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Item 9A Informational Presentation on SWL 351 Development Criteria

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Item 9A Informational Presentation on SWL 351 Development Criteria MEMORANDUM May 22, 2008 TO: MEMBERS, PORT COMMISSION Hon. Kimberly Brandon, President Hon. Rodney Fong Vice President Hon. Ann Lazarus Hon. Michael Hardeman Hon. Stephanie Shakofsky FROM: Monique A. Moyer Executive Director SUBJECT: Informational Presentation on Development Criteria for SWL 351 (The Embarcadero at Washington Street) DIRECTOR’S RECOMMENDATION: Discussion Item, No Action Requested EXECUTIVE SUMMARY Seawall Lot 351 (“SWL 351”) is one of the development opportunities in San Francisco created by removal of the Embarcadero Freeway after the 1989 earthquake. The parcel is a nearly triangular site with a 358-foot frontage along The Embarcadero Roadway with a mere 26-foot frontage on Washington Street. (See Exhibit A, Site Map.) In the context of San Francisco, this 27,937 square foot lot has potential for effective development. At its December 11, 2007 meeting, the Port Commission received an informational presentation by San Francisco Waterfront Partners II, LLC (“SFWP”) of its proposed 8 Washington project, a mixed-use condominium development.1 The proposed project site, as currently conceived, includes a privately owned 2.5 acre property within the Golden Gateway area and the adjacent Port-owned SWL 351 located at Washington Street and The Embarcadero. This unsolicited development proposal has raised questions about the Port’s long-term land use and development plans for SWL 351. The Port’s Waterfront Land Use Plan (“Waterfront Plan”) identifies development parameters and acceptable land uses for SWL 351 and also notes the 1 The Port has not responded to SFWP’s proposal; rather the Port is engaging in a public process before considering any land transaction involving SWL 351. The Port has given permission to SFWP to initiate review of the project under the California Environmental Quality Act (CEQA) conditioned on the CEQA analyses considering alternatives where SWL 351 is not included in the project. This Item Covers Calendar Item No. 9A potential for it to be combined with the Golden Gateway site as part of a larger development project. At the February 12, 2008 Port Commission meeting, Port staff provided an informational presentation of the Port’s options for SWL 351 which included (1) offering SWL 351 for development by competitive bid, (2) responding to SFWP's proposal by initiating a sole source negotiation, or (3) taking no action at this time. Staff concluded that the Port should take the opportunity to review and define its development options for SWL 351 now, before any City approvals for long-term development on the adjacent property occurs. Otherwise, the Port’s future development options for SWL 351 could be severely constrained. On February 12, 2008, Staff recommended offering SWL 351 for development by competitive bid after undertaking a community outreach process to determine development criteria for the site. The Port Commission encouraged Staff to undertake that outreach and return to the Port Commission to discuss draft criteria that could form the basis of a Request for Proposals (RFP) for development of SWL 351. Staff’s proposed criteria for SWL 351 development is contained in Exhibit B hereto. The Waterfront Land Use Plan identified SWL 351 as a mixed-use opportunity site and provided guidance to the development criteria. Additionally, the Port held a community meeting on April 14, 2008 to receive community input, has held discussions with other Ferry Building area stakeholders regarding the site, and has researched market trends. It is worth noting that public perception confuses consideration of options for change on this site – the current parking lot – with the proposal to change the adjacent privately owned site occupied by a private members- only tennis and swim club. At this time, Staff are proposing development criteria for SWL 351 for discussion by the Port Commission and asking for direction on next steps for this site. This staff report and the technical exhibits provided are intended to provide the context for considering this site which includes understanding the adjacent land uses and Waterfront Plan direction, explaining the proposed development criteria, summarizing community input received and offering policy options for next steps. This is an informational item for discussion, public input, and to receive Port Commission direction on next steps. No action is requested at this time. NEIGHBORING LAND USE CONTEXT Ferry Building Area Context The Ferry Building area is a center of transit, maritime activity, a recreation destination, a world class retail and dining destination, home of the Center for Urban Education about Sustainable Agriculture (CUESA) Farmer’s Market, and one of the most sought after office space locations in San Francisco. Surveys of San Francisco hotel guests consistently include the Ferry Building in the top five attractions visited in San Francisco. Understanding this context is important to evaluating the SWL 351 opportunity. The Ferry Building and Ferry terminal are the centerpieces of this subarea of the waterfront. Today, ferries serve Larkspur, Sausalito, Vallejo, and Alameda with plans for a continuing network of improvements and expansion. It is estimated that 11,000 ferry riders use the area -2- daily. AMTRAK also operates out of the Agriculture Building with 20 buses daily connecting to trains in Emeryville. The area is adjacent to the Embarcadero BART/MUNI station and is served by the F line of historic street cars and numerous bus lines; providing phenomenal transit access and access to a significant shopper base. Hornblower Cruises operates out of Pier 3 with dining and excursion cruises on the Bay and events on the San Francisco Belle. Annually, over 80,000 people come to Pier 3 to enjoy the waterfront. Pier 1½ provides docks for water taxi services, recreational boating and fishing, and transportation support structures. Additionally, Piers 7 and 14 provide public access to the water to stroll, sight see, and fish. Linking the area together is the Embarcadero Promenade, which has become a spectacular location for strolling, biking, and enjoying the waterfront. Substantial numbers of visitors enjoy the area daily and in greater numbers during special events. The Ferry Building includes approximately 65,000 square feet of retail/restaurant uses. The Ferry Building Marketplace, organized along the central nave, provides a distinctive space for the greater Bay Area's specialty food purveyors. The exterior and main public hall have been restored to their original grandeur for use by ferry passengers and the public at large. The Marketplace includes the Slanted Door, Taylor’s Refresher, Market Bar, and smaller cafés; these restaurants joined Sinbad’s, the former Gabbiano’s site, the Rincon Park restaurants, and the restaurants along Steuart Street and The Embarcadero. Piers 1½, 3, and 5 will provide an additional 17,000 square feet of cafés and restaurants (including outdoor seating). The Ferry Building management estimates that Monday through Friday, 10–15,000 patrons a day visit the Ferry Building. On Saturdays, 15-25,000 shoppers frequent the Marketplace and Farmer’s Market. The Ferry Plaza Farmers Market is a California certified farmers market operated by the Center for Urban Education about Sustainable Agriculture (CUESA). The market is open two days a week—Tuesdays and Saturdays. The large Saturday market is held both in front of the Ferry Building along the Embarcadero and on the rear plaza overlooking the Bay. On Tuesday, the market spills out of the arcades onto the Embarcadero sidewalk. The markets offer produce and flowers from small regional farmers and ranchers, many of whom are certified organic. A wealth of other products are offered including regional artisan specialties such as breads, cheeses and jams. Finally, the Ferry Building area includes over 400,000 square feet of office space. The Ferry Building itself has 175,000 square feet of second and third floor office space. Pier 1, completed in 2001, includes 150,000 square feet of office. Piers 1½, 3, and 5 contain 60,000 square feet of office space. The Agriculture Building has about 24,000 square feet of small offices with about 20 tenants. It can be estimated that 1,600 people work in the Ferry Building area offices daily, with more working in area retail and restaurants. Open Space In addition to the Port’s open space amenities (Harry Bridges Plaza, Ferry Plaza, Piers 7 and 14, the Embarcadero Promenade, and the PortWalk public access extending from the Ferry Building to Pier 7), there are a number of additional parks in the area as shown in Exhibit C. Sydney G. Walton Square, open to the public, is a private two-acre park at ground level and is maintained by the Golden Gateway Center. Maritime Plaza, a two-acre plaza surrounding the One Maritime -3- Plaza building, was dedicated for public use in 1968. The Justin Herman Plaza is an eight-acre public park along the Embarcadero located at the foot of Market Street from the Muni turnaround to Washington Street. It contains a broad brick-paved plaza, landscaping with trees and grassy areas and a pool with a large fountain. Sue Bierman Park is under the jurisdiction of the Recreation and Park Department (Assessor’s Blocks 202 and 203). The eastern block (202) includes lawns, walkways, a space frame structure, and trees along the perimeter. The western block (203) contains a pump station and maintenance yard, under the jurisdiction of the San Francisco Public Utilities Commission, and is densely planted with trees and includes a lawn area, seating, and walkways. The walkways provide access to a pedestrian bridge crossing Davis Street to the Maritime Plaza open space. The City’s Recreation and Park Department has an acquisition policy to prioritize new park acquisitions in underserved areas. With the wealth of existing open space in the area, this site is not in a high need area. Exhibit D shows the maps created by the Recreation and Park Department documenting high need areas for parks utilizing 2000 census data.
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