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Land Use committee backs long‑term $1 lease for Mexican Museum's new Yerba Buena home
Summary
The committee voted to forward a resolution approving a long‑term lease to the Mexican Museum for approximately 48,000 square feet at 706 Mission Street at a base rent of $1, with a 66‑year term and a 33‑year extension option and OCII grant funding for tenant improvements.
The Land Use and Economic Development Committee unanimously voted to forward a resolution authorizing a long‑term lease between the city and the Mexican Museum for roughly 48,000 square feet at 706 Mission Street in the Yerba Buena Gardens Arts District at a base rent of $1.
John Updike, Director of Real Estate, outlined the agreement: Millennium Partners will construct and convey a condominium interest in the core and shell across four floors, and the museum will undertake tenant improvements funded in part by more than $10,000,000 in grant funds provided by the Office of Community Investment and Infrastructure (OCII). The lease term in the record is 66 years with an option to extend for 33 additional years; the museum will be responsible for tenant improvements, maintenance, all operating costs and staged operating reserve and security deposit requirements (initial operating reserves at six months on opening day, rising to 12 months by year five; an initial security deposit of $500,000 increasing to $2,000,000 by year five).
Victor Marquez, general counsel for the Mexican Museum, and board chair Andrew Kluger described the long history of the project, recent fundraising milestones (including a $3 million gallery naming gift reported by the board chair) and community partnerships. Cayetana (Cayetana Esculovic Gomez), president and CEO, said the museum has cataloged a permanent collection of more than 16,000 objects and expects to move the collection from Fort Mason to the new Yerba Buena site.
Several community leaders and building committee members (including Alfredo Pedrosa, Miguel Bustos and Gloria Romero) offered public comment in support, described completed conceptual design work and invited supervisors to a forthcoming groundbreaking; project representatives projected core and shell turnover in February 2017 and a museum opening in February 2018. Supervisor Jane Kim moved the item forward with a positive recommendation and Supervisor Scott Wiener seconded; the committee passed the motion without objection.
The lease will return to the full Board of Supervisors for final approval and further review of grant agreements and project timelines.
