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Subcommittee approves 10‑year lease extension for 1421 Broderick Street to house adult residential facility
Summary
The Budget & Finance subcommittee voted to forward a resolution authorizing a 10‑year renewal of the lease for the 12,417‑sq‑ft building at 1421 Broderick Street for the Department of Public Health, which operates a 33‑bed adult residential facility; rent rises from $12,661 to $12,914 per month, with CPI caps between 2% and 6%.
The Budget & Finance subcommittee voted to forward a resolution authorizing the city to exercise a 10‑year option to renew the lease on the 12,417‑square‑foot building at 1421 Broderick Street that houses a 33‑bed adult residential facility for the Department of Public Health.
Mr. Updike of the Real Estate Department told the committee the property is across from a Kaiser medical facility and is currently used as a long‑term stay community residential facility for adults with serious mental and medical illnesses. "Currently, the city pays $12,661 a month for this lease" under the existing agreement, he said, and the proposed renewal would increase the rate to $12,914 per month, a roughly 2% increase, with annual adjustments tied to the Consumer Price Index but collared at no less than 2% and no more than 6%.
The budget analyst presented comparative data designed to show the proposed rate is competitive: the report notes the city's monthly rental per square foot across six comparable SRO hotels ranges from $0.91 to $3.17, and that the proposed rate for this facility is approximately $1.04 per square foot — about $0.31 (roughly 23%) below the $1.35 weighted average the analyst calculated for other DPH locations. The analyst recommended approval of the resolution.
Committee members agreed to two technical corrections to the resolution (one to replace the word "including" with "excluding" in a standard indemnity clause and one to correct the naming convention for the trust referenced in the document). With those non‑substantive amendments the committee approved forwarding the item to the full Board of Supervisors. Chair Carmen Chu opened public comment and received no speakers on this item.
The report and discussion made clear the lease renewal preserves an existing operational relationship: the program services are delivered by RANS (Richmond Area Multi Services), a nonprofit mental health agency, and the facility‑management contract between RANS and DPH is separate from the lease action before the committee. The item will appear on the Board of Supervisors agenda on 2011‑03‑15.
