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Commissioners press port staff for data, defer action on Bar Pilots lease amendment

San Francisco Port Commission · March 26, 2013
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Summary

Port staff presented a proposed second amendment to Lease L14282 with the San Francisco Bar Pilots to modify the Pier 9 rental schedule; commissioners pressed for demographic and compensation data, warned about setting a precedent for renegotiations, and directed staff to return in May with additional information.

Port staff presented a proposed second amendment to Lease L14282 with the San Francisco Bar Pilots Association, a long‑standing maritime tenant at Pier 9, that would amend the rent schedule and remove a 20% maritime discount while eliminating a series of small cost‑of‑living increases.

Michael Nurney, marketing manager in the Maritime Division, told the commission the pilots—s current lease began in 2008 and that the amendment would allow rent to be reset to prevailing market rates every five years. Staff estimated the change would generate about $1.2 million in additional port revenue over the lease term while giving the bar pilots short‑term financial flexibility.

Commissioners sought additional information before taking final action. One commissioner asked about the pilots—s workforce composition and whether the association included "any pilots of color, any women," to which staff replied they did not have full demographic data on hand. Commissioners also probed compensation, with staff noting that the pilots operate like a membership equity organization and that historic pay references may reflect peak market conditions.

Several commissioners expressed concern that reopening and renegotiating leases could set a precedent that would prompt other tenants to seek retroactive changes. As one commissioner put it, renegotiation "is a dangerous precedent" if the commission begins to revisit bargains made at the time leases were signed.

The commission did not approve the amendment at the meeting. Instead, staff was directed to return in May with the bar pilot representatives present and with additional information on demographics, compensation, lease comparables and options for alternative negotiation approaches.