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Committee recommends retroactive lease amendment for DCYF at Fox Plaza with early‑termination reporting requirement
Summary
The committee forwarded a retroactive five‑year lease amendment for DCYF at Fox Plaza that includes rent credits and a two‑year early‑termination option; BLA recommended and the committee added a requirement that Real Estate report on feasibility of moving tenants to city‑owned property and analysis of potential purchases.
The committee on Jan. 27 recommended the Board approve a retroactive five‑year lease amendment between the city and the landlord of Fox Plaza (1390 Market St) for space used by the Department of Children, Youth and Their Families (DCYF).
Rico Penick, Director of Real Estate, and Denise Peyton of DCYF presented the agreement, which extends the term five years with a two‑year off‑ramp. Penick said the negotiated initial rate is $65 per square foot with rent credits (two and a half months free rent in years 1 and 2) and tenant improvement allowances that reduce the effective near‑term cost. He said the amendment is retroactive to capture negotiated savings that otherwise would have been lost to the month‑to‑month holdover rate.
BLA recommended the Real Estate Division report back by December on the fiscal feasibility of moving city tenants at Fox Plaza to city‑owned space and to include analysis on potential city property acquisitions. Supervisors asked about DCYF’s operational needs, the role of conference and refrigerated storage for nutrition programming, and how a two‑year option supports a deliberate search for alternatives. The committee adopted the BLA recommended amendment (to have the Real Estate Division report back) and forwarded the amended resolution to the full Board with a positive recommendation.
