Port lease for longtime Pier 40 cafe gets broad public support; committee sends 15-year deal to full board

San Francisco The committee reviewed a proposed 15-year Port lease (commission lease no. 14100) with Java House LLC for retail space at Pier 40 1/2. Port representative Jonathan Stern described market-rate terms that include a percentage rent metric (7.5% of gross revenue) and a phased base-rent schedule. Stern also said the leaseholder would invest roughly $350,000 in port assets including new ADA-accessible restrooms, grease interceptors and a sanitary sewer line.

Supervisor questions focused on long-standing month-to-month arrangements the Port has maintained for some longstanding tenants and on whether the Ports procedures should be updated to bring long-duration occupancies before the board more often. Port staff said they are reviewing policy and seeking to avoid indefinite month-to-month tenure.

Public testimony was extensive and uniformly sympathetic to the Java House proprietors. Speakers described the restaurant as a neighborhood institution and urged the Port and supervisors to approve terms that allow the family owners to remain in business. Comments cited concerns that high rent increases would draw national chains and displace family-owned businesses.

Mr. Rose (Real Estate) noted the six-month fiscal impact figure for the short extension of $23,813.76 and stressed that the proposed per-square-foot rent for the renewal was below prevailing market rates for 1 Market Plaza comparables in earlier items.

The committee closed public comment, discussed policy questions raised by supervisors and, without objection, voted to send the item to the full Board of Supervisors with a recommendation for approval.