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Committee forwards five-year TSA lease at SFO, analyst says rate is above current revenue
Summary
The Budget & Finance Committee reviewed and forwarded a five-year lease with the Transportation Security Administration for 8,304 square feet at San Francisco International Airport; airport staff said TSA will pay about $1.4 million per year, and the budget analyst noted the revenue would be roughly 69.6% higher than the current lease.
The Budget and Finance Committee of the San Francisco Board of Supervisors reviewed a proposed five-year lease that would permit the U.S. Transportation Security Administration to occupy 8,304 square feet at San Francisco International Airport and agreed to forward the resolution to the Board.
Kathy Weidner of the airport told the committee the space comprises 7,200 square feet in the International Terminal and about 1,104 square feet in Terminal 2. "Under the proposed lease, the TSA will pay the airport a flat 5 year rental rate of approximately $1,400,000 a year for the 5 years of the lease," she said.
Budget analyst Mr. Rose summarized the fiscal impact, saying the five-year total under the proposed lease would be $8,399,443, an average of $203.76 per square foot per year. He contrasted that with the airport—s current five-year TSA revenue of $4,954,020, and described the proposed total as about 69.6% higher than the existing lease revenues.
Weidner and Mr. Rose also said the lease continues the airport practice of providing 52 reserved parking spaces to TSA at no additional charge, noting federal leasing rules limit adjustments tied to indices such as CPI and require encumbrance of federal funds at approval.
The committee accepted the analyst—s recommendation and, after a reported motion from Supervisor Kennedy, took the item without objection and moved it forward to the Board for final action. No roll-call vote was recorded in the transcript.
The resolution will appear on the Board of Supervisors agenda as indicated by the Clerk and proceed through the Board—s review process.
