This resolution allows the Port of San Francisco to lease space at Pier 23.5 to Pier 23 Café for indoor and outdoor dining, with a monthly rent of $10,739 and options to extend the lease, while also permitting the Executive Director to make necessary adjustments to the lease without a competitive bidding process.
Resolution approving and authorizing the Executive Director of the Port of San Francisco to execute Port Commission Lease No. L-17397 for real property located at Pier 23.5 with Pier 23 Café, a California corporation, for approximately 2,410 square feet of indoor space and 2,425 square feet of outdoor dining area, at an annual base rent of $10,739 per month for an initial term expiring on April 30, 2030 with one five-year option and a second ten-year option to extend; for a potential base rent revenue of $5,877,000; authorizing the Executive Director of the Port to waive the competitive bidding process for Lease No. L-17397; and authorizing the Executive Director to enter into any additions, amendments or other modifications to the Lease that do not materially increase the obligations or liabilities of the City or the 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
The legislation originated from the need to restructure the lease agreement for Pier 23 Café due to financial difficulties exacerbated by the COVID-19 pandemic.
Pier 23 Café approached the Port to restructure its lease to reduce its rent obligations to align with current market conditions after struggling financially post-COVID.
Port staff began discussions with Pier 23 Café to address the lease issues and consider restructuring the existing lease due to the café's financial struggles.
The Port Commission authorized the Executive Director to waive the competitive bidding process and approved the restructuring of the lease into a new agreement (Lease L-17397) that included debt forgiveness and options for lease extensions.
The resolution approving the new lease was received from the Port Department and forwarded to the Board of Supervisors for consideration.
The resolution was assigned to a committee for further action by the Board of Supervisors.
Reconstructed from attached documents & the official record