Committee backs forwarding lease amendment for San Francisco Wholesale Produce Market

The Budget & Finance Committee on Sept. 13 voted to forward to the full Board a resolution authorizing the City’s Director of Property to execute a First Amendment to the lease for the San Francisco Wholesale Produce Market, a 23‑acre operation in Bayview‑Hunters Point.

John Lau, project manager in the Office of Economic and Workforce Development’s Land Use and Real Estate team, said the market supports roughly 650 blue‑collar jobs and is a “critical link in the food chain” for restaurants and grocery businesses across the city. The amendment would explicitly reference $3,000,000 in previously authorized city funding and specify how the market may use those funds.

The proposed amendment clarifies two subprojects: repairs and repaving of the market’s central marshaling yard (gutters, striping and paving) and predevelopment and design work for a new warehouse at 1900 Kirkwood Avenue. Lau told the committee the amendment contains a not‑to‑exceed figure of $1,800,000 for marshaling yard improvements; predevelopment for 1900 Kirkwood will be funded as remaining project development funds allow and the full warehouse redevelopment is a separate multimillion‑dollar project estimated at over $50,000,000.

Dan Goncher of the Budget Legislative Analyst’s Office reviewed the BLA report and recommended approval. The BLA noted the market is operated by the nonprofit San Francisco Market Corporation under a 60‑year ground lease approved in 2012 and that the market’s project development account — not direct rent payments — funds capital reinvestment. The BLA identified contractors and consultants already selected for work on campus improvements and warned that funding sources for later phases remain unspecified.

There were no public comments on the item. Chair Supervisor Connie Chan moved to forward the resolution to the full Board with a positive recommendation; Vice Chair Rafael Mendelmann and Supervisor Asha Safaei voted aye and the motion passed 3–0.

Next steps: OEWD and the Director of Property said they expect to return to the committee within roughly six months to present financing terms and any separate parcel lease needed to complete financing for the 1900 Kirkwood phase.