After sending out Soheila Bana’s newsletter, I was reminded that Sue Wilson also distributes a newsletter. The one forwarded to me today
included the following analysis of the Riggers Loft, which was helpful because it showed how poorly informed Ms. Wilson is on the subject, some of which may be excusable because City staff fed her erroneous information. Her evaluation with my comments follows:
The Port and Riggers Loft
Sue: Have you heard of
in media res? Google will translate it as “in half beef,” but that is incorrect. In Latin it means “in the middle of things.” English-teacher-types use
in media res to describe the narrative technique of beginning a story (or epic poem or TV show or
movie)
in the middle of events rather than at the chronologically earliest point. You start in the middle of the story, and you have to piece together what happened previously in order to make sense of the whole.
Sue: Being new on city council involves a lot of
in media res. As a new council member I have to develop opinions and make decisions about things that other council members have been discussing for years. It’s not easy! For example, last month, I received dozens of emails from patrons imploring me
to save Riggers Loft, a local wine bar and event space. The Riggers Loft saga has been going on for a long time. Arriving near the end, I had to put together the backstory in order to decide whether I would heed the call to save it. And my answer is – I don’t
think we can.
Sue: To summarize what I learned, the owners of Riggers Loft rented a large, semi-industrial space from the Port of Richmond. The Port is owned and operated
by the city. In that space Riggers ran a wine bar, hosted events, and sub-leased space to other businesses.
Though their rent was considerably lower than what other port tenants pay, (Tom Butt response: The port has no other comparable buildings occupied by other tenants, so comparing the Riggers Loft rent to any other Port tenant is erroneous. The Port
has two other buildings in the Port Potrero Marine Terminal that are vacant and paying no rent) Riggers Loft had trouble keeping up with payments, especially during COVID. After COVID, they were unable to stick with the repayment plan they signed with
the city. As of today, Riggers Loft has not paid any rent to the city in a year, and their payments were partial and sporadic before that. After an attempt to create another repayment plan failed, the city began legal proceedings to evict Riggers Loft. Tom
Butt Response: (What the City did was insist on full repayment of the COVID-era rent reduction with interest, something that almost no other landlord was able to do. The City also wanted the repayment plan to include a reduction in the length of the lease,
thus reducing the amount of time Riggers Loft would have to amortize its investment) Those eviction proceedings are nearing completion now, and patrons of Riggers Loft have come forward to ask the city to stop the eviction process, forgive the debt, pay
for required improvements to the space, and charge lower rent to Riggers moving forward. Here’s how I have responded:
- In my opinion, saving Riggers Loft would not be a responsible use of city resources. (Tom Butt Response: The City does not have a prospective tenant for the space, so what is the proposed better use of City Resources?)
-
Running a hospitality business in a gigantic building at an aging port is an incredibly expensive proposition. Frankly, I think it’s a money pit. Keeping it going requires ongoing capital investment,
which Riggers Loft does not have. The city should not try to fill that gap because we have
more pressing needs. (Tom
Butt Response: What is the “ongoing capital investment” that Riggers Loft does not have? What are the “more pressing needs?) -
I think the City showed a lot of patience in giving Riggers as much time as it did to figure out a plan. But as a result, we have lost $400,000 in unpaid rent, which is disappointing. (Tom Butt Response: The Riggers
Loft was rehabilitated largely with a grant from the State of California, which costs the City nothing and also paid for the Port’s Emergency Operations Center and Port Office. The approximately $1 million the City invested has been paid back in rent. The
Riggers Loft only stopped paying rent when the City sued them, otherwise they would have continued.) -
Moving forward, we can and should be good stewards of city properties by not letting our affection for particular people or businesses outweigh the need to manage our assets in a way that maximizes revenue for our
community. (Tom Butt Response: There is no evidence that a different tenant would pay a higher rent.)
I know many people will be disappointed by my response, but any second thoughts I had about this were knocked out of my head by
a presentation from the Port Director last week.
(Tom Butt Response; There is no mention of the Riggers Loft in the referenced Port Presentation. What’s the point?
One reason the port has so much deferred maintenance is that the City has siphoned off Port Revenue for decades to balance the General Fund budget.)
We are coming to the end of a much-needed audit of port facilities, and it looks like some of the berths are in need of serious repair. When the report is finalized, the City Council will face difficult decisions about what we will
fix at the port and how we will pay for it. I think we have to prioritize port businesses that generate enough revenue to help maintain the port over ones that require city subsidies to survive.
From: Barbara M <barbaralm2@comcast.net>
Sent: Wednesday, June 11, 2025 8:43 AM
To: Tom Butt <tom.butt@intres.com>
Subject: Fw: D5 Newsletter – The Whole Thing Is Spicy! 🌶️🌶️🌶️🌶️
Here you go
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