Port seeks ARPA investments to revive waterfront as $30M in unpaid rent poses challenge

Port leaders told the Budget & Appropriations Committee that federal stimulus and ARPA funds are stabilizing the Port of San Francisco in the short term but that the waterfront faces ongoing structural deficits without sustained revenue recovery. The Port presentation emphasized restoration of tenant compliance and active leasing strategies to bring visitors back.

The Port reported $30,000,000 in unpaid rent tied to pandemic closures and non‑reopening tenants, creating a risk to near‑term revenue recovery. “Still, we have 30,000,000 in unpaid rent, which is 10 times anything we've seen in prior years,” port staff said during the presentation.

To address vacancies and rebalance the tenant mix, port leaders proposed a $9,000,000 tenant‑improvement line from ARPA, brokered placements to accelerate retenanting, and a range of leasing strategies including percentage‑rent arrangements and subdividing spaces to reduce entry risk for local businesses. The Port also flagged a capital program of roughly $110.4 million over two years and projected lasting deficits beginning in FY24–25 unless revenues rebound.

Why it matters: the Port’s waterfront is a major local employer and a destination for tourism and small businesses. Unpaid rent and closed businesses reduce foot traffic and revenue that support public services and capital maintenance.

What’s next: the committee continued the two‑year budget items to May 25; Port staff said they will continue outreach to tenants, accelerate lease compliance work and expand HR capacity to reduce a historically long average vacancy‑to‑fill timeline.