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Committee approves forwarding five‑year lease extension for Sheriff’s training facility
Summary
The committee forwarded a resolution to exercise a five‑year option to extend the lease at 1740 Folsom (120 Fourteenth Street) for the Sheriff’s Department, with an initial year cost of roughly $880,000 and annual 3% increases; BLA noted a ~60% increase in annual rent versus FY16–17 and recommended approval.
The Budget and Finance Committee voted to forward to the full Board a resolution to exercise a five‑year option to extend the lease for the San Francisco Sheriff’s Department at 1740 Folsom (also identified as 120 Fourteenth Street) for the term 7/1/2017–6/30/2022.
Claudia Gorham of the Department of Real Estate said the facility is roughly 18,000 square feet and is used by the Sheriff’s training and background units. An independent appraisal set fair market rent at $50.50 per square foot; the lease extension is priced at 95% of that appraisal, or $47.50 per square foot. Gorham said the city negotiated a 3% concession for the remainder of 2017 to assist the Sheriff’s current budget, and that no comparable alternate space was available at the time the department searched for other options. “We believe this extension in the terms are in the city's and sheriff's department's best interest,” she said.
The Budget Legislative Analyst reported the sheriff’s existing annual rent of $550,392 would increase to $882,560 in FY17–18 under the proposed extension, an increase of $332,158 (about 60.4%), and presented total five‑year rent and utility cost estimates. No public comment was received. Supervisor Norman Yee moved to pass the item to the full Board with a positive recommendation and the motion passed without objection.
