Board approves port lease with Central Parking; supervisor votes no over unlimited holdover clause

The Board approved a Port Commission lease with Central Parking covering a three-year term for property near Taylor, Jefferson and Powell Streets, bounded by the Embarcadero, Bay and Kearny Streets. The clerk recorded the roll call vote as 9 ayes and 1 no; Supervisor Campos cast the sole no vote.

Supervisor Campos asked why the lease contained an open-ended "holdover" provision that could allow the tenant to remain beyond the initial term without a fixed limit. Jeffrey Bauer, Port leasing manager, told the Board the contract's holdover clause increases rent by 50% during holdover and said the Port would report to the Board before entering a long-term holdover to explain the rationale and next steps. Monique Moyer from the Port said practical land-use changes and market conditions (including slow markets and shifting redevelopment timelines) make it difficult to guarantee specific re-use dates; she said the Port is not opposed to checks and balances and will return to the Board if holdover is contemplated.

Supervisor Campos said indefinite holdover clauses are poor practice and left open whether she would support the resolution; she ultimately voted no citing best-practice concerns. The clerk announced: "This resolution is adopted." The vote tally recorded 9 ayes, 1 no.

Ending

The lease was adopted by the Board, with one dissent. Port staff said they will return to provide additional information to the Board in the future if a holdover is requested.