Committee advances Port of San Francisco lease changes: Fog City site re-lease and Pier 80 amendment with Pasha

The Budget and Finance Committee on July 15 advanced multiple Port of San Francisco items to the full Board with positive recommendation.

Port staff described a proposed ground-lease restructuring for the former Fog City Diner site at 1300 Battery Street to enable a new subtenant (Moonchild) to operate the restaurant. Scott Lantzadel (Port deputy director of real estate) said prior ground-lease terms were above market and created obstacles to re‑occupancy; the restructured terms lower base rent to $5,000 monthly with stepped increases, a percentage rent arrangement and port rent credits to support capital improvements.

On Pier 80, the Port requested approval of a first amendment to its terminal management agreement with Pasha Automotive Services to discontinue a $50,000 monthly fixed fee (saving the Port roughly $600,000 annually), add a revised tariff and event revenue‑sharing model (including a 50/50 split on event revenue and tiered tariff splits up to $4.5 million), and clarify shared‑use for cruise activity. Port staff said reduced automobile volumes since FY20‑21 (noting Tesla’s export changes) prompted the adjustment. Pasha submitted written support read into the record.

Both items were moved to the Board with recommendation (roll calls recorded: Dorsey, Sauter, Chan — ayes).