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Subcommittee backs extended lease for Proxy project on Octavia & Hayes until 2021
Summary
The Budget & Finance subcommittee approved a lease extension with Proxy Development for Parcel K at Octavia and Hayes, allowing temporary retail and food vendors to continue through Jan. 31, 2021, with phased rent increases. City staff said the site will be redeveloped as affordable housing after the interim use.
The San Francisco Board of Supervisors Budget and Finance Subcommittee on Wednesday approved a lease amendment that extends the city's agreement with Proxy Development LLC for Parcel K at Octavia and Hayes through Jan. 31, 2021, with a phased increase in the monthly base rent to $7,200 effective June 1, 2015.
Connor Johnson, representing Supervisor London Breed, described the site as a temporary activation of a former parking lot created after the Central Freeway removal and said the proxy project has been a "true asset to Hayes Valley," creating more than 100 jobs and providing space for small retail and food vendors.
John Updike, Director of Real Estate, said Parcel K is an 11,430-square-foot parcel originally leased for parking; the amendment establishes an interim lease rate that rises to $5,314.80 per month and then to $7,200 in June 2015 with annual 2 percent increases thereafter. He said the mayor's office of housing expects to program Parcel K for affordable housing no earlier than 2021.
Tamsen Drew of the Office of Economic and Workforce Development and Douglas Burnham, the project's architect and principal of Proxy Development, outlined the project's temporary uses: modified shipping-container retail, coffee and ice-cream vendors, fitness classes and event space, plus a beer garden on an adjacent lot (Parcel L), which was not before the committee. Burnham said the project has attracted national press and has partnered with local workforce programs.
A Hayes Valley Neighborhood Association representative and other public commenters urged the committee to continue the interim use, saying Proxy has been an effective community partner. Supervisors accepted the amendments and moved the resolution forward without opposition.
The lease extension keeps the interim community-serving activation in place while the city plans a future affordable housing development on the parcel.
