Supervisors forward plan for 75‑bed navigation center at 888 Post St. to full Board
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Summary
The Budget & Finance Committee voted to forward a 20‑year lease for 888 Post Street to the full Board with a positive recommendation. The city would contribute up to $5M (staff said potentially up to $7M) toward tenant improvements for a 75‑bed transitional‑age youth navigation center with Goodwill as ground‑floor subtenant; the lease includes a $29M purchase option.
The Budget and Finance Committee on Feb. 12 forwarded to the full Board a proposed 20‑year lease for 33,980 square feet at 888 Post Street to create a low‑barrier navigation center for transitional‑age youth (ages 18–24).
Gigi Whitley, deputy director for administration and finance at the Department of Homelessness and Supportive Housing, told the committee the navigation center is intended as a 75‑bed facility operated with a nonprofit provider and paired with a ground‑floor sublease to Goodwill Industries for drop‑in services and workforce development. "We are proposing this navigation center for a low barrier shelter for about 75 beds with a nonprofit provider who is really familiar with young people and their particular needs," Whitley said.
Andrico Penick, director of the city’s Real Estate Division, reviewed lease economics: a 20‑year initial term with a 10‑year extension option, rent of $1,500,000 in the first year escalating 3% annually, and capital contributions capped at $5,000,000 from the city (Penick noted the landlord is expected to invest an additional ~$5,000,000). The lease also includes a purchase option exercisable at $29,000,000 any time between execution and August 2022.
Budget and Legislative Analyst Sevin Campbell recommended amendments and a follow‑up on the purchase analysis; the BLA report also noted staff may return to the Board about purchasing the property no later than August 2021. Chair Sandra Lee Feuer moved the item "to the Board with a positive recommendation," and the motion was taken without objection.
The item drew extensive public and provider support. Deborah Bouk, Goodwill’s vice president of marketing and communications, said the nonprofit would bring workforce training to the site. Sherilyn Adams of Larkin Street Youth Services and other speakers emphasized the scale of youth homelessness: "We have 1,100 young people sleeping most nights who are homeless in San Francisco," Adams said. Multiple community groups — including the Lower Polk Community Benefit District, Music City SF, Huckleberry Youth Programs, Community Housing Partnership and the Youth Commission — urged approval and praised the outreach process.
Supervisors pressed staff on timeline and outreach. City staff estimated a roughly eight‑month build‑out for Phase 1 and said the department currently commits $5,000,000 with the potential to go up to $7,000,000 if necessary; staff said the remaining work would be borne by the property owner. Whitley committed to returning with more detailed outreach and operational plans and quarterly updates as construction proceeds.
The committee approved the BLA amendments and forwarded the lease to the full Board as amended. The Board will decide whether to authorize the lease and any future purchase; the committee asked that staff return with the purchase analysis and further implementation details as recommended by the BLA.
