City leases 1360 Mission Street for COVID and behavioral health staff expansion

In a recent government meeting, San Francisco County officials discussed significant lease agreements aimed at enhancing public health services in the city. The primary focus was on a resolution to lease a property at 1360 Mission Street for the Department of Public Health (DPH), which will house COVID-related staff and behavioral health teams. The proposed lease spans four years at an annual base rent of $644,000, with a 3% increase each year. Additionally, the city plans to invest up to $200,000 for necessary tenant improvements, with occupancy expected to begin around August 2021.

Director of Real Estate, Rico Penick, presented the lease details, emphasizing the favorable terms and the strategic importance of the location. The first floor will accommodate COVID task force staff, while the second floor will serve behavioral health personnel. The lease includes options for two additional one-year extensions, contingent on the property owner's redevelopment plans.

Concerns were raised by Supervisor Safaeed regarding DPH's existing real estate portfolio and whether the department had fully utilized its current spaces before seeking additional leases. DPH representatives clarified that the new lease is essential for accommodating surge staffing related to ongoing public health needs, particularly as COVID-19 evolves into a chronic issue. They noted that the lease aligns with grant-funded positions that may become permanent as public health infrastructure is strengthened.

The meeting also addressed a lease amendment for a property at 650 Fifth Street, where DPH has operated jail health services since 1999. This amendment extends the lease for an additional five years at a reduced rate of $52 per square foot, reflecting a 10% decrease from the previous rate. This extension is crucial for maintaining uninterrupted services while the department seeks a more permanent facility.

Lastly, officials discussed a lease extension for the Behavioral Health Community Justice Center at 555-575 Polk Street, which has been in operation since 2012. This extension will maintain the current rent structure, ensuring continued service provision without financial strain.

Overall, the meeting underscored the city's commitment to bolstering public health services amid evolving challenges, with strategic leasing decisions aimed at enhancing operational capacity and service delivery. The resolutions will move forward with positive recommendations to the full board, reflecting a proactive approach to public health infrastructure in San Francisco.