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Port Commission slows Warriors arena timeline, cites need for more CAC review
Summary
Port staff and the Golden State Warriors presented a fiscal-feasibility report for a proposed multipurpose arena at Pier 3032 and Seawall Lot 330; commissioners voted to extend ENA target and performance dates to allow more CAC workshops and negotiation time. Neighbors and CAC members urged more review of the analysis, raised traffic and equity concerns, and pressed questions about the deals finance terms.
Port Commissioners on Nov. 13 voted to slow the schedule for negotiating a term sheet for the proposed Golden State Warriors arena at Pier 3032 and associated development on Seawall Lot 330, saying the extension will give the Citizen Advisory Committee (CAC) and neighborhood stakeholders more time to review fiscal materials and shape community input.
The Ports Office of Economic and Workforce Development presented a fiscal-feasibility report that staff said shows the project could generate roughly $19 million in annual direct and indirect economic benefits, about $53 million in one-time city fees, and approximately $60 million a year in visitor spending. Staff said the development would create an estimated 2,600 job-years of construction employment and about 1,700 permanent jobs; total construction cost was described as nearly $1 billion. Under the conceptual framework described by staff, the Warriors would privately finance development and the citys reimbursement of agreed infrastructure would be capped at $120,000,000, with a 13% cost-of-capital applied to reimbursements.
"Fiscal feasibility is a gatekeeping measure to start environmental review," Jennifer Matz of the Office of Economic and Workforce Development told the Commission, adding that the appraisal-based conceptual framework and financing model underpin the Board of Supervisors hearing scheduled to consider the fiscal feasibility finding.
Members of the Pier 3032 CAC and a long list of speakers urged more time to review the analysis and engage in discussion. "We have not had a chance to discuss this fiscal feasibility study," Katie Liddell, chair of the Pier 3032 CAC, said. "Wed like a 30 to 60 day extension so we can actually have a CAC meeting and talk to each other." Several residents and neighborhood advocates echoed that concern, saying the pace of decision-making has been too fast for effective public vetting.
Warriors representative Rick Weltz said the ownership group is committed to making the site work and that the team intends to privately fund the project. "We are committed to making this one work and restoring this very valuable piece of the San Francisco waterfront for use by all Bay Area residents," Weltz said, and reiterated the teams view that the project would create long-term jobs and public space.
Commissioners pressed staff and the Warriors on transport and neighborhood impacts and on how community benefits and minority-business participation would be secured. Brad Benson, the ports special projects manager, said the term sheet negotiations will address how public services required for large events (police details, DPW crews, additional transit) would be funded and how repayment mechanisms for private infrastructure investment could work, including an infrastructure financing district and rent credits.
After public comment and back-and-forth questioning, the Commission approved an amendment to the exclusive negotiating agreement (ENA) to push the target date for term-sheet approval to Feb. 15, 2013 and the ENAs performance date to April 15, 2013, giving staff and the CAC more time for workshops and negotiations. Commissioners emphasized they were not endorsing any final term-sheet terms or project approvals at this hearing; the fiscal-feasibility finding is informational before the Board of Supervisors and is the start of the environmental review process.
Next steps: staff will hold the scheduled transportation and neighborhood workshops (including Dec. 4) and return with further detail on term-sheet benchmarks, financing mechanics and community-benefit provisions. The Board of Supervisors was scheduled to consider the fiscal-feasibility finding the day after the Port hearing.
