Port Backs $2M Wharf Grant, Restructures Pier 70 Tax District

The San Francisco Port Commission moved unanimously on two financial instruments shaping the waterfront's future — extending a multimillion-dollar grant to keep Fisherman's Wharf revitalization on track and restructuring a tax district at Pier 70 to protect tenants in a brutal office market while funding Crane Cove Park in perpetuity. Commissioners also got their first look at a sweeping five-acre redesign of Embarcadero Plaza and Sue Bierman Park, a project that could reshape the gateway between downtown and the waterfront by late 2027.

• $2M bridge grant extends Fisherman's Wharf CBD funding to $8.3M total as the Port negotiates becoming a permanent assessment-paying member
• Pier 70 tax district restructured to drop a $2.73/sqft infrastructure levy, easing pressure on tenants like Y Combinator and Astranis while creating a perpetual Crane Cove Park funding stream
• Five-acre Embarcadero Plaza and Sue Bierman Park redesign unveiled, with stormwater gardens, nighttime activation, and demolition slated for December 2026
• Former Commissioners Gail Gilman and Steven Lee honored with extended tributes for steering the Port through the post-COVID crisis
• Port plans formal drone policy after Pokemon World Championships drone shows drew up to 20,000 spectators nightly

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Fisherman's Wharf: $8.3M in Grants, and Then What?

Why it matters: The Port's largest revenue-generating neighborhood is getting another lifeline — and a structural overhaul in how it's funded. But commissioners want to see the receipts.

Where things stand: The commission unanimously adopted Resolution 2645, extending the Port's sole-source grant to the Fisherman's Wharf Community Benefits District by 12 months and increasing the not-to-exceed amount by $1,953,902, bringing the total grant to $8,322,138 over approximately 4.5 years. The grant funds uniformed ambassadors, beautification projects, marketing, and events including activation of Crab Wheel Plaza and entertainment zone programming on Jefferson Street.

Amy Cohen, Real Estate Division, presented the item, noting that June 2026 foot traffic at the Wharf showed a 9% increase over June 2025. The grant expires in January 2027, but Port staff are already negotiating a longer-term fix: joining the CBD as an assessment-paying property owner when the district's early renewal and expansion campaign begins in January 2028.

The backstory matters. Bri, executive director of the Fisherman's Wharf CBD, explained that between 2006 and 2020, two separate CBDs operated at the Wharf — a port-side merchant-funded district for marketing and a landside property assessment district. During COVID, the port-side CBD dissolved when businesses voted not to renew. The current grant bridged that gap.

Executive Director Michael Martin said the Port would phase in tenant assessments gradually through lease provisions rather than imposing them unilaterally. "I'm envisioning a transition where we're going to be paying the lion's share of the CBD assessments. But as we build out, as we bring in new tenants for Fisherman's Wharf Forward, that's going to be part of the deal — they'll take that off our shoulders."

The other side: No one opposed the grant, but President Stephen Engblom pushed hard for better accountability on the return. "I just looked quickly — 43 million people come to Fisherman's Wharf every year. 9% of that is 1.2 million extra people coming to the waterfront. How much does that turn into in terms of economic spend? Because we need to tell the story."

Commissioner Vanessa Hartigan compared the investment to a five-year strategic planning cycle, expecting front-loaded spending with growing revenue returns over time. Commissioner Willie Adams asked about the CBD transition structure.

Martin committed to bringing back an investment and ROI strategy when the formal CBD membership item comes before the commission. "Fisherman's Wharf is lagging significantly behind" other waterfront areas, he said, arguing "it was a place that no one wanted to invest in and people weren't going."

Decisions: Resolution 2645 passed 5-0 (For: 5, Against: 0, Absent: 0).

What's next: Port staff will return with an investment and ROI analysis tied to the CBD membership proposal. The Port aims to join the CBD as an assessment-paying member beginning January 2028.

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Pier 70: Trading a Tax for a Park

The basics: A Community Facilities District, or CFD, is a special taxing district authorized under California's Mello-Roos law that lets local governments levy special taxes on properties within a defined area to fund infrastructure or services.

Why it matters: The Pier 70 Historic Core — eight rehabilitated former shipyard buildings housing 338,000 square feet of workspace — is one of the waterfront's biggest success stories, but a 30% citywide office vacancy rate is threatening its tenants. The commission voted to restructure the tax burden to keep them.

Where things stand: The commission unanimously adopted Resolutions 2646 and 2647, initiating formation of a services-only CFD for the Pier 70 Historic Core and amending the master lease with Historic Pier 70 LLC (Orton Development). The original lease, approved in 2014, contemplated two taxes: a facilities special tax of $2.73/sqft and a services tax of $0.80/sqft. The revised structure eliminates the facilities tax entirely and creates a single services-only CFD with a higher services rate to fund the identified budget gap at Crane Cove Park and Pier 70 maintenance. The tax grows with CPI and runs in perpetuity — approximately 55-plus years remaining on the lease.

Wyatt Donnelly Landault, assistant deputy director of development, laid out the rationale plainly: "We have a 30% office vacancy. Any additional assessment is economically challenging to tenants. And we did not want to threaten the success of this project or push tenants out."

The project has exceeded revenue projections by over $3 million. Major tenants include Astranis (satellite manufacturing), Y Combinator, Gousteau, and Restoration Hardware.

James Matinson, president of Orton Development, provided context on just how far the project has come: "The buildings were red tagged and in danger of imminent collapse. When we first started on the project, they were filled with wildlife." He praised the partnership structure, in which the Port participates in cash flow after debt service.

The other side: Commissioner Hartigan pressed on potential gaps from losing the facilities tax. Donnelly Landault acknowledged it eliminates an infrastructure funding source but said addressing Crane Cove Park's immediate maintenance needs was the priority.

The formation process requires a resolution of intention, a special landowner election (the Port is the sole voter — no residents live in the district), and Board of Supervisors approval, taking approximately six months total. Vice President Ken McNeely moved to add Board of Supervisors file number 140729 to Resolution 2647 before the vote.

Decisions: Resolutions 2646 and 2647 passed 5-0 (For: 5, Against: 0, Absent: 0).

What's next: The CFD formation moves to a landowner election and Board of Supervisors approval over the next six months.

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A New Front Door: Embarcadero Plaza Gets a Five-Acre Makeover

Why it matters: The space connecting downtown San Francisco to the Ferry Building and waterfront is fragmented, largely pre-ADA, and underperforming as a civic gathering space. This redesign aims to fix all three problems — with sea-level-rise adaptation built in.

Where things stand: Nico Wright, principal planner for urban design and open space, and Ioana Goodwin, capital project manager for the Recreation and Parks Department, presented the concept design for renovating Embarcadero Plaza and Sue Bierman Park — approximately five acres of public open space on Port and city land near the Ferry Building. The project transforms two disconnected spaces into a unified waterfront park with a neighborhood corner (family zones, fitness, dog play near residential towers), a large multi-use lawn, a new performance area, and improved accessibility, circulation, planting, seating, and lighting.

Community engagement over three meetings surfaced consistent priorities: more green space, better accessibility, improved seating and lighting, flexible gathering space, and historical recognition. A 50/50 weekday-weekend usage split emerged from surveys.

A distinctive design feature: stormwater gardens along the Embarcadero edge, required by the Sea Level Rise Action Committee. Goodwin explained the tradeoff directly: "A lot of the water is all getting directed towards that Embarcadero edge. We've heard from community meetings — can you put the dog play area there? Can you put other programs along Embarcadero? And we really couldn't. We needed that to be gardens, one to collect the rainwater, but the other is to make that edge flexible" for future adaptation.

The project is a public-private partnership with RPD leading, the Office of Economic and Workforce Development participating, the SF Downtown Development Corporation handling private fundraising, BXP (the Embarcadero Center neighbor) contributing design services and advancing early implementation, and the Downtown SF Partnership supporting fundraising and outreach.

Commissioner Hartigan compared the project favorably to the Presidio's Tunnel Tops. Commissioner Adams honored Sue Bierman's legacy. President Engblom asked about Port-side programming opportunities and pushed for interim activation during construction.

What's next: Port and RPD are developing an MOU for permitting, construction, maintenance, liability, and site access, expected before the Port Commission by end of 2026. Tree removals are already underway. A CMGC contractor will be advertised, demolition is targeted for December 2026, and construction would take approximately one year.

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Farewell to Two Commissioners Who Steered Through COVID

The commission devoted a substantial portion of the meeting to honoring Former Commissioner Gail Gilman (eight years of service) and Former Commissioner Steven Lee (four years), whose tenures spanned the Port's most challenging post-COVID recovery period.

Staff tributes were extensive. Brad Benson, Waterfront Resilience Program, noted commissioners receive no per diem or stipend. David Beaupre, deputy director of planning and environment, highlighted Gilman's push for a port-wide wayfinding system now being installed at Pier 50 and Lee's passion for water recreation. Alice Rogers, president of the South Beach Rincon Mission Bay Neighborhood Association, thanked Gilman for attention to the southern waterfront.

Commissioner Adams delivered the longest tribute, saying of Gilman and Lee: "You treated the port staff like gold, like the respect that they deserve. And I just want to say I honor you both and salute you."

Former Commissioner Lee described the moment COVID hit and 550 tenants stopped paying rent. "I told them that we have to give our tenants an opportunity to rebuild. We're not landlords anymore, but now we're an opportunity company to give our tenants a chance to rebuild."

Former Commissioner Gilman delivered the most pointed farewell, invoking the Burton Act public trust doctrine: "If the waterfront becomes a place where children from the Bayview are no longer going to Crane Cove Park and learning to canoe or swim, or where residents of North Beach can't afford to buy anything at Fisherman's Wharf because the land side is catering to tourists with fast food chains and the water side becomes unaffordable — we failed as a city."

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Drone Shows, Blue Economy, and Waterfront Activation

Executive Director Martin's report signaled a strategic pivot toward drone entertainment as a waterfront draw. The Pokemon World Championships (Aug. 28–30) brought an estimated 54,000 visitors — two-thirds international — and Port-hosted drone shows at the Ferry Building drew 7,000 to 20,000 spectators nightly.

President Engblom called the shows "the future" and urged the Port to develop a comprehensive drone strategy, including FAA partnerships and designated drone control points along the waterfront. Martin said a formal drone policy and special event activation strategy update are planned for this fall.

Martin also reported on Fisherman's Wharf Forward progress, including the recent Alioto's Plaza opening with Mayor Lurie and the Woods Beer and Wine Company taproom opening. Engblom highlighted the Alioto's Plaza project as a model of San Francisco executing quickly, noting: "A lot of times we think about progress as building something. What's really interesting to me about that project is that we unbuilt something — we opened up a view. And sometimes the power of a view is more valuable than the power of a single building."

On the Blue Economy initiative, Commissioner Adams asked about the status of leasing incentives. Martin confirmed 14 applications were received and an informational update would come this fall.

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Minor Items

• Minutes approved: Aug. 11, 2026 meeting minutes adopted unanimously.
• Closed session: Commission voted unanimously to enter and return from closed session for conference with legal counsel; no reportable action.
• Ramaytush Ohlone Land Acknowledgement was read.
• Coastal Cleanup Day: Port maintenance co-hosting volunteer events Sept. 19 at Pier 94 Wetlands (with Golden Gate Bird Alliance for a meadow restoration project after a 2025 fire) and Islais Creek Park (with Kayaks Unlimited).
• National Hispanic Heritage Month (Sept. 15–Oct. 15): Foodwise Celebrating Latine Makers event Oct. 3 at Ferry Plaza; Mexican tall ship Cuatamac visiting Pier 15 Sept. 23–27.
• Waterfront Walkabout: New monthly art activation series launching Sept. 17 in partnership with Big Art Loop, Building 180, Downtown SF Partnership, Street Plans, and the Ferry Building, featuring sculptures between Pier 14 and Pier 15.
• Fleet Week 2026 (Oct. 4–12): Air shows, Fleet Fest at the Triangle Lot, ship tours, and landside equipment tours on Port property.
• New business flagged for future agendas: Blue Economy initiative update, drone strategy, Fisherman's Wharf CBD investment/ROI analysis, and waterfront activation strategy.
• Meeting adjourned at 5:37 p.m.