SAN FRANCISCO-Shorenstein Properties is reworking its plan for the aging piers at the foot of Telegraph Hill, potentially removing some of the planned office space in order to accommodate a relocation of the city’s main cruise ship terminal there from Pier 35. The hope is that the revised plan will meet with less objection from the State Lands Commission, which is charged with enforcing laws that prefer waterfront land benefit the general public and be used primarily for maritime-related projects.

The Port of San Francisco, which owns the land, has given Shorenstein and its partner, Farallon Capital Management LLC, until Aug. 31 to submit a revised plan for Piers 27-31. The original plan, for 440,000-sf of office and a public recreation center was pulled off the table shortly before an expected vote in January after concerns were expressed by State Lands Commission executive director Paul Thayer and environmental groups.

The revised plan is likely to result in at least some of the office space in the original plan because Pier 27, where the terminal would be located, was slated to hold one-third of the office space. “It’s too soon for us to know exactly what the plan will look like,” Todd Sklar, head of Shorenstein’s development group, tells “We are looking at a number of different options right now.”

Given its belief that the office component is needed to achieve a reasonable return from the project, project financially feasible, Shorenstein will try to retain as much of the office space in the original plan as possible. At least 200,000 sf is essentially preleased, as both Shorenstein and Farrallon have committed to moving their headquarters to the location.

Pier 27 has been used a berth for cruises in the past, but only for one-day stops, including the Queen Mary 2 in February. As a main terminal, it would be the home base from which cruises begin and end. It is a solid candidate for the use because it already is the city’s longest available berth, capable of accommodating the increased size of the newest cruise ships. Additionally, if the pier’s existing shed building is repurposed, it is believed costly seismic requirements would not be triggered.

Shorenstein and Farallon acquired the development rights for the site in March 2006 from Virginia-based shopping mall developer Mills Corp. The deal reportedly includes several million dollars in future payments to Mills as certain development milestones are achieved. Mills reportedly spent $30 million in feasibility studies and marketing before abandoning its plans for the site.

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