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Port receives detailed update on Pier 70 rehabilitation, explores seismic loan and financing options
Summary
Ports planning staff and Orton Development updated the commission on a proposed $75 million rehabilitation of about 300,000 sq. ft. of Pier 70 historic buildings, outlining seismic‑loan financing, an infrastructure financing district, local‑hire targets and a construction timeline beginning in 2014.
Port planning staff and the Orton Development team presented an informational update on a proposed lease and rehabilitation of the historic building core at Pier 70, detailing design concepts, revised cost estimates and proposed financing mechanisms.
Kathleen Diehape of the Port’s Planning and Development group said the project — now estimated at about $75 million, up from an earlier $58 million estimate — would rehabilitate roughly 270,000–300,000 square feet of historic industrial buildings and return many structures to office, light industrial and public uses. Diehape described two new business terms: use of the city’s seismic safety loan program and the possible creation of an infrastructure financing district to fund site work and public infrastructure.
The Orton team (presenters identified as James/Jay Madsen and Eddie Orton) walked commissioners through building‑by‑building issues: red‑tagged unreinforced masonry wings (Buildings 113–114), plans for mezzanine bracing to meet current seismic code, restoration of historic office spaces, creation of atrium and courtyard public spaces, and a mix of light industrial and office uses. The team said construction could begin in early 2014, with initial tenant turnovers and tenant‑improvement work in early 2015 and project completion targeted around 2017.
Diehape described financing mechanics: the seismic loan would be a 20‑year, fully amortizing instrument at a taxable bond rate (staff estimated roughly 7.5%) that could leverage project feasibility by displacing a portion of private equity. She also said the Port has identified port funds and potential lease advances from the developer to address site work, including relocation of electrical service, sidewalk and roadway repairs, and environmental capping. Project staff noted historic preservation review under federal tax‑credit processes and compliance with Secretary of the Interior standards.
Commissioners asked about preservation of industrial features (cranes, trusses), local hire and LBE goals, interim shoring and the developer’s equity commitment; staff said some interim shoring funds were repurposed into the seismic rehab and that final underwriting and equity/debt splits will be presented with lease approval. No lease action was requested at this meeting — the presentation was informational to solicit commissioner feedback and confirm community outreach steps.
