Oyster Point Marina deal talks prove to be fruitful

The two sides are working toward drafting a deal updating the existing joint powers authority agreement initially crafted nearly 40 years ago but needing revision due partially to a transformative development slated on the South City waterfront.

Officials from both agencies agreed the work which started last year has gone well so far, as evidenced by the consent offered by the subcommittee during its meeting Tuesday, April 17.

“I think that the members were sincerely interested in finding a better working solution so the city and Harbor District can continue their relationship into the future,” said Mike Futrell, South San Francisco city manager. “And through this process, discussing and resolving any issues which remain between the two organizations. It was a positive meeting.”

Harbor District General Manager Steve McGrath shared a similar impression coming from the meeting.

“I think the committee concurred that we were headed in the right direction, and that we look forward to the next meeting where will have something far more fleshed out for the committee to consider,” he said.

At the most recent meeting, two councilmembers and commissioners respectively reviewed details of a term sheet which city and Harbor District staff suggest should be addressed in a future agreement.

McGrath said while the subcommittee was largely receptive to the proposed term sheet, he suggested the hard work likely lies ahead as officials need to begin crafting an agreement around those ideas.

“I think it is quite possible that the easy part is laying out a couple pages of bullet points. The hard part is getting into the details if things go wrong,” he said.

Establishing sound contingency plans is top of mind to both McGrath and Futrell, as the two work to hammer out details slated to span at least 15 years, with opportunities to extend in 10-year periods afterward.

“We are clear on who should do what,” said Futrell. “The struggle is trying to forecast into the future, whether that be preparing for sea level rise, a recession or other unforeseen circumstances.”

The Harbor District operates the waterfront site offering a 455-boat slip marina, yacht club, boutique hotel, 33-acre park and terminal for a commuter ferry, while the city owns the site and oversees the surrounding area.

The existing joint powers authority deal is slated to expire in 2026. Both sides agree the accord signed in 1977 is too vague and needs to be updated to address existing and future uses.

Terms of the agreement stand to take on an additional degree of importance moving forward as groundwork is laid for a sweeping development proposed nearby. Oyster Point Development is completing infrastructure work for a project entitled to include more than 2 million square feet of commercial space. The builder had been interested in constructing housing at the site, but pushback from the local biotech industry led to a shift in direction.

Under the consent granted to continue the direction of the discussions, Futrell said he expects the two sides to turn toward formalizing the agreement. No timeline has been established yet for the next update offered to the subcommittee, though he said it could be several months.

Ultimately, a final deal will be offered to the subcommittee charged with issuing a recommendation to the City Council and Harbor Commission, which will both need to approve it.

For his part, McGrath said he believed the discussion Tuesday was useful in continuing further discussions.

“What we did Tuesday was reduce down to two pages what will be a significant document that will govern major expenditures and operational agreements for potentially decades,” he said.

Futrell agreed, while noting there is a significant amount of work ahead.

“With the positive feedback we received, staff will continue their work,” he said.

austin@smdailyjournal.com

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