Port approves 15‑year lease for Mission Rock restaurant; commissioner recuses

Port staff asked the Commission to approve lease number L15108 with Golden Bear Restaurant Company (doing business as Mission Rock Resort) for premises at 817 Terry Francois Boulevard. Elliot Riley, senior property manager for the Port, said the proposed lease term is 15 years with a 15‑year extension option and that the lease remains subject to approval by the San Francisco Board of Supervisors.

Riley said the property previously operated as Kelly’s and that Peter Osborne, the proposed tenant and a longtime San Francisco restaurant owner, purchased the prior lease out of bankruptcy for $375,000. Port staff estimated the new operator would need roughly $2.1 million in tenant improvements to make the restaurant viable at that site and said the Port previously received Commission authority (Resolution No. 12-20 on 02/28/2012) to negotiate a new lease with Osborne at market rate and with an extended term.

During the meeting a commissioner disclosed on the record that they had received a campaign contribution in excess of $250 from Peter Osborne and said they would not participate in certain agenda items; the record later notes that Commissioner FX Crowley recused himself from the item. Peter Osborne addressed the Commission and said he had closed escrow and expected to proceed quickly pending any necessary licensing; he described paperwork and escrow as complete.

A motion to approve the lease was moved and seconded and the chair called for the vote. The Commission carried the motion; the lease remains subject to final Board of Supervisors approval.

Staff said the lease includes the terms described in a memorandum to the Port Commission dated April 5, 2012 and that final lease execution will follow the Board of Supervisors’ decision.

Next steps: the item will proceed to the Board of Supervisors for the required approval before the lease becomes effective.