Committee amends and continues Adante Hotel lease for noncongregate shelter and Restore treatment expansion
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Summary
The committee accepted amendments to a proposed one-year lease for the Adante Hotel to continue noncongregate shelter operations and expand the Restore substance-use treatment program; the item was continued to April 23 after committee amendments and public comment.
The Budget and Finance Committee on April 16 considered a proposed lease allowing the Department of Homelessness and Supportive Housing to lease the Adante Hotel at 610 Geary Street as a noncongregate shelter and clinical stabilization site, and read amendments into the record before continuing the item to a subsequent committee meeting.
Emily Cohen of the Department of Homelessness and Supportive Housing (HSH) told the committee the city has operated noncongregate shelter at the Adante since 2020 as part of the COVID response and has negotiated a one-year lease with one one-year option to extend. Cohen said negotiated terms include a 3% annual escalator if the option is exercised and a maximum final payment of $100,000 if the city does not extend the lease. She said the lease was made retroactive to April 1, 2025 to reflect ongoing negotiations.
Dara Pappo of the Department of Public Health described Restore, a partnership between HSH and Public Health that provides 24/7 access to medication for opioid use disorder (buprenorphine or methadone), daily case-management engagement and structured programming intended to connect people to longer-term treatment. Pappo said Restore currently operates 35 beds at the Adante, will expand as rooms vacate and aims to scale to 73 beds at the Adante in phase two, with further plans discussed to bring similar programming to other locations in later phases.
Supervisor Danny Sauter, whose district includes the property, urged support for a one-year term with a one-year option, saying it provides time to scale Restore while planning alternatives and a pathway back to tourist-hotel licensing for neighborhood recovery. Several neighborhood speakers including Barbara Swan of the Lower Nob Hill Neighborhood Alliance supported the revised resolution; a nearby resident, Paula Hendricks, said she preferred a one-year term and asked for stronger enforcement of good-neighbor requirements in adjacent blocks.
In the departmental read of proposed amendments, staff read an annual base rent figure of $1,597,320 into the record and other language changes; during the roll-call process committee staff later clarified that the base rent figure should be $1.4 million (the Budget and Legislative Analyst earlier summarized the initial base rent as about $1,480,000). The amendments as read included making the lease retroactive to April 1, 2025, setting a one-year term with a single one-year option to extend, a 3% escalator if extended, and adding a maximum final payment of $100,000 that would decline to $90,000 if the lease extended through March 30, 2027.
After discussion the committee voted 3–0 to accept the amendments as read into the record by HSH and to continue the item to the committee's April 23 meeting for further consideration. Supervisors Joel Engadio, Cheyenne Chan and Vice Chair Matt Dorsey recorded Aye votes.
The committee record and staff presentation noted the lease includes operational elements intended to support neighborhood impacts: 5 Keys (operator) will implement a good-neighbor policy, perform hourly perimeter checks, do daily frontage cleanings and report encampments to 311/911. HSH said some rooms will be reserved for "journey home" transfers and for isolation/quarantine as needed; Restore will be expanded as existing shelter guests vacate rooms, rather than displacing people mid-stay.
