Committee advances purchase of 1995 Evans St.; some supervisors raise valuation concerns

The Budget & Finance Committee on Jan. 14 forwarded to the full Board a resolution authorizing purchase of property at 1995 Evans Street for roughly $15 million, with committee members expressing concern about a valuation gap.

Sean Uptyke, identified in the record as the city’s Director of Real Estate, told the committee the effective purchase price is about $15,405,000 and that the property includes roughly 44,000 square feet of improvements. He said the city secured a waiver of rent due for January worth $70,000, providing general fund savings. Using an industrial‑market metric, the purchase works out to about $348 per square foot for improvements, Uptyke said, and he compared that to a recent transaction at 268 Alabama that equated to $579 per square foot for improvements.

Budget office staff cautioned the committee they had not analyzed the latest material and recommended that future purchase option agreements include appraisal and due diligence requirements. Supervisor Marr said he would vote no because the committee had not closed a roughly $4 million gap he saw between price and appraised value. Supervisor Avalos acknowledged the limited savings but supported moving the item "without recommendation" to give the full Board an opportunity to review.

The committee moved the resolution to the full Board without recommendation. Staff said the transaction would remain under the bond allocation cap ($16 million) and could close before Feb. 1 if the Board directs.

Next step: the item will appear on the Board of Supervisors agenda for a final vote, where at least one supervisor indicated an intention to oppose the purchase.