For years, the Port of San Francisco stayed away from any thought of raising rents for the fishermen at the city’s number one tourist attraction, Fisherman’s Wharf. In fact, it has been 20 years, since the fishermen last received an increase in their berth rents, which are currently the lowest on the entire coast.
By Wes Starratt, Senior Editor
Published: August, 2005
For years, the Port of San Francisco stayed away from any thought of raising rents for the fishermen at the city’s number one tourist attraction, Fisherman’s Wharf. In fact, it has been 20 years, since the fishermen last received an increase in their berth rents, which are currently the lowest on the entire coast. Evidently, nobody at the Port wanted to be responsible driving the fishermen away, creating a Fisherman’s Wharf without fishermen, especially in a city that depends so heavily on tourist dollars. So, the fishermen were able to keep their low berth rates, which amounted to about $44 per month for the average fishing boat, in a city with the country’s highest-priced real estate. Today, there are about 85 active fishing boats at the wharf bringing in their catch to the delight of the tourists.
Port Support
The Port has also shown its support of the fishing industry by investing some $20 million in federal funds to rehabilitate the 1989 earthquake-damaged Pier 45 and transform it into a modern fish receiving and processing facility with almost 40 fish processors. At the same time, the Port constructed the Hyde Street Commercial Fishing Harbor, although it remains largely unused by local fishermen, because of its high rents and the surging tides. The local fishermen have remained at Fisherman’s Wharf.
Meanwhile, the Port’s financial picture has not been bright. With the loss of its container business to Oakland, marketing efforts turned toward cruise ships, plus ferries and tour boats and bulk cargos are being handled at the Port’s southern waterfront. Yet, more than 70 percent of the Port’s current income is derived from real estate: ranging from the ballpark, ferry terminals, restaurants and other retail establishments to office facilities and garages. For years, there have been reports that the Port has not maximized its real estate income in the face of financial obligations, which include the rehabilitation of its 30 piers along the Embarcadero that were built in the 1900s (some reportedly on the verge of collapsing into the bay).
Probably, in order to correct the Port’s financial woes, San Francisco Mayor Gavin Newsom last year, appointed a new Port director, Monique Moyer, who brings a high level of expertise in financial management. In our discussion with her regarding the Port’s financial situation, she pointed out, "We have raised rental rates across the board, from cruise ships to fishing boats."
Last June, Moyer proposed to the Port Commission that berthing fees for the fishing boats at Fisherman’s Wharf be raised in yearly increments over four years by 500 percent — from $1 to $5 per foot of berth per month, or from $40 to $200 for an average 40-foot boat. That is still less than the $6.50 per foot at Half Moon Bay and the $8.75 charged in Santa Cruz. Also last June, Moyer announced to the Port Commission that revenues at the Wharf during the last fiscal year amounted to $231,000, while direct expenses were $312,000, or $595,000 when administrative overhead costs are included. Moyer said, "There is a limit on how much we can afford to subsidize these activities … We have laid off staff for three straight years; so, we can not afford to subsidize other people’s businesses."
At the June meeting, the Port Commission had an extensive discussion of the rate increase, with participation by the fishermen. Finally, Commissioner Hsu asked the Port staff to "take a closer look at this increase so that we could keep the fisherman at Fisherman’s Wharf."
Another commissioner stressed that "Fisherman’s Wharf is not going to be the same without the fishermen."
In the end, the commission took no action on the rent increase proposal, and delayed a decision until September 27, at the close of the salmon season when the fishermen will be able to participate.
The Fishermen Respond
Wharf fisherman were immediately on the defense when they heard about the proposed 500 percent increase in rents proposal.
Larry Collins, vice president of the Crab Boat Owners, let us have it: "San Francisco is cheap, and that is why we are here." He went on, "We got paid $1.50 per pound for our crab last year, and those are 1960 prices. For our salmon, we get $4.25 per pound - this year, and we got $4.50 pound in 1988. But, then I was paying 45 cents a gallon for diesel oil, and now it’s $2.70 a gallon. So, we are not in a position to pay more."
Bob Miller, the President of the Crab Boat Owners said, "If they are going to have this huge raise in rents, some of the fishermen are just going to go out of business. I met with the Port director last week, and told her that ‘We are in a position to take a very minor increase, and maybe some sort of cost-of-living adjustment in future years, but nothing anywhere near what they are proposing, which we consider outrageous!’"
"They have to understand that it takes us at least two hours to get to where the fishing takes place," Miller said, "But, if you go out from Half Moon Bay or Bodega Bay, you can be at the fishing areas in a half hour."
We asked, so, why bother with Fisherman’s Wharf? Miller said, "Because it’s cheap. That’s the drawing card. Those other ports have plenty of parking and nice floating docks for walking to your boat, but all we have at Fisherman’s Wharf is a space in the water, a couple of pilings, a pulley and a ladder. The facilities at Fisherman’s Wharf are not anyway near comparable to those at other ports," and, "the Port’s maintenance is terrible."
We also asked Miller, why not use the new facilities at the Hyde Street Commercial Fishing Harbor? He replied, "It is really a different type of facility. Most of us don’t want to be there because of huge surges of water that move the boats and bang them against the piers. Mostly, it is used by transient boats from other ports." And, it should also be noted that the rental fee at Hyde Street is four dollars per foot.
Poor facilities for the fishermen at the Wharf and greater time required to reach the fishing areas, its no wonder the fishermen claim that the low rents are what keep them at Fisherman’s Wharf. But certainly, there is an additional factor — the market for their catch.
Fish to Fry
The Port of San Francisco claims that the Wharf has "the largest number of fish buyers and processors in one place on the West Coast."
Zeke Grader, Executive Director of the Pacific Coast Federation of Fishermen’s Associations, seems to agree: "Thanks to former Mayor Art Agnos, who understood that they had to upgrade fish-processing facilities at Pier 45 and open a new marina. So, right after the 1989 Earthquake, they got some FEMA (Federal Emergency Management Agency) money for both projects."
"San Francisco has now become a key port for salmon. Grader said, "Most of the salmon harvested offshore is attracted by the bay and the Sacramento river. So, the bulk of our salmon production comes through here."
"Now, we are having the best Dungeness crab production in 30 years," he said, "So, we are seeing more fish available locally and better processing facilities... So, I am hopeful that we can work out this berth rental matter with the port."
Peter Dailey, Maritime Director for the Port of San Francisco said, "By late September, we will have some recommendations for the Port Commission to review. We’re looking at a number of different issues that will make sense to the Port and to the fishing industry … We are trying to work with them, and are confident that we can come up with something for the Port Commission." Although we could not get a comment from the Port’s staff, it seems that a modified rent proposal will be put before the Port Commission when it again takes up the question of rents for fishing boats at the Wharf in September.
The Port may be coming to an understanding that all of those renting berths at the Wharf are not alike, and that their ability to pay increased rents may differ greatly.
Perhaps the "one-size-fits-all" approach to rent increases may not be appropriate.
It would appear that there are at least three distinct types of berth renters at the wharf with widely differing abilities to pay rent increases.
1. Local working fishermen, with, probably, the least ability to pay an increase in rent.
2. Transient fishermen who come to the Wharf at the height of the salmon or crab season to take advantage of the peak market prices, and who could pay for that privilege.
3. Sport fishermen who directly serve the tourists by taking them out for "deep sea fishing" and/or tours
around the bay. They are probably at the top of the economic ladder.
There may be other categories with different abilities to pay increased rents for their berths at the Wharf. Perhaps a settlement can be reached by treating them differently, but it would be surprising if the Port let the fishermen leave Fisherman’s Wharf — they are too valuable an asset. At the same time, the fishermen know that their best market for fish is San Francisco, and they might think twice before leaving.
