Committee advances Exploratorium lease and CEQA findings, asks for written proof of financing

Supervisor John Avalos, chair of the Budget and Finance Committee, advanced a pair of measures on Oct. 28 that would clear the way for the Exploratorium's move to Pier 15 and a portion of Pier 17 on San Francisco's Embarcadero.

Port project manager Jennifer Sobel told the committee the relocation would rehabilitate the historic Pier 15, create extensive public waterfront access, retain maritime uses and provide space for the Exploratorium's galleries, classrooms, cafe and event areas. The proposal includes a future expansion into Pier 17 and replacement of the connector building with a new glass "Observatory Building." The committee was asked to recommend approval of CEQA findings (Resolution 091179) and the lease, parking agreement and curb licenses (Resolution 091178).

Budget analyst Harvey Rose highlighted financial terms in the analyst report: estimated port rental revenues over the 66-year lease of about $179.2 million for Pier 15 and $149.3 million for Pier 17, and an estimated Phase 1 construction cost of $175 million that the Exploratorium is required to finance. Rose recommended amending the lease resolution to require the Port to provide the Board of Supervisors, prior to close of escrow, with a written determination showing adequate evidence that the Exploratorium has secured sufficient funding to complete construction. "We recommend that you amend the resolution ... to require that the Port provide the Board of Supervisors prior to the close of escrow with a written report showing adequate evidence that the Exploratorium has secured sufficient funding to complete the construction of the Exploratorium project," Rose said.

Dennis Bartels, executive director of the Exploratorium, described the capital plan as consisting of private fundraising, historic tax credits and debt financing. "To date, we have raised over $130,000,000," Bartels said, and later added that "at present, we have $81,000,000 of that in hand already in our banks." He told supervisors the Port and the museum would continue to verify sufficiency of funds before any escrow closes.

Several public commenters, including Hashim Anderson from the Explainer youth docent program and representatives of Spur and the Ports Northeast Waterfront Advisory Group, urged committee support, citing improved access for underserved communities and waterfront revitalization.

Supervisor Carmen Chu said she was a co-sponsor of the substitute legislation and thanked Port staff. Supervisor Chiu moved to accept the budget analyst's recommendation to amend item 4 to document the amount raised or evidence of secured funds and to forward items 3 (CEQA findings) and 4 (lease as amended) to the full Board. The motion was taken without objection; the items will be considered by the Board of Supervisors at its next meeting.

Next steps: The committee forwarded the CEQA resolution and the lease package to the full Board with the amendment requiring the Port's written determination of adequate financing before close of escrow.