Budget committee approves amended Mission and Gulf Street leases, citing nearly $2.5 million savings over five years

Chair Sandra Lee Fewer said the committee voted to send two lease items to the full Board with a positive recommendation after the city successfully renegotiated the proposed rents. Andrico Pinnock, Director of Real Estate, told the committee he had gone back to landlords and secured roughly a 15% reduction from last week’s proposals, producing a new proposed rate of $41.18 per square foot at 3119–3120 Mission Street (below the current $46.75/sf) and $44.78/sf for the Gulf Street lease where the prior proposal had been $52.68/sf.

The Budget Legislative Analyst later supplied five‑year savings figures: $1,942,840 for the Mission Street leases and $586,215 for the Gulf Street lease, a combined savings of just over $2.5 million across the terms. Pinnock said the landlords were "not very happy" but agreed to reductions to maintain their partnership with the city.

The City Attorney advised that the resolutions would need non‑substantive amendments to reflect the new dollar amounts; staff provided redlined and clean versions to the clerk during the meeting. With no members of the public requesting to speak, Chair Fewer moved the amended items to the full Board with a positive recommendation and the roll call vote recorded ayes from Supervisors Shamann Walton, Rafael Mandelmann and Chair Fewer.

The action now goes to the full Board of Supervisors for final approval; the committee requested that staff provide any additional documentation supporting the rent reductions and confirmed the clerk would circulate the amended resolutions for review before the Board meeting.