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Committee advances Treasure Island sublease, extends John Stewart Company management
Summary
A committee advanced a resolution to continue a sublease and property-management agreement with the John Stewart Company on Treasure Island, approving a seven-year term with a three-year option and an annual base rent of about $632,000; the motion passed without objection.
A San Francisco Board of Supervisors committee on opening business advanced a resolution that would extend the sublease and property-management agreement for market-rate rental housing on Treasure Island to the John Stewart Company.
Unidentified project staff told the committee the contract follows procurement conducted under the Treasure Island Development Authority (TIDA) and the city's contract-monitoring process and that John Stewart was the sole responsive bidder. "John Stewart has provided exemplary property management service during the term of the original agreement," the staff presentation said, arguing continuity would benefit residents as the Navy remediation and tenant relocations proceed.
The presentation spelled out proposed contract terms: a seven-year initial term through June 2021 with an option for three additional years to June 2024, an annual base rent of $632,000 (adjusted annually), management fees and a capped annual management fee not to exceed $400,000, and percentage-rent arrangements. The speaker also noted contractual compliance elements including prevailing-wage requirements for construction work, first-source hiring provisions and conflict-of-interest and sunshine ordinance language.
Budget and legislative analyst Mr. Rose summarized the fiscal effects, saying the authority is estimated to receive about $4.7 million in base rent and roughly $21.6 million in percentage rent over the initial seven-year term, while the John Stewart Company would receive approximately $3.0 million in combined management fees and percentage rent over the same period. The analyst recommended approval.
With no public speakers on the item, Supervisor John Avalos moved to advance the resolution and the committee took the motion "without objection." The committee forwarded the item to the full Board for further action.
The committee record shows the item was presented as part of ongoing oversight of Treasure Island's residential transition and the proposed agreement aims to align management terms with the anticipated property transfer schedule.
