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Commission approves no‑charge lease for SFGH Foundation office space, citing public benefits
Summary
The Health Commission approved a long‑term lease for the San Francisco General Hospital Foundation at about 5,000 sq. ft. on Fifth Street; City Real Estate and foundation leaders said the public benefits and tenant improvements justified a nominal/no‑charge arrangement.
City real‑estate and Department of Public Health staff presented a negotiated office lease for the San Francisco General Hospital Foundation (the Foundation) at 278 5th Street, approximately 5,000 square feet on the CHN building second floor, and the Commission voted to approve the lease.
Mark Primo (capital oversight advisor) and Jeff Cease (City real estate) described the lease background and valuation process: appraisals, credits for lessee investments and public‑benefit calculations that in this case substantially offset rent. Cease said the lease contains clauses accounting for hypothetical future changes (including base‑rent language and a no‑charge condition) and a GASB 87 exhibit will be completed when the final form is processed.
Kim Meredith, CEO of the SFGH Foundation, outlined the Foundation’s fundraising priorities and connection to ZSFG’s clinical work, noting a multi‑year strategic plan and a five‑year fundraising target to support mental and behavioral health, trauma services, family health and wellness. Project manager Jason Zook described accessibility upgrades, mechanical improvements and path‑of‑travel work completed in the leased space that also benefit adjacent city offices.
Commissioners asked questions and no public comment was offered on the item; a motion to approve the lease was seconded and passed by roll‑call vote. Staff said the arrangement reflects the Foundation’s fundraising and programmatic benefits to ZSFG and the city.
