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Port interim lease with China Basin Ballpark Company forwarded despite budget analyst timing questions
Summary
The subcommittee forwarded a five‑year interim Port lease with China Basin Ballpark Company for Seawall Lot 337 and limited Pier 48 licenses; the lease sets seasonal base rents of $45,000/month (low season) and $355,000/month (high season), includes percentage rent provisions and up to $638,000/year in extraordinary operating cost allowances; the budget analyst questioned the timing of submitting a new lease after a long holdover period.
Phil Williamson, project manager for the Port, presented a five‑year interim lease between the Port of San Francisco and China Basin Ballpark Company LLC (CBBC) for Seawall Lot 337, the primary surface parking lot serving AT&T Park, and a non‑exclusive license for certain areas at Pier 48 for special events.
Williamson recounted the site's 1997 improvements and the earlier 10‑year parking lease that required CBBC to prepare the site as parking. The interim lease is seasonally bifurcated: base rent is $45,000 per month in the low season (October–March) and $355,000 per month in the high season (April–September); the base rent is subject to annual 3% increases. The lease also provides for the greater of base rent or 66% of gross revenue (after parking tax) as percentage rent and allows up to $638,000 per year in substantiated extraordinary operating costs for events (security, accessibility shuttle, temporary bathrooms, cleaning and extra labor).
The budget analyst asked why the Port had permitted a month‑to‑month holdover for more than 27 months after expiration instead of earlier submitting a lease for Board approval; staff said negotiations began before November 2009 and acknowledged an oversight in not starting negotiations earlier to account for season ticket sales that lock in parking allocations. The Port said policy changes now include automatic rent increases during holdover in newer leases to push timely renegotiation. The subcommittee sent the item forward with recommendation and unanimous support at the subcommittee level.
