Community leaders press SFPUC for leasing plan and more space at Southeast facility

Dr. Espinola Jackson and several community speakers told the commission the Southeast community facility and City College space have been reduced over time and that students, seniors and nonprofit service providers are losing access as construction and lease arrangements change.

"The college had 33,000 square feet when it opened; now because of politicking it's down to 17,000 square feet," Dr. Jackson said, urging the commission to help restore programs and meet with trustees. Robert Woods of Southeast Facility Renaissance warned that rent increases threaten life-saving community services and called for the city to support nonprofit tenants so they can continue and expand services as development accelerates on Third Street.

Deputy General Manager Michael Carlin said the facility is not priced at market rate; staff have been using a below-market industrial rate to reflect nonprofit use and to recover modest operating costs such as janitorial and security. Assistant GM Juliet Ellis said staff based current renovation assumptions on City College's request for 17,000 sq ft and that staff will provide a lease-analysis showing the market-rate comparison, tenant arrangements and any recovery assumptions.

Commissioners requested that the leasing report include communications with City College, background on subleasing arrangements that previously offset rent, and the full analysis of rates (staff cited $9 per sq ft as the low-end industrial comparison and noted some tenants currently pay as little as $0.34 per sq ft). Staff committed to produce the leasing analysis and return with a fuller presentation ahead of upcoming hearings.

Ending: Staff will prepare the requested leasing report, including market analysis, sublease history and proposed communications strategy with City College and community stakeholders.