Vote on $200M Waterfront Project Postponed

SAN FRANCISCO-The Port of San Francisco Commission’s vote on an amendment to publicly traded Mills Corp.’s $200-million development plan for Piers 27-31 has been pushed back from next week to mid-June. The 60-day extension, requested by the developer and recommended by port staff, will allow for more evaluation of how the required changes affect the development agreement, port development director Byron Rhett tells GlobeSt.com.The land is held in trust by the state and managed by the port. The port approved a development agreement with the retail REIT two years ago. The state Lands Commission and the Bay Conservation and Development Commission, who have oversight over such development, subsequently placed development restrictions on the site that don’t mesh with the approved development agreement, creating the need for an amendment.The 1.1-million-sf proposal is one of the port’s largest waterfront projects. One of the decisions made by the oversight agencies was that some 75,000 sf of planned indoor recreation space included in the development agreement is not an allowable use. That decision changes the economics of the development, which in turn requires changes to the financial agreement between Mills and the Port, says Rhett. Currently, the financial agreement is for Mills to pay a guaranteed rent of $1.4 million per year with cost-of-living adjustments. The rent would rise as the development becomes more profitable. Mills won a bidding war with Chelsea Piers in April 2001 to build on the piers. The current plan calls for the demolition of a shed on Pier 27 and preservation of historic structures on Piers 29 and 31. The redevelopment would include: a YMCA with 110,000 sf of indoor recreation space; a skate park, BMX track, bocce, horseshoes and other outdoor recreation space; a 168,000 sf marine sports area for boating, kayaking and swimming; 200,000 sf of office space; 134,000 sf of retail space, and; 50,000 sf of food service. The current schedule is to complete the project by the fall of 2006.