Salem Harbor Port Authority

SALEM HARBOR PORT AUTHORITY 98 WASHINGTON STREET, SALEM, MASSACHUSETTS 01970 (978) 619-5685 PLANNING (978) 741-5685 HARBORMASTER MEETING MINUTES: August 12, 2021 A public meeting of the Salem Harbor Port Authority was convened at 5:00 pm via Zoom web conference. Members present: Mayor Kimberley Driscoll, Bob McCarthy - Ward 1 Councilor (acting chair), Meaghan LeClerc Members absent: Michael Rutstein, Fred Atkins Others Present: Tom Daniel – Planning Director, Capt. Bill McHugh – Harbormaster, Seth Lattrell – Port Authority Deputy/Planner, Senator Joan Lovely, Bob Blair – Eastern Point Pilots, Mike Magee, Jeff Cohen, Mike Plecinoga, Pat Gozemba Acting Chairman McCarthy called the meeting to order at 5:04 pm. Port Authority Deputy Lattrell outlined the format for the meeting and indicated that members of the public may provide comments during the period of the meeting designated for public comment. Scott Silverstein, Footprint Power Salem Harbor Real Estate, provided an overview of the Request for Expressions of Interest (REI), sharing that their discussions with interested parties are ongoing. The REI process started with 8-10 interested parties for site tours, six parties provided responses, and discussions have advanced further with a select few parties. Additional information from the remaining parties is anticipated by Footprint in the coming weeks. Footprint noted that they are under confidentiality agreements with remaining parties, but that they include experienced port operators that expressed a desire to work collaboratively with the Port Authority, and that Footprint will bring the top party in to meet with the City as a next step. Mayor Driscoll asked for clarification on the timing of next steps. Mr. Silverstein responded likely later this month to identify a party to continue discussions with, but difficult to predict with summer schedules. Mayor Driscoll emphasized the need for the City to understand more about the interested parties and their plans. Mr. Lattrell provided a presentation to update members on the progress of offshore wind discussion for the City of Salem. The presentation included a summary of offshore lease areas,  Meeting Minutes August 12, 2021 Page 2 status of the state solicitations, an overview of the types of offshore wind ports, and a list of city goals for the near, mid, and long term as well as next steps. Mayor Driscoll added that the industry is ever evolving, and strong public and private partnerships will maximize opportunities for Salem. The Mayor and city staff are actively working with state officials to understand Salem’s role in the rapidly growing industry while protecting local interests/priorities and maximizing local benefit. Harbormaster McHugh expressed his enthusiasm and noted that research and development could also be a potential use. Mr. Lattrell provided an overview of the Harbor Plan and DPA Master Plan, including a schedule of upcoming Committee meetings and anticipated agendas. Mr. Lattrell confirmed that the Harbor Plan is still on track for submission around late Fall 2021. Mayor Driscoll suggested that at the appropriate time a joint Committee and Port Authority meeting may be beneficial. Mr. Lattrell provided an update on the Port Infrastructure Grant Application. An application was submitted on July 30th for $3.14M and includes improvements to the mooring system and access enhancements. Harbormaster McHugh provided an update on the North Berth construction, confirming that the coating in the barges is in good shape. Supply chain delays on the rubber connection between the barges has impacted schedule, and some damage was identified to a portion of the barge near the pile guide, which may result in a change order. Mr. Lattrell provided an update on his attempts to bring on a port authority strategy consultant. He received proposals from two firms and is trying to coordinate schedules for a strategy session. Mr. Lattrell noted that the appraisal has been initiated with Cushman Wakefield and he is working to confirm a completion date but is targeting mid-September. Executive sessions may be needed to protect financially sensitive information and potential future negotiations. Mr. Lattrell indicated that the website is in progress and is nearing completion. Mr. Lattrell will share a copy of the draft with Port Authority members. Harbormaster McHugh provided the Harbormasters report. The city started the year with five cruise ship reservations, but is now down to two. The Harbormaster continues to coordinate with those remaining vessel agents. Mr. McHugh shared that the large yacht traffic in the northeast corridor has been strong this year, and if it continues, will be a strong use for the north berth. Mr. McHugh clarified that the North Berth can be used as a revenue generator for large yachts, but recreational vessels continue to be prohibited due to the Chapter 91 and Designated Port Area restrictions, and should use alternatives such as the new congress street  Meeting Minutes August 12, 2021 Page 3 docks. The US Army Corps has initiated a hydrographic survey of the federal navigational channel to confirm suitable channel depth. Mayor Driscoll requested info on how recreational boaters can find info on transient docking accommodations in Salem. Mr. McHugh responded that the best approach is to contact his office or review information on the harbormaster website, and that programs like Dockwa can be problematic. Mr. McCarthy asked for an update on the Willows Pier. Mr. McHugh shared that the MEPA ENF has been filed and demo will be moving forward through permitting, and that additional work is upcoming to identify total cost and cost share for the future build based on supply chain disruptions over the past year. Mr. McCarthy suggested that he and Mr. McHugh continue to coordinate on the upcoming cruise schedule and whether the lot needs to be vacated to see if there is an opportunity to sweep the Blaney Street lot which is overdue. The meeting was opened for public comment. Jeff Cohen expressed his support for R&D wind- related uses as mentioned by Harbormaster McHugh and emphasized the importance that the City/Port Authority have a better sense of what the uses are being proposed by the parties engaged with Footprint. Mike Magee expressed his enthusiasm over the progress recently made but shared that the City should double down and that all Port Authority members should be more actively engaged in the ongoing discussions. Mr. Magee reviewed the purpose/authority of the Port Authority [legislation linked HERE]. Mr. Magee asked when the Port Authority will be staffed, when the Port Authority be formally involved with the REI process, and when will the Port Authority have access to the MassCEC ports infrastructure assessment for the North Shore. Mr. Lattrell responded that the MassCEC report is under state review, and with regard to Port Authority staff/involvement, he is staff to the Port Authority, and he and the Mayor, who is also a member of the Port Authority, have been leading discussions as the only salaried members/representatives of both the City and Port Authority. He also reminded the attendees that the Port Authority is intended to have a Managing Board which includes Footprint and City representatives, but the Port Authority and Footprint have agreed to hold off on that body until the future use is determined. Mike Placinoga asked for clarification as to why there is no provision for public access at the Commercial Marina. Mr. McHugh and Mr. Lattrell clarified that the marina is within the Designated Port Area, and accordingly was licensed for commercial use only. Also, recreational vessel activity in the vicinity of the commercial port facilities presents navigational challenges to the ferry and other commercial uses. Bob Blair, senior ship pilot for the Port of Salem, expressed his gratitude to the Mayor for her hard work, but shared that the Port Authority members should all be more involved in the discussions with Footprint and the State. Mr. Blair also repeated a prior question about the  Meeting Minutes August 12, 2021 Page 4 status of the CEC port infrastructure study. Mayor Driscoll share that it’s in internal state review and reminded attendees that the Port Authority is composed of volunteer members and was created to be a flexible and nimble vehicle for implementation of future uses. The Port Authority will play a lead role in the future use of this site, but we are still very early in the use planning for the site. Mr. Blair asked the mayor for more information on the timeline for the transition of ownership, and how the $100 million proposed by the Governor for port infrastructure might play in. Mayor Driscoll responded that the $100 million is a proposal, and the legislature still has not acted on it, and there are many variables and moving parts that impact the timing. The goal of the city is to position Salem for success in each phase of implementation, not just the immediate needs. Mr. Blair asked what efforts were being made to market the port. Mr. Lattrell responded that the strategy remains the same; primary goal is to ready the infrastructure. Mr. Blair asked what Footprint is doing relative to their Chapter 91 requirements to market and ready the Port. Mr. Lattrell noted that those are state issues, and Mr. Silverstein responded that they are in compliance with their permit obligations. Pat Gozemba asked how Footprint sees their role in the appraisal. Mr. Silverstein responded that they have spoken with the city and the appraiser and want to be supportive of that effort, but will need to be mindful of their confidentiality agreements. Ms. Gozemba also asked for information on the timing of Footprint’s REI process and the state’s current offshore wind solicitation due September 16. Mr. Silverstein confirmed that their goal is to move discussions along quickly. Ms. Gozemba added that a public private partnership on future use of the Footprint property should be a priority to protect local interests. Meeting minutes from the June 23 meeting were unanimously approved by all members present. Salem Harbor Port Authority adjourned @ 6:41 pm.