Organized Labor

Plans for Piers 27 - 31 Revamped by Developer to Include Cruise Ship Terminal

by Paul Burton
Contributing Writer

Development of Piers 27 – 31 may finally become reality with a revised proposal by Shorenstein Properties to include a new cruise ship terminal as part of the project. The developer recently began revising their plans for the aging piers after the State Lands Commission ruled that the development included too much office space. California law requires that waterfront land be reserved for public use — including recreation, maritime, or historic and environmental restoration.

Shorenstein’s original proposal included a mix of office space and recreational use. The developer and its partner, Farallon Capital Management, hope to locate their corporate headquarters at the Piers and generate income for the development and restoration of the piers through leasing additional office space. The developer proposed over 400,000 square feet of office space, with about half to be occupied by Shorenstein and Farallon.

The number of workers needed for the development of the three piers will be substantial and the cost is estimated at $500 million.

Shorenstein’s Executive Vice President Tom Hart said that the developer will, “continue to work on a mix of uses that incorporate office space for Shorenstein and Farallon and a cruise ship terminal for the city.” Hart said the cruise ship terminal project would cost about $90 million. A proposal to site the cruise ship terminal at Piers 30 – 32 was dropped last year by developer Lend Lease when cost estimates for restoring the piers increased to $80 million from the $40 million original estimate for the project.

Hart said the new cruise ship terminal would expand the existing one that is only used as a “Port of Call,” — a berth for cruise ships docking in the city for a day, to one that would be a Port of Embarkation or a Home Port, where passengers can begin or end their cruise. Pier 27’s existing shed building would have to be modified to include an area for waiting rooms, customs, bathrooms, luggage, and gangways to become a home port.

A 1998 study by the Port of San Francisco projected growth in the cruise ship industry and the need to expand existing facilities to accommodate larger ships. Most cruise ship traffic now uses Pier 35, but the terminal isn’t large enough to handle the larger ships now common in the industry and is rotting and damaged by termites. Pier 27 is San Francisco’s longest available berth and can accommodate modern cruise ships.

The Port of San Francisco reported a “record month in cruise activity” in May 2006, when 23 cruise ships berthed and 60,000 passengers visited the City. Each cruise ship calls brings an estimated $750,000 to $1 million in revenue to the City, according to the Port. At that time, Pier 27 and Pier 30/32 were activated to handle the increased vessel traffic. Eight ships docked at Pier 27, which required extensive dredging and installation of a new fendering system, the Port reported at the time. Pier 27 then hosted a visit by the Cunard Line’s Queen Elizabeth II last February.

The number of passengers embarking, disembarking or transiting through San Francisco ranged from 40,000 to almost 80,000 annually in the 1990s. The cruise industry now brings about 80 ships carrying 250,000 passengers to the City each year.

Mike Hardeman, Business Manager for Sign and Display Local 510 and a member of the Port Commission, said that the proposed new terminal at Pier 27 could hold any sized ship. He said that Shorenstein had also proposed seismically retrofitting or repairing the substructure at the piers. The extensive work needed could cost as much as $150 million. He said a huge number of jobs would be created over the time of the construction.

Shorenstein’s Tom Hart said that, “We think we can do it.” He said the developer would finish their model for the revised plan and present it to Port staff by the end of August before rolling it out to the public. The Port Commission must approve the schematic designs, lease and the development agreement. The Board of Supervisors must also approve the Lease as well as determine that the project is fiscally feasible and responsible. Since the site is listed on the National Register of Historic Places as part of the San Francisco Embarcadero National Register Historic District, all improvements to the historic buildings at Piers 29, 29 1?2 and 31 must be consistent with the federal standards and guidelines for rehabilitating historic buildings. An Environmental Impact Report will be prepared and must be completed before other regulatory approvals can be granted. The State Lands Commission also must approve the project for consistency with the public trust. Approvals also are required from the Waterfront Design Advisory Committee, BCDC, Regional Water Quality Control Board and the Army Corps of Engineers.

Hart said he expects the project to be an all-union job, saying, “We always build union.” The company is currently developing the Mission Bay project. Hart said that pre-construction services for the Piers were being provided by San Franciso-based Nibbi Brothers Construction and Rudolph and Sletten, based in Redwood City. The Development Team for the project includes development manager Mezzatesta Sklar, architect SMWM, and historic preservation architect Page & Turnbull.

Hart said. The developer and the port are working out details of funding the project, which may include the port issuing bonds.