Committee moves multiple Department of Public Health leases and lease amendments to full Board

On July 21 the Budget and Finance Committee recommended that the full Board consider several Department of Public Health real‑estate items.

Director of Real Estate Rico Penick presented a proposed four‑year lease at 1360 Mission Street — roughly 17,000 square feet — to house short‑term surge COVID population‑health staff on the first floor and behavioral‑health teams on the second. The lease term is four years with two one‑year options; rent was presented as $38 per square foot (about $644,000 annually), with up to $200,000 in tenant improvements and an eight‑month free‑rent concession. DPH staff said the site is adjacent to existing behavioral‑health offices and will accommodate grant‑funded surge hires; DPH said it intends not to extend the lease past its short‑term need and is renovating other city facilities to reabsorb staff in the coming years.

Claudia Gorham of the City Administrator’s Office presented an amendment to the lease at 650 Fifth Street, used for jail health services, that extends the term and adjusts the base rent to $52 per square foot (down from $58) based on an independent appraisal; the amendment would continue the lease through June 30, 2026, with two one‑year options.

The committee also approved forwarding a five‑year extension of an existing lease at 555–575 Polk Street, home to the Behavioral Health Community Justice Center, keeping rent unchanged at roughly $27.84 per square foot. Committee members emphasized the need to pursue opportunities to purchase permanent space where feasible and to return to city‑owned facilities where possible.

All three items were moved to the full Board with positive recommendations.