Port commission approves five-year lease for Dylan's Tours at 490 Jefferson

The Port of San Francisco commission approved a motion to forward a proposed retail lease for 490 Jefferson Street to the Board of Supervisors after a staff presentation and public comment. Don Cavanaugh, senior property manager, described the historic building, remediation needs and marketing process. The proposed lease (L-seventeen378) would occupy 1,505 square feet on the ground floor for a five-year term with a five-year option.

Dylan David, owner of Dylan's Tours, told commissioners he intends to use the location as a central meeting point for guided tours, bike rentals and food-related experiences that support neighborhood restaurants. "I started Dylan's tours with a single minivan... Today, we've been operating for over two decades, employing local guides and drivers, and remaining proudly San Francisco based," he said.

Key lease terms presented in staff materials: $6,000 per month base rent (3% annual increases); 5% percentage rent on gross revenues over a $900,000 breakpoint; a proposed tenant-improvement allowance of $320,000 (about $213 per square foot) to cover remediation and build-out; port-led hazardous-material remediation is expected to begin within a week and take about three weeks if on schedule. The second floor and annex will remain available for lease, and the port will retain responsibility for limited hazardous materials remediation.

Commissioner Adams moved approval; a second was recorded and the motion passed unanimously. Commissioners asked staff to consider coordination and signage to help new tenants link with local neighborhood businesses. Staff said the lease would be forwarded to the Board of Supervisors for final action.