Port Picks $39.2M Bay Area Teardown for Failing Pier 68 Dry Docks

The Port of San Francisco is ready to dismantle two deteriorating dry docks at Pier 68 that have triggered two emergency declarations since 2018. Staff recommended a $39.2M Bay Area teardown under a design-build contract, and the Port Commission signaled support at its Oct. 20, 2026, meeting. With only three of five commissioners present, the Commission also unanimously approved a no-fee trucking academy license at Pier 94, heard an all-hands El Niño flood plan, and learned that Piers 30-32 remains financially out of reach.

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• $39.2M Bay Area dismantling recommended for Dry Dock No. 2 and Dry Dock Eureka; contract returns in second half of 2027
• Six-month, no-fee Pier 94 license approved 3-0 for a District 10 heavy equipment and trucking academy
• 30+ extreme king tides forecast this winter; Port readies temporary flood walls and FEMA documentation
• Piers 30-32 still infeasible despite millions in potential savings; developer says it needs an anchor tenant
• 15-acre Pier 68/70 shipyard site heads toward a developer solicitation with blue economy leasebacks

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A Shipyard Liability Nears Its End

The basics: Dry Dock No. 2 and Dry Dock Eureka are floating structures at the Pier 68 Shipyard that once lifted ships out of the water for repair. They have been idle and declining since operator BAE left in 2017.

Why it matters: Removing the docks ends a long-running safety and liability risk and reopens berths of roughly 600 feet for future maritime and blue economy uses.

Where things stand: Deputy Director of Port Engineering Wendy Proctor traced the decline through failed reactivation and sale efforts, a May 2024 condition assessment, and a November 2025 listing event. A December emergency declaration followed.

"We've had to declare 2 emergencies and do some other urgent projects to address some of the safety issues since that period in 2018," said Proctor.

A January 2026 emergency contract with Power Engineering Construction paid for dewatering pumps, steel and MECO patches, crane removal, monitoring and added mooring chains. That work is substantially complete. The contract has been extended to spring 2027 as an El Niño contingency.

The options: Staff studied three disposal paths. Scuttling carried EPA ocean-dumping risk. Out-of-area dismantling or sale also fell short. The recommended plan dismantles the docks in two stages: Stage 1 near the site and Stage 2 at the Mare Island graving docks. Staff favors design-build delivery over design-bid-build or progressive design-build.

The money: The Port has $61.2M appropriated. About $10M went to stabilization, and the $39.2M plan would leave roughly $12M for soft costs. When Port Commission Vice President Ken McNeely asked about BAE settlement funds, staff said only $1.5M remains.

The other side: McNeely also asked about salvage. "I would say we're pretty skeptical that any materials on this very aged piece of equipment can be reused," said Executive Director Michael Martin. Proctor added that the contracting process does not lend itself to resale.

Commissioner Vanessa Hartigan asked whether the repairs would hold through El Niño. "The team has general confidence that the stabilization repairs are going to hold us through the winter, but sometimes unexpected things can happen," said Proctor.

Decisions and stakeholder impacts: No vote was taken because the item was informational. Commissioners voiced support and asked for more environmental information when the contract returns. "I will be really glad when this is over, really," said Commissioner Willie Adams. Public commenter Rudy Ortega asked for a documented accounting of contamination at the former BAE shipyard, protective measures during dismantling and responsibility under the BAE settlement.

What's next: The contract returns in the second half of 2027. Proctor estimated design-build would take about 18 months after that.

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Bayview Trucking Pathway Gets Pier 94 Runway

Why it matters: Supporters said District 10 lost its local trucking pipeline when the Bayview truck driving academy closed. The license gives residents hands-on commercial driving and heavy equipment training on Port land at no fee.

Where things stand: Assistant Deputy Director for Real Estate Kimberly Beal presented License No. 17511 with San Francisco Heavy Equipment & Trucking Academy (SFHEAT) for about 94,000 square feet of paved land.

The terms are tight. Use is limited to 2 hours a day, up to 3 days a week, between 8 a.m. and noon. Schedules are due 10 days in advance, the tenant handles maintenance, and out-of-schedule use costs $2,350 per day. The license can be terminated with 30 days' notice, and staff will collect usage and outcome data.

"The proposed license is month-to-month for a maximum of 6 months and is limited specifically to hands-on training activities," said Beal, adding that approval would not commit the Port to a longer-term arrangement.

The coalition: Supporters made up a coordinated District 10 bloc. Dr. Saida Leeds Tufu Birch, a Bayview resident and workforce strategist, read a Mission Hiring Hall support letter. Port Government Affairs Manager Boris Delapine read a statement from Supervisor Walton's office. SFHEAT co-owner Tani Harris, a 40-year operating engineer, said the program would open construction careers to more Black and brown residents. Co-founder Tricia Gregory, owner of Heavyweight Trucking, said few local LBE truckers remain and the program aims to create CDL holders, owner-operators and OE-3 union careers.

The other side: Ortega backed training access but asked for licensed boundaries, pavement and subsidence inspection, an environmental determination, and dust, runoff and exhaust controls given nearby wetlands. McNeely said staff can observe structural conditions during the license term.

Decisions and stakeholder impacts: Adams moved Resolution 2653. "This goes along with our mission statement. We should vote this up," said Adams. "Supporting District 10 residents and being able to provide job opportunities through training is, I think, absolutely essential," said Hartigan.

The resolution passed by voice vote (For: 3, McNeely, Adams, Hartigan; Against: 0; Absent: 2, President Stephen Engblom and Commissioner Steven Lee). Bayview job seekers and small truckers gain a training site. The Port keeps scheduling and termination control.

What's next: Staff will use the six-month pilot data to judge whether a longer arrangement makes sense.

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Port Braces for an Extreme Tide Season

Why it matters: Tides are already 9 to 12 inches above normal. That leaves low-lying Port assets, tenants and transit connections exposed to flooding this winter.

Where things stand: "We are activating an all-hands El Niño planning effort at the port focused on public safety, flood protection, and continuity of operations," said Martin. He said the Port predicts more than 30 extreme king tide events, compared with fewer than 10 in a normal winter.

High-risk spots include Rincón Park, the Pier 45 Valley, and low points at Piers 80 and 96, which may get temporary flood walls. Crews are reviewing utilities, substructures and sewers and staging pumping staff and equipment. The Port is working with the City Attorney, City Administrator and Mayor's Office on faster procurement. It is also documenting conditions for FEMA reimbursement and coordinating with the Department of Emergency Management, BART, Muni and WETA.

The other side: McNeely pressed on federal help. "Is there strength in numbers in consolidating our efforts to seek federal support?" he asked. Martin called lobbying through the California Association of Port Authorities a good suggestion the Port would take back. He said the Department of Emergency Management would handle public alerts. Hartigan and Adams praised the proactive approach.

What's next: Tenant outreach begins this week. The Board of Supervisors holds a hearing Oct. 29, and the Commission gets a fuller briefing Nov. 10.

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Piers 30-32: Savings Found, Gap Remains

Why it matters: A $125M infrastructure gap, rising costs and uncertain seawall timing keep the long-stalled waterfront project from moving forward.

Where things stand: Port Development Project Manager Christine Maher recalled the Commission's termination of the joint exclusive negotiating agreement and the 18-month pause that followed. Jesse Blout, founding partner of Strata Investment Group, then laid out six strategies to close the gap:

• A three-story design that saves $4.2M by shrinking the pier, or adds about 100,000 square feet
• Up to $36M in base building savings and $1M on decking
• Pool value engineering of $10M, followed by another $8M
• Potential federal seawall matching of $48M to $50M
• About $20M in impact-fee reductions
• About $1M and nine months saved through environmental review streamlining

Blout said the developer rejects delaying the community pool and would seek philanthropic bridge funding instead. He described the office market as improving at the trophy tier, but said costs have climbed. "We've seen roughly 10% increase in costs just since we first pressed pause," said Blout, citing tariffs among the drivers.

"As of today, the project remains infeasible and will likely require a large anchor tenant or tenants to move forward if feasibility can be achieved," said Maher. Blout said at least half of the $1 billion-plus building needs a tenant before it can be financed.

The other side: Public commenter David Lewis opposed a waterfront office building. He cited ballpark traffic, parking, 27% to 29% office vacancy and lost views, and said he would keep the parking lot and build a pool. Ortega asked whether the analysis covers environmental cleanup, structural safety and maintenance costs.

What's next: No near-term construction is expected. The Commission anticipates an update in about 18 months.

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Pier 68/70 Shipyard Site Heads to Market

Why it matters: The roughly 15-acre site barely covers its own costs. "We make about $1.3 million in revenues from tenants, but we spend about $1 million in security, sort of maintenance, and utilities," said Strategic Portfolio Manager Rebecca Benesini.

Where things stand: Any developer would face shoreline protection, seismic ground improvement, 11 historic buildings and outdated utilities. Required outcomes include Waterfront Plan goals, Secretary of the Interior standards, BCDC and Seaport Plan compliance, an SFPUC pump station and Port control of berthing.

Desirable outcomes include leaseback space for Port operations and blue economy tenants, local hiring and Southern Waterfront community benefits. Staff envisions a single master developer delivering about 500,000 square feet. Adams asked about cruise ships; staff said water depth rules that out. No one spoke during public comment.

What's next: Staff will consult advisory groups and return with an action item.

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Minor Items

• Consent calendar: Resolutions 2648-2652 passed 3-0, including up to $400,000 more for Everett and Jones Barbecue repairs at 300 Jefferson Street.
• Also on consent: The calendar covered a Pilot Thomas Logistics lease at Seawall Lot 303, the transfer of Hunters Point and Candlestick parks to Recreation and Parks, SFPUC agreements, and the 2027 meeting calendar.
• Waterfront momentum: Fleet Week drew almost 462,000 visitors, up 25%, and the Ferry Building will be fully leased once Lucania opens in early November.
• Crane Cove Park: After complaints about off-leash dogs, the Port will add signage, patrols and police detail and study permanent fencing.
• Public comment: Lewis sought pedicab parking at Alioto Plaza, and Ortega raised housing and records demands; staff said camping in vehicles violates port codes.

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Looking Ahead

San Francisco on Ice opens Nov. 4 at Fisherman's Wharf, the El Niño briefing comes Nov. 10, and the Commission adjourned in memory of Martin's father.