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Committee forwards four city lease amendments that reduce rent about 5% and yield modest savings to general fund
Summary
The committee recommended four lease amendments that reduce rent by roughly 5% at properties used by city departments, projecting $85,346 in total annual savings and about $28,206 to the general fund annually.
The Budget and Finance Committee recommended that the Board consider resolutions to amend four existing city leases—at 729 Filbert Street, 650 Fifth Street, 160 South Van Ness Avenue and 109 New Montgomery Street—to reduce rents by approximately 5% in exchange for modest term extensions.
John Updike, assistant director of real estate, said the leases were the result of outreach to 94 landlords and that the city secured these four (and an additional airport lease being processed separately). He described the term extensions that accompany the rent reductions (five years at 729 Filbert; one year at 650 Fifth; about 2 years 5 months and an option to reduce footprint at 109 New Montgomery; and one year at 160 South Van Ness).
Committee staff reported the combined annual savings across the four lessors is $85,346, which translates to a general fund savings of $28,206 annually, and recommended approval. No members of the public spoke. Supervisor McRae moved to forward the resolution to the full Board and the committee did so "without objection."
Next steps: the resolutions will be transmitted to the full Board for consideration; departments and real estate staff will continue to manage operational questions as needed.
