A formal position or approval by the Board: Retroactively approve an Amended and Restated Lease Agreement between the City and County of San Francisco and Tad’s Inc., for the retail space located at 44 Ellis Street in the Ellis-O’Farrell Garage, to amend the calculation of the monthly base rent to a percentage rent calculated as 8% of gross revenues retroactive to January 1, 2021.
Resolution retroactively approving an Amended and Restated Lease Agreement between the City and County of San Francisco and Tad’s Inc., for the retail space located at 44 Ellis Street in the Ellis-O’Farrell Garage, to amend the calculation of the monthly base rent to a percentage rent calculated as 8% of gross revenues retroactive to January 1, 2021; to amend the monthly water charge to $2,400 retroactive to February 1, 2024; to amend the calculation of base rent and water charge during the first option to extend; to require Tad’s to pay a $4,000 administrative fee; to impose minimum hours of operation; to waive Tad’s obligation to pay base rent for the period beginning on April 1, 2020 to December 31, 2020; and to waive Tad’s obligation to pay outstanding water charge for the period beginning February 1, 2020 to January 31, 2024, effective upon approval of this Resolution through the expiration date of April 30, 2029.
How it got here
The legislation originated from the need to formalize changes to the lease agreement for Tad's Inc. due to the impacts of the COVID-19 pandemic.
SFMTA and Tad's Inc. entered into a Lease Termination Agreement to allow Tad's to assume a new lease after significant renovations.
SFMTA approved a 10-year lease agreement with Tad's Inc. for retail space at 44 Ellis Street, totaling approximately $5.3 million over the lease term.
A memo was issued advising city departments to provide tenant relief due to the COVID-19 pandemic, prompting SFMTA to modify Tad's lease.
The SFMTA Board approved an Amended and Restated Lease Agreement with Tad's, formalizing changes made during the pandemic, including a shift to percentage rent.
SFMTA determined that the lease agreement with Tad's is not defined as a 'project' under CEQA, allowing for the lease modifications to proceed.
The Board of Supervisors is set to approve the Amended and Restated Lease Agreement retroactively, finalizing the changes to Tad's lease.
Reconstructed from attached documents & the official record