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Supervisors delay Bill Graham lease after unions seek broader hiring protections
Summary
Supervisors continued consideration of a proposed 20-year lease of Bill Graham Civic Auditorium to allow more negotiation between the proposed tenant, Another Planet Entertainment, and unions that want broader hiring protections; city officials said the building costs about $20,000 a week to maintain while dark.
San Francisco — The Budget & Finance Subcommittee on Tuesday agreed to continue action on a proposed roughly 20-year lease of the Bill Graham Civic Auditorium to BGCA Management LLC (the Another Planet Entertainment-related bidder), telling city staff to seek further negotiations with unions before the board votes.
Chair Supervisor John Avelos said he was uncomfortable approving a long-term lease without a budget analyst report and invited the parties to continue talks. City Administrator Ed Lee and Mayor’s budget staff warned that keeping the building dark costs the city about $20,000 a week in utilities, security and maintenance.
“Every day that building is closed, we continue to spend money,” Ed Lee said, urging timely action to stem ongoing losses.
Union representatives and venue workers provided sharply different views during a lengthy public comment period. Mary Anne Hohenstein, organizing coordinator for SEIU Local 1877, said the draft lease would offer employment to only a small set of named employees and asked that the tenant be required to offer jobs to the existing workforce and to honor prevailing standards under collective bargaining agreements. “We would like the language to say that the tenant will offer employment to all of our existing employees,” Hohenstein said.
Another Planet’s representative said the company plans to invest in the building and to use unions in future operations, but said it needed the final lease to firm up operational plans. Greg Berlof, chief executive of Another Planet Entertainment, said the company plans an initial $10 million investment and expects to increase events, which would restore jobs and activity at the Civic. “We want to take it from a place that does five shows to 50 shows,” Berlof said.
Several unions, including Local 16, urged prompt approval to create thousands of hours of work and stop the city’s weekly carrying costs. “I am a member of Local 16. I personally feel the economic impact and loss for every day that that building is closed,” said Andrew Bennett, a Local 16 member.
The committee asked the city administrator and leasing staff to mediate discussions between the tenant and SEIU Local 1877 and to return with a report at a special subcommittee meeting scheduled for the following Wednesday. Ben Rosenfield, controller, said board approval plus the mayor’s signature would allow the city administrator to execute the lease and enable the tenant to start operations.
The committee did not vote to approve the lease; members said the continuance would allow staff to seek language changes that better protect the broader workforce while preserving the city’s financial interest in eliminating carrying costs.
What’s next: Staff will report back to the subcommittee on union negotiations and any proposed lease language changes; the full Board of Supervisors would consider the lease after subcommittee and staff review.
