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Commission delays decision on California Historical Society lease amendment at 680 Mission
Summary
OCII staff presented a consent request for a lease amendment that would relinquish two-thirds of California Historical Society's leased space at 680 Mission in exchange for a $2.25 million buyout; commissioners asked for more time to explore alternatives to converting nonprofit space to market-rate uses and continued the item to the next meeting.
OCII staff asked the Commission to consent to a lease amendment reducing the California Historical Society’s (CHS) leased premises at 680 Mission by about 10,000 square feet so the developer could lease the space at market rates and pay a $2.25 million buyout, of which OCII’s pro rata recovery would be roughly $947,000 and would be treated as Community Development Block Grant program income.
Tracy Reynolds of OCII’s Real Estate Group explained the buyout arises from an original land‑discount tied to reserving nonprofit space in the Paramount development; because the nonprofit will relinquish a long‑term public benefit, OCII would recover the pro rata share of the original land discount. Robert Chattel (President, CHS Board) and a resident supporter told the Commission CHS finds the leased space noncontiguous and operationally unsuitable and that the buyout is important to CHS’s financial planning.
Several commissioners and public speakers urged additional review before consenting. Commissioners asked whether the successor agency could require a replacement nonprofit tenant, negotiate a higher buyout, or otherwise constrain future use — and staff said dissolution‑era enforceable obligations and the language of the original LDA limit OCII’s authority. Given concerns about preserving nonprofit space and the public benefit, the Chair moved and the Commission agreed to continue the item to the next meeting so staff can return with any legal options, negotiation history and possible alternatives to converting the space to market use.
No consent was granted at this meeting; the item was continued for further review.
