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Committee approves sending forward lease for basement at 25 Van Ness to New Conservatory Theater Center amid recurring flooding
Summary
The committee approved forwarding a lease of about 12,792 rentable square feet at 25 Van Ness to the New Conservatory Theater Center at a reduced monthly rent of $7,036, acknowledging recurring flood damage and a recommended term adjustment to 4 years, 10 months; budget analyst warned the city's net cost from abatements could exceed claimed damages.
The Budget and Finance Committee agreed to send to the full Board a resolution leasing approximately 12,792 rentable square feet of basement space at 25 Van Ness to the New Conservatory Theater Center (NCTC) at a proposed monthly rent of $7,036, reflecting a 50% reduction from the prior rent of $14,072 because of ongoing flood damage and the space’s special-purpose use for theater.
John Opdyke of the Real Estate Department explained that the basement has experienced repeated flooding, that repairs have been partial, and that complete flood-proofing (for example, a full basement envelope or waterproof membrane) would be a major undertaking. The proposed lease limits the City’s repair exposure to roughly $11,000 per year and includes tenant remedies and exit options if problems persist.
Ed Decker, artistic executive director at NCTC, said the theater has managed cleanup for recent heavy-rain events and described where water intrudes in the building’s foundation walls. A public commenter who identified herself as Morgan, a board member of NCTC and parent, urged the committee to approve the lease and cited recurring cleanup burdens and the theater’s community programs.
Budget analyst Harvey Rose presented an analysis noting the City had provided prior rent reductions and that, if the proposed rent reductions and abatements are counted, the net cost to the City over the lease term could be roughly $108,000 — exceeding the department’s claimed direct repair cost of about $92,000. Rose recommended amending the lease term to four years and ten months (rather than five) and asked that the positions and rent terms be coded to reflect the remaining damage and liability limitations.
Committee members asked whether structural integrity was at risk; Real Estate staff said structure had been analyzed during a recent adjacent remodel and that they had no current structural concerns. After public comment and discussion, the committee adopted the budget analyst’s recommended term amendment and forwarded the resolution as amended.
