tenants to other port parcels if necessary though no guaranteed replacement site is specified in the leases themselves.