Supervisors’ Budget Committee backs leases to move staff out of Hall of Justice amid safety concerns

SAN FRANCISCO — The Budget and Finance Committee voted Thursday to send three leasing actions to the full Board of Supervisors with a positive recommendation to relocate administrative staff out of the Hall of Justice amid repeated flooding, contamination and seismic concerns.

City Administrator Naomi Kelly told the committee that staff declared an emergency after floods and testing found pathogenic bacteria and asbestos in the Bryant Street wing, and that the city needs an expedited move to protect employees. "We had to declare an emergency," Kelly said, describing damage to ceilings, walls and flooring and additional testing required by Cal/OSHA and Public Health.

Real Estate Director John Updike presented a three‑site package: a 15‑year lease with a five‑year option at 350 Rhode Island North for the district attorney and police investigations (125,122 sq. ft.; base around $51 per sq. ft.; landlord tenant‑improvement allowance of $10 million), a police evidence facility at 777 Brannon (about 27,000 sq. ft.; roughly $37 per sq. ft.), and adult probation at 945 Bryant (about 72,000 sq. ft.; base about $64 per sq. ft.). Updike said phased moves would begin in July 2018 and continue into 2020.

Budget and Legislative Analyst Severn Campbell told supervisors the BLA estimated that the initial 10–15 year cost across the three leases is large — roughly in the low‑hundreds of millions — and urged amendments and negotiation of terms where possible. Campbell recommended removing a 3% property‑management fee in negotiations, seeking purchase options where feasible, avoiding amortizing tenant improvements to the city at an 8% rate, and reducing excess parking entitlements where they exceed departmental needs.

Supervisors pressed staff on alternatives, including purchase opportunities and eminent domain. Updike said two purchase prospects were not feasible: one was too small for required build‑out and the other was not available because it was owned by a nonprofit. He added that eminent domain for office buildings is legally difficult and can trigger relocation obligations.

Unions backed the expedited approach. Bob Muscat of Local 21 urged the committee to act, saying the Hall of Justice has had problems for decades and that recent incidents made the action urgent. Michael Weinberg of SEIU voiced similar support and said staff had not received sufficient safety training for hazards they face.

The committee approved, without objection, a motion to forward items 6–8 to the full Board as committee reports; Item 6 is the actual lease before the committee, while Items 7 and 8 were letters of intent authorizing negotiation of leases. The motion included an amendment directing staff to consider the BLA recommendations and to explore sheriff co‑location at 945 Bryant.

Next steps: the full Board of Supervisors will consider the leases and accompanying amendments; two of the three items (777 Brannon and 945 Bryant) will return as final lease approvals after negotiation, while 350 Rhode Island was presented as the immediate lease action before the committee.