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Port proposes $13.5 million rent-forgiveness package for retail, maritime and small operators
Summary
The Port of San Francisco presented an ordinance to let the Port Commission amend certain leases and provide base-rent forgiveness and credits to retail, maritime and Local Business Enterprise tenants affected by COVID-19; the Budget & Finance Committee advanced the item to the full Board with a positive recommendation.
The Budget and Finance Committee advanced an ordinance on Nov. 4 that would let the Port Commission amend certain commercial leases to deliver rent forgiveness and credits to tenants hit by the COVID-19 pandemic. Chair Sandra Lee Feuer called Port Director Elaine Forbes and Chrissy Atanoli, manager of business strategy, to present the proposal.
Port staff described a sector-based approach: percentage-rent retail tenants — largely restaurants and retail in Fisherman’s Wharf — would have their base rents forgiven for defined periods while still reporting and paying percentage rent as specified in their leases. Maritime tenants (fishers, processors and similar operations) would receive base-rent forgiveness for a shorter window. Local Business Enterprise tenants would receive a separate, shorter forgiveness period and may be eligible for rent credits. "We are presenting a very thoughtful rent forgiveness package," Chrissy Atanoli said, adding the program focuses on tenants with long‑standing leases that predate many modern code requirements.
The ordinance focuses on roughly 32 leases within a wider port program; Port staff estimated base rent forgiveness of about $13.5 million total, with percentage-rent collections potentially offsetting $6.6 million to $13 million of that figure as businesses reopen. Conditions for eligibility include maintaining agreed hours, submitting an online application with required data, and resolving any outstanding balances prior to March 1, 2020.
Nick Menard of the Budget Legislative Analyst’s office said the waiver applies to 38 leases and estimated the cost of the program at approximately $13.45 million, which may be partially offset by percentage rents. Chair Feuer moved the item to the full Board with a positive recommendation; the committee approved the motion by roll call vote.
The full Board will receive the ordinance next; the Port and the Budget Office will provide fiscal details and implementation steps as the item moves forward.
