This resolution allows the Director of Property to lease a 14,499 square foot property at 598 Portola Drive to Twin Peaks Petroleum, Inc. for 20 years, with an initial rent of $156,600 and annual increases, while requiring the tenant to make certain improvements by the end of 2025. It also exempts the property from competitive bidding and permits the Director to make minor amendments to the lease as needed.
Resolution approving and authorizing the Director of Property to enter into a real property lease with Twin Peaks Petroleum, Inc., a California corporation, doing business as Twin Peaks Auto Care, successor-in-interest to Michael Gharib, for approximately 14,499 square feet located at 598 Portola Drive, for an initial term of twenty years with one five-year option to extend, at an initial base rent of $156,600 with annual adjustments of three percent thereafter; effective upon approval of this Resolution by the Board of Supervisors and Mayor, and full execution of the Lease; to require the Tenant to complete certain improvements by December 31, 2025, with a waiver of rent up to three months; finding that competitive bidding procedures required under San Francisco Administrative Code, Chapter 23, Section 23.33, are impractical; finding that the Premises is exempt surplus land under California Code, Section 54421(f)(1)(B); and to authorize the Director of Property to enter into amendments or modifications to the lease that do not materially increase the obligations or liabilities to the City and are necessary to effectuate the purposes of the lease or this Resolution.
How it got here
The legislation originated from the need to renew a long-standing lease for Twin Peaks Petroleum, Inc. at 598 Portola Drive, allowing for necessary improvements and continued operation as a gasoline service station.
The Board approved the original lease for 14,499 square feet at 598 Portola Drive to Michael Gharib, dba Twin Peaks Mobil, for use as a gasoline service station.
The Board approved an extension of the original lease through June 30, 2014, allowing for necessary improvements to comply with state regulations.
The Board approved a new lease for five years with a five-year option to extend, allowing continued operation of the service station.
The Board considered but did not approve a proposed 25-year lease with Twin Peaks Petroleum.
The Director of Real Estate submitted a proposal for a new 20-year lease with Twin Peaks Petroleum, including a rent increase and requirements for underground tank replacement.
The Committee amended the lease proposal to change the extension option from ten years to five years.
The Board adopted the resolution approving the new lease with Twin Peaks Petroleum, authorizing the Director of Property to execute the lease.
The Mayor approved the resolution, finalizing the new lease agreement with Twin Peaks Petroleum.
Reconstructed from attached documents & the official record
