Supervisors approve Port lease with Pilara family foundation; questions on $3 million rent credit

The San Francisco Board of Supervisors voted to approve a Port Commission lease with the Pilara Family Foundation covering property at a city pier annex, adopting the resolution after questions from supervisors and a briefing from the Port's leasing staff and the budget analyst.

Supervisor Chris Campos asked detailed questions about why the lease was being handled as a sole-source agreement after the last request for proposals about 10 years earlier. Jeff Bauer, Port leasing manager, said the pier had continued to deteriorate and was given a "yellow tag" by the engineering section in February 2002, restricting entry and use. Bauer described a negotiated $3,000,000 rent credit intended to allow the lessee to amortize costs for core-and-shell improvements: "We took the difference between the two and... allowing him to amortize the rent credit just for core and shell improvements," Bauer said.

The boards budget analyst told supervisors staff had reviewed the numbers and concluded the amount of the credit was appropriate but had identified an approximately $58,000 excess in the amortization schedule. The analyst said the Port had submitted an amendment, signed by…