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Operators seek more time and consultation on Port's maritime excursion lease-renewal policy
Summary
Port staff introduced a draft maritime excursion lease-renewal policy; Blue & Gold, Red and White and Hornblower said they received the draft too recently and asked for a roundtable. Staff said policy aims to bring parity and transparency and pledged more outreach before a February decision.
Port staff presented a draft maritime excursion lease-renewal policy designed to standardize how the port considers renewals for maritime excursion tenants, including conditions for term extensions, market-rent review, tenant good-standing, and requirements that capital improvements be completed at tenant expense.
Peter Daly, deputy director of maritime, said the policy aims to "ensure maritime excursion leases are equitably administered, are fairly valued, generate revenues to the port and serve San Francisco residents and visitors." Daly explained the policy would generally limit modifications to use and said any change of use would be considered through a formal solicitation process.
Heads of the city's major excursion operators urged delay and direct consultation. Taylor Safford, president of Blue and Gold Fleet, said she received the policy only the previous day and asked for clarification on whether the draft applies to maritime business leases as well as maritime excursion leases; she requested a roundtable discussion before the February commission meeting. Joe Burgard, vice president of operations at Red and White Fleet, said he supports a level playing field but asked for more time to understand staff's goals. Richard Jacobs, vice president and general counsel for Hornblower, said the policy appeared to affect three principal operators and that tenants had not been consulted during staff development of the draft.
Executive Director Monique Moyer and maritime staff responded that the policy is intended to bring parity and transparency to maritime excursion renewals, that staff would arrange outreach and tenant meetings, and that the February agenda could be adjusted if tenants need more time. "If the February 9 meeting is too soon, I want you to have our assurance that we won't," Moyer said.
Staff will hold meetings with operators and the Maritime Commerce Advisory Committee and return to the commission with a revised policy after additional stakeholder consultation; no policy was adopted at this meeting.
