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Budget committee forwards leases, HUD grants and health plans to full Board; multiple items advance
Summary
The committee forwarded a package of airport leases and concessions, federal HUD grant acceptances, health plan rates for 2022, and preservation loans to the full Board with positive recommendations; most motions passed unanimously in committee.
The San Francisco Budget & Finance Committee on July 14 moved a series of routine and substantive items to the full Board with positive recommendations.
Among the items the committee forwarded were two airport agreements: a 12‑year Harvey Milk Terminal 1 lounge lease with ALD Development Corporation (initial annual base rent $3.1M) and a 12‑year Terminal 2 retail/concession lease to MRG San Francisco Terminal 2 LLC (minimum first‑year guarantee $2.3M). The committee also approved a BLA‑recommended amendment and forwarding for a multi‑part acquisition and bond issuance to finance rehabilitation of Ambassador/Ritz SRO buildings in the Tenderloin (187 SRO units) with loan and multi‑family revenue note authority.
MOCD presented HUD formula grant acceptances and expenditure authorizations for the 2021–22 program year, including CDBG (~$18.8M entitlement plus program income), ESG (~$1.5M), HOME (~$5.2M), and HOPWA (~$12.9M), with planned uses from housing development to shelter and rental subsidies. The Department of Public Health presented an HRSA Ryan White/EHE grant increase and requested authority to accept and expend the funds; the Budget Analyst had no objections to these items and the committee voted to forward them.
Supervisor Chan led presentation of the Health Service System plans and contribution rates for 2022; staff reported an aggregate 1.28% increase in benefit costs and recommended employee contribution rates; the BLA reported total City cost for 2022 of approximately $744M and recommended approval.
The Committee also approved an amendment to continue flexible admission pricing at major tourist sites (Japanese Tea Garden, Conservatory of Flowers, Botanical Garden and Coit Tower elevator) and advanced a third amendment to Calpine Energy Solutions' contract for Clean Power SF administrative services (an increase of ~$13.9M and a term extension to Oct. 2024). Multiple items were moved to the full board by roll call, generally unanimous among the three committee members present.
What happens next: All forwarded items will appear on the Board of Supervisors agenda (items indicated by the clerk) for final consideration and votes.
