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Board approves leases to relocate workers from seismically unsafe 850 Bryant; members press for purchase options
Summary
Facing sewage, rodent and seismic problems at 850 Bryant Street, the Board authorized three lease agreements to move roughly 725 employees from the Hall of Justice administrative building into leased space while supervisors urged ongoing pursuit of purchase options and long‑term plans for the site.
The San Francisco Board of Supervisors on Oct. 31 approved three resolutions authorizing lease negotiations and terms to relocate city employees from the seismically troubled 850 Bryant Street administrative building.
The board authorized: (1) a lease for up to about 125,000 square feet at 350 Rhode Island Street with a total annual maximum base rent of approximately $4,000,000; (2) negotiation of a lease for up to about 27,000 square feet at 777 Brannon Street with an approximate annual base rent of $1,000,000 for police department space; and (3) negotiation of a lease for roughly 41,000 square feet at 945 Bryant Street for the Adult Probation Office with a maximum base rent of about $2,000,000. Taken together, the leases would move roughly 725 employees — the board heard figures that included about 290 District Attorney staff and about 300 police department staff — out of 850 Bryant.
Supervisor London Breed and Supervisor Sheehy led the floor discussion emphasizing worker safety; Supervisor Sheehy described raw‑sewage incidents, vermin and FEMA estimates that the current building would not survive a major earthquake. John Updike, Director of Real Estate, answered procedural and lease‑term questions in committee and on the floor, explaining common industry practices on property management fees, parking options, and tenant improvement financing. The board also discussed the city’s long‑running conversations about buying versus leasing; several supervisors said prior opportunities to purchase office space were missed and urged continued pursuit of acquisition options while approving the leases as a faster, safer stopgap.
Supervisor Kim pressed staff on specific negotiation guidance raised in Budget and Finance: limiting property‑management fees, parking space counts, the owner’s desire to grandfather a self‑storage use, and whether tenant improvement costs would be paid up front or amortized. Updike reported the city intends to use available cash to fund tenant improvements rather than amortize them and described a lease right to rent parking spaces without obligating the city to take all stalls.
Supervisor Aaron Peskin moved an amendment removing language that would pre‑judge the general‑plan consistency of anticipated future leases; the amendment passed by unanimous consent. The board adopted the resolutions unanimously by roll call. Several supervisors said they would continue to press for options to purchase appropriate sites for long‑term consolidation of city administrative functions.
