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Board approves 20‑year lease renewal for Twin Peaks gas station tied to biofuel transition despite environmental objections

San Francisco Board of Supervisors · July 30, 2024
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Summary

The Board approved a 20‑year lease with Twin Peaks Petroleum (doing business as Twin Peaks Auto Care) to enable required tank replacement and a state‑conditioned transition to biofuels; Supervisor Preston voted no, citing opposition from environmental groups and a policy preference against extending public land leases for fossil fuel uses.

The Board of Supervisors voted to authorize a real property lease with Twin Peaks Petroleum Inc. (doing business as Twin Peaks Auto Care) for approximately 14,000 square feet at 598 Portola Drive. The lease, for an initial 20‑year term with a 15‑year option to extend, sets initial base rent at $157,000 with 3% annual adjustments and includes cleanup obligations and a requirement that the owner accept a state grant to transition the station to biofuels as a condition of the lease.

Supervisor Myrna Melgar, who sponsored the item, said she explored alternative uses for the oddly shaped site (including affordable housing and community gardens) and concluded they were infeasible due to site constraints and cleanup costs; she said the proposed lease includes cleanup obligations and a required transition plan if state funds are accepted.

Supervisor Preston said he would cast a no vote in line with environmental groups who oppose extending public land for fossil fuel use. "Consistent with the ongoing opposition of leading environmental organizations... I will be casting a no vote on this item," he said.

The resolution passed with nine ayes and one no; the clerk recorded Preston as the lone no vote. The resolution was adopted on the same call.