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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)
Any commission, board or department that, under the Charter or this Code, is given exclusive power to Lease Real Property under its control and management may submit any proposed Lease to the Director of Property for review and advisory recommendations and may request the Director of Property to determine fair market rental rates to aid and assist in negotiating, extending or renewing such Leases. It is the City's policy that all commissions, boards and departments that negotiate and administer such Leases submit all proposed Leases which have a term, including extension options, of five years or more, or which would produce more than $500,000 in revenue over such term, to the Director of Property for review and advisory recommendations before final approval of any such Lease and, as to such Leases, request the Director of Property to determine fair market rental rates to aid and assist in negotiating, extending or renewing such Leases. The purpose of this policy is to achieve greater consistency and coordination in the City's Leasing practices, to increase the financial return to the City from its Leases and to avoid unnecessary duplication of effort and expense in the Leasing of City Real Property.
(Added as Sec. 23.23 by Ord. 323-86, App. 8/8/86; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 278-04, File No. 041352, App. 11/18/2004)
(Former Sec. 23.32 redesignated as Sec. 23.51 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)
To the extent that any ordinance, Code provision, or Charter provision gives the City, or any of its commissions, boards, or departments, power to award Leases without competitive bidding, it shall be City policy that, notwithstanding such power, all such Leases that are expected to produce more than $2,500 per month in revenue be awarded in accordance with Competitive Bidding Procedures, unless such Competitive Bidding Procedures are impractical or impossible. It shall also be City policy that any and all Leases awarded without following the Competitive Bid Procedures shall be in an amount not less than the fair market value of the leased property. If any City department wishes to award a Lease of City-owned property for less than fair market value, it shall make a finding of the public purpose to be served by such Lease, and such Lease and finding shall be subject to the prior approval of the Mayor and the department head, as well as the applicable commission. If there is no commission approval, then such Lease and finding shall also be subject to the prior approval of the Board of Supervisors. The Lease shall also require that the tenant will use the leased premises in accordance with the stated public purpose for the entire lease term. The provisions of this Section 23.33 shall be applied subject to Administrative Code Chapter 21B.3(b) 1
and shall not apply to any leases awarded pursuant to Administrative Code Chapter 23A.
(Added as Sec. 23.24 by Ord. 323-86, App. 8/8/86; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 278-04, File No. 041352, App. 11/18/2004; Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)
(Former Sec. 23.33 redesignated as Sec. 23.52 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)
CODIFICATION NOTE
Each commission, board and department that is empowered by the Charter, City ordinance, this Code or State statute to Lease City-owned Real Property shall, within 10 days after the close of each quarter of a fiscal year ("fiscal quarter"), file with the Budget Analyst for the Board of Supervisors and post on the commission, board or department website a written report of all Leases of City-owned Real Property awarded during the preceding fiscal quarter which were less than fair market value or which were not submitted for approval by the Board of Supervisors.
The report shall contain the following information for each Lease:
1. Tenant's name.
2. Term of the Lease, including any extension options.
3. Rental amount, including, any percentage rent and rent escalation or adjustment provisions, and, if applicable, the finding of public purpose for why the rent was set at less than fair market value.
4. Location of Leased Real Property.
5. If unimproved Real Property, dimensions and area of Real Property.
6. If improved Real Property, description of improvements and floor area of Leased space.
7. Use to be made of premises by the tenant.
The Budget Analyst shall review each report and may report his or her comments and recommendations to the Board of Supervisors, as the Budget Analyst deems appropriate.
(Added as Sec. 23.25 by Ord. 323-86, App. 8/8/86; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 278-04, File No. 041352, App. 11/18/2004)
(Former Sec. 23.34 redesignated as Sec. 23.53 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)
Notwithstanding any other provision in this Chapter, where the City Acquires Real Property which at the time of Acquisition is under a Lease to a tenant from the previous owner, the Director of Property may, subject to the approval by resolution of the Board of Supervisors, upon expiration of such Lease, negotiate at a fair market rental a new Lease for such Real Property with the same tenant on a term designated by the Board of Supervisors, until such time as required for the purposes of the department in charge of such Real Property.
(Added by Ord. 15-01, File No. 001965, App. 2/2/2001)
(Former Sec. 23.35 redesignated as Sec. 23.54 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)
In addition to the delegation of authority set forth in Sections 4.112, 4.113, 4.114, 4.115, and B3.581 of the Charter and by Section 2A.173 of this Code, (i) pursuant to Charter Section 4.113, the Recreation and Parks Commission shall have the power to Lease Real Property under its jurisdiction subject to approval by the Board of Supervisors as required by Charter Section 9.118 and any other applicable provision of the Charter or this Code, and (ii) pursuant to Charter Section 4.112, the Public Utilities Commission shall have exclusive power to Lease Real Property under its jurisdiction, subject to approval by the Board of Supervisors as required by Charter Section 9.118 and any other applicable provision of the Charter or this Code.
(Added by Ord. 15-01, File No. 001965, App. 2/2/2001)
(Former Sec. 23.35 redesignated as Sec. 23.55 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)
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