Committee continues DPH clinic lease after BLA amendment prompts one-week delay

The Budget and Finance Committee considered a resolution on Jan. 31 authorizing a lease between the City and County of San Francisco’s Department of Public Health (DPH) and landlord AIM 2 for clinic and office space at 755 and 759 South Van Ness Avenue.

Real estate staff presented the premises as approximately 13,545 square feet of clinic and office space, plus a roughly 3,600-square-foot adjacent parking lot; the landlord offered the lot free of charge. The initial annual rent stated during the presentation was approximately $644,930 (about $47.61 per square foot), with annual CPI-indexed increases and a single 15-year extension option described in the lease documents.

Budget and Legislative Analyst Nick Menard summarized the BLA review and noted the city would pay about $2.7 million in base rent over the initial term (plus an estimated $120,000 in utilities) if the lease is in effect through the stated term. Menard said the BLA recommended a technical amendment to correct a typographical error in the resolution and to adjust the rent amount stated in the title.

Deputy City Attorney John Givner advised that because the proposed amendment would change the rent amount shown in the legislation’s title, the committee must continue the item for one week to allow proper re-noticing. The committee voted to amend and continue the item to the Feb. 7 meeting for further action.

Next steps: The committee continued Item 2 to Feb. 7 so the amendment can be reflected in the title and the corrected resolution forwarded to the full board.