This resolution approves the termination of an existing lease for Waterfront Plaza and establishes a new 57-year lease with JPPF Waterfront Plaza, L.P., starting at an annual rent of $1,000,000. It also allows the Port's Executive Director to make minor changes to the new lease as needed without increasing the city's financial obligations.
Resolution approving and authorizing (i) the execution and delivery of a Mutual Lease Termination Agreement for Port Commission Lease No. L. 8618 (the “Existing Lease”) involving Premises known as Waterfront Plaza located on Seawall Lots 315, 316, 317 between Chestnut and Bay Streets at the Embarcadero (the “Site”), and (ii) the execution, delivery and performance of Port Lease No. 17224 for the Site between the San Francisco Port Commission, as landlord, and JPPF Waterfront Plaza, L.P., as tenant, (the “New Lease”) for a term of 57 years, with an initial annual base rent of $1,000,000 and including additional financial participation structures for the Port; and authorizing the Executive Director of the Port to enter into any additions, amendments or other modifications to the New Lease that do not materially increase the obligations or liabilities of the City or Port and are necessary or advisable to complete the transactions which this Resolution contemplates and effectuate the purpose and intent of this Resolution.
How it got here
This legislation originated from the need to restructure a long-term lease for the Waterfront Plaza to stabilize the financial situation of the tenant amid declining office occupancy rates.
The Port Commission approved Resolution No. 74-6, allowing the leasing of Seawall Lots 315, 316, and 317 for commercial use, establishing the terms for the Existing Lease with Francisco Bay Office Park.
JPPF Waterfront Plaza, L.P. purchased the leasehold interest in the Existing Lease along with adjacent parcels, becoming the current tenant.
The Port Commission adopted Resolution No. 24-50, approving the negotiation of a new lease with JPPF to address financial challenges and stabilize the asset.
The Budget and Finance Committee recommended the resolution for the new lease agreement, which included a significant reduction in base rent and new financial participation structures.
The Board of Supervisors adopted the resolution approving the execution of a Mutual Lease Termination Agreement and the new lease with JPPF Waterfront Plaza, L.P.
Reconstructed from attached documents & the official record
