Board approves eminent‑domain resolution for 1975 Galvez to advance SFPUC central‑shops relocation amid lease dispute

The Board of Supervisors adopted a resolution of necessity authorizing the city to acquire, potentially by eminent domain, the leasehold interest at 1975 Galvez Avenue to facilitate the San Francisco Public Utilities Commission’s (SFPUC) planned Central Shops relocation.

What the board approved: The resolution authorizes the city to begin the eminent‑domain process to acquire a leasehold interest the SFPUC says it needs to complete the Central Shops relocation work. The measure opens a formal process that could include appraisal, negotiation and, if necessary, condemnation procedures to acquire the leasehold interest of an operator identified in the staff presentation as Blue Line Rentals.

Board concerns and debate: Supervisors David Campos, Matt Haney (noted elsewhere) and others discussed procedural questions; Supervisors Aaron Peskin and Mark Farrell (Peskin spoke at length) expressed frustration with the project’s prior handling. Peskin said he had supported acquiring the property earlier but criticized the absence of an appraisal at the time of acquisition and said lease‑buyout costs had ballooned; he contrasted an earlier estimate of roughly $200,000 for the lessee’s leasehold with current buyout costs that now appear to approach $1,200,000 and said the city should have deducted that value from the purchase price. Supervisor London Breed joined Peskin in a no vote.

Real‑estate presentation: John Updike, director of the city’s Real Estate Division, told the board an appraisal of the leasehold interest done later validated the acquisition price and said the transaction moved quickly in 2015 and 2016 because the city needed to secure the fee interest from the landowner. Updike said Blue Line Rentals is a national company (about 140 locations) and the Galvez site operated as a company‑owned location with about 10 employees; he said the transaction outcome would help keep more than 80 SFPUC Central Shops employees in the neighborhood when they relocate.

Vote and outcome: The resolution was adopted on a roll call of 9 ayes and 2 noes, with Supervisors Peskin and Breed voting no. The board held a Committee of the Whole public hearing on the item earlier in the meeting as required by law.

What was not decided: Adoption of the resolution of necessity initiates the eminent‑domain process; it does not itself determine final acquisition price or the outcome of any condemnation hearing. Updike and the city attorney’s office noted that additional procedures are required under state eminent‑domain law before title transfers.

Voices: Opponents on the board criticized process, appraisal timing and the escalation of projected leasehold costs. Real‑estate staff said the subsequent appraisal supported the price and that the city moved quickly to secure the fee interest from the seller so as not to lose the property to a different buyer.