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Budget committee approves Port parking lease amid concern over holdover month‑to‑month contracts
Summary
Supervisors forwarded a three‑year Port lease to Priority Parking with a recorded 2–1 vote after the budget analyst highlighted many long‑standing month‑to‑month port leases and urged competitive rebidding; the Port committed to rebid at the end of three years and to report progress converting holdover leases.
The Budget & Finance Committee on Nov. 4 approved a Port of San Francisco lease with Priority Parking California LLC for multiple Seawall parking lots and forwarded the measure to the full Board despite the budget analyst’s warning about a backlog of month‑to‑month “holdover” leases across port property.
Jeffrey Bauer, the Port’s leasing manager, told supervisors the new three‑year lease would increase annual rent by roughly 34 percent for the lots in question, generating an incremental revenue boost for the Port. That figure — a roughly $543,000 annual increase cited by staff — framed the committee’s discussion on whether the Port has been allowing low‑yield month‑to‑month agreements to persist without competitive offers.
Budget analyst Rose flagged the port’s history of month‑to‑month agreements, noting examples of leases expiring years earlier and then continuing on holdover terms. The analyst told the committee that converting month‑to‑month deals to market‑rate agreements can yield substantial incremental revenue and called for a plan and staffing to address remaining holdovers.
Port staff and special projects manager Brad Benson said the Port has made progress: as of a May report, dozens of holdover leases had been converted to market‑rate agreements, some were being negotiated, and a number were limited to 24‑month holdovers to prevent perpetual rollovers. The Port committed to competitively rebid the parking lots at the end of the three‑year term and provided a status update on a broader project to resolve dozens of holdover leases across its portfolio.
Supervisor David Campos said he would vote against this lease, citing concern that month‑to‑month practice had not been fully resolved; the roll call recorded Supervisor Carmen Chu aye, Campos no, and Chair Avalos aye, so the motion passed 2‑1.
The committee asked Port staff to return with an updated progress report and a list of outstanding month‑to‑month leases and pledged to track the Port’s effort to move holdovers into competitively bid long‑term agreements.
