Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate.lease Dph topic
No spam. Unsubscribe anytime.
Committee advances renewal of DPH lease at 755–759 South Van Ness despite large rent increase
Summary
The committee recommended renewing a 13,545 sq ft Department of Public Health lease at South Van Ness at $34.32/SF (monthly ≈$38,739), a near doubling from the prior $18/SF; the budget analyst asked DPH to report on facility consolidation and to clarify the lease term.
The Budget and Finance Committee on Nov. 13 recommended renewing a Department of Public Health lease for approximately 13,545 square feet at 755 and 759 South Van Ness with Aim 2 as landlord, despite an increase in the annual per-square-foot rent from $18 to $34.32.
John Updike, Director of Real Estate, said the space is used for transitional aged youth services, mental-health case management for people with HIV, and other DPH programs. He described negotiating an extension that conserves flexibility for program delivery while acknowledging a market-driven rate rise: "From the prior rate of $18 per square foot annually to $34.32 per square foot annually," and noted the lease will step up annually with a CPI-based inflator "no less than 3%, no more than 5% annually." He estimated utilities at about $10,000 per year.
Budget analyst Mr. Rose told the committee the proposed monthly rent of $38,739 is about 90.7% higher than the existing base monthly rent and estimated lease costs over the initial term at roughly $2.25 million to $2.33 million; he recommended amending the resolution to request a DPH facility-plan report that would consider consolidating leased sites and to clarify the initial term as approximately 4 years 7 months rather than five years.
The committee accepted the analyst's recommended amendments, moved the item forward with recommendation to the full Board, and directed departments to provide amended legislation by 9:00 a.m. the following morning.
Next steps: DPH is to submit the amended lease language and a facility plan per the analyst’s recommendation before full Board consideration.
