Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Property Leases topic
No spam. Unsubscribe anytime.
Committee continues two Market Street lease resolutions for redlines and technical corrections
Summary
The committee continued two lease resolutions for the San Francisco Law Library and the Health Service System at 1145 Market Street for one week to allow substantive redline amendments; staff said the leases save the city roughly $900,000 in year one across both leases despite $13.8M in payments over 10 years.
The Budget and Finance Committee on May 15 agreed to amend the record and continue two resolutions relating to leases at 1145 Market Street for the San Francisco Law Library and the San Francisco Health Service System (HSS).
Andrico Penick, director of the Real Estate Division, explained the law library lease would be for a 15‑year term with a first‑year base rent of $599,000 (about $29.95/sf) with a 3% annual escalation and a partial market reset in year 11. The HSS lease was described as a 10‑year term with first‑year rent of approximately $587,000 for about 19,659 square feet; the HSS relocation includes $325,010 in tenant improvements. Penick read proposed redline amendments correcting term lengths and options in both resolutions and said the Real Estate Division conceded the changes are substantive and requested a one‑week continuance to May 22 to finalize the amended language.
The Budget and Legislative Analyst noted that across both leases the city will pay about $13.8 million over the first 10 years but that the negotiated terms will save the city roughly $900,000 in year one compared with current rates. Chair Chan moved to accept the amendments and continue both items for one week; the motion passed with three ayes.
