In opting for the Mills proposal, the commissioners rejected a report from staff that seemed to favor a competing development plan by Chelsea Piers. New York-based Chelsea had proposed a conversion of the warehouses into 532,000 sf of sports and recreation facilities. Mills winning proposal involved building a 141,900 sf YMCA, retail and office space and 450,000 sf of open space.

In giving Mills the go-ahead, commissioners required that the shopping mall developer reduce the space in the $200 million project devoted to shops, restaurants and offices. The proposed YMCA would be one of the largest in the nation and will require the organization to raise $30 million to get the project built.

The port will receive about $15 million from Mills over 10 years. The finalized proposal could be subject to a review by the Board of Supervisors who could still reject the project. The project is also still subject to environmental and other regulatory reviews.

The unrevised plan includes a public plaza, skate park, rock-climbing wall and other amenities. The better part of two existing warehouses would be converted to offices, shops and parking. The Pier 27 warehouse would be razed to create a public plaza. Mills officials have said the company will meet the commissioners demand to reduce the space afforded to retail, restaurants and office.

Port officials have said the project could be completed within three years if all goes well.

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