Committee recommends no‑cost 20‑year lease for SF General Hospital Foundation, flags waived rent value

The Budget & Finance Committee on Nov. 1 voted to forward to the Board of Supervisors a resolution authorizing a no‑cost 20‑year lease (with two 10‑year options) of roughly 4,900 square feet at 2789–2920 Fifth Street to the San Francisco General Hospital Foundation.

Rico Penick, Director of Real Estate, said the lease continues a long partnership among the foundation, the Department of Public Health and UCSF supporting Zuckerberg San Francisco General. Kim Meredith, CEO of the San Francisco General Hospital Foundation, told the committee the foundation has raised about $245 million for the hospital since 1993 and recently committed $18 million to the Department of Public Health building.

The Budget and Legislative Analyst noted the city will forgo roughly $13.6 million in rent over a 40‑year term and observed this is an unusual arrangement; BLA described it as a policy matter for the full Board because it replaces general fund revenue with a restricted source of philanthropic support for hospital capital and operations.

Supervisors who spoke expressed support for retaining the foundation on site, acknowledging the foundation’s sizable fundraising track record and ongoing commitments. The committee forwarded the lease to the full Board with a positive recommendation.

Ending: The full Board will consider the policy tradeoffs of waived rent versus philanthropic benefit and the foundation’s continued presence adjacent to Zuckerberg San Francisco General.