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Committee approves forwarding lease amendment to keep New Conservatory Theatre Center at 25 Van Ness
Summary
Real estate staff requested and the committee agreed to forward a lease amendment extending the New Conservatory Theatre Center’s tenancy through a new option period beginning Sept. 30, 2018 (running to Sept. 30, 2023) and preserving an additional option through 2028 after discussion of long‑running basement water intrusion problems.
Real estate staff presented a proposed lease amendment for the New Conservatory Theatre Center (NCTC) at 25 Van Ness that would commence a renewed five‑year extension period beginning Sept. 30, 2018 and run to Sept. 30, 2023, with a department request to preserve a subsequent five‑year option extending the lease through 2028.
Staff described a history of chronic water intrusion in the basement theatre space that led the city and the tenant to toll a prior option period while investigations and repairs were undertaken. Real estate staff said permanent fixes were costly (estimates ranged from roughly $3 million to $12 million) and disruptive to the tenant, so the department has relied on annual preventative maintenance and periodic sealing. The department proposed a modest rent adjustment (from $7,826 to $7,983 per month) and annual adjustments of 2–4 percent.
The Budget Legislative Analyst said records indicated a 2013 option was not exercised and recommended treating the 2023 date as the final extension under the current lease; the department and NCTC representatives disagreed, citing the tolling and operational disruption experienced while investigations proceeded. NCTC leaders and program staff described the theater's community programs, school outreach, and reliance on the space for education and performances.
Deputy City Attorney advised the committee that the Board can approve or reject a lease but cannot unilaterally shorten a term without both parties' agreement; the committee accepted the department's proposal and the BLA's square‑footage correction, and forwarded the item to the full Board with a positive recommendation.
