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Committee backs lease extension for SFPD tactical unit at Potrero Hill site

San Francisco Board of Supervisors Budget and Finance Committee · December 6, 2018

Summary

The committee recommended approval of a lease extension for San Francisco Police Department tactical company space at 1700–1740 Seventeenth Street; the new rent would rise to $256,281 per month and the city will accept landlord‑paid improvements to HVAC and generators.

The Budget and Finance Committee voted to forward a lease amendment that would extend use of premises at 1700–1740 Seventeenth Street and 1415 Sixteenth Street used by the San Francisco Police Department's tactical company.

Andrico Penick, Department of Real Estate, told the committee: "The current rent is approximately $200,000 per month. The new rent will be $256,281 per month or $3,075,375 per year." He said the premises total about 52,000 rentable square feet and that the fair market value was based on an appraisal at $59 per square foot. The landlord will pay for repairs and improvements to air handling, HVAC and the generator.

Supervisors pressed staff on why the tactical unit was not moved into the new Public Safety Building; staff and the BLA said the unit requires large warehouse and operational support space not available at the new headquarters and that long‑term planning to transition departments from leased space to city‑owned property remains a work in progress. The BLA estimated the city's cost over a 10‑year extension could range from approximately $37M to $42M depending on CPI adjustments.

Committee accepted minor typographical corrections to the resolution (removing an erroneous 'retroactively' and correcting an internal title) and voted to send the matter to the full Board with a positive recommendation.

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