Committee backs amendment to Bill Graham lease that reduces city utility exposure, raises participation rent and requires tenant improvements

Claudia Gorham of the Department of Real Estate presented an amendment to the 20-year Bill Graham Civic Auditorium lease (originally approved in 2010) that would add a new smaller venue and revise several economic terms. Key changes presented: a base-rent revision (city's materials note $300,000 base rent for the building), the removal of a city utility-credit (making the tenant responsible for utilities), a tenant commitment to at least $10.25 million in tenant improvements (modernization of passenger and freight elevators, upgraded electrical systems), guaranteed participation rent for non-ticketed events ($3,500 for main-auditorium events; $2,500 for smaller spaces), and a reduction of city days from 50 to 25.

Severn Campbell of the Budget and Legislative Analyst's Office explained the fiscal effect: because the amendment removes the utility credit and increases base rent/participation terms, the city now expects increased revenues compared with the existing lease; the BLA estimated about $5.7 million in additional revenue to the city over the remaining 13 years of the lease. Public commenters included a theatrical-stagehands union representative expressing support and a BCGA representative confirming the tenant's intent to preserve graduation and community uses; one public speaker raised historical and equity concerns about cultural access to performance spaces.

Committee members requested clarification about which city days are reserved and whether high-school graduations would be protected; staff said days are guaranteed but the existing lease's detailed scheduling rules (notice, no more than four consecutive city days) remain in place and that high-school graduations qualify as city use. The committee forwarded the amendment with a positive recommendation.