Port Director Search Paused After Applicants Withdraw; Waterfront Deals Advance

The San Francisco Port Commission's April 28 meeting — described by its president as the shortest in the body's history — was dominated by a single disclosure: the search for the Port's next permanent director has hit a snag, with multiple finalists dropping out. The commission also quietly advanced a settlement and restructured development deal for Piers 38 and 40, and pressed staff on delinquent tenants at two high-profile Embarcadero restaurants.

• Port Director search recast after several applicants withdrew; commission aims to wrap by summer 2026
• Settlement with Pacific Waterfront Partners and amended exclusive negotiations for Piers 38/40 development approved unanimously
• Broker engaged for Waterfront Restaurant tenant solicitation amid strong market interest; Pier 23 tenant faces June deadline
• South Beach Marina repair contract increased to $4.1M with extended timeline
• Six resolutions adopted unanimously on consent, covering youth internships, waterfront development, capital projects, hazmat abatement, and commissioner travel

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Port Director Search Hits a Wall

Why it matters: The Port of San Francisco oversees billions in waterfront assets, from cruise terminals to mixed-use development sites. An extended vacancy at the top stretches interim leadership during active negotiations on major projects — and sends a signal to development partners about institutional stability.

Where things stand: After emerging from closed session, the commission voted 5-0 to publicly disclose the status of its executive search. President Gail Gilman delivered the news directly.

"Due to unforeseen circumstances, several applicants withdrew from the search process, reducing our overall pool of amazing candidates," said President Gail Gilman.

Gilman said the commission decided to "recast some aspects" of the search but stressed it was not starting over. She pointed to the strength of the Port's current interim leadership as a reason for confidence.

"We felt confident in taking this step because of the strong leadership currently in place at the Port," she said.

The commission expressed continued confidence in the remaining applicant pool and set a target to conclude the search by summer 2026. Gilman addressed the delay head-on: "We apologize to the public and to the staff for this delay, but we still plan to conclude by this summer and we believe we will have the best leader for the Port of San Francisco."

What's next: The search continues under a revised process. No specific timeline for next steps was disclosed beyond the summer target. The Port will continue operating under Acting Director Martin and the existing leadership team.

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Piers 38/40 Deal Restructured as Waterfront Partners Settlement Clears

The basics: Piers 38 and 40, located along San Francisco's Central Waterfront, are significant development sites that have been the subject of long-running negotiations. Pacific Waterfront Partners, LLC had a prior tenancy relationship with the Port at two facilities that is now being formally resolved.

Why it matters: The consent calendar included two related resolutions — a settlement agreement with Pacific Waterfront Partners, LLC and an amended and restated exclusive negotiations agreement with San Francisco Waterfront Partners, LLC for proposed development at Piers 38 and 40. Together, they reshape the development terms for a major stretch of the city's waterfront.

Decisions: Both resolutions (26-21 and 26-22) passed unanimously, 5-0, as part of the consent calendar with no public comment. The settlement resolves a dispute tied to former tenancy at two port facilities, while the amended negotiations agreement restructures the framework for the Piers 38/40 project going forward.

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Commissioners Press Staff on Waterfront Restaurant Vacancies and Tenant Delinquencies

Why it matters: Two prominent Embarcadero restaurant locations — the Waterfront Restaurant and Pier 23 — are either vacant or entangled in delinquency negotiations. The outcomes affect both Port revenue and public access to waterfront dining.

Where things stand: During the New Business portion of the meeting, commissioners asked Acting Director Martin for updates on both properties. On the Waterfront Restaurant, the news was encouraging.

"We've engaged a broker to manage a solicitation for that. So we're actually receiving a number of proposals that have had good interest in the market," Acting Director Martin reported.

Pier 23 is a more complicated situation. The current tenant has been asked to submit a business plan proposal by June, which staff will use to frame next steps.

"I believe that's due in June. So I expect after that we'd like to come back to you, probably in closed session, to discuss the status and a potential settlement workout that hopefully would make sense, or if not, we'll have a different kind of conversation," said Acting Director Martin.

The other side: A commissioner pressed on how long the Pier 23 negotiation has been dragging on and asked about typical timelines for delinquent tenants. The Acting Director acknowledged the tension between the Port's interest in retention and the need for enforcement.

"I think we have a real interest in keeping tenants in place because it's so hard for us to replace tenants. But as we all know, there's an end point to that," Acting Director Martin said.

Commissioners signaled they want a broader informational briefing on how the Port manages tenant delinquencies across its portfolio — weighing the cost of retention against the cost of litigation and vacancy.

What's next: Staff expects to return to the commission after the June business plan deadline, likely in closed session, to discuss Pier 23 options. The Waterfront Restaurant solicitation is actively underway.

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Minor Items

• Youth internship grant approved: Resolution 26-20 authorized a five-year grant to Enterprise for Youth for internship payroll and employment administration supporting Port internship programs. (Passed 5-0.)
• South Beach Marina repairs: Resolution 26-23 extended the completion date and increased the authorized amount for Construction Contract No. 2796R to not exceed $4,128,711, up from $4,028,711 — a $100,000 increase. (Passed 5-0.)
• Hazmat abatement contract amended: Resolution 26-24 amended the as-needed hazardous materials abatement services contract with KM 106 Construction. (Passed 5-0.)
• Commissioner travel: Resolution 26-25 approved Vice President Stephen Engblom's travel to the Milken Institute's 29th Annual Global Conference in Los Angeles, May 3–6, 2026, at a cost not to exceed $4,000. (Passed 5-0.)
• April 14 meeting minutes approved unanimously.
• No public comment was received at any point during the meeting.