Committee advances port revenue bond measures to fund pier repairs and new projects

The Budget and Finance Committee voted to send three port items to the full Board of Supervisors: an ordinance authorizing the Port to issue revenue bonds by adding procedures to the Administrative Code; a resolution authorizing up to $45 million in port revenue bonds; and an ordinance appropriating approximately $33,395,571 of bond proceeds for capital repairs and projects.

Tina Olson, speaking for the Port of San Francisco, told the committee that the port recently paid off earlier bonded indebtedness and has identified projects to fund with a new bond issuance. Urgent work would include approximately $5.5 million for Pier 35 repairs, which staff said could become unsafe without intervention, and $2 million to complete leasable tenant space on the second floor of Pier 33. The port is also proposing $10 million for design of a Pier 27 cruise terminal and additional funds for Pier 19/23, Pier 50, and backlands infrastructure improvements. Olson said the port projects, when completed and leased, could generate an estimated $6.8 million in additional annual lease revenues for the port and an estimated $1 million a year in benefits to the city—s general fund.

Deputy City Attorney Ken Ryu explained the port and city concluded a local ordinance tailored to the city—s needs was preferable to using the older state 1941 revenue-bond law, which carries more notice and possibly voter approval requirements. The committee accepted staff—s documentation and moved the items forward with recommendation.

Supervisor questions focused on the port—s repayment assumptions, revenue projections for the proposed cruise terminal, and the use of existing lease revenues to service debt. Olson and port staff said existing lease revenues will continue to be used to repay bonds and that projected new lease revenues are intended to grow the port—s balance sheet for future projects.