Port of San Francisco

Transcription

1 Port of San Francisco The Port of San Francisco is a public enterprise committed to promoting a balance of maritime, recreational, industrial, transportation, public access and commercial activities on a self-supporting basis through appropriate management and development of the waterfront for the benefit of the public.

2 Port of San Francisco Burton Act Authorized negotiation to transfer all title and rights in land held by the San Francisco Port Authority to the City and County of San Francisco to be held in trust for purposes of commerce, navigation, and fisheries Port Commission may lease land for uses that the Commission finds to be in the public interest, with resulting lease revenues to be in the furtherance of commerce and navigation

3 Port Jurisdiction Port Commission and staff manage improvements, facility leases, 10 maritime industries, environmental and historic resources and real estate assets extending along 7½ miles, with over 500 tenant leases CENTRAL WATERFRONT

4 Port Jurisdiction Pier 70 CENTRAL WATERFRONT

5 Pier 70

6 Pier 70 Districts

7 Pier acre site Midpoint: 1.5M sq.ft. comm. Midpoint: 1,600 res. units 30% BMR ~ 480 res. units 9 ac. Parks/OS $260M infra ~$87 infra cost psf

8 Key Public Benefits 1. BMR. 30% of all units will be affordable.

9 Key Public Benefits 2. TDM Plan. 20% reduction in project trips through 3. Transportation Sustainability Fees. ~ $45 million 4. SLR: On-site improvements+elevated buildings+open space = accommodate 66 SLR+100 year flood 5. SLR: New, long-term funding stream for shoreline protection > $ billion over the next 99 years. 6. Sustainability. 35% reduction building GHGs & 42M gal potable water saved (onsite blackwater plant). 7. Open space. 9 acres of parks

10 Open Space 9 acres of waterfront parks (excluding Crane Cove Park) A regional draw with new Bay Trail connections

11 Key Public Benefits 8. Economic Diversity. Local hire, LBE, First Source 9. Arts, Industrial Uses & Public Facilities. 10.Historic Resources. Rehab 3 key resources in Union Ironworks Historic District.

12 Pier 70 Conundrums How to fund $260+ million in infrastructure costs? and Deliver required public benefits? and Meet Developer s return requirements? and Provide financial returns to Port?

13 Funding Sources Diversity Infrastructure Financing District (IFD) Captures growth in property tax revenue ( tax increment ) Infrastructure and Revitalization Financing District (IRFD) Captures growth in tax increment (affordable housing use) Community Facilities District (CFD) Establishes special taxes that property owners and lessees pay Developer Capital Developer advanced fund that earn an 18% annual return Port Capital Port advanced Harbor Funds earn a 10% annual return Land Proceeds Revenues generated from the sale or lease of Port land Revenue Sharing between Port (55%) and Developer (45%) 13

14 Funding Sources Infrastructure Financing Encompasses 28-Acre Site and a portion of Illinois & 20 th Street Parcels Captures future tax increment, growth in Local and State shares of property taxes 92% for public infrastructure, e.g. streets, utilities, parks, historic rehabilitation and shoreline protection 8% for other Pier 70 needs, including Irish Hill Park 14

15 Funding Sources Community Facilities Levies special tax over Waterfront Site Pays special tax future property tax Finances Horizontal Infrastructure Facilities special tax goes away when properties are assessed and tax increment starts flowing CFD will also fund a portion of the Arts Building feasibility gap Benefits: Established over the IFD to create an early income stream Early public finance strategy to minimize use of Developer Capital CFD bonds are a higher credit than IFD bonds, lowering cost of issuance Risks: Vertical developer default risk 15

16 Funding Structure Investment & Return 16

17 Funding Structure Investment & Return STRATEGIES TO MAXIMIZE REVENUE-SHARING Limit Developer Capital Maximize Public Financing Tax Exempt Debt Port Capital 17

18 CFD Ongoing Maintenance Tax Maintenance CFD Levies special tax over Waterfront Site on an ongoing basis Benefits: Ongoing income stream protects the Port finances Provides high standards for services Allows for cost escalation Funds: Public Space maintenance & repair Roadway maintenance & repair Security services Administration Risks: Additional cost to vertical developers and tenants 18

19 CFD Shoreline Special Tax Project includes onsite improvements, elevated buildings and open space to accommodate 66 of sea level rise Shoreline special tax establishes a new, long-term funding stream for shoreline protection Shoreline special tax will fund Port-wide investments, including ongoing needs at the Project site 19

20 Summary of Projected Returns NPV Returns to Port and Developer $200.0 $150.0 $100.0 $50.0 $0.0 Capital Repaid Pref. Return Profit Share Total Dev ~18.3% IRR Total Port Profit Share + Rent Spec Taxes / IFD ($50.0) ($100.0) Capital + Options to vertical development ($150.0) Developer Port 20