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Committee backs Port‑NPS term sheet for Alcatraz ferry and visitor site at Piers 31–33

San Francisco Board of Supervisors Budget and Finance Committee · November 16, 2016
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Summary

The committee recommended forwarding a 30‑year term sheet between the Port of San Francisco and the National Park Service to establish an Alcatraz ferry and visitor site at Piers 31–33; the package includes port and conservancy investments, rent credits to a ferry concessionaire, and technical redlines referencing the federal concession statute and coterminous leases.

The Budget & Finance Committee on Nov. 16 recommended that the Board of Supervisors consider a term sheet and memorandum of understanding between the Port of San Francisco and the National Park Service (NPS) to establish an Alcatraz Island ferry and visitor site at Piers 31–33.

Jay Edwards, senior property manager for the Port, described the proposed framework as a long‑term (30‑year) agreement that sets out each party’s responsibilities: the NPS will secure a contract with a ferry concessionaire and with the National Parks Conservancy, while the Port will enter leases (intended to be coterminous with concession terms) and invest in the site substructure. Edwards said the anticipated investment totals roughly $25 million in substructure and facility improvements — about $16 million expected from the concessionaire, $4 million from the conservancy, plus approximately $5 million from the Port — and discussed projected base rents and percentage rents analyzed by the Budget Analyst’s Office.

Rebecca Benzini (Planning & Development, Port) introduced technical redlines to the resolution that reference the federal statute governing concession procedures and to ensure lease terms are coterminous with concession contracts, which she described as important for certainty for concessionaires and partners.

Budget analyst Harvey Rose reviewed the packet’s financial estimates, including Port investment for Pier 31 substructure repairs (~$5 million), conservancy and ferry‑contractor facility improvements (about $20.78 million), rent credits to the ferry contractor (maximum of about $2.52 million over the first four years), and conservancy rent credits (~$554,000). Rose reported a conservative ten‑year base‑rent net present value estimate of roughly $7.34 million to the Port under the packet assumptions and supported the department’s amended recommendation.

Public commenters including Stacy Slaughter (San Francisco Giants executive vice president of communications and Conservancy board member) and John Ballesteros (San Francisco Travel) urged adoption, highlighting visitor experience and tourism benefits. Supervisor Tang moved to amend and forward the resolution with a positive recommendation and Chair Farrell was added as a co‑sponsor; the committee took the motion without objection.

What happens next: Port and NPS staff plan to finalize the MOU, prepare concession and lease documents, complete CEQA and other regulatory reviews, and return to the Port Commission and Board of Supervisors for approvals and any required procurement or sole‑source waiver actions.