Board approves long-term lease for Bill Graham Civic Auditorium; unions press for job protections

The San Francisco Board of Supervisors voted unanimously Tuesday to approve a long-term lease of the Bill Graham Civic Auditorium to Bill Graham Civic Auditorium Management (BGCA management) for a term through Dec. 31, 2030 with two five-year renewal options.

Supervisor Bevan Dufty, a sponsor of the measure, said the lease would bring a private operator to revitalize the aging venue and “create a state-of-the-art concert and comedy venue” through $10 million in private improvements paid by the management group. Dufty said operating costs will be paid by the management group and that the lease guarantees rent to the city.

Dufty said BGCA management committed in a letter — submitted to the board and referenced during the hearing — that the company and its local promoter would offer employment to the seven existing full-time employees at the facility and, once offers are accepted, would recognize and negotiate in good faith with their bargaining representatives for custodial employees. Dufty noted five of the seven full-time positions are represented by SEIU and that signed agreements were in place with Local 16 for some operations.

Union representatives and staff with Local 1877 and other worker groups spoke during public comment asking the board to secure a memorandum of understanding (MOU) guaranteeing wages, benefits and local hiring. Two union speakers, including June Jackson of Local 1877, said they want city support to assure that the operator will maintain prevailing wages and not subcontract work at lower pay rates as reported at other venues. Another commenter said security and housekeeping jobs in other venues had been contracted out at lower pay.

Supervisor David Chiu and others said the letter and commitments persuaded them to support the lease; supervisors approved the resolution by roll call (11 ayes).

Why it matters: Bill Graham Civic Auditorium is a major city-owned entertainment venue that has operated at a deficit in recent years. The lease transfers capital investment and operating risk to a private operator while preserving specified city uses: the city retains the right to use the facility for up to 50 days per year for civic events.

Implementation details: The lease term runs through Dec. 31, 2030, with two five-year extension options. Under the lease terms presented to the board, BGCA management will invest $10,000,000 in improvements. The lease requires the operator to offer employment to seven existing full-time staff and includes language about recognizing bargaining representatives after offers of employment are made.

The board adopted the resolution authorizing the lease and related agreements; staff and union representatives said follow-up negotiations on a workers’ MOU were expected after the vote.