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Committee forwards Port lease with Ammunition LLC after budget analyst flags policy decision
Summary
The committee forwarded a Port lease for Ammunition LLC at 10 Lombard Street (52-month term) after Port staff said the tenant will invest $290,000 in tenant improvements and pay an effective rate above port minimums; the Budget Analyst noted the absence of competitive bidding makes the resolution a policy decision for the Board.
The Budget and Finance Committee on Sept. 1 forwarded a Port Commission lease (L-15150) between the Port of San Francisco and Ammunition LLC for office space at 10 Lombard Street.
Nate Cruz of the Port said Ammunition, an industrial design firm, will perform a minimum of $290,000 in tenant improvements and that the city will waive about $110,000 in rent in exchange; the net effective rent in the first year is $2.67 per square foot per month, which the Port said compares favorably with local market surveys and exceeds the Port’s minimum monthly rental rate. Cruz said many Port leases rely on market-rate surveys rather than competitive solicitations because of waterfront-management practicalities.
Budget analyst Deborah Newman noted that because the proposed lease has not been subject to a competitive-bid process (a requirement under the city’s administrative code), the proposed resolution is a policy decision for the Board of Supervisors. There was no public comment. Supervisor Kim asked how Ammunition became a tenant; Port staff said the firm previously subleased Port office space and that the Port would provide further background if requested. The committee moved the item forward with recommendation.
