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Committee continues 25‑year Twin Peaks Petroleum lease after concerns about locking public land into long fossil‑fuel term
Summary
Discussion of a proposed 25‑year lease with Twin Peaks Petroleum for a gas station on public land produced concerns from multiple supervisors about a long term lease for a gasoline service given future alternative‑fuel goals; the owner cited tank replacement costs (~$750,000) as rationale for seeking a long term and the committee continued the item for one week to allow further discussions with the tenant and President Yee’s office.
The committee discussed a proposed lease amendment to extend or renew a ground lease with Twin Peaks Petroleum (Twin Peaks Auto Care) at 598 North Boulevard Drive, proposing a 25‑year initial term with a base rent of $200,000 per year and a 3% annual adjustment. President Yee’s office and the Real Estate office described the site as a legacy business and explained the parties negotiated a longer term to allow the tenant to fund necessary capital investments and potential future changes to the site.
Claudia Gorham (Real Estate Office) said the tenant requested the longer term to recover significant capital costs, including tank replacement, which the owner later quantified as an upward cost "of $750,000." Owner Michael Garib said he has operated the station since 1985, employs about a dozen San Francisco residents and that the long term helps amortize major investments.
Supervisors Rafael Mandelmann and Shimon Walton expressed unease about committing public land for 25 years for a gasoline‑related lease given the city’s interest in shifting to alternative fuels. Mandelmann said, "If this property is providing gasoline for automobiles in 25 years, we are in even bigger trouble than we are now," while Walton and other members raised the possibility of shorter terms (20 years plus a 5‑year option) to preserve flexibility for potential public uses such as housing.
President Yee’s office and Real Estate staff agreed to discuss alternative term structures with the tenant. Committee members voted to continue the item one week to allow those conversations and to report back; roll call recorded three ayes on the continuance. Public comment included a neighborhood representative who said the community supports the business as a legacy institution.
