Port Approves Budget, Parking Fixes as Fisherman's Wharf Reinvention Takes Shape

The San Francisco Port Commission moved swiftly through its biennial budget and a pair of parking code changes at Pier 70, then spent the bulk of its Feb. 24 meeting debating how to fill the vacant storefronts left behind by the demolition of Alioto's — and whether Fisherman's Wharf should chase tourist dollars or win back locals.

• Biennial budget for FY 2026-28 adopted alongside travel and contracting resolutions on a unanimous consent vote

• Pier 70 parking rules rewritten to help a bakery's early-morning staff and open metered spots near Crane Cove Park

• Four tenant proposals received for the new Fisherman's Grotto Cafe space, with a summer 2026 opening targeted on a percentage-rent-only lease

• Commissioners clash over signage revenue vs. neighborhood character at the Wharf, with President Gilman warning against a "Las Vegas" feel

• Dry Dock 2 emergency repairs running ahead of schedule; pump usage dropped dramatically after temporary patches

• Hyde Street Harbor fuel dock cleanup complete; Port negotiating to reopen fueling with gasoline added for the fishing fleet and recreational boaters

• SF Giants and Golden Voice launch Club Dark at Pier 48; General Catalyst signs 12-year lease at Pier 70

The Wharf's Next Chapter: Small Spaces, Big Debate

The longest and most spirited discussion of the meeting centered on how to repopulate Fisherman's Wharf after the Alioto's demolition cleared the way for a new public plaza and a cluster of smaller retail spaces — a strategy staff calls Fisherman's Wharf Forward.

The basics: The Port is preparing a roughly 2,000-to-3,000-square-foot Fisherman's Grotto Cafe space facing the new plaza, with about $600,000 in tenant improvements nested under the plaza construction contract. Four formal tenant offers have already come in. Staff is also exploring similar small-format leasing for the Tarantino's and Nick's Lighthouse spaces nearby, and the Fisherman's Wharf Community Benefit District plans to begin activating the plaza in 2026.

Why it matters: The leasing approach marks a deliberate pivot from the large sit-down restaurants that once defined the Wharf. Deputy Director of Real Estate Scott Landsittel told commissioners that "the retail market had shifted from big concept sit down formats to more grab and go casual entertainment driven concepts." (Lightly edited for clarity.) Staff is targeting short-term leases of two to three years with a percentage-rent-only structure — no base rent — designed to lower the barrier for small operators. "For these small mom and pops and for retailers that are getting up off the ground and really proving themselves and establishing a foothold on the market, you really need to do that because it's a sharing of the success and failure," Landsittel said.

Where things stand: Commissioner Steven Lee endorsed the small-space strategy enthusiastically, comparing it to the Ferry Building's success. "In today's world in small business, either the rent kills you or the labor cost is going to kill you," Commissioner Lee said. "If you look at what's happening downstairs at the Ferry Building, why they're completely full, it's because the spaces have been smaller." He also pushed staff to hold off on exterior improvements and instead let future tenants help shape those investments. "Wait until you get some people interested in the space and offer that money that you want to put on the exterior to maybe offer that as a TI improvement," he said.

Lee also requested that staff provide quarterly updates on vacancies and leasing progress so the public can track what's available. And he floated a distinctive aesthetic vision: restoring the Wharf's historic neon signs. "Alioto's had a red neon sign. And we could bring back the neon signs in Fisherman's Wharf and make it more of a tourist attraction," he said.

The other side: Vice President Stephen Engblom saw revenue potential in the new plaza's upper floors. "Every time I look at these renderings, I still can't help but think that there's some sort of revenue opportunity at the upper levels with some sort of signage or jumbotron," VP Engblom said. "We're creating a space that we're hoping to make an active attraction."

President Gail Gilman pushed back firmly. "This isn't Las Vegas and this isn't Disneyland," President Gilman said. "I think one reason you don't see as many locals going to the Wharf is there's a perception that that's what it is." She argued the Port should prioritize offerings that serve residents, not just tourists: "While tourism might be one of our largest revenue generators for the port and possibly for the city and county of San Francisco, I actually do think it's really important to keep these communities vibrant for the residents that live here."

What's next: Staff expects to return in April with a lease approval action item for the Grotto Cafe space. The signage and upper-floor revenue question will return as a separate policy discussion at a future meeting.

Dry Dock Repairs, Fuel Dock Comeback Headline Director's Report

Acting Executive Director Michael Martin delivered a wide-ranging report that drew extensive commissioner engagement, touching on infrastructure emergencies, environmental cleanup, entertainment activations, and state and federal advocacy.

Dry Dock 2: Ahead of Schedule

The emergency stabilization of Dry Dock 2, under contract with Power Engineering Construction since a Jan. 26 notice to proceed, is running ahead of schedule. Temporary patches on the worst leaks have produced dramatic results.

"Yesterday at our check-in, I was able to see the graph of how often the pumps are running. And like that day, those pumps went down precipitously. So we're using less energy. We're not wearing out the pumps," Acting Director Michael Martin said.

The 24/7 rotating staff watch is no longer required, replaced by automated pumps and a dashboard monitoring system. Stabilization is expected to be complete in Q3 2026, with demolition procurement to follow. A supplemental appropriation to fund the work had passed the Board of Supervisors committee and was on the full board's agenda the same day.

Public commenter Al Jenison questioned why the Pier 68 area has not been designated a Superfund site and challenged whether the $750,000 offered for dry dock removal is adequate given the site's toxicity. Commissioner Ken McNeely asked whether the ahead-of-schedule progress would reduce overall costs; staff indicated the stabilization phase remains on plan.

Hyde Street Harbor Fuel Dock: Open for Business?

Environmental cleanup at Wharf J10 in Hyde Street Harbor is complete, with underground pipelines and contaminated soils from the former fuel dock removed and long-term groundwater monitoring under way. The Port is now negotiating with the prior tenant, Pilot Thomas, to re-establish fueling — potentially adding gasoline service alongside diesel.

Commissioner Lee pressed for urgency, noting the recent closure of the San Francisco Marina gas station has left the fishing fleet, recreational boaters, and emergency responders with fewer options. Acting Director Martin said the tenant's "successful completion of the cleanup and the way that they did it gives us more confidence that this is a good path to try first."

Entertainment and Leasing Momentum

The SF Giants announced Club Dark, a seasonal nightclub experience at Pier 48 in partnership with Golden Voice — co-creators of Coachella — running select weekends from Feb. 27 through May 16. The activation builds on the Portola Music Festival's success at the waterfront.

On the commercial leasing front, venture capital firm General Catalyst signed a 12-year lease for the third floor of Building 12 at Pier 70, with occupancy expected in 2027. Additional tenants in the pipeline include Elevation Skypark, the Plenary Company, and Bay Padel expanding with outdoor pickleball courts. VP Engblom noted the significance of San Francisco Bay being the global hub of venture capital and the opportunity for the Port to benefit from that proximity.

Fish Market Finds Its Footing

The pop-up fish market at Wharf J9 has served more than 450 customers since opening Jan. 17 and now offers crab cooking and cleaning services during crab season, with fishers working at the market to educate customers. The Wharf J9 construction project earned a City Project Partnering Award. Commissioner Lee urged better signage visible from Jefferson Street to capture tourist foot traffic. Acting Director Martin tied the effort back to the Port's strategic plan:

"I want to sort of relate this back to last meeting when we talked about our strategic plan and the new first chapter — exceptional customer service. This is what I mean."

Legislative Advocacy: D.C. and Sacramento

Port staff traveled to Washington, D.C., for the California Marine Affairs and Navigation Conference to advocate for the Waterfront Flood Study, targeting congressional action by late 2026. In Sacramento, staff and VP Engblom attended the California Association of Port Authorities' Ports Day, where Acting Director Martin moderated a panel with State Senator Scott Wiener on climate leadership. Shore power emerged as a key priority for Southern Waterfront development. President Gilman underscored the importance of state-level engagement: "It's really important that we be lockstep with everyone here in California because, as we know, things are not as innovative and bright these days at the federal level."

Pier 70 Gets Parking Relief for Bakery Workers, Park Visitors

The commission unanimously approved Resolution 26-10, amending the Harbor Traffic Code in two targeted ways at Pier 70. First, the overnight parking ban will now end at 4 a.m. instead of 5 a.m., a one-hour reduction requested after early-arriving employees of a bakery tenant had been receiving citations. Second, a commercial loading zone on 19th Street will be converted to general metered parking, increasing public access to Crane Cove Park after the departure of the industrial shipyard tenant.

Why it matters: The changes reflect Pier 70's ongoing transition from industrial use to a mixed-use neighborhood. The metered-parking conversion directly responds to the loss of shipyard activity by repurposing curb space for the growing number of residents and visitors drawn to Crane Cove Park.

Decisions: Approved 5-0 by voice vote. (For: President Gilman, VP Engblom, Commissioners Lee, McNeely, Adams; Against: none; Absent: none.)

New Business: Retreat, Bonding, Hotels and a Shelter Indictment

The meeting closed with a lively new business session. VP Engblom proposed that staff develop a position on bundling pier improvements and deferred maintenance into a bonding approach, potentially marketing packages to a concessionaire. He also asked staff to study hotel viability on the waterfront as an update to Prop H.

Commissioner Willie Adams requested the Port's first-ever commissioners' retreat with port leadership. "Sometimes you got to do things you've never done to get somewhere you've never been," Commissioner Adams said. He also asked about the Pier 94 homeless shelter indictment that has been in the news. Acting Director Martin confirmed the trailer site has been decommissioned, and the matter is unrelated to current port operations.

Commissioner Adams also moved to adjourn the meeting in honor of Reverend Jesse Jackson, who passed away during Black History Month. Acting Director Martin had opened his report by noting Jackson's connection to San Francisco through the 1984 Democratic National Convention, where he delivered his landmark Rainbow Coalition speech.

Minor Items

• Consent calendar adopted unanimously (Resolutions 26-07, 26-08, 26-09): approved travel for the commission president to the AAPA 2026 Legislative Summit, aligned Port Commission and department head contracting authority, and adopted the FY 2026-28 biennial operating and capital budget.

• Blue economy workshop scheduled for March 6, co-sponsored with the Port of San Diego and the nonprofit Center for Sea Level Rise, focused on workforce development.

• Food Wise Pop Ups on the Plaza to continue at the Ferry Terminal Plaza with four events in 2026 celebrating diverse communities, including Juneteenth and BIPOC Women Makers.