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Port is emerging from multi- year, multi-party litigation, involving a tenant bankruptcy and efforts by the Port to collect on the prior tenant’s insurance.

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Presentation on theme: "Port is emerging from multi- year, multi-party litigation, involving a tenant bankruptcy and efforts by the Port to collect on the prior tenant’s insurance."— Presentation transcript:

1 Port is emerging from multi- year, multi-party litigation, involving a tenant bankruptcy and efforts by the Port to collect on the prior tenant’s insurance Port obtained “title” to pile in Spring of 2007 Judgment against tenant’s insurer just entered within last several weeks Port to begin contracting effort to clear pile starting this summer/fall Concrete and Asphalt Crushing

2 Concrete crushing provides synergies with existing Port tenants. Current batch plants must haul some material to Brisbane, due to close in near future. Critical to reaching City’s zero waste goal. Emergency management component: after an earthquake where does debris go? Moved out of City by rail? Barge? May need to process (i.e., crush) before shipping. Concrete and asphalt crushing yields raw materials that can go back into concrete (aggregate for non-structural applications) or asphalt (newer asphalt plants can handle up to 30% recycled content). Without adequate market for products containing asphalt grindings (i.e., new asphalt plant), crushing enterprise may need to limit how much asphalt can be processed. Concrete and Asphalt Crushing

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4 Two recent expressions of interest in rock crushing to Port Real Estate Division from private market 4-5 other companies expressed interest last year Likely would require 6 acres, interim leasing opportunity Lease-based environmental financial assurances to avoid repeating the past Concrete and Asphalt Crushing

5 San Francisco’s Asphalt Plant Pier Backlands Opportunities June 9, 2007

6 San Francisco’s Existing Municipal Asphalt Plant

7 Overview Current Asphalt Plant Site 1 = City Municipal Plant (Jerrold Avenue/Quint Street) 2 = Private Property 3 = DTIS 4 = SFWD CDD 5 = Southeast Wastewater Treatment Plant 6 = Central Shops 7 = Peninsula Joint Power Authority 8 = SE Community Center Greenhouse

8 Overview Asphalt Plant History City has operated a plant since Current plant built in 1954, renovated Silos constructed in 2004, improved efficiency of plant, and increased capacity ($2.1 Million) Permitted capacity of 100,000 tons/year (Air District)

9 Overview Asphalt Plant Production Projected funding and tonnage based upon FY Capital Plan

10 Plant Economics There isn’t enough demand for asphalt in San Francisco to support more than one Asphalt Plant. If a modern plant were built at Pier Backlands, the City would close its plant at 1801 Jerrold.

11 CCSF Asphalt Plant Cal Rock++ Graniterock Dutra Materials Berkeley Asphalt Bay Area Asphalt Plants

12 Advantages of having a plant in San Francisco Because there is only one plant nearby (in South San Francisco), the City would be subject to monopolistic pricing of asphalt without a plant in the City. No recycling. More than 24,000 tons of asphalt grindings would be disposed of annually, many of them in landfills. An additional 18,000 miles of trucking would be required; apx. 3,500 additional gallons of diesel fuel annually for DPW alone.

13 Advantages of having a plant in San Francisco Without a plant, there is no guarantee of asphalt in an emergency. Large amounts of asphalt were supplied by the Plant immediately after the 1989 Earthquake for emergency repairs in SOMA and the Marina. Unreliable supply of asphalt. If the South City plant were to be closed, or supplying other jobs, DPW crews would be idled.

14 Advantages of having a plant at Pier Backlands Raw materials delivered by barge & rail Gravel arrives from British Columbia by barge and is trucked through the neighborhood to the existing plant. Other materials and petroleum additives could be delivered by rail, instead of by truck. New plant would be cleaner & more efficient w/easy access to recycled materials from adjacent rock crushing.


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