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Committee approves three‑year lease option renewal for Western Addition job center at 1449 Webster Street
Summary
The subcommittee approved a resolution authorizing a three-year option to extend the lease at 1449 Webster Street for OEWD’s Western Addition Neighborhood Access Point; staff said the 3,900 sq. ft. space serves roughly 1,450 people annually, has a base rent of $9,142 per month, and additional monthly operating costs of about $2,000.
The Budget and Finance Subcommittee on April 9 voted to approve a resolution exercising an option to extend the city’s lease at 1449 Webster Street to continue use of the Western Addition Neighborhood Access Point as a job-training and employment assistance center.
John Opdieck, Director of Real Estate, told the committee the space has been used for job-training since 2008 and was renewed in 2011; the proposed renewal is the negotiated follow-on. “This is for continued use as a job training center. It’s been very successful since we opened it up in 02/2008,” Opdieck said. He described the site as 3,900 square feet serving about 1,450 people annually and said the renewal base rent is $9,142 per month (about $28.13 per square foot per year), which he called significantly below market.
Opdieck described additional occupancy costs of about $2,000 per month for utilities, janitorial services, maintenance and repairs. He told the committee future annual rent increases are pegged to a CPI inflator described in the item as typically under 2% per year but capped at no greater than 5%, and that the city retained the right to unilaterally terminate the lease with 180 days’ notice and no penalty. Connor Johnson, legislative aide to Supervisor London Breed, said Breed sponsored the lease renewal and emphasized her support for the Western Addition Neighborhood Access Point and its services.
Staff presented estimated total annual rent and operating costs for the three‑year extension ranging from $426,852 to $436,944 depending on operating-cost changes and CPI adjustments; staff recommended approval. After questions from Supervisor Eric Marr about market comparables and negotiation strategy, staff explained the favorable terms reflected long-standing relationship-building with the property owner and the community-serving nature of the use. The committee closed public comment, had a motion and a second, and approved the resolution without objection.
