The resolution allows the Department of Public Health to lease a property at 1360 Mission Street for four years at a starting rent of $644,404 per year, with annual increases of 3%. It also authorizes up to $200,000 for necessary improvements to the space before the City can occupy it, expected around August 1, 2021.
Resolution approving and authorizing the Director of Property, on behalf of the Department of Public Health, to lease real property located at 1360 Mission Street, for an initial term of four years, from SFSPE TG, LLC, SFSPE T1, LLC, SFSPE MH, LLC and SFSPE OBI LLC, at a base rent of $644,404 per year with 3% annual increases; authorizing the City to contribute up to an additional $200,000 in tenant improvements to commence upon substantial completion of the installation of the Tenant Improvements necessary for the Cityβs occupancy, which is expected to occur on or around August 1, 2021; and authorizing the Director of Property to execute documents, make certain modifications and take certain actions in furtherance of the Lease and this Resolution, as defined herein.
How it got here
This legislation originated from the need for additional office space for the Department of Public Health due to the establishment of Mental Health San Francisco and the COVID-19 pandemic.
The Board passed an ordinance amending the Administrative Code to establish Mental Health San Francisco, creating a need for additional staffing and office space.
The Department of Public Health identified the need for additional office space for COVID-related hires and the relocation of the COVID-19 Command Center.
The Real Estate Division negotiated a lease with SFSPE TG, LLC and others for the property at 1360 Mission Street, which was determined to be an ideal location for consolidating staff.
The Budget and Finance Committee recommended the resolution to approve the lease for 1360 Mission Street, which included a base rent of $644,404 per year and up to $200,000 in tenant improvements.
The Board of Supervisors adopted the resolution approving the lease, authorizing the Director of Property to execute necessary documents.
The Mayor approved the resolution, finalizing the lease agreement for the Department of Public Health.
Reconstructed from attached documents & the official record