SEC. 23.25-3. [REDESIGNATED.]

(Added by Ord. 439-96, App. 11/8/96; redesignated as Sec. 23.41 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

SEC. 23.26. YEAR-TO-YEAR AND SHORTER LEASES.

   The Director of Property shall have the authority to enter into the following Leases on behalf of the City as tenant: (a) on a year-to-year or shorter tenancy where the consideration to be paid for the Lease is $15,000 or less per month, and (b) where the term of a Lease will not exceed 31 days, including without limitation month-to-month Leases.

   The Director of Property may include in any Lease authorized by this Section 23.26 an appropriate indemnity agreement for the purpose of providing for the City's occupancy or other use of such Real Property (including, without limitation, conducting environmental investigations and assessments), subject, however, to written approval as to form by the City Attorney and written recommendation by the head of the department concerned.

   The Director of Property shall determine the rental or other consideration to be paid for all such Real Property and shall obtain from the Controller written certification that funds are available for such Lease. The department concerned shall give written notice to the Director of Property when such Lease is terminated by the City.

(Added as Sec. 23.19 by Ord. No. 208 (1939); amended by Ord. 25-83, App. 1/14/83; Ord. 284-90, App. 7/24/90; Ord. 253-95, App. 8/10/93; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016)

(Former Sec. 23.26 repealed by Ord. 15-01, File No. 001965, App. 2/2/2001)

SEC. 23.26A. [REPEALED.]

(Added by Ord. 355-98, App. 12/11/98; repealed by Ord. 15-01, File No. 001965, App. 2/2/2001)

SEC. 23.27. EXECUTION OF LEASES; APPRAISALS AND APPRAISAL REVIEWS; RESOLUTION AUTHORIZING LEASE.

   Except as otherwise provided by the Charter, Administrative Code Sections 21B.3 or 23.26, or other provision of this Code, the Board of Supervisors shall approve all Leases on behalf of the City as tenant by resolution. Before adoption, the head of the department concerned shall recommend any such resolution for approval by the Board of Supervisors and the Director of Property shall determine the Market Rent of such Lease based on a review of available and relevant data. If the consideration to be paid by the City for the Lease as base rent is more than $45 per square foot per year, the Director of Property, on behalf of the department concerned, shall obtain an Appraisal for the Market Rent of the Lease. If the consideration to be paid by the City for the Lease as base rent is more than $60 per square foot per year, the Director of Property, on behalf of the department concerned, shall obtain an Appraisal Review for such Appraisal. Any Appraisal or Appraisal Review shall have an effective date of value that is not earlier than nine months before the date legislation for the proposed Lease is submitted to the Board of Supervisors. All such Leases shall be executed by the Director of Property or as otherwise directed by resolution of the Board of Supervisors.

(Added as Sec. 23.20 by Ord. No. 208 (1939); amended by Ord. 113-96, App. 3/13/96; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016; Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

(Former Sec. 23.27 redesignated as Sec. 23.45 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

SEC. 23.28. SFUSD LEASES TO THE CITY DIRECTLY SERVING THE PUBLIC; PUBLIC NOTICE REQUIRED PRIOR TO TERMINATION OR EXPIRATION OF THE LEASE.

   (a)   Whenever the City leases property from the San Francisco Unified School District ("the School District") and the City uses the property in a manner directly serving the public, such as for a public parking area or an athletic field, the notification provisions of subsection (b) shall apply.

   (b)   Not less than 30 days prior to the termination of the lease by the School District, or the expiration of the lease if the parties do not renew the agreement, the City department having jurisdiction over the subject property under the lease shall cause notice of the proposed action be given as follows:

      (1)   Notice shall be posted on the subject property in accordance with the requirements established by the Zoning Administrator under Planning Code Sections 311 and 312.

      (2)   Written notice of the termination or expiration of the lease shall be mailed to all owners and, to the extent practicable, occupants of properties within 150 feet of the subject property in the same Assessor's Block and on the block face across from the subject property. When the subject property is a corner lot, the notification area shall further include all property on both block faces across from the subject property, and the corner property diagonally across the street. The latest City-wide Assessor's roll for names and addresses of owners shall be used for such notice.

      (3)   Written notice of the termination or expiration of the lease shall also be mailed to persons or organizations that have indicated an interest in the subject property or its area by including their names on a list maintained by the Planning Department.

   (c)   The notification requirements of subsection (b) shall also apply when the City uses or controls School District property by virtue of a permit, license, or similar agreement other than a lease. If the City itself receives less than 45 days notice from the School District of the termination or expiration of a lease or other agreement, the City department having jurisdiction over the subject property under the lease or other agreement shall provide the notice required under subsection (b) to the extent reasonably possible under the circumstances.

(Added by Ord. 159-07, File No. 070411, App. 7/3/2007)

ARTICLE IV: LEASES WHEN CITY IS LANDLORD

Sec. 23.30.	Lease of Real Property.
Sec. 23.31.	Year-to-Year or Shorter Leases.
Sec. 23.32.	Advisory Review by Director of Property.
Sec. 23.33.	Competitive Bidding Procedures.
Sec. 23.34.	Lease Reporting.
Sec. 23.35.	Re-Lease Real Property to Existing Tenant on a Negotiated Basis.
Sec. 23.36.	Lease of Real Property under Recreation and Parks Commission and Public Utilities Commission Jurisdiction.
Sec. 23.37.	Real Estate Department to Collect Rents.
Sec. 23.38.	Agreements for Private Use of City Property; Possessory Interest Taxes.
Sec. 23.39.	Taxable Possessory Interests in Tax-Exempt Real Property; Report of Agreement and Change of Ownership or Extension of Agreement.
Sec. 23.40.	Sale or Lease of Park Land; Use of Certain Park Land for the Construction of Water Quality and Sewerage Facilities.
Sec. 23.41.	Transfer of Park and Other Lands to the National Park Service of the United States Department of the Interior.
Sec. 23.42.	Prohibition on Leasing of City-Owned Land for the Extraction of Fossil Fuels.

 

SEC. 23.30. LEASE OF REAL PROPERTY.

   Except as provided by Sections 4.112, 4.113, 4.114, 4.115, and B3.581 of the Charter and by Sections 2A.173 and 23.36 of this Code, or as otherwise provided by the Charter or this Code, the Director of Property shall have the charge of the Lease of Real Property owned by the City. When the head of any department in charge of Real Property reports to the Director of Property that certain land is not required for the purposes of the department, the Board of Supervisors, by resolution, may authorize the Lease of such Real Property. The Director of Property shall determine the Market Rent of such Lease based on a review of available and relevant data. If the Market Rent of the Lease is more than $45 per square foot per year as base rent, the Director of Property shall obtain an Appraisal for such Lease. If an Appraisal determines the Market Rent of the Lease exceeds $60 per square foot per year as base rent, the Director of Property shall obtain an Appraisal Review for such Appraisal. Any Appraisal or Appraisal Review shall have an effective date of value that is not earlier than nine months before the date legislation for the proposed Lease is submitted to the Board of Supervisors. The Director of Property shall arrange for such Lease to the highest responsible bidder in accordance with Competitive Bidding Procedures and for no less than the Director of Property's opinion of Market Rent if there is no Appraisal, or for no less than the Market Rent stated in the Appraisal if there is an Appraisal, unless the Board of Supervisors has by resolution found that (a) such Competitive Bidding Procedures are impractical or impossible or has authorized other means of award in furtherance of a proper public purpose, or (b) a lesser sum which furthers a proper public purpose. The Director of Property shall collect rents due under such Lease. under such Lease.

   When the Public Utilities Commission, the Recreation and Park Commission, the Port Commission, or the Municipal Transportation Agency require approval of the Board of Supervisors to a proposed Lease of Real Property owned by the City, the applicable Commission or Agency shall determine the Market Rent of such Lease based on a review of available and relevant data. If the Market Rent of the Lease is more than $45 per square foot per year as base rent, the applicable Commission or Agency shall, through the Director of Property, obtain an Appraisal of the Market Rent for the Lease unless the Executive Director of the Port determines, for Real Property under Port jurisdiction, that the rental rate for the proposed Lease meets or exceeds the Port Commission's annually adopted parameter rental rate for such Real Property, and such Lease shall be for no less than the Market Rent established in the Appraisal unless (1) the Commission or Agency determines that applying the Market Rent requirement would interfere with its capacity in discharging one of its core functions under the City Charter, (2) the Board of Supervisors has found by resolution that a lesser sum will further a proper public purpose, or (3) the Commission or Agency determines, with Director of Property concurrence, that an independent, appropriately qualified real estate economic expert is better suited than an Appraiser to perform the rental analysis. If an Appraisal determines the Market Rent of the Lease exceeds $60 per square foot per year as base rent, the applicable Commission or Agency shall, through the Director of Property, obtain an Appraisal Review for the Appraisal. Any Appraisal or Appraisal Review shall have an effective date of valuation that is not earlier than nine months before the date legislation for the proposed Lease is submitted to the Board of Supervisors.

   The requirements in this Section 23.30 for Board of Supervisors approval by resolution shall not apply to Core Initiative Leases approved under Administrative Code Chapter 21B.3. 1

(Added by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016; Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

(Former Sec. 23.30 redesignated as Sec. 23.48 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

CODIFICATION NOTE

1.   So in Ord. 10-25.

SEC. 23.31. YEAR-TO-YEAR OR SHORTER LEASES.

   If any department in charge of City-owned Real Property requests the Director of Property to Lease City-owned Real Property, the Director of Property shall have the authority to enter into the following Leases on behalf of the City as Landlord: (a) on a year-to-year or shorter tenancy, where such Real Property has a fair market rental value of $15,000 or less per month, and (b) where the term of a Lease will not exceed 31 days, including without limitation month-to-month Leases. In addition, where, in the opinion of the Director of Property, the Leasing of such Real Property for landscaping or gardening serves a public purpose, the Director of Property may Lease such Real Property at a nominal rental, on a year-to-year or shorter tenancy, and on such other terms and conditions as the Director of Property may require.

   Within 10 days after entering into any Lease under this Section 23.31, the Budget and Finance Committee of the Board of Supervisors shall be notified by the Director of Property as to the terms and conditions of such Leases.

(Added as Sec. 23.22; amended by Ord. 323-86, App. 8/8/86; Ord. 284-90, App. 7/24/90; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016)

(Former Sec. 23.31 redesignated as Sec. 23.50 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)