Port commission endorses 8 Washington term sheet for Seawall Lot 351, sends deal to CEQA and Board of Supervisors

The Port of San Francisco Commission voted to endorse a term sheet for Seawall Lot 351 — part of the 8 Washington project — setting the transaction’s economic framework but leaving final approvals to the environmental review and the Board of Supervisors. The endorsement, adopted as Resolution No. 10-66, authorizes staff to advance the negotiated term sheet and pursue the next steps in public review.

Port planning staff said the term sheet shifts the transaction from a conventional long-term lease toward a structure that includes a sale of the developable portion of Seawall Lot 351, covenants on future condominium transfers and ongoing park payments. Jonathan Stern, port planning and development (introduced the term sheet), summarized the principal financial pieces: a guaranteed $3,000,000 payment to the port at project stabilization (one year after construction completion), covenanted participation equal to 0.5% of condominium resale proceeds (with staff estimating at least $2,000,000 from first-sales proceeds), and an aggregated net-present-value estimate of roughly $10.1 million in direct value to the port from the combined payments and long-term participation. The…