The San Francisco County government meeting held on July 4, 2025, focused on several key resolutions concerning lease agreements and concessions at the San Francisco International Airport (SFO). The meeting began with the approval of two resolutions related to lease agreements with Trinity Center LLC for properties located at 1145 Market Street.
The first resolution pertains to a 15-year lease for the law library, which includes a base rent of $599,000 per year, with annual increases of 3% and a market reset in the 11th year. The second resolution involves a 10-year lease for the health service system, with an initial annual rent of approximately $589,000 and similar annual increases. Both resolutions were previously discussed and continued due to amendments regarding the dollar amounts and terms. After no public comments were received, the committee moved to forward both items to the full board with a positive recommendation, which passed unanimously.
Next, the committee addressed a resolution for a new concession lease at Harvey Milk Terminal 1 with Love from USA Group Inc. This lease, which has a term of seven years with two one-year extension options, includes a minimum annual guarantee of $205,000 for the first year. The proposal was the only one received during a competitive bidding process and features merchandise from local Bay Area museums. After a brief discussion and no public comments, this item was also moved forward to the full board with a positive recommendation.
The final item discussed was an amendment to the Terminal 3 coffee and quick serve concession lease with Elevate Gourmet Brands Inc. This amendment removes the SF Mac and Cheese Kitchen facility from the lease and adjusts the minimum annual guarantee from $375,000 to $185,000. The airport will reimburse approximately $279,000 for tenant improvements related to the facility that never opened due to the pandemic. The budget analyst noted that while this change represents a revenue loss of $1.3 million over the remaining lease term, it is partially offset by increased rent from United Airlines for the space. The committee expressed understanding of the necessity for this amendment and moved it forward with a positive recommendation.
In summary, the meeting addressed significant lease agreements and amendments that aim to optimize the use of properties and concessions at SFO, reflecting ongoing efforts to adapt to changing circumstances and enhance revenue opportunities for the city.