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Commission extends Yerba Buena Gardens management and programming contracts to ensure continuity during transfer
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Summary
The commission approved three-year extensions for MJM Management Group to manage Yerba Buena Gardens and for Yerba Buena Arts & Events to continue free programming; community organizations and tenants urged continuity and attention to worker pay and SBE participation.
The Commission approved two companion second amendments on May 5 extending contracts that support operations, maintenance, security and cultural programming at Yerba Buena Gardens while the property transfer to the City is finalized.
MJM Management Group: Denise Ermani, senior development specialist, described a proposed three-year extension to MJM's property management contract to ensure continuity of operations and a smooth transfer to the City once the State Department of Finance completes review. OCII staff said MJM has provided consistent service since 1993 and that the amendment provides an additional management fee (three-year fee $482,180) with total contract aggregate limits. Staff noted MJM and its subcontractors achieved SBE participation levels during predevelopment and that roughly 54 permanent positions serve the gardens, with the majority San Francisco residents.
Yerba Buena Arts & Events (Gardens Festival): Staff explained Arts & Events has produced more than 1,100 events over 15 years and that OCII's $75,000 annual contribution helps leverage sponsorships and earned revenues to support over 100 free programs per year. The second amendment extends programming support through June 30, 2018, and continues requirements to use local artists and comply with SBE priorities when applicable.
Public comment and community support: Dozens of tenants, cultural leaders and business owners testified in favor of both extensions. Virginia Grama of the Yerba Buena Alliance said, "MJM Management has been an active and key supporter" of the neighborhood. Speakers praised MJM's coordination with tenants, neighborhood safety and the festivals' role in free cultural programming. Public commenters also raised worker-pay concerns and urged the commission to verify living wages and benefits for subcontractor staff.
Votes: Commissioner Bustos moved the MJM amendment and it passed by roll call (4 ayes). The Arts & Events programming amendment was likewise moved and seconded and passed (4 ayes). OCII staff said the extensions are temporary measures during the asset transfer window and that a competitive solicitation process would be available to the city later if desired.
Next steps: Staff said it will continue working with the city and the Department of Finance on the transfer and recommended that the commission be provided program and outreach performance reports during the extension period.
